Four things a cable retention department can do for you

In today’s mobile, streaming world, cutting the cable cord is now more than just a weird thing tech-heads do. It’s something even the average consumer considers. Usually right around the time they get their monthly cable bill.

And that’s why cable and satellite companies created a department to try and keep you happy: The customer retention department. As the name implies, it’s the department that is called on to keep customers who are thinking of dropping service. What's more, it can also benefit those of us who merely want to reduce our cable bill or add services at a discounted rate.

That’s why experts we spoke to suggested politely asking for the customer retention department. The customer service representative you will likely get first often doesn’t have the authority to offer the deals and incentives a customer retention department representative does, says David Bakke, editor at MoneyCrashers.com, a financial advice website.

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Read on for four things your cable provider’s customer retention office might be able to do for you, and tips to increase your savings.

Offer a “Loyalty” Discount

All that mobility has a downside - lack of loyalty. So if you think loyalty should be rewarded, you’re not alone. Often, the cable company’s customer retention department thinks so too, says Jeff Blyskal, a senior editor with Consumer Reports Magazine.

“Cable companies have been bleeding customers for a few years, so if you’ve been a customer for a long time, it might mean something,” he says. “They may offer you incentives to keep your service if you call and say you’re thinking of dropping it.”

Specifically, it might mean a discount, says Bakke. He says the savings could add up to 10 to 20 percent off your bill, usually for a certain amount of time.

He says often the loyalty discount will run out after six months or so. At that time, he suggests you call again - after all, you’ve been a customer for an additional six months by then.

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Offer Free Premium Channels

If you’ve been meaning to try a premium channel like HBO or Showtime, but don’t want to add to your already too high cable bill, now may be the time to try to get them for free.

Blyskal puts it bluntly: “Free premium channels are easy to get.” For a limited time anyway. Blyskal says individual channels like HBO and others are often doled out to complaining longtime customers for three or six months.

“If you’ve had your service for a while and haven’t had a premium channel, you can ask if you can try out a premium package, and they may give you a break or discount for a few months,” says Jeff Haynes, an editor with TechBargains.com, which gives savings advice to consumers.

There is one warning: One of the reasons this might work is because the cable company knows that these channels have great content. So don’t be surprised if at the end of your free promotion you find yourself wanting to sign up for the channel at its regular price.

It’s sort of like those sample cups of chocolate ice cream at the supermarket - many customers drift right into the ice cream isle after trying a sample.

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Extend Your Promotional Rate or Give You the Going "New Customer" Rate

Cable companies love new customers. And in their world, love translates into deeply discounted rates when you sign up for new service.

Unfortunately, love fades - in about 12 months, usually - and when your promotional contract ends, you suddenly find your cable bill rocketing higher.

But, says Lal, one of the customer retention department’s most formidable weapons to retain customers is the ability to offer promotional rates to existing customers. It’s not guaranteed, he warns, but it is possible to get an extension of your promotional rate, or your provider’s current new customer promotional rate if you call and ask.

Don’t expect to necessarily get an extension of the same promotional rate you got a year or more ago, however, says Lal. Promotional rates change just like the price of bread or Hondas. So, he says you may get your rate extended for six or even 12 months, but what’s more likely is that you’ll be offered the current new customer promotional rate.

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Cost Breaks on Equipment

Now, this may sound crazy, but when you sign up for cable, the cable box isn’t usually included. And when you add Internet, even though you’ll need a modem to access your new service, it often isn’t included either. Both of these things you lease.

For instance, a normal cable box from Oceanic Time Warner Cable is $9.99 per month. Want a digital, recording box (a DVR)? That’ll be $12.99 per month. And leasing a modem will run you $5.99 a month with no promotion. It’s like having to lease the seat when you buy a movie ticket. Ouch.

But, says Haynes, this does provide another opportunity for the customer retention department to hook you up with some savings. There is some wiggle room with equipment, he says, and often they can reduce the monthly cost by a few dollars. Don’t expect free equipment, though.

“But if you save $10 a month, that’s $120 a year. That’s worth a phone call,” he says.

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How to Get Free Stuff

For the best chance to get cost-saving benefits from your provider’s customer retention department, you’ll want to follow a few simple rules. So we accumulated five tips from our experts.

Ask for the Customer Retention Department: This is basically asking to speak to a supervisor, because, says Lal, the customer service agent you speak to might not have the authority to discount your services. So why waste your and his/her time?

Be Polite. We’re sure you’re a nice person, but you may want to be on your best behavior when you call the cable company, says Blyskal. Remember, there is a human on the other end of the line and being nice usually pays off more than being a pain in the you-know-what.

Be Prepared. This is vital, says Lal. You need to do your research and have it at your fingertips. What does the competition charge for your (or roughly your) same service? What does your provider charge new customers? What does each of your services cost - cable, DVR, premium channels, Internet?

Know What You Want. Go in with a plan, says Lal. Is your goal to simply reduce your monthly bill to the rate that new customers get? Or are you shooting for free premium channels?

Be Adamant, but not Inflexible. Remember, this is a renegotiation at the end of the day, so you may not get everything on your wish list. Besides, says Haynes, there are some fees that even the customer retention department can’t do anything about - such as cable franchise fees and taxes, to name a few. So be open to saying, “That’s fair” when you get a break.

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