Rogers quarterly profit goes down

Rogers announced that it’s profit for the last quarter went down as a result of lower audiences for the NHL hockey games it shows and because it lost more customers than it was expecting.

New regulations allow cell phone customers to get out of the ridiculous three-year contracts we all signed to get good deals on our phones. As a result, Rogers was forced to spend more money this quarter on customer retention efforts. Anyone who has dealt with Rogers customer service would not be surprised to hear that Rogers retention efforts needed improvement.

If Rogers had improved its’ customer service and retention efforts years ago like it should have, it would not be losing profits and customers now. I touched on this back in 2013 and in 2012. But nobody wanted to listen back then.

If anyone at Rogers is listening now, here’s what I would suggest:

  • Don’t subsidize new customers through your current customers. It should not be cheaper for someone off the street to get a new phone over someone who has been a loyal customer for years and spent thousands of dollars with you.
  • Adopt one view of the customer. I realize you offer a lot of different services, but no customer likes receiving multiple calls from the same company asking about different services that they already have.
  • Be more proactive in finding ways for customers to save money. This will create loyalty. Every time I call, I am given suggestions to reduce my monthly bill, which is great. It would be even better if someone called me proactively to give me those suggestions.
  • Offer concierge service to your best customers. No one should have to wait 15 minutes to get an issue resolved. Especially a customer who has been with you for more than 10 years and likely spent almost $100,000 with you.

Take them or leave them, but these are the ideas I have for you. I only suggest them to help you make more money next quarter.

Miller’s Monday Morning Message

Andrew MillerMiller’s Monday Morning Message
presented by ACM Consulting Inc.

Andrew Miller on operational excellence, strategy, life balance and everything in between

Toronto – August 26, 2013
Many of the headlines we read these days lead us to believe that the sky will fall in the wireless and cell phone markets if US giant Verizon is allowed to bring its services to Canada. We have all heard this story before. We heard it when Walmart announced it was moving to Canada and we heard it again more recently when Target decided to bring its low prices north of the border. As far as I can tell, the sky hasn’t fallen yet. But these moves have forced Canadian companies like HBC, Loblaw’s, Sobeys and others to become more competitive. Is that such a bad thing?
 
I realize that the big three Canadian wireless companies want to protect their turf, but they also need to focus on what they can control, which is how they treat customers. I’m not sure Rogers, Bell, and Telus are going to get a lot of sympathy from Canadian customers. After years of poor service, high fees, long-term contracts with high penalties, and creating a lot of difficulty when customers want to switch providers, now Canadians are being asked to support these companies against the big, bad, US giant.
 
This seems like a desperate approach to use Canadian customers for the benefit of the big three providers. What will happen if Verizon is blocked from entering Canada, or Rogers, Bell and Telus are given the same ability to purchase wireless spectrum assets? Do the customers go back to just being faceless names?

It is the perception of many Canadians that regardless of which of these three companies you go with, the level of service and support will be bad. This should be a bigger concern to Rogers, Bell, and Telus, than Verizon entering the marketplace.
Verizon is a premium provider in the US, so they focus on service, not price. It’s entrance will probably not create a price war in Canada, but might create a service war, which might be worse news for Rogers, Bell and Telus until they are able to dramatically improve the customer experience.

“The big three Canadian companies need to make internal changes to compete,” says Andrew Miller. “By appealing to Canadians to help save them from unfair competition appears self-serving. If they want customers to stand up for them, then provide those customers with an experience and a level of service that is worth fighting for.”
  
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