Dream Promotion!?

[AnthroMatt]

How's this: "Switch to (insert provider name here) and we will pay your ETF with your existing company!*"

*-if you terninate service with us within 1yr/2yrs you will be charged a $150 ETF PLUS be required to repay us for the amount of the ETF we posted for you.

[img]i/expressions/face-icon-small-smile.gif[/img]

[pjrivera03]

NICE Idea, that would be a promotion i would definitly like to see in about 8 months, lol, when the new moto T606 or audiovox 8600, or some other similar phone comes out.

[Zackomatic]

I like the way you think!

I really can't see why someone hasn't picked up on this, other than the old tit for tat. For the sake of argument, I am Verizon, and I decide an awesome promo would be "we'll pay your moving costs" fine print "we will pay, during the limited time promotion, ONE (1) early termination fee for the carrier you currently have service with(up to a maximum of $200) when you sign up on a new two year plan of $xx or higher with us.

Now pretend you are the other carriers out there, and you see that this promo is impacting your subscriber base, how long before you launch a similar or same program?

Someone with a Marketing background, preferably in the wireless industry, chime in here! Tell me what's wrong with this idea?

[AnthroMatt]

Originally posted by: Zackomatic
I like the way you think!

I really can't see why someone hasn't picked up on this, other than the old tit for tat. For the sake of argument, I am Verizon, and I decide an awesome promo would be "we'll pay your moving costs" fine print "we will pay, during the limited time promotion, ONE (1) early termination fee for the carrier you currently have service with(up to a maximum of $200) when you sign up on a new two year plan of $xx or higher with us.

Now pretend you are the other carriers out there, and you see that this promo is impacting your subscriber base, how long before you launch a similar or same program?

Someone with a Marketing background, preferably in the wireless industry, chime in here! Tell me what's wrong with this idea?

That was my thinking as to the only potential problem with this...that's why I added that "penalty" clause if you cancel after whatever provider paid your ETF, as that would seem to be the only way to keep people frmo switching service every month, especially with number portability on the horizon.

[wyldekard]

This might not end up as a dream. The attorney general of the state of Iowa has sued USCC and a couple of it's subsidiaries charging that the practice of charging customers "damages" of $150 or more for leaving their service and other things in the fine print of a cellular contract is against consumer protection laws in Iowa.

The case I found is where USCC sued the attorney general back for doing his job as administrator of the Iowa consumer credit code. The United States Court of Appeals for the 8th circuit got involved to settle some things about the original cases. That was just about a year ago. I haven't had time to find out any more information.

If you have ever read the fine print on the back of a cellular service contract, it pretty much says you have to pay whether or not the company provides acceptable service, or any service at all, and the customer agrees to have no recourse. If you decide not to pay for unacceptable service, or no service, you agree to be sued or subject to arbitration. If anyone actually read the small print, or cellular companies actually enforced all the fine print, no one would sign a cellular contract.

It is just possible though, if the Iowa attorney general wins, that the terms and practices we are all forced to agree to if we want cellular service will be thrown out and something that is fair to both sides will be put in it's place. We can only hope.

[Phony]

Sounds great but I don't know if the financials can support. $150 etf+$xxxxhandset subsidy+$commissions+$overhead=too expensive??? Your acquisition cost is going the wrong direction with that type of promotion. The acquisition cost is too high unless you lock someone into a higher tiered rate plan for 24 months then you might make a case but that's not targeting a general market. I guess it could make sense through an e-site or a b2b because your overhead is lower but kinda tough at retail.

[AnthroMatt]

Who said anything about subsidized handsets? [img]i/expressions/face-icon-small-wink.gif[/img]

But I agree with the points to you make, thats why, alas, it is just a dream Perhaps a GSM provider could pull it off if people could use their old handsets with a new SIM card?

[Phony]

Who knows you might be onto something if they keep their handset. We could see this type of promotion further on down the road.

[AnthroMatt]

Well, let me just state for the record that if this promotion comes out it is my intellectual property and I am owed $$$ [img]i/expressions/face-icon-small-smile.gif[/img]