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by tshaddox 1817 days ago
What I fear is that hostile behavior like this is actually not short-sighted. I suspect in many cases these companies are pretty savvy about how their business models work, and I suspect that they are correctly estimating that they will end up ahead both in the short term and the long term by making recurring payments easy to forget and difficult to cancel. I really don't see this sort of customer ill will being that effective at scale. I will probably never pay America's Test Kitchen one penny after hearing your review, but my impression is that they still have an excellent reputation. And do you really have great alternatives? Does Playstation not use the exact sort of hostile patterns as Xbox?
4 comments

I suspect it is shorted sighted in a sense, and not in another. The choice to prevent cancelation likely hurts the long term revenue of Microsoft and at the same time maximizes the short term revenue of that executive. He will be working somewhere else by the time that chicken comes home to roost, so it maximises his value long term.
What I’m saying is that it will potentially also help revenue in the long term, and that “customer ill will” won’t actually spread and turn away customers at any noticeable scale.
how do you measure that?
There’s long vs short term, but I’d also add ease of calculating a decision’s value. Ironically I think a lot of the business and tech world is hamstrung by “data-driven” decision making which assumes

1. You have all the necessary data and

2. You are interpreting it correctly and completely

This is almost never true, so instead “data driven” is mostly “data covering-your-ass.” Maybe the future will yield leaders more capable of wielding data less like a cudgel, but I’m not optimistic.

It is the best decision for the executives that are in the position that they are in right now and for their foreseeable future. Now for the decades to come? Probably not.

I was able to switch to a new company with transparent simple billing and I will never go back to Comcast even if they offer me a better deal on a better product.

Their customer service policies were horrible and anti consumer. They also routinely throttle certain types of traffic. BitTorrent and Xbox were both verifiably throttled for me during different periods of being a customer of theirs. They increase billing every few months until you complain.

I had to constantly fight to prove that my modem was owned by me. And they just kept adding it back as their equipment and charging me a monthly fee for it. They wanted me to prove I bought it. Wanted to know where I bought it. Etc. I had to call and prove that I indeed bought and paid for it myself numerous times.

Point being. I will never go back. I suspect many others will not go back either once given another option. And options are coming through community fiber projects, 5G and Starlink to some of the areas where Comcast has been the only option.

I'm also afraid of that, good point.

I'm a fan of Serious Eats for cooking content. Again, ATK was great except for the subscription thing. Looking at their Support page, it looks like nothing has changed with their cancellation policy[1] (the fact that you can cancel your physical magazine subscription online, but not the website subscription is hilarious). I would LOVE to know if they have support for online cancellation for California customers, that they just disable for non-California customers. I've heard of companies doing things like that.

Not sure if Playstation did the same, but Xbox doesn't make this difficult this anymore anyways. In fact, recently I started a Game Pass Xbox subscription on my xbox account and used it for a couple days. Then I realized I should do it on my main microsoft account instead (so I don't have multiple accounts anymore), so I cancelled. They gave me a full refund automatically without me needing to ask or do anything. So companies do change, although I imagine it's just easier to implement it this way anyways. Phone-based customer service is really expensive.

[1] https://www.americastestkitchen.com/support#change-membershi...

I was actually going to buy a subscription but luckily I learned about that policy and never did.

Now I use a privacy card for all subscriptions to avoid the hassle

This is my perspective exactly. It's hard to be mad at someone for optimizing for their own desired outcome.

I'm mad that it works.