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	<title>Business is Personal &#187; time-warner</title>
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		<title>Comcast: Choosing the wrong way</title>
		<link>http://www.rescuemarketing.com/blog/2008/09/03/comcast-bandwidth-limits/</link>
		<comments>http://www.rescuemarketing.com/blog/2008/09/03/comcast-bandwidth-limits/#comments</comments>
		<pubDate>Wed, 03 Sep 2008 10:22:14 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Positioning]]></category>
		<category><![CDATA[Pricing]]></category>
		<category><![CDATA[Sales]]></category>
		<category><![CDATA[Small Business]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[business]]></category>
		<category><![CDATA[comcast]]></category>
		<category><![CDATA[time-warner]]></category>

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		<description><![CDATA[Comcast appears to feel that it&#8217;s a problem that their customers actually use their service. OK, that&#8217;s a little vague. More accurately, they have a problem with that small percentage who use their service *a lot* despite doing so within their (current) terms. Their new solution to this &#8220;problem&#8221; is to cut off that customer [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><span class="drop_cap">C</span>omcast appears to feel that it&#8217;s a problem that their customers actually use their service. OK, that&#8217;s a little vague.</p>
<p>More accurately, <a href="http://philadelphia.bizjournals.com/philadelphia/stories/2008/08/25/daily33.html?b=1219636800^1693058&amp;ana=e_abd" target="_blank">they have a problem with that small percentage who use their service *a lot* despite doing so within their (current) terms.</a></p>
<p>Their new solution to this &#8220;problem&#8221; is to cut off that customer and probably motivate them to avoid being a Comcast customer forever. I don&#8217;t imagine that this sort of action will contribute to good word of mouth marketing by former Comcast customers.</p>
<p>While their bandwidth limits seem rational, history has proven that customer needs will expand beyond that &#8211; and quite often more quickly than Comcast would respond with policy changes or additional billing options.</p>
<p>In contrast, Time-Warner is testing tiered pricing. The more you use, the more you pay. That makes sense, particularly beyond a certain level.</p>
<p>In every group of customers, there&#8217;s a percentage of high-use customers.</p>
<h3>You have two choices</h3>
<ul>
<li>Cut them off. Tick them off. Run them (and probably their friends) off.</li>
<li>Find a way to bill them that reflects their use and the value you&#8217;re delivering.</li>
</ul>
<p>Think about that for your business. There&#8217;s probably a small percentage of high profit customers (or potential high profit customers) who might benefit from an additional level of service.</p>
<p>Running off the customers who need your products and services the most seems a little crazy, doesn&#8217;t it?</p>
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