How Do You Sell A Commodity?
3 February 2004
Telecommunication services have become commodities in most segments. Clearly, residential phone lines are a commodity business. Long distance is a commodity in both the residential and commercial segments.
Local (CLEC) communications companies can’t get that through their marketing skulls. They continue to try to differentiate using some of the most arcane and (frankly) ridiculous terminology a business person ever hears.
At the top end of the communications spectrum where truly high bandwidth and services are sold, there are still some key points of differentiation. Service still matters in that arena. Being able to provision a coast-to-coast line in a matter of hours rather than months provides big advantages.
Unfortunately, the traditional communications companies continue to use heavy-handed ploys and negotiating tactics to lure customers. The methods are simply variations on the Worldcom phone call during dinner.
With the possibility that MCI will come out of bankruptcy in thirty days or less and Savvis making noise like this, there’s an opportunity for the industry to recover from its reputation for slippery sales tactics and techniques. Often these result from some distorted sense that they can find a way to differentiate commodity products. Eggs are eggs.
It’s unlikely to happen, but it’s something that would be welcomed by every phone service customer who struggles to understand the simplest of phone bills.
Filed under: Bandwidth