Their thinking will be that it's pointless to spend money on existing customers. Said outlay won't generate anymore income, so they outlay it on advertising, and generate even more income.
It seems to be a service company thing (Electricty, Gas, Broadband, Phones) that for some reason the business model of gaining 10 customers and losing nine is best. What they don't appreciate is that said nine will never come back, and of the ten gained, nine will leave. It's a quick buck but it will eventually fail. Said nine customers will tell others about their bad experiences. Happy customers will generally say little, and occasionally recommend, but not to the extent that dissatisfied customers will tell people to avoid them.
Years ago, I was told that fifteen sales will generate one sale, but one unhappy customer will tell fifteen people about their bad experience (or something along those lines).
Maybe they should re-invent themselves. Get the guy from Cillet Bang, and with louder advertising, they can be Shout Shout.
Edited by camieabz (Mon 04-Oct-10 13:57:59)