AOL pay out $3 million

In a desparate bid to hang on to customers, AOL, the internet division of Time Warner Inc., have been offering as much as US$3000 to staff who retained a customer attempting to cancel their AOL services.

The mass customer exodus started after AOL were forced to offer previously paid services for free once other companies such as Google and Yahoo started to offer similar services for nothing. If customers wished to cancel their paid for AOL services then they had to contact the company via fax, mail or phone. AOL only started to provide an online cancellation service as of August last year. Tactics used by the customer service reps included endlessly transferring the call until the customer gave up, aggressive attitudes towards cancelling customers and repeatedly putting customers on hold.

AOL have averted a 48 state lawsuit over these tactics by forking out $3 million and promising to change their ways. Also if you were a customer who was still charged by AOL after attempting to close their account, you can request a refund from AOL - of course you have to prove that you attempted to close your account whilst you were still paying for their services, not easy to do for phone cancellations unless you record your phone calls ;)

One thing that strikes me is that the math doesn’t really add up. $3000 to retain a customer who at most is paying $26 a month? The customer would have to stay with AOL for almost ten years for them to re-coup the pay out. Insane or what? I know the math isn’t that straightforward but even so this highlights the shoddy mis-management at AOL in not providing free services to exisiting customers whilst giving them away to new. Very sad.

Any AOL customers out there wish to share their ‘cancellation’ experience?

Source: Yahoo