Tag Archives: Business and Economy

May 4, 2015 · 11:35 am

Misleading Marketing

Sometimes it’s just too easy to point out corporate stupidity and today I’m taking that easy road. You might be aware that the FTC is suing AT&T for allegedly misleading consumers by offering them “unlimited” data plans, and cutting back their data speed when they exceeded a maximum monthly allotment of data usage. AT&T doesn’t deny doing it, which is smart since there is ample evidence to support the accusation. Nope. Instead, they’ve told the FTC that their hands are clean since customers should have known they were going to be throttled if they used too much data.

I’m not all that knowledgable about network congestion management.  I do know that all ISPs (and a wireless carrier is one of those although you might not think of them that way) use “traffic shaping” to manage the load on their system.  Generally that’s something that’s imposed on a short-term basis to manage load.  So while there may be a heavy demand for bandwidth during primetime evening hours, traffic is much lighter in the middle of the night, for example.  Wireless carriers (except for Sprint) all impose limits on the bandwidth a user can have.  In my mind it’s a false scarcity since most people don’t come close to using all the bandwidth in their plans.  Even with the explosion of mobile video usage, no one is claiming that our wireless infrastructure is near its limit.  But let’s put aside the alleged technical issue and focus on the real point.

You can’t sell something as “unlimited” and then place limits on it.  Selling someone an unlimited high-speed data plan which becomes very low-speed after a certain, unstated point is misleading at best and fraudulent at worst.  The  fact that customers continue to renew their contracts isn’t an indicator that they don’t mind being deceived; it’s more of an indication about how little choice we all have.

This quote, taken from a MediaPost article on the subject is what I find particularly galling:

AT&T adds that consumers with unlimited data plans signed up for those contracts even though they “had reason to anticipate the possibility” that they would be throttled.

I don’t know how someone at AT&T wrote that with a straight face.  Really?  When you said “unlimited” a customer with zero technical training about network management should have anticipated that once they crossed some boundary known only to you they would suffer a service degradation?

Any of us in business need to run our businesses in accordance with the business model we develop to maintain profitability. If AT&T’s engineers tell them that throttling is necessary, so be it.  The point is that we need to let our customers know what they’re buying – honestly, transparently, and actively.  Lying isn’t a marketing plan – it’s just stupid.  Right?

Leave a comment

Filed under Huh?

Tagged as , , , , ,

May 1, 2015 · 10:05 am

Cooking For Customers

This Foodie Friday I want to write about something I picked up during Gordon Ramsay‘s AMA session on Reddit this week.  You can read the entire transcript here and for those of you who only think of Chef Ramsay as the screaming maniac  on Hell’s Kitchen it’s worth the read.  One of the questions concerned his views of the Michelin Guide, the oldest international hotel and restaurant reference guide, which awards Michelin stars for excellence to a select few establishments.  Chef Ramsay’s restaurants have won many Michelin stars and his restaurant, Restaurant Gordon Ramsay, gained its third Michelin star in 2001, making Ramsay the first Scot to achieve that feat.

Ramsay at BBC Gardeners' World Live 2008

(Photo credit: Wikipedia)

These stars can make or break a business, and unlike reviews on Yelp or elsewhere they are given by a carefully trained team of reviewers after multiple visits.  Given his track record on winning them, one might think that Ramsay had figured out how the system works and cooks to win the stars that propel his business.  Not so much:

So the stars are awarded to the restaurant. And sometimes the chefs think the stars belong to the chefs, but they belong to the restaurant. The service is just as important. Michelin’s had a hard time in America, because it was late coming to the table. But if there’s one thing I respect, it’s consistency. They manage to identify consistently, and it’s all there for the customer. So when people ask me “What do you think of Michelin?” I don’t cook for the guide, I cook for customers.

That is good guidance whether your business involves a kitchen or not. First, there is a recognition that his business – and yours! – are taken as a whole and reflect the strengths and weaknesses of the team.  The front of house service is just as important as the food.  Your customer service is just as important as the quality of your product or professional service.  Second, his focus is not on catering to the reviewers.  It is squarely where it belongs – on his customers.

Each of us can ask if were cooking for reviewers – our bosses, our board, our stockholders – rather than our customers.  We need to think of the business as a team effort and not as some reflection of our own worth.  The statement, above, is a great reminder of that to me.  You?

Leave a comment

Filed under food, Helpful Hints

Tagged as , , , , , ,

April 29, 2015 · 11:58 am

Rivers

I have rivers on my mind today.  Maybe it’s because I spent a lot of time over the last couple of days talking about streams of information and of video.  The nature of media these days is that we’re on a mostly self-directed rafting trip immersed in these streams.  Except that they’re really rivers since “streams” speaks to something much smaller than the torrents of content with which we deal every day.

Coincidentally, I came across something in the Phi Beta Kappa blog that resonated on both the nature of our content world and our business world:

It was the ancient Greek philosopher Heraclitus who said that you can’t step into the same river twice, giving us a memorable illustration of the principle that things change. The very nature of things is change.

Amen.  I’m not the only one to have written about FOMO – the fear of missing out on something changing in your social or other streams because it happened while you weren’t paying attention.  There are lots of tools available to assure that doesn’t happen by sending you alerts when a significant person posts or an important bit of data comes to pass.  Nevertheless, I’m sure many of us feel a need to dip our toe in the river constantly, both to stay in touch as well as to take the temperature.

It’s more the change that occurs in business which is my focus.  I laugh when people talk about five-year plans.  Where were your video marketing plans back in 2010?  How about mobile?  Is what you’re doing today what you contemplated then?  I doubt it.  That’s not a complaint; it’s a recognition that the river keeps flowing and the water you photographed when you did your strategic plan is long gone by the time you’re ready to implement it.

Keep the notion of a river in mind as you approach business.  While it runs within the same banks it’s never exactly the same.  You need to embrace that flow and learn how to swim with a changing current.  There is a reason that so many songs and literary works deal with rivers as central to a community and to life.  How you deal with it is the difference between a wonderfully exciting ride or drowning.  Your call!

Leave a comment

Filed under Thinking Aloud

Tagged as , , , ,