Loyalty reward system...

[Necuno]

today i had the pleasure of actually feeling like i want to go back
to a certian store and continue to shop with them.

my purchase was fully refunded - what a nice way of saying "thank you for supporting us, we want you to come back again"

a similiar thing amongs isp's would be nice. 2/3 customers recieves their
adsl for the month for cheaper, uncapped them or bump them up - just because they are supporting that particular isp.

maybe after X amount of months you have a free month !!!
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anyways my 2.99c for the day.

 

[bullfrog]

I don't think the same thing would quite work with adsl. The reason I say this is that I believe that the profit on adsl accounts are quite low. So giving a client a free month after he's been with you for a year might not be a very good plan, depending on what you make on an account. That's by what I've heard about adsl accounts and I don't sell them, so don't take my word for it

 

[Necuno]

true enough, but the question then is:

are you just another money farming util for them ?

 

[bullfrog]

I am in no way affiliated with any adsl isp's. I don't work for any adsl isp, am friends with an owner etc.

What I've said above is just my understanding of business. If you make R10 profit on a R100 package and you start giving one month free for every year, then your profit for that year will be:

(R10*11)-R90 = R20 profit/annum per client.

Now considering that most isps work on volume to profit, they would need a HUGE amount of clients to profit at all. Then they also have to hire support staff and pay various other expenses. So if you find an isp that does offer such a thing, they would either have to charge quite a bit more per month for their accounts, or won't be open for very long.

 

[Necuno]

i suppose so but

if for example 512k express was

R1026 (cost from IS)
+14% vat
------------
=R1169.64
+17% markup
-------------
=R1368.4788

R1368.4788
-R1169.64
------------
-R198.8388 (profit)

...which is more than R10 per account

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i understand what you mean. my point is just this that we (the customoers) fork out alot for adsl in this country and somestimes it would be nice to feel like you arn't just another debit order...

 

[bullfrog]

somestimes it would be nice to feel like you arn't just another debit order...

I have learned that if a business can master that, that it will be very successful. As for the reward system, that is one way of accomplishing that, but there are many other ways to make clients feel special. Some that are even more efficient and cost a lot less.

There are many simple ways of making clients feel special, like sending out birthday cards or special holiday cards. Even things like phoning the client and asking how the service is and if they're happy with it. The only problem is that these things, no matter how cheap, become harder to do as you grow. But it can be done, even if you are big. It's definitely a thing that is overlooked in many businesses, that can be very effective in keeping a client happy and loyal. I would suggest to any business that they should implement something of the sort and make it a part of your advertising budget.

In some industries a reward system will just never work, but there will always be other ways to keep a client happy and make them feel special

 

[Necuno]

I have learned that if a business can master that, that it will be very successful. As for the reward system, that is one way of accomplishing that, but there are many other ways to make clients feel special. Some that are even more efficient and cost a lot less.

There are many simple ways of making clients feel special, like sending out birthday cards or special holiday cards. Even things like phoning the client and asking how the service is and if they're happy with it. The only problem is that these things, no matter how cheap, become harder to do as you grow. But it can be done, even if you are big. It's definitely a thing that is overlooked in many businesses, that can be very effective in keeping a client happy and loyal. I would suggest to any business that they should implement something of the sort and make it a part of your advertising budget.

In some industries a reward system will just never work, but there will always be other ways to keep a client happy and make them feel special

agrees

 

[HellTel]

I am in no way affiliated with any adsl isp's. I don't work for any adsl isp, am friends with an owner etc.

What I've said above is just my understanding of business. If you make R10 profit on a R100 package and you start giving one month free for every year, then your profit for that year will be:

(R10*11)-R90 = R20 profit/annum per client.

Now considering that most isps work on volume to profit, they would need a HUGE amount of clients to profit at all. Then they also have to hire support staff and pay various other expenses. So if you find an isp that does offer such a thing, they would either have to charge quite a bit more per month for their accounts, or won't be open for very long.

I truly hope that those figures are just an example .. or do you really believe that? .... ISP's make enough profit, or else there would not be any competition and the beast would be the only ISP around ...

What is loyalty in a 3rd world country whereby everyone is trying to screw everyone else? ....

 

[Syndyre]

I have learned that if a business can master that, that it will be very successful. As for the reward system, that is one way of accomplishing that, but there are many other ways to make clients feel special. Some that are even more efficient and cost a lot less.

There are many simple ways of making clients feel special, like sending out birthday cards or special holiday cards. Even things like phoning the client and asking how the service is and if they're happy with it. The only problem is that these things, no matter how cheap, become harder to do as you grow. But it can be done, even if you are big. It's definitely a thing that is overlooked in many businesses, that can be very effective in keeping a client happy and loyal. I would suggest to any business that they should implement something of the sort and make it a part of your advertising budget.

In some industries a reward system will just never work, but there will always be other ways to keep a client happy and make them feel special

Yeah its the small things that usually stand out and impress me.

 

[bullfrog]

I truly hope that those figures are just an example .. or do you really believe that? .... ISP's make enough profit, or else there would not be any competition and the beast would be the only ISP around ...

What is loyalty in a 3rd world country whereby everyone is trying to screw everyone else? ....

I was using R100 so as to better illustrate the percentage of profit isps make on their adsl accounts. But yes adsl isps do make a very low percentage of profit per account and try to go for more volume.

I will try find out exactly what the cost price is from both IS and SAIX, so as to better illustrate my point. But I can tell you that some of the cheaper isps make 10% or less profit on their normal accounts.

 

[bullfrog]

I've received IS's price list. It seems that the percentage profit differs heavily based on what size account you take and where you get the account from.

Unfortunately due to some legalities, I won't be able to make the prices public knowledge.

But I can tell you that the isps make quite a small percentage of profit, excluding support costs. So once you bring support staff costs into it you don't have much profit to work with! As the isp gets bigger it might start making more profit, but to maintain good service, they will also have to hire more support staff.