Is there any reward for customer loyalty?
JUNE 9TH, 2010 By DOMINIC
There are some organisations that do it exceptionally well and others that do the polar opposite, so I have to say when I was mightily let down by the Automobile Association (AA) this week I was shocked and more than a little disappointed.
Customer loyalty no longer seems a priority to this once great British institution. In brief, I’d received my
annual renewal reminder which was £260. After receiving various direct mailers I knew competitors could offer me a similar package for £80 but I’ve always had peace of mind with the AA and have been a customer for 11 years and didn’t really want to change. After a cursory look over the AA’s website I could become a new member for £160 for exactly the same package. How could this be? My loyalty was essentially being rewarded with a vastly inflated annual bill. I was furious.
I pointed out the injustice to one of the call centre staff and after conversing with a supervisor they promptly agreed to offer me the new customer rate. Result. But that wasn’t the point.
They could have so easily got away with this, as they probably have in previous years. We’re all busy people, and many companies operate this automatic renewal procedure, which is fine, apart from the fact the fees ratchet up year on year and largely go unnoticed as our lives are too hectic to do our homework, read the small print and research alternatives.
I wanted to flag this issue up as unfortunately I constantly see examples of this practice within my industry. When we take on new clients we carry out a full assessment of their finances. We find case upon case, where various investments have been taken out on the basis of lucrative returns but year on year percentage returns are depleted, yet annual fees gradually creep up. Of course, it’s all there to see in black and white but busy people don’t get the time to scour the small print and look for an alternative.
This is where the advantage of a private office really comes into its own. It’s our business to take the time to carry out exhaustive research on all of the investments and build a true picture of your finances as well as find the best investment options out there to suit your needs. We can stand back and take an unemotional view based on black and white hard facts. Maybe if I’d done the same with the AA I’d no longer be a member. Another case of misplaced loyalty and this time I’m guilty.
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By Claire Gould, June 9, 2010 @ 2:37 pm
I too have recently received my annual AA renewal which is almost £100 more than if I were joining as a new customer. Having been with the AA for 5 years I find their treatment of existing customers to be very shoddy indeed. However, this has been an annual occurrence for me as I contest the price hike each year following receipt of my renewal. After wasting my valuable time speaking with the AA ‘customer service’ staff, they have in the past always agreed to reduce the price to the same amount a new customer would pay. This time I have decided to take my custom elsewhere as the AA said they could not reduce the cost but suggested I cancel my cover and re-apply as a new customer! No doubt I will receive exactly the same treatment at renewal time with the RAC next year!
By Julian Lowe, June 16, 2010 @ 1:26 pm
I was with the RAC for 8 years and they did exactly the same, year on year.
The joys of automatic renewals.
Every year I would ring and get the price knowcked back down, but I had to remember to make that phone call.