I’m a loyal customer and always have been. I’ve always been reluctant to change especially when I’m satisfied with a service. I’m too loyal and sometimes, it costs me money like 401(k) plan sponsors who have misplaced loyalty in their plan providers.
Ever since I got my first cell phone in 1998, I always used Verizon Wireless. The services was far superior in terms of coverage and I was always willing to pay more. I even waited the longest time when Verizon didn’t originally carry the IPhone when AT&T had the exclusivity of it. I even was loyal when Verizon phased me out of unlimited data in exchange for the subsidy of my first IPhone, the 4S.
When my kids needed cell phone, I actually signed them up with T-Mobile because they were less expensive and it was a trial to see if I should make the switch. I dawdled for over a year without making the switch. My wife and I made the switch to T-Mobile because of a promotion regarding new phones. We made the switch and ended up saving $125 a month. In addition, through their T-Mobile Tuesdays, I got a free year of MLB.TV, free Netflix, and a whole host of other goodies.
Verizon still has a better service, but not enough to justify the $125 extra a month. The point here is that while better service should fetch a premium, too much of a premium is going to scare your plan sponsors to seek a less quality with a steeper discount. Everything about fees is reasonablenessand if you charge too much of a premium for your higher quality service, you may end up not being reasonable in fees for the services you provide.