Tretakoff Musings
Monday, November 03, 2008
Twin Titans of CE Have Fallen
Alas, the world of Consumer Electronics suffered yet more bad news this week. First, Circuit City surrendered to the inevitable in the first of what is sure to be a long series of death throes by closing 155 stores. This was long overdue, and is a direct response to the increasing dominance of Best Buy and Amazon. I'm amazed it took so long; I actually think they would be best served by closing these monster stores and go for the old Circuit City Express formats in suburban malls. As it is, the real estate costs will kill them in no time.
The second is more sinister, and sad: Tweeter Etc. was purchased by a liquidator. Why this is sinister: they told all the company employees last week that they were shutting the distribution center, and arranging to have all shipments sent directly to the stores, saving them $12 million. This was received with, to say it nicely, some skepticism. Sure enough, they made a backroom deal to liquidate the stores, and got out of town before the pitchforks could come out, or the torches lit. Sleazy.
Why this is sad: Tweeter was based in Canton, MA. I bought my first real stereo from them, a sexy, sleek 1980's black Mitsubishi all in one. It also started my lifelong love of the deal: the stereo sold for months as $1,099, but I was able to get a floor model for under $300. I had that stereo for over 20 years, and it never failed to impress me. It was so far ahead of its time, it made Bang & Olufsen look like dinosaurs. At the time, growing up in MA, you had only places like Service Merchandise or Lechmere to satisfy your CE jonesing; when Tweeter emerged, it was like the rules of CE retail completely changed: instead of harsh lights and horrible salespeople, you had a studio-like atmosphere, with relaxed enthusiasts to guide you through the hi-fi decision. Such a sad way for it all to end.
Looks like a sad CE Xmas ahead, but a good one for deal-finders and Best Buy stockholders.
Alas, the world of Consumer Electronics suffered yet more bad news this week. First, Circuit City surrendered to the inevitable in the first of what is sure to be a long series of death throes by closing 155 stores. This was long overdue, and is a direct response to the increasing dominance of Best Buy and Amazon. I'm amazed it took so long; I actually think they would be best served by closing these monster stores and go for the old Circuit City Express formats in suburban malls. As it is, the real estate costs will kill them in no time.The second is more sinister, and sad: Tweeter Etc. was purchased by a liquidator. Why this is sinister: they told all the company employees last week that they were shutting the distribution center, and arranging to have all shipments sent directly to the stores, saving them $12 million. This was received with, to say it nicely, some skepticism. Sure enough, they made a backroom deal to liquidate the stores, and got out of town before the pitchforks could come out, or the torches lit. Sleazy.
Why this is sad: Tweeter was based in Canton, MA. I bought my first real stereo from them, a sexy, sleek 1980's black Mitsubishi all in one. It also started my lifelong love of the deal: the stereo sold for months as $1,099, but I was able to get a floor model for under $300. I had that stereo for over 20 years, and it never failed to impress me. It was so far ahead of its time, it made Bang & Olufsen look like dinosaurs. At the time, growing up in MA, you had only places like Service Merchandise or Lechmere to satisfy your CE jonesing; when Tweeter emerged, it was like the rules of CE retail completely changed: instead of harsh lights and horrible salespeople, you had a studio-like atmosphere, with relaxed enthusiasts to guide you through the hi-fi decision. Such a sad way for it all to end.
Looks like a sad CE Xmas ahead, but a good one for deal-finders and Best Buy stockholders.
Slowing Dash
The economy, she is a fickle beast. My favorite GPS company, Dash, has taken the hit, as well: they've laid off 1/3 of the staff, and decided to exit the hardware business. However, there are some fascinating points about their move, as GigaOM points out:
Again, GigaOM say it best:
The economy, she is a fickle beast. My favorite GPS company, Dash, has taken the hit, as well: they've laid off 1/3 of the staff, and decided to exit the hardware business. However, there are some fascinating points about their move, as GigaOM points out:- It’s changing its business model from consumer-focused to business-to-business.
- As part of this change, it will stop making and selling its hardware.
- Instead it will license its platform to makers of automobile on-board navigation systems, smartphones, netbook-style mobile Internet devices and other consumer electronics.
- COO Rob Currie will replace current CEO and founder, Paul Lego.
- It will cut 50 jobs, or roughly two-thirds of its workforce. After the cuts, Dash will employ 30, mostly in engineering and support. Current Dash owners will continue to get their software updates and the Dash Driver Network will stay up.
Again, GigaOM say it best:
Bottom line: The economy might have forced their hand, but Dash had to come to this realization sooner or later. If they succeed, they will become a case study for Harvard Business School on the art of rebooting. If they fail, they will join a long list of Silicon Valley’s failed attempts at consumer electronics success.I'm cheering for you, guys.
Monday, October 27, 2008
Full of Hot Air
Sightseeing by Zeppelin comes to the Bay Area. And CNet's Tom Merritt shows us what it's like.
Labels: business, San Francisco
Sharing is NOT Social Networking
An article in today's Boston Globe caught my eye: Barnes & Noble announced they would launch a site for customers to track their interests and favorite authors, and "share information with Facebook and other social networks." The headline of said article? "Barnes & Noble goes social networking."
Intrigued, as the article was picked up by a few retail-centric newsletters I read, I signed up. The results were disappointing, to say the least: it's not much more than a "build my library" feature. The "social networking?" It consists of a "Share" button that allows you to post an article to Digg or Facebook. You're kidding, right? That's not social networking; that's ShareThis, the same type of widget I put on the end of my posts to allow you to share my thoughts with others.
To be fair, I don't put the blame on this embarrassment on B&N; I put this squarely at the feet of the AP reporter, who's lead in the article started with "Barnes & Noble is playing the social network game." That's just poor reporting; my guess is the reporter simply read the press release, and rather than check out the site and report on it, they simply went with a hot lead. Of course, I could be completely wrong: the "social networking" features of My BN may be so hard to find that they were not apparent to me after 10 minutes, in which case they deserve the blame.
In any case, someone deserves to be called out for this, so consider yourself called out. Don't dress an elephant in pink chiffon and call it a ballerina; many retailers are using social networking in an interesting and creative way. This is hardly worthy of the title.
An article in today's Boston Globe caught my eye: Barnes & Noble announced they would launch a site for customers to track their interests and favorite authors, and "share information with Facebook and other social networks." The headline of said article? "Barnes & Noble goes social networking."Intrigued, as the article was picked up by a few retail-centric newsletters I read, I signed up. The results were disappointing, to say the least: it's not much more than a "build my library" feature. The "social networking?" It consists of a "Share" button that allows you to post an article to Digg or Facebook. You're kidding, right? That's not social networking; that's ShareThis, the same type of widget I put on the end of my posts to allow you to share my thoughts with others.
To be fair, I don't put the blame on this embarrassment on B&N; I put this squarely at the feet of the AP reporter, who's lead in the article started with "Barnes & Noble is playing the social network game." That's just poor reporting; my guess is the reporter simply read the press release, and rather than check out the site and report on it, they simply went with a hot lead. Of course, I could be completely wrong: the "social networking" features of My BN may be so hard to find that they were not apparent to me after 10 minutes, in which case they deserve the blame.
In any case, someone deserves to be called out for this, so consider yourself called out. Don't dress an elephant in pink chiffon and call it a ballerina; many retailers are using social networking in an interesting and creative way. This is hardly worthy of the title.
Labels: bullshit, business, social networks
Friday, October 17, 2008
Drive Through Shopping?
I'm not sure what to make of this one. At my local Best Buy, I was greeted with a dedicated parking space and this sign to the left of the doors. I've seen similar signs at places like The Cheesecake Factory and Chili's, but not for a retail store before.
What intrigues me is the smaller sign that asks you to call upon your arrival; this implies that there will be some special response in doing so. I can only imagine it will be them bringing your purchase to your car, sparing you from the elements, so you don't have to sully yourself in picking up that iPod.
Anyone have any light to shed on this program?
I'm not sure what to make of this one. At my local Best Buy, I was greeted with a dedicated parking space and this sign to the left of the doors. I've seen similar signs at places like The Cheesecake Factory and Chili's, but not for a retail store before.What intrigues me is the smaller sign that asks you to call upon your arrival; this implies that there will be some special response in doing so. I can only imagine it will be them bringing your purchase to your car, sparing you from the elements, so you don't have to sully yourself in picking up that iPod.
Anyone have any light to shed on this program?
Wednesday, October 08, 2008
Gettin' Social With It
Nice move by Virgin America to append the ways to reach them on common social media platforms on the base of their emails. I've seen this on the web, with the "Add This" functions (see this end of this post, for instance), but great move to include this type of alternative communication to e-mail. I'd love to see this trend expand, much like RSS with web pages, to allow automatic detection and aggregation of social network presences from an e-mail sender. Maybe an Outlook plugin?
That's today's million dollar idea.
Nice move by Virgin America to append the ways to reach them on common social media platforms on the base of their emails. I've seen this on the web, with the "Add This" functions (see this end of this post, for instance), but great move to include this type of alternative communication to e-mail. I'd love to see this trend expand, much like RSS with web pages, to allow automatic detection and aggregation of social network presences from an e-mail sender. Maybe an Outlook plugin?That's today's million dollar idea.
