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« Heading to India | Main | That's the Way We Do It »

February 03, 2009


Martin Schneider

Paul - I liked this example and the version you gave on it at some presentations I've given over the years I have often distinguished between three factors that tend to be meshed together with no regard for their difference in the IT world: loyalty, satisfaction and market share.

All to often lock-in strategies and general market bully tactics have led to a virtual oligarchy in the main areas I covered (BI, CRM, ERP).

These few vendors tended to possess huge shares of market, and subsequently high loyalty, but usually very LOW satisfaction levels. Over time (I have seen a typical 10-15 year arc) many of these companies started to fade (Siebel being a great example) because they simply didn't listen to their customers (or do well to find new ones in a changing environment).

The internet, however, is a great equivocator. And the level playing field it presents hopefully will create winners that effectively balance their market share (or ability to stay afloat) by also paying significant attention to the EMOTIONAL and Voluntary types of loyalty instead of lock-in loyalty or inertia loyalty - which of course breeds high satisfaction and higher margins.

Matthew Watts

Paul, I enjoyed this example at your speech today for Dalton State College. One of the things I am trying to do for my business is to make it apparent to the customer that I want to be a resource for them, not just someone they pay.


I had a very different experience with Marriot when i relocated out of US. I was a Platinum with them for 3 years and then work took me out of US to Europe and Asia. For those 2 years i retained my status and was useful on the occasional trip back home. Now after 9 years in India, my status is still active as Platinum. Looks like they are probably doing something right.

Hari Saravanan

Paul, Your "United" experience is a classic example of retaining customer through Loyalty. Hope someone from their customer support reads this :)

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