Archive for December, 2013

More About Brains Than Bucks!

Andy Sernovitz’s holiday newsletter speaks to customer service, something that may be the secret sauce to achieving and holding a competitive edge.. These three examples are about e-commerce, but they exemplify a mindset applicable to any business:

From Andy Sernovitz’s Damn I Wish I’d Thought of That – Unusually Useful Ideas for Smart marketers 12.26.13

1. Help them make room

IKEA knows that one of the biggest reasons people don’t buy new furniture is the hassle of getting rid of their old furniture. So the company offered to sell it for them. For their Second Hand campaign, IKEA featured their customers’ actual names, numbers, and old furniture in their ads. Then, they opened their Facebook page for other customers to sell their stuff online in a “virtual flea market” on Sundays.

The lesson: That’s doing much more than just making room for a new couch — it’s creating an amazing customer service story for everyone who sells something through IKEA.

2. Help them make a decision

It’s a pain to exchange a treadmill. So when you buy one, you want to make sure it’s exactly what you want. At Fitness in Motion in Austin, they don’t think the couple minutes you typically spend testing out a machine at other stores is enough to help you make a decision. So they tell potential customers to use their store like a gym: Come by whenever, do their normal workout, and find the machine that works for them before they buy it.

The lesson: This helps customers feel better about their purchase. But more importantly, it gives Fitness in Motion a chance to build relationships and trust with the customers coming in day after day.

3. Help give them peace of mind

If you’ve ever bought a prom dress (disclosure: I’ve bought zero), you know that showing up to prom with the same dress as someone else is a big fear. At some formal wear shops, they help girls avoid this high school nightmare by asking each customer which event they’re wearing the dress to and checking their database for repeats. That way, their customers can be much more confident about pulling the trigger and buying the dress.

The lesson: You already keep a lot of data about your customers for market research, product development, and ordering — why not use it to help them too?

More About Brains Than Bucks

By Eleanor Haas

Customer service may well be the secret sauce to a sustainable competitive edge, and Andy Sernovitz gives great examples in his 12.26.13 newsletter “I Wish I’d Thought of That.” My three favorites are about e-commerce but the strategy and mindset behind them can be applied to any business.

1. Help them make room

IKEA knows that one of the biggest reasons people don’t buy new furniture is the hassle of getting rid of their old furniture. So the company offered to sell it for them. For their Second Hand campaign, IKEA featured their customers’ actual names, numbers, and old furniture in their ads. Then, they opened their Facebook page for other customers to sell their stuff online in a “virtual flea market” on Sundays.

The lesson: That’s doing much more than just making room for a new couch — it’s creating an amazing customer service story for everyone who sells something through IKEA.

2. Help them make a decision

It’s a pain to exchange a treadmill. So when you buy one, you want to make sure it’s exactly what you want. At Fitness in Motion in Austin, they don’t think the couple minutes you typically spend testing out a machine at other stores is enough to help you make a decision. So they tell potential customers to use their store like a gym: Come by whenever, do their normal workout, and find the machine that works for them before they buy it.

The lesson: This helps customers feel better about their purchase. But more importantly, it gives Fitness in Motion a chance to build relationships and trust with the customers coming in day after day.

3. Help give them peace of mind

If you’ve ever bought a prom dress (disclosure: I’ve bought zero), you know that showing up to prom with the same dress as someone else is a big fear. At some formal wear shops, they help girls avoid this high school nightmare by asking each customer which event they’re wearing the dress to and checking their database for repeats. That way, their customers can be much more confident about pulling the trigger and buying the dress.

The lesson: You already keep a lot of data about your customers for market research, product development, and ordering — why not use it to help them too?

How Fred Wilson Sees the Next Ten Years

By Eleanor Haas

Just yesterday, at the LeWeb conference in Paris, VC, blogger and thought leader Fred Wilson identified three megatrends that his VC firm uses as a framework for investing and four areas they’re watching. Things like mobile and big data are technologies that represent too small a lens when it comes to envisioning the big opportunities to come, he said. For him and his colleagues, it’s about adopting a behavioral and societal point of view.
The three trends are networks, unbundling and smartphones, and the four areas are Bitcoin, wellness, data leakage and trust/identity.

1. Networks
We’re very early in the transition from slow bureaucratic hierarchies to technology-driven networks. The hierarchies were solutions of the industrial world, but today they’re obsolete – just plain inefficient. Examples? Twitter replaces the slow-moving bureaucratic news organization that sits behind every newspaper. With Twitter, the crowd determines what’s news, and we get it instantly. YouTube replaces traditional video production. Again, the crowd determines what’s important – and quality rises to the top. SoundCloud disintermediates the music industry by enabling music creators to upload, record, promote and share their sounds to be found by the crowd.
We saw this happen first in media and entertainment, but now it’s happening with hotels (Airbnb), creative services (Kickstarter) and learning (Codecademy).

2. Unbundling.
Cost factors made it desirable to package and deliver products and services in bundles. Now technology makes it cost-effective to deliver focused services a la carte. Examples? Getting sports news from a different source than business news or classified ads. Finding free-standing services once bundled by banks – Lending Club and Funding Circle – asset management, education – where online classes are disrupting the traditional four-year university model – research – where technology enables researchers to collaborate freely as a network – and entertainment – where Netflix, YouTube, Hulu and VHX let us buy shows a la carte instead of having to subscribe to cable.

3. Smartphones
By carrying smartphone, we become always-on nodes in a network. Examples? Uber and Halo are disrupting taxi and limo services, rental cars and delivery businesses. Payment platforms, such as Venmo, Dwalla and Square are phone apps. Tinder is a dating app that leverages location as well as the phone.

Four Areas to Watch

Bitcoin, says Fred, is important as the transactional protocol for the Internet, not as currency. It provides a global peer-to-peer ledger and a technology-based architecture that entrepreneurs can and will build on so that payments, in time, will flow on the Internet like content and images, not controlled by any company.

Health and wellness platforms and tools, not healthcare, will be increasingly important ways to help people avoid the need for healthcare. Examples? Wearing devices that report physical activity and vital signs, a phone device that provides fertility information for women, gamified weight loss initiatives.

Data leakage is Fred’s term for how we allow our own personal data to be open for spying by Google, Facebook and the government while we ourselves have no control over it.

Trust/identity, both of which are closely allied to the data leakage area are currently managed by Google, Facebook, Amazon, Twitter. We give them access to all that we do online. In time, he predicts, there will be a protocol, just like http, that allows us to control our identity, trust and data.

So what areas are you watching? What mega trends seem to you to be significant indicators of what lies ahead?
(You can see the video of Fred’s keynote here. http://bit.ly/1cByjEg )