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BK Magazine Marginally Unethical Life Hacks
Posted by Jeevan Sivasubramaniam, Managing Director, Editorial, Berrett-Koehler Publishers Inc.
We are all approached by different companies with offers of trials for some product or service. After the trial period ends, you will be offered a price or fee for the continued product or service by the company. Do not accept this offer. Modern marketing recognizes the greater cost of consumer acquistion over retention. That is to say, you are already a consumer who is familiar with the product, so getting you on board at a cheaper rate is still cheaper than trying to sign a completely new consumer who has no idea about the product or service. This means that the company can offer you an even lower rate and that will still be cheaper for them than going after a brand new customer.
The company will accept your refusal of the product or service but will most likely come back to you a week or two later with even lower rates to entice you back. This is standard practice to get back consumers who may have originally fallen out of their target market due to pricing segmentation.