Labels: business, social networks, travel
Wednesday, October 01, 2008
Understanding The Customer
ChainLove, a "Woot for bicyclists," had a deal I could not pass up today. I got in on it, pressed the buy button, and I was good. Got an order confirmation in moments. Less than 1 hour later, got the e-mail you see on the right. Their opening line is perfect, and reflected exactly my feeling.
Nicely done, gentlemen. Holy crap indeed.
ChainLove, a "Woot for bicyclists," had a deal I could not pass up today. I got in on it, pressed the buy button, and I was good. Got an order confirmation in moments. Less than 1 hour later, got the e-mail you see on the right. Their opening line is perfect, and reflected exactly my feeling. Nicely done, gentlemen. Holy crap indeed.
Sunday, September 21, 2008
The Nation's #1 Retailer is The #1 Network
Walmart didn't get to be the nation's #1 retailer by accident: besides being brutal negotiators with suppliers and a carpet bomb approach to opening new stores, they also have always looked to embrace new technology. With the launch of their "Smart Network," they have take the game up a notch: multimedia displays in aisles carry custom Walmart programming via the Internet, allowing them to change media content on the fly. Why, you ask? Simple: the more relevant content, the more you buy.
Here's an example: it's football season, and they want to promote Frito-Lay products. Walk down the snack aisle, and see the current scores from the games and headlines from the football news. Or, as Retail Wire points out:
Don't confuse this with the new TV channels at the checkouts they feature; those are like comparing a pocket calculator to an iPhone. No, this is a serious tech assault. Want to be a little scared? Walmart was one of the largest companies to insist on RFID tags in all merchandise; these tags broadcast small coded radio signals to allow them to be scanned for inventory and checkout purposes. Now, imagine the Smart Network has an RFID reader and can scan what you have in your cart; it can actually change the programming of the screen nearest to you to reflect complimentary products or promote products from the same manufacturer in that aisle. Talk about personalized shopping!
Walmart didn't get to be the nation's #1 retailer by accident: besides being brutal negotiators with suppliers and a carpet bomb approach to opening new stores, they also have always looked to embrace new technology. With the launch of their "Smart Network," they have take the game up a notch: multimedia displays in aisles carry custom Walmart programming via the Internet, allowing them to change media content on the fly. Why, you ask? Simple: the more relevant content, the more you buy.Here's an example: it's football season, and they want to promote Frito-Lay products. Walk down the snack aisle, and see the current scores from the games and headlines from the football news. Or, as Retail Wire points out:
For instance, the network can show promotions based on weather conditions. Soup may be promoted if it's raining outside the store, said Clint McClain, Walmart's senior director of emerging media. Ads may promote barbeque items if it's going to be eighty degrees on Saturday. Promotions might also be arranged around local events, such as a nearby college football game. The network also offers different items depending on the time of the day. For example, promoting frozen pizza at 5:00 p.m. has already proven to be a big winner with moms looking for an easy dinner for their kids. At 10:00 a.m., the ads showed no lift.
Mr. McClain likened this greater promotional flexibility to how "umbrella stores suddenly pop up" when it rains in New York City.
Don't confuse this with the new TV channels at the checkouts they feature; those are like comparing a pocket calculator to an iPhone. No, this is a serious tech assault. Want to be a little scared? Walmart was one of the largest companies to insist on RFID tags in all merchandise; these tags broadcast small coded radio signals to allow them to be scanned for inventory and checkout purposes. Now, imagine the Smart Network has an RFID reader and can scan what you have in your cart; it can actually change the programming of the screen nearest to you to reflect complimentary products or promote products from the same manufacturer in that aisle. Talk about personalized shopping!
Saturday, September 20, 2008
Harnessing Social Media
I'm cautiously optimistic about the approach that businesses are taking with harnessing social media to extend their brands and connect with their customers. Unlike the ham handed ways they have used before (uh...pavilions in Second Life?), They seem to be showing a surprisingly open and organic approach to this new medium. Peter Kim has put together a fairly comprehensive list of what many companies are doing, and the various forms that has already, for me, yielded great results. For instance, here are some of the highlights for me:
- Comcast. Frank from Comcast is a one-man good PR campaign for this much maligned company. Got a problem with an installer? Twitter Frank. Bitching about your reception on Twitter? He's there to direct message you. Want proof? At my company, we recently received scattered reports that Comcast customers were unable to see the sites we host. I pinged Frank, and within minutes, he responded that he was unable to duplicate the problem, but offered to do more research if I sent him more specific info. WOW. Compare that to waiting endlessly on hold. Nice.
- OpenTable. Add their Facebook app, and you can make reservations right where you are usually thinking of them.
- Best Buy. Yep, even this increasingly resented behemoth has figured it out, as the CMO Twitters and blogs. Both were invaluable in the recent "Premier Black" e-mail disaster.
The list goes on, but more and more, I see the blending of the fluidity of social networking putting a face on the traditionally stolid and staid corporate visage. And I have to say, it immediately means more transparency. Hell, even the government is getting the idea: the TSA, one of the most challenging agencies, has been remarkably open in their blog, even to the point of changing policies because of comments made in the blog.
It's a brave new world, and I am thrilled to be livin' in it.
I'm cautiously optimistic about the approach that businesses are taking with harnessing social media to extend their brands and connect with their customers. Unlike the ham handed ways they have used before (uh...pavilions in Second Life?), They seem to be showing a surprisingly open and organic approach to this new medium. Peter Kim has put together a fairly comprehensive list of what many companies are doing, and the various forms that has already, for me, yielded great results. For instance, here are some of the highlights for me:- Comcast. Frank from Comcast is a one-man good PR campaign for this much maligned company. Got a problem with an installer? Twitter Frank. Bitching about your reception on Twitter? He's there to direct message you. Want proof? At my company, we recently received scattered reports that Comcast customers were unable to see the sites we host. I pinged Frank, and within minutes, he responded that he was unable to duplicate the problem, but offered to do more research if I sent him more specific info. WOW. Compare that to waiting endlessly on hold. Nice.
- OpenTable. Add their Facebook app, and you can make reservations right where you are usually thinking of them.
- Best Buy. Yep, even this increasingly resented behemoth has figured it out, as the CMO Twitters and blogs. Both were invaluable in the recent "Premier Black" e-mail disaster.
The list goes on, but more and more, I see the blending of the fluidity of social networking putting a face on the traditionally stolid and staid corporate visage. And I have to say, it immediately means more transparency. Hell, even the government is getting the idea: the TSA, one of the most challenging agencies, has been remarkably open in their blog, even to the point of changing policies because of comments made in the blog.
It's a brave new world, and I am thrilled to be livin' in it.
Labels: business, Comcast, Facebook, social networks
Military Recruiting Gets An Update
Interesting news out of the retail world: the U.S. Army, suffering from poor recruiting and even poor perception, is now trying a new tactic: making the Army cool. Yep, now you can head on over to Sears for the Kenmore washer/dryer, the Martha Stewart housewares, and now the official clothing of the 1st Infantry Division. Not just the military-inspired trend of the 80's, no this is the real deal, complete with real logos and all. The Army has finally figured out they have one of the most recognizable brands in the world, and, combined with the natural sense of invincibility that most teens have, they can get all the free press they want by having their target market proudly become acclimated early.
I would hardly be shocked to find out that a percentage of every sale goes to Donald Rumsfeld's retirement fund.
Interesting news out of the retail world: the U.S. Army, suffering from poor recruiting and even poor perception, is now trying a new tactic: making the Army cool. Yep, now you can head on over to Sears for the Kenmore washer/dryer, the Martha Stewart housewares, and now the official clothing of the 1st Infantry Division. Not just the military-inspired trend of the 80's, no this is the real deal, complete with real logos and all. The Army has finally figured out they have one of the most recognizable brands in the world, and, combined with the natural sense of invincibility that most teens have, they can get all the free press they want by having their target market proudly become acclimated early.I would hardly be shocked to find out that a percentage of every sale goes to Donald Rumsfeld's retirement fund.
Labels: business
Tuesday, July 22, 2008
Watch. Like. BUY.
About a decade ago, I was running the new media ventures of a large specialty electronics and gifts company. While the web was my primary focus, I still experimented with a few offbeat ideas. One was from the country's largest cable company: they wanted to introduce one-click buying of items that were featured in certain television shows.
It worked like this: the cable company would get advance viewings of upcoming episodes of popular shows. They would then look for products in the shows, and find retailers who sold them. Then, after making deals with people like me, when the show actually ran, there would be a little pop-up on screen, inviting you to buy the item for $X, and it would be billed to your cable bill, and sent to the house where your cable service was. Thus, you'd be watching an episode of Friends, and see a cool stereo; the pop-up would come up, and with one click of the remote, you could have Ross and Rachel's very own jukebox. Slick, huh? Of course, it never happened or worked; don't ask me why.
