4 ms·
I wonder if this is a symptom of there being too few competitors in most markets. In a very competitive market, having a long-term customer is an incredibly va
by mabbo 4y ago
I wonder if this is a symptom of there being too few competitors in most markets.
In a very competitive market, having a long-term customer is an incredibly valuable thing. You should want to invest heavily in customer support so that you can avoid losing customers.
But in a market with only two competitors (Lyft and Uber) there isn't a need. There's only one other competitor, so how much do you really need to invest in customer support? Spend that money on marketing to steal customers from the other competitor- you'll get a better ROI in terms of number of customers.
The same applies to Google of course. What are you going to do, use Bing? Switch your gmail account to someone else? I guess you could get an iPhone instead of Android?
As a counter-example, Amazon had to win customer trust early on because nobody trusted online shopping. They invested heavily in customer support. They kept investing in it, as a means to keep customers from switching to new competitors. For a long time, that helped them stay on top.
But in the end, we need more diverse markets with more competitors. And at this point, the government ought to be stepping in to make that happen.