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Interesting comments on DirecTV and Retention


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131 replies to this topic

#26 OFFLINE   lparsons21

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Posted 13 June 2012 - 02:54 PM

Does your utility bill go down after you've been a customer of theirs after X amount of time? Does your car payment go down after X amount of time? Does your mortgage payment go down after X amount of time? Does your rent go down after X amount of time? Do any of them give discounts for being a customer for X amount of time? Why would you expect DirecTV to do that?


Really simple. Because DirecTV has made it a nearly standard option for those that ask. None of the rest of those you mention will deal at all. DirecTV probably doesn't have a single day that they don't offer rebates, discounts and upgrade deals to many someones.

And since they make the rules, we can only excercise them now and again!

That's why!! :)

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#27 OFFLINE   mreposter

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Posted 13 June 2012 - 03:03 PM

Just what makes you think you are a bottom end customer?

I would think they are talking about not throwing deals at people who have the absolute basic packages. $140 a month sounds pretty much middle of the road to me.


I thought I'd read here on the board (maybe in one of the quarterly reports threads) that the average customer bill was around $95/month. If so, $140/month would be more on the high end.
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#28 OFFLINE   MarkG21

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Posted 13 June 2012 - 03:04 PM

Does your utility bill go down after you've been a customer of theirs after X amount of time? Does your car payment go down after X amount of time? Does your mortgage payment go down after X amount of time? Does your rent go down after X amount of time? Do any of them give discounts for being a customer for X amount of time? Why would you expect DirecTV to do that?


Much more bargaining power with direcTv (or any other pay tv) compared to your list. But some of those items, I'm sure you can ask for a discount.

#29 OFFLINE   tonyd79

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Posted 13 June 2012 - 03:30 PM

Comparing the offers I have recently received when inquiring about upgrading to an HR34 with those reported here.


Could be you just don't play the game all that well either. A lot of getting great offers Is gamesmanship.
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#30 OFFLINE   RunnerFL

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Posted 13 June 2012 - 03:44 PM

Really simple. Because DirecTV has made it a nearly standard option for those that ask. None of the rest of those you mention will deal at all. DirecTV probably doesn't have a single day that they don't offer rebates, discounts and upgrade deals to many someones.

And since they make the rules, we can only excercise them now and again!

That's why!! :)


Again, I'm not saying there aren't offers... If you re-read my original post I was pointing out that there are customers who demand discounts they probably aren't entitled to and those are the ones DirecTV is probably referring to as customers where there's no profit to be made.
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#31 OFFLINE   RunnerFL

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Posted 13 June 2012 - 03:45 PM

Much more bargaining power with direcTv (or any other pay tv) compared to your list. But some of those items, I'm sure you can ask for a discount.


Yeah, you call your power company and ask for a discount and see how far you get.. :)
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#32 OFFLINE   ICM2000

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Posted 13 June 2012 - 03:55 PM

In Illinois we may now select from a number of different electric providers which have lower electric rates than the main utility (Exelon). You pay Exelon for the infrastructure and maintenance but the actual electric usage is at a much lower rate from a third party.

#33 OFFLINE   Ira Lacher

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Posted 13 June 2012 - 04:07 PM

Does your utility bill go down after you've been a customer of theirs after X amount of time? Does your car payment go down after X amount of time? Does your mortgage payment go down after X amount of time? Does your rent go down after X amount of time? Do any of them give discounts for being a customer for X amount of time?


No.

And none of those give new customers special rates or considerations either.
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#34 OFFLINE   Darcaine

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Posted 13 June 2012 - 04:45 PM

It's the Pareto Principle or 80/20 rule in motion.

Pareto Principle (when related to business) states that roughly 80% of your profit comes from 20% of you customers, while 80% of complaints also come from 20% of your customers.

So it makes sense for D* to ignore the bottom ~20% who are eating up ~80% of their retention resources.

http://en.wikipedia....areto_principle

Edited by Darcaine, 13 June 2012 - 04:51 PM.


