Sendecki’s Blog

It takes about C$300 for a cell phone company to acquire a new customer but costs only a fraction of that amount to keep an existing one. With so much to lose on the bottom line, why is Canadian GSM carrier FIDO doing all it can to frustrate its current customers during the launch of the iPhone 3G?

Check out this thread on Howard Forums for the skinny.

Last year I bought a BlackBerry from FIDO. I liked that it provided a wireless email solution that helped to convert otherwise unproductive time during my commute. It didn’t exactly untether me from my desk ot office, but it did help me get more done. To that end, I decided to upgrade this week to the iPhone. See, owing to the amount of data I consume, I had accumulated a lot of goodwill credit with my cellphone provider (FIDO) and was able to upgrade my handset at no cost.

So, a ‘free’ iPhone 3G, eh? Doesn’t sound too bad, does it? Not at all. So, I ordered one on July 29. I’d love to share with you my impressions of this new piece of kit but, unfortunately, I haven’t received it yet. FIDO has delayed shipment on the new handset a total of three times!

I was told by a FIDO representative that I would receive my handset inside of a week of placing the order—by August 7. After calling again today, I was told that I should receive it by August 22. This is almost a full month after I placed my order.

August 7 may have been an estimate, but then the Fido representative should have clearly stated that it was indeed an estimate. When someone says: “You will have it no later than August 7″, I take that to be a confirmation of arrival and not an estimate.

I’m not surprised by the delay—the launch of the iPhone 3G has been well received. Many people around the world are still waiting on the Apple handset. However, I am surprised that the people at FIDO have decided to delay delivery to their existing customers until August 22. Moreover, I am frustrated by the lack of communication from FIDO.

If you are a new customer, you could walk in off the street and purchase a handset right now. Bricks-and-mortar stores in Toronto and Montreal have stock on the shelves. This stock, however, has not been made available to existing customers. If you’re an existing customer, you must face delays and stock constraints. This is the reward FIDO’s seen fit to provide existing customers—those who’ve been with the company for years and handed over their hard-won money.

It’s unfortunate how Fido stumbled into such a good product opportunity, but have had absolutely no clue how to deal with the demand. All of the money they spend on turning prospects into customers tends to dissipate once a customer comes on board. As a company, once your customer is on board, you must make sure they are happy and not looking elsewhere. Are you giving them the same economic benefit you are giving new customers? If not, you are churning your customer base.

You can’t promise one thing and deliver another. Eventually, that’s going to come around and bite you.

The reality is renewing existing contracts is more profitable than having to find a new customer because the relationship has been already consummated. So why isn’t FIDO doing more to make certain their present customers are being taken care of?