Eon - Customer loyalty??
Comments
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Switching between different Eon tariffs doesn't attract any early termination penalties- they only come into play if you switch to a different supplier while in contract.
I thought this thread was about juicy tariffs only available to NEW customers?
If E.On can get away with it this time, the concern is they will carry on barring existing customers.0 -
Would anyone have any suggestions how E.on could earn the trust of their existing customers and earn a fair profit ?
14 March 2012, Dr. Tony Cocker, CEO of E.ON UK, said: "As CEO my main priorities are both to earn the trust of our customers and to earn a fair profit because I recognise that in the long term no company can be sustainable without both. We understand that our customers want to know they are paying a fair price for the energy they buy from us.......”0 -
What is the minimum amount of time one needs to stay with a given Energy supplier before you can change again?
Say one leaves E.on for, as example, npower and you go on one of their "no exit fee" rates (to keep this example easy, let us say Standard rate).
If the minimum time to stay with a company before you could change again were 30 days, on the 13-14th day one could arrange a switch back to E.on (and be eligible for a NEW CUSTOMER rate) - as the switch would take 17 days, you would have stayed with the "new supplier" (Npower in this example) for the minimum 30 days.
Perhaps the E.on reps could let us know what the minimum time period is to stay with a new supplier.
While not ideal - might be away around the "new customer only" tariffs that are being introduced.0 -
merchcon55 wrote: »What is the minimum amount of time one needs to stay with a given Energy supplier before you can change again?
Say one leaves E.on for, as example, npower and you go on one of their "no exit fee" rates (to keep this example easy, let us say Standard rate).
If the minimum time to stay with a company before you could change again were 30 days, on the 13-14th day one could arrange a switch back to E.on (and be eligible for a NEW CUSTOMER rate) - as the switch would take 17 days, you would have stayed with the "new supplier" (Npower in this example) for the minimum 30 days.
Perhaps the E.on reps could let us know what the minimum time period is to stay with a new supplier.
While not ideal - might be away around the "new customer only" tariffs that are being introduced.
I don't think there is a minimum time you need to stay with a firm. When rewards for switching were higher people used to post on here about how much money they made switching several times a year.
Some firms like Sky who offer huge discounts as an inducement for new customers, won't allow ex-customers those terms.(so I am told) It may well be that Eon will apply the same principle0 -
I just cannot understand the benefit for suppliers with the new customer only tariffs, can someone please explain the logic of it all to me, below is my rather simplistic view about it.
Taking myself as Mr Average if I were to become a new E.on customer on the Saver Fixed 1 Year v2 tariff my bill for the next year would be £830 E.on says they make 4.7% on residential customer bills so their profit would be £39
According to the Cheap Energy Club energy suppliers pays them £60 for a new dual fuel customer, so in year one E.on would make a potential loss of £21 on every new dual fuel customer.
Being an existing E.on customer the cheapest tariff available to me next year would give me a bill of £1125 giving E.on a potential profit of £53 but because of the disparity in the tariffs I will leave E.on (along with many others) so their profit from me becomes ZERO
People might argue that the profit for the power companies will come in year two and onwards from their new customers but all these new customers are very savvy, next year when their tariff will increase nearly all will be off to a new cheaper supplier so ZERO profit for E.on.
Surely this has got to be a lose lose situation for E.on? or is their 4.7% customer profit margin figure far from the truth?0 -
I just cannot understand the benefit for suppliers with the new customer only tariffs, can someone please explain the logic of it all to me, below is my rather simplistic view about it.
Taking myself as Mr Average if I were to become a new E.on customer on the Saver Fixed 1 Year v2 tariff my bill for the next year would be £830 E.on says they make 4.7% on residential customer bills so their profit would be £39
According to the Cheap Energy Club energy suppliers pays them £60 for a new dual fuel customer, so in year one E.on would make a potential loss of £21 on every new dual fuel customer.
Being an existing E.on customer the cheapest tariff available to me next year would give me a bill of £1125 giving E.on a potential profit of £53 but because of the disparity in the tariffs I will leave E.on (along with many others) so their profit from me becomes ZERO
People might argue that the profit for the power companies will come in year two and onwards from their new customers but all these new customers are very savvy, next year when their tariff will increase nearly all will be off to a new cheaper supplier so ZERO profit for E.on.
Surely this has got to be a lose lose situation for E.on? or is their 4.7% customer profit margin figure far from the truth?
These days no company can lie and get away without being called to task. Albeit they can phrase statements that can be 'misunderstood'.
Your assumptions are incorrect in the above quote. Eon have not said they make 4.7% profit on every customer's bill. On some bills they will be making a loss and on others way more than 4.7%.(20%??)
Like all other companies they quote their profit margin as a percentage figure on the revenue raised. i.e. for every £1,000 collected their costs are £953 and profit £47.0 -
I just cannot understand the benefit for suppliers with the new customer only tariffs, can someone please explain the logic of it all to me, below is my rather simplistic view about it.
