What is a retention offer? 5 common ones in Australia

A retention offer is the deal a provider keeps in its back pocket. You won't see it on their website. It shows up when you say you're thinking of leaving, a discount, a better rate, a few months off, anything to keep you.

Providers know most of us can't be bothered switching. So the good prices go to new customers, and the rest of us quietly roll onto worse ones. The retention offer is their way of saying "no, wait" once you actually pick up the phone.

The good news: you don't need to be a hardball negotiator. You just need to ask.

5 retention offers you'll come across in Australia

1. Internet: the "we can match that" discount

Tell your NBN provider you're leaving for a cheaper plan and there's a fair chance they'll suddenly find a discount. Often it's close to the new-customer price you were about to switch to. Worth asking before you go through the hassle of moving, but check how long the discount lasts. Six months of cheap internet followed by a quiet price rise is the oldest trick going.

2. Mobile: bonus data or a monthly credit

Mobile providers love throwing in extra data or a monthly credit to keep you. Handy if you actually need the data. Less handy if it's a distraction from the fact the plan still costs more than the one you were leaving for. Do the maths on the whole year, not the freebie.

3. Gas: ask about a better offer

Ask your gas provider whether there is a better plan for your household. Compare both the usage rate and the daily supply charge, and check how long any discount lasts.

4. Energy: a better rate without switching

Energy retailers can move you onto a sharper rate if you ask, especially if you mention you've compared plans on the government's comparison site. You stay with the same company, same direct debit, just paying less. Not every retailer plays ball, but it costs nothing to ask.

5. Streaming and subscriptions: the "are you sure?" screen

Try to cancel a streaming or software subscription and watch what happens. Half-priced for three months. A cheaper tier you never knew existed. A pause instead of a cancel. These screens exist because keeping you at half price beats losing you at full price. If you were cancelling to save money anyway, sometimes the offer is worth taking, just set a reminder for when it ends.

How to actually get one

No secret handshake. Four steps:

1. Know the market price first. Five minutes on a comparison site tells you what new customers pay.
2. Call or use live chat and say you're thinking of leaving. You don't need to bluff or be rude. "I've seen a cheaper plan, can you do better?" is the whole script.
3. Ask when it ends. Most retention offers expire. Get the date, put it in your calendar.
4. Be genuinely ready to switch. The offer only appears when they believe you'll go. If they call your bluff and the deal's not good enough, go.

The catch

A retention offer is still the provider looking after the provider. It keeps you just happy enough to stay, usually for the shortest time they can get away with. Sometimes the best retention offer is still worse than switching. Compare it properly before you say yes.

And if you'd rather not spend your arvo on hold? That's the sort of thing we do. Send us your bills and we'll hunt down what's out there, retention offers included. Your bills, sorted.

keep reading

Not sure what to say on the call? Here's how to haggle with your provider, with scripts. And watch for intro deals that end: how sign-up bonuses can bite you later.