Charge Tab balance to next bill when a customer wants to upgrade instead of paying $X in store

  • 8
  • Idea
  • Updated 5 years ago
  • Implemented
Similar idea to what Dennis L just posted but I actually want to see Koodo change how Tab redemptions work. Paying off Tabs early is still a silly concept to me except in one circumstance: upgrading. I want Tabs to be charged to the customer when they start fresh with their new phone. New phone = new Tab. Makes sense, yeah?

It's much simpler for customers to understand and it's easier for both the reps to deal with in store (less hassle/confusion in the POS software) and the customer to pay. "Oh, I just have to pay out my phone on the next bill, that's cool."

I'm going to point this out: every other carrier deals with subsidy repayments using this method. The upgrading customer only pays whatever is required in store for their new hardware and any old device balance, early upgrade fee, Tab, etc. is put onto their next invoice. In fact, Telus actually gives us the choice of putting it onto their next invoice OR the customer can pay in store with a credit card. Awesome!

I've literally lost sales over this. I've had upgrades ready to go and then walk away from me or my staff simply because they didn't have the money in store for their new phone. They said they'd be back once they get the money, but when I call them back to ask about their upgrade, I found out they got their phone somewhere else. Not cool!

This issue gets compounded when people like me, at Mobile Shop, have stupid limitations put on us... our POS only supports $50 Tab redemption amounts. That means if a customer has a -75 Tab, we can still only put $50 onto their Tab so they'd have to actually pay MORE than what they're entitled to be discounted in store! What do I do about that? Tell them to go somewhere else? Like an actual Koodo shop, that can do exact $ amounts, or Best Buy/FS, who can do $5 intervals?

Think of all the calls to channel support my company would no longer have to make... Koodo would save SO much money and time in the call centres.
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Jonathan I, Mobile Master

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Posted 5 years ago

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Curtules

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In the long run, doesn't it just work out to the same thing? The only difference is paying out of pocket when you purchase the phone versus paying on your next bill.

And a bill can affect your credit rating if you can't pay it right away (who knows what can happen between the upgrade and the next bill), but if you can't pay for a phone right away you simply save a little until you can.
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Some random Mobile Master, Mobile Master

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As much as I feel for Jonathan and find the limitations put on Mobile Shop as stupid as he does, I have to agree with Curtules that customers not having money for their phones is more an issue with themselves than Koodo's concern. If Koodo did let people go with a new Tab before the old one is paid off on the next bill, the outstanding amount they owe Koodo could potentially be doubled.

Let's take the example of someone on Tab Large. Customer drives off with $500 phone in pocket. Throws said phone in the ditch and drives back to the kiosk to get a new one. Gets another Tab Large, with current Tab being added to next bill. At this very moment, customer owes Koodo not $500, but $1000, because there's no guarantee the customer is going to pay the bill. That's a bit much, me thinks... At these amounts, Koodo basically becomes a bank, and I can't bring myself to think this'd be a good thing.
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Jonathan I, Mobile Master

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I still think it's a good idea because it's simpler. EVERY other carrier does it this way. Why does Koodo insist on doing it in store? Is there any viable reason? I'd like to know.

Worried about customer not paying the bill? Well then they wreck their credit rating and that's their own fault.

Customer should save up for in store purchase? Sounds an awful lot like Tab small. Then why did they start offering Tab Medium and Large? Customers can get a smaller in store price now. So the risk of a high subsidy going to collections was already thought of and implemented anyway.
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Some random Mobile Master, Mobile Master

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Jonathan, I get most of the idea you're proposing, however, the example I gave in my post above is very real: the possibility for Koodo to be $1000 in the hole for a single customer does exist (granted, not every customer would do this, but we all know some people do not care about their credit rating being in the dumps). The fact that Koodo takes into account people going to collections is even sadder because it HAS to have an impact on everyone's monthly plan price.

I never saw a problem with having Tab Small only like it was before. It's madness to be given a $500 credit by your carrier anyway, but that's only my opinion (millions of subscribers would surely disagree).

I'll say it again: if we want simpler things, and I really mean simple, we need to pay for our devices (like we do for everything else except for car and house) and enjoy lower monthly rates. Simple as that.

But I do get your point Jonathan. Given the actual system is likely here to stay as awful as it is, it could still be made better.
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Curtules

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I think that the main difference is ending a contract versus re-applying money to a Tab. With other providers you're strictly working with a timeline, whereas with Koodo you can pay off your Tab sooner than the two year limit if you pick a higher priced plan. (Or if you generate a lot of supplimentary usage charges, but let's pretend to live in a world where no one does that.)

With Koodo, you are paying off your phone from the first bill onward with points that are given to customers as a gratuity. More like paying off a loan than anything. There are really no contracts to cancel.

I'm not saying it isn't needlessly complicated. With the new CRTC rulings Tabs are mostly obsolete since people don't have the option to wait out a 100 month time period to pay off the phone but keep a super low plan. Tabs still give the option to pay off the phone faster than the other guys.
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Sumaya K.

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Thanks Jonathan for your idea. I'll take it back to the team and discuss it further this week. 
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mattjs

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Love this idea. Similar to how Rogers works as well. Want an upgrade? Walk into the store, sign the docs, walk out with the phone. The amount owing posts onto your next bill.
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Jonathan I, Mobile Master

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Rogers/Fido post the ENTIRE amount, including the hardware price, onto your bill. Bell/Virgin and Telus only post the upgrade fee (if any) on your bill and then you pay the hardware price in store.
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Jonathan I, Mobile Master

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I'd also like to point out that I've gotten channel care reps to do this 4 times. I know it's a case-by-case basis but it's obviously possible and I want it to become the norm.

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