3 Year Contracts = VZW's Answer to the Cingular Threat?
More discounts on the equipment!
Free bonus minutes for the term of the contract that make the plans even a better deal than Cingular's!
A better deal than even New Every 2!
The Unchanged:
Still no rollover...
Still no 7pm nights...
The Bad:
More complicated upgrade rules for customer service.
More oportunities for error in Point of Sale data entry.
More time to make up acquisition costs of each new customer.
Still no better choices for handsets, still behind most other carriers for feature rollout on new equipment.
A Question:
On 3 year, when will the customer be eligible for upgrade?
phonepimp3376 said:
The truth:
More time to make up acquisition costs of each new customer.
Still no better choices for handsets, still behind most other carriers for feature rollout on new equipment.
A Question:
On 3 year, when will the customer be eligible for upgrade?
I'm not going to go into details because it's not public information, but it is similar to the curreny policy on 2 year contracts from what I know.
I know they are. How can they not be? Head in the sand laurel resting never works.
I don't think many will want thee year contracts though. Speaking for myself, I only sign for one year at a time, even at the small $60 more for the phone. I paid $129 for the T637 instead of $79 because I would only sign for a year. I like being month to month and was that way with ATT for years. Keeps options open for new phone and CArrier selections if need be.
CainMarko said:
Yeah 3 year contracts lead to empty stores... it's pretty sad when their phones are so expensive(yet cheap??how does that work) that they have to lock you in a 3 year deal. customers don't even want 2 year contracts... why 3?
Actually, the majority of VZW subscribers are on 2 year contracts and the majority of renewals are on 2 year contracts. This shows us that our customer DO want 2 year contracts and might even want 3 year ones. YOU and I may only want 1 year contracts, but that puts us in the minority.
BTW, this information comes from looking at all 40+ million of our customers, not just a sampling. We have well over 20 million on 2 year contracts.
As far as locking customer in...
(continues)
vzwpro said:
Very bad idea!!! Right now customers dont care paying the difference between 1 or 2 yr agreements so they wont ever consider a 3 yr agreement. What incentives or than a discounted price on equipment can you offer to make customers want to sign a 3 yr agreement?
you're the pro. you tell us. 😕
-Verizon Wireless Sales
.
CainMarko said:
Yeah 3 year contracts lead to empty stores... it's pretty sad when their phones are so expensive(yet cheap??how does that work) that they have to lock you in a 3 year deal. customers don't even want 2 year contracts... why 3?
because we have the lowest churn, so most of the time customers dont care how long they're with us. if our customers are getting flawless coverage and good service, what reason would there be to switch carriers?
if it aint broke, dont fix it.. 😛
-Verizon Wireless Sales
.
phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.
were close though.
and its alot lower than Cingular's and ATT's
A lot of our churn issue was associated with the GSM overlay. When we first started it there were some issues which caused people to leave. It took a bit to rebuild our reputation after that. With the overlay completed, we are seeing much lower churn. Let's hope it continues to fall.
lilgabe1 said:
I know that we port in a whole slew of nextel subscribers.
Well because Nextell is focused on business/construction, I usually port in full business accounts (which is usually about 5-8 lines a shot)
-Verizon Wireless Sales
.
TheVZWMan said:
yeah I saw that in this forum somewhere I don't if that is true or not, could be but I honestyly don't believe thqat we have tried to change it...plus it would be a major disadvantage that if say, Cingular has the 7pm nw and surpassed VZW in coverage, and the FCC would not allow us to change to 7pm nw...it would almost be as if the FCC said " you guys have too many customers so we're going to have to wait till some of them go elsewhere before you are able to change your night and weekend minutes"...other than that I don't think the FCC has any say as to what each individual company does with their calling plan...they just have say over spectrum and actual licensing on towers placement
That ...
(continues)
phonepimp3376 said:
With the overlay completed, we are seeing much lower churn. Let's hope it continues to fall.
Yea I'll keep my fingers crossed for Cingular.
🙄
-Verizon Wireless Sales
.
85percent said:phonepimp3376 said:
With the overlay completed, we are seeing much lower churn. Let's hope it continues to fall.
Yea I'll keep my fingers crossed for Cingular.
🙄
-Verizon Wireless Sales
.
lol no offense PP but so will I...
85percent said:phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.
were close though.
and its alot lower than Cingular's and ATT's
85percent why must everything always come back to AT&T or Cingular with you? Maybe you'll be biting your tongue (finally) in a few months.
RUFF1415 said:85percent said:phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.
were close though.
and its alot lower than Cingular's and ATT's
85percent why must everything always come back to AT&T or Cingular with you? Maybe you'll be biting your tongue (finally) in a few months.
Because they will be our biggest threat. It's going to be extremely competitive between the two giants when the merge happens. And yea, maybe I will be biting my tongue. We'll see 😉
-Verizon Wireless Sales
.
85percent said:RUFF1415 said:85percent said:phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.
were close though.
and its alot lower than Cingular's and ATT's
85percent why must everything always come back to AT&T or Cingular with you? Maybe you'll be biting your tongue (finally) in a few months.
Because they will be our biggest threat. It's going to be extremely competitive between the two giants when the merge happens. And yea, maybe I will be biting my tongue. We'll see 😉
-Verizon Wireless Sales
.
Let's only hope...I think that ...
