Visit to Maui, Hawaii 13th to 19th Feb’08This was our first trip to Hawaii and though Hawaii was in our radar for a long time, we had not imagined that we could do it so soon. It all started when we saw that the tickets were $300 around our anniversary and then we started planning around the week. (To watch the pictures copy and paste following on your browser http://picasaweb.google.com/vineet0511/Hawaii?authkey=NEOosihIreA)
I had not imagined that Maui is as pretty inside as on its beaches. So those planning a trip note to spend time inside the island as well. Though a trip to Hawaii is always memorable, this will perhaps be more for us as there were many things we did for the first time. 8 key highlights of our trip:
- Snorkeling is absolutely wonderful. If you think you know how yellow looks on black, you don’t. If you know how orange shades on green, you are kidding yourself. The colors of the wonderful fish in sparking water cannot be replicated in imagination or Corel draw, can just only be experienced. I need not spend too many words trying to explain it as I will not succeed. Only two pieces of advice: go with your loved ones as this is something to be shared with while you are experiencing it and secondly, you need not even know swimming well to be able to do it. We wore a life jacket and were just fine. Kaanapali Beach was the best.
- Haleakala Sunrise – if there is something close to heavenly, it could be this. Watching the sun rise at 10,000 feet at the Haleakala mountain summit. Yes, you have to wake up at 4.00AM, but it is absolutely worth it. Try to be there 45 minutes before sunrise to see how the horizon changes colors as the sun is closing up for the rise. On the day that I went, I could see the horizon clearly and the clouds below, not interrupting the view.
- Whale Watching –At this time of the year, there are so many of them and so close to the shores that you may do away with binoculars. These magnificent mammals with the signature tails are fun to watch. On our trip with the pacific foundation whale tours which I recommend highly, we must have seen at least a couple of dozen whales in two hours. And to our pleasant surprise, there came dolphins from no where pacing near the bow of the boat and flipping once in a while to draw attention. According to Rupali, if they could speak, what they were really trying to say is, “Look at us, not the boring whales!” These playful things fill you with joy.
- Hiking at Haleakala – With Mishti on the back-pack, we could hike 5 miles up to the Waimoku water falls and the 7 pools. The hike was pleasurable, a little tiring with her but pretty ok if you are on your own. The highlight is the bamboo forest that comes on the way.
- A night in the cabin – We rented a cabin at the Waianapanapa State Park. We wanted to have a rustic experience. The cabin is pretty ok with Refrigerator, stove, indoor toilets and running water. It is the best deal is Maui at $45 a night. Be prepared for mosquitoes.
- Luau – this is another way to spend a romantic evening in Maui, the Luau – the local dinner and dance of Hawaii. The performers were pretty talented - good-looking and sexy as well, especially in their provocative attire. The man performing the fire dance was really good and most group dances had good music and graceful movements. However, the one at Hyatt that we went for, is not worth its price.
- Drive up to Lahaina from Kahului via the north route is picturesque. It is perhaps as good as the much talked about Hana drive but less crowded and steeper with many single lane stretches. You should do it, if you have time and stop by to eat the banana breads and local organic fruits.
- Finally, if you renting a car, rent an SUV. It is worth it on the winding mountainous roads of Maui. We were lucky to put our hands on a brand new Ford Escape, just out of the showroom, having run only 6 miles.
Low points of the trip were the small accident (only a scratch on the passenger side) while I was backing up from parking. The rental agency and GEICO are settling it and will let us know how it finally impacted our budget! Next was the food. If you are an Indian not so accustomed to cold meats, I would recommend you carry a few MTRs and other ready to eat stuff on this and similar trips abroad. Since most places provide for a microwave and a few utensils, it is easy to cook. Hana, especially, is so laid back that there is practically only one restaurant open for dinner where the average cost is $30-$50 per person. Also, Frommer’s probably do not have the best recommendations on food and beaches. Their 2008 edition is not updated in many places. Look at other travel guide books, or better still, talk to me!
Grand Canyon is next on agenda this summer! Will keep you posted.
