October 3, 2013 · 8:52 am

Cell Phones And Car Keys

I did a dumb thing a little while ago. I lost my car key. I had another one at home but having only one is a bad idea because apparently one can lose them (ahem). It’s one of those “smart” keys – as long as it’s in (or on, which is how I lost it) the car, the vehicle will start. Since I was due for a regular service anyway (which is where I’m writing this post) I asked the dealer to replace the lost key with another. Want to guess the price to do so?

$275.

I don’t know about you, but I didn’t pay $275 for my top of the line mobile phone. “But your phone is subsidized”, you say. “The cell companies do that to get you to pay for the service.” Exactly the business point and it applies to your business as well.

I don’t know what the key costs to manufacture – it’s a chip, a battery, and a case, basically.  Let’s be generous and say $50.  The woman at the service desk said “it takes an hour to program” as if there’s a coder in the back frantically assembling the software.  My guess is they plop the fob into a holder attached to a computer and it’s done pretty quickly.   But I understand the cost/value equation.  Why do they charge that much?  Because they can.  It’s not as if you can go on Craigslist and find a cheap key.  The issue isn’t can they, but should they?

I bought the car for $31,000 a few years ago.  I’ve spent a fair amount in regular service with them (the car has been worry-free otherwise!) although I could have gone anywhere to get an oil change and new filters.  And now, when I do have an issue, they’re choosing to maximize their profits instead of saying “let’s forego the easy $100 because this guy is a loyal customer and he’s going to have to replace that car in a year or two.”  Their short-term thinking is influencing my long-term thinking.

I know we’re all in business to make a profit.  My job is to help companies to do so.  One model – the cell model – is to tie you to the company by making it easy to become a customer and to make sure you’ll buy highly profitable services through subsidies.  I’m not sure that’s right for a car company – I don’t see them subsidizing your purchase so you’ll buy services.  However, doing the little things that build loyalty do that as well, and there is nothing that feels better when you do something totally stupid than a brand that lifts you up, dusts you off, and helps you fix it in a way that makes you feel good.  I realize the dealer didn’t lose the key.  The question is are they going to lose the customer?

Does that make sense?

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October 2, 2013 · 10:29 am

Who Runs Social?

Any time I’m working with a client and the subject of social media comes up, there’s usually a pretty good discussion of how social is seen within the organization.  More specifically, there’s generally an internal tug of war of sorts over messaging and ownership.  I thought maybe my keyhole into this issue was sort of unique but as it turns out it’s actually very common.TCG_0913_SocialMedia

The folks at The Creative Group did a survey of more than 400 advertising and marketing executives about who should own social media and that internecine battle was evident from the results:

Overall 39% of advertising and marketing executives said they think social media belongs in the public relations/communications wheelhouse, compared to 35% who said it should be the responsibility of the marketing department. Meanwhile 15% said it should be delegated to customer service, and 5% said it should be the direct responsibility of the company’s CEO (6% said they don’t know).

Of course, this sort of misses the point.  As I discuss with clients, social media isn’t focused on the brand or on the company – it needs to be focused on the customer.  Figuring out who “owns” it is about you.  Instead focus on the customer’s needs and decide who is best equipped to serve them in the social channel.   The answer may not be tied to one department.  Hmm – working together as a team – what a concept!

The other thing the survey raises is that with multiple internal stakeholders there is bound to be multiplicity of thought on messaging.  The entire organization needs to be aligned on that –  it can’t come with a constant PR or Marketing or Customer Service point of view.  As with many things in the business world, often the politics supersede the thought process.  This is usually the biggest hurdle to an effective social plan.  Once the politics get sorted, the messaging can flow as a customer-focused stream.  Resolving customer issues and carrying on a conversation that engages the customer (and NO they’re not only wanting to know about your latest and greatest product) is social’s role.

Who runs social?  Your customers do.  Any questions?

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October 1, 2013 · 9:50 am

Any Road

TunesDay, and today it’s one from my favorite Beatle, George Harrison. I was reminded of this song the other day (listening to Further’s version of it) and I knew instantly it was something for today on the screed.  The song is “Any Road” which was written in the late 1980’s but not released until 2003 after George’s early passing in 2001. In case you’re not familiar with it, have a listen:

This one speaks to me both on a personal level as well as to me as someone who works with businesses.  Let’s see if it does to you as well.

But oooeeee it’s a game
Sometimes you’re cool, sometimes you’re lame
Ah yeah it’s somewhere
And if you don’t know where you’re going
Any road will take you there

That’s sort of it on a personal level.  We all have our ups and downs and probably need to focus more on the journey than on the destination.  I went through school knowing I’d be a high school English teacher.  40 years later, I’m a teacher of a very different sort.  I wasn’t quite sure where I was going (and I’m still a trifle confused) but I’m very happy about the road that took me here.

But oh Lord we pay the price
With the spin of the wheel with the roll of  the dice
Ah yeah, you pay your fare
And if you don’t know where you’re going
Any road will take you there

Thinking about that with respect to business, my immediate response was  “well, that won’t work – businesses need far more focus.”  Then I thought of all the great businesses and products that were born out of not knowing where they were going.  The microwave oven, the Post-It note, penicillin, Teflon, the Slinky and others were all accidents.  The inventors didn’t quite know where they were going but the road took them there.  Today we call it “pivoting” but I like George’s notion of it better.

Maybe that’s the point of the song.  Staying calm and focused despite a sense of not exactly knowing where the journey ends is a far better idea than a stubborn adherence to something that might not be working.  Open minds about destinations can erase doubts since the doubts surface when we’re thinking we’re lost.

What’s your take?

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