Well, Tivo's looking for more revenue, so, like a bad rerun of an old mummy movie, or DIVX, this idea has returned from the dead. Leveraging their Amazon partnership for Unbox (now Amazon On Demand), Tivo has announced a way to allow people to use their remote to buy the items they see featured in a program, even a live one. Helpfully, the New York Times points out "...if a viewer chooses to buy an advertised item during a broadcast, TiVo records the rest of the program so the viewer can easily return to it after the purchase. TiVo users will also be able to save their intended purchases in their Amazon account and return to the site later to complete the transaction."
For Tivo's sake, I hope this works. They need a silver bullet, as being slaves to DirecTV or Comcast clearly ain't doing it. Here's to hoping good old fashioned capitalism saves them and makes them ubiquitous.
It worked like this: the cable company would get advance viewings of upcoming episodes of popular shows. They would then look for products in the shows, and find retailers who sold them. Then, after making deals with people like me, when the show actually ran, there would be a little pop-up on screen, inviting you to buy the item for $X, and it would be billed to your cable bill, and sent to the house where your cable service was. Thus, you'd be watching an episode of Friends, and see a cool stereo; the pop-up would come up, and with one click of the remote, you could have Ross and Rachel's very own jukebox. Slick, huh? Of course, it never happened or worked; don't ask me why.
Well, Tivo's looking for more revenue, so, like a bad rerun of an old mummy movie, or DIVX, this idea has returned from the dead. Leveraging their Amazon partnership for Unbox (now Amazon On Demand), Tivo has announced a way to allow people to use their remote to buy the items they see featured in a program, even a live one. Helpfully, the New York Times points out "...if a viewer chooses to buy an advertised item during a broadcast, TiVo records the rest of the program so the viewer can easily return to it after the purchase. TiVo users will also be able to save their intended purchases in their Amazon account and return to the site later to complete the transaction."For Tivo's sake, I hope this works. They need a silver bullet, as being slaves to DirecTV or Comcast clearly ain't doing it. Here's to hoping good old fashioned capitalism saves them and makes them ubiquitous.
Saturday, June 28, 2008
Doing The Right Thing
I often use this space to vent about companies that simply don't get it. Every so often, however, there is one that not only gets it, they get it better than I do. Let me tell you about one: eBags.
Don't know eBags? They are just what they sound like: a website solely devoted to selling luggage. Once thought of as a punchline to the great dotcom boom, like Pets.com, they were a highly specialized site selling only one thing at inexpensive prices. Unlike Amazon, who was able to make this model succeed with books and music for their low price points, eBags was widely assumed to be a flash in the pan that would die with the rest of the overspecialized e-commerce sites that were overly rife at the turn of the century. But, led by a dynamic CEO, and a savvy marketing strategy, they not only survived but thrived.
In recent years, they have augmented the hundreds of brands of bags they sell with their own. Imagine a team of people, only focused on selling bags, putting together pieces that incorporated the very best of what they saw from others, and augmenting it with features that most did not. Add quality construction, and relatively low prices, and they were a hit. From carry-ons, to rollaboards, to laptop cases, their products were very appealing to business travelers like me. So much so, I bought one of their laptop bags, the Firewall, 3 years ago for my regular laptop bag, and have never been happier.
A few months ago, I noticed the handle was tearing away. I thought I'd replace the bag with a rolling one, but just couldn't justify spending the $. I was looking for a replacement on their site, and compared it to my Firewall, when I noticed one of the selling points of eBags manufactured bags: a lifetime warranty. I clicked on their Chat link, and started conversing with a helpful rep. He asked me for some details, found my order, and let me know someone would be in touch.
Two days later, I got an email: a new Firewall briefcase was being shipped to me.
Period.
No questions. No demand to get the old bag back. No requests for photos of the damage. No requirement for me to pay a shipping charge. Nothing. Just a new case, no questions asked. Folks, THIS is a warranty. And this is a company that stands behind their product.
If I had any quibbles, they would be these:
- They never actually contacted me after the chat, simply sent me the new bag. Might have been nice to know that was their proposed solution, instead of silence for two days.
- I had been signed into their site; they could have seen I was browsing for a rolling bag. They missed a golden opportunity to upsell me: offering to give me a choice on a new bag, or credit for the full amount towards another eBags bag. I would have actually taken them up on the latter offer.
These small quibbles aside, I can't say enough about a company that not only knows what their customers expects, but cuts to the chase in delivering on their promise. I should disclose that I have done business professionally with eBags at three different companies, and that I have met their CEO a few times and been impressed every time. But unless that information was somehow in my account and they were able to decide in some special way that was the case and treat me differently, I expect this is how they treat every purchaser of their products. Compare that to the supposedly great customer service of Amazon (blech), or the darling Web 2.0 companies with their social network hooks.
They not only got it right, they got it right the first time, and more right than I ever expected.
I often use this space to vent about companies that simply don't get it. Every so often, however, there is one that not only gets it, they get it better than I do. Let me tell you about one: eBags.Don't know eBags? They are just what they sound like: a website solely devoted to selling luggage. Once thought of as a punchline to the great dotcom boom, like Pets.com, they were a highly specialized site selling only one thing at inexpensive prices. Unlike Amazon, who was able to make this model succeed with books and music for their low price points, eBags was widely assumed to be a flash in the pan that would die with the rest of the overspecialized e-commerce sites that were overly rife at the turn of the century. But, led by a dynamic CEO, and a savvy marketing strategy, they not only survived but thrived.
In recent years, they have augmented the hundreds of brands of bags they sell with their own. Imagine a team of people, only focused on selling bags, putting together pieces that incorporated the very best of what they saw from others, and augmenting it with features that most did not. Add quality construction, and relatively low prices, and they were a hit. From carry-ons, to rollaboards, to laptop cases, their products were very appealing to business travelers like me. So much so, I bought one of their laptop bags, the Firewall, 3 years ago for my regular laptop bag, and have never been happier.A few months ago, I noticed the handle was tearing away. I thought I'd replace the bag with a rolling one, but just couldn't justify spending the $. I was looking for a replacement on their site, and compared it to my Firewall, when I noticed one of the selling points of eBags manufactured bags: a lifetime warranty. I clicked on their Chat link, and started conversing with a helpful rep. He asked me for some details, found my order, and let me know someone would be in touch.
Two days later, I got an email: a new Firewall briefcase was being shipped to me.
Period.
No questions. No demand to get the old bag back. No requests for photos of the damage. No requirement for me to pay a shipping charge. Nothing. Just a new case, no questions asked. Folks, THIS is a warranty. And this is a company that stands behind their product.
If I had any quibbles, they would be these:
- They never actually contacted me after the chat, simply sent me the new bag. Might have been nice to know that was their proposed solution, instead of silence for two days.
- I had been signed into their site; they could have seen I was browsing for a rolling bag. They missed a golden opportunity to upsell me: offering to give me a choice on a new bag, or credit for the full amount towards another eBags bag. I would have actually taken them up on the latter offer.
These small quibbles aside, I can't say enough about a company that not only knows what their customers expects, but cuts to the chase in delivering on their promise. I should disclose that I have done business professionally with eBags at three different companies, and that I have met their CEO a few times and been impressed every time. But unless that information was somehow in my account and they were able to decide in some special way that was the case and treat me differently, I expect this is how they treat every purchaser of their products. Compare that to the supposedly great customer service of Amazon (blech), or the darling Web 2.0 companies with their social network hooks.
They not only got it right, they got it right the first time, and more right than I ever expected.
Labels: business
Saturday, June 21, 2008
Paperless Apple Stores
Great experience at my local Apple Store last night. I had to get some accessories for my iPhone, so I picked up my item, and headed to the cashwrap/Genius Bar. An intelligent employee saw my purposeful stride, and stepped out from behind the counter to ask if I was all set; I said yes, and he whipped out his PDA, accepted my card, scanned the barcode of my item, and we were all set.
This experience is not new; Apple has intelligently deployed these mobile checkout units for some time now. What happened next was a delight: the employee handed me my card back, and asked if I would prefer a printed receipt, or would I like it emailed to me? I happily replied that email was preferable, and he looked at his screen. "Well, looks like we don't have your email address on file; if you give it to me, I'll make sure we can send this and all future receipts to you." I did, and he associated it with the credit card I used. Within moments, my receipt appeared as a PDF attachment to an email in my inbox. Wow.
Why is this so great? First, you all know my particular hatred for the antiquated reliance on paper receipts. Second, I use Google Apps for Domain for my email; that means this receipt is now searchable in Gmail. If I ever need it, instead of groping around piles of yellowing paper, or trying to look through thousands of scanned images, I can just use Gmail to look for the very thing I want, and find my receipt in a second. Not to mention it finally brings physical retail to the level of convenience of ecommerce.
Another great innovation in Apple Retail. Well done, Cupertino.
Great experience at my local Apple Store last night. I had to get some accessories for my iPhone, so I picked up my item, and headed to the cashwrap/Genius Bar. An intelligent employee saw my purposeful stride, and stepped out from behind the counter to ask if I was all set; I said yes, and he whipped out his PDA, accepted my card, scanned the barcode of my item, and we were all set. This experience is not new; Apple has intelligently deployed these mobile checkout units for some time now. What happened next was a delight: the employee handed me my card back, and asked if I would prefer a printed receipt, or would I like it emailed to me? I happily replied that email was preferable, and he looked at his screen. "Well, looks like we don't have your email address on file; if you give it to me, I'll make sure we can send this and all future receipts to you." I did, and he associated it with the credit card I used. Within moments, my receipt appeared as a PDF attachment to an email in my inbox. Wow.
