They Want Me Back But It’s Too Late

by Barry Moltz on June 27, 2010

I just left and now they want me back.  It doesn’t make me feel popular, just mad.

After 10 years, I left as my registry agent for all my sites last week because I was tired of paying $35 per year for each URL instead of the $10 per year that GoDaddy charges (and it doesn’t even have anything to do with Danica Patrick).  I was sick of wasting $25 a year for the same service.  I informed and like so many other companies (like Vonage), they offered me a deal to stay:

“We are saddened to see you go and would like to offer you an exciting offer to remain a customer.  Renew for only $15.95 when you use Invitation Code: RENEWEDX today.  Doing so will provide you with peace of mind that your domain name is safe with a company that offers free live phone support 24/7 and is here to help you build your business online.”

Why didn’t you cut my price when I was a loyal customer for 10 years?  Why did you charge me double what the street price was for registration instead of the market price?  Were you trying to milk me as a lazy customer?  Guilty as charged!

One of my pet peeves in customer service is when I leave a company and they then offer to cut their price to keep me.  This makes no sense at all.  I understand why they offer special deals to new customers (to get them to switch), but why offer me a discounted price when I leave?  It just makes me angry!

It is a hard thing to do, but we need to offer our customer market rates on our services and products.  If you try to “milk” them at a higher price without adding more value, they will leave you…and there will be nothing to you can do to get them back!

Has this happened to you?  What do you think of these tactics?

{ 5 comments… read them below or add one }

Mike Maddaloni - @thehotiron June 28, 2010 at 6:42 am

Hi Barry – didn’t offer you a lower fee because they didn’t feel they had to! In the early days, it was just Network Solutions offering domain names. Then along came Most large corporations registered their domains through one of them, and there was no business reason to move them, so they didn’t, and kept raking in the money.

Along came the lower-cost registrars. The likes of NetSol and did absolutely nothing to justify their costs, hoping instead to hold onto their existing customers. Slowly, they are failing.


Barry Moltz June 28, 2010 at 10:38 am

You are correct..this is exactly the situation!

Josh Kerbel June 28, 2010 at 12:35 pm

This is the trap of any business model that has driven itself to a commodity and the only thing they have the creativity to come up with is discounting price to retain customers. Lots of companies are guilty of this. My bank offers new customers a computer or an ipod to switch accounts……I have been with them since I was 13………..all I get is junk mail

As a consumer, you can use this to your advantage sometimes. Go to a website, add a few things to a cart and leave it. Then watch the offers come in. These offers are driven by a combination of a poor understanding of the company’s marketing metrics (typically not measured properly) and a poor understanding of how a products value is impacted by discounting – not to mention how consumers feel when they have been overpaying.

For a company like Register, they would be better off by offering you to double your subscription length for no additional cost – its an effective 50% discount, but most people dont think about the math

Jack Macholl June 28, 2010 at 3:32 pm

This story you share is very common these days. AT&T is famous for coming up with these “exciting offers” when you are considering leaving.
GoDaddy has done a great job for my company for many years now-consistent pricing and from my vantage point excellent customer service personnel (US-based in Arizona). I suppose the Register.coms and others capitalize on lethargy. They need to make BAM! required reading. Best,

Barry Moltz June 28, 2010 at 7:53 pm

Jack and Josh- great comments! I think it comes with laziness that we do not continue to think about how we can delight our current customers!

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