Tag Archives: business thinking

May 20, 2015 · 11:49 am

One Thing You Can Do Right Now For Your Customers

Attention business people! We have a problem. OK, many of us have more than one, but the one to which I refer is pretty important so listen up. In short, our customers don’t trust us. Think I’m kidding?

The latest Pew study is out and as the release about it said:

In the almost two years that have passed since the initial Snowden (former National Security Agency contractor Edward Snowden) revelations, the public has been awash in news stories detailing security breaches at major retailers, health insurance companies and financial institutions. These events and the doubts they have inspired have contributed to a cloud of personal “data insecurity” that now looms over many Americans’ daily decisions and activities. Many find these developments deeply troubling and want limits put in place, while some do not feel these issues affect them personally.

Some may not feel that but the vast majority do. Most folks believe it is important that they be able to maintain privacy and confidentiality in commonplace activities of their lives. Most strikingly, these views are especially pronounced when it comes to knowing what information about them is being collected and who is doing the collecting.  Compare that belief with the data:

  • 76% of adults say they are “not too confident” or “not at all confident” that records of their activity maintained by the online advertisers who place ads on the websites they visit will remain private and secure.
  • 69% of adults say they are not confident that records of their activity maintained by the social media sites they use will remain private and secure.
  • 66% of adults say they are not confident that records of their activity maintained by search engine providers will remain private and secure.
  • 66% say they are not confident that records of their activity collected by the online video sites they use will remain private and secure.

So what can you do right now to help?  Be transparent about what you’re collecting and why.  Don’t bury that information in your Terms of Service.  Explain who has access to the data, how it is shared (or not) with business partners, how long it’s retained, and offer to present the user with a copy of everything you have.  Most importantly, to the extent you can, allow the customers to opt-in and explain why that’s a good thing for them.  Turns out it just might be a good thing for your business too.

Do you do business with people you don’t trust?  Why should your customers?

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May 19, 2015 · 11:06 am

Broken Strings And Business

I would be remiss if I didn’t mention the passing of B.B. King. While I have been to hundreds of concerts in my life, at one point I had seen B.B. King more than anyone (yes, even Springsteen although that’s no longer true). He has been rightfully honored over the last few days by every guitar legend – Eric Clapton being the most prominent – as having been a huge influence on their music. When he wrapped his fingers around Lucille, his guitar, he could say more in three notes than most guitarists can say in an hour.

English: King performing at the Fox Theater in...

(Photo credit: Wikipedia)

Of the dozens of times I saw him, one night in particular stands out and as it turns out there is a business point to be made as well. B.B.’s shows always began with the band playing a number or two and then the master would hit the stage. This particular night he played his first song and began his second when a string broke on Lucille.  It would have been incredibly easy for him to have signaled the band to stop because it was very apparent that a string had snapped.  Instead, as he continued to sing the lyrics, his right hand reached into his jacket pocket and out came a few strings.  Singing all the while, he proceeded to change the string, tune it as he played, and finished the song without missing a beat.  The audience stood as one when he finished, not because the song was a show highlight but because of the master class we had just seen.

The business point is one that I think we all know.  Strings break in all of our businesses from time to time.  The customers don’t really care even when they’re aware that something is amiss.  The broken string is your problem, not the customer’s.  How prepared are you?  Can you go about your business of providing an uninterrupted product or service of the expected quality or do you stop the band and make the customers wait?  B.B. King didn’t play a different guitar every other song.  He stuck with Lucille, so waving a roadie out to swap instruments wasn’t an option (and I could go on here about loyalty and consistency but you’re already there).  He probably had those strings in his jacket every show and rarely needed them (this was the only time I ever saw them come out in dozens of shows).  Do you have strings in your pocket or are you looking for a roadie to bail you out?

I’m sad The King Of The Blues is gone but thankful for all the joy he gave me and the inspiration he provided to many of the others whose music I love.  I’m also appreciative of his professionalism and have learned a little from his broken string.  You?

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May 8, 2015 · 10:03 am

Coffee, Burned

Foodie Friday has come around again and this week it brings us coffee. The folks at Keurig manufacture coffee makers and the pods that hold the coffee itself. They had an earnings call the other day and it brought out some very valuable lessons for all of us. Keurig’s financial results were not good and their stock has been hammered subsequent to the announcement. That’s not so instructive but the reasons why certainly are.

You might have one of these machines. If you do, you’re aware that the pods are both very expensive and not particularly earth-friendly. As what I consider to be a consumer-friendly nod to that, Keurig also makes a little reusable pod that you can fill with your favorite coffee. It’s less expensive, I find it makes better coffee, and the coffee grounds are the only trash. Of course if you want to go the single use pod route, there are lots of sources for them other than the “official” Keurig partners.

Keurig introduced its new flagship machine recently and there were some changes. First, the machine would only accept “official” Keurig pods – sort of Coffee Rights Management. The interwebs quickly figured out how to bypass this but the fact that it was deployed at all demonstrated Keurig’s thinking. Next, the reusable pod doesn’t fit in the new machine nor has Keurig made one. You MUST buy disposable pods.

Why would Keurig do this? Simple – the profit margin on the pods is huge. The results? Sales of coffee machines and accessories are down 23% in the last year and Keurig was forced to lower its 2015 sales forecast. Oops.

Of course, it’s not Keurig’s fault, at least not in their minds. “Some of this was due to consumer confusion around pod compatibility.” That’s the CEO on the earnings call.  OK, we’re dumb, but at least you admit you were too:

…we took the My K-cup away and quite honestly we’re wrong. We missed, we didn’t – we underestimated, it’s the easiest way to say, we underestimated the passion that consumer had for this. And when we did it, and we realized it, we’re bringing it back because it was we missed it.

The lessons are pretty apparent.  Don’t build your business around a plan that conflicts with your customers.  If they like a product, make it better or less expensive, or both.  Don’t take it away because you think it might improve your profits.  When something you’ve done isn’t accepted or working the way you planned, alluding to “consumer confusion” without admitting you caused it is narcissistic.  Frankly, for many people I know their morning K-Cup is not consumed with a desire for great coffee – it’s fast, it’s convenient, and they get over their guilt about polluting by the time they race out the door.  Getting those people angry by taking away choice in what they put into the machine isn’t growing the business – quite the opposite.

No business can overcome crappy product reviews (the new machine failed miserably) and consumer resentment over less choice.  Keurig’s results demonstrate that very well.  Any questions?

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