3 Bad Sales Lessons Courtesy Of T-Mobile

by Paul Castain on January 12, 2014


In the latest attempt to lure customers away from their competitors, T-Mobile is now offering to pay the early termination fees should you decide to break your contract and go with them.

I suspect they will generate a considerable amount of revenue but don’t let that keep you from learning the following 3 bad sales lessons!

Lesson # 1: Don’t ever disrespect your existing customers like this! How is it disrespectful? Well, since they’ll pay up to $650 between the ETF and other incentives to people who have aren’t currently doing business with T-Mobile and the existing customers get nothing I’d say there you have it!

So the new guy get’s $650 and the existing customer get’s nada? That’s an awful message to send!

Nobody and I mean nobody should get a better deal than your existing customers. Period!

Time out: On a related note, this is why I don’t negotiate! Everyone (prospects and clients) are given the same pricing and the same, straight forward way to reduce my fees . . . buy more, save more! None of this I value you more than my existing clients stuff. If you want loyalty, you need to demonstrate your loyalty first and speaking of which . . .

Lesson #2: It can attract the wrong types of customers. And what are the wrong types of customers? I don’t know, let me see, oh yeah, the kind that would break a contract and display no degree of loyalty. I’m probably going way, way out on a limb here but what makes you think they won’t pull that sh*t on you someday? No thanks!

And when did it become OK to break a contract just because someone agreed to pay the penalty for you?

Lesson #3: It encourages cut throat tactics with your competitors! Every time I hear of these tactics, I always hear about the counter measure by a competitor and they go back and forth until they completely bastardize their industry.

I’m wondering if sort of a #3 1/2 could be that it might just send a message of desperation to your prospects which could result in anything from them using that as a springboard to hit you up for more or running for the hills because you look like you’re hard up?

So please pardon the rant but I’ve seen this tactic play out way too many times with cellular, cable, uniform companies, cleaning services as well as several other B2B industries.

We really have to resist our urge to court the wrong kind of new customers at the expense of existing customers as well as our integrity!

Your turn . . .

What do you think about these kinds of tactics and have you ever been in a situation as a loyal customer where you noticed incentives given ONLY to new customers?

Please scroll down and share your thoughts!

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