Choosing your customers

At one time, Netflix and Comcast were direct competitors.

Then, Netflix won.

Netflix beat Comcast by putting their customers first.

When Netflix began its streaming service, and Comcast’s streaming service revenue began to decline, Comcast chose their own interests.

Slowly but surely, Comcast subscribers began to strongly prefer Netflix over Comcast’s streaming options.

What was Comcast’s reaction?

To penalize their customers.

The strategy was to throttle Netflix internet traffic.

Comcast decided to actively prevent their customers from watching Netflix. This was their biggest mistake and it’s why Comcast lost.

On the other hand, Netflix decided to do everything thing they could to ensure their subscribers – who unfortunately had Comcast as an internet provider – could watch Netflix.

That amounted to paying Comcast for the increased internet while Comcast customers watched Netflix.

Netflix burdened that cost for their customers. Which, they subsequently won a lawsuit against Comcast, where Comcast couldn’t throttle Netflix traffic.

What is the price you pay when you treat your customers as Comcast has? Consumers try to avoid you as much as possible.

And the business who choses their customers? Bigger than ever.

And, most of us are thankful Netflix won while COVID continues to leave us with very little to do.

American internet providers are loathed. And, for good reason.

Customers are extremely valuable. Don’t treat them like Comcast treats theirs.

P.S. In a survey conducted about consumer sentiment towards businesses, Comcast ranked below the IRS. Yes, people would rather pay their taxes than deal with Comcast.

P.P.S. Thank’s to Unlocking the Customer Value Chain by Thales S. Teixeira for this story.

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