Comments on: Reward your customers and save your reputation, the O2 way http://www.twofourseven.co.uk/blog/reward-your-customers-and-save-your-reputation-the-o2-way Hello. I'm Julio Romo, a London-based PR, communications and social media consultant. I am also a freelance journalist and advise clients across a range of sectors how to get their message across through traditional and digital media channels. Fri, 03 Sep 2010 15:16:46 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Robert Sharl http://www.twofourseven.co.uk/blog/reward-your-customers-and-save-your-reputation-the-o2-way/comment-page-1#comment-92 Robert Sharl Wed, 10 Jun 2009 19:06:59 +0000 http://www.twofourseven.co.uk/blog/?p=297#comment-92 As far as I know, the SIMplicity tariff is calls and SMS only. O2 charge extra for data, and the iPhone has all-you-can-eat data, plus visual voicemail. As iPhone users are big data consumers, I suspect that the £29 a month contract is pretty good value, in terms of what O2 normally charge, and that there isn't much slack in there. What I do think though is that iPhone customers are likely to turn out to be pretty loyal, given a good deal, and churning (and the discounts they have to offer to attract new customers) must be an expensive business, in comparison to giving potentially loyal customers a bit of a break. Perhaps they could offer us the option of extending our contract by 12-24 months, rather than paying our way out early and starting again? Personally, I'd rather just be able to pay what the hardware is worth and keep my current contract. I'm planning to buy the PAYG iPhone 3GS and use my current monthly SIM. I'll subsidise with the sale of my existing 3G, and in 12 months time when Apple update again, I can just upgrade (and sell the 3GS for a further subsidy). As far as I know, the SIMplicity tariff is calls and SMS only. O2 charge extra for data, and the iPhone has all-you-can-eat data, plus visual voicemail. As iPhone users are big data consumers, I suspect that the £29 a month contract is pretty good value, in terms of what O2 normally charge, and that there isn't much slack in there.

What I do think though is that iPhone customers are likely to turn out to be pretty loyal, given a good deal, and churning (and the discounts they have to offer to attract new customers) must be an expensive business, in comparison to giving potentially loyal customers a bit of a break.

Perhaps they could offer us the option of extending our contract by 12-24 months, rather than paying our way out early and starting again?

Personally, I'd rather just be able to pay what the hardware is worth and keep my current contract. I'm planning to buy the PAYG iPhone 3GS and use my current monthly SIM.

I'll subsidise with the sale of my existing 3G, and in 12 months time when Apple update again, I can just upgrade (and sell the 3GS for a further subsidy).

]]> By: Marcos Scriven http://www.twofourseven.co.uk/blog/reward-your-customers-and-save-your-reputation-the-o2-way/comment-page-1#comment-93 Marcos Scriven Wed, 10 Jun 2009 07:52:40 +0000 http://www.twofourseven.co.uk/blog/?p=297#comment-93 Hi there I support your cause, even though I'm out of contract (having bought a PAYG 3G iphone a while ago, and used it on T-Mobile) However, I don't see people backing this up with numbers which are there. I think the SIMplicity (SIM only) £20 tariff is directly comparable in quota terms to the £35 iPhone tariff. That essentially means you're paying £15 extra a month for the phone. Therefore, to get out of the contract, I expect it would be reasonable for O2 to ask for an extra £15 x remaining months, so they don't lose out on subsidy. For many early adopters this would be 6x£15 = £90 However, they are asking for 6x£35 = £210!! A premium of £120 over and above the actual subsidy. So when O2 say "look, we can't just cancel the contract early, we can't afford to lose subsidy", they are BLATANTLY lying. Unfortunately, I've not seen anyone say this to O2 on Twitter. Also, a lot of people are support O2 (why, are they lawyers?) because they believe this is only about subsidy. It's NOT! Spread the truth! Marcos Hi there

I support your cause, even though I'm out of contract (having bought a PAYG 3G iphone a while ago, and used it on T-Mobile)

However, I don't see people backing this up with numbers which are there.

I think the SIMplicity (SIM only) £20 tariff is directly comparable in quota terms to the £35 iPhone tariff. That essentially means you're paying £15 extra a month for the phone.

Therefore, to get out of the contract, I expect it would be reasonable for O2 to ask for an extra £15 x remaining months, so they don't lose out on subsidy. For many early adopters this would be 6x£15 = £90

However, they are asking for 6x£35 = £210!! A premium of £120 over and above the actual subsidy.

So when O2 say "look, we can't just cancel the contract early, we can't afford to lose subsidy", they are BLATANTLY lying.

Unfortunately, I've not seen anyone say this to O2 on Twitter.

Also, a lot of people are support O2 (why, are they lawyers?) because they believe this is only about subsidy. It's NOT!

Spread the truth!

Marcos

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