Have You Tried Turning it Off and On Again?

Product Support is something many of us probably don't think about on a daily basis. If our internet is acting up, we find a customer service number. Bad experience at a restaurant? Send a tweet to the company. Need help setting up a program? Live chat is a few clicks away. The fact that many of us only know the hassle of dealing with the support instead of finding it is key. Companies invest in services, instruction manuals, and website to help users remain satisfied when things go wrong (except for Pearson, they are the worst). So what is support?

I focus on customer service a lot (perhaps because examples are so readily available), but customer services is such a general term. Support is more than fixing an order at a restaurant or smiling when greeting a customer. Support is anything a company provides to help customers solve problems. Furniture from IKEA comes with an instruction manual. That is a form of support. If the furniture is broken, there is a number on the box or receipt to call a service desk to get it replaced. That is support.

Tech companies like Apple and Microsoft have good examples of what support can mean. Microsoft stopped mainstream development of their widely popular operating system Windows 7 in January of 2015. That means they stopped creating products and changes for it. However, they will continue to release security updates (if any breaches are found) until 2020. That is supporting a product. Even when switching from Windows 8 to Windows 10, they gave consumers about a year for a free upgrade to Windows 10. This gave users an incentive to upgrade, but also ample time to make the switch. They released the new OS with trouble shooting software and compatibility fixes. Again, that is support.

Obviously, no one in this class is a tech mogul (yet 😉) but we can look at these things as examples. How can your small business provide support for your product or service? Will you provide a phone number they can call if they have problems? Will you invest in highly detailed instructions? Will you offer warranties in case something breaks? These things can make or break a company's reputation with consumers. It is worth considering if you do not want to end up like Pearson; they are the worst.

Shopping for a Gaming Computer

Recently, I have been in the market to buy a gaming computer. Millions of Americans have a console (Xbox or Playstation), but they have one major draw back: their hardware quickly falls behind the ever-changing gaming market on the computer. (This part is not about my current point, but it does bring up an interesting question about supporting a product, for another post I suppose).

Back to the narrative, I have been scouring the internet looking for "Gaming Computers" and there is a popular debate surrounding them: pre-built or home built. That is, do I buy a computer that is ready to play or order all the parts and assemble it myself to save some money? Both options require that the consumer know a little something about computers. Lets look at this example (http://www.ibuypower.com/Site/Computer/Desktops). Simply scrolling down the page, you'll see the absolute garbage can of letters and numbers that is "computer specifics." Does the average person know the different between a Radeon R7 GPU or an NVIDIA GTX GPU? What is an Intel i5 CPU? WHAT IS A GPU OR CPU? 

I only cited one example, but it seems all the pre-built pc markets and part retailers expect the user to do the research to figure out what they need or want to play their games. I think these cites should absolutely tell the specifics of each computer or parts, but none of them answer the average buyer's simple question: Does it do games good? (intentionally obtuse). How do we know buyers want simple plug-and-play systems? Look at the console market I have already mentioned. If you buy an Xbox, you know it will play all the Xbox games in the Xbox store to the best of its ability. 

Hunter, how is this about marketing?

Right, yes, marketing. It seems we have two independent solutions to the same market. Gaming computers are the highly customizable yet overly-complex way to play video games. Consoles are the layman's quick fix to having something that can play Call of Duty. And this extends to many markets. You can buy a simple slingshot, or you can buy a slingshot with a laser sight and a telegraphic scope (for some reason). My point is, figure out who your company is in the market. Are you the complicated yet personal solution, or the simple, guaranteed-to-work product? Do you expect people to have knowledge about a certain area before they purchase your product? 