(continues)
RUFF1415 said:...85percent said:RUFF1415 said:85percent said:phonepimp3376 said:
Again, VZW does NOT have the lowest churn. That distinction belongs to Nextel.
were close though.
and its alot lower than Cingular's and ATT's
85percent why must everything always come back to AT&T or Cingular with you? Maybe you'll be biting your tongue (finally) in a few months.
Because they will be our biggest threat. It's going to be extremely competitive between the two giants when the merge happens. And yea, maybe I will be biting my tongue. We'll see 😉
-Verizon Wireless Sales
.
(continues)
southwestcomm said:
The only reason customers are signing two-year contracts is to take advantage of the equipment discounting. Offer the same equipment pricing on a one-year contract and I bet everyone would sign a one year.
Well, common sense would be for someone to take the one year option IF the price was the same, but there must be a reason for the customer to choose the 2year option. It saves the customer $50 up front, plus you get the $100 New Every Two on a renewal towards a new phone.
verizonrep said:
It saves the customer $50 up front, plus you get the $100 New Every Two on a renewal towards a new phone.
$70: $50 on the phone and $20 on the activation fee
of course this is true
any time you offer the same for less or more for less it will be in higher demand
offer a big mac for 4 cents and more people would buy it than if you offered it for 4 dollors.
The point is, we would be offering even better discounts for 3 year contracts and maybe even bonus minutes. If people take a 2 year for a better discounts then they might take a 3 year for even better ones. It's the age old philosophy of offering more for more or less for less.
Not to say that this is the case for everyone, but it's my experience.
Um, I really doubt that your's or anyone's coverage is flawless (which coverage really refers to the areas of the nation that have service, which is DEFINITELY not flawless). I'm sorry to tell you this but although you may believe it, and I know Verizon may have brain-washed you into it, Verizon is not perfect. Its really impossible to have flawless coverage due to diffent terrain, atmospheric changes, and other obstacles such as buildings or trees. Once again, sorry to have to tell you, but it was for the best. 🙄
I mean, how many people actually do enough research to care about the various phone selection? I mean, if it mattered to a majority of the american public then phonescoop.com would be MUCH more popular. As it is, the vast amount of american cell phone users care only about price and signal strength. The 3 year cont...
(continues)
I think ANY technologgy is first learned by the youth and then brought into the mainstream when they reach positions of decision making power which can usually be as little as 5-10 year span of time.
I think Verizon should do research on new activations among 24 and below in single years and look for a trend. They're $400 deposit prohibits a lot of that age group I m sure . The results in the different age groups will dete...
(continues)
RUFF1415 said:
If and when Verizon puts this into action, would there be anything keeping Cingular from following suit? Just curious.
Nothing, but cingular's customer base is a bit different than VZW's base. I wouldn't put it past cingular to offer the 3 year contract, but they are probably better off continuing the direction that they are going in instead of trying to just copy VZW.
As I see it, and this is open to debate, Service Providers can be rated on 5 areas:
Technology, Coverage, Customer Service, Price, and Phone Selection...
Both have good technology.
As it is, Cingular is top in price and phone selection and only needs to work on customer service rating and coverage.
VZW has tho...
(continues)
VZWCustServ said:
The Good:
More discounts on the equipment!
Free bonus minutes for the term of the contract that make the plans even a better deal than Cingular's!
A better deal than even New Every 2!
The Unchanged:
Still no rollover...
Still no 7pm nights...
The Bad:
More complicated upgrade rules for customer service.
More oportunities for error in Point of Sale data entry.
why did you make this up?
if not, where did you hear of this?
schnozejt said:
why did you make this up?
if not, where did you hear of this?
Not making it up. When have I ever given anyone reason to think that I would make stuff up?
It's going to be tested in one small market to judge initial reaction. If it goes well, it might be offered in other markets.
It's in our resources here at customer service if you know where to look. I just don't have anything better to do that read EVERY new m&p release inbetween calls.
I'm just lookin' out for ya cause I've seen the wa you try to help people out here.
Just be careful bud. 😉
Biggs said:
But you actually did when you said it was being tested in a market. That's not info that has been released outside the company, except in that one area.
I'm just lookin' out for ya cause I've seen the wa you try to help people out here.
Just be careful bud. 😉
Sorry, ya lost me. What did I say was being tested in a market?
I usually only give information on these forums that I would tell customers. IMO, its the best way to not step over that fine line.
-Verizon Wireless Sales
.
A lot happens in 3 years...I just don't see it working well, except for maybe VERY loyal customers or those with business agreements.
As for dicounts on phones I don't really care about that either.
Even though I am a Verizon customer, and a cell company should prove to me that they are worth keeping.If I'm going to be stuck with same company that I may not like for 2 or 3 years.
Since 1996 I have always gone with the 1 tear contracts.
Of course, number portability didn't turn out to be the nasty monster some feared, but looking long-term, it's still something every carrier needs to be thinking about.
Carriers naturally don't want to lose customers. Portability made it easier to leave; contracts keep you from doing that.
Rich Brome said:
Number portability makes it easier to switch carriers. Longer contracts counter that by making it harder to switch.
Just since this thread was posted 2 years ago, hasn't EQUIPMENT PORTABILITY become as great an issue for switching carriers?
What good is it if you can take your number with you, if you can't move your phone?
A Canadian friend of mine used to roam the USA with a Bell Mobility E815, but when he wanted to move his phone to Verizon he was not allowed to.