How much is a customer worth to a company? Or: How network operators degrade themselves to dumb pipes
How much should a customer be worth to a service provider, and how important is it for a company to show goodwill?
These are two questions I had to ask myself today after my girl friend unsuccessfully tried to pause her mobile subscription at the world's sixth largest mobile phone operator Telenor for six month due to staying abroad.
Even though I am biased here, I would say that my girl friend is a valuable customer to Telenor. She has been with the Norwegian based company for more than two years, and a year ago she signed up for a 24 month iPhone subscription, paying 599 SEK (about 60 Euro) per month for calling and free data traffic. Considering that Telenor has an average revenue per user (ARPU) of about 270 SEK per month here in Sweden, she is definitely a customer Telenor should try to keep.
But judging from the answers she got from the Telenor telephone support regarding the possibility to pause her subscription for six month and to continue afterwards with the remaining contract period, the telco company doesn't seem to think so: Telenor is not able (or willing) to pause a subscription, so the only thing she could do to avoid paying 599 SEK per month without being able to use the subscription is to find someone who wants to take over her contract. Needless to say, that's not what she hoped the support would tell her.The consequence of this is that my girl friend decided to ask Telenor to send her an invoice for the total amount of subscription fees left until the end of her contract period, paying everything at once, and saying bye bye to Telenor.
Telenor is playing by the rules when not allowing people with contract obligations to pause their subscriptions. But it is clearly not showing any goodwill, and it doesn't seem as if the company is interested in significant customer satisfaction beyond its basic service of providing stable telephone and data services.So to be constructive, which options Telenor could offer to revenue driving, loyal customers in a case like this? I see three possibilites, plus one bonus offering:
1. Simply allowing customers to pause a subscription and to continue with it afterwards, with the only requirement being that a specific time frame (e.g. six month or one year) shall not be exceeded. That's the most customer friendly option.
Bonus offering: My girl friend will stay in another country also covered by Telenor. She told that to the support person, but the answer she got was dissappointing: Her phone would automatically select the other countries Telenor network as default wireless operator... wow, awesome...! Instead, Telenor could offer her to send her a second sim card for the other country, giving her the option to continue using her existing subscription over there. But no, this apparently is where globalisation stops.
I don't know how most other network operators would handle this case, but I'm afraid in a similar manner. Which is definiftely the best they can do to degrade themselves to what they are so scared of becoming: dumb pipes.

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