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  Reply # 2094963 22-Sep-2018 15:18
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lookout:

I used the online chat - they offered to waive the early termination fee or a $10 per month discount to stay with them. I took the discount.



I tried online chat as well today. They confirmed they will waive the $199 termination fee, but didn’t offer me any incentive to stay.

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  Reply # 2095004 22-Sep-2018 18:45
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irongarment: I have to pay this and it pisses me off. I can't get fibre, much as I'd like to. Bizarrely when I called Spark to complain they told me I could leave and find another supplier. That's absolutely not the way to run a business (although it's typical for New Zealand).

 

 

 

They could say stay with us and pay. Or they could look after you and offer an option to leave. That is customer focused, even though its not in Sparks best interests.

 

It is in their best interests, long term.


 
 
 
 


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  Reply # 2095005 22-Sep-2018 18:48
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irongarment: I wouldn't mind except that they're offering new customers 50% off for the first 6 months. The idiocy of this company in regard to retaining customers is mind-boggling.

 

You need to get with it. And stop the rant. Many many companies look at new customers and give benefits over and above current customer deals.  


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Master Geek
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  Reply # 2095031 22-Sep-2018 21:42
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tdgeek:

irongarment: I wouldn't mind except that they're offering new customers 50% off for the first 6 months. The idiocy of this company in regard to retaining customers is mind-boggling.


You need to get with it. And stop the rant. Many many companies look at new customers and give benefits over and above current customer deals.  



Err, thank you for telling me how I should react.

Let's do some simple sums.

Existing customer is asked to pay $5 extra per month. That's $60 per year.

New customer is offered 50% off unlimited broadband for 6 months for a new 12-month contract. Broadband is about $100 a month, so that's $300.

If the existing customer is annoyed enough to leave it would cost $60 to retain them (by waiving the additional fee).
To get a new customer will cost $300 (in discounts over the base price), plus you can only get a new customer from the pool of potential customers who have not just quit in disgust.

I can see the finest business minds are at work here.



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  Reply # 2095037 22-Sep-2018 22:34
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irongarment:
tdgeek:

irongarment: I wouldn't mind except that they're offering new customers 50% off for the first 6 months. The idiocy of this company in regard to retaining customers is mind-boggling.


You need to get with it. And stop the rant. Many many companies look at new customers and give benefits over and above current customer deals.  



Err, thank you for telling me how I should react.

Let's do some simple sums.

Existing customer is asked to pay $5 extra per month. That's $60 per year.

New customer is offered 50% off unlimited broadband for 6 months for a new 12-month contract. Broadband is about $100 a month, so that's $300.

If the existing customer is annoyed enough to leave it would cost $60 to retain them (by waiving the additional fee).
To get a new customer will cost $300 (in discounts over the base price), plus you can only get a new customer from the pool of potential customers who have not just quit in disgust.

I can see the finest business minds are at work here.


Yes the cost of acquiring a new customer is very high. And the cost of retaining a customer actually pretty low. But customers are generally very sticky and tolerate a lot before being motivated to churn. In some studies it appears that you have to use between 25%-40% of headline savings to get customers to churn away from their existing telco.
There are those that habitually churn but it's a small %. Spark are banking on the ides that the hassle of changing is greater than $5 per month. And hoping that others follow rather than compete for market share.

The electricity report shows how few customers change despite the clear savings and a very homogeneous product and no real customer service. A telco is not very different to a electricity retailer despite how much they tell you otherwise.

The only way to send a message is to vote with your wallet. Still the same old Telecom ripping customers off.

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Master Geek
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  Reply # 2095050 22-Sep-2018 22:42
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Oh, god. Let's not move on to the farce of the New Zealand electricity "market".



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  Reply # 2095061 23-Sep-2018 08:44
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irongarment: Oh, god. Let's not move on to the farce of the New Zealand electricity "market".


Agreed but the point is that in the face of significant cost savings from switching most people don't. Customer inertia.

And the key point I think is that Spark makes almost $500m of free cashflow each year. If it wanted more people to switch to fibre then why not drop fibre prices by $5/mth and incentivise the migration to fibre?
Why increase prices e by multiples of inflation with no change in input costs to increase its already healthy bottom line for its shareholders? Because it can, and plenty of customers will suck it up with little complaint (as evidenced in these forums)

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  Reply # 2095068 23-Sep-2018 09:37
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irongarment:
tdgeek:

 

irongarment: I wouldn't mind except that they're offering new customers 50% off for the first 6 months. The idiocy of this company in regard to retaining customers is mind-boggling.

 

 

 

You need to get with it. And stop the rant. Many many companies look at new customers and give benefits over and above current customer deals.  

 



Err, thank you for telling me how I should react.

Let's do some simple sums.

Existing customer is asked to pay $5 extra per month. That's $60 per year.

New customer is offered 50% off unlimited broadband for 6 months for a new 12-month contract. Broadband is about $100 a month, so that's $300.

If the existing customer is annoyed enough to leave it would cost $60 to retain them (by waiving the additional fee).
To get a new customer will cost $300 (in discounts over the base price), plus you can only get a new customer from the pool of potential customers who have not just quit in disgust.

I can see the finest business minds are at work here.

 

Thats ok. If you wish to denigrate any company, be aware that this practice is common. Its a marketing practice, and given that its in wide use, and the end game is not about the discount costs, its about ongoing revenue.


