The best Energy deals hidden from Australians
Many Australians are being penalised for their loyalty. In a twisted irony, it is in fact disloyalty and an appetite to switch providers, which draws the best prices. Why is this?
Like the Home Loan industry, these deals are the product of excel models and Customer Lifetime Value calculations which underpin the offers made to customers. Typically, new customers are enticed with attractive deals, such as a low fixed mortgage rate in the case of a home loan, or a significant ‘Pay-on-time discount’ for an Energy bill. That is fine, but the problem is that statistically consumers simply don’t realise when these initial discounts cease. Instead they continue ‘consuming’ sometimes indefinitely. (As the Banking Royal commission has highlighted, there are circumstances where people have continued to be charged even after they had died!)
In other words, an Energy deal will ‘age’ and if left untouched is most likely to become significantly more expensive than competing deals in the market.
Energy companies will invest money in ‘acquiring’ you (through a compelling first offer), however would rather leave you as a ‘sleeping’ consumer, than ‘wake’ you up and alert you to the fact that there is a better deal out there for you. This is one frustration with Energy retailers.
With Energy prices increasing so rapidly in recent times, consumers have been awoken anyway and are shopping around more than ever. However, a second point of frustration for consumers in this process emerges here. Quite simply, the best deals are being hidden from consumers.
Let’s say you are looking for a cheaper Energy bill. The first port of call is often your retailer, a phone call to them to find out if there is a better deal. Sometimes if you can quote the deal that you saw advertised, you may be granted this, however this offer will be for new customers (not you) and you may be denied. Instead you’ll be offered a ‘Retention deal’ which will be competitive enough to make you weigh up whether you can be bothered persisting with this quest, or just accept their offer and be done with it.
If you decided to keep persisting (good on you!), some further research will reveal that switching to get a better deal is worthwhile. After spending long hours on the phone to a new Retailer, you are pleased to have at least landed on a deal that is decent, if short of the ‘cheapest’ available. You are happy enough.
But, at this point your existing Retailer will be informed that you are switching. More likely than not, they will be in touch with you and this is where our frustration lies. Because what happens next is that you are offered a ‘Save offer’, which is a ‘stonking deal’ that is designed to ‘save’ you and retain you as a customer. Nevermind this wasn’t mentioned earlier, “it is available now to you as you have been such a valuable loyal customer”. How frustrating is that! To compound this, sometimes if you still insist on switching, a follow up save offers is pitched at you!
At ‘Givemeyourbestprice.com.au’, we seek to flip this situation and empower the customer by allowing customers to pit Retailers against each other and have these ‘save’ offers tabled for you from the beginning.
It’s like eBay for your Energy Bill.
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