As a closing thought: I guarantee the company that figures out how to keep the premium price of PC's while having the simple marketing message  "This will play your games perfectly" will break into both markets, and may rise as the preferred choice. Dell's line of PC's named Alienware almost had this idea right, but they executed it the wrong way. They released a customizable console (Alpha) that runs on Steam OS (Steam is a online market for games). The problem is the Alpha limits people to only using Steam games that are compatible with it. It is my opinion that having a three standardized computers guaranteed to run games at Medium, High, or Ultra settings would have much better success breaking into the market. Cosmetic customization would help meet the "I am an individual" market of the Computer Gaming community.   

Double I's

A topic that I enjoy musing about on Sunday drives or while strolling down a grocery aisle is: what makes my preferred brands successful? Lets check out this video first.

In this video, Scott Galloway talks about several services I interact with on a daily basis. Snapchat, Facebook, Amazon, Walmart, Apple. All these companies are common but Galloway discusses why some are more successful than others.

Spotify v. Apple Music
Though I am not quite an audiophile, I do enjoy music as much as (if not more than) the average person. Spotify and Apple both have streaming services that allow users to listen to musics from thousands of artists, but I definitely prefer Spotify. Why is that? Well, I enjoy my usual playlist, but I also want to find new music. I find it much easier to find new artists I like with Spotify because they analyze what I listen to. They create a "Discover Weekly" playlist for me to listen to each Sunday to find new music. And as an added bonus, they send me an email at the end of the month telling me my most played songs, the number of unique artists and tracks listened to, etc. It is equal parts interaction and intelligence.

Amazon v. Walmart
No surprise here, I prefer Amazon to Walmart. Though I do a buy some groceries from Walmart, it is rare I venture in there for non-grocery items. Amazon offers 2-day delivering directly to my door which is convenient enough that I do not mind the wait. Amazon shows me relevant items, offers surveys, etc (again). Walmart just feels impersonal and un-tailored like a suit that is "one size fits all".

I know this class is more focused on small scale business ventures, but it seems the underlying point in what we learn is that some principals in business are constant. Creating something for a customer that feels personal and relevant can go a long way to establish your brand. I believe that a company NEEDS to be intelligent and interactive. It is increasingly easy to gather user data, but often times it seems that user data is squandered on deciding what items to stock up on. Inventory is important, but having a better experience for customers can increase your movement of inventory.

Value Propositions

Recently, our instructor went in to more detail about what a value proposition is. A Value Proposition should tell employees, potential business partners, and customer who and what your company is. I decided to raid my pantry to see if I could find any good examples of value propositions:

Telula Green Zing Beverage: Green Zing is a healthy blend of juiced leafy greens and citrus with just a hint of ginger. It's packed with health nutrients, antioxidants, and a crisp, bold taste designed to fill you up with healthy fruits and veggies from the farm. 

What we can capture from this is that 1) they use fresh vegetables 2) it is designed to be healthy and delicious and 3) it can supplement a meal.

Progresso Soup: For over 100 years, our kitchens have crafted honest, soul-satisfying recipes with real ingredients you're proud to serve.

This establishes a history of the company, tells that it is honest (both in ingredients and business), and and says that you the consumer would be proud of the soup. 

Mom Brands (Malt O Meal): Great cereal doesn't have to be expensive. Since 2007, American families have saved over a billion dollars on breakfast cereal by choosing our brands over the more expensive varieties. And they haven't sacrificed taste or nutrition. Maybe that's how MOM Brands has become the fastest growing cereal company in America.

This one is probably the best example. It establishes that their cereal is less expensive but is good and nutritional. The company is family owned and growing quickly. It is a message to consumers and potential partners. 

Obviously, if you are not in the food industry, your value proposition should not sound as appetizing. However, what we can learn from these examples is what kind of message you should try to send. If you company is a clean option like Telula, promote that "value". If you have a history of good service like Progresso, use it. If you are the "less expensive" option, let it be known.