#35 OFFLINE   RunnerFL

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Posted 13 June 2012 - 07:08 PM

In Illinois we may now select from a number of different electric providers which have lower electric rates than the main utility (Exelon). You pay Exelon for the infrastructure and maintenance but the actual electric usage is at a much lower rate from a third party.


I'd love that. We have absolutely no choice of who provides our power down here.
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#36 OFFLINE   RunnerFL

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Posted 13 June 2012 - 07:09 PM

No.

And none of those give new customers special rates or considerations either.


Some rentals do. You can also get an introductory interest rate on a car and a house as well.
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#37 OFFLINE   bidger

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Posted 13 June 2012 - 08:16 PM

Does your mortgage payment go down after X amount of time?


Uh yeah, after the escrow has been paid off, in my case 2013.

The difference between pay TV and the other things you cite is they are necessities and satellite/cable is a luxury. Also, I have other entertainment options. I may no longer be a high-end customer, but I pay on time and in full. Plus my departure would figure in churn, something every provider tries to avoid.

The fact that two years ago new customers were offered Free HD for Life struck a bad chord with folks who were with DirecTV for a decade or more and had paid for HD access when it was still a "bakers dozen" count of channels. Part of the reason I dropped below Choice was the $10/mo. HD Access fee. A key factor in choosing DirecTV over cable was that my bill was for programming, not extras. I was being charged $6/mo. for a cable box plus 25 cents for the remote with TWC. :rolleyes: I paid DirecTV $199 in 2001 for Lifetime DVR on a D-TiVo. If DirecTV offered a similar option for Lifetime HD, say $80-$100, I'd consider it. But, the idea that folks who waited until there was a respectable amount of HD with better PQ and locals availability prior to signing with DirecTV having the fee waived I find rather irksome. In some ways satellite has become more like cable and vice versa.

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#38 OFFLINE   Jon J

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Posted 14 June 2012 - 08:08 AM

Could be you just don't play the game all that well either. A lot of getting great offers Is gamesmanship.

Do you define gamesmanship as the threat of cancellation whether real or as a negotiation ploy? If so, I shouldn't have to threaten to obtain their best offer and I won't go that far. If or when I do call in to cancel, the decision will have been made and there will be no negotiation.
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#39 OFFLINE   bnwrx

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Posted 14 June 2012 - 08:10 AM

I'd love that. We have absolutely no choice of who provides our power down here.


Ditto...No choice for water,sewer,natural gas or electric here. TV provider on the other hand, now I have multiple choices. 25 years ago though there weren't any choices. You either had cable (a wopping 14 channels in my area!) or you listened to the radio for info. Really we have options now for our entertainment that we take for granted and because we have a few choices, we have the ability to play one against the other. IE: Trying to get a better deal on programming or equipment. I've done it myself, but try not to abuse it. I understand that in the end, a company has to be profitable.... Good discussion here.

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#40 OFFLINE   tonyd79

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Posted 14 June 2012 - 09:51 AM

Do you define gamesmanship as the threat of cancellation whether real or as a negotiation ploy? If so, I shouldn't have to threaten to obtain their best offer and I won't go that far. If or when I do call in to cancel, the decision will have been made and there will be no negotiation.



Yes, I do. I don't do it either.
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#41 OFFLINE   dishrich

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Posted 14 June 2012 - 10:21 AM

In Illinois we may now select from a number of different electric providers which have lower electric rates than the main utility (Exelon). You pay Exelon for the infrastructure and maintenance but the actual electric usage is at a much lower rate from a third party.


ONLY in certain areas with private utility companies such as Exelon & Ameren.
If you are served by a municipal utility co. (such as CWLP in Springfield & surrounding areas) then that option is NOT available, sorry. ;)

#42 OFFLINE   raott

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Posted 14 June 2012 - 10:33 AM

Yes, I do. I don't do it either.


Do you pay sticker or asking price for a car?
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#43 OFFLINE   hdtvfan0001

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Posted 14 June 2012 - 10:43 AM

Do you pay sticker or asking price for a car?

Apples to oranges.

A car is far most costly and has significantly higher margin.

