Your competitors are not who you think they are

bad_spellers_untie_postage_stamp-p172016310883664861uuftb_216Customers don’t compare the online experience they get from us with that from our competitors. They benchmark instead against the best they have seen, regardless of sector. We have to understand this if we are to use customer experience to help us sell and keep customers.

Don Peppers is one of the pioneers of the customer experience industry. In a recent LinkedIn post, he  tells the story of a bad customer experience a colleague had with Stamps.com when trying to unsubscribe from their service.

The customer horror story, however, was less interesting to me than that he (like we all do) compared this experience with Stamps.com with that offered by another company – and found Stamps.com wanting.

That company was Amazon.

Amazon does not sell anything which Stamps.com sells.  Amazon is not seeking to take customers away from Stamps.com. I would be astonished to find that Amazon features in any strategy document which Stamps.com use to understand their competitive landscape.

In the traditional sense, they are not a competitor.

But when you think in terms of the customer experience, are they a competitor?

Damn right.

Customers do not compare the online experience they get with one company with the experience offered by competitors in the same sector. Instead, they compare their experience with the best experience they have had online, regardless of sector.

If we do not offer an experience  which measures up to the best experience which our customers have had elsewhere, then we will have unhappy customers.

It’s not fair, I know.  Customers are not even comparing apples with pears; they are comparing stamps with books.

This really matters.  Because if we aren’t aiming to be cheapest (and very few of us can, in the long-term) and if our market is crowded with me-too products with pretty much the same features (as in almost every consumer market sector), then how do we compete?

The experience we offer our customers, that’s how. When we make it easier, faster and more pleasant to buy and use our products, we win and keep customers.

If this is how we choose to compete, we need to understand that our ‘competitors’ aren’t our competitors.  As far as our customers are concerned, our competitors are everyone who is offering a service, or a sale, or an experience which follows the same grammar of customer engagement that we do. And if we aren’t competitive when compared with these, we won’t get or keep the customer.

Worse, as Don Peppers is showing, they will tell the World about how unhappy we have made them.

But, as Amazon demonstrates, if we choose to compete in this space, with the right attention and commitment, then maybe we could become the benchmark: and that is a very powerful place to be.

(Picture courtesy of Zazzle.com).

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