Saturday, February 23, 2008
Tuesday, February 5, 2008
US Corporations – a conspiracy against consumers
US Corporations – a conspiracy against consumers…
I think that US consumers are pretty naïve. Anybody can fool us, take us for a ride on the bus of “This is our corporate policy” or “These are our procedures”. I was planning to write about this ever since I had my first nasty interaction and finally got down to doing it today. These are some facts you need to know. Ask me for details if you want to know more.
- Comcast, the leading cable & internet service provider in the US, offers service suspension for a small fee per month if you are away from your home and not using their services. However, they offer this only during vacations and that, according to their corporate policy, starts from October. Initially I thought I had not got it right, but when the lady on the other side repeated it, I was taken aback. So Comcast decides when people should be taking their vacations? They should then be in the travel business.
- Comcast very often offers free installation. However, apart from myself I know at least two people (and I have not gone checking for them – I knew this accidentally) who when they got their first bill, saw the installation charge. You have to call back so that they could reverse it in the next billing cycle. In isolation these may be co-incidences, but if we put these events together, I smell conspiracy. I will not be surprised if this is planned - meaning claim to offer free installations and charge them in the invoice. If the customer calls, refund the charge or else pocket it.
- When you walk into an AT&T / Cingular’s store, they are ready to sell you anything you want (or may not want). But if you have a problem with the service, chances are very high that they will sweetly say that it can only be handled at their customer service center. Sounds unfair. Why can’t they have a couple of desks to resolve queries?
- Again, and this is a classic case for a class action suit. Do you know that even if you talked for 55 seconds or 1.57 seconds, you will be charged for 2 and 3 minutes respectively at AT&T/Cingular? Meaning, if it closer to 55 seconds or so, you will be charged for the next minute? I checked it with them and this honest fellow on the other side of the phone admits that their ‘system’ registers the call after a few seconds by which time if the next minute has started, they will bill you for that minute. How conveniently designed is this system?
- Still with AT&T. Do you know that their famous network map with those orange shades showing their network coverage across the US is flawed? Meaning they are not networked in places where they show they are. I screamed this out at one of their stores and their executives as well as their security personnel (why does an AT&T store need a security personnel?) rushed towards me. It was a funny sight. They wanted me to calm down as they were afraid that their other prospects may run away.
- Do you know that if you are a prepaid customer, you can carry forward your unused dollars to the next month. However, if they are unable to charge your card due to some reason, they will not adjust these carry forward dollars to the current billing cycle. You simply lose it. Logically and honestly speaking, these are money you paid in advance and did not use, so this should be in your balance. But this is not the case, they will not adjust it or even give you a call to tell you why the transaction failed or check with you. They will simply disconnect your service.
- Credit rating agencies make millions feel handicapped here in the US. You need to have a credit line to improve your credit rating/score and for that you need to have a credit card or need to take a loan. If you don’t have a credit history, you can get denied a credit card many times before you get your first one. So how can you build a history if the system does not allow you to start? You could take a loan but the terms would kill you. So an average starter would have a more than an average chance to default as his terms would be steep. Other important pointers like car ownership, bank CDs, stable job and a decent salary do not count. How distorted is this system if it does not allow people to move up? And we, the consumers of America, live with this.
- Healthcare. Next time you go to see a doc, see carefully what you are signing. Chances are that the invoice has items built up that you did not use. This they do so that they can negotiate with the insurance companies. Consumers do not pay attention as their insurance pays this (there is a whole write upon this which I will put up in the next few days), but it matters to us collectively as it increases premiums in the long term.
- Take electricity. General Electric sends this mailer every month to move to renewable energy. It argues, that though costs are relatively high, it promotes sustainability and makes us feel responsible citizens. If that is the real case, can someone please ask GE why they send mailers to millions of homes every month, consuming tons of rims of paper? That sure is not a sign of sustainable marketing? Why can’t they promote it thru web/TV ads if they are so bothered?
- I hate Vista but I have no choice as 19 out of 20 laptops come with it. Why? Because there is just one Microsoft. How do regulators allow it even if they allowed a Microsoft to become a monopoly, I am surprised they cannot regulate this part that every laptop buyer should have the choice of application he wants to use, rather than it being thrust on him. If Vista is good, people will eventually move. Why force them?
