Category: Corporations

Your call

Posted on by Steve Sammartino

(read in digital voice)

Hello, (pause)

Your call is important to us. We are unable to take you call at this time. (what?)

If you wish to change your account details press 1

If you’d like to listen to your account balance press 2

If you’d like to make a payment press 3

If you’d like to hear these options again press 4

If you wish to talk to an operator press 0 – the expected wait time is: 17 minutes…..

I hang up. My call is not important to them.

What surprises me is that companies spend millions on TV advertising attempting to create an interaction with potential customers who aren’t listening. Then when people try to interact with the same company, they get given the machine – the finger.

Most companies invest in the wrong area.  Automation is only a benefit when it increases interactions with people. When it facilitates the conversation, not circumvents it. It’s a classic case of balance sheet marketing.

Everything big companies do here is wrong.

Start ups: Talk to your people. Give them a real phone number to ring with a real person at the end of the line. Be there when they call. Have a conversation. Make it personal. Over invest in this area.

Badvertising – New Mother by Coke

Posted on by Steve Sammartino

Many including startup blog predicted the death of Mother Energy Drink before it was launched. By the way this was Coca Cola Australia’s 4th attempt to get a share of the energy soft drink market. Other attempts included Lift Plus, Burn and Sprite recharge. All of which bombed.

As predicted ‘Mother’ should have been called ‘Dog’. So they’ve burried the old stock on hand and Coke have re-launched Mother with an all new fix all flavour. Which has lead to the following badvertising:

[youtube=http://www.youtube.com/watch?v=HvgIopzPflI]

Memo to Coke Marketing team: Taste has nothing to do with it. Half of Red Bull’s consumers even admit they don’t like the taste. Consumers know the same people developed the flavour profile of this launch too, and yes they know it’s made by Coke.

The energy space is already occupied in the minds of consumers. The market is already dominated by two powerful brands with strong identities & distribution depth. Save your money on advertising and put it towards buying Red Bull gloablly or V for the Asia Pacific market – because this category is already game set match. The two horse race which all categories become has been run and won.

One more thing – this spot is so contrived, your target market would be laughing at you.

Kind regards – Startup Blog.

Note to start ups – if you’re launching a me too, without a price, distribution or technology advantage – best to re-think the launch plans. If Coke can’t do it – why can you?

‘Oh, by the way’…pricing & fuel surcharges

Posted on by Steve Sammartino

The latest trick of many airlines is to segregate elements of their product cost

 

–        Introducing the “Fuel Surcharge”

 

Apparently this provides pricing transparency. Thanks Mr Airline, but we know the price of oil is rising. 

 

 

Isn’t fuel a fundamental input cost for airlines? (30%)

Do they think we care what their input costs are?

Do they realize that we’d rather the total price – no tricks?

Do they know it reduces ‘trust’ in their brand and industry?

 

And just to show my total disdain for fragmented and aggregated pricing here’s a few questions I’d like to propose to the airline Industry:

 

Does Nike have a shoe lace surcharge?

Does Ford charge extra for the steering wheel?

Does Coke have an aluminum can surcharge?

Does Nokia charge extra for the buttons on the cell phone?

 

Fuel is not an ‘optional extra’. So work it out, include it and charge us a price. That’s what business is…. Businesses are meant to be working this stuff out to reduce the complexity in our lives. That’s what business does.

 

No wonder airlines have the highest business failure rate of any industry, and the worst profitability of any Industry in history. (which by the way is a net negative over the past 100 years)

 

Start up blog says: Consumers hate ‘Oh, by the way’ charges. Avoid them at all costs.

Bootstrappers business trip

Posted on by Steve Sammartino

I recently had to conduct some rentoid business interstate. The content of the trip is irrelevant, what’s relevant is the context. rentoid is a small startup with a long road ahead. Cashflow is important vital, so we conserve it where possible. This is what successful startups do. We know where they are on the revenue curve – and so we are frugal.

 

Flights: Cheapest tickets available with no frills budget airline.

 

Time: First flight in morning, fly back after business hours – last flight. This ensures a full day conversations and maximum value within the trip.

 

Hire Car: Smallest cheapest car available (Hyundai Getz 3 door to be precise). Low on cost, low on fuel. Only needs to fit two people and two laptops.

 

Lunch: A burger and fries at a local pub. (at least it had Sydney Harbour views!)

 

Internet access: Hunt down free wifi area and buy a $3 espresso.

 

Dinner: Airport Pizza & a soft drink.

 

Ok, it wasn’t the most glamorous business trip, but the objectives were achieved with the minimum cost, and we had fun. We’ll fly business class, or in a private jet when our business can afford it, and hence it’s deserved.

 

Start ups out there: Know where you are at. Never let ambition or ego get in front of the revenue reality.

One piece of advice

Posted on by Steve Sammartino

If you could offer entrepreneurs one piece of advice what would it be?

 

Start up blog’s is this:   Don’t die wondering.

 

I’m sure all 20,000 monthly startup blog readers want to hear yours. Add them to the comments or email them to me and I’ll post them on an upcoming blog entry with your name / blog beside it.

Ahead of their time

Posted on by Steve Sammartino

Here’s a meme from the Cluetrain Manifesto guys.  It was written some 9 years ago and still rings true. The predictions herein are still evolving today, and yet some corporations still haven’t got it.

Start ups out there; invest 5 minutes with the ideas below, embrace them and you’ll be well ahead of the game.

[slideshare id=7027&doc=cluetrain-28722&w=425]

Game Changing

Posted on by Steve Sammartino

Sometimes we convince ourselves in the early days of our start up that the fun stuff is most important. Yes it’s seriously important, and it’s partly why we decided to leave the cubicle.

 

But the biggest reason we left cubiclesville was because we wanted to win. We wanted to do something, change something, prove something and achieve success which other corporate plankton couldn’t claim on our behalf.

 

That said, we ought ask ourselves this:

 

Is what we are doing Game Changing?

 

Will what we are spending investing our time on today be the thing that ensures we win the game in our web domain, category or industry?

 

 

Fact: When Youtube launched there was over 450 other video sharing websites. Youtube won video sharing for these reasons:

 

1.      They had the simplest user experience

2.      They had the most videos uploaded

 

That’s it.

 

So – are we investing our day on Game Changing activities, or just passing time?