Sky's new marketing strategy...begging

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Edder

7 posts

Wannabe Geek

#260123 11-Nov-2019 21:07

So, I've had the Sky Basic package for about 4 months since I clumsily dropped my freeview decoder on the floor.

Sky served its purpose until I got an XBox One S and installed Kodi on it, allowing me to get freeview over broadband.

As such, I rang to cancel Sky.

A lovely lady rang me back and asked me all the usual retention type questions (why are you leaving? Do you know we have sport? Movies, etc)

After I said to her the only reason I got sky was because it was easier than going to the shops and forking out $100 for a freeview satellite box.

After a bit of Q+A time, she said I had $22 on my account that would be due in a couple of weeks, then she offered 3 months of their lowest package($18.70 per month) for free. I was expecting there would be a contract or something. But no, Sky would rather give me 3 months of FREE service, then let me leave, than just let me leave.

I'm no businessman, but wouldn't that be the definition of throwing good money after bad?

Interested in hearing people's thoughts around this.

Edder

7 posts

Wannabe Geek

#2351891 11-Nov-2019 21:09

Oh by the way, I forgot to mention, they also wiped the $22 on my account, without me even asking them to. WTH?

nitro

761 posts

Ultimate Geek
+1 received by user: 338

#2351966 11-Nov-2019 23:07

not so new... when i cancelled my subscription no less than 5 years ago (i no longer had sky for the 2015 RWC), i was offered to have the same package for free for 3 months. that was with sport and movies, so over $100. the trick was that the billing resumes if you don't ring again before that 3 months lapses. had my mind made up by then, so didn't take the offer.

good money after bad? i imagine this is how they see it - whether you accept the offer or not, they're not making any money off you for those 3 months. and if you should change your mind or even simply forget to ring them again to cancel, the billing resumes.

mattwnz

20520 posts

Uber Geek
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#2351969 11-Nov-2019 23:16

I am guessing it is similar to the free trial period that companies offer, where when you get to the end it can be more of a hassle to cancel, than to keep using it, because you will likely find some benefit to it. So it is probably a good marketing thing, because it is far easier to keep customers, than to find new ones. ALso it helps keep numbers up. For example Lightbox is given free to many of Spark broadband customers, so the subscriber numbers look good. The those customers can be upsold on movies. So making some money is better than making none.

rugrat

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Lifetime subscriber

#2351988 12-Nov-2019 00:39

One of my friends rang up to cancel, they gave him a 3 month deal.

After 3 months it went back to full price. It's now well over a year and he's still got it, so there is a success rate in keeping a customer and getting them back to full billing.

Hammerer

2480 posts

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Lifetime subscriber

#2352028 12-Nov-2019 08:32

Also, the free period changes the financial proposition. If you were only prepared to pay the equivalent of 9 months at the full price then a 3 month discount moves the cost into the acceptable range.

networkn

Networkn
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#2352049 12-Nov-2019 09:34

This seems less like begging and more like pretty standard retention policies to me.

I'd not complain about 3 months free.

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Edder

7 posts

Wannabe Geek

#2352078 12-Nov-2019 10:27

Oh, absolutely. No complaints here.

johny007g

358 posts

Ultimate Geek
+1 received by user: 66

#2352097 12-Nov-2019 11:13

Edder:

, then she offered 3 months of their lowest package($18.70 per month) for free. I was expecting there would be a contract or something. But no, Sky would rather give me 3 months of FREE service, then let me leave, than just let me leave.

I'm no businessman, but wouldn't that be the definition of throwing good money after bad?

Interested in hearing people's thoughts around this.

I've been offered this twice when leaving and the package is only for Freeview channels using their decoder waste of time as can get Freeview with aerial, so just told them to cancel both times.

johny007g

cws82us

788 posts

Ultimate Geek
+1 received by user: 23

#2352176 12-Nov-2019 12:09

I called them and they cannot give me no deals or anything

join Quic and get free sign up when you click my link https://account.quic.nz/refer/250676

01EG

612 posts

Ultimate Geek
+1 received by user: 36

#2352185 12-Nov-2019 12:49

Will be there any promotion for Sky Sport(to watch the super rugby)? Keen to sing up.

Mahon

473 posts

Ultimate Geek
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#2352198 12-Nov-2019 13:07

With all the new sports broadcast deals Sky has won, I do wonder who will ultimately pay for it all, as the $millions needs to come from somewhere.

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tripper1000

1648 posts

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#2352253 12-Nov-2019 13:47

"Begging" is a strong description. It is similar to companies giving free tasting samples in the supermarket. You haven't tired all of their offerings and they're hoping that after a free/cheap taste test you might be tempted to buy their product.

For Sky it is usually more difficult to give away free samples due to the hardware installation costs, but as you're already set up, it is practical to do so for you.

quickymart

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#2352405 12-Nov-2019 18:28

01EG:

Will be there any promotion for Sky Sport(to watch the super rugby)? Keen to sing up.

In what key?