Re:It costs 5x more to attract a new customer than to retain...
by maxsilver on Monday November 25, 2013 @07:36AM
(#6793713)
> Does that rule really apply to regional monopolists, though?
Exactly.
Comcast is a bad example in this article, because they have near 100% complete monopoly control over the vast majority of the markets that they serve. (And what little competition they have from DSL is almost never remotely competitive)
If you have 100% monopoly, then you can have terrible customer service, spam everyone with marketing offers, and have it work. Your a monopoly, your customers have no other choice than to do business with you, regardless of how terrible you are.
Exactly.
Comcast is a bad example in this article, because they have near 100% complete monopoly control over the vast majority of the markets that they serve. (And what little competition they have from DSL is almost never remotely competitive)
If you have 100% monopoly, then you can have terrible customer service, spam everyone with marketing offers, and have it work. Your a monopoly, your customers have no other choice than to do business with you, regardless of how terrible you are.