Existing customer? B@#$%r off!

[Drago]

Mrs D has this policy with Scottish Power. It covers the boiler and heating for breakdowns, and gives an annual service of the system to boot.

The first 6 months was half price, and the second 6 months reverts to a little under the "full rate". Even so, it wasn't badly priced.

The renewal has come through and the price has cranked right up. I looked on their website and I can still get the 6 months half price, next 6 months not quite full price deal as a new customer.

Mrs D rang them up and tried to appeal to their common sense, she would renew if they did it at rhe price we could get as a new customer on the website. They waved adios and didn't even try to retain her as a customer, so she advised that she would not be renewing.

And I went straight back to their website and signed up in my name at the 'new customer' rate, so we won in the end, but wouldn't it have just been simpler all round if the lady on the customer care(!) team had simply bowed to the logic of the situation. It's totally daft.

Anyone else suffered this?

 

[DCLane]

Frequently - the better organisations will match it, the poor ones won't. The Financial Conduct Authority is trying to bring in proposals to stop this. Usually being put through to disconnections gets you a better rate as they have more flexibility, but not always. And Scottish Power is known for this behaviour.

 

[welsh dragon]

I hate Scottish Power. A rip off company. I left them 14 months ago and signed up with Bulb. Best thing I ever did. I wish I'd done it long ago.

Don't show loyalty to any utilities company as they won't show you any.

 

[oldworld]

Mrs D has this policy with Scottish Power. It covers the boiler and heating for breakdowns, and gives an annual service of the system to boot.

The first 6 months was half price, and the second 6 months reverts to a little under the "full rate". Even so, it wasn't badly priced.

The renewal has come through and the price has cranked right up. I looked on their website and I can still get the 6 months half price, next 6 months not quite full price deal as a new customer.

Mrs D rang them up and tried to appeal to their common sense, she would renew if they did it at rhe price we could get as a new customer on the website. They waved adios and didn't even try to retain her as a customer, so she advised that she would not be renewing.

And I went straight back to their website and signed up in my name at the 'new customer' rate, so we won in the end, but wouldn't it have just been simpler all round if the lady on the customer care(!) team had simply bowed to the logic of the situation. It's totally daft.

Anyone else suffered this?

Yes but with car insurance. The premium shot up and we popped into the local office and asked why? We were give a run around and told that it was correct and all insurances had risen. We told her we weren't happy and we'd look around. She, very off-handed, said go ahead. We did and found the same cover for less than the previous year.
The following year the renewal date approached and we had emails and calls from her asking us to come in and see what deal she could offer.
She came up with a decent offer so we went with her.
I think the message we'd 'walk' if the price wasn't right hit home.
Why companies spend huge amounts on getting new custom but treat existing ones so badly they leave doesn't seem to make business sense.

 

[PK99]

Yes but with car insurance. The premium shot up and we popped into the local office and asked why? We were give a run around and told that it was correct and all insurances had risen. We told her we weren't happy and we'd look around. She, very off-handed, said go ahead. We did and found the same cover for less than the previous year.
The following year the renewal date approached and we had emails and calls from her asking us to come in and see what deal she could offer.
She came up with a decent offer so we went with her.
I think the message we'd 'walk' if the price wasn't right hit home.
Why companies spend huge amounts on getting new custom but treat existing ones so badly they leave doesn't seem to make business sense.

Oh but it does make business sense.

In challenging you are, In all likely hood, unusual. The practice relies on the inertia factor by which most people simply renew.

 

[Bazzer]

Yep. Similar to @oldworld .
At the beginning of January our house insurance was due for renewal. Compare the market had our insurer and identical policy £20 cheaper than the renewal quote. Mrs B rang to explain this and ask for the lower figure. It became a battle of wills between the call centre person and Mrs B. After 20 minutes of to and fro, I lost it, even though I was not directly involved in the call. I said in loud voice tell them to #### off with the renewal and we will buy the new policy through the comparison site. Oddly, she was then offered the lower price.

 

[Bonefish Blues]

...and they don't even pony up the lube.

 

[byegad]

LV have insured our house for the last 2 years, last year it went up by £20, this year, it's due next month, it's exactly the same! So we've renewed.

 

[Drago]

Oh but it does make business sense.

In challenging you are, In all likely hood, unusual. The practice relies on the inertia factor by which most people simply renew.

PK99 often speaks wisely, and today is no exception.

I suspect those who stick with it through sheer inertia outweigh those like me who have the gumption to shop around. I've always been a keen believer that watching the pennies closely allows the pounds to take care of themselves.

 

[stoatsngroats]

Some years ago, my BIL considered buying my Land Rover, but was put off by his insurance quote.
When we checked each other’s premium his was almost double. Une, with and age difference of 20 years and 14 years more driving experience, he was stunned! He’d been with the same insurer for most of his driving years, whereas I had always checked, using a local broker.
When he used the same broker, he reduced the quote for the land rover and his other car to something nearer my annual quote, and consequently bought my LR.
Those who don’t shop around can never know fully how much additional charge they allow.
With modern comparison sites, it is easy to judge cost/cover levels.
I recently spoke with M&S about car insurance, and chose to change away from them because they decided not to match.
That’s the way of the world today.... loyalty is often not sufficiently recognised by companies, though some do try.

 

[Poacher]

...and they don't even pony up the lube.

...or, indeed, lube up the pony.



Am I on the right forum?

 

[figbat]

Couple of years ago my motorcycle insurance renewal came in with a hefty increase. They helpfully provided a breakdown of the elements of the premium compared to the previous year. In this I found that the actual insurance premium was largely the same but there was an inordinate increase in fees and such. I went onto their website and did a new customer policy quote, which came out about the same as my previous year was, so then I called them.

Amongst the toing and froing they had the nerve to say that the renewal premium was “the very best they could do”. “Clearly not” says I, “for your website has given me a much lower offer”. This elicited the need to “consult the underwriter” along with a lengthy delay, after which I was informed that in this case they were willing to match the online price, as if they were offering me some special treatment that I should be grateful for.

 

[Cycleops]

It's because the companies know that coming up to renewal most will simply click to renew as they are too lazy to go elsewhere. Simple as.

 

[Mo1959]

It's because the companies know that coming up to renewal most will simply click to renew as they are too lazy to go elsewhere. Simple as.

Have to admit, if it's only £20 to £30 I normally just leave it, but this year Saga has bumped my car insurance up yet again by a hefty amount and I can now save £100 by moving so looks like I will be off.

 

[Darius_Jedburgh]

We were with Scottish Power for our gas and electric. Anniversary came round and we did some digging. Found another supplier more than 30% cheaper. Tried to talk to SP but never got anywhere, so we switched. 3 months later we got a phone call asking if we wanted to go ahead with the renewal, and expressing amazement that we might have switched when they would have welcomed the chance to discuss our rquirements. Guy claimed not to know that we had already left them. Too late. We did offer to reconsider them if they contacted us when the new deal was due to run out, but heard nothing.