With all the news lately about the impending launch of the iPhone here in Canada on the Rogers network, and the exceedingly positive reactions the company has received from both customers and launch partner Apple, I thought it would be an excellent idea to dig in and examine just what Rogers Wireless does to create such a loyal and enthusiastic base of customers. Perhaps we can all learn something from the master.

And so I present to you a simple 5 step guide to replicating Rogers' great success:


Step 1: When It Comes To Pricing, Bigger Is Better

If you truly want to be a customer service maven like Rogers Wireless, the first thing you must do is throw away any preexisting notions you have about pricing.

Sure, people may say that consumers "love a bargain", or that they expect a "fair deal", but this amounts to little more than propaganda. The truth is, if you want customers to really respect you, you have to gouge them mercilessly.

This is one thing that Rogers understands intimately. Do you really think they are incapable of offering rate plans that "make sense" and iPhone data packs that would allow "standard usage"?

Well of course they're not, but why would they want to be lumped in with those amateurs south of the border anyway? Customers who pay through the nose won't turn up their nose, plain and simple.

Save the dignity for your stockholders.

Step 2: Maximize Customer Happiness With Unmanageable Overage Charges


The only thing customers appreciate more than high basic pricing is a good, unexpected overage charge. They tend to view this sort of thing as a "gouging bonus" or a "respect premium."

Just think, if they looked up to you for charging them $60 for a feature-poor service, for example, just imagine how that fondness would grow in the face of a 100-200% markup in aditional fees!

Rogers takes this prinicple to the next level by making their overage charges as difficult to avoid as possible.

At first you might think that if you were charging customers by the minute or kb beyond a certain threshold, they might appreciate some comprehensive way to track those metrics in real-time to ensure they aren't exceeded accidentally.

But you'd be wrong. In reality, customers enjoy the Russian Roulette-type experience of never knowing whether a call will be included in their monthly package, or will cost them $30. I can feel the suspense just describing it, can't you?

Step 3: Demonstrate Your Commitment: Put It In Writing


As the old saying goes, "Nothing says commitment like a prenup."

And there is a valuable lesson for businesses in that remark: If you want your customers to get serious about you, you better be ready to commit for the long haul.

The best way to show your customers that this isn't just a one-night-stand to you is to invite them into a longterm, one-sided contract. For added effect, it's best to make the duration of the agreement about 30-60% higher than average. How could your customers not feel unique and special?

Naturally, you're going to want to put some strict stipulations in the contract, too, for their own good. Rogers sets out an expensive cancellation fee for anyone who wants out of its agreements. And one day, when they look back, Rogers customers will be happy they got that tough love to keep them from doing something they'd regret.

Like going to one of those pesky, interfering competitors, for example. And that brings me to step 4.

Step 4: Buy Your Immediate Competitors, Ignore The Others


Nothing is worse than direct competition when you're trying to build up a customer base, and Rogers should know.

Just when your customers are starting to enjoy mortgaging their homes to pay for your service, you can always count on an annoying competitor to re-emerge on the scene touting "low prices" and "good customer service," stealing away the less informed among them.

So take a page from the Ted Rogers book and don't tolerate the annoyance. Just buy them. Studies have shown that your competitors' offerings become remarkably similar to your own after acquisition.

And what of the other competitors, you know, the ones who don't compete directly, but could still steal your customers away?

Well the best thing to do to deal with those is to ignore them altogether. After all, if their offering isn't as good as yours anyway, then they can't really be a threat to you, right? Let them talk all they want about "unlimited" services and "fair pricing." Your customers will still revere you for your stoicism.

Just look at how Rogers so expertly ignores competitive pressure from the likes of Telus and Bell. After all, Rogers knows it is the only GSM carrier in Canada, giving it exclusives on GSM-only devices like the iPhone, so why worry about those CDMA weaklings? It's not like things are going to change anytime soon.


Step 5: Finally, Ignore Public Outcry Whenever Possible


I hate to use another cliche, but it's simply too a propos in this case: If you want the baby to go to sleep, let her cry it out.