Why is this so great? First, you all know my particular hatred for the antiquated reliance on paper receipts. Second, I use Google Apps for Domain for my email; that means this receipt is now searchable in Gmail. If I ever need it, instead of groping around piles of yellowing paper, or trying to look through thousands of scanned images, I can just use Gmail to look for the very thing I want, and find my receipt in a second. Not to mention it finally brings physical retail to the level of convenience of ecommerce.
Another great innovation in Apple Retail. Well done, Cupertino.
Thursday, June 12, 2008
RT To Help Ressurect TSI?
Should have put a BluBet on it. RT returns to the remains of the company he founded:
Let the games begin. And let's hope for the great second act that only Richard can bring.
Should have put a BluBet on it. RT returns to the remains of the company he founded:"James Salter, head of Hilco Consumer Capital, a Chicago company that late last month agreed to pay $49 million for the remains of Sharper Image, says he has approached [Richard] Thalheimer about working as a product consultant. "I think he'd be an excellent guy to bring back," says Salter.
Thalheimer says he's considering the offer--but only if he can keep running Richardsolo."
Let the games begin. And let's hope for the great second act that only Richard can bring.
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
Thursday, May 01, 2008
Bait & Switch In the Online Age
Unacceptable e-mail from TigerDirect.com today.
Subject line: $299 Laptop...22" LCD $199...37" HDTV $599
Of course a $299 laptop is appealing to me! When you open the e-mail, this is what you get:
This may work in 42nd St. in NYC, but not on the web. Guess Tiger won't be getting my business.
Subject line: $299 Laptop...22" LCD $199...37" HDTV $599
Of course a $299 laptop is appealing to me! When you open the e-mail, this is what you get:
This may work in 42nd St. in NYC, but not on the web. Guess Tiger won't be getting my business.
Sunday, April 06, 2008
The Icarus Effect
This morning's news started with the latest grim proof of overdevelopment in a tough sector: SkyBus Airlines shut down, less than year from when it started. Never heard of Skybus? Not surprising; they chose to focus on trips from Ohio to the West Coast for ridiculously low fares. Yes, you read that right: the airlines' unique niche was that they focused on trips from Ohio.
Was air travel such an amazingly profitable business that we needed that much segmentation and focus? Of course not. A year ago, when Skybus was just getting off the ground (har har), fuel costs were at an all time high. United was still in bankruptcy; Delta, a fellow airline with a major hub in Ohio, was just exiting Chapter 11. And yet, "irrational exuberance" led investors like Nationwide Mutual Capital, Huntington Capital Investment Co., and Battelle Services Co. to ignore the obvious signs of risk, and dive into what was a dubious investment. Today, they, and the passengers who were lured by low fares, and the workers lured by the chance to try something new, are all grounded and scrambling.
This is the latest in a string of "should see it coming" moves among business. This week alone has been absolute carnage for the airline sector: earlier this week, Aloha Airlines ceased service after 60 years, and ATA Airlines took a permanent vacation. In the case of Aloha, it was a case of musical chairs on inter-island travel that did them in, as they fought to compete against the better financed go! Airline, along with their historical rivals, Hawaiian Air and United. Add the new low cost Hawaii Superferry, and the writing was on the wall. ATA was different, as they tried to carve out a niche in the low-cost vacation travel routes, while underwriting by providing the military with charter flights. With the recession, vacation travel drops off, fuel costs rise, the military contract ends...and ATA falls. What's worse, this is not the first time ATA has fallen: it had previously been bankrupt.
It's not just the airlines, either. The Sharper Image, the iconic symbol of 1980's retail, is in Chapter 11, betting their entire exit on cost reductions and sales of a bizarre $600 laser synthesizer; if there was a way to bet that this strategy is fraught with peril, I'd put it all down on Chapter 11 going to Chapter 7, with savvy online retailers just bidding on the brand name. RedEnvelope, the niche online gifts retailer, who grew up from their playful 911 Gifts start, also ceased operations this week. Once considered a darling of the new e-commerce business, they pushed through over $100 million in venture capital, and never turned a profit. With periodic re-invention, they managed to convince everyone that change was always right around the corner, but last week, the doors were closed and hundreds of people were out of work.
So, now the question is: who's next? My bet, which you are all welcome to wager on, is Circuit City. Best Buy is eating their lunch, internet retailers like ZipZoomFly and Newegg are nipping at their heels, and the best they can come up with is a new store format? Sorry, no way. Who do you think is next?
This morning's news started with the latest grim proof of overdevelopment in a tough sector: SkyBus Airlines shut down, less than year from when it started. Never heard of Skybus? Not surprising; they chose to focus on trips from Ohio to the West Coast for ridiculously low fares. Yes, you read that right: the airlines' unique niche was that they focused on trips from Ohio.Was air travel such an amazingly profitable business that we needed that much segmentation and focus? Of course not. A year ago, when Skybus was just getting off the ground (har har), fuel costs were at an all time high. United was still in bankruptcy; Delta, a fellow airline with a major hub in Ohio, was just exiting Chapter 11. And yet, "irrational exuberance" led investors like Nationwide Mutual Capital, Huntington Capital Investment Co., and Battelle Services Co. to ignore the obvious signs of risk, and dive into what was a dubious investment. Today, they, and the passengers who were lured by low fares, and the workers lured by the chance to try something new, are all grounded and scrambling.
This is the latest in a string of "should see it coming" moves among business. This week alone has been absolute carnage for the airline sector: earlier this week, Aloha Airlines ceased service after 60 years, and ATA Airlines took a permanent vacation. In the case of Aloha, it was a case of musical chairs on inter-island travel that did them in, as they fought to compete against the better financed go! Airline, along with their historical rivals, Hawaiian Air and United. Add the new low cost Hawaii Superferry, and the writing was on the wall. ATA was different, as they tried to carve out a niche in the low-cost vacation travel routes, while underwriting by providing the military with charter flights. With the recession, vacation travel drops off, fuel costs rise, the military contract ends...and ATA falls. What's worse, this is not the first time ATA has fallen: it had previously been bankrupt.
It's not just the airlines, either. The Sharper Image, the iconic symbol of 1980's retail, is in Chapter 11, betting their entire exit on cost reductions and sales of a bizarre $600 laser synthesizer; if there was a way to bet that this strategy is fraught with peril, I'd put it all down on Chapter 11 going to Chapter 7, with savvy online retailers just bidding on the brand name. RedEnvelope, the niche online gifts retailer, who grew up from their playful 911 Gifts start, also ceased operations this week. Once considered a darling of the new e-commerce business, they pushed through over $100 million in venture capital, and never turned a profit. With periodic re-invention, they managed to convince everyone that change was always right around the corner, but last week, the doors were closed and hundreds of people were out of work.
So, now the question is: who's next? My bet, which you are all welcome to wager on, is Circuit City. Best Buy is eating their lunch, internet retailers like ZipZoomFly and Newegg are nipping at their heels, and the best they can come up with is a new store format? Sorry, no way. Who do you think is next?
Labels: business
Thursday, February 28, 2008
YouTube Drives Business
A great article from Internet Retailer on the effect of a single YouTube video on the fortunes of a niche DVD seller. The "12 Days Of Christmas" video, sung by the amazing a capella group, Indiana University's Straight No Chaser, has been such a YouTube hit that the sole distributor of the DVD went from selling 100 copies a year of a single title, to an amazing 5,300.
Best of all, the popularity has convinced the 1998 graduates featured in the video to reunite for a follow up performance! Here's to the power of the Internet!
The original performance, in all it's glory:
Best of all, the popularity has convinced the 1998 graduates featured in the video to reunite for a follow up performance! Here's to the power of the Internet!
The original performance, in all it's glory:
Friday, February 22, 2008
Bouncing Gift Cards
An unexpected side effect of The Sharper Image bankruptcy: gift cards are not being accepted for payment anymore. Although the Consumerist points out that you can sue for compensation under bankruptcy law, I'm kinda shocked.
Chapter 11 allows a company to reorganize, granting temporary relief from debt to emerge slimmed down, leaner, and more competitive. TSI is closing over half of their stores, allowing them to escape long term leases and layoff employees; that's cost savings. If they can get relief from the looming Ionic Breeze judgment, those two moves alone will provide the chance to actually make a go of it.
This one I don't understand: the gift cards represent actual cash that has been paid to the company by consumers, not a promise of cash. If a supplier sells TSI gizmos, they get paid on a net 30 or 60 basis; TSI can hold back that money, and the supplier is screwed: the gizmos are in TSI stores, and the supplier has to get in line with everyone else to get paid. But the gift card holder? No way: that's actual cash.
