Tretakoff Musings
Sunday, February 15, 2009
Infinite Wallet Space for Loyalty Cards
Disclaimer: I am in the business of helping loyalty programs thrive.
With all of the loyalty programs out there, it seems bizarre that so many companies still use physical cards. There's good reason, of course: the barcode on the card is read by the point of sale system (POS). But the average American's wallet only has 6-8 slots, total: after license, credit cards, ATM cards, and the other essentials, there is rarely room for another.
If you have an iPhone, you might be in luck. A new free application, called WalletZero, allows you to simply enter in the number on your loyalty card. If it's a card that features a barcode, it generates it on the large iPhone screen, allowing it to be scanned right off the screen at POS. The app knows many of the most common programs, and even allows you to enter ones for those that are not necessarily barcoded.
Lots good about this app, but definitely some improvements could help. First, it relies on the developer to add more programs; I'd like to see a more freeform input approach. Second, it doesn't personalize with the logo or colors of the program. Finally, there are various misspellings, but those are minor.
Overall, a nice way to apply technology to a common problem. A great first effort, and I'd love to see it thrive!
Disclaimer: I am in the business of helping loyalty programs thrive.With all of the loyalty programs out there, it seems bizarre that so many companies still use physical cards. There's good reason, of course: the barcode on the card is read by the point of sale system (POS). But the average American's wallet only has 6-8 slots, total: after license, credit cards, ATM cards, and the other essentials, there is rarely room for another.
If you have an iPhone, you might be in luck. A new free application, called WalletZero, allows you to simply enter in the number on your loyalty card. If it's a card that features a barcode, it generates it on the large iPhone screen, allowing it to be scanned right off the screen at POS. The app knows many of the most common programs, and even allows you to enter ones for those that are not necessarily barcoded.
Lots good about this app, but definitely some improvements could help. First, it relies on the developer to add more programs; I'd like to see a more freeform input approach. Second, it doesn't personalize with the logo or colors of the program. Finally, there are various misspellings, but those are minor.
Overall, a nice way to apply technology to a common problem. A great first effort, and I'd love to see it thrive!
Labels: iPhone, Loyalty Lab, retail, Software
Wednesday, May 14, 2008
How NOT To Do E-mail Marketing #147
In my business, I tend to work with a lot of online marketers. I also tend to work with a lot of companies who look at loyal customers, and focus on ways to keep them loyal. So, when I come across a particular example in my personal life of one that does both so badly, I have to point it out.
Today's example is a company called Haggar. I know, you're thinking "the people that make those expandable slacks my grandfather wore?" Yes, them. About 10 years ago, they invested heavily in a new brand image: hipper, cheaper, and good quality. They opened a ton of factory outlet stores, while bringing the new lines into retailers like Mervyn's, JC Penney, etc. And thus the modern Haggar was born: a mix of casual clothes and traditional suits at extremely low prices, with modern styling.
5 or 6 years ago, I used to commute 120 miles each way to work. I know, sounds insane, but I loved the company, and the commute started in Marin County, CA, and ended in Monterey, CA: now, if you have to commute, that's the route to do it. Midway was one of the largest outlet malls in Northern California; I'd stop off occasionally to get a burger, coffee, or pick something up. There, I discovered the new Haggar, with their $5 silk shirts and $10 khakis, it was always easy to pop in. They expanded into designs emulating Tommy Bahama, etc., and I was really hooked. Later, my devotion to them extended to their Petaluma store, after I stopped commuting down South, and I routinely stopped in to part with my cash for their products. They had me on the mailing list, even did special orders, and more. Heck, the Petaluma store people knew my name and by sight!
So, we have a loyal customer, who spends lots of money with you, and has even provided specific marketing information about themselves. How do you communicate with them? I guess, if you are Haggar, like this:
Ok, first, I understand locations close. Hey, my business was not enough to keep them going. Here's why this was such an egregious example of poor e-mail marketing:
- Why is this the first message I received about that location? Why not tell me before hand, maybe offering me incentives to visit for "closeout" pricing? A completely perfect revenue generating opportunity wasted: you're telling me they preferred to pack and ship the merchandise out of that location, rather than discount it and sell it to me? C'mon.
