Category Archives: Thinking Aloud

Tsimmis

This week’s Foodie Friday coincides with the start of Passover. As with most festivals of any religion, certain foods appear for the Seder that rarely show up at other times during the year. One of those is Tsimmis, a combination of sweet potatoes, dried fruit, and carrots. I use a recipe written down by my mother years ago (from her mother) and as with many family recipes it requires some interpretation and local knowledge. It calls for a “large can” of yams (how large exactly?), a box of prunes (which is how many ounces?) and a few other equally vague references. Of course, my inclination as a cook is to use fresh ingredients. Fresh sweet potato instead of canned, fresh carrots in place of the bag of frozen ones called for, etc. I don’t, however, and the reason why I don’t is a good business point too.

If I were to serve the dish made with fresh ingredients my family, who have been eating my mother’s recipe at seders for decades, would notice a difference.  Holidays are built around traditions and those traditions contain expectations.  Would the dish taste better?  Probably.  It would be more healthy as well – canned yams in syrup are not the best thing.  But the folks around that table aren’t looking for healthy or better.  They want the comfort of the familiar.

We often forget that in business as we’re always trying to make or products or services “better.”  History is littered with products that represent good companies making bad decisions by making the very familiar different.  New Coke, the Arch Deluxe burger, and others represent variants on successful products that seemed the same but resulted in an experience that didn’t match consumers’ expectations.  Of course we need to improve but we need to do so in a way that brings our customers along for the ride.  Presenting them with a dish that they expect to be one thing but which is very different probably isn’t going to have a great outcome.

It can be done.  Another Foodie Friday example.  After years of roasting turkeys for Thanksgiving I wanted to switch to frying them (it freed up my ovens, was quicker and they taste better too!).  I didn’t just switch them one year.  I did both and let the family come to their own conclusions.  My mother was able to answer her “darling, won’t they be very greasy?” question by comparing the methods side by side.  Now, we only fry.

As brand we can cajole, request, and demonstrate.  We can’t impose.  We need to meet expectations with the dishes that live in their memories and for which they keep coming back.

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The Coming Cable Shift

I got into a discussion with someone about the major shift that’s taking place in the cable industry. Specifically, we were discussing all of the ala carte services that are becoming available. Netflix, Hulu and Amazon Video are just the start. You’ve heard that major networks – CBS, NBC, ESPN, and others – are going to provide a streaming service via broadband. I wrote about that a couple of weeks ago so I won’t repeat myself . However, in a time when 13.5% of broadband households with an adult under 35 have no pay-TV subscriptions and 8.6 million US households have broadband Internet but no pay-TV subscription with millions more likely to cut the cable cord in the next year, the times are a changin’.

The person with whom I was discussing this didn’t think it was a big deal. First, the cable guys are also ISPs so they make their money (at higher margins) there. Second, people will find that paying a lot more for fewer networks isn’t so great after all. I told him he was missing a point.

When you pay the cable bill each month, much of that payment gets divided up among dozens of program providers. ESPN takes the biggest chunk, around $6 or $7 according to reports as does sports programming in general. Other networks get fees ranging from $1.50 down to a dime. That’s per household per month. You do the math.

The point he was missing is demonstrated by HBO. HBO is never a basic network, meaning it’s never just included. You pay $10 a month or so for it. HBO uses that money to fund a lot of spectacular programming. Now, so does Netflix.

When the model changes the cable guys are no longer distributing the pot to programmers as they see fit. Consumers are paying for what they watch.

Even if the out-of-pocket doesn’t change, the money goes to a much more limited set of content providers. They, in turn, will have the ability to invest in better content. Yes, I realize that 10 cents a month from 50 million homes is better than $2 from 2 million homes. The difference is that payment from the larger audience will never get bigger unless your network is moved to a bigger, more basic tier or you can negotiate your way to a bigger fee. Providing the network directly doesn’t cap your growth and developing a hit can provide a big growth in revenues. Think of your friends who will subscribe to HBO or Showtime just to watch a favorite series.

I would not want to be a minor network in all of this. I suspect we will see some bundling of like networks that don’t share ownership. I also think we’ll see many networks go dark or end up as free, ad-supported channels on some service – Apple TV, YouTube, whatever. One thing for sure – five years from now the business I grew up in won’t resemble the one we’ll be living with.

Thoughts?

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How I Write

I was speaking with someone last week about this blog. They were kind enough to ask about using some of the content and in the course of the conversation they said something to the effect of “I don’t know how you are able to write five days a week” so I thought that maybe I’d attempt to answer that question. As I do so I’m hoping it provide a little insight into some business thinking you can use.

The hardest part for me is finding a topic each day. I mean it’s not just what pops into my head but also is what pops in aomething that might be of interest to anyone other than me and, more importantly, does it have a broad enough business application to be relevant to you, the reader, no matter what your business might be. As I’ve written many times, it’s about your customer, not you.

As part of my daily routine I scan over 1,000 articles each day. I do this to stay on top of tech, marketing, social media, and other business and media trends because these are the topics with which my clients need help. That content ranges from the sort of stuff you might also pick up in “mainstream” media down to granular topics such as web analytic and SEM. These articles will generally provide a starting point.  You’ve read screeds on research, on things happening in social media, and marketing trends.  Most of those posts came from reading something that sparked a thought.

Sometimes (yesterday for example) something going on in my own life prompts a post.  We forget sometimes that our own narrow perspective may have application to other folks’ lives and as we were taught in education class you work from the known (what happened to me might have happened to you) to the unknown (what happened related to a broader business theme).  There are also posts that are just fun for me – Foodie Friday tends to be that way as was the TunesDay stuff I wrote about music each Tuesday.  Which brings up another point.

I stopped writing those posts because they were the least read.  I also have cut back on some of the research-related posts since they too tend to drive less readership.  Again, it’s about what interests you, not just me.  I don’t write about politics other than when something in the political sphere has non-political takeaways for us.  Why not?  Because inevitably one side or the other gets angry, justifiably or not, and might stop reading.

Finally, I keep an ongoing list of topics.  Links to articles, random thoughts, and even photos which prompt a thought are posted in a drafts folder as I go throughout my day.  When I’m ready to write that folder is my first stop. The hard part is making the point that came to me while telling a compelling story of some sort.  Then it becomes a matter of presenting it to you in a concise, clear manner.  Mechanically, I write in WordPress, I add an image, I proof twice, I check spelling, and I edit.

Since this is now about 100 words longer than my usual rant, I’ll stop here.  Hopefully you can apply that methodology to your business.  Look for things that might prompt a thought – new products, new platforms, new practices.  Consider them for a moment, hold them if they resonate, act on them when you can.  Any questions?

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