Archive for June 2011
Top 6 – June 2011
Summer time! Shoeless and barefoot in the grass. Starbucks who, gotta get my Dunkin on! Vacation time…definitely fly Southwest Airlines, Or definitely NOT? Running up an inelastic demand curve is far more exciting than an elastic one Talking about loyalty…98 year old bank account in Ohio Just remember, communication is key. Say it with me!…
Read MoreWhat Have You Done For Me Lately?
The May 16 issue of Harvard Business School’s “Working Knowledge” carried an intriguing article entitled “What Loyalty? High-End Customers are First to Flee.” The article goes on to discuss the work of Prof. Francis X. Frie and doctoral student Ryan W. Buell. The premise of the research simple states that customers that businesses believe to be their best and most loyal are likely to be the first to cast you aside when presented with a challenger of a firm’s heretofore superior service. It’s a real kick in the groin to those companies who believe they have invested heavily in high levels of service for their best customers.
Read MoreLow Cost Airline Carriers – Value Pricing or Inelastic Demand
It’s once again that time of year where the kids are out of school, the stress of work is weighing us down and the thought of a relaxing getaway is on our minds. As we begin to investigate the options there are many factors we need to consider including costs, time constraints and of course destination. Unfortunately, a large majority of us don’t live in Hawaii, next to a four star resort or a world-class golf course. That means we have to get into a car, board a plane, find a train, ship or some other form of transportation to get to where we are going. After you consider all of the options – even with the inconveniences of security, over crowded flights and additional fees – you may find yourself with one viable alternative – air travel.
Read MoreA Price Segmentation Tale: The Amazon Book Market
As a customer of the Amazon online marketplace and self proclaimed elastic demander of new books in all forms and genres, I find myself intrigued by the pricing segmentation strategies employed. Forcing the consumer to self-identify their willingness to pay using tactical segmentation hedges circumvents the blind online interface between the customer and firm. The consumer’s marginal benefit is indirectly discovered by the time of purchase and method of delivery. Essentially, Amazon has captured a significant array of customers at different pricing points for the same desired good, resulting in revenue outcomes more consistent with quasi-complete price segmentation.
Read MoreSpoiling the Barrel
And You Think Your Employees Aren’t Powerful? …It Only Takes One!
Like comparing apples and oranges? No, apples and employees! The employee that isn’t trained to exhibit excellent customer service skills or takes it upon him or herself to alienate customers is like the proverbial apple that “spoils the barrel”, creating an atmosphere that spawns negativity and steals from your bottom line. It only takes one employee to send your customers running away screaming to your nearest competitor, even in the world of electronic interactions.
Business Marketing Association 2011 Conference Unleashes Torrent of Content & Data Strategy
In the first week of June, the Business Marketing Association (BMA) held its annual B2B marketing conference in Chicago. The show over-delivered on its “Unleash” theme with a tidal wave of information about the changing nature of strategic marketing, business models, content and data strategy. Incoming BMA chairperson Al Maag, Chief Communications Officer of Avnet, had this to say about outgoing chairperson Gary Slack, “The annual conference is the jewel in our thought leadership BMA crown thanks to Gary Slack.
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