Existing customers not getting new customer benefits

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › Existing customers not getting new customer benefits - whats peoples experience

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#2285637 30-Jul-2019 12:10

pom532:
Is there much room for profit at these prices?

Well, if no profit maybe they should not give the $200 credit to new customers, it just encourages people to ask for it with a resign, or to leave and come back as a new customer.

It seems to be the way business is now, that companies like people to be on contract, but of course to be on contract people will want something extra, Spark gives free Netflix and Lightbox, I got lower prices from the power company for signing another year contract and prices frozen for a year.

If I take Landline out of equation Spark is $13 more expensive then 2degrees with entertainment so is only $2 off $15 Netflix, and free Lightbox.

So my contract finish’s next month, have free Prime Video 6 months after that, when Prime Video finish’s will ask for if anything for resign, if they offer nothing then I’ll be out of contract.

If no contract, I’ll stay with 2degrees , but if prices change or an offer from a reliable ISP, will be free to look at it.

If they take hours to answer phone and there’s no live chat or something that will effect decision making as well.

sbowness

225 posts

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#2285792 30-Jul-2019 14:49

My contract came up for renewal last week. The automated offer was for free Prime Video for 12 months and my next month for half price. I rang to see whether the extra $10 off per month was available to me and they were happy to give it. I didn't ask for the $200 joining credit as I claimed that last year. I would not expect to receive one if I wasn't actually joining.

In terms of other ISPs, some are cheaper and offer other sweeteners. You have to weigh that up against customer satisfaction. If everything goes well, then you'll be a happy camper regardless. If something goes wrong and you're with Spark or (as I was) Vodafone, then good luck. I had been a VF customer since ihug days and for 90% of that time, everything was fine. In the last couple of years, I spent many hours trying to resolve issues that they had caused and my tenure as a customer was irrelevant to them. So I left. So far, I've had two issues with 2D and both have been resolved within minutes. I have seen comments that their wait times are sharply up at the moment and it did take around 15-20 minutes for my call to be answered. However, to move ISP (which is not a risk-free process in itself) simply based on price, I would suggest that you need to be very sure that you are actually going to get a better experience by doing so. Also, some ISPs have a minimum notice period for cancellation and you may end up paying two ISPs at the same time, which could wipe out any savings you make.

Huskie

143 posts

Master Geek

#2286267 31-Jul-2019 10:29

Got a call back from 2D. He checked with a supervisor and said they can offer me either $200 credit OR $65 for 12 months if resigning. Based on their sales page, I'm under the impression you get both the credit + lower price???

Am I incorrect? Again, as far as I'm aware, I have not taken up any credit offers previously (not when it was Snap, and not when it changed to 2D).

kotuku4

483 posts

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#2286275 31-Jul-2019 10:48

I can change power provider, bank, kiwisaver or insurance as it is fairly seamless.

I should change internet service to get a slightly better deal. I prefer not to be locked into a 12 month term, and would not sign up to 24 month. And to use my own router.

Have changed in the past several times, and there is always some drop in service as it changes over, and sometimes re configuring or changing routers, and sometimes mess up the change over date and pay for an extra month with the old provider.

Is it worth the hassle to seek the best deal or change?

Huskie

143 posts

Master Geek

#2286397 31-Jul-2019 12:54

From 2D in response to my query as to why I'm ineligible for the full deal:

"This is the sign up pages for new customers, which we are running this promotion for. We do offer a similar deal for existing customer but unfortunately it does not include the joining credit."

So much for being a loyal customer. The fact that I've been with them for 5+ years and never taken up a credit offers means nothing to them. New customer? Yeah mate, $200 + 65p/m for you. Loyal customer re-signing? Nah, half a deal for you. What a joke.

Linux

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#2286401 31-Jul-2019 12:58

Huskie:

From 2D in response to my query as to why I'm ineligible for the full deal:

"This is the sign up pages for new customers, which we are running this promotion for. We do offer a similar deal for existing customer but unfortunately it does not include the joining credit."

So much for being a loyal customer. The fact that I've been with them for 5+ years and never taken up a credit offers means nothing to them. New customer? Yeah mate, $200 + 65p/m for you. Loyal customer re-signing? Nah, half a deal for you. What a joke.

@Huskie Have you called like others? They have got the $200 credit

MichaelNZ

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#2286436 31-Jul-2019 13:08

E3xtc:

I was looking at the 2D site and noticed that as a new customer I could get $65/month bb connection and also get a $200 credit, along with Amazon Prime Videos if signing up for 12months.

As an existing customer (not on a plan), if I sign up for 12 months, from reading the terms and conditions at best I would get Amazon Prime Video...no $200 credit and no discounted monthly fee....I hate the whole lets favour new customers over existing (loyal) ones (although I understand its how they reel people in)...but has anyone tried to see if customer services will apply the new customer deals to existing customers?

