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Giffgaff's biggest gaff!

Richmc
Richmc Posts: 146 Forumite
Part of the Furniture 100 Posts Combo Breaker
There's uproar on the Giffgaff forum as they have upped their low usage goody bags cost by 20%! and for that they are trying to justify by increasing the number of free minuets, on a deal where most customers have minimum usage (I use less that 10 mins/month) so the extra time is useless.

I am like a lot of other of their customers are voting with their feet, I'm going to iD for £3.99/month. Giffgaff you really have cocked up big time. And it exposes the blatant lie that Giffgaff is run by it's users.

:mad:
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Comments

  • bigisi
    bigisi Posts: 925 Forumite
    I’m sure they’ll be devastated.
  • bigisi wrote: »
    I’m sure they’ll be devastated.


    I'm sure they will be if enough existing customers do vote with their feet.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I've no issues with Giffgaff, I have a lot of friends/family that also use Giffgaff so it hardly costs me anything.
  • Lol, use percentages so that it looks more dramatic and claim that everybody has the exact same usage as yourself.

    That's a whole £1 rise on the £5 goodybag and a whole fifty pence on the £7.50 goodbag (just 6.67% rise, wonder why they didn't use that as an example:) )

    As well as doubling the minutes in May coming they doubled the data on the £7.50 one just 9 months ago and the £5 one went up from 100Mb to 500Mb at the same time.

    Talk about self entitled.
  • Farway
    Farway Posts: 14,771 Forumite
    Part of the Furniture 10,000 Posts Homepage Hero Name Dropper
    I'm sure they will be if enough existing customers do vote with their feet.

    I'm not a customer, but this tactic is sometimes used to shake out the non profitable customers, the low use low payers clearing off may be part of a cunning plan
    Gardener’s pest is chef’s escargot
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 10 April 2019 at 10:56AM
    Richmc wrote: »
    There's uproar on the Giffgaff forum as they have upped their low usage goody bags cost by 20%! and for that they are trying to justify by increasing the number of free minuets, on a deal where most customers have minimum usage (I use less that 10 mins/month) so the extra time is useless.

    I am like a lot of other of their customers are voting with their feet, I'm going to iD for £3.99/month. Giffgaff you really have cocked up big time. And it exposes the blatant lie that Giffgaff is run by it's users.

    :mad:
    You were quite happy to have the extra data allowance back in July for no extra cost though.

    As with all price rises there's always going to be a few "outraged" customers.

    Also, if you barely use it then stop the goodybag and go purely PAYG.
  • Richmc
    Richmc Posts: 146 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    bigisi wrote: »
    I’m sure they’ll be devastated.

    Nice sarky comment!:T

    Yes they will be devastates as in three days nearly 2500 posts on the same thread are threatening to switch.
  • giraffe69
    giraffe69 Posts: 3,606 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Yes they will be devastates as in three days nearly 2500 posts on the same thread are threatening to switch.

    But how many will follow through especially if it is still a relatively ok deal after the increase?
  • Richmc wrote: »
    Nice sarky comment!:T

    Yes they will be devastates as in three days nearly 2500 posts on the same thread are threatening to switch.

    2438 posts doesn't equate to 2438 individual users, also not every single post by a long chalk is actually unhappy about it or even threatening to move.
  • Uxb1
    Uxb1 Posts: 732 Forumite
    500 Posts Third Anniversary Name Dropper
    Farway wrote: »
    I'm not a customer, but this tactic is sometimes used to shake out the non profitable customers, the low use low payers clearing off may be part of a cunning plan

    Maybe the Giffgaff cheapest offer was never profitable or ever intended to be so in the first place.
    Possibly it was always supposed to be a loss-leader to get subscribers in and then they do the usual corporate trick of increasing the prices. I did once hear that typically to this tactic 40% will leave and 60% cannot be bothered and stay.
    It then becomes a numbers calc as to how many stay at the higher prices to offset the loss of income from those leaving vs how much it now costs to service those remaining.. and you hope the overall result is a higher net profit

    Another tactic that might be happening is up-selling where by manipulating the offer/price of the lowest tier by giving it the biggest % increase you can entice people into paying more on a higher tier for more service which is not subject to such a large % increase.
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