noel.wester@webtribe.net wrote:
> Reestit Mutton wrote:
>
>>If a retailer decides that it doesn't have to pay any attention to the
>>courts then it only takes a word in the network's ear, with a copy of
>>the judgement and their supply could be cut off. If a single customer
>>has little effect in this area, a pattern of such behaviour would
>>certainly result in the supply being cut off.
>>
>
>
> Whilst I bow to your undoubted expert knowledge in the field of mobile
> communications (as evidenced by your excellent website), I think you
> are being naive here.
>
> Money talks.
>
> If someone's putting £50k (say) worth of business per month my way
> (not unlikely in this industry) I certainly wouldn't come down too hard
> on them if I get a letter from a disgruntled customer telling me their
> business practices are borderline.
>
> It always makes me laugh that computer magazines undertake "impartial"
> reviews of machines from retailers. Yeah, Dell are putting £100k per
> month of advertising revenue their way so they're really going to say
> "this Dell machine is awful, don't buy it".
>
> Money talks.
>
However...
It's a known fact that Networks have massively culled outbound call
centres recently because of the volume of bad press that they have
generated due to the habitual misrepresentation employed by some of them
("Hello Sir, this is Orange calling to tell you that you are entitled to
a 10% line rental discount as a loyalty bonus").
If a retailer has every intention of ignoring a portion of its customers
to the point of receiving a court summons (in the hope that a portion
of affected customers simply give up) and then ignoring the judgements
set against them then the same body of steam will build up and the
networks will eventually act, in the first instance by dropping any
direct relationship and in the second instance by placing particularly
bad retailers on blacklists that distributors shouldn't deal with.
It has happened in the past (though not necessarily because of cashback
related issues).
One further point to note is that networks have always hated the
cashback phenomenon. They've just not known how to effectively curb it.
Chances are that the type of retailer that would find itself in this
situation is also the type of retailer that would attract exactly the
wrong kind of customer for the network (one that decreases its average
customer's monthly spend and increases its annual churn rate). It would
likely also be in the network's interest to nip that retailer in the bud
and improve its financial stats in one fell swoop.
Just my two penn'orth...maybe naive...maybe not...
cheers,
RM
--
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