[_] Save Money on Broadband
richard.d at digital-divinity.co.uk
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.