- Credit cards. These guys are probably the smartest. They have now started sending these dummy cards with a covering letter to you saying your card is ‘pre-approved’. This is unethical as it is not pre-approved as we really understand in terms of credit cards. It would still go thru all checks and scrutiny before it is actually approved. The gimmick works as vulnerable consumers sign in. Even if 5% did, it’s a great ROI for direct mailers.
- Talk about mail in rebates. For those who don’t know, mail-in rebates work this way. As a buyer, at the time of purchase, you are supposed to pay the full price and then mail the receipt along with another form to the mail in address and wait for the rebate check to come to you in 2-3 months. On many occasions even when you have sent all information, the check never comes. If you want to follow-up, then you have to hunt for the copy of the receipt, that is if you were wise enough to keep a copy. Then you follow-up on the phone and wait. Most customers do not take such pains, especially when the rebate value is small. Can someone please ask, why mail in? Why can’t we just get the discount at the time of purchase? The answer is negative as the intentions are immoral. Some of the marketers explain that they want the database. Well, if they do, why don’t they just have them fill up the form at the time of purchase and collect the rebate? The real reason is that they want you to forget about it. It straight away goes to the bottom-line if you forget. Most consumers misplace the receipts or forget about it. These are pure profits to them and ill intended.
- Prices for almost any product category in the US have a 9 in it. It is called psychological pricing in marketing books. It is used in many countries by many marketers. But in the US, it is used for almost every product that you want to buy. Notice the price of products next time you visit a grocery store. $1.89, $13.49, $5.79. Products could be diapers, milk, beer, carrots, detergents, cars, mobile phones, just about anything. The best example here is the price of gas. Gas is priced as 2.899/10. It really makes me laugh. This is another sign that this works with the American customers and that they are gullible.
- Take the Sale/Discount idiotism that goes on. As a customer you will never know if you got a good deal as there is rarely an original price printed on the pack. Most of the times it is bar-coded. Consider this. A Nike shoe sells at Sears at $49.99 with a 20% discount. Is this a good deal? As a customer you will never know as you don’t know what the real retail price is. It may be $40 and the store has jacked it up and offering a discount of the same value. So when consumers tell me that they bought this product at 50% discount or 70% discount, I really pity them. Further, some stores have apparently everything on ‘SALE’. So all price is mentioned under a SALE placard. And what is really on SALE is under clearance. I sometimes wonder telling the store manager that we know that you are here to ‘sell’ so you don’t have to say ‘SALE’ everywhere.
You look almost anywhere and you smell a rat. American consumers are being fooled time and again. There is no regulation and whatever is there hardly helps the consumer as it is at such a macro level.
The solutions
span style="font-size:85%;">There are several solutions. Some of them may be practical, others may be not. But at least let’s start a debate and work out a solution together.
· The market should offer more room for competition. AT&T should not have been allowed to buy Cingular. Yahoo should not be allowed to sell to Microsoft or Google. There should be more options for cable, internet, electricity, almost any service. Competition is good for consumers. It keeps corporations on their toes and brings prices down. They would listen to you and you will have options.
· I am sick of AT&T, you may be of Verizon but we cannot change our service as our phone numbers are with everybody we know. If it becomes mandatory that AT&T will have to forward all my calls to my new number after a message that says that the subscriber has a new number, it will be a great boost to the consumers. AT&T can charge a small fee like $5 (4.99 if you wish) per month for this. It costs them nothing but allows consumers to move swiftly from one operator to the other.
· Mail-in rebates should be banned. Or if that is not possible, have them give you the money not in 3 months but 3 weeks. All stores offering mail-in rebates should have a mail-in box and they should encourage customers to fill the form there itself and drop in the mail box so that consumers do not lose the receipts.
· Organizations promoting sustainability as a marketing and PR gimmick should be taken to task. Everyone seems to be riding this green wave most of which is unethical and customers should be aware so that they can distinguish real from fictitious. Organizations like Energy star or equivalent could take a lead here.
· Prices for most products should have something like a maximum retail price. Bar-coding does not help consumers. The same Nike shoe can sell at Nordstorm at $49.99 and at Sears at $42.99 but customers should know what is the maximum retail price fixed for that shoe by Nike which can help them identify if this is a sale, discount or clearance product.
