The rumor was true—T-Mobile has started offering cheaper unlimited voice plans to existing customers. Matthew wrote to us, “The TMO loyalty plans are showing up on the site as of today…we just moved to the Unlimited Loyalty Family Plan at $89.99, which is $10 cheaper than the 2000 minute Family Plan we’d been on.”
By all accounts, Sprint has hit an iceberg and is leaking customers like the Titanic, but new CEO Dan Hesse says that they lost some of those customers on purpose because they were just crappy customers. As strange as this sounds, it does match up with what we’ve been hearing from (former) Sprint customers.
The author of the BuisnessWeek article “Sprint’s Wake-Up Call”, Spencer Ante, has posted his entire interview with Sprint’s new CEO, Dan “At Least I’m Not Gary Forsee” Hesse.
Did you know that if you keep 5% more of your customers, you will make 35-95% more profit? Those were the findings of a Harvard researcher* when he investigated the financial impact of keeping customers around. The chart above demonstrates how a 5% increase in retention rates increased profit across a variety of industries. The equation is simple: make us stick around (usually by making us happier) and we’ll make you more money. Cut out support, services, make it difficult to talk to you, etc, and while you might save in the short, you’ll lose in the long-term.
Sprint Nextel’s third quarter earnings are, uh, down 77%. Sprint lost 397,000 customers this quarter, according to MarketWatch. [MartketWatch]