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Question

Why does Koodo offer special deals to certain customers???


Salty take here but it is absolutely ridiculous that Koodo would offer only a few customers certain deals and it is not like it is a secret as there are so many social platforms where customers discuss these things.  Like give me a break, offer it to everyone and perhaps you would have 2-3x more customers take a tab if you did.

The sad thing too is that if you inquire about the deal with them they look at you like you are an idiot or play dumb, what a terrible way to treat customers. It is really insulting.

 

For those interested in what I am referring to is certain customers are getting an additional $100 or even $400 tab credit on Pixel 8 Pro.

 

So majority of customers pay: $21.83

Few pay: $17.67 ($100 bonus)

Select lucky few: $5.17 ($400 bonus)

 

How does that make sense? Is it supposed to be a secret? Well it’s not, if anything you are polarizing your customer base. We do things so backwards in Canada. 

 

Sorry for the rant but felt the need to voice my frustrations.

 

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10 replies

Userlevel 7
Badge +4

Hi there,

it seems that the reason it is individualized is due to customer eligibility. What the eligibility is for certain promotions however, is a decision on Koodo’s corporate side of things and would be an automated process. But it could really be anything that makes someone eligible. Why a rep would “play dumb” is because they don’t control the credits or know what everyone has at any given time. They would only know if they see it on the account, so it’s not on them as they would have no idea. You could always attempt to reach out to their loyalty department via a call back and see if it amounts to anything, as they would be the ones to add promotions to an account, not a regular rep. I’ll also include where I found the info for eligibility (from Koodo terms of service)

 

Thanks for the reply Oliver C!

 

I agree that reps shouldn’t be blamed nor am I condoning that. 

 

I guess my frustrations lie with those who make these types of decisions. In today’s social world people talk so when a minority of random customers receive incredible promotions/deals/promotions whereas other customers who seem to be in the majority are paying 2-3-4 times as much for the exact product you are ALIENATING your customer base for absolutely no reason. You do not see this type of tactic in other countries and shows how bad we have it here in Canada. I would really love to push this issue with the CRTC. Things need to change!

Userlevel 7
Badge +4

I hate this practice as well.  They call it personalized but really it is to maximize their revenue based on how likely we are to leave or spend. In a way I feel like it is a form of discrimination.

I noticed other companies in other industries do the same.  For example, the McDonalds apps give different amounts of discounts based on how often or how recently you have ordered from them.

WIth Koodo, I feel the algorithm they use to discern who gets what promo is more complex to decipher.

This is 100% a form of price discrimination! I hope that as consumers become more aware of these tactics and see the disparity in pricing that exists for the exact SAME product & services that it creates anger and pushes consumers to challenge these practices. I know this is wishful thinking but it has to start somewhere, otherwise our acceptance of it will make us complacent. This industry in particular is notoriously bad for implementing these tactics and Canadian consumers seem to be punished the most by them.

Good luck everyone in finding your best deal out there because sadly LUCK is what you will need.

Userlevel 7
Badge +4

I agree it is a form of price discrimination, but just like age related price discrimination it is tied to discounted rates, which seem more universally acceptable.

For example, children and seniors tend to get a discounted rate.  But everyone else is charged general pricing.  This can be similarly viewed here, where specific criteria generates a special promo discounted plan.  

It is sneaky but effective.

Unfortunately I know that price discrimination exists but I just think when you are talking about cellular contracts that involve phones and plans the discrepancy in pricing is too substantial to be overlooked.

 

For example here is my experience with the Pixel 8 Pro

 

My Offer: $34 + $21.83 = $55.83 online. So I tried calling in to inquire about the known deal and when I did I actually got an even worse offer!

vs

Targeted Offer: $34 + $5.17 = $39.17

 

Difference is $16.66 per month x 24 months = $399.84. To me that is considerable difference and for absolutely no reason whatsoever except I wasn’t “lucky” enough to receive it.

Lets use the student/senior example you brought up. A movie theatre offers a discount using this strategy but the difference is not usually outrageous and is also easily justifiable. I am in my 40’s and I know that I don’t qualify for the student/senior deal because of my age. However when cell phone companies randomly select customers and they are saving hundreds of dollars then I have a very real issue with that. How do you think your customer base is going to feel about that? 

Userlevel 7
Badge +4

Differences in promotions are widespread. RBC & TD is doing the samething with their account and credit card. At the end of the day, they are  business designed to make money. They aren’t  non-profit organizations that serve a higher societal purpose.

In your case, I would monitor their website and promotion monthly. Some promotions actually were available existing customer.

Userlevel 7
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I’m not saying I agree with the price discrimination.  But if you want to make a difference, I would suggest you vote with your wallet and support companies that do not have this practice

I appreciate the conversation so thank you to everyone who has contributed.

Look I get it, these companies do what they do in order to make money as they are a business after all. Yes as a consumer I have the right to “shop around” and I hear this sentiment quite a lot.  It seems like the popular opinion out there for consumers looking to get the best deal possible. But I have to ask the questions, to what end?? Am I expected to change providers every 6 months? 8 months? 12 months? in order to chase a price? I was with Fido for 25 years and I recently switched over to Koodo because I took advantage of a better deal and then 4 months later they raised the price on the plan. Do I leave Koodo after 6 months? Besides this strategy usually only works if you don’t have a contract (BYOD). 

 

I know Koodo have competitive deals on smartphones and plans because other customers talk about them online but for some reason Koodo has decided that not all customers can gain access to them and the reason is 100% RANDOM to me. Usually with price discrimination you can understand the logic behind it. Student/Senior discounts - based on age. Travel industry - based on time. Price discrimination has absolutely no place here. Run a promotion allow all qualifying customers to gain access to it. These games that they play with pricing is absolutely ridiculous!

 

Userlevel 7
Badge +4

 

I Yes as a consumer I have the right to “shop around” and I hear this sentiment quite a lot.  It seems like the popular opinion out there for consumers looking to get the best deal possible. 

 

I know Koodo have competitive deals on smartphones and plans because other customers talk about them online but for some reason Koodo has decided that not all customers can gain access to them and the reason is 100% RANDOM to me. Usually with price discrimination you can understand the logic behind it. Student/Senior discounts - based on age. Travel industry - based on time. Price discrimination has absolutely no place here. Run a promotion allow all qualifying customers to gain access to it. These games that they play with pricing is absolutely ridiculous!

 

 

If you are looking for the best deal possible, then yes you will need to change plans regularly.

The CRTC and the wireless code has made it extremely easy to port your number for that reason.

I wish I had a better understanding of Koodo’s algorithm to get better deals too.  Personally I think it is a combination of usage, compared to your existing plan.  

You can report them to the CCTS or the competition bureau if you would like.  But this is what Koodo wants to do, even if we don’t like it.  You can only control what you can control