Lets all move on this together.
I think that US consumers are pretty naïve. Anybody can fool us, take us for a ride on the bus of “This is our corporate policy” or “These are our procedures”. I was planning to write about this ever since I had my first nasty interaction and finally got down to doing it today. These are some facts you need to know. Ask me for details if you want to know more.
- Comcast, the leading cable & internet service provider in the US, offers service suspension for a small fee per month if you are away from your home and not using their services. However, they offer this only during vacations and that, according to their corporate policy, starts from October. Initially I thought I had not got it right, but when the lady on the other side repeated it, I was taken aback. So Comcast decides when people should be taking their vacations? They should then be in the travel business.
- Comcast very often offers free installation. However, apart from myself I know at least two people (and I have not gone checking for them – I knew this accidentally) who when they got their first bill, saw the installation charge. You have to call back so that they could reverse it in the next billing cycle. In isolation these may be co-incidences, but if we put these events together, I smell conspiracy. I will not be surprised if this is planned - meaning claim to offer free installations and charge them in the invoice. If the customer calls, refund the charge or else pocket it.
- When you walk into an AT&T / Cingular’s store, they are ready to sell you anything you want (or may not want). But if you have a problem with the service, chances are very high that they will sweetly say that it can only be handled at their customer service center. Sounds unfair. Why can’t they have a couple of desks to resolve queries?
- Again, and this is a classic case for a class action suit. Do you know that even if you talked for 55 seconds or 1.57 seconds, you will be charged for 2 and 3 minutes respectively at AT&T/Cingular? Meaning, if it closer to 55 seconds or so, you will be charged for the next minute? I checked it with them and this honest fellow on the other side of the phone admits that their ‘system’ registers the call after a few seconds by which time if the next minute has started, they will bill you for that minute. How conveniently designed is this system?
- Still with AT&T. Do you know that their famous network map with those orange shades showing their network coverage across the US is flawed? Meaning they are not networked in places where they show they are. I screamed this out at one of their stores and their executives as well as their security personnel (why does an AT&T store need a security personnel?) rushed towards me. It was a funny sight. They wanted me to calm down as they were afraid that their other prospects may run away.
- Do you know that if you are a prepaid customer, you can carry forward your unused dollars to the next month. However, if they are unable to charge your card due to some reason, they will not adjust these carry forward dollars to the current billing cycle. You simply lose it. Logically and honestly speaking, these are money you paid in advance and did not use, so this should be in your balance. But this is not the case, they will not adjust it or even give you a call to tell you why the transaction failed or check with you. They will simply disconnect your service.
- Credit rating agencies make millions feel handicapped here in the US. You need to have a credit line to improve your credit rating/score and for that you need to have a credit card or need to take a loan. If you don’t have a credit history, you can get denied a credit card many times before you get your first one. So how can you build a history if the system does not allow you to start? You could take a loan but the terms would kill you. So an average starter would have a more than an average chance to default as his terms would be steep. Other important pointers like car ownership, bank CDs, stable job and a decent salary do not count. How distorted is this system if it does not allow people to move up? And we, the consumers of America, live with this.
- Healthcare. Next time you go to see a doc, see carefully what you are signing. Chances are that the invoice has items built up that you did not use. This they do so that they can negotiate with the insurance companies. Consumers do not pay attention as their insurance pays this (there is a whole write upon this which I will put up in the next few days), but it matters to us collectively as it increases premiums in the long term.
- Take electricity. General Electric sends this mailer every month to move to renewable energy. It argues, that though costs are relatively high, it promotes sustainability and makes us feel responsible citizens. If that is the real case, can someone please ask GE why they send mailers to millions of homes every month, consuming tons of rims of paper? That sure is not a sign of sustainable marketing? Why can’t they promote it thru web/TV ads if they are so bothered?
- I hate Vista but I have no choice as 19 out of 20 laptops come with it. Why? Because there is just one Microsoft. How do regulators allow it even if they allowed a Microsoft to become a monopoly, I am surprised they cannot regulate this part that every laptop buyer should have the choice of application he wants to use, rather than it being thrust on him. If Vista is good, people will eventually move. Why force them?
