When Service Providers get it all wrong

Put yourself into the shoes of one of the big 3 Telcos here in Singapore for 1 minute. Assuming you had all power to drive strategy for market share expansion, would you focus on the best promotions possible to lure and flirt and chase after potential customers on rival service providers? Or would you put attention on retention programs to keep existing customers? Most would say "both" but the reality is that the latter is often overlooked. HUGE mistake.

It's exactly how Aesop felt when he was penning the fable about the greedy dog and it's bone. It was so excited about the bone's reflection that he lost the real bone in his mouth. Telcos have been shocking across the board in their approach (in my experience) when it comes to customer loyalty and i think it's not unfair to point the finger when fault is due.

My case for grief comes from a good friend of mine whom recently emailed M1 to politely remind them his contract was expiring and he would like some incentive to stay on as a happy customer. Not only was his request rejected but the reasons provided was utterly disappointing to say the least.

Background

1) He has been a customer for 10 years
2) He had served 18 months of his existing contract
2) His bill i dare say belongs on the upper curve of any mobile bill trend in his demographic
3) He's a really nice guy!

Extracted verbatim written response from M1
"Please allow us to explain that the issuances of handset re-contract
vouchers are based on factors such as customers' tenure, average
spending, current handset contract status and other factors. From time
to time, we do review your mobile line with us and will make a special
upgrade offer to you where applicable. We regret that we currently do
not have any special upgrade offers for your mobile line.."

In their defence , they did state that "you may contact us again upon completion of 20 months of your contract (after 14 April 2009) and we will review your request for
a handset re-contract voucher." So, the reply above must have been a result of some guideline that outlines when a customer is eligible for vouchers or upgrades.

Now, if you ran a F&B business and you had a 10 year old regular whom seldom bought set meals and ordered ala carte most of the time, i'm guessing you would be pretty agreeable every 18 months or so if he asked you for a free coffee. Which part of customer centric marketing does M1 need to get in order to realize extraordinary service requires an ear to listen rather than a voice to dictate guidelines?

The result? I'm blogging now, my friend is probably gonna tell at least 10 more. You as the reader might agree or disagree (but im guessing you're as disgusted as i am); in this day & age of social viral marketing, what medieval policy dictates that existing customers are to be treated like the old wife who slaves over hot oats whilst the husband woos the enemy's younger mistress with fur and meat? What effort does it take to pull a fraction of a pull marketing campaign and devote it to customers with expiring contracts sending vouchers or goodies that say "Hi, i know you exist, i value you. Let's stay connected"

Let's wave the magic wand of hindsight and learn from this. The existing customer has emotional ties to the service. We wouldn't have stayed otherwise. Loyalty is a virtue the new prospect has yet to show. Don't abuse it, don't take it for granted and remember, "hell hath no fury like an existing M1 customer scorned"


"The Story" by Brandi Carlile