I used to work at a company that had a US IP address and while there I started using Pandora as my streaming music service of choice. Only after leaving that role did I realize the lesson Pandora taught me about relevance, personalization and switching costs.

Let me explain.

Pandora is actually a great lesson in how to show your customers you listen and learn about them. When you start a personal station the first thing you are asked to do is pick some artists you like. This is not dissimilar to companies asking what categories of product or what types of alerts you want but Pandora immediately shows you they listened because the first song you hear on your station is from one of the artist you told them you liked. …

Michael G. Cohen