- Credit cards. These guys are probably the smartest. They have now started sending these dummy cards with a covering letter to you saying your card is ‘pre-approved’. This is unethical as it is not pre-approved as we really understand in terms of credit cards. It would still go thru all checks and scrutiny before it is actually approved. The gimmick works as vulnerable consumers sign in. Even if 5% did, it’s a great ROI for direct mailers.
- Talk about mail in rebates. For those who don’t know, mail-in rebates work this way. As a buyer, at the time of purchase, you are supposed to pay the full price and then mail the receipt along with another form to the mail in address and wait for the rebate check to come to you in 2-3 months. On many occasions even when you have sent all information, the check never comes. If you want to follow-up, then you have to hunt for the copy of the receipt, that is if you were wise enough to keep a copy. Then you follow-up on the phone and wait. Most customers do not take such pains, especially when the rebate value is small. Can someone please ask, why mail in? Why can’t we just get the discount at the time of purchase? The answer is negative as the intentions are immoral. Some of the marketers explain that they want the database. Well, if they do, why don’t they just have them fill up the form at the time of purchase and collect the rebate? The real reason is that they want you to forget about it. It straight away goes to the bottom-line if you forget. Most consumers misplace the receipts or forget about it. These are pure profits to them and ill intended.
- Prices for almost any product category in the US have a 9 in it. It is called psychological pricing in marketing books. It is used in many countries by many marketers. But in the US, it is used for almost every product that you want to buy. Notice the price of products next time you visit a grocery store. $1.89, $13.49, $5.79. Products could be diapers, milk, beer, carrots, detergents, cars, mobile phones, just about anything. The best example here is the price of gas. Gas is priced as 2.899/10. It really makes me laugh. This is another sign that this works with the American customers and that they are gullible.
- Take the Sale/Discount idiotism that goes on. As a customer you will never know if you got a good deal as there is rarely an original price printed on the pack. Most of the times it is bar-coded. Consider this. A Nike shoe sells at Sears at $49.99 with a 20% discount. Is this a good deal? As a customer you will never know as you don’t know what the real retail price is. It may be $40 and the store has jacked it up and offering a discount of the same value. So when consumers tell me that they bought this product at 50% discount or 70% discount, I really pity them. Further, some stores have apparently everything on ‘SALE’. So all price is mentioned under a SALE placard. And what is really on SALE is under clearance. I sometimes wonder telling the store manager that we know that you are here to ‘sell’ so you don’t have to say ‘SALE’ everywhere.
You look almost anywhere and you smell a rat. American consumers are being fooled time and again. There is no regulation and whatever is there hardly helps the consumer as it is at such a macro level.
The solutions
span style="font-size:85%;">There are several solutions. Some of them may be practical, others may be not. But at least let’s start a debate and work out a solution together.
· The market should offer more room for competition. AT&T should not have been allowed to buy Cingular. Yahoo should not be allowed to sell to Microsoft or Google. There should be more options for cable, internet, electricity, almost any service. Competition is good for consumers. It keeps corporations on their toes and brings prices down. They would listen to you and you will have options.
· I am sick of AT&T, you may be of Verizon but we cannot change our service as our phone numbers are with everybody we know. If it becomes mandatory that AT&T will have to forward all my calls to my new number after a message that says that the subscriber has a new number, it will be a great boost to the consumers. AT&T can charge a small fee like $5 (4.99 if you wish) per month for this. It costs them nothing but allows consumers to move swiftly from one operator to the other.
· Mail-in rebates should be banned. Or if that is not possible, have them give you the money not in 3 months but 3 weeks. All stores offering mail-in rebates should have a mail-in box and they should encourage customers to fill the form there itself and drop in the mail box so that consumers do not lose the receipts.
· Organizations promoting sustainability as a marketing and PR gimmick should be taken to task. Everyone seems to be riding this green wave most of which is unethical and customers should be aware so that they can distinguish real from fictitious. Organizations like Energy star or equivalent could take a lead here.
· Prices for most products should have something like a maximum retail price. Bar-coding does not help consumers. The same Nike shoe can sell at Nordstorm at $49.99 and at Sears at $42.99 but customers should know what is the maximum retail price fixed for that shoe by Nike which can help them identify if this is a sale, discount or clearance product.
