Marketing


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.

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 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.

I did a couple of customer-satisfaction interviews today.  I won’t tell you the company or describe the product.  It’s not important to the discussion, but in case you are wondering, it’s not one of the companies or products I represent.  It is important to note that both individuals that I interviewed want the product and the company to succeed.

In the first survey, I got a lot of feedback.  Almost an hour’s worth.  There was some very positive feedback about certain components of the offering, but I heard many more negative comments, such as:

  • They are barely keeping up with free alternatives.
  • The leadership was great for a startup, but needs to step aside if they are to get to the next level.
  • They are not listening to their customers.
  • They treat everyone the same, and don’t listen to the different needs of different customers.
  • No one thinks their product or their service is adequate.
  • I have to go to a third party to fix the problems they aren’t addressing, and I know other customers who are doing the same thing.
  • I shouldn’t have to pay someone else to do the job that they should be doing. (more…)

RyanAir is in a lot of businesses, but they are definitely not in the airline business.  The airplanes they fly are simply the delivery mechanism for a lot of other services.  And since the airplane is the method of delivery, RyanAir has done everything they can possible do to reduce their per-plane cost. For example, they have

  • Maximized seat density, making it impossible for anyone with an inseam greater than 32″ to slouch in the seat.
  • Eliminated the removable safety-instructions card and replaced them with laminated labels on each seatback.
  • Eliminated the seat-back pockets so passengers won’t put trash in them, thus reducing the time to clean a plane.
  • Boarded and deplaned from both the front and the rear of the plane, thus reducing the airport turnaround time to about 25 minutes.
  • Standardized on a single style plane, the Boeing 737-800, to reduce pilot and crew costs.
  • Arranged for landing rights and terminal gates in the lowest-cost locations in Europe.

You may be asking, “If RyanAir’s not in the airline business, then what business are they in?”  Well, here’s a hint… (more…)

When I was growing up, my family would occasionally take what we called “Penny Walks.”  We lived in western Colorado, where the towns were mostly laid out on a North-South, East-West grid.  A penny walk involved taking a walk, penny in hand, and every time you got to a corner, you flipped the coin. Heads you go right. Tails you go left.  You never knew where you were going to go, but you knew you weren’t going to get caught in a familiar routine.  With penny walks, you ran into different people or different things. You had variety. Penny walks don’t work as well in Massachusetts, where I live now, because the streets are laid out in the rough equivalent of a meandering cow.

My random walks these days are as likely to occur on the World Wide Web, as they are to occur in my town.  Did I mention we have almost no sidewalks? So here on the internet, thanks to a link from Jason Rakowski, I was lead on a random walk through his blog, to another blog by someone named Dejra to a service called Pingomatic.  The service helps writers/bloggers raise the visibility of their sites by updating search engines.  I’m trying it out today.  I’ll let you know how it goes. 

Given Dejra’s focus on affiliate marketing, I’m wondering if she knows my brother, Ken?

Dejra? Ken?

I’ve never met Jason Rakowski, but he introduced himself through a comment on my previous post.  As I always do, I checked out his website to ensure that the comment wasn’t originating from yet another linking/spamming news-aggregation site selling pharmaceuticals or worthless paraphernalia. I was pleasantly surprised to find that Jason writes a very good blog on customer service.

As a service to my readers, I’m providing a link to his blog posting on When It’s Time to Fire the Customer.  He even provides a helpful case study. It looks like Jason works in or with the auto industry, so I suspect he knows more than a bit about customer service, both good and bad.  Jason?

About 10 years ago, I did several video segments with Caspar Weinberger on the show World Business Review (WBR).  I was one of the “industry experts,” whose job it was to keep the conversation on topic, and not let the episode go too far afield or become too much of an infomercial. 

Cap (he wanted to be called “Cap”), who was eventually replaced by Al Haig, passed away in 2006, but he was amazingly active well into his 80s, when he was hosting this show.  He used to record between 4 and 6 episodes a day. At the time, distribution for the episodes included broadcast on the business channel on United’s overseas flights to Japan.  I only know this because I spent so much time flying to Japan in those days and saw myself on the overhead screen from time to time.  WBR also licensed the content to schools, which I always found interesting.

Every startup is looking for cost-efficient and effective ways to get the word out on their products and services.  StorMagic decided to leverage wsRadio with this webcast.  It’s well produced. I don’t know the cost, and I need to hear from wsRadio regarding how many listeners they get and how the content they produce is distributed.  I’d also like to hear from anyone who has used wsRadio or similar services to get the word out.  Was it effective in raising visibility?  Did it increase end-user or partner leads? Did it help close sales?

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