And so it is with your customers. Sure, from time to time, they'll throw a tantrum and think that they know best. Like kids, they may even threaten to run away. But in the end, if you just stay strong in your convictions, live out this guide to a T and generally ignore the fracas, your customers will truly appreciate it.

Don't believe me? Well just look at the Rogers case: There was some limited public naysaying about that iPhone launch, but the Wireless giant kept mum and just ignored the bad press instead of sinking to their level. And now people are already talking about declaring tomorrow a National Day just to call and say thank you. I rest my case.

12 comments

  1. Anonymous // July 8, 2008 at 6:44 PM  

    Hahaha, this is jokes! Love it.

  2. Anonymous // July 8, 2008 at 6:55 PM  

    This is so dead on that it nearly made me eat my keyboard in frustration...

  3. Daniel Smith // July 8, 2008 at 10:08 PM  

    @Anon and nunoxei, thanks I'm glad you enjoyed. A hat tip to Stuff White People Like for the satirical style cues. ;)

    Be sure and pass the word along to anyone you think can relate with us.

    Daniel

  4. Anonymous // July 8, 2008 at 11:48 PM  

    I don't really read blogs, but this one is interesting, bookmarked it. Nice writing!

  5. Daniel Smith // July 9, 2008 at 12:02 AM  

    @anon2: Wow, thanks. That's probably the best compliment I could imagine receiving here. I *will* keep writing and I hope you keep reading...and joining into the conversation when you feel so moved!

    By the way, if you want to be sure not to miss a post, you can get email updates for free here (your email will stay confidential.)

    Cheers,

    Daniel

  6. Unknown // July 9, 2008 at 9:49 AM  

    Daniel, I did not know whether to laugh or cry! Your post is right on and so clearly articulates the lessons we can learn not only from Rogers but most wireless companies. I have opted for a no frills, no contract wireless plan, flat rate $40 per month for unlimited everything. I have internet access too but rarely use it from my phone. I much prefer this straightforward approach than the previous plans where every month was a quest to get the most out of my plan for the least amount of dollars.

  7. Daniel Smith // July 9, 2008 at 10:34 AM  

    @Wordsforhire

    Karen, your plan sounds great! "No frils" and "unlimited" are coveted terms we don't see very much of North of the border.

    You're bang on about this being typical telecom behaviour though. Case in in point: You would think that competitors Bell and Telus would take advantage of the negative PR Rogers is getting to try and distance themselves and look like a better option. Instead, yesterday they both announced that they will soon be charging for incoming text messages (to date these have always been free in Canada.) It's all about the money grab for these guys, because they know consumers can't go anywhere for refuge...

    Daniel

  8. Anonymous // July 10, 2008 at 12:01 AM  

    You definetly nailed it on the head Daniel we as Canadians have no where to go from these crooks who charge what they want and change our plans on us part way through our so called "CONTRACTS" Canadian govt really needs to open up the market and allow in more competition so we can leave the BIG THREE on the curb where they belong.

  9. Anonymous // July 10, 2008 at 3:47 PM  

    You could see this coming when Rogers - unfortunately for the consumer- bought Fido (and Sprint)a few years ago. We all got screwed when the feds (CRTC)opened the door of concentration in telcos.

    PL

  10. Casey // July 10, 2008 at 11:26 PM  

    I laughed out loud several times for two reasons:

    a) It is funny because it is true.
    b) To keep from screaming/crying.

  11. Daniel Smith // July 10, 2008 at 11:38 PM  

    @Fed up - I couldn't agree with you more. We need 2 or 3 more players in the game, all with pockets deep enough to play hardball and force the industry to provide a fair deal. (I'm talking to you T-Mobile, are you listening?)

    @Anon3- The CRTC Definitely let us down on that one, that's for sure. Concentration is never a good thing for the consumer. Can't wait to hear the results of the first spectrum auction. I hope they are encouraging...

    @Casey, first of all, thanks for all your comments lagtely. It's a pleasure to have you join the Smithereens community!

    Secondly, I know what you mean. I wanted to pull my hair out just doing the proof reading for this post :P

    I'm glad you found it funny though too - sometimes all we can do is laugh at our misfortune...

  12. Anonymous // August 7, 2008 at 10:44 PM  

    BULLSEYE!!!

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