I think back to Chapter 11's like United Airlines. In those, key executives were given raises or bonuses to ensure they stayed, as the bankruptcy court felt that the company had a better chance of competing and exiting bankruptcy with those people on board. In this case, the only way TSI exits chapter 11 is if they reduce costs while maintaining sales; if consumers can't purchase, that directly damages those prospects, and they are looking at Chapter 7 instead.
I think this might be a result of the initial chaos around the problem, and will be a temporary condition, at best. If not, get ready for the latest Gordon Brothers acquisition.
An unexpected side effect of The Sharper Image bankruptcy: gift cards are not being accepted for payment anymore. Although the Consumerist points out that you can sue for compensation under bankruptcy law, I'm kinda shocked.Chapter 11 allows a company to reorganize, granting temporary relief from debt to emerge slimmed down, leaner, and more competitive. TSI is closing over half of their stores, allowing them to escape long term leases and layoff employees; that's cost savings. If they can get relief from the looming Ionic Breeze judgment, those two moves alone will provide the chance to actually make a go of it.
This one I don't understand: the gift cards represent actual cash that has been paid to the company by consumers, not a promise of cash. If a supplier sells TSI gizmos, they get paid on a net 30 or 60 basis; TSI can hold back that money, and the supplier is screwed: the gizmos are in TSI stores, and the supplier has to get in line with everyone else to get paid. But the gift card holder? No way: that's actual cash.
I think back to Chapter 11's like United Airlines. In those, key executives were given raises or bonuses to ensure they stayed, as the bankruptcy court felt that the company had a better chance of competing and exiting bankruptcy with those people on board. In this case, the only way TSI exits chapter 11 is if they reduce costs while maintaining sales; if consumers can't purchase, that directly damages those prospects, and they are looking at Chapter 7 instead.
I think this might be a result of the initial chaos around the problem, and will be a temporary condition, at best. If not, get ready for the latest Gordon Brothers acquisition.
Labels: business
Wednesday, February 20, 2008
The Inevitable
A moment of silence this morning for my old friends, employers, and purveyors of all things needless.
The Sharper Image has filed for bankruptcy.
I shall shed a burltech tear in its honor.
Thanks, fellow TSI alum Tim for giving me the heads up.
A moment of silence this morning for my old friends, employers, and purveyors of all things needless.The Sharper Image has filed for bankruptcy.
I shall shed a burltech tear in its honor.
Thanks, fellow TSI alum Tim for giving me the heads up.
Labels: 80's, business, San Francisco
Thursday, February 07, 2008
It's 2008, not 1988
Great article by Ken Magill on the surprising laggards in the direct marketing game to adapt to e-commerce, even in this Internet infused world. Including the hilarity of being privacy policy compliant...even with no ability to be so, as no data is being collected. Having been on the forefront of this with one of the world's most direct marketers over 10 years ago, I watched the industry slowly adapt, cautiously embrace, and then often thrive on the change. Reminders like these make me shake my head in astonishment.
Read and enjoy.
Read and enjoy.
Stupid Catalog Watch: You Don't Have a What?
By Ken Magill, Magilla Marketing
A favorite catalog in the Magilla household is Make Life Easier. It's simply full of some of the coolest stuff to, well, make life easier.
For example, there's the four-tools-in-one set of pliers, monkey wrench, pry bar and slot head screwdriver. Then there's the thumb saver, a device that allows the user to hold nails, tacks and screws at a safe distance so they can swing a hammer without worry. Or how about Fatal Funnels: little yellow devices that turn ordinary one- and two-liter soda bottles into wasp traps? Neat-o.
So guess what Make Life Easier doesn't have: An e-commerce enabled Web site. Yes, the cataloger has a Web site, but customers -- or should I say, would-be customers -- can neither browse products nor place orders on it. No kidding.
Customers can order from Make Life Easier by phone, mail or fax ... but not online. Get it? Make Life Easier? Doesn't allow orders to be placed online? Can you say Irony? There must be someone out there in Magilla Marketing land who can help these guys. Please?
Interestingly, Make-Life-Easier.com has a privacy policy. It seems the privacy wackos have become so deeply entrenched in online marketing culture that they've even convinced a merchant who isn't selling on the Internet to toe the line on their paranoid, anti-free-exchange-of-information philosophies.
"The security of your personal information is important to us, and we take precautions to prevent unauthorized access to that information," says Make Life Easier's privacy policy. "All of the personal information that we collect online resides on a secure server behind a firewall, which is intended to prevent external access to our database."
Um, guys? You're not collecting any personal information online. You won't even let us place an order. The worst you could do is disclose that some random computer user read your privacy policy and clicked through a couple of other pages.
Thanks for the thought, though.
In the meantime, could we have a little chat about your order options, please?
Labels: business
Thursday, January 31, 2008
Audible: Louder Than Ever
One of my old favorite companies, Audible, has entered into an agreement with Amazon to be acquired for $300 million. While this represents a slight decline in their perceived value from their all time stock high, it assures the future for this pioneer.
I own dozens of Audible books. Not familiar with Audible? Think "books on tape," but digital. Years ago, before MP3's really took off and long before the advent of podcasts, Audible led the way by digitizing thousands of books, and offering them for download. For folks who had long commutes, this was a dream come true. Better, Audible also offered discounted players; my first MP3 player was a Nomad, thanks to Audible. Their file formats were not quite MP3's, but were much smaller; before the iPod, we actually considered file size! They went on to introduce dozens of innovations, including a subscription service (2 books a month for $20!), and multiple file formats, so you could choose audio quality over file size, and more.
They really hit the motherlode with three major advents:
- First, they recognized the demographic of their customer probably overlapped with NPR listeners, and capitalized by offering subscriptions to popular NPR programs, such as Car Talk and Fresh Air. This enabled Audible listeners to, in essence, time shift their NPR listening. Until mid last year, this was the only option for listening to Car Talk, other than real-time. VERY smart.
- Second, they baked themselves into the iPod from day 1. How they got Steve to sign off on that, I have no idea, but it ensured their content was compatible with the most popular MP3 player ever. Even today, it's baked into every single iPod model. That meant they attracted new subscribers with every iPod purchase.
- Finally, they did an amazing deal with Amazon to be the exclusive audiobook provider. Looking at those bestsellers? Wait, an audio version, and I can get it right now? Sign me up! The fruits of this last deal were clear to both parties, and easily led to today's deal.
This is practically a case study for effective business development, and looks to be a win for both parties, as Amazon wants to strengthen their transition to digital media, and Audible is under increasing pressure for earlobes with the podcast revolution, XM/Sirius, and HD Radio.
So what's next? Well, the Audible acquisition nets Amazon a nice native port to the iPod. Potentially, Amazon could expand their media through that pipe, but Sir Steve is sure to crack down if they do. More likely, Amazon will leverage their recent Kindle success with publishers to encourage more content than ever to be available; listen on your Kindle or iPod. I also expect Amazon to tout the lesser known gems of Audible's content library: a daily recap of the NY Times and Wall Street Journal; live performances and lectures, and more.
My applause is Audible.
One of my old favorite companies, Audible, has entered into an agreement with Amazon to be acquired for $300 million. While this represents a slight decline in their perceived value from their all time stock high, it assures the future for this pioneer.I own dozens of Audible books. Not familiar with Audible? Think "books on tape," but digital. Years ago, before MP3's really took off and long before the advent of podcasts, Audible led the way by digitizing thousands of books, and offering them for download. For folks who had long commutes, this was a dream come true. Better, Audible also offered discounted players; my first MP3 player was a Nomad, thanks to Audible. Their file formats were not quite MP3's, but were much smaller; before the iPod, we actually considered file size! They went on to introduce dozens of innovations, including a subscription service (2 books a month for $20!), and multiple file formats, so you could choose audio quality over file size, and more.
They really hit the motherlode with three major advents:
- First, they recognized the demographic of their customer probably overlapped with NPR listeners, and capitalized by offering subscriptions to popular NPR programs, such as Car Talk and Fresh Air. This enabled Audible listeners to, in essence, time shift their NPR listening. Until mid last year, this was the only option for listening to Car Talk, other than real-time. VERY smart.
- Second, they baked themselves into the iPod from day 1. How they got Steve to sign off on that, I have no idea, but it ensured their content was compatible with the most popular MP3 player ever. Even today, it's baked into every single iPod model. That meant they attracted new subscribers with every iPod purchase.
- Finally, they did an amazing deal with Amazon to be the exclusive audiobook provider. Looking at those bestsellers? Wait, an audio version, and I can get it right now? Sign me up! The fruits of this last deal were clear to both parties, and easily led to today's deal.
This is practically a case study for effective business development, and looks to be a win for both parties, as Amazon wants to strengthen their transition to digital media, and Audible is under increasing pressure for earlobes with the podcast revolution, XM/Sirius, and HD Radio.
So what's next? Well, the Audible acquisition nets Amazon a nice native port to the iPod. Potentially, Amazon could expand their media through that pipe, but Sir Steve is sure to crack down if they do. More likely, Amazon will leverage their recent Kindle success with publishers to encourage more content than ever to be available; listen on your Kindle or iPod. I also expect Amazon to tout the lesser known gems of Audible's content library: a daily recap of the NY Times and Wall Street Journal; live performances and lectures, and more.
My applause is Audible.