- They clearly know I like that location; they sent me this e-mail, after all. But you are telling me they can't offer me a list of other nearby locations in the e-mail? Instead, I have to visit the site? Ok, I can accept that's a clever way to get me to interact with the site and potentially buy something...if they had e-commerce.
- On that same note, the link to the site to find other nearby locations links only to the homepage. Instead of delivering me to a store locator, I have to crawl around your bad site to find one of the worst locators ever: lists all locations in CA, including department stores, only to find the one outlet? Ugh.
- This e-mail was literally this HUGE image. Nothing else. This is the way you want to convey bad news? Not with an incentive to visit the other location, or maybe some text to soften the news? Nope, that's how they roll.
Loyalty and E-mail marketers out there, beware...
Today's example is a company called Haggar. I know, you're thinking "the people that make those expandable slacks my grandfather wore?" Yes, them. About 10 years ago, they invested heavily in a new brand image: hipper, cheaper, and good quality. They opened a ton of factory outlet stores, while bringing the new lines into retailers like Mervyn's, JC Penney, etc. And thus the modern Haggar was born: a mix of casual clothes and traditional suits at extremely low prices, with modern styling.
5 or 6 years ago, I used to commute 120 miles each way to work. I know, sounds insane, but I loved the company, and the commute started in Marin County, CA, and ended in Monterey, CA: now, if you have to commute, that's the route to do it. Midway was one of the largest outlet malls in Northern California; I'd stop off occasionally to get a burger, coffee, or pick something up. There, I discovered the new Haggar, with their $5 silk shirts and $10 khakis, it was always easy to pop in. They expanded into designs emulating Tommy Bahama, etc., and I was really hooked. Later, my devotion to them extended to their Petaluma store, after I stopped commuting down South, and I routinely stopped in to part with my cash for their products. They had me on the mailing list, even did special orders, and more. Heck, the Petaluma store people knew my name and by sight!
So, we have a loyal customer, who spends lots of money with you, and has even provided specific marketing information about themselves. How do you communicate with them? I guess, if you are Haggar, like this:
Ok, first, I understand locations close. Hey, my business was not enough to keep them going. Here's why this was such an egregious example of poor e-mail marketing:
- Why is this the first message I received about that location? Why not tell me before hand, maybe offering me incentives to visit for "closeout" pricing? A completely perfect revenue generating opportunity wasted: you're telling me they preferred to pack and ship the merchandise out of that location, rather than discount it and sell it to me? C'mon.
- They clearly know I like that location; they sent me this e-mail, after all. But you are telling me they can't offer me a list of other nearby locations in the e-mail? Instead, I have to visit the site? Ok, I can accept that's a clever way to get me to interact with the site and potentially buy something...if they had e-commerce.
- On that same note, the link to the site to find other nearby locations links only to the homepage. Instead of delivering me to a store locator, I have to crawl around your bad site to find one of the worst locators ever: lists all locations in CA, including department stores, only to find the one outlet? Ugh.
- This e-mail was literally this HUGE image. Nothing else. This is the way you want to convey bad news? Not with an incentive to visit the other location, or maybe some text to soften the news? Nope, that's how they roll.
Loyalty and E-mail marketers out there, beware...
Labels: bullshit, business, Loyalty Lab
Tuesday, December 11, 2007
"What do you want me to do, learn to stutter?"
Loyalty Lab is on the move, heading to the legendary 111 Sutter St., home to one of history's greatest literary detectives, Sam Spade. Talk about a building steeped in tradition, this one is practically dripping with it.
As the Fat Man from the black bird's tale once said, "These are facts, historical facts, not schoolbook history, not Mr. Well's history, but history nevertheless."
View Larger Map
See you in the funny papers.
Loyalty Lab is on the move, heading to the legendary 111 Sutter St., home to one of history's greatest literary detectives, Sam Spade. Talk about a building steeped in tradition, this one is practically dripping with it.As the Fat Man from the black bird's tale once said, "These are facts, historical facts, not schoolbook history, not Mr. Well's history, but history nevertheless."
View Larger Map
See you in the funny papers.
