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Business

Your Customers Are Not Morons

by Daria Steigman on January 31, 2012

Customer Service, Empowered Customers are not ClownsThis should be obvious, right?

[Insert BIG SIGH here.]

There’s a lot of talk these days about “empowered consumers” and what this means for companies. It’s an issue for  pricing and sales, and for what consumers want and expect from the brands we interact with.

We have more information than ever a mouse click, search term, or social scroll away.

There’s a big gap between the empowered consumer and many sales and customer service teams.

Case in point. I was shopping around the other day for information on Internet service providers. Mine has been very reliable–but the price has gone up astronomically. So here’s how the conversations went.

1. Existing provider said they felt my pain. Customer service agent put me on hold for a couple of minutes while he (maybe) went off to see if he could give me a different service or a better price point on this one. Came back and spouted a company line about having only one speed of service and that I was paying the standard rate for that. I told him I was going to cancel. Said he would be sorry to see me go.

The rate I was paying was $7 over the highest rate listed on the company’s Web site. The base rate was 40% lower than what I was paying.

2. Prospective company’s sales guy wants to know what I’m paying now. Not relevant, I reply, I want to know what options you offer. Sales guy asked what provider I have now. (Nice try, same answer.) Then he starts talking about bundled new services–which I say is not what I’m asking about either. Finally, he quotes me a price.

The price he quotes me is 25% higher than the rate listed on the company’s Web site. And it’s for completely unbundled service–and I already have one service through this company.

They must think we’re morons.

Clearly, companies have a long way to go in understanding how the Internet–let alone social platforms–impacts the business/customer relationship.

Photo by macinate (Flickr).

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Are You Embracing Risk?

by Daria Steigman on January 23, 2012

Why Mistakes Are Good, Business, Entrepreneurship, Independent ThinkingI had a conversation with my mom recently about an apparel retailer that is going out of business. She had attributed their fate to a declining economy. My own take: the clothing was staid–and there’s a limited market for boring. The company never took a risk. It didn’t try to refresh, modernize, reinvent for changing styles.

Successful businesses don’t sit still.

There’s a reason abandon is one of my 3 words for 2012.

There’s a terrific piece on Inc.com about taking risks and making mistakes. Author Paul Schoemaker points out:

If you have ever flown in an airplane, used electricity from a nuclear power plant, or taken an antibiotic, you have benefited from someone’s brilliant mistake. Each of these life-changing innovations was the result of many missteps and an occasional insight that turned a mistake into a surprising portal of discovery.

His point: you have to take risks, and test things, and be willing to fail (i.e., make a mistake). It’s a short article and well worth the read.

Photo by Brett Jordan (Flickr).

 

 

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3 Strategies to Excel in a Tough Market

by Daria Steigman on January 12, 2012

Business strategy is a balancing act. Are you a pioneer, a pouncer, or a hedger?How do you manage uncertainty when, by definition, it involves wrestling with stuff that’s difficult–and sometimes impossible–to predict?

It all starts with understanding (and then leveraging) your competitive advantages, says Keith Bickel, author of Mastering Uncertainty. The book posits three different business models to optimize your competitive edge.

Are you a pioneer, a pouncer, or a hedger?

Read about the three strategies in my book review.

Photo by Steve Snodgrass (Flickr).

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“Just Because” is a Stupid Way to Run a Business

by Daria Steigman on January 10, 2012

Mix Matched Socks are a Brand StatementIt’s a new year, but are you still doing the “same old, same old?”

I wrote recently about knowing when to fold–giving up a product or a service or even a business development strategy that’s run its course. But there’s another thing business owners need to consider: what might be working, but doesn’t make sense.

This can show up in the people you engage with and the processes you follow. For example:

  • Are you loyal to an accountant, a lawyer, or even an insurance agent who does an okay job year after year rather than making the switch to someone who will really shine? (For the record, I have an awesome accountant if you need one.)
  • Do you keep using that cumbersome e-mail marketing system or time-management software rather than switching to something faster and more user-friendly?
  • Are you still faxing documents because you don’t have an electronic signature on file? (Oops, that’s me.)

Make every business action a conscious choice (not “just because”).

A case in point: My condominium association raises the parking fee by $5 every other year. But no one knows why they’re doing it. It’s just what they do. What they’ve done. You know why they’re doing it? Because over 10 years ago when I was condo board president I said I thought it was ridiculous to nickel and dime people with $2 and $3 raises. Somehow that translated into the current “policy.”

It’s a good practice to evaluate your business processes and policies from time to time. Now I’m off to find a scanner.

Photo by Evelyn Giggles (Flickr).

Have you signed up to receive the Independent Thinking newsletter? Now’s the time! Once a month I’ll send you exclusive, subscriber-only content highlighting interesting articles I’ve found, as well as tips on marketing, social media, and how to grow your business. Sign up today!

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Why I’m Not an NFL Owner

by Daria Steigman on January 5, 2012

Green Bay Packers, Business, Sports, and Reading the Fine PrintYou might have read that the Green Bay Packers are selling ownership shares. Which means that, for $250, you can own a share of the franchise. You can’t sell you share (or shares) and it won’t increase in value–but it makes you an owner of the NFL-Super-Bowl-winning franchise that was once coached by Vince Lombardi.

It would look really cool on my LinkedIn profile. But I’m not going to be an NFL owner.

$250 is real money. It maybe buys my next smartphone. It definitely buys lots of pints of beer at the ballpark this spring. But that’s not the problem.

The fine print is.

Ownership has its privileges. And its price.

Page 5 of the Common Stock Offering Document has a clause entitled NFL Rules that reads, in part:

The NFL Rules prohibit conduct by shareholders of NFL member clubs that is detrimental to the NFL, including, among other things… publicly criticizing any NFL member club or its management, employees, or coaches or any football official employed by the NFL.

Which means that, as an owner, I could be fined by the commissioner and/or required to sell my stock back to the organization–for $0.025 per share. (Come to think about it, that’s better than zero. But I digress.) Which means I couldn’t opine about whether Dan Snyder is the worst sports franchise owner since Marge Schott. And I couldn’t tweet that even a 2-year-old has more discipline than the Oakland Raiders. Not to mention that “what’s up with [insert name of player here]” would be off limits.

There’s a point here. And it’s not about American football.

It’s about reading the fine print.

Fining fan-owners of the only public NFL team would be a public relations nightmare. It’s not going to happen (unless someone really provokes it, or behaves in “conduct unbecoming” that defies public mores). But the business reality is that buying into this deal requires limits on your free speech. Not illegal limits–it’s not a 1st amendment issue. But limits nonetheless.

Business is about choices and trade-offs. Before you make your next deal, make sure you understand both.

Photo by Jeramey Jannene (Flickr).

Have you signed up to receive the Independent Thinking newsletter? Now’s the time! Once a month I’ll send you exclusive, subscriber-only content highlighting interesting articles I’ve found, as well as tips on marketing, social media, and how to grow your business. Sign up today!

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