Tag Archives: Business model

The Maine Event

You may or may not know that in addition to your phone or your web browser tracking your every move that your Internet Service Provider (ISP) does as well. Naturally, they use the data themselves to sell ads or they sell it to others who do so on their behalf.

Last June, the good legislators of Maine passed a bill that prohibits the practice. It’s not revolutionary. Until the current administration took office in 2017, there were Federal regulations that prohibited it as well. To make up for this, in June 2019, Maine Governor Janet Mills signed a law designed to prevent ISPs from “the use, sale, or distribution of a customer’s personal information by internet providers without the express consent of the customer.” The law had bipartisan support and passed the state senate unanimously.

I’ll let MediaPost take it from here:

Broadband carriers are suing to block a Maine privacy bill that requires Internet service providers to obtain consumers’ opt-in consent before drawing on their web activity for ad targeting.

“Protecting customer privacy is a laudable objective that ISPs support,” the major broadband industry organizations write in a complaint filed Friday in U.S. District Court in Maine. “But Maine has not shown — through evidence in the legislative record — that ISPs’ privacy practices are causing any harm whatsoever to consumers.”

Here is where I come out on this and it’s something that might just apply to your business as well. First, privacy is going to become THE issue over the next couple of years as more people become aware of just how ubiquitous tracking is in their lives. There was a frightening report in the Times a couple of weeks ago that detailed just how much information was being collected. Does it seem unreasonable that some folks would like to take back a modicum of control? WE need to respect people’s wishes, or at least make a cogent argument about why they should let us have their data in return for the services we’re providing. I’d gladly give my ISP data if they’d cut the price of my internet service in half. But at least ask me for permission to track me and make me aware of what you’re collecting and why.

Second, ISP’s make an insane amount of money selling broadband access. Don’t buy their stuff about how much they invest in infrastructure – it’s trivial. Do they really need to sell ads on top of this? I’m a capitalist but I’m also a customer-advocate. Know when to say when people. When you’re already drunk on cash from your basic business, maybe it’s time to step away from the bar when you’re starting to treat your customers as a commodity.

When you’re suing to overturn this law, you’re suing your customers, plain and simple. Do any of you believe that having all of your personal data out there for anyone to purchase and use (and it’s out there) isn’t causing harm as the ISP’s allege? It’s a similar situation to the growth of ad blockers – the limit of consumers’ tolerance was hit and suddenly they revolted. This might be a good time to buy stock in VPN companies and the ones that still make dumb phones – text only, minimal tracking. We’ll see, won’t we? But I know for sure that suing and otherwise abusing your customers is a bad idea for any of us.

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Filed under Consulting, digital media, Huh?

Tasks And Experiences

Happy Foodie Friday! This article came into my news feed this morning. It’s about Walmart’s store of the future, where robots can fill grocery orders up to 10 times faster than humans. Pretty spiffy and it’s an interesting read, but it also got me thinking about a pretty important distinction about which I think you may want to ruminate.

When I go to the grocery store (every Thursday!), I have a list of things I want to buy. Most of the things on that list are there because I’ve planned out meals for the week and I need things to make those meals possible. It’s a pretty straightforward task. Other things are on the list because I use them in general and they’re on sale. Maybe I have a coupon that for them that is expiring. Maybe they’re on sale AND I have a coupon (can you feel the excitement?). Again, it’s pretty cut and dry – here’s the thing on the list, buy it and bring it home.

That’s really only half the trip, however. Inevitably, I find things to buy that aren’t on the list. I’ve found them as part of the shopping experience. Maybe it’s an unadvertised sale, maybe some local produce came in and looks spectacular. This is experience-oriented shopping versus the aforementioned task-oriented shopping.

Back to the article. It’s lovely that Walmart (and Amazon and others) are extremely efficient in servicing these orders, but they’re only serving the task-oriented shoppers. In-store discovery is impossible when there is no in-store experience. That’s why you always see “people who bought (the thing you’re buying) also bought (another thing).’ I think it’s also why Amazon is moving into physical stores, both through Whole Foods and their own “register-less” stores. Obviously, serving the task-oriented shopper is only half the battle.

I think it’s the same in other businesses.  Almost every business interacts with customers, partners, vendors, and employees in a task-oriented framework. When you stop and think about it, good businesses make sure there is an experience-oriented aspect to the relationship as well. What I mean is an experience that the participants can enjoy for its own sake and not as a means for accomplishing a task or achieving an extrinsic goal. Maybe it’s just drinks after work with no agenda. Maybe it’s a round of golf. All of my best business relationships had both task-oriented and experience-oriented aspects.

Think about how you interact with your customers. Is everything a task where items get ticked off a list or is there an experience that’s part of the relationship? How can you bring that balance?

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Filed under food, Thinking Aloud

I’m Sick Of Scammers

Another year, another scammer surfaces. I’ve written many times in this space about marketers who try to take advantage of people’s limited attention spans and fear of all things “official”. The mail delivered another example of one to my doorstep the other day and I want to tell you about them. Admittedly, part of this is venting but another part is a very real concern that many marketers have lowered their standards to a point where they’ll do just about anything to drive business. It’s even worse when the business itself is a scam.

North Carolina, like many states, requires that all businesses file an annual report with the Secretary Of State. If you’ve never done that, it’s a very easy process that can be completed online in about 3 minutes. I had to do the same thing when my LLC was registered in Connecticut and the process was equally easy. You check a few boxes and pay the fee. Easy peasy.

In the mail the other day was an official-looking document – 2020 Annual Report Instructions Form.  The blanks in the form were already pre-populated with my LLC’s information. It also contained the language from the general statutes about having to file an annual report. I thought it was something the state had sent until I gave it more than a cursory look.

In a different typeface was a sentence that said this was being sent by a third-party who would file my report for me. Just send along the $292 fee and that would be that. Of course, the filing fee is only $202 – the other $90 was what this company was scamming me for. The grift IS the business – there is very little, if any, work involved otherwise.

My first thought when I saw the form was, oh, I’ll do this online, as I do pretty much everything. My next thought was “wait, this isn’t the state, this is a scam.” The thought after that was “some percentage of business owners are going to fall for this.” It has all the right information and it’s very official-looking. Of course, anyone can get that information on the state’s website and matching the state’s form and typeface isn’t exactly rocket science.

I admit there are a couple of disclaimers that the company is not affiliated with the state but why should anyone have to read very carefully to avoid being taken advantage of? Are they providing a service? I suppose so, but why not offer the service in a clear manner instead of trying to obfuscate that you’re charging $90 to save someone a few minutes’ work?

If you market a product or service, the road to profitability isn’t made easier by misleading or scamming your customers. Let’s not do that. Even better, let’s shine some sunlight on those scammers who do.

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Filed under Huh?, Thinking Aloud