Taking myself as Mr Average if I were to become a new E.on customer on the Saver Fixed 1 Year v2 tariff my bill for the next year would be £830 E.on says they make 4.7% on residential customer bills so their profit would be £39
According to the Cheap Energy Club energy suppliers pays them £60 for a new dual fuel customer, so in year one E.on would make a potential loss of £21 on every new dual fuel customer.
Being an existing E.on customer the cheapest tariff available to me next year would give me a bill of £1125 giving E.on a potential profit of £53 but because of the disparity in the tariffs I will leave E.on (along with many others) so their profit from me becomes ZERO
People might argue that the profit for the power companies will come in year two and onwards from their new customers but all these new customers are very savvy, next year when their tariff will increase nearly all will be off to a new cheaper supplier so ZERO profit for E.on.
Surely this has got to be a lose lose situation for E.on? or is their 4.7% customer profit margin figure far from the truth?
The benefit is in the mix of types of customer they have across tariffs. It means that they keep all those customers who can't be bothered to switch often (ie the profitable ones) and those who are price conscious will leave (mainly unprofitable ones).
The new customers who join on the exclusive tariff are an unknown and likely a mixture of customers who will bother to leave afterwards and those who won't but overall, the proportion of less frequent switchers will be higher.
Looking at profit margins for an energy company, customers who switch annually onto cheap tariffs through comparison sites with commissions must be a loss to the company so they're as well to be rid of them from a bottom line point of view. Maybe it's particularly shrewd, if you're a frequent switcher and you're so annoyed by this that you'll never go back to Eon or whatever, that's probably even better for them! The longer term impact of any reputational damage is a separate issue.0 -
Overall I would have thought that there would have been a slight shift towards the more unprofitable customers, lose some profitable ones, lose some unprofitable ones, gain more new unprofitable ones.bumpercars99 wrote: »The benefit is in the mix of types of customer they have across tariffs. It means that they keep all those customers who can't be bothered to switch often (ie the profitable ones) and those who are price conscious will leave (mainly unprofitable ones).
Sorry I have to disagree, all of the customers gained on the new customer tariffs have come via a price comparison site (the only way to get the tariff) and as such are savvy and well aware of the energy suppliers tactics so 99% of them will most probably leave when the tariff ends, I still believe that all the suppliers offering the new customer tariffs have shot themselves in the foot profitwise.The new customers who join on the exclusive tariff are an unknown and likely a mixture of customers who will bother to leave afterwards and those who won't but overall, the proportion of less frequent switchers will be higher.
I can't argue with any of that, as for me I have said before that it would have to be an extra special deal from E.on for me to even consider ever going back, as a company I now see E.on as devious, untrustworthy and unfair, will my new supplier be any better, I doubt it but at least they will save me £300 over the next year.Looking at profit margins for an energy company, customers who switch annually onto cheap tariffs through comparison sites with commissions must be a loss to the company so they're as well to be rid of them from a bottom line point of view. Maybe it's particularly shrewd, if you're a frequent switcher and you're so annoyed by this that you'll never go back to Eon or whatever, that's probably even better for them! The longer term impact of any reputational damage is a separate issue.0 -
I can't argue with any of that, as for me I have said before that it would have to be an extra special deal from E.on for me to even consider ever going back, as a company I now see E.on as devious, untrustworthy and unfair, will my new supplier be any better, I doubt it but at least they will save me £300 over the next year.
I suspect that EON were just too successful at picking up the serial switchers -looking back, I "switched" internally with EON 6 TIMES after first signing up via MSE in Dec.'14, each time (bar one) via an external site. Therefore they have probably got a much higher %age of our "group" than other Utility Cos.
So the EON board have decided to rebalance by getting shot of some of us. My tariff runs til mid March and there was at least one further good switching site offer after that, so I'm not expecting EON to be competitive for me anytime soon.:)0 -
Didn't know this thread was here, but just to add my groat...
Firstly, why do E.on make it so difficult to find a usable phone number on their site?! It's almost as if they don't want to talk to cutsomers?!
I'd found this eon saver plus plan mentioned on a couple of minor comparison sites (no sign of it on Cheap Energy Club?) and so phoned E.on up.
After holding to a variety of scratchy music - really - I eventually chat to a a guy who's name I didn't catch but could only offer the 3 tariffs on line, and really didn't care what I did!
So, another customer lost.
I also run money saving sessions in the local village hall, usually about once a quarter - guess who's gonna be mentioned in dispatched, rather than dispatches!!
Any suggestions for East Midlands leccy? Sorted for gas!4kWp, SSE, SolarEdge P300 optimisers & SE3500 Inverter, in occasionally sunny Corby, Northants.
Now with added Sunsynk 5kw hybrid ecco inverter & 15kWh Fogstar batteries. Oh Octopus Energy too.0
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