Retrospective discount for loyalty

I’m very happy paying for 67mbps rather than cheaper for lower speed. But, now Cuckoo has proven to be such a success for me, could retain monthly contracts but give a bonus/discount at market time periods (12 months and multiples thereof)?
E.g. every 12 months, discount n% of total paid that year (which allows for your prices to change month to month should you need) off the 13th month, capped at, say, half the cost of the 12th month (if you’re prices came down a lot, avoids the earlier months at higher rate causing a 100% discount then customer leave).
Maybe spread the discount over months 13, 14 and 15 to help retention.
Just a thought, to stop customers being tempted to save a few quid by committing to lower cost but lower speed long term broadband contracts.

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Hey @MattJKing71.

It’s a really interesting idea and one we’ve been grappling with.

The fundamentals of our business mean we need to keep a balance between how much it costs us to acquire new customers and the profit we make per customer. We invest our time and effort in building better products for our customers to manage their home internet so that people don’t want to leave. That’s why the one-month rolling contract holds us to that promise. Because anyone can leave at anytime and keep us on our toes. We want to reward loyal customers however we still have to fund the wholesale cost per month for each customer that stays with us (alongside other costs like billing, service and the general upkeep of the business)…

We do think there’s something we can do here, however we just need to give a bit more time to really understand the core long term economics of our business so we can calibrate any rewards to loyal customers (in the meantime we might even launch a crowdfund and offer exclusive access to loyal customers). But this again is a work in progress.

So in summary, watch this space. We’re on the case!

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A new customer here (going live 4th October, hopefully). While I agree that a loyalty discount would be nice (I will leave the implementation ideas to others), I would argue that customers who stay get more value from staying with Cuckoo due to the £60 upfront cost. I like that your suggestion leaves in the idea of monthly rolling contracts which was a huge factor in my decision-making.

As an example, the other provider I was considering (Zen) offers a 12-month contract with no upfront cost, but a higher monthly cost and slower speed. When I actually compared the cost after 12 months, Cuckoo came up slightly cheaper (and a lot faster) than Zen, getting even more value over longer time periods if the prices stay the same. That’s on top of having a rolling contract instead of being tied for 12 months. Sure, that’s just one example where it happens to work out this way. I just didn’t consider the other (cheaper) providers as alternatives due to the seemingly terrible service they provide.

tl;dr: Cuckoo customers already get some value from staying loyal, thanks to the £60 upfront cost. Implementing a loyalty discount would make them even better.

Thanks :relaxed: It’s certainly good to discuss openly, and glad this platform is very positive (not that there’s anything to moan about).

I’m sure you won’t oany problem. The £60 goes straight into Openreach, so zero profit for Cuckoo.
I joined/connected on 1st of the month, got no bill that month, but end of second month got billed for both months (pro-rata for first month, but in my case it was a full month). So, nice for my cash flow that they didn’t rush a bill out ASAP.
Connection was a breeze (as I already had phone socket, switching from Virgin). About 20 minutes tops.
With my BT exchange I can’t get the full 67mbps average (again, not Cuckoo’s fault) but I get 55mbps next to the router and no more than 5mbps less upstairs - ie good router provided and stopped needing my WiFi extender :relaxed:
All the best.

Exactly this. With other providers you’re paying for this in the combination of your monthly fee, the length of your contract, high exit fees and poor service (often lower speed than advertised or more sinister sales tactics). Getting off-topic here, just wanted to point out that there already is value in staying with Cuckoo for the long haul. Frequent switching means Openreach gets paid your money one way or another. I personally hate that many providers give better prices to new customers - it shows their focus on getting (and tying in) new people instead of good service and customer retention.

Glad everything worked out for you! :bird: :+1: