Some fascinating insights in this piece on how consumers are valued collectively and individually by organisations. I was amused to see how, in B2B trades, consumers were valued at much, much more than they were when organisations contacted consumers directly.
Some time back I had an issue with what each Facebook customer was worth (still do). But in comparison to some of the deals mentioned, they’re being very modest. Compare for example the $1147 that AT&T is proposing to spend on each T-Mobile customer or the $4,700 that Cablevision Systems Corp. will pay for each Bresnan Communications customer with the much smaller amounts that cable, utility and credit card companies pay individuals to switch.
One example quoted has Energy Plus offering JetBlue frequent flyers 3,000 points, worth around $45, for choosing it as their electric supplier.
It tells me that what the market values customers at as a group and how the companies themselves value customers as individuals appear to be at significant odds. It’s almost as if as soon as they can put a face or even a name to the relationship, the relationship loses value. A lot of value.
Is this the financial equivalent of a problem with intimacy do you think?