Customer inertia is a condition where customers don't change or review their consumer habits. An example of customer inertia is being unaware that your contract has ended and being charged significantly more for the same service because you are out of contract. Companies love passive customers. They rely on customers forgetting their introductory rate has ended and hope to make loads of money from customers who never switch.

Here are 6 tips to help you combat customer inertia:

1. Record your contract end dates.

Companies love to extort their customers’ inertia and forgetfulness, hence why a little organisation goes a long way. Place contract end dates in your calendar or set reminders on your phone. Different techniques work for different people, find a system that works for you. Start looking for good deals a month before your contract ends. With gas and electric, there is a penalty free switch period which is 49 days before the end of a fixed-term contract. Use comparison sites to look for the best deals. Once you've found a deal speak to your current provider and tell them you've found a better deal, it's likely they'll offer you a similar deal or a better one. If they don't, go ahead and switch to the new provider.

2. Remember loyalty seldom pays.

When it comes to dealing with companies, loyal customers are hardly ever rewarded, on the contrary, they're often penalised. This is referred to as the loyalty penalty. Have you noticed how some companies advertise their best deals to new customers, but don't give those deals to their existing customers? They charge their existing customers a lot more for the same deal they've offered to their new customers at a bargain price. They do this because they hope to lure customers in with a good deal and then rely on them not switching once the special offer has ended. Don't believe the lie that companies will give you a good deal, simply because you've been with them for years. Always do your research to ensure you're getting the best deal.

3. Remember successful adulting is about mastering the mundane.

Scheduling contract end dates, looking for a good deal and switching services aren’t the most thrilling activities for most people, but a lot of life is mundane and these mundane tasks are financially beneficial. You can view this as a task in building self-discipline, which is a crucial factor for success. Getting into the habit of mastering the mundane will pay off in the long run.

4. Don’t be afraid to switch.

Getting a better deal is not half as hard and time consuming as we envision it to be. There's a very common myth that switching services is hard, risky or time consuming. This is a myth which companies love, because it ensures they can keep charging their loyal customers lots of money, and their customers won't switch. Don't believe the lies! If you've found a better deal elsewhere, go ahead and switch supplier.

5. Think of all the money you’ll save.

If you shop around for a good deal when clothes shopping or holiday planning, apply the same principle to your bills. Companies usually increase their prices every year by small increments and this adds up over time.

6. Remember that negotiating bills is better than cutting back on leisure.

If you reduce your bills you’ll have more money to spend on things that bring you joy. Your motivation for cutting back on things you enjoy is likely to wane over time, this is why negotiating your fixed costs is the better money saving option.

References

1. The curse of the to-do list: is ‘life admin’ taking over your life? By Claer Barrett

   https://www.ft.com/content/32b35aee-1a58-11e9-9e64-d150b3105d21