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How can they do this?

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Last year, our mobile contracts were due to finish. Thats 2 contracts @ £25 per month each. CPW kept calling us and we kept telling them that we wanted to go pay as you go. To cut a long story short (to late :D) they put us through to O2 and they said, as we had been with then 5 years, they would put £300 into each account to cover the next 12 months @ 73 mins of calls and 150 text per month. The reason they said was, it would cost them to much to disconnect the phones!

This year, joy of joy, same situation, only they have given us rolling contracts (we can end anytime) @ £10 per month each, with 150 free calls and £300 texts each.

So How can they afford do this. BTW, not complaining.

Comments

  • mobilejunkie
    mobilejunkie Posts: 8,460 Forumite
    They didn't put you through to O2. You're dealing with cpw and this is standard practice (look up cpw retentions thread on here - it's been going for years).
  • The people who called you are a sales team, they put you through to O2 Carphone Warehouse (the department of CPW that manages some customers O2 accounts). They have more authority than the standard sales team and can offer loyalty discounts.

    I guess the way they look at it is a happy customer who doesn't make them much money is better than customer leaving (which makes no money)
  • Reeves
    Reeves Posts: 202 Forumite
    Part of the Furniture Combo Breaker
    I guess the way they look at it is a happy customer who doesn't make them much money is better than customer leaving (which makes no money)

    Which incidentally is the completely opposite approach currently of O2 who seem to value Iphone customers more than loyal lower tariff customers when it comes to retentions .. but I do notice on many threads the amount of people threatening to leave their network for another due to poor retention offers seems to have increased lately.
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