Monday, April 28, 2008

Customer Support Is Everyone’s Business

I was reading a Los Angeles Times article today on how difficult it can be to find customer support numbers on Web pages.

This has always been a sore spot for me; a sense of major frustration. Why do so many companies (including ones I have worked for to remain nameless) try to bury contact numbers.

While I understand that each contact a customer has with a company costs money, is that not part of the relationship you build with your customer? Whether a tube of toothpaste or a private jet, companies try to build brand loyalty.

What better way to screw that up than punt on enabling the customer to contact you, in a manner they feel most comfortable. Forcing a customer to web-only interactions, because they cost the company less, does not provide a reasonable alternative. You need to meet the customer where they want to be met.

Customer service is inherently expected in a purchase (if needed). We are a service based economy, and just because it is hard to tie support costs back to repurchase rates, it does not mean a) we should not try, and b) we should not make it easy for customers to speak with us.

Marketing should look at new ways to measure customer loyalty through support contacts. No, not in the cheesy ‘do you want fries with that’ pitch that many companies employ to try and turn their support calls into revenue generating opportunities. Yes, in the manner that you are building your brand, supporting you customers, and helping customers understand that you stand behind your products/services.

If you invest, it will return in spades- through brand reputation, re-purchase intent, re-purchase rates, and word of mouth marketing.

Wednesday, April 23, 2008

People, Planet, Profit

Hot off the presses from McKinsey (yep the stratergery consultancy):

  • Almost 70 percent of executives around the world say that global social, environmental, and business trends are increasingly important to corporate strategy
  • Yet relatively few companies act on the global trends they think will affect them most
  • Among those that do act, only 17 percent report significant benefits

Hmmm… Social, environmental and business. Sounds eerily like the ‘triple bottom line’ to me.

Full disclosure, I am a big proponent of the triple bottom line: People, Planet, Profit. I am a capitalist at heart, but do fundamentally believe that the ‘carrying capacity’ of the planet – especially in terms of people and environment, are important factors we need to address--- today.

Don’t get me wrong. I am not a dope smoking, stereotypical hippe that demonizes capitalism and the goal of profit. I am for profit (although my bank account would suggest otherwise), and could not put my hair into dreadlocks if I had to.

No, I am just an average guy who sees that 5,10,15 years from now these will be issues that are mandated through regulation. So I figure, start addressing it now, invest for the future, and you will win…

Call it what you will:

  • Cost avoidance- spend $10 today or $10,000 in the future
  • Competitive advantage- if you are ‘there’, why not push for more regulations, as will cost your competition more to catch up
  • Investment- if you can figure out how to make social and environmental economically feasible today, think of the learning curve effect for tomorrow
  • Positive PR- consumers are getting more savvy as to including social and environmental considerations in their selection criteria

Bottom line- the triple bottom line will be more important than just 70% talking about it. Soon, you will have to do something about it.

Tuesday, April 22, 2008

Wireless on the Brink?

AT&T reported their earnings, and revenue for wireless data services -- including text-messaging and mobile Internet access - surged 57%. Data now represent 22% of AT&T`s total wireless service revenue.

Motorola Inc. (MOT) said Monday it made an equity investment in VirtualLogix through Motorola Ventures, its strategic venture capital arm. VirtualLogix is a maker of virtualization software, which enables the mobility of applications from the desktop to mobile devices.

Are we on the brink? Back in 2000, with the advent of 3G, the mobile industry was going to be flipped on its head? That never materialized.

Devices have become more powerful. Access has become more ubiquitous. Are customers more willing?

The timing is getting closer, but until someone cracks the code on getting customers to invite them into their personal space (the screen on the phone) in such a way that companies can truly monetize it, we are still in the waiting game.

It will only take one to make the difference. Where is that one, and how far along are they?

Monday, April 21, 2008

Intrusion By Invitation Only

Last week I was reading an article from MediaPost on Claire Bennett, the CMO of American Express. The net of the article was that she is helping guide American Express redefine marketing to that which is invited by the customer, rather than intrusive to the customer.

While I agree with her positioning on transactional v relationship marketing, and the goal of building relationships, I do not agree with her implied statement that transactional advertising is intrusive.

We may be debating semantics here, as Claire may have not been intended that to be the casual readers (or audience’s) interpretation. But it was mine. And to me the idea that marketing is based on intrusion – whether transactional or not, is inappropriate.

Has not the goal of marketing always been to somehow be ‘invited’ into the consumers’ mind?

Marketing is successful because it transcends that gap and creatively determines ways to be invited into the consumers mind.

Friday, April 18, 2008

Are You Being Heard?

