Are we neglecting old relationships in the hope of profiting from new ones? That’s the question that drives the discussion when Jennifer H. Elder, CSP, CPA, Jim Ristuccia, and Jon Strickler join the ethics panel to Grapple with the Gray. Here is our topic: Recently, I had enough of Charter Communications. My monthly fees kept going up, service got worse, and AT&T came around with faster service and a low rate locked in for 10 years. I signed up and then called Charter to cancel. Immediately, they offered to upgrade my service and slash my monthly fees. When I demurred, they offered me discounted cell phone service and their firstborn child. Okay, I made up that last part. A few weeks later, I called the St. Louis Post-Dispatch to cancel my mother’s subscription after the price went up to $175/ month. Same story: Please stay and we’ll cut your fees by over 50%.
The service industry is famous for offering special deals to attract new customers. But what about their old customers? Shouldn’t loyalty count for something? And don’t these special offers indicate that customers are paying more than they should be? Aren’t we better off living in a world where we cultivate loyalty rather than trying to seduce strangers to abandon long-standing relationships? Is this really the best way to do business, or would businesses do better in the long run by working harder to retain the customers they have? And even if it is best for the bottom line, what is the social cost?
Meet this week’s panelists:
- Jennifer Elder is a CPA and Certified Speaking Professional who helps leaders future-proof their businesses by making smart decisions and staying ethical.
- Jim Ristuccia is CEO Peer Advisory Group Chair with Vistage Worldwide, Inc., facilitating meaningful and impactful conversations to help leaders become the best version of themselves and grow their organizations.
- Jon Strickler is Peer Leaders Group Chair with Vistage Worldwide, Inc. He is a West Point graduate and business consultant with operational experience at more than 40 companies across four continents, as well as a national champion mountain biker.
