Are Your Customers “Trapped?”
Competition drives companies to focus on customer satisfaction. Unhappy users will move to your competitor. But will they?
Often, the cost and disruption of the move are significant barriers. The customer is kind of “trapped.”
Pharma companies do not need to make the drug less addictive. They seek to maximize profitability for each medication. Microsoft doesn’t need to obsess about making its software suite more user-friendly. They want to make the suite more profitable. Amazon is shifting its focus from the authors’ satisfaction to maximizing its profitability. Verizon, Spectrum, or Frontier do not need to make their Internet service faster or mobile-friendly; they need to make it more profitable.
This is the “trapped” syndrome. When the switching becomes cumbersome, disruptive, and costly, the business objectives of the suppliers shift. As platforms and networks expand and their influences increase, free markets are not free, and the choices are either limited or nonexistent.
When you start a small business, engage in free-market competitive thinking, and when you have a “trapped” customer base, act like you don’t.
I would love to hear about your experiences! Please share your stories at satishmehtausa@gmail.com. Please forward this knowledge letter to those who could benefit from it. They can subscribe to it here or by clicking on the link below.
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