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.
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.
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.