Out of Chaos an organizing newsletter
Loyalty
Yesterday, I received a solicitation from Liberty Mutual insurance. Somehow, they knew I had a new car, and wanted to offer me a great deal on car insurance. I threw it out. It’s true that I might have gotten a better deal for a year, and I’m not so rich that $500 wouldn’t make a difference in my life, or at least my holiday budget, but there is value in loyalty. I’ve been with the same insurance company since I bought my first renter’s insurance in 1989. On the rare occasions I’ve had to file a claim or had some other issue, they’ve been easy to reach on the phone and user-friendly. Why change?
Still, I often see this kind of clutter piled on my clients’ desks: Fios, Verizon, Capital One… people are always thinking they should change because something better is just over the rainbow.
On the one hand, I’m a cynic. I’m pretty sure that after any company ropes me in, they will eventually hike up the rates to what I was paying before (or my old provider will come down in price in order to remain competitive). On the other hand, customer loyalty offers benefits—or leverage—when you need to file a claim or have a problem.
In the end, no Internet provider is vastly better than any other and it’s usually simpler to stick with the one you have.
If you commit to the vendors that you have—and they are serving you well—you don’t need to keep those solicitations on your desk. Pitch them the minute you get them. If you feel like your current provider is letting you down, you won’t have to wait long for another mailer from the competition.