Labels: Loyalty Lab, San Francisco
Wednesday, September 05, 2007
A Tale Of Two Companies And Loyalty
Publishing this in both of my blogs.
Two very interesting things this week happened that illustrated how two consumer electronics companies view being loyal to their customers...with surprising differences.
The first is Palm. Now, I'll preface this by saying I have been a very loyal Palm user for many years. I was entranced by the Palm III, years ago, and I have stuck with it: A Palm V, a Palm Vx, Handspring Visor, Handspring Visor Prism, VisorPhone, Tungsten T, Palm TX, and now my Treo 680. Through them all, I have always marveled at Palm's singleminded focus on usability and features: I have looked at alternatives every time, and settled on Palm's offering. Yet there's no denying that Palm has clearly lost any shred of a leadership position: the Danger devices, the ever improving (but still painful) Windows Mobile, and now the iPhone have all eclipsed Palm's innovation. Heck, even the new Blackberrys are getting in on the act.
Palm's answer? The Foleo, which was a device in search of a need. Basically a stripped down laptop with some interesting sync capabilities, was recently announced with near universal derision. This was Palm's big attempt to become relevant again? Releasing an overpriced, underpowered laptop that gave you all of the overhead you hoped to leave behind with your Treo, and none of the benefits (no movies on the Foleo; GREAT for those cross-country flights)? This was a major disappointment.
Now, take for a second the contrast with Apple, the second company in my discussion here. Everyone knows the story: after being beaten down to inches of their life, and having to take a bailout from Microsoft just to survive, visionary Steve Jobs proceeded to start to take bold risks with devices that filled needs for the customer base. It started with the iMac: an all-in-one computer that showed style, class, and affordability. But the really big hit came with the iPod; sure, there had been MP3 players on the market for years, but nothing like this. Easy to use, powerful, and paired with a real application to manage your media, the iPod became ubiquitous. In a short amount of time, every other company combined could not compete with Apple's iPod sales.
They continued to listen to their customers, and innovate with devices they wanted. Watch movies on the iPod? Got it, and, oh, by the way, a whole digital movie and TV store to go with it. Want smaller? Welcome to the Nano and Shuffle. And yes, unless you have been living under a rock for the last 3 months, the iPhone arrived to great fanfare and awe inspiration, outselling all other smartphones in the US in just its first month of existence, at almost twice the price of others. In short, the iPhone represented the crowning moment of Apple's recovery: they completed one of the greatest corporate comebacks of all times, with fanatically passionate customers and incredible innovation.
Now, what if I told you that this last week:
A. One company listened to its customers, focused on its amazing tradition of innovation, ruthlessly pursuing its focus, and was willing to take a financially risky move to try to ensure its continued success.
B. The other company continued to alienate its core customers, pushing away from true innovation, and selling itself out to a technology that had already been panned by many critics and leaves core users with a sense of unease about the future and if the company can be trusted.
Your answer to A. would be, instinctively, Apple, and B., Palm, right?
Wrong. Exactly the opposite.
Let's look at A. Palm heard the early reviews of its core customers to the Foleo, and decided to kill it before it ever reached the market. Period. The CEO announced the decision in his blog, as well as the estimated $10 million it cost to develop. He knew that he could not afford a flop, and could not afford to alienate the loyalty of his core customers. Instead, he not only killed the Foleo, but announced a refocusing of efforts around the Palm platform, reducing their involvement with the ever diluted Windows Mobile space. Palm knows that, without loyal customers who feel the company is responsive to their needs, and focused on the great devices, it will die. In truth, it may die even so, but releasing the Foleo would be the albatross that would pull down any hopes of a recovery. It took guts, determination, and was a direct reflection of the responses of loyal customers, and it was cautiously applauded by all.
As to B., well, you might have heard by now. Apple introduced the iPhone 2 months ago at $600 and, by all accounts, it continues to sell faster than any other smartphone. With no truly groundbreaking follow up, Steve Jobs decided to cannibalize his loyal customer base by announcing an unprecedented price cut: a full third of the price lopped off the phone, 60 days after it was released to, arguably, the greatest hype ever. Yes, there were some other variations on the iPod theme too, but the real story has been the absolute smack in the face Apple delivered to the thousands of customers who camped out to get their hands on a $600 phone that is, well, beautiful, but not meeting the expectations of the target audience it was priced for.
