Quote:
Originally Posted by RichardCoulter
So, they expect to lose customers by increasing bills again by between £1.99 to £3.99, so are trying to entice new customers by discounting a sum of £6!!!
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Churn is around 10-15 per cent, so let's say they expect to lose 1 in 8 existing customers each year. If they sign up an equal number of new customers at the new discount, they are still quids in with 7 in 8 customers potentially* paying increased bills.
* Obviously retention deals play a part here, so it's very unscientific!