Verizon Snubs Their Nose at Customers Leaving for Cheaper Carriers

[dgstorm]

Apparently, Verizon doesn't care if they lose customers to cheaper competitors and their indirect message to them is: "Don't let the door hit you on the way out!" At least, that's what is inferred in the latest comment from Francis Shammo, Verizon’s chief financial officer. During a recent earnings call, and in reference to a report that Verizon lost 138,000 postpaid customers in the last three months, Shammo commented,

“If the customer who is just price-sensitive and does not care about the quality of the network—or is sufficient with just paying a lower price—that’s probably the customer we’re not going to be able to keep."

An argument can easily be made that Shammo has a point. After all, companies like Apple have built their business on catering to a higher-end market with a premium product. Verizon's network has always been the best (although as the others continue to expand and upgrade, that difference is eroding). The old adage, "You get what you pay for," comes to mind.

Do you think Verizon's products and services are good enough that they can effectively ignore the loss of customers by charging more, or is this just the typical arrogant attitude we have come to see from them on many issues? Does Verizon really offer that much better value that they can justify ignoring the competition?

Source: Yahoo! (via Bloomberg)

 

[Jonny Kansas]

I think he's spot on. In my area, the choice is simple and clear. There's only VZW and AT&T and AT&T's coverage is garbage compared to big red. I've toyed with the idea of jumping ship a few times, but it always comes down to the network. Same reason I won't ditch cable...at least for internet. I get the speed and coverage and reliability that I need from VZW. Do I wish I didn't have to pay so much to get it? Sure, but it's my only phone and my main form of communication with anyone not directly in front of me and I want it to work when I need it to, so I'll pay.

I know plenty of people who've switched over to TracPhone or other prepaid plans in our area that run on AT&T's network and as little as they use their phones, it works out nice for them, but I know I wouldn't be satisfied anywhere else at this point, even if my bill was cut in half.

 

[Dusty]

I agree with them up to a point. The thing that makes me have no problem leaving VZW isn't their price. It's their attitude regarding devices. With my non-VZW Nexus 6 they keep disabling VoLTE every week or so after I reactivate it. When I call they tell me to buy a VZW branded Nexus 6. There's just no point in being that way especially regarding the N6 on their network.

So at this stage in our relationship they teeter on that fine line where device selection and service meet. I've tried the competition and they should be acutely aware that the other networks may not have the coverage density that they have, but they are extremely viable choices in large cities.

 

[Ollie]

I've never had a phone through Verizon because AT&T worked better in more outlying areas. Now I left AT&T for Tmobile since Tmobile now works wherever I need them to.

Verizon would do well to try to retain their customers because many companies that used to be the king of the hill are not in that position anymore.

All Telecoms are ridiculously overpriced, but I think that the Internet police are reading too much into his statement. There are many people that are always looking for a better deal on everything in life as opposed to being complacent and just rolling with whatever they have. He knows that there is no way other than dropping their prices to keep that demographic in house.

 

[cr6]

IMO you DO get what you pay for in terms of both cell coverage & customer service. Verizon excels at both, but they know it and it inflates their ego, as seen above. Business is business and I don't let it bother me on a personal level.
I'm completely happy with my coverage and CS interactions, so I have no complaints.
Until another carrier can offer the same level of service/coverage, I'll be with Verizon for many years to come.

S5 tap'n

 

[bsweetness]

Saying that this amounts to Verizon "snubbing their nose at customers leaving for cheaper carriers" in the thread title is a misleading representation of the statement (and in all fairness, the title of the Yahoo article that it comes from is misleading as well - "Verizon Bids Good Riddance to Customers Leaving for a Cheaper Deal"). What Francis Shammo said is 100% accurate. Could Verizon do more to price their plans more competitively? Absolutely, and they should. But even if they did that, other carriers will drop their prices, and Verizon would still lose some people to those lower prices.

 

[pc747]

Which is why I am so happy to have left Verizon. Funny how I don't even miss them and every time they open their mouths I am reminded why.

Right now there are more reasons to choose everyone else over Verizon.

