The Rogers Wireless 5 Step Guide to Creating A Loyal Customer Base

By Daniel Smith (ARTICLE FROM: SMITHEREENS

With all the news lately about the impending launch of the iPhone here in Canada on the Rogers network, and the exceedingly positive reactions the company has received from both customers and launch partner Apple, I thought it would be an excellent idea to dig in and examine just what Rogers Wireless does to create such a loyal and enthusiastic base of customers. Perhaps we can all learn something from the master.

And so I present to you a simple 5 step guide to replicating Rogers’ great success:

Step 1: When It Comes To Pricing, Bigger Is Better

If you truly want to be a customer service maven like Rogers Wireless, the first thing you must do is throw away any preexisting notions you have about pricing.

Sure, people may say that consumers “love a bargain”, or that they expect a “fair deal”, but this amounts to little more than propaganda. The truth is, if you want customers to really respect you, you have to gouge them mercilessly.

This is one thing that Rogers understands intimately. Do you really think they are incapable of offering rate plans that “make sense” and iPhone data packs that would allow “standard usage”?

Well of course they’re not, but why would they want to be lumped in with those amateurs south of the border anyway? Customers who pay through the nose won’t turn up their nose, plain and simple.

Save the dignity for your stockholders.

Step 2: Maximize Customer Happiness With Unmanageable Overage Charges

The only thing customers appreciate more than high basic pricing is a good, unexpected overage charge. They tend to view this sort of thing as a “gouging bonus” or a “respect premium.”

Just think, if they looked up to you for charging them $60 for a feature-poor service, for example, just imagine how that fondness would grow in the face of a 100-200% markup in aditional fees!

Rogers takes this prinicple to the next level by making their overage charges as difficult to avoid as possible.

At first you might think that if you were charging customers by the minute or kb beyond a certain threshold, they might appreciate some comprehensive way to track those metrics in real-time to ensure they aren’t exceeded accidentally.

But you’d be wrong. In reality, customers enjoy the Russian Roulette-type experience of never knowing whether a call will be included in their monthly package, or will cost them $30. I can feel the suspense just describing it, can’t you?

Step 3: Demonstrate Your Commitment: Put It In Writing

As the old saying goes, “Nothing says commitment like a prenup.”

And there is a valuable lesson for businesses in that remark: If you want your customers to get serious about you, you better be ready to commit for the long haul.

The best way to show your customers that this isn’t just a one-night-stand to you is to invite them into a longterm, one-sided contract. For added effect, it’s best to make the duration of the agreement about 30-60% higher than average. How could your customers not feel unique and special?

Naturally, you’re going to want to put some strict stipulations in the contract, too, for their own good. Rogers sets out an expensive cancellation fee for anyone who wants out of its agreements. And one day, when they look back, Rogers customers will be happy they got that tough love to keep them from doing something they’d regret.

Like going to one of those pesky, interfering competitors, for example. And that brings me to step 4.

Step 4: Buy Your Immediate Competitors, Ignore The Others

Nothing is worse than direct competition when you’re trying to build up a customer base, and Rogers should know.

Just when your customers are starting to enjoy mortgaging their homes to pay for your service, you can always count on an annoying competitor to re-emerge on the scene touting “low prices” and “good customer service,” stealing away the less informed among them.

So take a page from the Ted Rogers book and don’t tolerate the annoyance. Just buy them. Studies have shown that your competitors’ offerings become remarkably similar to your own after acquisition.

And what of the other competitors, you know, the ones who don’t compete directly, but could still steal your customers away?

Well the best thing to do to deal with those is to ignore them altogether. After all, if their offering isn’t as good as yours anyway, then they can’t really be a threat to you, right? Let them talk all they want about “unlimited” services and “fair pricing.” Your customers will still revere you for your stoicism.

Just look at how Rogers so expertly ignores competitive pressure from the likes of Telus and Bell. After all, Rogers knows it is the only GSM carrier in Canada, giving it exclusives on GSM-only devices like the iPhone, so why worry about those CDMA weaklings? It’s not like things are going to change anytime soon.


Step 5: Finally, Ignore Public Outcry Whenever Possible

I hate to use another cliche, but it’s simply too a propos in this case: If you want the baby to go to sleep, let her cry it out.

And so it is with your customers. Sure, from time to time, they’ll throw a tantrum and think that they know best. Like kids, they may even threaten to run away. But in the end, if you just stay strong in your convictions, live out this guide to a T and generally ignore the fracas, your customers will truly appreciate it.

Don’t believe me? Well just look at the Rogers case: There was some limited public naysaying about that iPhone launch, but the Wireless giant kept mum and just ignored the bad press instead of sinking to their level. And now people are already talking about declaring tomorrow a National Day just to call and say thank you. I rest my case.

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a)    Answer the following questions to establish a range within which our price will fall.

1. What was the cost of the project and the product? (Development, Human resources, etc.) (COST)
2. Based on customer visits, other market research and general knowledge: What is the value of a product like this to the average person? (VALUE)
3. What is the lowest price at which our company will see return on it’s investment? (COST)
4. What is the highest possible price we could possibly expect because of the product’s perceived value in the customer’s eyes? (VALUE)

b)    Based on your responses to the above questions we must nail down a wholesale price that falls between, “cost” and “value”.   Use the below factors to assist with this process;

1. What is our competition selling their similar products for?

• Can we sell ours for cheaper?
• What if their SRP is too close to our COSTS?

c)  Once a wholesale price has been determined and we assure that it is above our product costs (profitable) – will this wholesale price translate into a competitive retail price for the end customer?  (E.g.; If the average retail customer gets a 40-50% discount on the retail price)

A. Which of the following applies to this new product? Explain why.

1. NEW PRODUCTS BASED ON OLD PRODUCTS
2. RADICAL DEPARTURE
3. SLIGHT TWEAKS ON EXISTING PRODUCTS

-    I can use this product
-    I can afford this product
-    I can show this product to my parents
-    I can show this product to my grandparents
-    This product inspires me
-    This product brings me joy
-    I want more of these products
-    I understand this product
-    My friends envy me because I own this product
-    I can take this product to school
-    I can give this product as a gift
-    I would buy this product again
-    I would only buy this product from this company from now on