I just got done taking my 19 month old son for a hair cut. Personally, my ears are ringing like I just got out of a metal concert.

Throughout the ordeal, my guilt for my son’s screaming escalated. I found myself profusely apologizing to anyone in earshot (the whole barbershop) for his tirade. Then the barber paused, looked at me, and in the kindest words said, ‘you are the only one its affecting.’

What? With that decibel level? With that red face? With those forced tears?

I looked around. Another customer was casually chatting with his barber. Waiting customers were leafing through magazines. They were oblivious to the rant.

Why? Could they have been there and done that before- and therefore they were de-sensitized? Could it have been lost among the clutter? Could it be that the screaming was not as loud as I thought it was?

At this point I do not know. What I do know is that it made me stop and think: When I communicate, am I really being heard?

Tuesday, April 15, 2008

'Green' For The Lack Of A Better Word, Is Good

Green advertising and initiatives are everywhere these days. Subaru, Johnson and Johnson, even McDonalds.

Seems as if market research continues to drive corporate marketing campaigns. A variety of reports in B2C note that customers overwhelmingly consider sustainable or environmental details when making purchase decisions (what is not clear yet is does that make a difference in their actual purchase behavior). In B2B I have seen several studies that triangulate around the ‘80% of customers would pay up to 5% more’ for a product or service that is tied to ‘green’. Again, at the end of the day will the funds follow the hearts.

Regardless, this is a markers dream. A new field to play in. A new campaign to design and execute.

But is it all for real? Are the companies really embracing the change? Or are they ‘putting lipstick on a pig’, to use the cliché? It can be very hard to tell.

There is one site I really like to review, The Greenwashing Index. While not 100% comprehensive, it is very informative. With all the initiatives out there, they have their plates full.

Check them out at: http://www.greenwashingindex.com/.

BTW- I consumed no paper and produced no waste in the posting of this blog. My carbon footprint in the production of this message was negligible, and I will offset that by riding my bike this evening rather than driving. (Fact or Fiction? - maybe the greenwashing index will comment :) ).

Friday, April 11, 2008

Probabilities

Today is my wife’s birthday. It is also her great aunt’s birthday. It is also our daughter’s birthday.

So the natural question arises. What is the chance of that? And should we then play the lottery and hope to win $200M?

Let’s focus on the first. Even though these are family members, statistics do not care. As such each ‘event’ is considered independent of one another. Logically, each probability is then 1/365 (ignoring leap years for practical reasons).

Thus the total probability of any three people have the same birthday is a 7.5 in 1 million chance, or 1 in ~133,500.

Not near as remote as you would initially think. Not near the remote odds of winning the lottery.

So as for the second question above: Oh well, guess that $200M will go to someone, eventually……

Thursday, April 10, 2008

Change The Playing Field

I just finished reading Blue Ocean Strategy. While I love to read, and there are many books that I take snippets from, Blue Ocean Strategy hit me a bit deeper.

The premise of the book is that many companies slug it out for market share, and define their markets in the exact same way. The main way to win in this game is to reduce costs and execute better than your competition. Another is to outspend- whether on branding, additional features and functionality, or other aspects to try and differentiate.

The authors central thesis: create new markets and compete differently.

Namely, change the game on your competition. Don’t compete against them, redefine the field of play, offer up a different game. Play where they are not playing.

Think about how many companies compete in the battle for a limited share of the pie: automobiles, computers, laundry detergent… this list goes on and on.

You might be saying–

  • How can a traditional sector change the playing field?
  • It is easier to change and define a new emerging sector
  • Economies shift over time… computers could once compete in this ‘blue ocean’ but they are all the same now, they have to slug it out

I support the authors in their postulation.

Here is a fine example…. What is a more traditional business than grocery? Innovation really does not apply right--- you go to get your food, and want a reasonable price, right?

Whole Foods said wrong. They changed the playing field. While traditional grocers all offer the same staples, and compete on value pricing and convenience, Whole Foods changed the game. As anyone who shops there knows, price is not their competitive advantage, nor can you find the litany of P&G or Kellogg products. Whole Foods determined there is a customer set that does not think these points are important. Whole Foods determined the experience, the value system that Whole Foods stands for, the variety of products you can find at Whole Foods that you cannot elsewhere (unless you hit specialty shops all over town), are the strong points. They changed the playing field.

There are many more examples like this, and the book does a great job in bringing many to life. To be certain, the process is not easy, and takes fortitude, investments, and embracing a certain level of risk.

As can be seen though, the rewards can be great.

