In the of rush to expand customer base, it is now commonplace to offer "promotional offers" to new customers, while existing customers continue to languish, shackled by old contracts. I have always had an issue with this and have blogged out it earlier [(Customer) Happiness is a state of being, Marcom Wishlist for 2010].
According to a report in the DNA , Mr R R Nair, Chairman, LIC Housing Finance Limited, had this to say in reaction to the news of many banks withdrawing their teaser-rate home loan offers:
"Any discount of more than 50 basis points (0.5%) on a promotional basis is not good. This means your existing customers are paying much more than the new customers. You are creating a different class of customers."Whether teaser home-loan products are harmful is an issue best left to finance experts, but that a corporate leader has agreed that it is wrong to shortchange existing customers in the frenzy to get new customers, is welcome news, specially when he belongs to a Industry that is notorious for promoting this practice.
All is not lost.
No comments:
Post a Comment