Why you should Not Trust the Carrier to Generate Mobile Savings

In a mobile industry which is plagued with high “churn” rates between competitors and changing sales people like a swinging door, it is understandable why you should be cautious when it comes to making dramatic carrier change decisions. However, caution is sometimes not enough. We have many situations where we are dealing with current clients and prospective clients who have been promised the world when it comes to carrier services. The biggest promise of all is savings on the wireless cell phone plans. Come to our network and save X%.

We recently had a client promised just this situation from a competitive carrier to the one they were currently on. Fortunately the client knew enough to pass this by us prior to making the jump. They were promised a 38% savings on their average cell phone bill to go to the new carrier. Now 38% cell phone plans comparison savings is pretty extreme, especially when you consider this client employed us to manage their costs and we brought none of this to their attention. The total offer focused on the following:

  1. Free Hardware – 3 Year Agreement
  2. Unlimited Calling – Promotional period of 3 months only
  3. Corporate Contact
  4. Corporate Mobile Cellular Management
  5. Corporate Agreement
  6. …and 38% cost savings per month.

When we analyzed the carriers offer – and in defense of the carrier – we’re really talking about the salesperson’s offer (although this was a corporate salesperson), the reality was the client’s costs instead of saving 38% on their mobile phone plans, would have increased by 12%. To really support the fact we actually outlined to the client on a line by line basis comparing cell phone plans of over  100 units in their fleet, exactly the cause and effect over a one year period.  The client was astonished. They were absolutely shocked that someone could get away with just lying about the end results. However, is this really lying?

I would challenge that likely it is not so much lying as it is negligence in that the salesperson probably did believe the savings would materialize. If we look at their job specifically, they are paid and continue to keep their job based on client acquisitions and activations. So the bulk of their time is spent chasing new prospects to secure new business. The tool they use to entice new business is generally savings on mobile phone plans. In utilizing this tool, they by default become cost analysts in the preparation of proposals. So to sum up, a salesperson that spends the bulk of their time chasing new business, to stay employed, spends the least amount of their time being auditors.  This is likely not a good model to support, at least for the client.

So this leads to an interesting issue. What if you’re promised “X” savings from a carrier, and those savings do not materialize? Buyer Beware! You’re essentially toast! You’ve signed the term agreement which guarantees no savings what so ever, quality of support or service. Of course you could fight this, but it would be a long and likely fruitless battle. In the meantime your communications would be in an uproar.  The best solution is to either internally audit the cell phone plans comparison quote, which of course can be quite time consuming, or have a third party review the wireless cell phone plans on your behalf. One of the biggest marketing statements we make here at GILL Technologies is “we work on your, the client’s behalf, not the carriers’. I sometimes think the importance of this is underestimated.

Has your company ever been promised savings from a carrier? Did they materialize? I would love to hear your input.