Thursday, September 3, 2009

The New Customer Gets the Best Deal

Switching to a new phone company, tv provider, or being a brand new customer just about anywhere is the way to get the best deal. Most really good offers are tagged as "not available to existing customers." There are a few companies that will give existing customers the "new customer deal" if asked but most will only match the offer if the service or products provided are cancelled.

I recently cancelled Optimum On-line TV, Internet and Phone service after two years. Before cancelling I phone up their customer service people and asked for the new customer pricing or some better pricing. The phone agent said essentially what I had is what I get and there were no better deals for customers. So I cancelled and got Direct TV and Verizon phone & internet.

I have received several phone calls from Optimum now offering me a "cheaper price" and also saying they will cover any cancellation costs. I told them I was no longer interested and suggested they change their customer policies and better train their customer service people.

When I wrote my book, Purchasing Negotiations, in 1980 I suggested that loyalty to people you were buying from was usually rewarded. I was wrong. All loyalty gets in today's market, even with the terrible economy and companies losing customers, is somewhat poorer service than new customers can get and generally higher prices.

There are a few exceptions. Marriott is one prime example. I used to travel extensively on business and stayed in these hotels as often as possible. Today after many years they still honor me as a long time customer, give me preferences in pricing and reservations and treat me like a long time friend. Mr. Marriott Senior started a philosiphy to honor customers, share holders and employees as both friends and family. His son carries on the tradition and as far as I can tell every employee of the company, from a Hotel in St. Petersburg Russia to the Americas to Asia all communicate the same message and feelings.

On the other hand United Airlines, who I had many hundreds of thousands of miles of frequent flyer point in years past, erased my unused points because I did not fly them for whatever their extended period was. They no longer need me and I in turn no longer select them as my airpline of choice on the few flights I take today.

Ask for loyalty from people you are doing business with today. If they give it stay with them and let them know you are staying. For those who are unwilling to reward your loyalty walk away, with no regrets as soon as possible. You have nothing to lose and everything to gain.

Glenn