After days of uproar, his Steveness issued the most backhanded apology, mollifying as best he can those that saw $200 wasted with a promise for a $100 credit on iTunes media. Now, is this the way you apologize to your most loyal customers?:
Worse, language like the above was paired with a a promise that the details of the $100 credit would be worked out soon ("Stay tuned."). How did a company that built itself back from death's door not realizing by throwing their best customers under the bus that they better have a medical team standing by to assist? They are "working it out?" This should have been anticipated and announced at the same time as the $200 price cut.
We've seen two companies who rely on loyalty from customers take very different approaches this week, and we have seen the results. Taking your loyal customers for granted is extremely dangerous, and both these companies should know: both had over 80% of their respective markets at one time, and both fell to disastrously smaller levels. One rebounded, but has not seemed to learn from the mistakes; the other is just beginning. There is only one sure thing here: both made very grave errors with their loyal customers, and the responses usually dictate the future.
Two very interesting things this week happened that illustrated how two consumer electronics companies view being loyal to their customers...with surprising differences.
The first is Palm. Now, I'll preface this by saying I have been a very loyal Palm user for many years. I was entranced by the Palm III, years ago, and I have stuck with it: A Palm V, a Palm Vx, Handspring Visor, Handspring Visor Prism, VisorPhone, Tungsten T, Palm TX, and now my Treo 680. Through them all, I have always marveled at Palm's singleminded focus on usability and features: I have looked at alternatives every time, and settled on Palm's offering. Yet there's no denying that Palm has clearly lost any shred of a leadership position: the Danger devices, the ever improving (but still painful) Windows Mobile, and now the iPhone have all eclipsed Palm's innovation. Heck, even the new Blackberrys are getting in on the act.
Palm's answer? The Foleo, which was a device in search of a need. Basically a stripped down laptop with some interesting sync capabilities, was recently announced with near universal derision. This was Palm's big attempt to become relevant again? Releasing an overpriced, underpowered laptop that gave you all of the overhead you hoped to leave behind with your Treo, and none of the benefits (no movies on the Foleo; GREAT for those cross-country flights)? This was a major disappointment.Now, take for a second the contrast with Apple, the second company in my discussion here. Everyone knows the story: after being beaten down to inches of their life, and having to take a bailout from Microsoft just to survive, visionary Steve Jobs proceeded to start to take bold risks with devices that filled needs for the customer base. It started with the iMac: an all-in-one computer that showed style, class, and affordability. But the really big hit came with the iPod; sure, there had been MP3 players on the market for years, but nothing like this. Easy to use, powerful, and paired with a real application to manage your media, the iPod became ubiquitous. In a short amount of time, every other company combined could not compete with Apple's iPod sales.
They continued to listen to their customers, and innovate with devices they wanted. Watch movies on the iPod? Got it, and, oh, by the way, a whole digital movie and TV store to go with it. Want smaller? Welcome to the Nano and Shuffle. And yes, unless you have been living under a rock for the last 3 months, the iPhone arrived to great fanfare and awe inspiration, outselling all other smartphones in the US in just its first month of existence, at almost twice the price of others. In short, the iPhone represented the crowning moment of Apple's recovery: they completed one of the greatest corporate comebacks of all times, with fanatically passionate customers and incredible innovation.Now, what if I told you that this last week:
A. One company listened to its customers, focused on its amazing tradition of innovation, ruthlessly pursuing its focus, and was willing to take a financially risky move to try to ensure its continued success.
B. The other company continued to alienate its core customers, pushing away from true innovation, and selling itself out to a technology that had already been panned by many critics and leaves core users with a sense of unease about the future and if the company can be trusted.
Your answer to A. would be, instinctively, Apple, and B., Palm, right?
Wrong. Exactly the opposite.
