When theory and practice don't meet

Marketing professors at my business school used to say that it's easier and less costly to retain an existing customer than to attract a new one. Marketing textbooks would tell you the same thing. However, the reality in Lithuania is quite the opposite. At least in the mobile communications business. And I wonder why.

I had been a loyal and long-term customer of the largest mobile operator before I asked for some special treats when changing my status from a private customer to a corporate one last autumn. And then I realised (with a big surprise!) that, in terms of choosing a product or service provider, loyalty doesn't pay in Lithuania. The customer care officer of the mobile operator told me that they weren't able to offer me any preferential call rates or other benefits as gratitude for me being their loyal and always-pay-the-bill-on-time customer.

The sales person was indeed trying to come up with something that would make me feel that the mobile company appreciated me as an old customer. They had a very complicated system ("loyalty programme", they call it) which, unfortunately, was of no use to me. Finally, I got tired and asked her if I came to her as a new customer and asked for a new phone number, would I be entitled to some special rates? She said: "Yes".

At the time I thought "How ridiculous" and decided to end up the complication and signed up as a corporate customer for another 2 years (I wanted to keep the same phone number that I had been using for some years).

A month later I went to the second largest mobile operator and asked what they could offer me. I was a new customer to them. And "disloyal" to their competitor.:)

I signed up with them, kept my old phone number and (!) started benefiting from lower phone bills. Plus, they covered my contractual obligations (for terminating the contract earlier than in 2 years' time) to the previous mobile phone company.

Oh, I love beeing a new customer! I can tell that the account manager at my current phone company does indeed care for my needs. And I buy more from them.

I know people who have phone numbers from all the main three mobile operators in Lithuania. At the end of the contract term they threaten to leave the operator and thus they get some benefits for extending the contract. I can't be bothered to carry three mobile phones or use three different numbers (although I have a Lithuanian number and a UK number, but that's a different matter).

I feel it's about time to change my bank as I no longer receive the VIP treatment I've been used to.

FCUK (French Connection UK), Edinburgh, April 2007. Photo by Giedrius CP