Strange EDF retention letter..

C_Mababejive

Why dont businesses ever listen to their customers?

My fixed price EDF was coming to an end.

I received some mailshots saying they would kindly transfer me to their blue promise deal.


I checked their fixed blue deal but found a better deal so initiated a transfer. The transfer is now complete and I'm with my new supplier.

Today i received a ..please dont go, we want you back type letter from EDF again extolling the virtues of their blue promise deal.

Nowhere on the letter could i see unit prices unless it was tucked away somewhere..

So listen up businesses of the world..the time to seek to retain customers is before they leave..not after they have left..simples..

matelodave

I had the same with Scottish Power, "please stay, we've got great deals" after the switch had been completed. had they offered me the "great deals" when I spoke to them before I switched I might have stayed.
Surely it's cheaper to retain a customer than to faff about losing him to try and get another. It's become a game of musical chairs.

Bluebirdman_of_Alcathays

I'm afraid it's simply much cheaper to roll a customer onto a more profitable deal and worry about the tariff tarts later. This isn't unique to the energy industry. Even the car insurance game, where consumers are far far more likely to switch at the end of a tariff are finding it cost effective to continue with this tactic. When something like 2/3rds of the energy market don't bother to switch, is it any wonder we're in the state we're in.

2013yearofthehouse

I've got the opposite (well, sort of) problem - npower have been ringing me twice a day for over a week. I assume they are ringing to offer me a deal to stay with them (as my current plan ends soon), but the funny thing is, I haven't even tried to transfer yet! So all they're doing is making me what to leave more (I was always going to leave anyway, but they don't know that, unless they're psychic)! As bluebirdman says, you'd think they'd want to leave me alone to see if I don't leave and they can transfer me to a more expensive tariff.

Bark01

Bluebirdman_of_Alcathays wrote: »

I'm afraid it's simply much cheaper to roll a customer onto a more profitable deal and worry about the tariff tarts later. This isn't unique to the energy industry. Even the car insurance game, where consumers are far far more likely to switch at the end of a tariff are finding it cost effective to continue with this tactic. When something like 2/3rds of the energy market don't bother to switch, is it any wonder we're in the state we're in.

It’s illegal to roll anybody onto to a tariff that isn't the supplier cheapest evergreen tariff (although this is as you suggest is one of the highest priced tariffs). All the supplier can do is to point out that there are cheaper products they could sign up to.

The official product closure mailer is now highly regulated (as of end of March 2014) and suppliers are not allowed to use it for marketing purposes. They need to provide a personalised quote based on the customers annual consumption highlighting the cost over the next year if they do nothing and also tell the customer if they offer any tariffs that would be cheaper at that customers individual consumption. The end of product mailer has to land 40-49 days before the product ends so gives the customer plenty of warning.

Even if the customers roll onto a standard tariff there is a 20 days window after this has happened where if they signal the intent to change tariffs or move suppliers the old products prices can be held for up to 10 weeks in order to give time for the change to happen. This process happens automatically based on loss flows the customer doesn’t need to do anything extra.