New customer better deals

[Tony11849]

That's an excuse, not a reason, rip off 

[PandJ2020]

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@Tony11849 wrote:

That's an excuse, not a reason, rip off 

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We have no idea which post or comment you are replying to.

[daveNOS]

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@Tony11849 wrote:

That's an excuse, not a reason, rip off 

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@Tony11849 care to elaborate? 

[Robert288]

(Removed) I raised a complaint with sky. Explained my issue. Chap from the valued team called tried to apply the new deal. It would not work so he applied £180  discount added to my account the amount I would of lost over the next 18 months. (Removed)  follow your belief try try try again

Moderator note: Removed incorrect information.

[daveNOS]

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@Robert288 wrote:

I listened to this impartial chap lol.. he said new deals are few new customer only.

I raised a complaint with sky. Explained my issue. Chap from the valued team called tried to apply the new deal. It would not work so he applied £180  discount added to my account the amount I would of lost over the next 18 months. My advice DO NOT LISTEN TO THESE IMPARTIAL NOT EMPLOYED BY SKY. follow your belief try try try again

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@Robert288 No one here has ever said don't try to negotiate, all we have done is try to explain the reason why new customers usually get better deal.

[Daniel0210]

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@Robert288 wrote:

I just watched an advert. A brand new customer can get a sky glass basic package exactly same as I have for nearly 10 pounds a month cheaper fixed for 18 months.

As an existing customer 22 years I pay more!!!  New customer get cheaper loyal pay more so so wrong. My contract ends in April so me my glass mobiles Internet will leave

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@Robert288 

There was no suggestion in your original post you were prepared to negotiate. You were leaving at the end of your discounted deal full stop. Sky are not obliged to offer you any discount so if you've now been offered something that you find acceptable then fair enough. 

[dormouse]

I have to say that Sky's current approach is not as flexible as the past. As a Q customer who's contract ends in March I thought I would switch to Stream. I contacted them and hoped to get a good deal. However, they would not give me a package equal to their current Black Friday new customer offers.

I complained and was contacted by the Value Team but they would not match the new customer price for me. It was about £7 a month dearer for me.

I understand the new customer discounts, but in the past Sky would have offered me a good deal to keep me as a customer . After all I was looking to switch to their newest technology, pay more than I am now for Q and sign up for a new 18 month contract?? Poor customer approach in my opinion.

[PandJ2020]

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@dormouse wrote:

I complained and was contacted by the Value Team but they would not match the new customer price for me. It was about £7 a month dearer for me.

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That does seem to be the case nowadays.  Looks like I'll be leaving next August then...

[MarkGoldsmith]

It because the cost of obtaining a new customer is more expensive than retaining existing customers, as it requires marketing costs and good deals to attract new customers. Generally the percentage of customers that leave a TV subscription service is lower and they can retain the customer base for a longer period of time (at least several years), so for a corporate company it hits there profit margins more if they offer existing customers the same cheap deals as new customers.

I'm not saying i agree with the approach, but a lot of service based companies do this and put their strategies together based on the cost of obtaining a new customer vs retaining a customer and it makes a big part of their underlying profit.

If you always want the best deals and values you need to constantly keep switching your service provider to get those new customer deals. It works for most services in a competitive environment (tv, broadband, mobile, insurance, prior to the energy crisis the energy market as well).

[PandJ2020]

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@MarkGoldsmith wrote:

It because the cost of obtaining a new customer is more expensive than retaining existing customers

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indeed, but it seems many providers don't want to keep existing customers and give the best deals to new (expensive to obtain) ones...

[MarkGoldsmith]

That's because once they have obtained you they rake in the money due to retention and renewal rates generally being quite high. That's the reason they want to attract new customers and concentrate on that. Once they get a customer in on a cheap deal for 18 months the majority end up renewing for another 18 months, then again 18 months later. These renewals then become "cheap" for sky.

the model would only change if the majority of customers did a ditch and switch to other services every 18 months at the end of contracts but that's not how the majority of the customer base works.

[PandJ2020]

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@MarkGoldsmith wrote:

That's because once they have obtained you they rake in the money due to retention and renewal rates generally being quite high. 

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Yup, that's probably true but I think things are changing...  I've always negotiated a great rate and have actually cancelled to get it.  But if that door is closed I will walk at least.