Others:
1) better phones
2) better plans
3) option to buy an unlocked phone
4) still evolving

Verizon:
1) works in areas I rarely go.
(Solution) A: I have an unlocked nexus 6
(Solution) B: Buy a Verizon burner and give them the least amount of my money as possible. And keep my phone through someone else for when I am out of the dead zone.

 

[dgstorm]

Saying that this amounts to Verizon "snubbing their nose at customers leaving for cheaper carriers" in the thread title is a misleading representation of the statement (and in all fairness, the title of the Yahoo article that it comes from is misleading as well - "Verizon Bids Good Riddance to Customers Leaving for a Cheaper Deal"). What Francis Shammo said is 100% accurate. Could Verizon do more to price their plans more competitively? Absolutely, and they should. But even if they did that, other carriers will drop their prices, and Verizon would still lose some people to those lower prices.

I appreciate your point, but I disagree with part of it. I don't think the title misrepresents what he is saying. I worked in sales and customer service for over a decade, and his statement really does indirectly tell the customers, "Hey, if you think we are too expensive, then we don't want you as a customer, so feel free to hit the road." While I agree that the Yahoo story's statement does exaggerate it for effect, my statement that Verizon is basically "snubbing their noses" is true.

I do agree that Shammo's point is valid. There's nothing wrong with doing business that way, if that is what you are willing to do. If a company is willing to cater to a select market instead of trying to get as many customers as possible, that can be a valid business model.

I'm not sure it will work out for a cellular carrier in the long run though. We've seen the tech industry change rapidly from out of nowhere, and I don't think anyone can rest on their laurels for too long.

 

[leeshor]

All I read into the statement was that they were likely telling the truth. A vote for honesty, NO?.

 

[Jonny Kansas]

All I read into the statement was that they were likely telling the truth. A vote for honesty, NO?.

Have to agree with you & others. No matter how much they lowered their prices, there are people who only care about that. As soon as others matched their new pricing/went lower, those people would still leave.

Sent from my Note 4

 

[Dusty]

I agree and this is what I found out when i left VZW last summer... I can keep my wife on VZW and reduce that data plan by more than half, and keep a VZW SIM with line of service tucked behind my N6. I can use an unlimited TMo plan on my N6 and get VoLTE, Wifi calling, and should I ever choose to try the OnePlus Two or some other crazy device I can with no hassle. If I'm ever stuck in a serious jam I can just break out my VZW SIM... all while still paying $20 less than what I'm paying now. What I am paying for now is to never have to swap a SIM in an emergency—that's not a lot of incentive to stay. Sooner or later the coverage situation will become less disparate, and this is the kind of thing that will make the decision to jump ship way too easy for a lot of people.

 

[leeshor]

I've never been a big fan of Verizon or AT&T but they are the only providers that have coverage where I need coverage. Coverage is king for me.

 

[bsweetness]

I appreciate your point, but I disagree with part of it. I don't think the title misrepresents what he is saying. I worked in sales and customer service for over a decade, and his statement really does indirectly tell the customers, "Hey, if you think we are too expensive, then we don't want you as a customer, so feel free to hit the road." While I agree that the Yahoo story's statement does exaggerate it for effect, my statement that Verizon is basically "snubbing their noses" is true.

I do agree that Shammo's point is valid. There's nothing wrong with doing business that way, if that is what you are willing to do. If a company is willing to cater to a select market instead of trying to get as many customers as possible, that can be a valid business model.

I'm not sure it will work out for a cellular carrier in the long run though. We've seen the tech industry change rapidly from out of nowhere, and I don't think anyone can rest on their laurels for too long.

I'm still going to disagree. Snubbing their nose implies some sort of disrespect. That's not present in the statement nor is it present in the overall discussion from which that statement was pulled.

If anything, this is Verizon shrugging their shoulders over it and saying, "So what? There's nothing we could do would change the minds of those customers anyway, so why worry about it?"

Is that the right attitude to have? Maybe not publicly, but at least it's honest.

 

[cybertec69]

Without coverage, your device is just an expensive paper weight.

 

[Dusty]

As a side note Google Project Fi is accepting invite requests.

I just signed up.