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  Reply # 2095073 23-Sep-2018 09:41
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irongarment: Oh, god. Let's not move on to the farce of the New Zealand electricity "market".

 

Its an interesting market, and the report dent seem to fussed about making much change. Its a market where there is a lot of choice, and a lot of benefit to change provider. You can get good savings if you change provider and manage your usage. But, many customers don't do this. That hardly the providers fault, although theor plan pages are often difficult to understand. 

 

Like Telco's, many options, and benefits if you change, and if you want to churn, benefits there as well to keep you. Its really a consumers market 


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  Reply # 2095077 23-Sep-2018 09:52
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tdgeek:

irongarment: Oh, god. Let's not move on to the farce of the New Zealand electricity "market".


Its an interesting market, and the report dent seem to fussed about making much change. Its a market where there is a lot of choice, and a lot of benefit to change provider. You can get good savings if you change provider and manage your usage. But, many customers don't do this. That hardly the providers fault, although theor plan pages are often difficult to understand. 


Like Telco's, many options, and benefits if you change, and if you want to churn, benefits there as well to keep you. Its really a consumers market 



Hello? It's not real. It's the same electricity from the same generators sent over the same wires. Everything was built and paid for by the taxpayer, then divvied up and rebranded to make it appear that it was something new.

Certain markets are a natural monopoly, and should be treated as a public good. Pretending that they are not is bad for the people, and fundamentally bad for the country.

Unfortunately this is getting off-topic and really should move to its own thread. I have a feeling, however, that this argument has been brought up and, er, discussed many times before.

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  Reply # 2095080 23-Sep-2018 10:04
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irongarment:
tdgeek:

 

irongarment: Oh, god. Let's not move on to the farce of the New Zealand electricity "market".

 

 

 

Its an interesting market, and the report dent seem to fussed about making much change. Its a market where there is a lot of choice, and a lot of benefit to change provider. You can get good savings if you change provider and manage your usage. But, many customers don't do this. That hardly the providers fault, although theor plan pages are often difficult to understand. 

 

 

 

Like Telco's, many options, and benefits if you change, and if you want to churn, benefits there as well to keep you. Its really a consumers market 

 



Hello? It's not real. It's the same electricity from the same generators sent over the same wires. Everything was built and paid for by the taxpayer, then divvied up and rebranded to make it appear that it was something new.

Certain markets are a natural monopoly, and should be treated as a public good. Pretending that they are not is bad for the people, and fundamentally bad for the country.

Unfortunately this is getting off-topic and really should move to its own thread. I have a feeling, however, that this argument has been brought up and, er, discussed many times before.

 

Don't hello me. I don't recall saying its real, nor did I say it should or shouldn't go back to being a publicly run service. You can say the same for communications. The usual response to that is that Govts cannot run anything efficiently. Plus, what other markets should be a public good? Fuel? Thats a ripoff and secret market. But, thats another thread topic. Privatisation does add more ticket clippers, no doubt about that, but the competition should hold prices, thats very clear with Communications, there is no easy street there, the many providers hold each other in check. Plus you get innovation. I can get power for example, based on many different price offerings. Peak, off-peak, I can get spot prices, I can get a free hour of power once a day (which I do). I doubt you would see that if it was public. But a good new thread topic.


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  Reply # 2095091 23-Sep-2018 11:36
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Changing ISP is more risk than changing power company. Its common and expected to have to pay some overlap between them, and the chances of the service being disrupted are signifigant, and the quality of the service you get can vary.

 

With power, they dont send someone out to cut you off and then someone from the new power company to reconnect you, the power is the same power, and they only charge the daily charge for days they supply you.

 

I know people that have shifted power companies 3 times in one year, noones doing that with internet because of term contracts and the double billing for notice periods.





Richard rich.ms

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  Reply # 2095092 23-Sep-2018 11:40
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Lol, let them be silly.

If unhappy with price contact and let them know to see if lower price, if can do that more convenient then shifting.
If that fails then move to cheaper provider. I’ve done it with both telcos and electricity providers and are now happy with both so feel fair price for everything.

Unlike electricity market I don’t think all internet providers are equal, there’s more that can go wrong, some are better fixing issues then others, and I got burned once where one had terrible international speed that was even noticeable on copper.


ajw

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  Reply # 2095235 23-Sep-2018 20:40
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rugrat: Lol, let them be silly.

If unhappy with price contact and let them know to see if lower price, if can do that more convenient then shifting.
If that fails then move to cheaper provider. I’ve done it with both telcos and electricity providers and are now happy with both so feel fair price for everything.

Unlike electricity market I don’t think all internet providers are equal, there’s more that can go wrong, some are better fixing issues then others, and I got burned once where one had terrible international speed that was even noticeable on copper.

 

Exactly I have always thought that Sparks fixed line pricing and mobile pricing is not competitive plenty of other providers out there.


'That VDSL Cat'
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  Reply # 2096010 25-Sep-2018 10:22
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lookout:

 

I used the online chat - they offered to waive the early termination fee or a $10 per month discount to stay with them. I took the discount.

 

 

Just to be clear, this isn't normal process for this particular situation.

 

You certainly lucked out on this one though (we wouldn't remove something already offered and agreed)





#include <std_disclaimer>

 

Any comments made are personal opinion and do not reflect directly on the position my current or past employers may have.


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