Thursday, May 30, 2013

Retention woes

Retention, when a subscriber renews his contract is always a problem. Back in 2003, I was a Globe subscriber. Back than phones were expensive, and Globe Telecom did not give away phones on a regular basis. I had my 5 or 6 year old Nokia 2110, on its 4th battery, and the phone was starting to fall apart. The plastic around the antenna had cracked a year before crack was now spreading to the case. I tried to apply for a new phone, but only spending Php1,200 to Php1,500 a month I did not qualify for a free phone. On my way out of the Globe Business Center in Shangri-La EDSA, a Smart Communications asked me if I was applying for a line. He got me a new phone, a HTC Tanager and a new line in 30-minutes. 

When I applied for 2009 retention with Smart Communications applied for retention the phone I signed up for was not in stock and actually never arrived. Eventually, after waiting two or three months, I just accepted a different model and added Php7,000 some cash, since the available model was a higher end unit. The bad part is that my new 24-month contract did not start when my first one ended, but it started after the delivery of my new unit. So instead of being locked in 48 months on two contracts, I was locked in 51 months or so.

2011 was different. Smart had impulse based retention allowing a subscriber to retain up to six months prior to the termination of the current contract. This was called impulse based retention. So I went from my second contract to my third contract without any gap. Now in 2013, it is back to the old system. You can only apply from retention after your contract expires. I am hoping that there is no delay in the delivery of the new unit each time. 

In fairness, I had similar problems with my Plan 1000 line with Sun. I applied for retention, but they also were not able to deliver the phone I selected from their catalog. Eventually, I downgraded to Plan 350 contract free. Later on, when my wife available of retention, I also applied for phones. Neither of us got out units, and after two months I decided, we just decided to terminate our lines.

I think impulse base retention was a very subscriber friendly policy. It could even be shortened to one month before your contract expires. Hopefully, Smart Communications will bring back this policy. Right now, I feel like carriers are really just interested in getting new applications and hoping that your affinity for your phone number will keep you from switching.

9 comments:

  1. It is always worse with Globe. I don't know how they can treat existing post paid subscribers as second class subscribers versus new applicants.

    1. Globe does not even tell subscribers about the loyalty program. Most of us knew about it from someone else. Smart informs the subscriber when it is already possible to renew and get a new phone.

    2. Globe is tricky with their 'loyalty' rewards. They don't list phones available. You have to call 211 or talk to the store CSR. It's like so few models are available at any one time and when you call again on your decision, it will be out of stock. I once asked their CSR why there were stocks available for new subscribers and not for the loyalty program, she said it is because a separate group handles the loyalty and another for the new applications. Why is that? Why can't they offer their old subscribers the same perks as new ones. In fact, old subscribers should be rewarded for sticking with them. At least with smart, on their phone pricelist, there is a column for retention plan options/price/cashout.

    3. Some people also cut off their old lines and simply apply for a new line to get their preferred phones. This only hassles the subscriber when it is just the same ultimately. It just adds to Globe's processing costs and customer unhappiness.

    4. For Globe loyalty program, it is always the subscriber who must painstakingly go through the retention process. Most people end up angry and slighted. I sometimes wonder whey they even have a loyalty program in the first place. I once was offered my preferred phone only when I decided to terminate my line already, it's really a slap in the face.

    Maybe they are very happy when there is a high number of new subscriptions. But I'm sure there is a high number of terminations because of their loyalty program policies. Maybe the termination rates are very low compared to new applications. Maybe they are just arrogant. maybe they think they still have ace up their sleeves when they have none. Iphone is no longer exclusive, smart is hitting them from low to high with its multiple brands Sun,PLDT.

    All of my friends who have transferred to Smart are happy with their customer service. I am also jumping ship next month after my Globe contract ends. Goodbye to my 13 or 14 year old Globe number.

    ReplyDelete
  2. Thanks for the feedback. I guess the grass is always greener on the other side. Well, if you go with Smart, th network is good and reliable. Have an application with Globe (they are the only ones with the LTE BlackBerry Z10). Maybe, I should stay put.

    ReplyDelete
  3. Globe retention sucks...
    a few years ago i got an Iphone 4 from Globe, i also availed of the SuperDuo back then it was only P499.00 per month.

    Now more than 2&1/2 years later i'm looking to renew my plan because the new plan is more reasonable than the old plans of globe... when i called customer service for renewal they told me that my superduo would be changed to P599 (because that is the new rate) it was fine with me because i would still be getting more consumables with the new plan...
    but they also told me that they would be changing my superduo landline number... (i use the landline for business)

    now i'm stuck to just getting the REBATES...

    ReplyDelete
  4. Globe is the worst for maintaining customer loyalty, I had to wait for 3 months for my preferred unit when a new customer can just go to a branch and get a unit after an hour

    ReplyDelete
  5. So I world guess it looks like all carriers really just prioritize new accounts.

    ReplyDelete
  6. Reason why they prefer new subscriptions over retention is because globe sales reps dont get commission for renewals. they get commission only on new applications. trust me on this, i worked for a telecom company.

    ReplyDelete
    Replies
    1. You would think it would be the same both ways.

      Delete
  7. glad that i stumbled on this blog. my contract with globe is about to expire on oct. am thinking of terminating my contract.

    ReplyDelete
  8. Nice post! Can’t wait for the next one. Keep stuff like this coming.

    Visit this web site Online Big Store

    ReplyDelete

Related Posts Plugin for WordPress, Blogger...