Silicon Beach with yours truley

Silicon Beach Australia [siliconbeachaustralia.org] was formed with no plan, just a question:

“How can we bring the Australian technology community together?”

“Silicon Valley has a supporting ecosystem that makes Internet innovation thrive, so what can Australia do? How can our big island with the best beaches in the world, harness the passionate, intelligent individuals who care to do more?”

It’s a very cool initiative and hopefully something which will harness the intellectual capital our country is renounced for. Instead of losing it to countries who appreciate and embrace innovation.

One thing is for sure – it all starts with conversations. I was fortunate enough to be invited into the conversation yesterday for their 3rd Podcast to discuss a bit about rentoid, and all things entrepreneurship…

I was fairly candid with things like my corporate exit, business philosophy, the financial crisis and just the way I like to go about things. You can check it out by clicking here.

Small Companies vs Big Companies

If I could give one piece of advice for anyone who has reently escaped their cubicle of the large corporate scene to start up it would be this:

Do the opposite of whatever large companies do.

…and be quicker than they are.

if your startup is in the same industry you worked in…

Do the opposite of what you ‘were told to do’ within your large company.

To beat them you must focus on momentum. We most not do what they do, we must not compete on their level.

To gain momentum, we simply cannot behave the way they do.

Qantas gets it wrong with Effiency

These 3 photos where taken at Melbourne airport on a Friday night.

This is of a quick check (self check in terminal)of which there are 22.

This is of the the bag check in staff of which there were 3 working. (They have spaces for 22 employees)

And the this photo is of the ensuing crowd and chaos.

(the crowd goes around the corner it’s at least 100 deep)

I asked the staff member if she’d like some help tonight – she seemed flustered with how busy she was. She said “of course, but it’s ‘cheaper’ this way”. Then I asked if she thought “quick check” was quicker. She said “definitely not”.

So here’s the thing – Qantas make money out of the quick check. The save on overheads. On the balance sheet it makes sense. But what is the ‘real cost’ of doing it?

What it does is, is actually diminish what they actually provide at a differentiated level. It reduces their product from “service” to “travel”. They further commodify themselves against their low cost airline competitors. They make us ask why we are actually flying qantas and paying a premium…

– Is it the food service? – Not likely, given the food is most often a gourmet cookie & juice.

– Is it the service in the air? – Not likely, given their staff are less polite than budget airlines.

– Is it the airplanes? – Not likely, given all domestic players use the exact same aircraft.

– Is the the baggage allowance? – Not likely, given the allownaces are the same 20kg’s to tohers.

– Is it the terminal ambience? – Not likey, given it’s shared with jetstar.

– Is it their safety record? – Not likey given recent scares & that no major aircraft has ever crashed in Australia.

– Is it the inflight entertainment? – Maybe, but it’s a stetch these days given we all have mobile entertainment devices in our pocket.

– Is it the Frequent Flyer points?  Maybe, but it’s marginal at best.

– Is it the Qantas Club? yes – if you are preapred to pay the $775 per annum.

And it can’t be their ground service, given the example above on a Friday night.

Qantas need to ask themselves some hard questions about what they actually offer – as a long time loyal customer, it’s waining quickly. Their point of difference is in a massive state of decline.

Here’s what Qantas ought do if they want to avoid further decline:

  1. Offer Hot meals & drinks every flight. Not just at dinner time. If we are travelling we didn’t have time for dinner or lunch, regardless of when our flight was. We are just as hungry on 7pm flights as we are on 6pm flights. It’s not the food which costs the airline, it’s serving it up. So, if you are going to serve it. Make it worth the effort.
  2. Make the ground experience comfortable and convenient. A few more staff members on the cehckout is a nice start.
  3. Provide free wifi to anyone with a boarding pass.
  4. Have a ‘no tricks’ Frequent Flyer program where any seat on any flight is available, and not for ‘extra points’ – we’ve already paid a premium for our tickets – remember Mr Qantas?
  5. Have separate terminals for your Budget Airline (Jetstar) and your Premium Airline (Qantas).
  6. Sing out loud in your advertising about how different the Qantas experience is. Make us feel special.
  7. Charge the price needed to make it profitable. You’ll be surpirsed how many of us will be preapred to pay for it.