Let's look at A. Palm heard the early reviews of its core customers to the Foleo, and decided to kill it before it ever reached the market. Period. The CEO announced the decision in his blog, as well as the estimated $10 million it cost to develop. He knew that he could not afford a flop, and could not afford to alienate the loyalty of his core customers. Instead, he not only killed the Foleo, but announced a refocusing of efforts around the Palm platform, reducing their involvement with the ever diluted Windows Mobile space. Palm knows that, without loyal customers who feel the company is responsive to their needs, and focused on the great devices, it will die. In truth, it may die even so, but releasing the Foleo would be the albatross that would pull down any hopes of a recovery. It took guts, determination, and was a direct reflection of the responses of loyal customers, and it was cautiously applauded by all.As to B., well, you might have heard by now. Apple introduced the iPhone 2 months ago at $600 and, by all accounts, it continues to sell faster than any other smartphone. With no truly groundbreaking follow up, Steve Jobs decided to cannibalize his loyal customer base by announcing an unprecedented price cut: a full third of the price lopped off the phone, 60 days after it was released to, arguably, the greatest hype ever. Yes, there were some other variations on the iPod theme too, but the real story has been the absolute smack in the face Apple delivered to the thousands of customers who camped out to get their hands on a $600 phone that is, well, beautiful, but not meeting the expectations of the target audience it was priced for. After days of uproar, his Steveness issued the most backhanded apology, mollifying as best he can those that saw $200 wasted with a promise for a $100 credit on iTunes media. Now, is this the way you apologize to your most loyal customers?:
"There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced."
Worse, language like the above was paired with a a promise that the details of the $100 credit would be worked out soon ("Stay tuned."). How did a company that built itself back from death's door not realizing by throwing their best customers under the bus that they better have a medical team standing by to assist? They are "working it out?" This should have been anticipated and announced at the same time as the $200 price cut.
We've seen two companies who rely on loyalty from customers take very different approaches this week, and we have seen the results. Taking your loyal customers for granted is extremely dangerous, and both these companies should know: both had over 80% of their respective markets at one time, and both fell to disastrously smaller levels. One rebounded, but has not seemed to learn from the mistakes; the other is just beginning. There is only one sure thing here: both made very grave errors with their loyal customers, and the responses usually dictate the future.
Labels: Apple, business, gadgets, iPhone, Loyalty Lab, news, Palm, Treo
Saturday, May 26, 2007
My Other Blog
Believe it or not, I actually contribute to another blog for my company, the Loyalty Dogs Blog. I tend to put sporadic entries in, but the comments from Mark, our CEO and one of my co-founders, are actually extremely insightful and well stated. Charles' comments are incredibly helpful, as well.
If you're looking to see another side of me, come run with the Dogs.
Believe it or not, I actually contribute to another blog for my company, the Loyalty Dogs Blog. I tend to put sporadic entries in, but the comments from Mark, our CEO and one of my co-founders, are actually extremely insightful and well stated. Charles' comments are incredibly helpful, as well. If you're looking to see another side of me, come run with the Dogs.
Labels: blogs, Loyalty Lab
Wednesday, January 17, 2007
Movin' on up!
Loyalty Lab recently moved offices to 100 Pine St, on the 21st floor. I've mostly worked in low-rises on the Peninsula; our last office was the 7th floor. But this is a GREAT view of the city. Located in the heart of downtown, we see the Bay, the other buildings, and can see the icons of San Francisco, such as the Ferry Building and Transamerica pyramid.
My office is wonderful, looking down on the Tadich Grill, a favorite restaurant of mine, and one of the oldest in San Francisco. From my desk, I can catch a glimpse of Coit Tower and still hear the cable cars, 200 feet below. A welcome respite from the cramped quarters we've had for some time.
The strange thing about the building is the noise and vibrations from the elevators. Years ago, I visited a company in the Twin Towers in NY, and was struck by the din from the passing elevators, and the vibrations of the winds and elevators. It's eerie, being up so high, and feeling shakiness, especially in San Francisco, but it's not too hard to get used to.
Come by and visit for lunch!
Loyalty Lab recently moved offices to 100 Pine St, on the 21st floor. I've mostly worked in low-rises on the Peninsula; our last office was the 7th floor. But this is a GREAT view of the city. Located in the heart of downtown, we see the Bay, the other buildings, and can see the icons of San Francisco, such as the Ferry Building and Transamerica pyramid. 