Wednesday, December 26, 2007
First Class Movie Theaters
Courtesy of my nephew, Jeremy, I learned of the next foray by movie theater owners to attract patrons to the overpriced movie theater experience: First Class. Called Lux, National Amusements is piloting the program in it's Randolph, MA, location. The premise? Pay an additional $10, and you get a perk-filled evening, including:
- In-Seat dining, from a menu that ranges from Chicken Satay appetizers, to panini sandwiches to personal pizzas, which you order from your seat and summon your server with a push of a button. Prices are unknown, but you do get $5 off with your ticket.
- Alcoholic beverages. Great applause; now I can finally tolerate seeing Adam Sandler.
- Lux Level preferred parking area exclusively for Lux Level patrons.
- Ultimate service, brushing your car off in snowy winter weather, or offering an umbrella on those unexpected rainy days.
- Escort to the Lux Level auditorium
- Coat check service available
- Deep-cushioned, custom designed seats.
- Wait service at the push of a button; with wait staff utilizing special wireless ordering devices that send your order instantly to the kitchen devoted to Lux Level dining
While the menus are visible, there are no prices listed, so don't look for any bargains here, but it can save you dinner out elsewhere. This continues, and expands the trend we've seen for the last year, but adds a level of service that I might actually take advantage of. Now, if they'd only add those privacy barriers or curtains, imagine how fun the movies could be again with alcoholic drinks, big plush seats, private seating area, and darkness? ;-)
Courtesy of my nephew, Jeremy, I learned of the next foray by movie theater owners to attract patrons to the overpriced movie theater experience: First Class. Called Lux, National Amusements is piloting the program in it's Randolph, MA, location. The premise? Pay an additional $10, and you get a perk-filled evening, including:- In-Seat dining, from a menu that ranges from Chicken Satay appetizers, to panini sandwiches to personal pizzas, which you order from your seat and summon your server with a push of a button. Prices are unknown, but you do get $5 off with your ticket.
- Alcoholic beverages. Great applause; now I can finally tolerate seeing Adam Sandler.
- Lux Level preferred parking area exclusively for Lux Level patrons.
- Ultimate service, brushing your car off in snowy winter weather, or offering an umbrella on those unexpected rainy days.
- Escort to the Lux Level auditorium
- Coat check service available
- Deep-cushioned, custom designed seats.
- Wait service at the push of a button; with wait staff utilizing special wireless ordering devices that send your order instantly to the kitchen devoted to Lux Level dining
While the menus are visible, there are no prices listed, so don't look for any bargains here, but it can save you dinner out elsewhere. This continues, and expands the trend we've seen for the last year, but adds a level of service that I might actually take advantage of. Now, if they'd only add those privacy barriers or curtains, imagine how fun the movies could be again with alcoholic drinks, big plush seats, private seating area, and darkness? ;-)
Friday, December 07, 2007
Dog emails dog
Brian, as they say, be careful what you wish for.
Who is Brian? Brian is an intern at Box.net. Not familiar with them? They are an online storage company: a virtual drive, if you will. My Netvibes membership introduced them to me. I rarely use them, but thought they were generally fine for a free storage service.
Then Brian contacted me.
See, Brian noticed I was blogging about Picnik, a great photo editing tool for free online. Brian, out of the goodness of his heart, thought I might like to know about Box.net's service to do the same; he even took the time to email my Gmail account to tell me.
Gosh, that Brian. Such a nice, helpful guy. Yep, I might have fallen for this "aw, shucks" approach...had he not included the URL I boldfaced above. See, it's clear from the appending of "picnik" on the URL that Box.net is trolling for Picnik users to switch, and Box.net is using this as a crude viral campaign to go after a competitor.
As it is, Brian, I'll thank you for the helpful hint, and suggest that you switch to a less crude approach in the future, perhaps tagging links with a URL tracker that you build, for instance, or an affiliate network? Brian, you may be a very nice guy, and, as you claim to be just an intern, maybe you didn't know that this approach might be interpreted as ham-handed, so I'll give you the benefit of the doubt, and I'll suggest that you let your bosses know that they probably need to be a bit more subtle in their efforts to build awareness for a new product.
Thanks, but no thanks.
Brian, as they say, be careful what you wish for.Who is Brian? Brian is an intern at Box.net. Not familiar with them? They are an online storage company: a virtual drive, if you will. My Netvibes membership introduced them to me. I rarely use them, but thought they were generally fine for a free storage service.
Then Brian contacted me.
See, Brian noticed I was blogging about Picnik, a great photo editing tool for free online. Brian, out of the goodness of his heart, thought I might like to know about Box.net's service to do the same; he even took the time to email my Gmail account to tell me.
Hello,
My name is Brian, I'm an intern working at Box.net. I saw your post about editing photos online and I wanted to write to you in case you would be interested in knowing Box.net now lets users edit photos online as well.
Using our OpenBox platform, users can now right-click on any image and edit it instantly, for free. OpenBox is a platform which lets developers write software that can be installed directly on the Box.net website.
If you decide you would like to post something about this on your blog, please let me know if you or your readers have any suggestions for the service.
For some more information:
http://www.box.net/services/picnik
Sincerely,
Brian
Box.net
Gosh, that Brian. Such a nice, helpful guy. Yep, I might have fallen for this "aw, shucks" approach...had he not included the URL I boldfaced above. See, it's clear from the appending of "picnik" on the URL that Box.net is trolling for Picnik users to switch, and Box.net is using this as a crude viral campaign to go after a competitor.
As it is, Brian, I'll thank you for the helpful hint, and suggest that you switch to a less crude approach in the future, perhaps tagging links with a URL tracker that you build, for instance, or an affiliate network? Brian, you may be a very nice guy, and, as you claim to be just an intern, maybe you didn't know that this approach might be interpreted as ham-handed, so I'll give you the benefit of the doubt, and I'll suggest that you let your bosses know that they probably need to be a bit more subtle in their efforts to build awareness for a new product.
Thanks, but no thanks.
Cruise on down to Nokia Avvenu
Interesting news, as Nokia has purchased Avvenu. Not familiar with Avvenu? Not surprising, if you weren't a Palm OS user. They make a little program that lives on your PC, making the files available to be accessed with a mobile phone. The revenue model was invisible, so it was always a little headscratching. As to access, well, it was OK, but never amazing. And the idea of having all of your files open to be accessed by anyone hitting a URL and entering a username and password always seemed a bit harebrained to me.
On the odder side, Nokia immediately discontinued access outside the US and killed Avvenu's streaming music service in favor of their own.
Here's what they had to say:
Interesting news, as Nokia has purchased Avvenu. Not familiar with Avvenu? Not surprising, if you weren't a Palm OS user. They make a little program that lives on your PC, making the files available to be accessed with a mobile phone. The revenue model was invisible, so it was always a little headscratching. As to access, well, it was OK, but never amazing. And the idea of having all of your files open to be accessed by anyone hitting a URL and entering a username and password always seemed a bit harebrained to me.On the odder side, Nokia immediately discontinued access outside the US and killed Avvenu's streaming music service in favor of their own.
Here's what they had to say:
Dear Avvenu Customer,
As a registered user of the Avvenu service, we wanted to let you know that Nokia and Avvenu have signed an agreement under which Nokia has acquired Avvenu Inc.
Nokia intends to continue the Avvenu Access 'n Share service, and enhance Avvenu's secure remote access and private sharing capabilities moving forward. The sharing features of the Avvenu Music service have been discontinued, as Nokia already offers a separate music service.
During the transition it is necessary to limit access to those users based in the United States. We plan to resume service in most other countries within a few weeks. Until that time, if you reside outside the United States, you'll be unable to remotely access your PCs. If you'd like to be notified when service is restored in your country, please go to http://www.avvenu.com/countries.php and register for email notification.
If you have any questions or concerns, please contact customer support at http://support.avvenu.com.
More information on the acquisition is available at http://www.avvenu.com/acquisition.php.
As all of us at Avvenu join Nokia, we look forward to bringing you improved access and sharing services.
Best Regards,
Avvenu Customer Support
RT: the re-emergence continues
The media spin on the re-emergence of Richard Thalheimer continues. First, a cover story in San Francisco Weekly. Now, the LA Times spins the tale of the fascinating mercurial man and his rise, fall, and (he hopes) rise again.
As I have said before here: don't count RT out. These articles aren't random, after all: it's clear he's positioning for a classic comeback story. And with the way The Sharper Image is heading these days...who knows how the story might end?
The media spin on the re-emergence of Richard Thalheimer continues. First, a cover story in San Francisco Weekly. Now, the LA Times spins the tale of the fascinating mercurial man and his rise, fall, and (he hopes) rise again.As I have said before here: don't count RT out. These articles aren't random, after all: it's clear he's positioning for a classic comeback story. And with the way The Sharper Image is heading these days...who knows how the story might end?
