John McArthur’s New Venture Blog

In last week’s post I talked about the importance of a start up knowing the percentage of customers that would recommend their product or their company. There’s actually a name for this metric. It’s called the Net Promoter Score or NPS. Here’s an article that provides a way to calculate your NPS.  In order to have a high NPS, you need more than the right product. You need the right customer experience.

I’m always a little shocked by companies that see unhappy customers and fail to take immediate action. My wife recently took her car into the local dealership for routine service.  Between a post-doctoral fellowship, an active private practice, and several non-profit board seats, she’s very busy. So she wanted to know how long the service would take. The answer was, “No more than an hour.” After a two and a half hour wait for her service to  be completed, she was obviously steaming. She complained to the service manager, who apologized and then sent her on her way.

When the post-service customer satisfaction survey call came, she gave candid answers. She was not satisfied. Less than 24 hours later, she received a call from the service manager apologizing profusely, telling her to call him directly, the next time she had her car serviced. He then offered her a complimentary car detailing service along with a polite recommendation that she wait until the winter season was done, in order to get the maximum benefit from the detailing. The coupon for the free detailing arrived the next day in the mail. My wife was somewhat calmed by the gesture, but still doesn’t mind repeating the story of the dealership’s poor service.

Now, imagine how different her reaction might have been, had the service manager, to whom she expressed her dissatisfaction before she left the dealership, had then offered her a discount, or a free detailing service. Her anger would probably have been assuaged immediately. What if it didn’t require the service manager’s involvement at all, but the clerk at the service desk had been empowered and taken the initiative to make things right? What if the dealership’s response had been as it was for me at a local restaurant, when the waitress offered my meal for free, because I had to wait too long to be served. Rather than a detractor, I became a promoter, for her willingness to proactively do the right thing.

Last summer I spent an enormous amount of money when I purchased the Torque game engine, so that my oldest son could try his hand at game development. In order to maximize my son’s success and seeing that there were many in-depth books available to learn how to use Torque, I offered to buy him a book as well.  But my son assured me that it was unnecessary, since he already knew how to program in Torque. That seemed odd to me, given that he had never had the software before, but turns out, he learned how to program in Torque by reading websites and watching videos on line. Increasingly, that’s how the latest generation learns. And thanks to a growing library of videos stored at sites such as YouTube, and contributors such as Khan Academy, you can learn how to do almost anything, including most of the math you will need to graduate high school and pass the first year of college.

Videos are also becoming an important medium for companies to get the word out, to explain, and clarify. So as an example, after a 2-day planning meeting with one of my clients, StorMagic, where I serve as a member of the board, I asked my son to record five short videos of StorMagic’s CEO, Hans O’Sullivan, answering simple, direct questions. Each video is less than a minute long and answers one or two questions on topics such as the background of the management team, the strategic focus of the company, the impact of recent announcements, and the company’s relationship with one of its partners.

Videos seem to be all the rage.  I don’t know what will come after videos, but it seems to me that for the next few years, at least, video will be of strategic importance in getting the word out about your company.

Hope you enjoy these.

StorMagic’s CEO Discusses Multi-Site Installations of SvSAN for VMware

StorMagic CEO Discusses the StorMagic Team and Recent Growth

More videos regarding StorMagic can be found on YouTube by searching StorMagic. You can even learn how to install and manage an SvSAN just by watching a video.

I recently attended the TEDxBoston conference. If you’ve never been, I encourage you to go.  This year’s conference was overflowing with both people and ideas.  For me, it’s a vacation from the day-to-day, an opportunity to find new inspiration, and a place to cross-pollinate ideas.  I never go to find more business, but rather to get better at what I do.

One presentation that I found particularly valuable was by Michelle Borkin, who explained her interdisciplinary approach to data visualization.  She brought together professionals from astronomy, who were working on how to get better 3-dimensional  pictures of objects in outer space, with radiologists, who were trying to get better 3-dimensional pictures of organs in the human body.  The results were both beautiful and amazing.

It would be easy to say “Outer space is very different from the human body, so it has no relevance to what I’m doing,” but she took the opposite approach and asked, “What are they doing that is similar to what I’m trying to do, and what can I apply from what they have already learned?” With all of the discussion around data generated on the internet, I kept wondering, during her presentation, what data visualization techniques can be taken from astronomy and radiology and applied to understanding consumers and influence.

From time to time as a favor to friends, I will contribute as guest blogger.  So let me direct your attention to this Guest Blog on Countdown.2.Storage Expo.  Rose Ross, who also attended the BDEvent, asked me to provide a write up on the one session that she missed, which was the one that I co-chaired with Mike Miracle.  For reference and completeness, here’s Rose’s very-excellent post on the rest of the event.

Rose has been a friend for many years, so, of course, I said, yes.  For those of you who don’t know her, Rose is an accomplished PR professional, who carries many titles, including:

• Chief Marketing Officer at Launchpad Europe
• Managing Director / Founder at Omarketing

It seems I’m not the only one who is a Rose fan.  I see on her bio that she is the 2005 winner of the Toigo Award for Best Storage PR Professional.  For those that are looking for PR support in Europe, take a look at Omarketing, and for those looking to expand a European channel, take a look at Launchpad Europe.

And under the  FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising, which focus on “Testimonial Advertisements, Bloggers, and Celebrity Endorsements,” let me assure you that I am not paid by, nor do I receive commissions or referral fees from Launchpad Europe or Omarketing.

Oh, yes, the next BDEvent will be held at the Sheraton in Palo Alto, CA, on January 25 – 27, 2011.

