Introduction
Have you ever wondered why companies roll out the red carpet for new customers, while long-time users are left out in the cold? Whether it’s subscription services offering crazy discounts for first-timers or ISPs giving better speeds to new users, this practice feels like a slap in the face to those who have been loyal. This frustrating behavior isn’t just anecdotal—it’s an observable phenomenon that’s so common it even has a name: enshittification. In this article, we’ll explore real-life incidents of customer betrayal, dive into the enshittification concept, and try to understand why companies think this strategy is a good idea.
Enshittification: A Sign of the Times
The term “enshittification,” coined by tech critic Cory Doctorow, refers to how platforms and companies degrade over time as they prioritize profits over user experience. Initially, companies treat customers well, often using enticing offers to attract a user base. But once they have a critical mass of users, the service quality declines, focusing more on squeezing out profits from those same users while favoring new ones with incentives.
This concept applies beyond platforms like Facebook or Amazon—it reflects how many industries operate, such as telecom providers, airlines, and even retail stores.
Real-Life Incidents of Customer Betrayal
Telecom and ISP Companies: Better Deals for New Users
A perfect example is seen in how internet providers treat customers. Many ISPs offer new users attractive rates for the first 12 months. Once the honeymoon period is over, prices hike dramatically, with existing customers receiving little or no benefit from subsequent promotions.
Case in Point: Comcast, one of the largest ISPs in the U.S., has long been criticized for this practice. Customers have reported that new subscribers receive higher speeds and lower rates, while long-time users are stuck with outdated plans—unless they threaten to cancel or switch providers.
Streaming Services: Goodbye Loyalty, Hello Newbies
Services like Netflix, Spotify, and Disney+ offer enticing introductory discounts, but long-time subscribers rarely see price breaks. Netflix, for example, not only failed to reward loyal customers but even started cracking down on password sharing—a move widely regarded as a slap to those who had been with them since the beginning. This alienated loyal users just to gain new ones, part of a broader enshittification process that undermines the user experience over time.
Retailers and Credit Card Companies: Sneaky Rewards
Retail giants like Amazon often lure new credit card holders with enticing bonuses, such as cashback or gift cards. But long-time holders may see their rewards slashed or their annual fees increased without equivalent value-added benefits. The idea here is to drive rapid signups while hoping that existing customers stay put out of inertia.
Similarly, airlines shower new members of loyalty programs with bonus miles, but loyal flyers often find it harder to redeem points due to blackout dates and other restrictions, making it clear that loyalty is only rewarded until a more profitable opportunity arises.
Why Do Companies Do This?
Acquisition Metrics Over Loyalty
Companies prioritize acquisition because it looks better on reports. Acquiring new customers boosts short-term growth metrics, which are often what investors care about. Customer churn (people leaving the service) may be seen as unavoidable, so companies focus on bringing in new people rather than keeping the old ones happy.
Inertia Works in Their Favor
Companies know that many customers won’t leave even if they’re unhappy. This is called the status quo bias—people tend to stick with what they have unless the change becomes unbearable. Businesses exploit this, squeezing out as much profit as possible before customers finally leave.
The Profit-Driven Lifecycle
A service often goes through a predictable life cycle:
- Build trust and attract users (often at a loss).
- Monetize the user base by gradually worsening the service and increasing prices.
- Extract profits until the user base declines, at which point it’s either acquired by another company or dies off.
This cycle perfectly aligns with the enshittification concept.
How Consumers Fight Back
Some savvy consumers have learned to game the system. For instance:
- Switching ISPs or negotiating every year to lock in promotional rates.
- Using burner emails to repeatedly take advantage of first-time discounts.
- Threatening to cancel services like streaming platforms to unlock better retention offers.
However, the burden shouldn’t be on customers to constantly play this game.
Conclusion: Breaking the Cycle of Enshittification
The frustrating treatment of loyal customers isn’t just bad for consumers—it’s a short-sighted strategy for companies as well. Word of mouth from happy, long-term users can be the most powerful marketing tool, while churn creates costly inefficiencies. Some companies, such as Patagonia and Costco, have taken the opposite approach, focusing on long-term customer satisfaction and loyalty over quick profits.
If businesses don’t change their ways, consumers will continue to retaliate through switching providers, gaming the system, and calling out enshittification when they see it. Ultimately, the power lies with us—we just need to wield it wisely.