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Archive for November, 2008

When can an iPhone app be bad for business?

By Drew Feldman on Friday, November 14th, 2008

A couple months ago, I discovered the joy of LOLcats.  The buzz generated by the LOLcats brand of humor is a case study on the power of the internet.  The best way to attempt to explain it is that Lolcats is the internet version of an inside joke, a really really cute inside joke.  You just need to see it for yourself.  But I digress.

LOLcats

I have subscribed to 5 different mailing lists offered under the “I Can Has Cheezburger” brand, including “Engrish Funny,” “ROFLrazzi,” “FAIL Blog,” “Loldogs,” and “Lolcats.”  This means that every day, I recieve emails containing hilarious captioned pictures and links directing me to the website for more silliness.  The business model behind these emails is simple: Click the link, comment on the picture, and spend time on the main website … which enables the website to charge higher advertising fees justified through higher traffic.

In the interactive field, iPhone apps are a constant topic of discussion.  And, of course, we are supposed to be defining the potential applications of emerging technologies.  But at what point does “being on the edge of cool” stop justifying new ventures that don’t seem to contribute to the bottom line?  This is where Lolcats comes in.

My daily emails began promoting the “I Can Has Cheezburger” iPhone app.  As a consumer, I was all over that app.  As a business-minded individual, I found myself wondering how the app contributes to the revenue model.  In some cases, applications may send you to the website, encourage you to spend time/money elsewhere, or, of course, charge a fee.  The LOLcats application really does none of the above.  It simply provides entertainment to the users.  In this case, an iPhone app is actually counterproductive.  You see, as any logical person would do, I have unsubscribed from my daily Lolcats emails.  No more inbox flooding.  No more going to the website.  All that remains is one click - I pull up my iPhone app, and I’m instantly entertained.

I am a big believer in the value of brand equity - usually, when a consumer is spending more time with your brand, it’s a good thing.  But if they are spending more time with your brand, while driving less money to your brand…the math simply doesn’t add up.  I would pay for this iPhone app.  I might link to the website to comment.  But please don’t tell the Lolcats.  They’ll turn me into nomz ;)

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Might Good Customer Service Make a Comeback?

By Stephanie Critchfield on Thursday, November 13th, 2008

It’s no secret - our economy is sick. Unemployment is on the rise, people are at risk of losing their homes, the stock market is down, and people are generally worried about their financial future.

As a result, people are scaling back on their spending -forcefully becoming more thrifty. Still, let’s be honest, we’re Americans. While we might cut back - even a lot - we won’t cut completely out; it’s the American way to be spendthrift-ish.

So for the next several months while the economy shakes things up, what should be your strategy -particularly during the busy, competitive holiday season? People are bound to spend less. So what how do you draw more of this smaller pool of dollars to your brand vs. the competition?

Fundamentally, there is a shift in the way people spend their money. Much more, people need to feel good about the money they’re spending. Value is huge. So if you can’t change your product, what can you change?

How about CUSTOMER SERVICE?

It slipped away when people would buy regardless of the experience, because spending wasn’t an issue. Today, though, a dollar needs to go farther. It isn’t just the pair of shoes a customer buys, but the experience she has doing it. Brands need to make their customers FEEL GOOD about the money they spend. Call it guilt management … with a smile.

Let me give a personal example:

I’ve had some major dental work done over the past 2 years. For anyone that’s been through this kind of ordeal, you know it’s painful and time consuming … but more than that, it’s EXPENSIVE. Bottom line, it’s natural to put these things off - and even more so in tough financial times.

And when it comes to dental work there are always options. Do you get the cheap filling or crown, or the pretty one? Do you pull the tooth, or repair it, etc.

Recently, I wrapped up my dental work - and I bought the pretty options/the more expensive options. Why? His SERVICE sold me. I adore my dentist and his entire staff, and they made me feel good about choosing the pricier options.

And to say that I haven’t cried in his chair would be a lie. Still, I love my dentist - now that’s sayin’ something. Everything about his business is better than any other dental experience I have had. They run the business like your personal experience makes or breaks them. They give frank and honest consultations, fair options, and they learn who you are and deliver based on your needs. I’m now loyal, and will “shop” with him for all my dental needs, period.

This is a huge lesson for businesses right now - online or offline. Actual service improvements will improve your bottom line. That’s a fundamental business change if you’re not already excelling in the area. But the other lesson here is this: Make people feel better about spending with you. What do they get buying from you that they don’t get at your competitor? Sounds simple. But if my experience has shown me anything, the simpiler the answer, the more likely it is to be right.

** Props to Dr. Wingfield **

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Great, now I have that “Saved by Zero” song in my head.

By Stephanie Critchfield on Thursday, November 6th, 2008

I was perusing AdFreak as I often do mid-afternoon for my industry laugh, when I read the post “Viewers rise up against ‘Saved by Zero’ ads.”

 

I’m fairly certain I don’t even need to describe this ad, I think everyone knows it. My 10-year old son will even sigh when he hears it now.

What I learned from the AdFreak post is that there are actually several websites hosting rants about this ad (e.g. Consumerist, Esquire). One quote the post cited: “It makes me want to kill someone/never ever buy a Toyota.”

Now, you know you’ve done something wrong when something like this happens. 

I am NOT one to subscribe to “any publicity is good publicity.” I think you need to respect your audience and deliver a message that they actually want to hear - something they can connect with, that will move them to act. Maybe the idea of 0% financing is a good one - but delivery is everything.

Tell me how this ad moves somebody to act? (besides to rant on websites, or declare they’ll never buy a Toyota, or threaten suicide)

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