Many startups are using free, online survey tools. Today I helped StorageVirtualAppliance develop a survey targeted at users of VMware and other virtual-server solutions. The survey was developed using FreeOnlineSurveys, similar to Survey Monkey, with which I was more familiar.

As I was working with StorageVirtualAppliance, I was reminded of some rules in survey design.

1) Know the purpose of the survey: Lead Generation, Evangelization and Market Awareness, Actionable Information for Product Marketing, Actionable Information for Product Management

2) Think about how you will categorize and summarize the data. Open-ended questions may provide great color commentary or quotable statements, but in large volume are difficult to categorize and summarize.

3) Have an incentive for those that take the time to complete the survey. The incentive could be as simple and inexpensive as a summary of the results, it could be an opportunity to be entered into a prize drawing, or it could be a small cash award.

In addition to helping with the survey, I also offered to help get the survey out to a broader set of participants. So, if you know any IT professionals, please send them to this blog and have them click on this survey link.

Thanks in advance. Participants could win a copy of Eco-Tech Warrior, Greg Schultz’, new book, The Green and Virtual Data Center.

One of the sessions I attended at the New England Area VMware User Group meeting in Newport, Rhode Island last week included a discussion on how to take the internal storage of a VMware ESX host and turn it into a virtualized iSCSI storage appliance.  I happen to believe that the approach has great merit for many smaller IT shops and for remote office environments.  The internal storage of an ESX server, if totally useable and accessible to the ESX host and other ESX servers on the network, is probably the cheapest storage you will ever buy.  What I found particularly interesting about this session, however, was the fact that the presenter downplayed the approach as good enough to experiment with the storage virtualization software, but not good enough to run production applications.  In order to encourage companies to try the software, the developer offers a free 30-day trial, the expiration of which then renders the server unuseable, unless you purchase a permanent license.  While I believe the company has good software, I don’t understand the approach to the market. (more…)

Most people I work with now know that I am a relatively active user of social media and business networking tools, including Facebook, Twitter, Delicious, LinkedIn and Plaxo.  In fact, over the past six months, my blogging dropped off significantly, but my use of social media and business networking tools accelerated.

One of my clients was asking about the size of the installed base of Geographically Dispersed Parallel Sysplex (GDPS), wondering if it was a market large enough to justify the investment needed to integrate with  their own solution.  They also wondered about the penetration rate for GDPS within the installed base of z/OS licenses.  That’s rather esoteric stuff, unless you cut your teeth on IBM mainframes, as I did. (more…)

About 20 years ago, I had a small consulting practice, helping very-small businesses migrate from typewriters and manual accounting systems, to automated ordering, billing, and accounting systems.  Within a year or so, I turned my few customers over to my brother, Ken, who was much better equipped to service them.  Ken was also substantially more knowledgeable in the area.  To Ken’s credit, he continued to service these accounts for years, even though he was geographically challenged with a separation of about 350 miles.

My first client has offices little more than a block from where my sons now attend summer camp.  So this morning, after dropping them off, I stopped by to see my former client.  He’s no longer using the systems we developed for him.  But they were good for more than 10 years.  So that’s not bad.  I met his in-house IT guy, the guy that replaced my brother and our systems.  The new guy says he also takes out the garbage and cleans the offices on Fridays, something we never did.  (more…)

I was describing to my rather-precocious, thirteen-year-old son the problem that companies have of getting the word out.  As part of “Career Week” at his school (five different jobs for five days at the end of the school year), my son decided he would make a stop-motion Lego video for Tek-Tools, one of my clients, to promote the company.   I told him that, if it was good enough, I would show it to the CEO, and maybe he would use it.  Little did I know that my son was going to, upon completion, post the video on YouTube.  But he did.  Without permission.  And my wife asked me, once again, “Why don’t we have more controls on his computer?” 

Ken Barth, the CEO of Tek-Tools,  was our first client at Walden Technology Partners.  A lot of people in the computer storage industry know him, and beyond the fact that he has been successful in everything that he has done, everyone who meets him says the same thing: “He’s a great guy.”  Ken’s company provides a superb solution for reporting, monitoring, forecasting, and profiling IT infrastructure.  It’s easy to install, easy to use, and provides immediate value.  What could be better?   (more…)

I had a conversation with Megan at BzzAgent this week.  My interest was peaked, when a former IDC colleague, who now works at Iron Mountain Digital, mentioned BzzAgent. 

BzzAgent claims to have 400,000 “buzz agents,” who have agreed to review products and services and to share with their friends and colleagues their honest opinion.  BzzAgents get the products for free.  They test them.  And they create buzz.  The buzz could be good, or it could be bad, but it’s buzz.  I don’t know if Iron Mountain Digital uses BzzAgent, but I can see the fit, since, Iron Mountain offers desktop and server backup services to homes and businesses. 

At the $80,000 entry price that Megan mentioned, you’ll want to get a lot of buzz for the investment, and you’ll want to have enough confidence in your product to expect that most of the buzz will be good.   In the consumer products and services area, I see a great opportunity to leverage BzzAgent.  It’s hard to see the fit for the kinds of enterprise IT infrastructure providers with whom we are working. But, Megan suggested I check out their Frogpond offering, which I will do when I get a chance. 

In the meantime, after listening to the pitch from Megan, I decided to sign up myself.  I am now officially a BzzAgent.  I’ll let you know how it goes.  For now, I’ve just filled out a bunch of surveys about my drinking habits (softdrink and otherwise).  Fortunately, the fortunes of Coke and Pepsi don’t depend much on my soft-drink habits. If they did, the companies would be broke.