Vic recently spoke to a friend who had been with her phone carrier for years and spent upwards of $150 a month. She wanted a new iPhone, but her carrier didn’t carry it.
So, she paid $200 to end her contract and went with a new carrier. Although the old carrier got her $200, it lost out on thousands of future dollars from her – and from her friends, relatives, and co-workers who she recounted her unpleasant experience to.
In the old days, many companies held customers hostage like this – think of record and book clubs that were hard to opt out of. Today’s customers however want to be free to make choices, and thanks to technology they have more choices than ever.
Yet, many companies still try to force customers into a contract – phone companies and gyms are two very common examples.
Holding customers hostage isn’t a sustainable business model in the 21st century. Like another inadvisable business model – the hard up-sell – it will anger customers and frustrate employees.
Does your company hold customers hostage in any way? Is there a way you can give your customers freedom without impacting your profit?
This is an excerpt from the workbook of “The Culture Secret” by Dr. David Vik.