Wednesday, April 9, 2008

Meeting People Where They Are Ready To Be

I have had a series of interesting conversations recently. Interesting, as each conversation was on an entirely different topic, but each had a central theme- trying to engage people to follow a vision.

One conversation was a non-profit. Another, a corporate initiative. A third, a friend looking to get a group together for an event. Each person I chatted with was struggling with ‘being ahead of the others’ in their thoughts, planning, or execution.

Each time I remembered a quote I read from a consultant (I apologize in advance as I do not remember who or where this came from). The quote she had was, “you have to meet people where they are ready to be, before you can lead them down the path to an entirely new zone.”

The quote was in reference to introducing ‘green’ initiatives into corporations, but has a much broader application to nearly anything and everything…. As my conversations confirmed.

The best way to enable people to see, share and follow your vision is to first meet them where they are ready to be. Meet them, work with them, enable them to share in the process, and become engaged. Empower them to help craft the future of where you want to go, and be flexible in how you get there.

The rewards will be amazing, and your vision will be realized.

Tuesday, April 8, 2008

When It’s All On The Line…..

When it is all on the line, and the pressure is on, can you deliver? Memphis learned the hard way last night.

I do not want to take away ANYTHING from their accomplishments this year. 38 wins and only 2 losses. Players, who time and time again, came up big throughout the year to complete one of the best seasons in college basketball history. An arduous journey through the 2008 tournament to play for the finals against a great Kansas team.

Memphis had the game under control. Kansas was down by 9 in the final minutes and forced to foul, in what is usually a futile attempt, to try and pull off a win. And what happened to Memphis on the line… they could not deliver in the pressure moments.

After hitting for over 80% from the line throughout the game, their free throw percentage tumbled when it was most important. As Billy Packer noted, “it is easy to make the shots when you are up by 9, but what happens when you most need to make them.”

I feel for Memphis. I feel for those in business who can execute flawlessly day in and day out, but slip when the pressure is on. I feel for the student who knows the material inside and out, but cannot get more than a 75% when it comes to the test.

We all have had these moments in our lives. The big story will be, how will Memphis deal with this loss? How will they step up to the ‘line’ and learn from this? What will they internalize, so as to improve next time?

Knowing John Calipari, a whole lot.

How about you?

Sunday, April 6, 2008

What is Microsoft Thinking?

Has Microsoft has gone off the deep end with their bid for Yahoo!? Microsoft is threatening a hostile takeover if the Yahoo! board does not accept its offer. This is a dangerous and slippery slope.

Mergers between companies are a rough road at best. The landscape is littered with high profile failures. Throw on top of that a threat of a hostile takeover. One must ask, does that help?

Microsoft has taken a position threatening Yahoo! leadership to accept ‘or else’. How does that help realize the potential that built into the $40B offer? How does that engage Yahoo! or Microsoft employees to work together if the merger does happen? How does this set either side up for success?

If you truly believe that cultural integration can make or break a merger, doesn’t a hostile takeover start companies off on the wrong foot?

Statistics purport that 75% of all mergers and acquisitions fail to deliver against the claims made in the deals. Classic examples are abound:

· AOL/Time Warner
· Citicorp/Travellers
· Pfizer/AstraZenica
· Oracle/Seibel

The list goes on…..

The best M&A activity, in my opinion, is based on building a solid relationship over time. Start with a small working agreement- co-marketing, cooperative sourcing, cross sales, shared services…. something. Test the waters and see how it goes. With each success have the relationship delve a bit deeper into the organizations. You can measure and test successes, you can address risks. Then, and only then, will it become clear if the two organizations can function better as one.

Over time, you gain a better understanding of true value. You have a better baseline to analyze for proper pricing. You have engaged employees throughout the organizations (not just leaders). You have started the journey down the path of realizing the benefits.

Good luck Microsoft. Do we see another historical case study for business schools in the making? I will be impressed if you prove history wrong.

Friday, April 4, 2008

NBKO- Welcome

No, not a secret society. No, not a new term for boxing. Not even anything sexy. Just a simple introduction to my New Blog

I am making the transition from internal corporate blogging to a broader audience. Be patient. Be kind. Be truthful. This is the beginning of our journey.

Full disclosure: I plan to use this blog to share my thoughts on nearly anything that pops to mind. Be it business, our environment, politics, the weather, or someone who I saw on the streets and made me think of something. I cannot say there will be a consistent theme, as life interests me too much to only blog on one topic.

Call it a bit James Joyce. Call it a bit Steve Jobs. Call it a bit Homer Simpson. Call it what you want.... It will be 100% Ted Nitka.

So, welcome to my little part of the Internet. Welcome to my thoughts.

Please share yours as well.

Have a good day!