Why no loyalty for loyalty?

[Fann Linn]

Having just spent the last 6 weeks renewing car insurance, broadband, TV and landline, and electricity, I'm left with the question, why is there no loyalty for loyalty?

True, I was offered some reductions from my own suppliers, but overall I switched all to new ones as they all offered better deals for new customers.

I'll probably repeat this merry dance and return to AIG, Eir, ESB and Sky next year, but Im asking the question how can it be economically viable to have me and countless 000s move from Billy to Jack in a limited pool within this island rather than staying with the one initial respective supplier?

[490808]

I think Churn is the answer.

Its a term that describes the vast number of people that move service providers every year. When tens of thousands of customers move each year they have to move to someone else so if you loose five thousand customers you probably gain the same number as the market size remains the same.

Edit> But as a customer it would be nice to see some loyalty for loyal customers.

[CelticRambler]

Having just spent the last 6 weeks renewing car insurance, broadband, TV and landline, and electricity, I'm left with the question, why is there no loyalty for loyalty?

Because customer inertia is more profitable. Simple as that. More than enough customers are quite happy to accept a quiet 2 - 5% increase year on year than go through the hassle of looking for the best deal from a dozen different providers, all of whom offer a package that does and doesn't include elements that you may or may not need. The "churn" customers aren't really worth trying to retain, because chances are whatever you offer them this year, they'll switch to someone else next year to save fifty cents a month.

[Saint_Mel]

Can't remember the last time I had the same car insurance provider 2 years in a row

[95438756]

Because the irish Market is too small. I'm far more annoyed with the Adverts from the Providers in print and online tbf