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Customer loyalty is something that Yahoo! has down to a fine art, and it is this that will mean that Yahoo! will win out over its rivals in
end.
Yahoo!’s ventures into partnerships with DSL providers such as
UK’s BT, Roger’s in Canada and of course,
US’s SBC, will help Yahoo! to capitalize on this customer loyalty and earn a steady income based on its excellent services. The great branded toolsets that Yahoo! offers to its DSL customers (portal services, popup blockers, spam blockers, parental controls, integrated messaging, search and a host of other integrated services – all for a comparatively very low total Broadband cost), again, excellently engineered, give
Yahoo! brand
quality reputation it deserves and places Yahoo! nicely to take over many disgruntled AOL customers, who find that they have to pay for AOL on top of
cost of their broadband services, and that AOL slows down their PCs so much that
advantage of using broadband is much diminished.
The recent rumour that Yahoo! and Earthlink are in talks is extremely exciting for anyone watching both companies. In Earthlink, Yahoo! would find a partial answer to its quest to acquire more customers who use Yahoo! to connect to
internet, and are willing to pay for
excellence of
Yahoo! experience.
Earthlink also has an excellent product set (including some of
best on
market - Accelerator, Parental controls, Virus blocker, Spam blocker, popup blocker, spyware blocker, scamblocker and privacy tools) which would complement
Yahoo! set of products dramatically.
And, of course, both companies are very interested in venturing further into
provision of better email tools – especially client-based email toolsets.
Earthlink’s troubles with “churn” (customer turnover) would be eradicated by
customer loyalty associated with
Yahoo! brand. Yahoo!’s marketing team would be a great asset to Earthlink – as would Yahoo!’s sales force – who could capitalize on
lost opportunity that is Earthlink’s. Earthlink’s revenues from advertising, content and commerce are lousy in comparison to what they could be given
Yahoo! treatment! There is a great amount of synergy between
two companies – both see their mission as customer-oriented – Earthlink’s mantra is “Earthlink revolves around you”, and has 5 million subscribers, while “Yahoo!” wants to be seen as
consumer’s “best friend”. Each has bases in Atlanta and in California, both have a laid back, informal (no ties – shorts and t-shirts) culture – and both have excellent professional engineers who really know
technical side of
Internet, and are keen to make customers happy.
Both companies have a base of engineers who are well-versed in
more “open” technologies (i.e. not simply focusing on Microsoft software), which is key to gaining and retaining customers in
Unix and Mac realms. Both are looking into more open solutions (using XUL,
Mozilla-sponsored open object manipulation standard, which offers
potential for connection-less rich content across platforms) for messaging, wireless and mobile technologies in a big way.
While I recognize my message is an old one – George Mannes was telling Yahoo! to buy Earthlink in 2001 – I believe
time is right now for both companies to make
big move. So it will be interesting to watch them over
next few weeks.

Michelle is an Ebusiness Consultant and writer with 16 years experience - mainly in Internet /ISP / Ecommerce projects