Broadband 'loyalty penalty' super complaint received by UK Govt

Quote:

---

Originally Posted by DanceswithUnix

I suspect that banning a "loyalty penalty" will mean banning initial offer pricing, not the higher end price, so you just go straight to the pricing after 12 months. I think people should be careful what they wish for.

---

And that price would be able to be compared more accurately with competitors I expect, so if competition is working, would be driven down to a sensible margin rather than making high margins off non-movers to be able to subsidise initial offers.

IPSA says that it is worried that Citizens Advice talking about a 'loyalty penalty' conflates customer loyalty with ill-informed or unengaged customers

Absolute twaddle, they know they are fleecing existing customers to subsides new ones, and now that the powers that be are having a good hard look, they are to put it blunt, <removed> scared that the cash cow wlll end and that they will be forced to offer the same prices to existing customers or stop subsidising new ones and risk a drop in new business, resulting in their market share dropping and shareholders revolting. Biggest loser will be Virgin Media, as this is their bread and butter way of price gouging !

Quote:

---

Originally Posted by Wolfclaw

IPSA says that it is worried that Citizens Advice talking about a 'loyalty penalty' conflates customer loyalty with ill-informed or unengaged customers

Absolute twaddle, they know they are fleecing existing customers to subsides new ones, and now that the powers that be are having a good hard look, they are to put it blunt, <removed> scared that the cash cow wlll end and that they will be forced to offer the same prices to existing customers or stop subsidising new ones and risk a drop in new business, resulting in their market share dropping and shareholders revolting. Biggest loser will be Virgin Media, as this is their bread and butter way of price gouging !

---

But if customers moved to take advantage of the incentive sign up, then that strategy wouldn't work :). And incentives are offered in all other aspects of commerce - Buy one get on free offers for example, or dscount coupons for groceries. Should they be stopped too?


Wearing my admin hat - I have edited your post as you triggered the swear filter - I don't think the editing has materially altered the sense of your post.

The concept of loss leaders is nearly as old as retail itself. All it'll do is increase prices for everyone.

Even the Romans knew the truth: caveat emptor.

CMA is as teethless as 20yrs dog...essential services such as gas/broadband/mobile phone/electricity should be heavily regulated not run for profit by ruthless corporations that again and again come up with sneaky tactics to strip us out of money.

almost everyone feels this, some subscription services from non major companies do this as well (usually over long term contracts that where agreed upon over the phone)

I'll remember this when I leave sky. I mean, how hard can it be to remember to call a company at the end of a fixed duration contract? I'm told you'd have to be an idiot (thanks HUKD) to have problems with this.

Aren't folks nice!

Peterb hit the nail on the head with the smartphone calendar idea. Towards the end of my tenure with VM I was advising all customers that had any form of time limited discount to set a reminder for 30 days beforehand.

The problem lies in more than one place, incentive's for sales people invariably leads to customers not getting the full info if the sales person deems it harmful to their chances of making the sale. ie : not explicitly mentioning that the deal is for 12 months, but it also lies with consumers not doing their research and finding out where their money is best spent. I don't buy a kitchen appliance without referring to which? magazine, a car without doing a hell of a lot of research and at least a test drive nor would I get a contractor in without having some form of assurance of their competency, i don't see it being any different with broadband or other utility providers.


As far as loyalty is concerned, there is none. These are large faceless corporations (no matter who is fronting their adverts) to whom you are just a number, not your local grocer who went to school with your mum and throws in a couple extra tomatoes for the same price, treat them the same way.