Market Surveys: Speaking to Consumers

In order to fain an understand of what people want or how they feel about certain product and ideas, companies use market surveys to gather data. This data can then be used on advertisements strategies, product development, or establishing a market. While market surveys are helpful, it is unlikely that your small business will be able to afford on of the big marketing firms. For this reason, I have gathered and thought of some ways to do your own market survey:

Email: Probably the easiest and most convenient for both parties, emails can be the "fire and forget" method. Asking customers to leave their email in exchange for small discounts can be a great way to 1) build up your database of potential survey-takers and 2) build customer loyalty. I recommend the email method most. Think about it: how many companies currently have your email?

Telephone: phone numbers are easy to get but more labor intensive. Instead of sending a mass email, business will have to call each number on their list, which takes time. Also, many people forward numbers they do not recognize. Numbers can be effective to gather market information, but it is a longer, more difficult process.

Mail: Probably the slowest method, mail can be used to conduct the same surveys. However, companies must rely on customer to their mail the surveys back or bring them to a physical location. For this method, it is highly recommended to give customers an incentive to do so. Mail can be easy to manage and it relatively easy to send off. The return is largely uncertain.

In-store Survey: a great way to gauge how your customers feel is to simply ask them. Having paper surveys in your store can be a quick and easy way for your customers to give feedback. Unfortunately, the delivery of this is fairly limited. You can only reach the people in the store.

Most important for collecting this data is be openly grateful for what consumers give you. If offering incentives is possible, do it. Keep in mind, only the willing will be giving you information. Sometimes purchasing data or doing independent research will be necessary.

Customer Service

We have all heard about it, experienced it, and may have been a part of it. It seems its now just a business buzz word. So, what is "Customer Service"?

To me, customer service is anything a company does to make a customer feel more welcome and comfortable doing business with that company. It can be anything from complementary robes at hotels to fixing a wrong order at a restaurant. Panera Bread is a fascinating example. One thing they pride themselves in is "Panera Warmth". Panera Warmth is having the right atmosphere, helpful associates, and a devotion to fixing mistakes. For example, if a customer orders a sandwich and it was made improperly, the customer can keep that one and the production team will make an entirely new one for them. Is it giving away food? Kind of, yes. However, the cost of a sandwich is worth preserving that relationship with the customer. Essentially, $1.25 in ingredients can ensure future investments of far more than that. That is smart customer service.

The unfortunate thing is most people do not realize when they are being "served". People may remember good customer service, but they will definitely remember bad customer service. As a college student who looks for deals on books and supplies, I run into companies like Pearson who have terrible customer service. It is a chore to contact them and a struggle to get the issues resolved. To this day, I have several problems I have not been able to remedy because their customer service is just...bad.

Companies should invest heavily into having open forms of communication for their customers. What tends to happen is by failing to correct customer service problems, companies lose even more business for the future. It is not just a buzz word. Having awesome customer service can make or break your company.

Market Differentiation

Discussion

Market Differentiation is anytime a company focus on one or more specific things about their product and tries to use that as their "edge". For example, products use "Organic" or "All Natural" to highlight themselves as the "healthy choice". Game consoles market their ability to play games at higher resolutions or on faster networks than their competitors. You can look at most products and see what they use as their selling point. Sometimes it is as simple as being cheaper, but there are more complex options like a guarantee of great customer service. 

Ideas

For the company that I am developing, I have researched what other companies have done in my field. So far, there are no competitors in the market, at least for the audience I want to capture. So, I have to spend much of my time imagining what their selling point will be. For my product, I can boast that it will be domestically produced, offer a service with the product, and offer incentives to medical professionals. From my reading, I can tell that the other companies doing the research similar to mine are not focused on these 3 areas. 

To differentiate your product, it is important to understand how you are similar and different from your competitors. If you own a small store, advertise your more "personal experience" for customers or spectacular customer service. Basically, be aware of what people do not like about your competitor. 

Observations

Amazon has the infrastructure to offer "free two-day shipping" for their premium members.

Walmart is a large store that offers "convenience" and low prices. Target is a store that offers convenience (same) and quality (different).