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I suspect it is a result of internally misaligned incentives resulting in them valuing new customer money more than existing ones. It is one thing to alienate a
by Nasrudith 7y ago
I suspect it is a result of internally misaligned incentives resulting in them valuing new customer money more than existing ones. It is one thing to alienate a loyal smaller base to gain a larger one, it sucks to be on the wrong end of but makes sense. In spite of the obvious that they have equal impact. I suspect it is because of who gets bonuses from it vs blame from losses. If sales and retention are separate departments then sales wins politically because they can generate new customers instead of just stemming losses.
Anyway the reason I think those dynamics instead is because I have seen it in cable, garbage collection, ISPs, and banks. They could be attempting old school dark patterns to exploit inertia and cognitive load in customers but that is a pennywise pound foolish move - the new customers have sales overhead expenses in addition to "maintenance" recurring costs.