Have service companies given up on brand loyalty?

Question

Two examples.

I walked into the Cing**** store, after having been an AT** and then Cing**** customer for 5 or 6 years. I was informed that, though my contract is up, I can't get the same deals on a new phone as Joe Blow who just walked in off the street. So, I'll be walking on down the street as well, to whomever can give me the best deal.

Another example. My cable company, Com****, is offering all kinds of package deals for new subscribers. When, as a customer for a decade or so, I called requesting the same price on my bundled service, I was told no; I'd have to continue paying $30 a month more. After half an hour or so on the phone, and threatening to cancel everything, I was finally rewarded for being rude and obnoxious by getting the special deal.

Do the auto companies charge returning customers more for a new car than someone switching from another brand? So, why do service-oriented and utility companies believe it makes business sense to reward loyalty in this manner?

Answer 1

Because in all honesty, they feel they already "have" you - and I'd be willing to bet any amount of money that these companies have some focus group report somewhere in their files that states that most people will NOT switch companies out of habit or sheer laziness. They know that for the most part, they can snag us with promises as a new customer, then file us away once we sign our souls over to them via contract.

There is also the fact that - at least in the case of the cable company - there are so few choices to switch to, so in essence, you are pretty much screwed no matter where you go. Here in New york, there are only TWO cable service providers and like I said, you are screwed with either one of them. And we have to pretty much pay the same amount of money for either one, so what it all comes down to is the customer service, or if you can stand crappy customer service, then the locations of their offices and stores.

In this day and age with one company buying another one and scaling down the choices consumers have, the actual consumer is being left out of the business equation - we should all be livid about this!! I don't look forwared to a future where ONE company will own everything we buy - goods or services. Bowing down and not trying to make an effort to change the way the consumerist market is going is only making it worse for OURSELVES. The real problem is that we have also come to an impasse on this issue - either make a stand and live without cell phones and cable, or let it keep happening and drop our pants, bend over and....well you know.

I pray that we consumers can somehow get together and work as a united, strong group to be fairly treated and have many comapnies vie for our hard earned dollar in this "capitalist" society.

Answer 2

I know the feeling with the company Com****. In their case, they have a monopoly on the television market. If you want cable, you will pay their prices, regardless of how long you have been a customer. I would suggest going to Dish for TV - They have to compete so prices are driven down.
With the last car I bought, a Pontiac, I plain out asked the salesman if I would be getting a price cut for being a returning customer - With them it is a matter of haggling.
As for the phone - I would suggest Sprint. My father has been with them for a while and they have been keeping his rates very low in comparison with the newer plans offered.

Answer 3

I absolutely agree with you. The best deals or promotions are always offered to new customers. But why doesn't anyone give specials or promotions to their longstanding customers? They should reward those who stay because we could easily drop their service and go to the competition for a better deal. When are they going to reward us for our loyalty? I'm not going to hold my breath for that! Just to let you know as far as a cellular company for my husband and I, we go with Verizon Wireless because of the family plan. We are also eligible for the new every two plan, which means in 2 years when your contract is up, they give you $100 (not literally of course) towards the purchase of a new phone. That was enough incentive for us! I'm on the same page with you, as far as everything else!