Sunday 24 April 2022

Gotta love Kogan marketing to its 'loyal customers'

My 12 month prepaid mobile phone plan was due to expire in a few days, so my plan provider Kogan conveniently sent me a 'special offer' via SMS. I simply had to reply with coded "PROMO" to get 180GB (15 GB per 30 days) for 'only' $175.

However, being a suspicious person (and having had really poor/dodgy customer service from Kogan previously) I logged in to my Kogan account to see what standard plans were currently available. Turned out I could get a 200 GB (17 GB per 30 days) for $150 as one of their standard offerings.

So the special "SMS promotion" was to pay $25 more and get 20GB less data allowance. Wow!

Conventional marketing theory is that it costs a lot more to gain a new customer than it does to retain an existing customer, hence the typical discounts offered to existing customers to stay with their current provider (the only normal exceptions to this marketing 'rule' appears to be banks, electricity and insurance companies, who often offer special 'honeymoon' rates to attract new customers, but then charge existing customers full ticket price to renew - the assumption being that many customers are too lazy (or the comparisons too complex) to bother switching to a new provider). Kogan appears to have taken this assumption to a whole new level by not only charging existing customers the full normal price for renewing, but to send them a 'special offer' that will actually cost them more than normal!

Subscribe to Enough Wealth. Copyright 2006-2022

No comments: