It is apparent that the speed decrease I mentioned is not conducive to keeping this post on topic so just ignore it.
IMHO, the percentage value is easy to relate to without the need to quote exactly what I was offered.
If Virgin Media reduced your loyalty discount by 50% next time around would you feel they valued customer loyalty?
To kind of give it a nudge back to the core issue
Yeah, I see your point. Why would a LOYALTY discount decrease over time.? Well the obvious answer is cost saving, which is likely why these discounts seem to be shrinking. But then its not really a loyalty discount is it? Its a "you rang up and haggled so we bucked you a few quid" discount.
Some (I hope) relevant facts
Any service supplier takes upfront costs. Mostly these are written down over 3 years. So outwith the write down you are literally cheaper to supply to (all other tings being equal) than a new customer.
VM are PARTICULARLY affected by this- sometimes needing civils, but at best engineers time, kit and initial provisioning, set up of billing etc.
SO whilst "churn" is good for the market in most service providers views, VM are more adversely affected by it (financially) than other suppliers in the same market.
SO taking that in the round it makes sense for VM to retain customers rather than get new ones- the exception being in the project lightning areas. Someone somewhere needs to re-do their sums. Particularly in light of the 14 day quitters, where ALL the costs are incurred and no financial benefit returns to the business (a relatively new business issue)-
STOP SELLING IN OVERSUBSCRIBED AREAS- where Ill warrant most of the 14 day quitters are... that just incurs costs (especially with the 14 day rule) saving yourselves the cost of the sales people, cost of support and refunds for people affected, the cost of installations that return no investment and invest in your loyal customers...
I think Virgin do themselves no good with the so called loyalty discount as I found out when my bill went up this month due to the fact my loyalty discount finished and my first question was does that mean I'm not loyal anymore. Retentions were very polite but could not do anything. I was on the 152, xl TV and phone weekends. They could drop my package to keep around the same price, I had a better idea, drastically cut the package down to 50mb, basic tv and the phone. I pulled the trigger and did this and as far as the bb goes have hardly noticed a difference if any, phones the same, tv at the moment only really missing sky sports news. I have saved £34.36 per month doing this all because of a £5 or £6 pm loyalty discount. Im not saying they are right and I am wrong or vice versa it just seemed a strange way of treating me after 14 years or so with them and financially I wonder who is the loser.
In my case VM have always had good retentions deals, we have BB & phone but to save money we pay our line rental up front, along with the retention deal our monthly price is extremely good.
Compare that to Sky were we had all TV channels apart from sports & the best they offered last year was £10 off for 10 months (previous year it was £10 off for 12 months so retentions offer became worse), cancelled this year & all they offered was to reduce the package to basic to save money + 25% off the cost of £22, new customers can have basic TV for £20 & in the past a free TV or laptop as well. I told them that I can get the channels I watch for £5 pm via NowTV.
Virginia/Doctor9fan. If I have helped please give me Kudos.
I think the OP was talking about the reduction in a loyalty discount, not wanting the package for 50% less, I did not take his comments as greed. If you consider my earlier post, I had a loyalty discount of £5 or £6 per month taken away, so I downgraded my package resulting as I see it Virgin losing more money than they have gained. I am not anti Virgin , they are a business and can run it however they deem fit, but the pricing structure for longstanding customers is sometimes mystifying.