Thursday, 25 October 2012

Service discriminators - the home broadband analogy

Copyright Virginmedia

Responding to a question of what discriminated one service over another, the best answer given recently was the home broadband analogy. Basically one reputable broadband service should be pretty much like the next. So what made me choose one provider over another?

Although day-to-day experience of broadband is the pretty homogenous whoever the provider, when we moved house there was a single major discriminating factor. My chosen provider (you can guess who) installed broadband the day after we moved in.  Not bad! Another, major household name, provider couldn't connect us until 2 weeks later.  Choice was a bit of a no-brainer!

Of course there are generally other elements in the decision making mix when you buy a service: what's the basic product like; how easy do they make it for me to deal with them (endless 'press 1 for ...' or straight through to a knowledgeable advisor); what's their image as a supplier; do I expect they will able offer future innovation and extra services; are they an innovation leader or a follower. Oh yes - there's also price! (Also, do I expect lower price/more for my money in future as technology develops or the market matures.)

For my broadband service there was some internal mental calculus around the above factors that led to my particular choice.  (A simple decision based on the wait for installation.)  In a business-to-business context, there's probably no single discriminator between providers. Likely it's the sum of performance in each of the important service elements put together coherently, and weighted in a formal assessment, that counts.

If you want to win, be world class/industry leading in all the elements.  Then you're in the game!

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