Truth is, your business is not worth anywhere near as much to them as you may believe it is. At $65 per month an internet provider will be breaking-even or even making a loss - depending on their cost structure and the quality of their internet connections.

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

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Huskie

143 posts

Master Geek

#2286443 31-Jul-2019 13:14

@Linux Yes I have talked with them on the phone and now by email. As per MichaelNZ above, 2D couldn't care less because it would hit their profits. Essentially as a loyal customer you're paying for them to offer promos for new customers. I should've started company hopping when there were good deals elsewhere - silly me for sticking with 2D.

MichaelNZ

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#2286447 31-Jul-2019 13:16

Huskie:

So much for being a loyal customer. The fact that I've been with them for 5+ years and never taken up a credit offers means nothing to them. New customer? Yeah mate, $200 + 65p/m for you. Loyal customer re-signing? Nah, half a deal for you. What a joke.

You got your internet for a measly $65 per month for 5 years.

For a measly $65 they have bought in international bandwidth for you blended it all together in their data centre and delivered it to your home (At a cost of around $50 or more at wholesale price just in Chorus fees). Even given you a help desk.

It costs a lot of money to run an ISP-

- International bandwidth (usually multiple bills)

- Bandwidth from the competition aka Global Gateway aka Spark because they don't peer and use their market dominance to the maximum

- Peering Exchanges

- Chorus and the other LFC's

- APNIC - ASN's and IP's

- Electricity and lots of it

- Equipment

- Staff

- Commercial space and/or data centre space

- Interest or loss of use on the money paid as security deposits to Chorus, etc.

- Losses on clients who don't pay their bills.

Any of you feel free to start your own ISP and find out all of the above for yourself.

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

Huskie

143 posts

Master Geek

#2286478 31-Jul-2019 14:11

MichaelNZ: snip

Where did you get that I paid $65 for 5 years? I would have been stoked with that.

We signed up with Snap when it was $120+ for years, and been on $85 for the rest. Now $75 for BB (inc $10 discount) for the last year ($80 for the mobiles). Meanwhile, haven't taken any offers whatsoever over the whole span of my account. When you see everyone else getting offers for being a 'new' customer, then you can see why I'm a little peeved, whether or not you think it's big money in the grand scheme of things for 2D.

MichaelNZ

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#2286479 31-Jul-2019 14:13

Huskie:

Now $75 for BB (inc $10 discount) for the last year

$65 or $75 - it's still the same situation. The numbers don't stack up for ISP's at that level for any cabled service through Chorus or an LFC.

So for those who are complaining they haven't got a candy bar for you - it would be more profitable for an ISP to simply let you go.

Quite frankly, it's their own stupid fault for selling stuff at unsustainable prices but quite understandable they don't want to compound the issue by giving freebies away to existing clients.

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

Huskie

143 posts

Master Geek

#2286490 31-Jul-2019 14:34

And so, we're back to the original point of this thread. Existing customers miss out. A one-off $200 is not going to sink them. Especially since it renders you ineligible for any future credit offers.

I'm not even sure why you came in with your grand spiel of network infrastructure. This seems to be an "experience thread" and I wrote about my experience and opinion on their treatment of existing members.

quickymart

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#2286772 31-Jul-2019 18:35

If all existing customers called up and demanded a $200 credit, I think there's a good chance it would "sink them", as you say.

MichaelNZ

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#2286774 31-Jul-2019 18:39

quickymart:

If all existing customers called up and demanded a $200 credit, I think there's a good chance it would "sink them", as you say.

The majority of customers simply just use the service and pay the monthly bill.

Any ISP will be more profitable by dropping users who demand the cheapest price, freebies on top and jump ship every 5 minutes to the new "bottom of the barrel" player.

WFH Linux Systems and Networks Engineer in the Internet industry | Specialising in Mikrotik | APNIC member | Open to job offers

Huskie

143 posts

Master Geek

#2286883 1-Aug-2019 00:47

How many customers would you estimate have never taken out any offers? Of that, how many would know to ask for a credit if resigning?

I agree it's best for companies to drop customers that "demand cheap prices and freebies or jump ship" but that point is irrelevant to my experience.

Again, I didn't sign up with a sign on bonus, never took up a lower fixed term rate or any other credit offer. In 5 years, I paid the full price at the time, was with them the whole time never jumping for better deals elsewhere, never asked for a price drop, contacted the retention team or whatever else stunts people pull these days.

Yet, I'm ineligible for the full deal because the supervisor the rep asked, said no.

On the other hand, you've got OP who was an existing customer but got the deal as if he was a new customer, and another poster who got a $200 credit when he initially signed up to his contract, called upon his renewal and got given the 65p/m deal the other day (essentially getting the full deal).

Mind you, the deal they're offering me is the same one they will offer to any actual plan hopper that is coming back for the fixed term.

Anyway, I'll leave it at that.
Obviously, it's a luck game as to which type of supervisor you get.

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