On Twitter, SprintNews (twitter.com/sprintnews) recently posted a tweet for a new Sprint Nextel marketing campaign titled “Want to Save $240 to $480? Here’s How”. The link (http://tinyurl.com/6rv9fj) embedded in the tweet sent you to a press release titled:
“As Wireless Consumers Feel the Economic Pinch, the Value of Sprint’s Family Pricing Plans Trump Verizon and AT&T – Families Can Save at Least $240 and Up to $1,000 Annually with Sprint Wireless Plans”
I applaud Sprint for trying to reach out to consumers in order to stop their spiraling churn (loss of customers). For the past couple of years, right after their merger with Nextel, Sprint has committed dozens of business blunders, resulting in the loss of several million customers – and their stock has dropped from +$20 to less than $2. The two “blunders” that I can easily remember were their decisions to ignore the Nextel customer base and Nextel iDEN network – which operates separately from other cellular networks, such as CDMA (Sprint, Verizon) and GSM (AT&T, T-Mobile) – and to “streamline” their customer support organization.
I don’t think that Sprint realized the customer loyalty in their Nextel direct connect product (the push-to-talk walkie-talkie feature). Nextel users, who loved using direct connect, were almost as loyal to the Nextel chirp as Macintosh users are to their Macs. Sprint neglected to maintain or expand the Nextel network, and once-loyal users jumped ship to other carriers, who offered free mobile-to-mobile calling as a way to squash the unlimited direct connect feature.
Many of Sprint Nextel’s rate plans for the Nextel/iDEN network included free unlimited direct connect, but users still had to pay $5 for unlimited mobile-to-mobile cellular calling. Since the other carriers already offered free mobile-to-mobile, it was easier to switch from Nextel to another carrier.
But what made it even easier to switch was the poor customer (no)service experience. Sprint decided that they didn’t need as many customer care reps or sales people (who besides selling, also performed account management duties), so they laid off hundreds. Customer care then went downhill, and it gave the direct connect die-hards another reason to justify leaving.
So now, Sprint is playing catch-up. Last summer, they finally offered free mobile-to-mobile calls on many Nextel rate plans (as well as unlimited nationwide direct connect). If they had only offered this two years ago, they might not have bled as badly… They have been very proud of their direct connect and other voice add-on’s, waiting too long to integrate them into their regular rate plans as a free feature.
However, they have trumped the other carriers with an $99 unlimited voice plan that included data – which costs as high as $50 per month – text messaging, TV, music, UFO tracking, etc. The other carriers simply offered unlimited voice for $99. And, their other voice rate plans are just as competitive (if not more so) than the other guys.
Sprint is making headway. They still have great products, customer service is improving, and they are rededicating themselves to supporting the Nextel network. They still have over 50 million subscribers, and I believe that they will turn the ship around. Coverage is still as good as Verizon – Sprint just doesn’t shove this fact in your face like Verizon – but maybe they should (if I see one more “we have the network” commercial, I am going to shoot my TV).
But, in the meantime, what else can Sprint do to stop the carnage? Well, they could copy our business model. My company, WideVision, specializes in “wireless invoice management”. Simply put, we review your monthly wireless invoices and determine if you are paying too much for the wireless services you need. The wireless carriers change their rate plans all of the time, but many businesses don’t take the time to see if they are on the right rate plan for what they need. They simply just pay the invoice month after month, and then when the invoice gets too high, and the T-Mobile salesman knocks on their door, they jump ship.
Sprint needs to keep the customer base that they have – many of whom are still loyal Nextel direct connect users. Sprint should reach out to their current customers and assist them in “fixing” their rate plans. But why would a company want to voluntarily write down their own revenue? Well, they don’t – and they won’t (and I don’t really blame them).
We have reviewed thousands of invoices, and there is rarely an account that couldn’t use a bit of tweaking – which results in direct savings. Even when we review accounts that are being managed by other similiar companies, we can usually still find additional savings. Invoices have to be reviewed each month, and changes need to be made to accomodate changes in your business. Many of the accounts that we review have hundreds to several thousand phones, and we typically can find tens or hundreds of thousands of dollars in annual savings – and with a return on investment of more than eighty percent.
So, to save $240 to $480, switch to Sprint. They have good products, and things are improving. To (potentially) save tens or hundreds of thousands of dollars, give us a call. We can only hope Sprint doesn’t catch on to our idea.
Tony Darnell is President and CEO of WideVision LLC.
WideVision is a wireless consulting firm, specializing in invoice analysis and complete wireless lifecycle management – visit widevision.com.
AccessGPS is a free GPS tracking application for your Nextel phone – visit accessgps.com.
Disclaimer: Tony owns a ton of Sprint stock, and is a Sprint Nextel authorized dealer.
Filed under: Wireless | Tagged: account management, accounting, AT&T, Barack Obama, Blackberry, business, cell phone, cellular, expenses, finance, George Bush, GPS, increase profits, information technology, mobility, Neal Boortz, Nextel, rate plan analysis, reduce expenses, Sprint, T-Mobile, telecom expense management, tony darnell, Verizon, Wireless |
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