Tag Archives: Customer service

Not Delivering At All

If it’s Friday, the topic is food here on the screed. This week, it’s the food delivery services I suspect many of you have been using to support your favorite restaurants during the time we’re supposed to stay at home. Food delivery is not a new phenomenon. I know a lot of folks, myself included, who used it before all of this when they had nothing planned or bought for dinner and couldn’t bear the thought of pulling themselves together to go out.

What’s different with these services is that they’re third parties. One of my first jobs back in the day was as a food delivery guy (before I graduated to cook) for a local pizza place. Who hasn’t ordered Chinese food and had it delivered? But I worked for the pizza place and the kid making the Chinese food delivery was generally the owner’s son from the place I frequented. These services – Grubhub, Seamless, and others – are a relatively new business. For restaurants that didn’t do a large enough takeout business to hire a delivery person, they opened up new revenue streams. Of course, they come with a cost.

First, there is a human cost. These services pay very low wages and don’t make tipping mandatory (don’t be that guy – tip well, ok?). Then they charge exorbitant, often hidden fees to the restaurants. You might have read about one restaurant owner’s experience. In March, she got 93 orders through Grubhub, totaling to $6,626 in revenue. From that, GrubHub took $1,208 in commission, a $592 delivery fee, and $230 in processing fees, totaling to over 30% of the revenue. In an industry where margins are often low double digits, that’s not sustainable.

We could continue the discussion beginning with why restaurants don’t hire their own delivery people but the point I want to make today which might just apply to your business is about using third parties, especially third parties who end up owning the customer relationship. What is to stop Grubhub from promoting another restaurant to someone who is looking at your menu? Do a search on Yelp for a specific restaurant and you’ll usually see a couple of other promoted alternatives first in the listings. I don’t know what data the restaurant sees when an order comes in via one of these services but at a minimum someone else is privy to a portion of your customer base, their preferences, addresses, etc.

You might have heard of third-party cookies. Third-party cookies are created by domains other than the one you are visiting directly, hence the name third-party. They are used for cross-site tracking, retargeting, and ad-serving. They’re what makes it possible for you to see an Amazon ad for a product you just searched Amazon for on another, unrelated website. They’re going away, in part because of privacy concerns and, I believe, in part because marketers are waking up to the fact that having someone else own data that you help to generate so that they can sell it back to you as well as to your competition is silly.

Industries outsource all the time. Generally, this is because they don’t want to deal with solving a particular problem themselves for whatever reason and it becomes easier to let someone else deal with it. That’s often shortsighted, particularly when it ends up with someone else owning the customer relationship. After all, in business, that’s probably the most important relationship you have, right?

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Filed under food, Huh?

Vividly Dumb

Last week I wrote about my feeling that companies should quit selling as we all deal with the fallout from the Corona Virus. This morning I received an email from Vivid Seats, a ticket reseller. They apparently purchased another reseller from which I’d bought tickets. Here is part of the text:

As a welcome to Vivid Seats, we are giving you $30 off your next purchase!* Grab tickets to your next heart-racing concert or edge-of-your-seat game. Either way, here’s $30 to get you started — let’s get you cheering again!

Notice the asterisk. The offer expires next Tuesday. So where to begin?

First, can any of you say with any certainty when, or if, concerts, shows, or sporting events will resume? Why in the world would you go out and buy tickets to anything at this point? Vivid has a full refund policy if the show or event is canceled, but with this much uncertainty, are you seriously going to lock up your money until that happens? And what if the date changes and you can’t go? Of course, they’ll help you sell your seats, but is that without the 10% fee normally charged to sell? That’s not stated anywhere.

Second, it’s highly unlikely the situation will have changed a heck of a lot by next Tuesday. If you really want my business, why not make it open-ended?

Third, how freaking tone-deaf. We’re all being urged to stay home. Tours are being canceled. I’ve already had two shows for which I have tickets postponed and I’ve got more shows coming up in May that I’m thinking won’t happen. This is a reminder that our lives are different now. Hopefully, not for long, but there are no sports or shows or concerts happening. Why rub it in?

Ok, I believe in giving people hope and this WILL end. That said, it has just as much a chance to crush spirits if the events don’t happen and you bought tickets. This is why these different times call for different approaches, don’t you think?

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Filed under Consulting, Huh?, What's Going On

Quit Selling

What the heck do you do when everything changes in a couple of weeks? I fell behind reading my daily newspapers and as I was catching up it dawned on me that nearly everything I was reading related to a world that really didn’t exist a week later. The sports sections were previewing games and events that will never take place. Forget the numbers and analysis on the financial pages. Even the front pages dealt with topics that now seem so unimportant.

People can’t travel. You can’t really go out to eat or hang out with friends. Who could ever have imagined that the bars would be closed on St. Patrick’s Day as they were here and in many other places. Those are just a few examples of the devastating impact this pandemic has caused and the businesses that can survive this will be badly damaged. Many others won’t survive at all.

So If you’re a businessperson what can you do? May I offer a radical thought?

Quit selling. I’ve received many emails from companies that are behaving as if nothing is different. They’ve not changed their tactics or messaging at all. Others have done even worse by trying to capitalize on this global tragedy. Not only do I find these messages offensive but I’m making mental notes never to buy from those businesses again.

Everyone is suffering losses of some sort. Some folks are out of work completely with no income at all. Others are trying to work from home while schooling or at least amusing their kids. My parents who are in an assisted living facility can’t leave their room. Meals are sent up and there is no socialization. I think it’s the right course of action but I feel horrible for them and the other residents. People have had to cancel vacations and weddings. Others can’t attend funerals of loved ones. Everything has changed.

So quit selling. Recognize that now isn’t the time. If you give any sort of credence to the notion that you need to love your customers, love them now by asking how you can be helpful. Ask what you can do for them and not what you can sell them. There will be plenty of time for that when things return to whatever normal will become.

Maybe it’s a radical thought but these are times that call for radical thinking, don’t you think?

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Filed under Consulting, Reality checks, Thinking Aloud, What's Going On