Is Customer Loyalty Costing You Money?

Do you think being a long-term customer is a good thing? Do you think you’re rewarded for that loyalty? But… are you?

How have you been rewarded for staying with your cell phone carrier for 8 years? Or the phone company you’ve had an account with since before the AT&T breakup? Do they value your business? Have they shown you that they do?

Or have you been penalized for staying with your phone, banking or insurance company? Are you paying the same rates you paid when you signed up? Where are the technology gains and other benefits that should show up in the price you now pay?

Many companies penalize long-term customers by keeping them at the same rate as when they initially signed up. When that’s the case, you never receive the lower price that new customers get. You do not realize the gains that have occurred since you purchased the service. Perks and savings go to new customers unless you, the longer-term customer, ask for comparable treatment. So ask!

Negotiate Your Phone Costs Annually

You can negotiate everything. All it takes to get a price reduction is a willingness to ask for it. Don’t passively renew your expensive cell phone contract. Before it expires, call the Customer Retention department and ask for a better price and/or terms. You want more service for the same or less cost. For example, you want text messages included in the monthly rate without an extra per message charge. You want to add a family member to your account at no additional charge. Are they giving free or discounted phones with new service. Your goal is to get more features for less expense.

Your phone number belongs to you. You can keep the same number regardless of the carrier you use. This frees you to shop for a better deal — one similar to the advertised new account specials. New customers are offered better rates than existing customers. They benefit from the technological and other efficiencies that are passed on to them. If you don’t ask for a rate decrease, you won’t get these benefits.

Frugal is the New Cool

I negotiate my cell phone contract every renewal cycle. I ask more frequently if there is an advertising campaign that motivates me to call now.

My friend, Katherine called her cable company and asked for a better package. She mentioned she’s been a loyal customer for 9 years. Her cable company responded with a pricing package that saved her $50/month! That’s $600 in annual savings simply because she asked. Definitely worth the time it took to make the call.

Evaluate Your long-term Customer Relationships

How long have you been a customer of your current phone, cable and insurance companies? Isn’t it time you asked for a better deal? Look at your customer relationships and see which ones you should contact for price decreases.

Start your research by calling your existing company. Ask what new phone service would cost monthly? Ask if they have any special programs for which you quality. Ask what other perks they offer. Ask what more might you receive for becoming a customer. When you consider how much you’re going to pay the company over the life of your contract, it’s fine to push. Say you’re shopping around for the best rates. Ask to be sold.

The new price quotes become the basis for comparison of your existing costs. Use the new quotes to then negotiate a price decrease of your existing service. If your company won’t give you a significant price decrease … you now know it’s time to make a change. Then do it.

Let me know how this works for you. Thanks!

Warmly,

Judith, The Money Lady