More information about the Underscore mailing list

[_] Save Money on Broadband

Richard Dennys richard.d at
Fri Jul 2 15:32:05 BST 2010

> It is really sad that companies do not reward existing customers for
> loyalty but you can save quite a bit of dosh if you phone them up and
> threaten to leave.
You are right, but this approach is called "Inertia Marketing" where a
company makes most of its profits from the laziness and/or ignorance of its
customers. You will find it anywhere that takes a monthly payment. You have
an acquisition team (join us) and a retention team (don't leave us).

In fact many SaaS models are now based on some form of this. I recently had
lunch with a senior guy from google who told me they make 80% of their real
profits from the 20% of customers who overpay on their adwords cos they
don't know what they are doing but are too scared to stop spending.