My Imajinashin

Mashable reports that AT&T’s CEO, Ralph De la Vega is considering a pricing strategy that charges heavy users of data (read iPhone and some Blackberry Bold users) a higher price for data usage. Maybe this will surface as a surcharge, or just creating a variable data plan rate. Either way, this feels counter to the very basics of effective customer relationship management.

I can kind of see where what may have been the genesis of this idea: We charge people who talk on their phones more than those who talk less, right? shouldn’t the same apply for data? But, here’s why it’s different:

1. If you’re using a lot of data, you’re more than likely to own an expensive smart phone. If you own an expensive smart phone, the more likely that your NEXT phone purchase will be an expensive smart phone and the more likely that purchase is going to come sooner rather than later. As AT&T, you don’t want to lose the revenue from that future purchase.
2. If you’re using a lot of data, you’re more than likely already paying for an expensive data plan on top of an expensive voice plan. As AT&T, you don’t want to lose that rich, recurring revenue stream.
3. If you’re using a lot of data, you’re more than likely very engaged with social media and you just might be an influencer amongst your social group when it comes to technology adoption. As AT&T, you don’t want socially influential people telling their friends how much they got screwed by you and how they can’t wait to move on to a new carrier
4. If you’re using a lot of data, you’re more than likely the kind of customer that handset manufacturers love to try and attract. As AT&T, you don’t want handset manufacturers to bypass you with their latest and greatest handsets because you’ve turned off (or worse yet, outright lost) all of your technology early adopters / heavy users.

Notice that these things aren’t necesarily true of heavy voice users today. Also notice, that this decision may shift lucrative handset sales revenue to the competition, reduce retention rate for ongoing service revenue, create a set of influential detractors for the brand all of which may ultimately affect their supply relationships. Not good.

So, Mr De la Vega, I for one suggest you reconsider. And, while you’re at it… can you please reserve the best discounts and promotions for your existing customers who you want to keep instead of new ones who you’re courting?

Filed under: Digital strategy | Tagged: at&t, crm, customer strategy, iphone, linkedin, mobile