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Be Flexible to Fill the Gaps - 10/6/26


The non-profit has the expected challenges.  There are only 3 people in the organization, yet, they have the same responsibilities of a larger company.  They have to do finance, sales, marketing; they deliver their services to the community, and they need to keep a pulse on what’s going on Read more

Is This Good Customer Service? - 9/29/26


A friend of mine reached out to me recently as she waited for the electrical technician to show up at her house to do some minor repairs.  She had never worked with this company before, but they sent a text about the tech who was soon to arrive. The message Read more

Ownership when Fixing Others’ Errors - 9/22/26


We were conducting training with a client recently, and one of the participants, Jackie, is in a role in his organization where he goes out to the customer site to investigate issues, address customer complaints, and fix problems.  While he’s at the site, he often gets an earful from Read more

Why “No” is So Important - 9/15/26


The employee told the caller: “I don’t think that is possible.” The customer eventually hung up, and redialed to ask a different employee the same question. The employee responded to the customer: “That’s probably not the best way to do it.”  Then, the customer kept asking question after question, arguing Read more

It’s Not “You,” It’s “I” - 9/8/26


During a business writing course that I took years ago, the instructor had us write an e-mail.  I can’t recall if it was written to a co-worker or customer, but after writing this e-mail, she had us count every “I” and “You.”  We talked about how we need to Read more

It Shouldn’t Make a Difference, But… - 9/1/26


We have this conversation with lots of our sports clients, but the principles apply across all different industries.  Too many service representatives view a conversation with a customer as a transaction.  Just get him off the phone as quickly as possible.  The customer is Joe Public, not Joseph Pendergrass.  Read more

Use What the Customer Gives You - 8/25/26


Scenario #1: The customer sent an e-mail to the general inbox at the company.  The message noted that the customer needed to get a family member added to their account, but they couldn’t tell from the website how to do so. The next morning an employee opened up the e-mail, Read more

How Better Customer Service is Better for You - 8/18/26


Oftentimes, we have employees in training or workshops who really want to understand what’s in it for them to deliver better customer service.  How does the employee benefit from a better customer experience? Noted below are 5 different aspects of a great experience desired by the customer.  What if... The customer Read more

Manage New Customer Expectations - 8/11/26


The fan had never been to a motorsports event before, but they had been to concerts.  They had been to big conferences.  At those other events, they could park right next to the venue, many of the activities were indoors, and weather was a non-issue.  So, they were not Read more

Complement Empathy with Action - 8/4/26


A man falls into a hole, and he can’t get out.  He starts yelling for help, and a doctor walks by and looks down the hole.  The man in the hole yells to the doctor “Please help me.  I’ve fallen into this hole!”  And the doctor takes out a Read more

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To Improve Customer Retention, Make Products Free?

Posted on April 5, 2012 in Business Advice, World of Customer Service Please leave a comment

To increase its customer retention, Sprint announced that it’s discounting fees on their pay-as-you-go service. In the Fox Business article Sprint Looks to Boost Customer Retention With Lower repaid Bills, it’s noted how Sprint’s new Boost service “is $5 less than the starting price of the brand’s current lowest-priced plans.”

According to the article, “Sprint has had some success drawing customers to its Boost brand through a program that lets users lower their bills by $5 per month following every six on-time payments. Sprint’s prepaid customer rolls grew by 20% last year to 14.8 million, while its contract business shrunk.” In business school, that’s referred to as cannibalizing yourself. But I digress…

The interesting point here is that the company is trying to increase retention with a price drop (and also by pulling customers away from its other products).

Companies who truly understand customer retention strategies understand that a price drop is the absolute LAST thing you should ever have to do. This price drop retention strategy is for companies who have allowed customers to view them as a commodity, and some companies are thereby viewing themselves as commodities.

In virtually any industry, customers will stick with companies for many reasons, not just price. And those other reasons (product quality, wait times, customer service, responsiveness, relationships with the employees, affinity for the company, making customers’ lives easier/better/more hassle free, and on and on and on) provide the value piece that plays into decision-making far more in many customers’ eyes than price.

Before you do your next price drop to increase retention…before you start heading in the direction of free products…before you willingly cut your own profits in an effort to become more prosperous (if that even remotely makes sense), find out the specific factors that drive loyalty for specific customers, and do the best job possible of incorporating those into a 1-to-1 retention strategy.

Avoid the easy and (for the long-term) ineffective path to customer retention – avoid the price drop.

Interested in improving your company’s customer service? See more at our new website! http://www.cssamerica.com/

Read our New Book – “Ask Yourself…Am I GREAT at Customer Service?” http://www.amigreatat.com/

Listen to our latest podcast episode of “Stepping Up Service” on The MESH Network at http://themesh.tv/stepping-up-service/