jt_21 not to mention it would attract new giffgaffers on board and maybe tempt back giffgaffers that have left, not everyone can stretch to spending or committing to spending £10 + per month
You make some good points but the evidence from the 2019 accounts shows that giffgaff have no difficulty in attracting customers but they do have real difficulty in retaining members, in industry terms, this is known as the churn rate. The golden goodybag is giffgaff’s attempt to halt the loss of recruited members by offering an increased data allowance for those willing to save a payment method and commit to recurring goodybags, if successful the experiment could be expanded to other value goodybags.
It is hoped to convert the member’s mindset of casual purchasing of goodybags into one of regular purchasing. The golden goodybag is not a contract but a definite behavioural training tactic to encourage, not force regular buying and by keeping the member happy, it is hoped that it might discourage members moving to another network.
All this comes at a heavy cost to giffgaff in terms of reduced revenue, for more data expenditure and the payment of heavy £1.5m fines last year to Ofcom, the Regulator, led to swingeing price increases of upto 150% on paygo rates.
Realistically if the new goodybag experiment fails there will be consequences, not least in inevitable cuts to marketing budgets and staff numbers which would also have grave impact on day to day service improvements, that we have come to expect.
