Back
to To The Point list
To the Point/January/2006
• Count on it: If they build it, someone will figure
out how to get around it. Entrepreneur Magazine
says that identity theft prevention, shredding and surveillance
cameras will be among the top 10 growth industries in 2006. This
isn’t surprising since home shredders were popular gifts this
past Christmas, and protecting information-based assets from attack
is growing problem.
The good news is that there is another side to getting around barriers.
The Wall Street Journal reports that there are ways to
find your way to live human beings when calling customer service
hotlines. Paul English, an enterprising blogger, has come up with
ways to connect with a live operator. The information can be found
on his website, www.paulenglish.com/ivr. Mr. English is evidently
quite committed to helping us in the often frustrating task of actually
interacting with a person. He is adding “codes” for
more companies. If you don’t see the information for a particular
company, he’ll get it for you. How’s that for customer
service?
• Once again, the customer is always right.
A story in the Twin Cities Pioneer Press caught my eye
recently. It was about a 56-year old association executive buying
a Honda Element. As you may know, this vehicle was specifically
designed for the twenty-something market. It was quickly nicknamed
“a dorm room on wheels.” There’s no carpet and
the seat fabric is washable. As a matter of fact, you can turn the
hose on the inside (something many a parent would love do to a kid’s
bedroom).
The Element’s sunroof is in the rear instead of up front.
A bit confusing until you realize that the window comes out so you
have a place for your surfboard.
Well, this somewhat quirky looking vehicle (the rear bumper guard
costs $38 to replace) hasn’t made much of an impact on the
youth market. The average age of purchasers is 39. It’s making
quite a hit with those in the 40s, 50s, 60s and even older.
Whether you like the Element or not, it’s a prime example
of how we can convince ourselves we know what customers want (or
should want)—and still miss the mark.
• The power of “free.” As everyone
in advertising will tell you, the most powerful word is “free.”
It seems “new and improved” works well in attracting
attention, but there’s nothing that comes close to “free.”
Bargains are wonderful, but “free” is the winner.
Encyclopedia Britannica is a good example. How many families
doled out hundreds, if not thousands, of dollars to provide their
kids this educational resource. Then along came the Internet and
the Britannica people came out with an online version for
which they charged a monthly fee. Not surprisingly, it did not do
well in light of the fact that so much on the Internet is, yes,
free.
Then WiFi came along. While some still charge for the service (some
airports, for example), more and more it is free. In fact, whole
cities are installing WiFi. The largest getting ready for the service
is Philadelphia.
There are those who take advantage of the “free offer.”
At the same time, there is a sound basis for harnessing the power
of “free” in a business. Dr. Robert B. Cialdini, the
highly regarded industrial psychologist, points out a basic principle
of life. When you give someone a gift, they want to return the gesture.
For example, a neighbor brings over a plate of cookies. The natural
feeling is to want to reciprocate. So back goes the apple pie. It’s
the same in business—the compelling power of “free.”
• Insurance doesn’t solve problems. It
seems as if the insurance industry at every level has led policyholders
to believe that their worries are over if they have insurance. Let
me explain why we think that’s the wrong message.
First, the role of an insurance professional is not to “sell
a policy.” Our real expertise is assessing possible exposures.
In other words, what would be the consequences if particular scenarios
occurred.
Second, we have the responsibility to help a client evaluate those
exposures and decide the most cost-effective ways to avoid loss.
For example, in Workers’ Compensation, the issue isn’t
primarily safety, even though that’s essential. The place
to start is with hiring practices so you can avoid putting people
on the payroll who have a history of job-related injuries. This
concept is applicable to every aspect of a business.
The task is identifying risks, finding ways to avoid them and then
insuring against occurrences that could do serious harm to the business.
That’s what we mean by managing risk and this is what it takes
to reduce insurance expenses over the long-term.
It’s worth pointing out that one of the roles of the insurance
professional is to communicate to the insurance company the steps
a business takes to reduce its risks. In this way, the insurance
company underwriter has a picture of a responsible business. Not
surprisingly, such efforts are reflected in lower insurance costs.
Insurance isn’t meant to solve problems. It’s purpose
is to protect against damaging loss.
• Building an email list. Most businesses
seem to be finding their way when it comes to using email with customers
and prospects. While some are more successful than others, there’s
plenty of worry about reaching the right people and not being offensive.
The editors of DM, the direct marketing magazine, offer 10 helpful
steps: 1) Plan thoroughly; 2) Present a value proposition; 3) Don’t
expect something for nothing; 4) Keep it simple; 5) Don’t
scare prospects with prying questions; 6) Invite people to opt-out
or opt-in; 7) Guarantee privacy; 8) Micromanage your list; 9) Leverage
the web and advertising elsewhere on web; 10) Don’t forget
the real world. Promote there, too.
Our best wishes go to you for a successful New Year.
Sincerely,
Tom Helbach
Back
to To The Point list
|
