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The Journey

Transforming the Patient-Provider Experience

Written, edited and curated by Loyale founder Dan Peterson, The Journey explores ideas and innovation to enrich the patient-provider relationship

Why does being a market leader matter?

Posted by loyale on Aug 6, 2017 11:03:19 PM
post3I admit it. I hate to shop. But when I have to shop, I go to Nordstrom’s, not Macy’s. When I’m feeling like someone special and want to stay at a hotel I go with the Ritz Carlton instead of a Marriott or a Hilton. If traveling internationally, rather than regretting that I don’t have my own jet I’ll choose Emirates over American or United. And wherever I travel, I ride with Uber because it’s easy, dependable, predictable and transparent, unlike many of my experiences with Hertz and Avis among others. I sometimes feel sorry for the taxi industry, but then I think about the difference between leaving my mobile phone in an Uber versus a taxi. It’s no wonder they’re threatening taxi and rental car businesses all around the world.
There is one place I love to shop. I do it so easily and so often that my wife says I’m at risk of becoming an actual shopper. I shop at Amazon … the company The Harris Poll says Americans hold in higher esteem than any other company. Amazon’s mission … to become “Earth’s most customer-centric company.”

What’s fascinating about all of these companies is that they distance themselves from their competition by leveraging technology to drive interactions that feel completely personal, almost intimate.

  • Nordstrom combines robust business intelligence and customer-centered policies with great, well trained people you want to invite to your daughter’s wedding.
  • Ritz Carlton doormen announce your name to the front desk via radio the moment you step out of your car so the registration desk can greet you by name and get you into your perfectly-maintained-already stocked-with-all-your-favorite-stuff room. Once there, everyone at the hotel treats you like you’re the center of the universe. Everyone.
  • Like all airlines, Emirates analyzes passenger and frequent flyer data to optimize distribution and enhance yield. But they take it further, delivering white-glove service and meticulously maintained planes that recall the golden age of air travel.
  • And of course everyone’s new favorite store Amazon, who crunches so much data about me and people like me, they know what I want before I know it and serve it up just the way I want it.

By establishing themselves as category leaders or defining new categories entirely, they’ve freed themselves from competitive constraints. Think about it. None of these extraordinary companies offer the lowest cost. In fact, with the exception of Uber, there is always a less expensive and perfectly adequate alternative for everything I buy from Nordstrom’s, Ritz Carlton, Emirates, and Amazon. Why do I choose them? Because the experience of being a customer of each of these companies makes me want to be their customer - so much that I am willing to pay a premium in order to buy from them.

It’s a fact. People will pay more for the same product or service … sometimes much more … if it comes with an outstanding customer experience. The more intimate or personal the purchase, the more important the experience is. Being a market leader matters because market leaders own the best customers and make more money than their competitors for delivering precisely the same products and services.

That’s why being a market leader in your category, geography, etc. matters. It works in clothing and shoes, hospitality and ecommerce … and now it’s about to happen in healthcare as well.

Topics: patient experience, market leadership, patient consumer

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