How to Keep Your Customers

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  1. You're thinking about doing X.
  2. But X will decrease your revenue.
  3. Do you do it?

For instance, take Amazon.

The Amazon + Competing Marketplace

If you take a look at practically any Amazon product, you'll notice competing sellers selling the same item for often cheaper prices than Amazon's.

  • "Stoooooooopid decision!" they said.
  • "BEZOS! What the the mother muffin?" the investors yelled.
  • "Incompetence at its finest!" the media screamed.

Here was Amazon, the bestselling retail site on the web, giving an avenue for its competitors to undercut its prices.


Did Amazon make a good decision? The company made one of its finest decisions.

By first putting customer interests first:

  1. It kept the bargain hunters shopping through its website.
  2. It prevented upstart competitors (like to chip away at its customer base.
  3. It laid a foundation for a long-term growth through a wider audience base.

Now, instead of Bishikitikakikaku checking Amazon's reviews of Harry Potter, and then leaving its website to shop for a cheaper competitor, Amazon kept Bishikitikakikaku on its website -- purchasing the product at his desired price and giving Amazon a nice chunk in commission fees.


Take Google

Google's biggest competitors were disguising ads within their results when Google started.


We all wanted better search results; searching for X should display the best results for X our awesomeness all said.

Google focused first on its customers' interests:

  1. 'We will display the best search results.'
  2. 'We will not disguise ads.'
  3. 'We will not do evil.'

BAM. What happened?

Everyone flocked to them like wild bunnies chasing ostriches in the zoo while drinking some Hennessy in the woods.

  • "OmGZ! oMGz! cHeCk oUT ThiZ gReaT wEbsiTe! iT's caLLeD! OMGZ!" we remember our friends saying.

Google won the big monstrous battle of the search wars by delivering the absolute best search results for its customers.

Don't Let Your Competitors Take Your Customers

Someone else will snatch your customers if if you lose focus on your customers' best interests.

  • You keep and win customers by continually focusing and delivering what's the absolute best for them -- even if it's a short-term loss.
  • A larger audience base create even more opportunities for your bad self to find ways to monetize that audience for the long-term.

When you do something that put your customers' interests first, tell those short-term financial nincompoops: "Hey, the increased equity value of our business actually obliterates any short-term revenue we could've gain. BAM SON!"

Then ride off into the sunset with an ostrich from the diner.

Crown The Customer.

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Posted on October 10

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