It’s about time Qantas started to focus on it’s customers and forgot about it’s competitors. Eventually we all morph into what we focus.

I’m sure Qantas will tell us this isn’t possible – but tell that to the person who pays twice the price for a Mac book pro versus a Toshiba with the same configurations.

Startups out there: “Beat your competitors – don’t be them!”

Engage your customers

Really the title should say “people” – we don’t do business with customers, it’s the greatest lie of all time. People trade with people. But I just gave it that title so I could teach people this who stumbled upon this blog entry…

So here’s how we do it at rentoid.com

We have a live chat session with our people. Answer all their questions, assess their concerns and just get to know them. Tonight we are doing it at 7.30pm Aust Syd / Melbourne time.

Go here to log on: http://rentoid.com/live

You can see the startup blog author in action live and see if he (me) can deliver it all live. So tune in, tell your friends and get a shout out!

The skills that matter

Since we’ve been going through a massive growth spurt at rentoid – I’ve been thinking about the skills which matter. The skills which will take us from start up – to business. That stuff that happens after we’ve proved our concept and people are getting involved in what we do. And here’s my conculsions:

1. Project management. We must get the stuff done we’ve been talking about with our customers quickly. They haven’t got time to wait for us to get our act together. We must deliver our promises, or lose them forever.

2. Leadership. Keep the team inspired and motivated, while maintaining the culture we believe in and have already created. Just because we are starting to achieve our goals doesn’t mean we need to invent systems, create paperwork and lose trust for each other. This is where we prove there is another way to do things in business & life.

3. Maintain Momentum. Go ‘back to back’ in sporting parlance. The ability to maintain public interest and is difficult after unpaid national TV coverage. We’ve got to keep the tap running, keep communicating and getting coverage. This is where communication frequency becomes way more important than communication depth.

Another great way to keep ’em talking about rentoid?

We make sure we deliver on all the stuff we said we’d do – refer point 1.

Your call

(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.

Cafe press & customer service

I recently ordered this most rad t-shirt on line from cafe press:

After a month it still hadn’t arrived. So slightly upset  sent them through a note as below.
My email:

My order was meant to arrive between these times: Estimated Arrival: Monday 6/30/08 – Monday 7/7/08. But I am still yet to receive it and I am getting worried that It will never arrive. It is now 7/13/08 so it has been nearly a month! Can you please follow up for me. I am a first time cafe press customer and so far it hasn’t been a good experience.   

1st cafe press response:

Dear Steve,

Thank you for contacting CafePress.com! This note is to inform you that we have received your inquiry and are assigning it to a representative. We respond to all email messages within 24 hours. If you do not receive an answer within 24 hours please call us toll-free at 1-877-809-1659 during our customer service hours Monday – Saturday 9:00 am to 9:00 pm EST.

To help track your inquiry we have generated the following reference number LTK419015882692X. Please use this number in any further communication.

2nd ‘real person’ cafe press response:

Dear Steve, I am sorry to hear you haven’t received your order. I checked and it is past the date it should have arrived. To make sure there are no further delays please confirm back with your correct shipping address. As soon as I get this information I will replace your order at no charge. I look forward to your reply.  

If there is anything else I can do for you please let me know. 

Best Regards, Crystal R.

A few things for startups to notice: 

  • Yes, it was an automated response, but a real living, breathing person got back to me within 24 hours. ‘We want to deal with real people.’ Only real people can respond to emotion.
  • They offered a toll free number for me to call on if a didn’t hear within 24 hours. All websites should have someone you can call.

  • They advised they would replace the order, no questions & immediatly. They accepted fault.

  • They included a link where I could rate there customer service even though, I was potentially an upset customer. No excuses, no hiding on their behalf.

In short, cafe press offered; guarantees, to fix the proble, they accepted fault, and started a feedback loop which has lead to great customer service, from a potentially negative situation. Now I’m blogging about a positive situation when it may well have been the opposite.

Webpreneurs – Be like cafe press.