My office is wonderful, looking down on the Tadich Grill, a favorite restaurant of mine, and one of the oldest in San Francisco. From my desk, I can catch a glimpse of Coit Tower and still hear the cable cars, 200 feet below. A welcome respite from the cramped quarters we've had for some time.The strange thing about the building is the noise and vibrations from the elevators. Years ago, I visited a company in the Twin Towers in NY, and was struck by the din from the passing elevators, and the vibrations of the winds and elevators. It's eerie, being up so high, and feeling shakiness, especially in San Francisco, but it's not too hard to get used to.
Come by and visit for lunch!
Labels: Loyalty Lab, photos
Wednesday, December 27, 2006
How 'Bout them Marin Cowboys?
Hey, I'm not saying I'm ready for Canton, or even Vegas, but I'm proud to say that this year's Loyalty Lab Fantasy Football season came to a pretty satisfying conclusion:
Yep, after finishing close to the top the last two seasons, this year the Superbowl was mine. Maybe it was the incentive of having $250 on the line, or maybe I, like my 'Boys, was finally desperate enough for a winning season, but most likely it was a combination of my competition and luck. Want proof? The 3rd place winner, the Exurbanites, was a member who hadn't touched his team since his draft. In the end, it came down to Loyalty Lab's two Russians, and this one came out on top.
My powerhouse players this season were Peyton Manning of the Colts (at least he can win a championship in fantasy football), Maurice Jones-Drew of the Jaguars (who? Wasn't Fred Taylor supposed to be the top back?), Marion Barber III of the Cowboys (all he does is score touchdowns), and the sleeper of Marques Colston of the Saints (who was inexplicably listed as a TE/WR, giving me a very strong advantage over most tight ends), it was an 11-2 season. As usual, Cobra Kai, in the form of Ted O'Hanlon, gave me my usual run for the money (we split the meetings this season), and Candice Coder showed her 2nd year experience for my other loss, but it was Ken Sogomonov who was my real competition this season. Great season overall.
To celebrate the win, I asked the other players to forgo payment to me, and instead donate their $25 to the James Kim Memorial Fund, in support of the Kim family after the tragic loss of James, whom I have blogged about. If you'd like to pay kudos to either James Kim's life, the Kim families' coping with their ordeal and James' loss, or my fantasy football prowess, please feel free to head over and make a quick PayPal donation to the Kim family, as well.
Now, if Bill Parcells and Jerry Jones just listen to me, the Lombardi trophy is rightfully headed back to Dallas! And of course, all I have to say is...
Yep, after finishing close to the top the last two seasons, this year the Superbowl was mine. Maybe it was the incentive of having $250 on the line, or maybe I, like my 'Boys, was finally desperate enough for a winning season, but most likely it was a combination of my competition and luck. Want proof? The 3rd place winner, the Exurbanites, was a member who hadn't touched his team since his draft. In the end, it came down to Loyalty Lab's two Russians, and this one came out on top.
My powerhouse players this season were Peyton Manning of the Colts (at least he can win a championship in fantasy football), Maurice Jones-Drew of the Jaguars (who? Wasn't Fred Taylor supposed to be the top back?), Marion Barber III of the Cowboys (all he does is score touchdowns), and the sleeper of Marques Colston of the Saints (who was inexplicably listed as a TE/WR, giving me a very strong advantage over most tight ends), it was an 11-2 season. As usual, Cobra Kai, in the form of Ted O'Hanlon, gave me my usual run for the money (we split the meetings this season), and Candice Coder showed her 2nd year experience for my other loss, but it was Ken Sogomonov who was my real competition this season. Great season overall.
To celebrate the win, I asked the other players to forgo payment to me, and instead donate their $25 to the James Kim Memorial Fund, in support of the Kim family after the tragic loss of James, whom I have blogged about. If you'd like to pay kudos to either James Kim's life, the Kim families' coping with their ordeal and James' loss, or my fantasy football prowess, please feel free to head over and make a quick PayPal donation to the Kim family, as well.
Now, if Bill Parcells and Jerry Jones just listen to me, the Lombardi trophy is rightfully headed back to Dallas! And of course, all I have to say is...
Labels: Dallas Cowboys, football, Loyalty Lab