Lets all move on this together.
Friday, February 1, 2008
Packaging in Marketing Research
Power of Packaging
Written with respect to market research companies in mind
Some of us remember PoP as a business school concept when it meant Point of Purchase materials. I want to re-coin the phrase to fit the context of business today - Power of Packaging.
The 25-75 principle
My focus is not why packaging is important but rather how we practice packaging. Consider this: of the time we spent on a project, the client sees 25% of the total (time spent on the proposal, the questionnaire and the final presentation). The other 75%, spent chasing suppliers, ensuring data quality, formatting questionnaires, following-up with data processing, the client never sees. How we package proposals and final presentations can make a real difference. Think about these two examples of good work that I have seen and how it could have improved with different packaging.
Packaging of proposals
Recently a prospect wanted us to integrate their query logging system to record customer satisfaction surveys and produce key reports. Our proposal for this fairly good sized project was reasonably detailed. However, it lacked effective packaging.
· Branding: I created the tagline “Online customer management”, but when I reviewed the proposal, I realized the tagline did not do justice to content. Consider the impact of “Complete solution to customer response management (CRM)”. Not much different, but better because “complete” gives the impression the customer gets more value for her spend. “CRM” promotes credibility.
· Flow-charts: Instead of describing point by point steps in the project management chain, a flow chart has better visual impact, is more interesting and engaging. Imagine the effect on the guy reading a 20-30 page or 50-slide proposal.
· Visuals: I see so many presentations with pictures and backgrounds that have been lifted from the power-point or results of creative juices flowing of the creator. If talking about financial services, why not use pictures of a customer talking to a banker or using an ATM. With digital cameras so cheap and increasing number of mobile phones with camera, this should not be difficult. When presnting to a technology client, how about a customer using a laptop or shopping for a software in a mall? How about someone assembling a computer? These are easy pictures and so relevant. Or perhaps pictures of briefing sessions, CATI and F2F interviewers at work.
· Color: Researchers shy away from color, but our readers are not researchers. They are marketers. Marketers like color. In the bargain, our documents gain identity and engagement.
· Finally, content:
o Not all proposals need to start with “Background” or “Appreciation of the brief”. Why not a quote, story or anecdote?
o How about adding a quality control section to ALL proposals. Describe an 11 point xxx QC program. It’s a differentiator. Remember 7 habits of … 22 immutable laws…?
o Consider saying, “When we are awarded the project, this is how we will execute” We’ll look prepared, eager and expert.
o It is not audacious to say, “We know we are expensive, and this is why”. Talk about quality. Tell them a part of extreme responses are back-checked by researchers themselves. Say our researchers personally conduct five quant surveys. Picture telling the client in the presentation, “Oh, while speaking to a respondent from Florida or Kolkata, he explained...” Clients will pay for this; cost versus perceived value is in our favor.
Packaging of final presentations
A recent project surveyed vendors and consumers of a technology company with a large sample size across multiple markets. The client was satisfied with the presentation, but I guess we could have delighted him
Consider this:
Start the presentation with a one-minute film, “Meet your South Korean consumer”. Show the consumer’s neighborhood, his house, his office and then him. Show clips where he tells “Why I prefer BIM over IBM.” Show his house, his family. End with a tagline: “The majority of BIM consumers are like Kim Wuan Chu; they prefer service over price”. Then, start the presentation. Use three or four clips throughout, including quotes in the respondent’s own voice to present the story. Vendor cost and overall costs go up slightly, but value increase is immeasurable.
The client does not expect to see customers, but he sees them through you. He doesn’t think he’s paid for it, it’s unexpected, and he’ll be delighted. In turn, he can use these clips in corporate presentations, and you get even more notice. If video is not feasible, consider still pictures or audio recordings. Impact far outweighs cost.
Finally
Content is still king. I don’t say ignore quality content in favor of packaging. However, when the client expects quality data anyway, how can you be different? Packaging goes a long way. Ask a woman how much she loves the case that held her diamond.
Power of Packaging was edited by my colleague Kathryn Stevens
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