Last year’s business pages were filled with episodes of consumer outrage over price hikes. Within hours of Verizon’s announcement of a new $2 “convenience fee” for one-time payments, 130,000 people had signed an online protest petition and the FCC had expressed its concern to the media. The President of the United States criticized Bank of America’s planned $5 monthly debit card fee by saying, “This is exactly why we need [a regulator] whose sole job it is to prevent this kind of stuff from happening.” Three and a half months after announcing a price increase in July 2011, Netflix had lost 800,000 customers and its stock nosedived from $291 to $75. In response to this uproar, Verizon quickly reversed its price hike and Bank of America eventually did too. Netflix stood firm on its pricing decision and its stock has since inched up to $124.
Don’t Let Customers Freak Out Over Price Hikes
Last year’s business pages were filled with episodes of consumer outrage over price hikes. Within hours of Verizon’s announcement of a new $2 “convenience fee” for one-time payments, 130,000 people had signed an online protest petition and the FCC had expressed its concern to the media. The President of the United States criticized Bank of […]
February 17, 2012
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HBR Learning
Customer Focus Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Customer Focus. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to keep your customers—and their most important needs—front and center.