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They end up focusing on the lowest-cost way to serve customers rather than thinking about how valuable their customers are and can be. Trying to compete with undifferentiated products isn’t new, and utilities aren’t as unique as they sometimes think. When financial services and telco firms were deregulated, they faced competition with a very limited number of undifferentiated products. They also had a huge cost base, which they believed was the most efficient way of servicing customers. They needed to engage with customers and learn how to serve them better, while also bringing down the cost base so they could actually fight emerging competition from new entrants and other telcos. Critchlow: I’ve never had a conversation with my children about our electricity bill, but I’ve definitely had a conversation with them about their iPhone usage.
Dullweber: I agree.