Routing Rogers

It’s iPhone day in Canada. And what should have been a coup for Rogers has turned into a disorderly rout.

We don't want to focus too much on Rogers in this blog [(a) it’s such an easy target for customer-service complaints, and b) the other telecoms aren't much better]. But the cable/wireless giant, flying so high over its iPhone monopoly, fell to earth with a thud when the user base revolted against its high prices – and forced Rogers last week to change its tune.

Why didn't Rogers see this coming? The target market for the iPhone is affluent, sophisticated, always-on information junkies: if there’s one thing they know how to do, it’s communicate. More than 50,000 customers and prospects signed an online petition protesting the announced package prices. Perhaps Rogers' vast history of monopoly protection has blinded it to the fact that consumers have choices now.

As the PR experts at Toronto’s Veritas Communications put it this week, Rogers regained some credibility with its new (albeit time-limited) lower price package. But it was too late to undo all the damage already caused:

“Rogers failed to see the backlash coming despite the incredible amount of online chatter on blogs, social marketing sites, you name it – in other words, all over the geekosphere where the iPhone’s bulls-eye target market lives. Responding prior to launch is good, but not letting the wave of discontent get as huge as it did... would have been much, much better. Witness Thursday’s Globe & Mail, which ran a huge piece on the front of the ROB equating Rogers’ iPhone stumble to New Coke, Super-size McDonald’s meals and other legendary PR gaffes.”

Dare we hope Rogers management have learned from this debacle?