A car retail and wholesale price is published and/or available online, so negotiating is nearly an expectation and common practice.
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#44 OFFLINE   larryah

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Posted 14 June 2012 - 10:52 AM

Maybe if you offer some incentive to stay, a low end customer might become a high end customer some day. Not to mention the new customers they might get to try DTV.

#45 OFFLINE   jscott70

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Posted 14 June 2012 - 11:17 AM

We obviously don't know the exact definition of "bottom-end customers" but in my case I seem to qualify with 14 years perfect payment history with an average of about $140 per month. Giving DISH a 2-year tryout is looking better all the time. ;)

If you don't care about 3d content and the Sunday Ticket, Dish is absolutely the better way to go. I find their DVR's to be MUCH faster and better and their customer service is far better as well. I just took advantage of all the latest promos so I went back to DirecTV but am keeping my dish account, albeit scaled back to the $14.99 per month welcome pack, just so I can get the gazillion recordings off onto DVD or digital format. If DirecTV gets on my nerves too badly I'll ramp my Dish account back up and scale back Direct until my 2 years is up. At this point I find DirecTV customer service to be the worst customer service I've ever experienced in my 42 years on this earth. They are mind numbingly stupid and undertrained.

#46 OFFLINE   billsharpe

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Posted 14 June 2012 - 11:31 AM

Does your utility bill go down after you've been a customer of theirs after X amount of time? Does your car payment go down after X amount of time? Does your mortgage payment go down after X amount of time? Does your rent go down after X amount of time? Do any of them give discounts for being a customer for X amount of time? Why would you expect DirecTV to do that?


Because DirecTV has competitors as other choices. The items you cite do not.

My electric company did send me a $10 Starbucks card...:D
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#47 OFFLINE   RACJ2

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Posted 14 June 2012 - 11:47 AM

Does your utility bill go down after you've been a customer of theirs after X amount of time? Does your car payment go down after X amount of time? Does your mortgage payment go down after X amount of time? Does your rent go down after X amount of time? Do any of them give discounts for being a customer for X amount of time? Why would you expect DirecTV to do that?

I understand your point, but you are generalizing.

As mentioned about other states, in Texas we have a choice of electric providers. So its competitive and prices do fluctuate. My rates with the same provide have gone down, when I renewed for another 12 mo's.

Another example is Boost Mobile prepaid service. The monthlies go down, based on the length of time that you are a customer. Unlimited talk, text, web is $50 for the first 6 mo's, $45 for the next 6 mo's, $40 for the next 6 mo's and $35 for the as long as you are a customer.

So to answer your question, there are some providers that do go down after x amount of time.
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#48 OFFLINE   bnwrx

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Posted 14 June 2012 - 12:00 PM

.... At this point I find DirecTV customer service to be the worst customer service I've ever experienced in my 42 years on this earth. They are mind numbingly stupid and undertrained.


Hey, just a little harsh there...
Remember, they have to answer phone calls all day long, probably in a room with no windows, and have people on the other end of the line,maybe like yourself, who always know how to do their job better. Not being a fanboy, just pointing out there are always 2 sides in a conversation.

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#49 OFFLINE   raott

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Posted 14 June 2012 - 12:02 PM

Apples to oranges.

A car is far most costly and has significantly higher margin.

A car retail and wholesale price is published and/or available online, so negotiating is nearly an expectation and common practice.


Not apples to oranges at all. If there is a competitive environment the customer has the power to negotiate (and the company has the power to say no). It seems there is a mantra with some on here that it is somehow immoral to negotiate with D*, which IMO, is utterly ridiculous.
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#50 OFFLINE   mreposter

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Posted 14 June 2012 - 12:05 PM

I thought I'd read here on the board (maybe in one of the quarterly reports threads) that the average customer bill was around $95/month. If so, $140/month would be more on the high end.


Found it on the Directv website, 2012 1st Quarter Financial Report:

Average Monthly Revenue per Subscriber (ARPU)
2012Q1 = 91.99
2011Q1 = 88.79

FYI, another informative number from the report is Average Monthly Subscriber Churn (the % of customers that leave during the month.) It was 1.44% for the first quarter, down from 1.5% the year before.

http://investor.dire...eleaseID=671207
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