I don’t understand the thinking of some companies when it comes fees, especially unexplainable fees. Extra fees are a sure fire way to fire your customers. Badger me with fees and I will walk away every time.
For more than 60 years, the airline industry baked into the cost of a plane ticket the expense of baggage handling. You purchased the ticket and there were various services built in ( food, drinks, baggage handling, fuel, etc). Last year most of the major airlines departed from this pricing model and started charging baggage handling fees. Pay $400 for a round trip ticket and plan on another $50 at the counter to check a bag.
My 14 year old daughter recently went on a school trip to Washington DC and I had to remind her of the $25 bag fees on the out bound and return trip. It was a hassle to have a 14 year old remember this and I would have gladly just paid another $50 for the ticket and not had to worry about the transactions and headaches at the counter at each airport. Thanks Airtran for trying to fire me as a customer. Who needs more headaches? So I select the airlines without extra fees… I fly Southwest Airlines all the time. They get it and therefore, they get my money.
My mobile communications company, T-mobile decided to try and fire me as a customer this past month after 9 years as a customer with their own version of nonsense fees.
My dear sweet wife accidentally dropped her Blackberry into a cup of water while carrying a basket of laundry… don’t ask how that happens. Blackberry’s and water don’t mix.
I called T-Mobile and order her a new Blackberry and they charge me $18 for an “upgrade fee”. I questioned the need for an upgrade fee when we did not change service, did not change plans, (actually renewed the contract for another two years as she was eligible for new equipment if we renewed) and bought her the exact same Blackberry that she had just drowned. There was no evidence of a upgrade anywhere. I just bought a phone and renewed my contract. The wonderful folks at T-Mobile tried every angle in the book to justify the upgrade fee when there was no upgrade. Who is running their marketing department? These unexplainable $18 fee is customer retention prevention at it’s finest. I wondered out loud to the customer services reps if they had hired their marketing team from the major airlines?
Customers, members and partners don’t need hassle. I would have gladly paid $18 more dollars for the Balckberry if those fees were hidden in the cost of the unit.I spent more time then I care to share with you on the phone and after 3 levels of customer service folks and threats to take my business to another carrier, they credited me the $18. T-mobile spent more money argueing with me over $18 and created a pile of ill will.
Fees are just hassle and just a way to alienate those who keep you in business.
Stay connected to your customer, members and partners by including minor fees in the cost of your goods and services. Everyone will be happier in the end.
Stay connected.
I wish I could recommend a wireless carrier that doesn’t do this but I’ve never found one. I’ve had Qwest for years because my credit isn’t good enough to shop around and I can’t tolerate the hassle. But this isn’t to say they’re great or anything. They brought in Verizon as our new carrier and I actually miss my old cell phone.
I used AT&T about seven years ago and had problems with them too.
We sell a $25 item that is reasonably essential. The average lifetime revenue from our customers is $4000. There are many competitors always waiting to gather up any customers we fire. I know this because we acquire the ones they fire.
The moral of the story? Why bother being in business if you can afford to fire $4000 customers?