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Why do on account customers get less value than open term?

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Frequent Poster
Posts: 47
Registered: ‎12-06-2012

Why do on account customers get less value than open term?

by Frequent Poster crosis Frequent Poster
Message 1 of 4 (956 Views)

I struggle to see why vodafone value loyal customers less than floating ones? Is anyone from Vodafone able to advise please.

 

I am currently on an Open Term Red $69 plan. It is a GREAT plan with unlimited talk and text to NZ and Aus and 1.5gb of data. I am a huge fan of Vodafone as I travel internationally often and my phone works wherever I am (I have posted before about why roaming was the reason I moved to Vodafone).

 

So I was just in my local vodafone outlet to buy a new phone and they said I could upgrade my phone at a discounted price if I signed for 24 months. Super.... well maybe not. When looking at it more closely the on account plan only has a limit of 500 minutes talk (not unlimited) and only 1.25gb of data (not 1.5gb).

 

While I have no intention of moving from Vodafone surely it is better for the company to lock me into a plan. By offering the same terms you would have done so. Now instead I would rather pay the full price for the phone and if I wanted could move to someone else tomorrow.

 

There must be a reason why month by month open term get better deals, but I cant see it. Welcome any comments.

Ninja Master
Posts: 20,516
Registered: ‎06-08-2008

Re: Why do on account customers get less value than open term?

by Ninja Master Ninja Master Ninja Master
Message 2 of 4 (950 Views)

@crosisWhat was the name of the plan? Some plans got data caps doubled last week

Ex VodafoneNZ staff member 17 years 4 days
Frequent Poster
Posts: 47
Registered: ‎12-06-2012

Re: Why do on account customers get less value than open term?

by Frequent Poster crosis Frequent Poster
Message 3 of 4 (944 Views)

Hi John

 

I am currently on the Red+ Essentials plan ($69 per month) and they looked to move me to the On Account $69 plan.

 

Retired Staff
Posts: 1,061
Registered: ‎27-08-2013

Re: Why do on account customers get less value than open term?

[ Edited ]
by Retired Staff NikT Retired Staff
Message 4 of 4 (942 Views)

Hey there,

 

 Sorry for the confusion! Those are two different plans.

 

The simple answer is that there's a subsidy component - That $69 On Account plan you would have moved to for that 24 month term is not Red+ Essentials, as the 24 month Red+ Essentials plan is $99/month & includes an extra 1GB of data.

 

Check out the 24 month Red+ plans here and the $69 On Account plan here to see the differences. Smiley Happy

 

It's certainly not about valuing one set of customers over another, just about giving people options - It depends entirely on balancing how much you'd like to pay each month with how much you'd like to pay for the phone you want. For example, the Sony Xperia Z2 (Current list price $899) is $0 upfront on the $99 Red+ Essentials plan. The subsidy component of that plan is $20/month as the plan without a subsidy is $69/month, so $480 total. So you'll save $419 off of the list price of the phone over the course of the term, pay no interest, and pay nothing upfront.

 

If you don't want to enter into a contract term, but do want a new phone, we have an option for that as well - you can add interest-free Monthly Device Payments to your open-term Red+ Essentials plan. With MDP, you pay $99 upfront for the phone, then 24 monthly payments (The cost of which depends on the total cost of the device, ranging from $16 - $39/month). You can pay off the remaining balance at any time.

 

Hope this clears things up a little.

 

Cheers,

 

 - Nik

 

 

Devices team, Vodafone NZ
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