When it comes to contract renewal time, what do you do? Stick with the devil you know or move on. suprisingly more and more company decision makers are staying put? Why aren’t they actively looking for the best deal?

The UK business mobile phone user has, over the year’s, metamorphosised in many cases in to a conditioned creature of habit, choosing to stay with their existing network when it comes to contract renewal time without so much as a cursory glance at what else could be available from the opposition. This is of course due to many reasons, not least of all to the ever present TV adverts with bubbles all over the screen, people falling out of buildings onto boxes, people walking down the street with no heads and blow up animals to name but a few, you’ll know who they are. An increasing number of companies are dealing with the networks directly and saying goodbye to their independent dealer who has looked after them. This migration of customers direct into the networks isn’t particularly a good thing for the end user, Mr. Customer.

Dealing direct with a network gives Mr. Customer a choice of one deal to choose from when its renewal time, the network they are connected to. At this point it’s safe to assume what is going to happen. Mr. Customer will be showered with reasons to stay from financial incentives to free minutes and new products as a gesture of appreciation from the network for Mr. Customer’s loyalty. Rewind…..Mr. Customer is at his renewal point and has been paying £X per month for his tariff. Why then at this point is Mr. Customer offered a better deal, why wasn’t he offered the deal 6 months into his contract? Two reasons, firstly he is contracted, the network wont offer a cheaper alternative and secondly its better for the network to offer the deal at this point rather than risk losing Mr. Customer to another network and then have to pay more to win his business back in 12 months time. So does accepting the deal, the only one on the table, make good commercial sense? Of course not! But you wouldn’t believe how many companies take this easy option. There are reasons for Mr. Customer taking this position:

Convenience, I can’t be bothered looking around, its on the table so I’ll take it

I had a bad experience with my dealer and I think the network direct will look after me better

I rang to get my PAC code but the save team (the people charged at the networks with retaining your business if you want to leave) coerced me into staying with loyalty rewards

I have been with X network for years, it’s the only one that works

Take a step back and visualise Mr. Customer in each of the scenarios above, have you been Mr. Customer at some point? You probably have. There will be other reasons Mr. Customer stayed but the most common ones are highlighted.

Rewind and look at the points again;

Convenience, I can’t be bothered looking around, its on the table so I’ll take it

If a stranger approached you in the street and said “here is £1,000 in cash of my personal money, take it no questions asked”, what would you do. Hesitate? Tell them you don’t want it? Take it? We would each have our own outcome, but at least 75% of people would take it. In getting an independent review of your current spend and tariff, you will probably bump in to that stranger in the street wanting to give you their £1,000 no questions asked. This time he may offer you more, maybe less but look. If your company accountant advised you not to look at cost saving options in your business would he be doing his or her job properly, no! The deal your current network is offering you could be the worst one available to you, but you’re quite happy with that, aren’t you?

I had a bad experience with my dealer and I think the network direct will look after me better

Everyone will have brought something at some point and had a bad customer experience. If you bought a TV from a high street retailer for example and had a bad experience it doesn’t mean you have to go back to them when you need a new one, it’s your choice where you look. There are numerous dealers available to you, rest assured they will all want your business!

I rang to get my PAC code but the save team coerced me into staying with loyalty rewards

If someone said go and stand in a busy road would you do it? I would like to think not. It’s your choice who you deal with. I hear from customers every day on this subject , a great deal feel they are pressured by their existing network in to staying and just take the easy option and accept the deal on the table.

I have been with X network for years, it’s the only one that works

Reasonable argument? In 1995 maybe but not these days. The big 4 all offer 99% UK coverage and coverage can be checked on-line anyway before you commit. Granted all networks have their inherent black spots but they are very few and far between. So coverage isn’t an argument anymore.

When was the last time your company had a tariff review. Before closing at this point because you’ve heard it before, there are key points here that you may not be aware of.

Networks are constantly jockeying for position in the market place with one invariably providing a better deal than all the others. You should undertake a tariff review at least every 9 months. Too much hard work, why is it? You can save money.

For those of you already committed to a longer term contract one thing is for sure, in making the decision to commit to a long term contract you have no need to review your tariff until it’s up for renewal, is that right?

Two questions for you. When you call for your PAC code because you decided to leave at the end of your contract and your network offers you deal of the century to stay, why didn’t they give you that deal when you were in contract? Why wait until now to offer it? If there was a brand new Ferrari in your car park with a £500 price tag on it, it was a legitimate deal and the Ferrari was perfect in every way, would you buy it?

There are small fortunes to be saved by “having a look”. Nothing ventured, nothing gained. Don’t automatically assume your existing network is the most cost effective, get the facts and make an informed decision. If they are the best you can commit to them well informed and safe in the knowledge that you got the best deal.

What ever you decide to do, stick or twist - investigate the your chosen networks terms and conditions covering in particular the points of tariff changing. This is a crucial point in the event that you need to drop down a tariff due to your business changing shape. Two networks have recently changed their position on allowing customers to move tariffs, down. Get it right for your own benefit.

The bottom line...

Everybody has a £500 Ferrari deal in their car park, the truth is most people walk past it because they don’t believe the deal and think there must be a catch! There isn’t...