Labels: 80's, business, gadgets, news, San Francisco
Saturday, October 13, 2007
Business Line Becomes VOIP Line
In the last few weeks, we've rearranged our offices to separate the business teams from the development teams (seems us business types tend to make a bit too much noise for those heads-down developers). I've also hired two new team members. As a result of these two events, instead of paying yet another exorbitant telco install fee, I decided to make the leap from landlines and switch the team to Skype for our phone service. I should point out that this is not my first foray into Voice Over Internet Protocol (VOIP). My home phone us run by AT&T's CallVantage service, and one of my team members has been on Skype since she joined us. I also used Skype to chat with another company executive while he was in India. In all cases, I was impressed with the voice quality, and the price is unreal.
To start, I installed the latest Skype client, and got it working with my headset: the whole process took about 2 minutes. Next up was getting a plan so I could call regular phones; Skype's SkypeOut Unlimited did the job for me, for $30 a year for unlimited calling to any landline in North America. Finally, a phone number that could be directed from my company's PBX for clients to call me; I opted for Skype Pro for $3 a month, in addition to a SkypeIn number for another $30 annually. Paying for these services was a bit odd, as you can only use certain credit cards or PayPal, and the currency has to be switched from Euros. I played with it for a couple of days, and was pleasantly surprised.
Since my experience went well, I discovered Skype has a tool for me to add numbers and control usage for my other employees, Skype for Business. Free, and offers the promise of a smooth administration, it looked to be just what the doctor ordered. And here was where things got bizarre. First, yes, you can sign up for Skype For Business free, but you need to add money into a joint account to spread the funds across employees. Options? Bank transfer, PayPal or a "Moneybookers" account. That's it. Uh, folks, is this not called Skype For BUSINESS? You're telling me I can't just give you a company credit card? Frustrated, I signed up for a PayPal account with the company card...and was told I could transfer a maximum of $25 into the account. I have to buy SkypeIn numbers and Skype credits for several employees, and I'm limited to $25?
Frustrated, I looked into "MoneyBookers," which is essentially a UK company that does similar to PayPal, but after 15 minutes of transatlantic form filling, I was told that the company card could not be processed since it was drawn on a US bank. ARGH. I wrote to Skype, explained the situation, as well as the ludicrousness of having to explain that I wanted to give them money and they were preventing me. That was weeks ago, and I have yet to receive a reply. I was finally forced to involve our CFO to do a bank transfer to fund this little operation.
Next came the fun of getting my staff up. I asked them to sign up for Skype, and send me their usernames. The Business Control Panel allowed me to send invites to those usernames...which none of my team ever received. Multiple efforts, nothing. Out of frustration, I finally downloaded the Business Edition of Skype, which is described as "a business version of Skype. It has the same features as the standard version; however, it also includes Windows Installer (commonly known as MSI)." What it does NOT say, however, is that if you want your team to use the Control Panel, they MUST install this version. Now, would you not think this would be stated somewhere in the Business Control Panel? What are these Euro nutcases thinking? Finally, my staff was able to connect to the Panel, I was able to allocate them numbers and credits, and away we went.
The quality of the calls is excellent, especially Skype to Skype. Better than any phone call you could ever hope for. The few complaints I have are around performance: there is sometimes a slight lag in the calls to landlines (very rare), and some of my staff say they have had callers say the sound is "tinny" on occasion. The biggest grype I have is around the resource usage: I frequently am pushing the CPU on my laptop to full capacity, and if I am on a call, this can impact it: sound drops out, lag, and even a Max Headroom stutter on occasion. Still, the overall quality and ease of use is impressive, and the mobility factor is amazing.
My conclusions are that Skype needs to get their Scandinavian heads out of their asses (and their masters at eBay's crotches) and either embrace this as business, or keep to their little personal calling tools. I did look at the Gizmo Project, but reviews pointed to far spottier call quality. I did not look at Yahoo Messenger's or AIM's phone options, and I desperately craved a version of Google Talk that calls landlines, but Skype owns the space. If I had to do it again, I would still choose Skype, but these guys need to get their customer service in gear, as no business should have to go through what I did.
In any case, if you happen to be on Skype, feel free to give me a call.
In the last few weeks, we've rearranged our offices to separate the business teams from the development teams (seems us business types tend to make a bit too much noise for those heads-down developers). I've also hired two new team members. As a result of these two events, instead of paying yet another exorbitant telco install fee, I decided to make the leap from landlines and switch the team to Skype for our phone service. I should point out that this is not my first foray into Voice Over Internet Protocol (VOIP). My home phone us run by AT&T's CallVantage service, and one of my team members has been on Skype since she joined us. I also used Skype to chat with another company executive while he was in India. In all cases, I was impressed with the voice quality, and the price is unreal.To start, I installed the latest Skype client, and got it working with my headset: the whole process took about 2 minutes. Next up was getting a plan so I could call regular phones; Skype's SkypeOut Unlimited did the job for me, for $30 a year for unlimited calling to any landline in North America. Finally, a phone number that could be directed from my company's PBX for clients to call me; I opted for Skype Pro for $3 a month, in addition to a SkypeIn number for another $30 annually. Paying for these services was a bit odd, as you can only use certain credit cards or PayPal, and the currency has to be switched from Euros. I played with it for a couple of days, and was pleasantly surprised.
Since my experience went well, I discovered Skype has a tool for me to add numbers and control usage for my other employees, Skype for Business. Free, and offers the promise of a smooth administration, it looked to be just what the doctor ordered. And here was where things got bizarre. First, yes, you can sign up for Skype For Business free, but you need to add money into a joint account to spread the funds across employees. Options? Bank transfer, PayPal or a "Moneybookers" account. That's it. Uh, folks, is this not called Skype For BUSINESS? You're telling me I can't just give you a company credit card? Frustrated, I signed up for a PayPal account with the company card...and was told I could transfer a maximum of $25 into the account. I have to buy SkypeIn numbers and Skype credits for several employees, and I'm limited to $25?Frustrated, I looked into "MoneyBookers," which is essentially a UK company that does similar to PayPal, but after 15 minutes of transatlantic form filling, I was told that the company card could not be processed since it was drawn on a US bank. ARGH. I wrote to Skype, explained the situation, as well as the ludicrousness of having to explain that I wanted to give them money and they were preventing me. That was weeks ago, and I have yet to receive a reply. I was finally forced to involve our CFO to do a bank transfer to fund this little operation.
Next came the fun of getting my staff up. I asked them to sign up for Skype, and send me their usernames. The Business Control Panel allowed me to send invites to those usernames...which none of my team ever received. Multiple efforts, nothing. Out of frustration, I finally downloaded the Business Edition of Skype, which is described as "a business version of Skype. It has the same features as the standard version; however, it also includes Windows Installer (commonly known as MSI)." What it does NOT say, however, is that if you want your team to use the Control Panel, they MUST install this version. Now, would you not think this would be stated somewhere in the Business Control Panel? What are these Euro nutcases thinking? Finally, my staff was able to connect to the Panel, I was able to allocate them numbers and credits, and away we went.The quality of the calls is excellent, especially Skype to Skype. Better than any phone call you could ever hope for. The few complaints I have are around performance: there is sometimes a slight lag in the calls to landlines (very rare), and some of my staff say they have had callers say the sound is "tinny" on occasion. The biggest grype I have is around the resource usage: I frequently am pushing the CPU on my laptop to full capacity, and if I am on a call, this can impact it: sound drops out, lag, and even a Max Headroom stutter on occasion. Still, the overall quality and ease of use is impressive, and the mobility factor is amazing.
My conclusions are that Skype needs to get their Scandinavian heads out of their asses (and their masters at eBay's crotches) and either embrace this as business, or keep to their little personal calling tools. I did look at the Gizmo Project, but reviews pointed to far spottier call quality. I did not look at Yahoo Messenger's or AIM's phone options, and I desperately craved a version of Google Talk that calls landlines, but Skype owns the space. If I had to do it again, I would still choose Skype, but these guys need to get their customer service in gear, as no business should have to go through what I did.
In any case, if you happen to be on Skype, feel free to give me a call.
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
Monday, September 03, 2007
The United States of Circuit City
"Papers, please." Sounds like a line out of a Nazi guard in an old war movie, right? Wrong. These were words (paraphrased) uttered in Brooklyn, Ohio, this very weekend by not just one ill informed individual, but two. Unfortunately, one was a Circuit City store manager and one, unbelievably, was a police officer.
If you've ever bought something from a large electronics store, you've always accepted the annoyance of having to show your receipt and have your package inspected as you leave. What you might not have expected are the consequences for not doing so. Worse, you probably don't know your rights in this regard. This man did, and exercised them both this weekend. His reward? Arrested on trumped up charges. You can't believe this until you read it.
By the way, Circuit City is not the only one who has gotten out of control with this. Similar stories of multiple Best Buy's are far too common. As a former electronics retail store manager, I can honestly say that there is a line where common sense is a requirement of your job. If you don't feel so, you've crossed that line. In this story, the hapless Circuit City store manager is about to find out what happens when that line gets crossed.
"Papers, please." Sounds like a line out of a Nazi guard in an old war movie, right? Wrong. These were words (paraphrased) uttered in Brooklyn, Ohio, this very weekend by not just one ill informed individual, but two. Unfortunately, one was a Circuit City store manager and one, unbelievably, was a police officer.If you've ever bought something from a large electronics store, you've always accepted the annoyance of having to show your receipt and have your package inspected as you leave. What you might not have expected are the consequences for not doing so. Worse, you probably don't know your rights in this regard. This man did, and exercised them both this weekend. His reward? Arrested on trumped up charges. You can't believe this until you read it.
