Can you believe that we haven’t posted a true VoIP Tech Chat in over a year? Although many of you are thankful for the break, we have decided to invade your favorite audio player once more (with feeling) with the first of (what we hope) will be many podcasts for 2010. This week we discuss Verizon Wireless, Vonage, Customer Service, and well, just a good ol’ fashioned VoIP Tech Chat.

As always, VoIP Tech Chat can be accessed from:

• VoIP Tech Chat (download mp3)
• iTunes
• And, thanks to popular request, you can also stream the chat by pressing the play button below
  Download audio file (09MAR2010VTC.mp3)

Links of “Interest:”

• Follow Fred on Twitter
• Follow Patrick on Twitter (Yay!)
• Past Post from Patrick regarding a positive experience with Verizon

Good things come to those who wait…to cancel. On the heels of the “announcement” that Verizon Wireless will be doubling their early termination fees, I found myself considering how commerce and service has changed. As I have mentioned in our previous chats, I pay some $400+ a month for my extended family and I to have Verizon Wireless. Every month I give Verizon about $400, and on top of that, have spent over $2,000 on phones and another $500 on applications, ring tones, and content (that’s phone specific — if I buy a new phone, I get to buy new applications, ring tones, and content).

Businesses routinely (and almost exclusively) employ “short-timers” for their front line contacts — people that work at most six to twelve months answering phones, then move to another company. Customer service itself seems to follow the same pattern of always looking six to twelve months ahead, and making all judgements on a short-term basis. Have you been a great customer for 10 years? Who cares. What have you paid us lately?

*** Begin Digression ***

In VTC tradition, I digress here to share my most recent customer service experience with Verizon Wireless. In September, I was planning a trip to Florida which would necessitate me an aircard device for work. No air card, no trip. On the Wednesday before my trip, I started trying to setup the MiFi device and just hit the wall. I got nothing but vague errors and “failure to initiate.” After exhausting the interwebs (Yes, I did google, re-google, and uber-google), I bit the bullet and called Verizon. I called them at around 9:30am.

The first technical support rep couldn’t help. This sadly, was expected. After some time, I was handed off to a “tier two” rep who walked me through a series of attempts before admitting she had limited hands on experience with the device. This was where my experience took a drastic turn from the ordinary. She offered to try some options and call me back in “a couple of hours.” At 5pm, well after the “couple,” I called back. I asked for the rep I had spoken with, luckily getting the same center where the original call landed. The call taker took my information and told me the original rep would contact me shortly.

To my surprise, the story didn’t end there. My phone rang after a few minutes, and the original tier 2 rep apologized and explained that she had spent her entire day working with anyone who knew anything about the device. Based upon the number of things we tried over the next 45 minutes, I am convinced she did in fact spend her day doing nothing other than researching how to get my MiFi working without a warranty replacement. Not to avoid the replacement, but because she knew I needed it fixed the next day.

By 6pm we had given up hope, and I opted to do a warranty exchange, mentioning I would check with the store near my house. If they didn’t have it, I would call back to get one shipped. I hung up the phone and tried calling the local store, got no answer, and got distracted. Ever get distracted? Happens to me. In fact, I just got distracted right now.

Ten minutes later, my favorite rep from Verizon called me. She offered to contact the local store and find out if they had a replacement, and if they didn’t she could go ahead and get one shipped. I was floored. Even thinking about it now… I’m still floored. Re-floored.

She put me on hold for about ten minutes and contacted the four stores in my area; all of which did not have a warranty replacement. She then began the shipping process and told me it would ship out the next day, arriving on Friday (and effectively damaging my travel plans). At 10 am the next morning, I went outside (shockingly) and found a FedEx notice that at 9:30am they had attempted to deliver my package. Just thirteen hours after I spoke with the rep, the replacement device was at my house, and all because someone at Verizon took total ownership of my situation. It made me feel like I was the only customer they had ever serviced. Every previous experience in the past two years with Verizon they ended with some mocking line about “have I done everything possible to make you happy today,” to which I reply, “No, not at all.” In this experience, they didn’t need to ask, because we both knew I felt like an extremely important customer. V-I-Patrick.

*** End Digression ***

In the five years I have had Verizon service, there have been around ten times that I have truly wanted to cancel. With the amount I spend on my service, it kills me to be slighted, or treated like a dog from their customer service, sales, or technical support teams.

My problem is a catch 22. With six lines of service, all with different anniversaries, I would have to slowly cancel each line at the end of it’s contract. Or I could choose option B and pay approximately seven million dollars. Either option makes me feel like a hostage. Yes, I’m still in their service. But it’s not my free-will making the choice — I’m in a commitment.

What does all of this have to do with VoIP? Annual plans, early termination, and “no contract” signups. In the VoIP world, these are mostly unregulated marketing terms. Annual plans usually save anywhere from 10% to 20% off from regular, monthly service. But to get the discount, you have to pay up-front, at the commencement of the service. Usually, it’s between $200 and $250 (paying each month would instead cost around $250 – $300 for monthly service) to avoid – a commitment.

The catch: refundability. (Yes, it’s a word. No I don’t care if it’s in the dictionary.)

Always read the fine print to make sure you have an out. If the service does not live up to expectations, if for some reason you are unable to maintain your internet, or if you find a better offer elsewhere — you’re going to have to break your contract. Typically, the termination fees and prorated amounts will leave you paying well in excess of the $50 – $100 saved by paying up front.

These contracts commit me to the product or service I have purchased for the duration of the contract. They do not commit me to the company itself or create any sense of loyalty. In fact, their first obstacle in creating loyalty is that we have started with their assumption I would not be staying with their company without being bribed with a discount. If VoIP or Mobile companies want to keep me as a happy satisfied customer, they’ll treat me like a VIP. If they do, I’ll be a walking billboard. If not, if they make me stick with them out of commitment — well, we’ll sooner or later end up in Divorce. After all, there’s a big difference between loyalty and commitment.