sprint | Customer Service Solutions, Inc.

Handle Interruptions Heroically - 6/18/24


In the middle of a project, Jimbo, the customer service team member, had to stop what he was doing because he received an e-mail from a customer complaining about their experience at a recent event. Later that day, Jimbo was asked by his boss to put everything on hold for Read more

From Employees to Teammates: The Shift - 6/11/24


Be a great teammate. Be a good team player. We’re all part of the team. We’re no longer employees, we’re team members! The phrase “Team” is used in describing co-workers so much more than it was used years ago.  Then, we would be talking about employees, talking about staff, talking Read more

Nurture New Relationships - 6/4/24


Freddie was a new business owner in town.  He was launching a franchise, had acquired some funding from a local bank, and was in search of staff who cared about customer service. All the while, he was in the process of renovating a storefront for his business, so he was Read more

There’s Positivity in Patience - 5/28/24


The employee at the financial services firm was working with a new client on a relatively simple loan.  The documentation was about as clear as it could get to the employee, but the customer had lots of questions.  The employee calmly, clearly, and specifically answered each question.  The meeting Read more

The Goal – A Great Experience - 5/21/24


The following is a narrative of a great experience (people, process, service, facility) at a minor league sporting event – key points that could apply to any business are in bold… Mark and I pulled into the parking lot, excited about the game.  The Slapshots had been on a roll Read more

Your Best Ability is… - 5/14/24


I enjoy watching sports, and I’ve even listened to some sports press conferences over the years, just to hear what coaches are saying.  Basically getting the leadership perspective from the sports industry either out of my interest or curiosity, or to figure out how to apply it to the Read more

A Complaint is a Gift - 5/7/24


A complaint is a gift.  Okay, so the complainer is not always a “gift.”  The customer’s delivery of the complaint is sometimes more like a stocking filled with coal than a vase filled with roses.  But this is why we need to be able to differentiate the complaint from Read more

Mastering Confidence in Customer Service - 4/30/24


It’s not what you said…it’s how you said it. If you’ve ever had someone say this to you, raise your hand.  (I just raised my hand) Usually this is being said when someone is upset with you, but regardless of the reason, that phrase illustrates that HOW we say something often Read more

Be Amazing - 4/23/24


Watching Michael Jordan steal a pass and then dunk a basketball is amazing.  Taking a rocket to the moon is amazing.  The taste of my mom’s homemade beef soup is amazing. We all have our personal examples of what is amazing.  Usually, it’s something that we cannot comprehend, that we Read more

Talk About Yourself to Build Customer Confidence - 4/16/24


When you’re dealing with somebody who is anxious or nervous about a situation, a customer who feels like they don’t have much control, an individual who is unsure and uncertain, it’s important to put the customer at ease.  It’s important to build their comfort level.  It’s important to help Read more

To Improve Customer Retention, Make Products Free?

Posted on 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/