cust care agents makes at&t loose a lot of money
cust called in stating that he cant make or recieve calls on his old out-dated cellphone and wants to get a warranty replacement...seeing that it was bought 4-20-2006, i informed him its oow as per date and offered him oow options...cust ranted that he is a loyal cust and ought to be given a new phone which costs $65, if not he would cancel 2 of his accounts with us... as per cust rule, i checked out his account hoping that he indeed is a loyal customer and tried to check if we could bend our backs over for him...upon seeing that his ltv is 1 and churn potential-5, and taking into account that cust is oow for 3 months now, i adviced him we couldnt give him a replacement phone for free...he said he'll cancel his accoun...
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1- to keep churn low.
2- it cost about $450.00 to get a new customer to replace a lost one.
a 72.50 credit to an account that may keep a customer around at least another year or so helps out more in the long run.
credits that are given to an account are figured in monthly and quarterly, so they set aside x amount of money to cover potential cost of credits.