“An alarming 84% of American internet customers said the price they paid for the internet or related service rose last year, and 59% say they felt misled by the pricing or terms of their plan, according to Review.org’s recent Consumer Trust Survey. The survey polled 1,001 Americans about their internet service. [telecomp]
Broadband prices went up on average $20.78! More than half were shocked by fees and taxes, including equipment rental fees and non-promotional pricing jumps!
It is all about arbitrage. Get them in with a special price. It expires without any notice. The price jumps. Most won’t call so that is the win.
The few that do call in, know they have to play the game. We all hate the game. We hate spending 20 minutes on the phone to roll back that $10-20 per month price jump.
It is these tactics that dilute your brand.
As competition in broadband heats up, these tactics won’t work any more.
The price of CAC (customer acquisition) will increase and the cost of retention will increase. Good luck with profitability that way.