1. Viracocha's Avatar
    It's apparent that the strategy of "new" customers get a discount or more value is ruffling the feathers of existing customers/users. Whether that be superior features and/or cheaper (free) prices for software services on other platforms or current discounts on Xbox One bundles that essentially equate to $100 only a year after release, the perception of existing user base is basically, "WTF?" I'm quite aware of the overall benefits for everyone garnered by additional subscribers or console owners and that they're getting their teeth kicked in certain areas by Apple, Google and Sony. However, I would still agree there needs to be some sort of compensation or acknowledgement for loyal customers. The "new" customer discount strategy was heavily used by cell phone service and cable companies. Ultimately, it just pissed people off and cause a lot of service hopping.

    I can recall a delightful conversation I had with an AT&T service rep. back in the days before service contracts and when cell phones were dumb (changing the background color of the 1"x1" LCD was considered kewl). I was having a heck of a time convincing the service rep. of why it would be a good thing to give loyal, existing customers like myself the cell phone discount and that we'd all just end up leaving. It didn't deter his decision, so I left. When I called up to disconnect, only then was there an attempt to retain my patronage. But, it was too late. The damage was done. Ironically, after the birth of the service contract, I'm back with AT&T lol. The point is...be proactive. It doesn't have to be a lot, but something that says, "Hey, thanks for sticking it out and believing in us."
    jwinch2 likes this.
    11-07-2014 01:36 PM
  2. jwinch2's Avatar
    I agree completely.
    11-07-2014 01:56 PM
  3. stephen_az's Avatar
    It's apparent that the strategy of "new" customers get a discount or more value is ruffling the feathers of existing customers/users. Whether that be superior features and/or cheaper (free) prices for software services on other platforms or current discounts on Xbox One bundles that essentially equate to $100 only a year after release, the perception of existing user base is basically, "WTF?" I'm quite aware of the overall benefits for everyone garnered by additional subscribers or console owners and that they're getting their teeth kicked in certain areas by Apple, Google and Sony. However, I would still agree there needs to be some sort of compensation or acknowledgement for loyal customers. The "new" customer discount strategy was heavily used by cell phone service and cable companies. Ultimately, it just pissed people off and cause a lot of service hopping.

    I can recall a delightful conversation I had with an AT&T service rep. back in the days before service contracts and when cell phones were dumb (changing the background color of the 1"x1" LCD was considered kewl). I was having a heck of a time convincing the service rep. of why it would be a good thing to give loyal, existing customers like myself the cell phone discount and that we'd all just end up leaving. It didn't deter his decision, so I left. When I called up to disconnect, only then was there an attempt to retain my patronage. But, it was too late. The damage was done. Ironically, after the birth of the service contract, I'm back with AT&T lol. The point is...be proactive. It doesn't have to be a lot, but something that says, "Hey, thanks for sticking it out and believing in us."
    You do realize that a $100 discount on a one year old device is not extreme? Early adopters pay full price and people who buy a year later typically will pay less. It is the nature of free market capitalism. I am sorry but the argument is the equivalent of saying Toyota should give me something because I bought my car at the start of the model year and the current stock is now discounted.

    As far as free stuff goes, I assume you are referring to the Office for ios announcement. The version for WP8, which will be replaced by the new OS in a few months may suck but it was also free; the initial versions for other mobile platforms were lousy but not free. When the new OS is released you will get a new version of Office on your phone undoubtedly comparable to the one for iPhones. As for tablets, every Windows tablet without an I series processor either already ships with a much more robust version of Office (in fact the full version) or would ship with it if the OEM preloaded. Full Office 2013/365 versus feature stripped Touch Office seems like a more than fair trade. Microsoft has also made it clear that a touch version of Office will be available when Windows 10 is released. The only people who have had to buy core Office applications on a Windows 8.X touch device since 2013 are those running laptop/desktop equivalent processors. Such is life - someone still needs to pay for some version in order for there to be any versions and it is the crowd on non-touch Windows laptops and desktops, higher end Windows hybrids/tablets, AND machines running OSX. Microsoft is still a for profit enterprise, not a charity, and the practice is quite fair. In fact, even on that front, they have released Office 365 Personal which is quite cheap and (like all versions of Office 365) includes 60 minutes on Skype a month and a terabyte of storage. You can then throw in Office Online which is free, includes remarkably robust online apps, and comes with 15 GB of storage.

    The point of all this is I just do not see where the justification is for loyalty programs, expedited releases, etc., etc., just because they switched some aps to free which will be available a few months before the Windows OS upgrades go live and bring the same stuff. If people would take off their blinders, they might notice the big picture is not as bleak as they seem to think....
    Analyss14 likes this.
    11-07-2014 02:18 PM
  4. Viracocha's Avatar
    You do realize that a $100 discount on a one year old device is not extreme? Early adopters pay full price and people who buy a year later typically will pay less. It is the nature of free market capitalism. I am sorry but the argument is the equivalent of saying Toyota should give me something because I bought my car at the start of the model year and the current stock is now discounted.
    This is a bad comparison. It's obvious that the current price cut of the Xbox One was an effect of its disproportionate sales to the PS4 and not due to it being an "older model." There aren't any newer models of the Xbox One. The Xbox 360 took 2 years to drop $50. This is a strategy to catch up to the PS4, simple as that. One might even surmise that it's also an attempt to attract consumers that have already purchased a PS4 to purchase an Xbox One.

    Loyalty marketing should not be confused as charity. It's a business strategy to build brand loyalty. It doesn't have to be a punch card. Apple does a brilliant job at this. I've heard so many stories about co-workers going to the Apple store with a cracked screen and walking out of the store with a new one, free of charge. To be fair, as I write this, I realize Microsoft does already have some great loyalty type programs. They're doing great things with Bing, Xbox Live content, some loyal SkyDrive users got an extra 10 gigs back in the day, OneDrive users got 15 gigs by enabling backup camera roll, and the level of customer service at the Microsoft Store is definitely building brand loyalty.

    I just want an early adopter $25 download credit, dang it! So I can get Sunset Overdrive! It's not an extreme cost to build a little consumer loyalty.
    11-07-2014 03:31 PM

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