By the way, Circuit City is not the only one who has gotten out of control with this. Similar stories of multiple Best Buy's are far too common. As a former electronics retail store manager, I can honestly say that there is a line where common sense is a requirement of your job. If you don't feel so, you've crossed that line. In this story, the hapless Circuit City store manager is about to find out what happens when that line gets crossed.
Friday, August 17, 2007
Finally! Good Uses Of the Web In Video Games
Since the major consoles and all PC's are almost sure to be connected to the Web these days, I've always been surprised that there have not been more developers taking advantage of the connected nature. EA, the largest maker of video games, finally has started to play in the space, introducing the ability to have the real-world weather affect the conditions in a game you are playing.
While limited to NCAA Football right now, "EA is encouraged by the weather feature's popularity and will add it to Madden and the entire sports portfolio soon." More interesting are some of the other areas EA has been playing in this regard that I was unaware of, including the ESPN sports ticker running live along the bottom of the screen, displaying real-world realtime information, and...gasp...automatic roster updates!!!
But take this further: Grand Theft Auto could advertise upcoming movies on billboards, and have them change as the release dates change. Need For Speed could introduce new car models, as the makers roll out their model years. Brothers In Arms could have interstitials from The History Channel. I know, the market for video games and ads has been elusive, but the type of marriage we are seeing here definitely adds eyeballs, and eyeballs = $.
Since the major consoles and all PC's are almost sure to be connected to the Web these days, I've always been surprised that there have not been more developers taking advantage of the connected nature. EA, the largest maker of video games, finally has started to play in the space, introducing the ability to have the real-world weather affect the conditions in a game you are playing.While limited to NCAA Football right now, "EA is encouraged by the weather feature's popularity and will add it to Madden and the entire sports portfolio soon." More interesting are some of the other areas EA has been playing in this regard that I was unaware of, including the ESPN sports ticker running live along the bottom of the screen, displaying real-world realtime information, and...gasp...automatic roster updates!!!
But take this further: Grand Theft Auto could advertise upcoming movies on billboards, and have them change as the release dates change. Need For Speed could introduce new car models, as the makers roll out their model years. Brothers In Arms could have interstitials from The History Channel. I know, the market for video games and ads has been elusive, but the type of marriage we are seeing here definitely adds eyeballs, and eyeballs = $.
Labels: business, Madden, Video Games
Thursday, August 16, 2007
A Sharper Guillotine Blade
As Richard Solo waxes, it appears my old mates at The Sharper Image are headed for an ignominious end. With rumors of bankruptcy in the Ionic Breeze-laden air, investors are dumping stock, and the lawsuits are looming large. Personally, having invested a decade of my life in the company's success, I'd hate to see it end this way, but it sure seems headed that way.
What's needed now is an investment group to buy the company, liquidate/reduce the footprint of the stores, and focus on relaunching the brand as an online destination. For instance, a line of products from Engadget and Gizmodo: focus on taking preorders for the Optimus Keyboard, and the like. A clearing house for new, cool and hip products: Japanese phones, concept products, mixed with old reliables like USB-powered devices at low prices. And finally, they would need to mix the business model: RSS feeds of the cool blogs with pay per click ad revenue, mixed with revenue from product sales and affiliate commissions for indirect complimentary services, like music downloads etc.
In fact, I wonder if there's a point man the investors could look to. A proven innovator and enterpreneur. Could this be...the return of....RT?
As Richard Solo waxes, it appears my old mates at The Sharper Image are headed for an ignominious end. With rumors of bankruptcy in the Ionic Breeze-laden air, investors are dumping stock, and the lawsuits are looming large. Personally, having invested a decade of my life in the company's success, I'd hate to see it end this way, but it sure seems headed that way.What's needed now is an investment group to buy the company, liquidate/reduce the footprint of the stores, and focus on relaunching the brand as an online destination. For instance, a line of products from Engadget and Gizmodo: focus on taking preorders for the Optimus Keyboard, and the like. A clearing house for new, cool and hip products: Japanese phones, concept products, mixed with old reliables like USB-powered devices at low prices. And finally, they would need to mix the business model: RSS feeds of the cool blogs with pay per click ad revenue, mixed with revenue from product sales and affiliate commissions for indirect complimentary services, like music downloads etc.
In fact, I wonder if there's a point man the investors could look to. A proven innovator and enterpreneur. Could this be...the return of....RT?
Wednesday, August 15, 2007
Truth in Jest: The Line Is Often Blurry
Sent from Inderpreet, whom we miss every day, it's amazing to see how much truth lies in humor.
See for yourself.
See for yourself.
Sunday, July 15, 2007
Reason #482 Blogs are important
A while back, I blogged about how a person in my company was using his blog as a good tool to help better position himself and his job satisfaction in the company. Today, while perusing my Google Reader, I read his latest entry. This excerpt caught my eye:
Damn, that's smart. I never thought to use my blog to define my perfect new hire. It makes sense: why not demystify the process, and let people know just the kind of person you are looking for? Hell, I know people Google me before an interview; why not see just how good and smart they are by leaving them the tips they need to ensure I understand they are the right person for the job?
Thanks, Ed. Look for my post on the Client Services Manager I need soon!
A while back, I blogged about how a person in my company was using his blog as a good tool to help better position himself and his job satisfaction in the company. Today, while perusing my Google Reader, I read his latest entry. This excerpt caught my eye:"I hope some of the candidates I interview run into this blog entry. In reality, the ones that are curious enough to try and Google some information about my company or SQL Server DBA interview questions will run into lots of more useful information before coming upon this blog. Unfortunately, those are few and far between."
Damn, that's smart. I never thought to use my blog to define my perfect new hire. It makes sense: why not demystify the process, and let people know just the kind of person you are looking for? Hell, I know people Google me before an interview; why not see just how good and smart they are by leaving them the tips they need to ensure I understand they are the right person for the job?
Thanks, Ed. Look for my post on the Client Services Manager I need soon!
Sunday, March 04, 2007
Exercise in Honesty, An Error, or a Great Strategy?
This last week was an interesting one. After all the dust settles, I may well share some insight on it all, but the situation is still in flux. Suffice it to say, this week determined my career, my home, and my mental state. It's been a busy one, to say the least.
One odd experience was with the power and peril of social networking on the web, and blogs. I am a passionate LinkedIn user, as it has always yielded me great results for professional networking and hiring. When you are a LinkedIn user, as you make updates to your profile, your linked contacts are notified of the changes, through email. I received one notification of a change, from someone I work with: he added a link to his blog. Curious, I checked it out. The first entry I saw?
This was startling, to say the least. My first reaction was shock, then embarrassment for the co-worker: he obviously had not realized his fellow company mates would see this. I could not tell him directly, as it was delicate, and I had reasons of my own. I shared the blog with some others, so they could talk with him.
As I thought more about this, I realized his "error" was actually one of three possibilities:
Now, I have worked with him for years, and find him to be one of the most honest and easygoing people I have ever worked with. He will dig his heels in when he thinks he's right, and cheerfully abandon objections when he sees no merit to them. I still have not figured out which of the above it is, but as more and more of us blog online, I wonder if this will be a more common occurrence, and if so, if he's not just a bit ahead of the rest of us on using this as
This last week was an interesting one. After all the dust settles, I may well share some insight on it all, but the situation is still in flux. Suffice it to say, this week determined my career, my home, and my mental state. It's been a busy one, to say the least.One odd experience was with the power and peril of social networking on the web, and blogs. I am a passionate LinkedIn user, as it has always yielded me great results for professional networking and hiring. When you are a LinkedIn user, as you make updates to your profile, your linked contacts are notified of the changes, through email. I received one notification of a change, from someone I work with: he added a link to his blog. Curious, I checked it out. The first entry I saw?
A time for change?
It's been over 3 years that I've been at my current company. I have never stayed with one company this long, and I'm getting the itch for a change. I've got several reasons why I want to change, and several reasons to stay put.
This was startling, to say the least. My first reaction was shock, then embarrassment for the co-worker: he obviously had not realized his fellow company mates would see this. I could not tell him directly, as it was delicate, and I had reasons of my own. I shared the blog with some others, so they could talk with him.
As I thought more about this, I realized his "error" was actually one of three possibilities:
- He made a genuine error, not realizing others in the company would see it.
- He blogs honestly and transparently, and is proud that others in the worlds he lives in can see his thoughts, regardless of the consequences.
- He did this as a conscious strategy to get others in the company to recognize his unhappiness, and choose to address it with him, either with discussion or perhaps compensation.
Now, I have worked with him for years, and find him to be one of the most honest and easygoing people I have ever worked with. He will dig his heels in when he thinks he's right, and cheerfully abandon objections when he sees no merit to them. I still have not figured out which of the above it is, but as more and more of us blog online, I wonder if this will be a more common occurrence, and if so, if he's not just a bit ahead of the rest of us on using this as