Forum Discussion

jameslacey6's avatar
jameslacey6
Network Novice
Hace 2 años

Why Risk Losing Us as Customers?

A couple of friends just switched to T-Mobile. They ended up getting two new phones and a good plan for seniors.

As existing customers, there doesn't seem to be any special offers that can help us at least upgrade our iPhones. Verizon is offering us two new phones to switch. I prefer not to, but why would we not switch since their plans are similar and we would upgrade to new iPhones?

And we all know some folks get phones for free…

Seems illogical to lose us as customers. Does this make sense?

  • tidbits's avatar
    tidbits
    Spectrum Specialist

    It does make sense to lose you as customers because if you end up saving money and want free phones they may lose more keeping you.  Often businesses may take an initial loss and hope their services can keep you so they can recoup their losses in the long run.

    weigh your options. Last time i looked I would pay $68 more per month over 3 years than what I pay now, and I have to trade in my phones (iPhone 13 Pros or my Pixel 7 Pro).  So losing trade in values for the devices and also being stuck for 3 years.  It comes out to almost $2500(with the value of devices) which is more than 2 iPhone 15 Pros.  For the deal you are talking about you need to trade in devices lock in each line for 3 years, and MUST get the Unlimited Ultimate Plan, 

  • Thanks for your response. I actually worked for AT&T for 36 years. Many years ago we did a study on churn and found out it was more cost effective to keep customers, then lose them and have to get new customers. The "factor" was the new customers were getting great deals so the company lost money to bring them in by let's say giving them free cell phones. And many customers play the game by switching and switching.

    The end result was creating a retention group whose job was to, within reason, prevent churn. 

    Being on fixed budget as a senior has me looking to cut costs monthly. I don't mind paying a decent price for a more updated iPhone to stay with T-Mobile. I am simply not looking to spend like 600 or more for not even a new iPhone model here when I can get for free at let's say Verizon.

  • tidbits's avatar
    tidbits
    Spectrum Specialist

    Many Years Ago?  Is this based on when they all had 2 year contracts and with those contracts the consumer often pays up to ½ the device cost with the average price for top range devices at $600? The average profits AT&T was making $45 per 100 while on contract and if the customer liked their phone, and went monthly they'd make 55-75 per $100?

    Without devices tied to contracts it's a lot different playing field. Carriers don't get discounts on devices like traditional buying in bulk think they would.  As I pointed out if you switched you may be paying more over 3 years than you would if you just EIP the device.  Look at the numbers.  Just because you want a new device doesn't mean a carrier should lose money giving it to you.

     

    If you are on a fixed budget check those numbers and make sure you are paying the same if not less switching.  I am on a fixed budget myself, and I always look at the numbers.