Monthly Archives: August 2019

Don’t Surprise Me

You just can’t be too careful these days, can you? It seems that we hear every day about another data breach involving stolen credit card numbers or passwords or anything from your search history to your online shopping list. If you don’t pay much attention to your data security you are definitely, as my Dad used to say, cruisin’ for a bruisin’.

Since I try to make it a habit to practice what I preach, I’m quite careful about security. I use a password manager and I don’t generally store credit card numbers online, preferring to use that password manager to fill in the number as needed. It was quite disturbing, therefore, when my phone buzzed like a tornado was imminent yesterday. It was American Express notifying me of what they thought might be a fraudulent charge at the Microsoft online store. An email arrived simultaneously, telling me about the charge and asking me to click if I had knowledge of it. I didn’t and told them so, which immediately canceled my Amex card (and to their credit, Amex immediately generated a new number and I’ll have a new card today – why I’ve been a member since 1979).

Imagine my surprise this morning when I got an email from Microsoft telling me they “tried to charge your Xbox Live Gold subscription on Tuesday, August 20, 2019, but the charge of $60.59 to American Express was unsuccessful.” Well, no kidding. I told Amex not to pay it because I didn’t know that it was the renewal of something I very much did want to renew. Maybe if Microsoft gave me a little advance notice, which is what many other companies whose products I auto-renew to a credit card do, I wouldn’t have clicked the button that will now result in my having to change credit card numbers on several other things – my cell phone bill, two newspaper subscriptions and several magazines, and a streaming service among them. Every one of them notifies me before charging my card so that I’m expecting the charge. I guess Microsoft hasn’t figured out that when it comes to charges on a credit card people do NOT like to be surprised.

Had Microsoft put on their customer-focused thinking caps, they would have recognized that. Instead, I’m sure someone thought “let’s not give them the chance to cancel and go ahead and charge the auto-renew without telling them ahead of time.” That’s bad customer communication and bad strategy. By keeping the customer’s needs and perspective front and center, we won’t make mistakes like this. Agreed?

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Filed under Consulting, Huh?

Pumpkin Spice

This Foodie Friday, we’re taking a leap ahead into Fall, and if Fall means one thing to most people, it’s pumpkin spice. I know – you were thinking football, but no, my guess is that far more people are affected by the pumpkin spice thing than the pigskin thing. It’s a relatively recent development as spice companies didn’t actually make “pumpkin pie spice” until the 1950s and that became “pumpkin spice” in the 1960s. Some candle company began marketing a pumpkin spice candle in 1995, Starbucks picked up the flavor after many small coffee shops did, and the rest is food history.

Today, I saw what might be the last straw in the craze: Pumpkin Spice Spam. This is not a joke – it will be available only online and there are already cans of it out in the wild. Apparently, it doesn’t taste too bad – kind of like breakfast sausage. While I’m generally a believer in the “anything worth doing is worth overdoing” philosophy, I think we just might have hit our limits here, although one might wonder where that limit lies after pumpkin spice hummus, Four Loko, Pringles, gum, and vodka, to name only a few of the products that are out there.

There is a serious business point to be made here. Pumpkin spice is a flavor and a scent, and of course, you can add either of those things to a product to make it seasonally relevant, at least to some people. That doesn’t necessarily mean that you should which is the broader business point. There are often moments in business when we’re confronted with what some might call opportunities while others might see them as dilemmas. A bank might be able to make more money if it charges its own customers a fee to use their own ATMs or to have a debit card. That’s a bad idea.

There was a great piece published years ago called “Companies and the Customers Who Hate Them.” It talked about charging penalties and fees especially in the cell phone, cable, and banking industries. It concluded:

One of the most influential propositions in marketing is that customer satisfaction begets loyalty, and loyalty begets profits. Why, then, do so many companies infuriate their customers by binding them with contracts, bleeding them with fees, confounding them with fine print, and otherwise penalizing them for their business? Because, unfortunately, it pays. Companies have found that confused and ill-informed customers, who often end up making poor purchasing decisions, can be highly profitable indeed.

I don’t think that adding pumpkin spice to an already good product is on a level with some of the outrageous fees we’re charged as consumers but it illustrates the point that just because we can do something in business doesn’t mean that we should. Not only do you run the risk of having seasonal merchandise go unsold (unhappy retailers!) but also of having customers question your sanity. Neither is good business in my book. Yours?

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Filed under food, Huh?, Reality checks

Ball Position

I haven’t bored you with a golf-related screed in a while so let’s try that today. Yes, it relates to business too, of course. As I generally do over the weekend, I played golf. If you’ve been a reader for any amount of time you know that I find a great number of life lessons (and business lessons) on the links. Of course, given how badly I played the last few rounds, the only learning of which I became convinced was that I was really terrible at this game.

This morning, with my head a little more clear I went to the driving range. For those of you who are golfers, I thought that my problem was that I needed to shallow out (make a little flatter) my swing because I was digging very deep divots and not striking the ball particularly well. From time to time, especially when I was off the fairway (it happens), I was spraying the ball right because I couldn’t get the clubface back to square due, I thought, to the steepness of my swing.

None of that technical stuff matters, however. I had diagnosed the issue and thought I knew the answer so I went to the range to make a swing change. As with anything, big changes take time and I wanted to get going. You with me so far?

Well, as I was warming up to begin practice, an odd thing happened. I hit a ball with it positioned farther forward (think closer to my left foot) in my stance. The result was an absolutely pure shot – straight, high, and far. No real divot either, just a nice scrape along the ground. I tried it again – the same result. OMG – I don’t stink – the ball was just too far back (toward my right foot) in my stance and I had to come at it too steeply to hit it. With it forward everything else was fine. The club pro was on the range giving a lesson and he wandered over when he was done. He confirmed my swing looked pretty good. and that yes, something as simple as moving the ball forward 3 inches could change everything. Which is, of course, the business point.

How many times have things not been going well and someone – the boss, the management team, maybe you – rants that wholesale changes are needed? This usually starts a chain of events that paralyzes the enterprise. Here is the thing – it’s rare that a business loses its mojo overnight. It’s usually a gradual process of tiny changes, much like me having the ball slide further back in my stance little by little until I became used to playing it too far back which was making it difficult to play well. Businesses let things “slide back” too until they can’t operate well.

Much like my fix, it’s rare that major changes are needed in a business. It’s usually just a matter of paying attention to what had become different over time. It may require some outside eyes to help with that, but usually, the folks with good institutional memory can provide answers (yet another reason why you don’t get rid of all us older employees!).

Wholesale swing changes? Nah – just a tweak in ball position. Think about that the next time you’re contemplating a major change in your business. Yes, that might be needed but isn’t starting with some simple changes much easier and cost-effective?

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Filed under Helpful Hints, Thinking Aloud