Tag Archives: Business and Economy

March 22, 2016 · 9:02 am

Frictionless

One of the most basic principles of selling is that when a customer wants to give you money, take it. Take it as quickly and as seamlessly as possible. Any delay or friction is a chance for the customer to reconsider and for you to lose the sale. I saw this in action yesterday and it’s instructive for all of us.

English: Golf balls.

(Photo credit: Wikipedia)

It’s almost golf season. Rotten golfer and cheap person that I am, I generally buy “recycled” golf balls for my non-tournament play. These are balls that some intrepid soul fished out of a water hazard (nasty work as this article shows) and which are cleaned up and sold by any number of websites. I usually purchase 8 or 10 dozen before the season begins and since I had a couple of discount coupons in my mailbox, I logged on to the site from which I’ve made several purchases before.  I put my purchases in my shopping cart and went to log in so I could check out quickly.  My login credentials are stored in a password manager, which filled in the user name and password automatically.  Unlike the other few times I’ve used the site, a box popped up letting me know that my credentials would be shared with Hubspot, a well-known CRM system.  That’s when the fun began.

I suspect it had to do with the use of a third-party cookie, but I couldn’t log in.  I was told my information was incorrect (it wasn’t) and they couldn’t log me in.  Sure, I could have called their phone number (listed right on the cart – props for that) but who knows how long that would take.  I also could have checked out as a guest, but then I needed to find my credit card and type in all the billing and shipping information that was already on file.  In short, they’d created friction in the sales process, and at the very worst moment to boot.  What was worse is that a chat window popped up (more CRM) asking me if I was finding everything I needed?  I responded immediately, explained the situation and was greeted by a reply that stated “Matt” (the name that popped up) would be with me shortly.  At that point “shortly” was too long.

Since I had a coupon for another site that offered the same balls at a lower price and a 15% discount along with free shipping, I ordered from the competition. Sure, I had to type in the information but at least now I was getting a better price.  While I was willing to pay a bit more to do business with a site I knew in a seamless manner, when it became a hassle, thereby lowering the value, price became an issue.  Interestingly, about an hour later I received an email (automated) asking me if I had forgotten something since there were items in my shopping cart.  I responded to the customer service address with a shorter version of what you’re reading.  Maybe I should have charged them for the consulting?

These guys did a lot of things right.  Their site is  helpful and easy to navigate.  The pricing and costs of shipping are clear.  They clearly are using CRM and lots of it.  But they failed at the most important time. Selling is hard but the process isn’t.  Explain how you’re solving the customer’s problem.  Provide them with great value for the cost.  When they agree, take their money, say thank you, and leave them alone. Prevent friction, provide support.  You with me?

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March 18, 2016 · 11:51 am

Focusing On The Protein

It’s Foodie Friday, and since last night was the finale of Top Chef, I thought we might learn a little something about both food and business from the program. Yes, I know I focused on a learning from that show a few weeks back, but not only won’t it be on for another nine months or so (sparing you my fanboy posts), but the thing on which I want to focus was done by both cheftestants, just as the business point occurs in many enterprises.

As part of the final challenge, each chef cooked a meat protein – one cooked rack of lamb; the other cooked duck breast. The responses from the judges in both cases were the same. The flavors were fantastic, the dishes were innovative and complete but the proteins were undercooked. The lamb was nearly raw in the center on most plates, and the duck breast was nicely cooked on the skin side but the other side was underdone as well. It seemed as if the chefs were so focused on the complete dish – the sauces and accompaniments – that they forgot to pay attention to the essential part of the operation – the protein that is the focus of the dish.

We see the same thing in business all the time. A side project detracts from the main business. Resources which are already spread too thin can’t focus on serving customers the basic product because they’re deployed on something that isn’t driving profits at the expense of something that is. We can’t forget to make sure the focus of our business is perfectly served because no matter how nicely everything that surrounds that focal point is offered, those things can’t compensate for a disaster in the main business.

You might think it can’t happen in your business: you’re too experienced and very good at what you do.  So were these chefs – one doesn’t get to the Top Chef finale unless you’re quite good (and these two actually topped two other cooks who are current James Beard Award nominees). Many restaurant critics will tell you that on their initial visit they like to order something very simple – roast chicken, for example – to make sure the kitchen is paying attention to the basics.  Are you?

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March 15, 2016 · 11:59 am

Business Suicide

A clear indication of when it might be time to rethink how you’re running your business is when your own interests overtake those of your customers. I’m pretty sure that while that sort of prioritization makes for short-term gains it’s a losing strategy in the long term. What’s prompted that is a piece I read this morning about programmatic media buying. You can read the piece here and it’s pretty sobering. That said, I suspect many executives could tell similar stories in their fields. 

The piece starts this way:

Programmatic is supposed to bring efficiency to ad buying. But in reality, it’s becoming murky and less reliable for many brands. Most of the time, brands end up paying their agency double and even triple when they collaborate on programmatic.

In other words, what is supposed to be a winning solution for both client and agency turns out to be anything but. I’m very sure that there will be collateral damage on publishers as well. This is what happens when business interests are misaligned. We see this sort of thing all the time. What caused the home mortgage crisis? Lenders putting their profits ahead of the customers to whom they issued loans they knew would be in jeopardy from day one. Why do some drug companies levy outrageous price increases? Shareholder interests before patients’.

One thing of which I remind clients is that as a consultant I have no interests other than theirs. Maybe that’s a lie of sorts since in truth my interest is in making their current customers as happy as possible while expanding that customer base. I think that’s the only way forward to sustained profitability, and it only happens when the business’ interests are perfectly aligned with the customer’s. Anything else is akin to committing business suicide. Do you agree?

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