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Jaxtr – Where loyalty hurts!!!

Jaxtr Logo
I have always been a big fan of Jaxtr. Earlier on they were ridiculed (read here and here) for not having a sound business model. But, I think they came back smartly with a seemingly good business model.

I am, however, not happy with the way Jaxtr treated their old users. Before they launched the new model, each user would get 100 jax (which are like credits for using their services) per month. With the new business model, they have created two membership versions, free and premium. Premium members get 50 jax credits and 250 international sms for free. The Basic members just get 50 international sms for free.

So what is the problem? Well, all the old users have been converted to “basic members”, which mean they do not get any jax credits. But if you sign up for a new account (obviously, using a different telephone number) you automatically get a premium status and are eligible for premium benefits.

Jaxtr has literally thrown the conventional marketing wisdom out of the window. Instead of rewarding the older users for their patronage, they are punishing them. I would be glad if the Jaxtr team could provide some explanation. In the meanwhile, go signup for a free premium account!!!!

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  • Alok R. Saboo
    @anonymous


    You are right, even I am not satisfied with Jim's response. I do not think that is the way to treat the old users. But if that is the way they think, there is little we can do about that.
  • Anonymous
    Nice political answer, but...


    ... still they don't give me as an old user the same as a new user.



    Admit it. They just don't want to spend the money on old users. It's a marketing budget thing. Budget is only available for getting new users but not create loyalty.



    And don't offer a "chance" to win free credits. Just give them for FREE to your old users!
  • Jim @ jaxtr
    Hi Alok. Thanks for taking the time to write. We do appreciate your comment on our blog and the time you invested in blogging about us. As you probably already know, it's been a busy couple of months for us with the release of our paid services, premium memberships, and the technology to let people call both jaxtr members and non-members. I just wanted to clarify a few things regarding the Premium Membership program.


    You are correct all new members are granted a complementary Premium Membership, which includes free jax, 250 SMS messages, VM downloads, and other benefits, although this is a 30-day trial. We agree that it is extremely important to reward older users for their loyal patronage. In fact, it was with this intention that our Premium Membership program was setup.



    Each month, we also grant complementary Premium Memberships to our most valuable members. The great thing is that existing members can be selected to receive a free Premium membership each month by simply using jaxtr.



    Members become eligible for making calls, sending invites, and using café jaxtr. Unfortunately, depending on the number of eligible members, we can not guarantee Premium Membership to each existing member.



    We also continue to revise and update the Premium Membership program based on member feedback and effectiveness. It's a dynamic process, so your feedback is very helpful as we develop our services and customer programs. Feel free to shoot your comments my way anytime.
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