You must log in or # to comment.
Having to switch services every year seems to be the way these days.
I think it’s designed that way because Sales VP’s get bonuses based on new sales, not retention.
So there is an unspoken market force that causes service companies to churn customers. Senior executives want you to leave because the competition is doing the same thing.
All competing companies sales teams benefit from churn as long as all companies work to alienate their customers and make them switch services.
When I ran an isp I had a customer complaint about new sales being cheaper than loyal customers get forwarded to me. I realized my mistake and cut prices across the board so loyal customers paid the same as new promotions. But very large companies are an old boys club. The CEO isn’t going to piss off his VP of sales so the game goes on.
That makes way too much sense.
The infinite growth mindset is the root of all evil
At least with telecoms speeds are fast enough now (in my area)that it just doesn’t matter which provider I use so I always go with the discount guys now and its great.
Nowadays reliability and coverage is actually the selling point.
They may all have enough speed, but usually the expensive ISPs are more reliable. Mostly because the "cheap ISP"s are just the expensive ones in a trenchcoat selling excess bandwidth. But when the excess bandwidth is no longer excess, the cheap ones are the first to be cut off.
So if you don’t need 99.99…% uptime, the cheap ones are much better.
This also works for Employees.
"I’ve been here 15 years. Can I get paid what the new hires get?
“Oh fuck no. No no no. Can’t believe you would ever suggest that.”
We made a spreadsheet at my job, and found an occurance of this. Brought it up to my manager. He seemed to agree, generally he’s a cool guy imo, but I have yet to see a change in my compensation.
It’s unlikely that your manager determines your pay rate and raises. That’s usually decided well up the chain.
Yeah, for sure. I’m not blaming him, to be clear.
Change job all few years.
Never understood this. Study after study tells us how much more it costs to find a new customer, instead of retaining an existing one.
same with employees
It costs more, but those are indirect costs associated with marketing. Most executives only look at sales and expenses and don’t think in indirect costs, regardless of how many business people try to explain. So the costs are marketing, we either cut the costs or we cut the budget, but not change what we are doing. Or they don’t care, because of the above collusion mentioned in another comment, or because they want to spend on marketing for their golf buddy, the marketing CEO.
Does it drive me insane, as someone who has a marketing and accounting degree, and had to explain it a bunch of times? Yes. Also most high level executives make up a fantasy version of how the business is being run and feel anyone who doesn’t agree is inherently wrong.
Profit graph needs to go up or stakeholders get mad.
deleted by creator
As a programmer with more than a decade of experience, I got a variant of this principal watching newly-minted and utterly useless CS graduates get hired with a salary higher than mine. Only remedy was to quit and go work somewhere else.
In the software industry you’re supposed to go get a new job every year or two until you’re making what you want. That’s how you get raises. It’s dumb.
Don’t know how that happened but my bill keeps decreasing and they just gave me an extra 25g of data so I now have 110g for 25$+tx 🤷 I’ve been with the same provider (Koodo in Canada) for years and change plan to get a better one every now and then but it’s usually more data for the same price and I’ve got a 20$ rebate on every bill for some reason…
The reason some companies do this is because they make a loss on every new customer offer they give out, but it’s designed to just get their custom in the first place. If they offered the same discounts for existing customers, they would go out of business.
Though if you hassle them enough, you can get something close to a new customer offer.
