In a strategic move aimed at benefiting existing customers, Vodafone has recently introduced its ‘Red Family’ discount, offering cost savings for families who add broadband to their bill-pay mobile plans. This initiative comes on the heels of Vodafone’s decision to discontinue promotional and introductory offers for broadband customers, a move that is expected to save existing customers hundreds of euros annually. The new discount is projected to save customers at least €240 per year, with potential savings of up to €960 annually.
Previously, the Red Family discount was limited to multi-mobile plans, allowing customers with multiple bill-pay mobile phone subscriptions linked to one account to receive a €20 discount on the third plan and subsequent plans, with a maximum of six connections. Vodafone has now expanded this discount to include broadband for all Red Family subscribers.
By incorporating broadband into the Red Family discount, Vodafone aims to provide additional savings to loyal customers and ensure that families have access to further cost reductions. Specifically, customers will receive a €20 discount on their broadband plan when it is added as a third or subsequent line on their Red Family account. This change not only simplifies the billing process for customers, combining multiple services into one monthly bill, but also enhances overall cost savings.
According to Niall Gilmore, Vodafone Ireland’s spokesperson, this updated plan is particularly timely as it alleviates financial burdens on households during a period when parents face increased expenses due to back-to-school and college costs. Gilmore emphasized that the plan offers significant savings encompassing reduced mobile bills as well as savings on fixed broadband.
Vodafone’s decision to treat all customers equally sets it apart from industry norms, as most broadband providers tend to offer substantial introductory discounts exclusively to new customers while neglecting existing ones. By eliminating discriminatory offers, Vodafone estimates that its customers can save €240 per year on their 500Mbps home broadband plan, amounting to nearly €1,000 in savings over four years.
Typically, broadband customers are enticed with introductory tariffs that skyrocket after the minimum contract term, often resulting in prices that are as much as 117% higher than the initial promotional rates offered exclusively to new customers. This pricing structure, coupled with the fact that 84% of households have not switched broadband providers in the last three years according to telecoms regulator ComReg, has contributed to higher costs for households with the cessation of promotional offers.
Additionally, Vodafone’s proactive approach to customer satisfaction involves removing all broadband installation and set-up fees, further enhancing the benefits for customers.
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