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New every 2?
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Posted by: Freakshow105

Just wondering if us as Cingular Employess would see this a great value to have or the reverse? Also just wondering if any former VZW employess can shed light on the program what they think of it if it is crap or if customers love it etc?

discuss

Posted by: .7

As long as Cingular can lower churn by other methods (which they have) I dont think you'll see it anytime soon.

I know the NE2 is as long as there have been no, and I repeat, NO phone subsides within a 2YR period. I dont know of any customers, espically ones that would use the NE2 to buy higher end equipment, would ever be happy with one device for 2 years.

I also think its near the bottom on a very long list of things that are more important to churn and the bottom line, IMHO.

Posted by: suicidal2af

Quote:

Originally Posted by .7

As long as Cingular can lower churn by other methods (which they have) I dont think you'll see it anytime soon.

I know the NE2 is as long as there have been no, and I repeat, NO phone subsides within a 2YR period. I dont know of any customers, espically ones that would use the NE2 to buy higher end equipment, would ever be happy with one device for 2 years.

I also think its near the bottom on a very long list of things that are more important to churn and the bottom line, IMHO.

NE2 works like this:

Cust comes in after 22 months to upgrade phone. They get $50 or $100 towards the 2yr price of the phone, depending on the price plan that they're on.

And they don't pay an upgrade fee, either.

Yeah, not everybody waits, but most people do.

Example for those unfamiliar:

Current price on LG VX8300 for a 2yr activation is $149.99 - $50 MIR for a final price of $99.99

NE2 customer gets up to $100 towards phone, brings price down 99.99 to $50 up front.

Customer gets phone for free after rebate.

Posted by: .7

Quote:

Originally Posted by suicidal2af

Its also my understanding that not everyone is eligible, like someone who's on a $29 dollar plan would be eligible but someone thats on a $59 would be.

Posted by: Soopafly

We have new every 21 months, renew your plan for 2 years and get the 2 year price (at least $100 off the phone if not more with rebates). Better than Verizon's upgrade policy. Sometimes you can upgrade earlier at the 12 month mark depending on the average monthly bill you have with us.

Most customers who wait to the 21 month mark usually get a waived upgrade charge as well. Verizon just has good marketing... LOL

Posted by: suicidal2af

Quote:

Originally Posted by Soopafly

We have new every 21 months, renew your plan for 2 years and get the 2 year price (at least $100 off the phone if not more with rebates). Better than Verizon's upgrade policy. Sometimes you can upgrade earlier at the 12 month mark depending on the average monthly bill you have with us.

Most customers who wait to the 21 month mark usually get a waived upgrade charge as well. Verizon just has good marketing... LOL

No, not quite...the $100 is off of the 2yr price, not the full retail price.

Using the vx8300 as an example again:

Full Retail - $259.99
1yr - $199.99 - $50 MIR
2yr - $149.99 - $50 MIR
NE2 - $50 - $50 MIR

Posted by: suicidal2af

Quote:

Originally Posted by .7

Its also my understanding that not everyone is eligible, like someone who's on a $29 dollar plan would be eligible but someone thats on a $59 would be.

This is correct. With the new policy, $34.99-79.98 gets $50, 79.99+ gets 100. Below that gets the 2yr price.

Posted by: SuxBeingU

the NE2 program is a great way to keep customers loyal.

They can upgrade after one year if they are on a 59.99 plan or higher. They don't get the additional 100 off but do get the 2yr price adn like mentioned above never pay an upgrade fee.

Posted by: Soopafly

Quote:

Originally Posted by suicidal2af

Ok, did not know it worked like that. Interesting, probably why we've had a TON of VIP offers then. Though it's only the primary line on a family plan that can get the heavy discount right?

Posted by: suicidal2af

Quote:

Originally Posted by Soopafly

Ok, did not know it worked like that. Interesting, probably why we've had a TON of VIP offers then. Though it's only the primary line on a family plan that can get the heavy discount right?

This is correct, however they almost always offer some sort of buy one, get three free deals, so people usually don't pay much for phones.

They outsource a company called Kipany to run something called Continuity Marketing. They send out mailers for better deals to EOC customers, much like the VIP offers.

Posted by: dibara2003

One big thing is, people dont want a phone for 2 years that has a 1 year warranty, it screws you over if it breaks...

Posted by: suicidal2af

Quote:

Originally Posted by dibara2003

One big thing is, people dont want a phone for 2 years that has a 1 year warranty, it screws you over if it breaks...

Unless you have TEC or extended warranty. And if you don't, it only costs $50 for an out-of-warranty swap.

'Course, the ~1400 or so contracts I've done so far this year, of which 98.9% are 2 year contracts, would disagree with your statement.

Posted by: didefresh2006

Take for example the Samsung d807

2 year price (at most cingular stores) $179
NE2 discount -100
$50 mail in rebate - 50

Total cost after rebate $29

No wonder why vzw has happier customers.

Posted by: didefresh2006

BTW, who in their bright minds at cingular decided it was a good idea for an $18 upgrade fee?

Posted by: is_that_clear

AT&T used to have their "Customer's First" plan, where subscribers could get a new phone at promotional pricing every year.