Bell's Bills - Part Three....

Today, I’m finishing my rant about my local phone company and auto renewal being a poor excuse for marketing. Instead, I recommend making the effort to ask for the renewal.

So, how can I think that an expensive proposition like asking for a renewal be more profitable than auto renewal?

The reason is obvious. It gives you a chance to do what marketing is all about: SELL. Upsell. Cross-sell. Add options. Ask for referrals.

Auto renewal is a poor excuse for true marketing. Sure, you'll lose some customers by making it a conscious effort to ask them to renew. But you'll gain back more profits through selling upgrades, cross-selling and referrals. And I believe you'll find you'll also increase the lifetime value of your customer by building a deeper relationship. All the way around you'll grow your bottomline by treating your customer with respect.

And now I've had another interesting interaction with the phone company.

Since I was auto renewed at home, I got a postcard at work from the same company. I signed a year-long contract in February. Now they've decided to raise my toll free rates -- by 60%! I have 30 days to find a new toll free supplier -- or accept the increase. What kind of contract allows one side to raise rates except for an oligopoly.

Homework: What can you do to make customers feel you really, truly, honestly respect them? When is the last time you thanked your customer? Don't let customers feel taken for granted.