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Originally Posted by Chrysalis
Here is what I noticed difference between ntl and adsl companies.
NTL = Free service period for new customers, heavy discounts to those who threaten to cancel. Loyal customers on top tier service price rise.
ADSL = Same price for all with odd special offer offering free activation, if the company can afford it they drop price for new and current customers.
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BT recently offered
FREE flights to Europe and the US to customers who signed up for one of its broadband packages. Destinations on offer included New York, Boston, Atlanta, Amsterdam, Barcelona, Brussels, Nice, Paris and Prague. This offer was only open to new BT broadband customers. Upgrading or downgrading from other BT products did not make existing customers eligible.
Most major ADSL ISPs offer discounted deals to attract and, if necessary, keep customers, although most will not publicly admit to the latter. BT Yahoo certainly do, as do Tiscali, Wanadoo & AOL. As well as offering heavily discounted deals to reduce churn, Wanadoo has also admitted that their £17.99 service is actually a loss leader.
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Perhaps ntl should adopt the second strategy, and stop throwing money away on people who cancel just to get discounts and new customers rather then customers who have been with them for a long time. if a customer has been with you for years are they more likely to be with ntl for 2 more years or new customers?
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New customers taking up a free or discounted deal take more services and pay more per month than the average customer. Oh, and they're apparently more loyal too.
NTL BOGOF early findings;
Adds:
45% of net adds took BOGOF
Churn:
4% lower than average customer
BOGOF anniversary in not driving incremental churn post month 12
Customer Value:
Higher than average triple play
30 per cent of BOGOF customers take triple play at point of sale.
Overall ARPU higher than average customer
70 per cent of customers remained dual or triple at end of 12 months, in line with ntl average