MBA Geek

It’s been interesting to watch Apple’s stock price over the last few days and over the last few hours since the iPad has been announced. Yesterday was characteristed by a steady increase in price, probably as the market started to feel the anticipation around the product launch. As the product was being announced the market dipped as it didn’t seem as exciting as everyone thought. However, when the price point was announces; a price point that would certainly make the product was very attractive to consumers; the price rose once again.

Product announcements can make or break a company. You can imagine what would happen if a company announced it had a cure for Mesothelioma cancer, only to be exposed as a fraud a few days after. It would probably be quite hard to recover from something like that. In the meantime, we’ll keep an eye on Apple and see what happens to their stock over the next few days, as the industry starts to get their hands on the initial devices.

I’ve had a flight cancellation with RyanAir recently and it got me thinking about how much low-cost companies actually save by removing the service element from their offering. Traditionally, companies have always sought to minimise costs and increase efficiency; whether it’s by reducing product complexity or using call center outsourcing, but doing so by removing the service element was a pretty bold move. The fascinating thing is that the net result has been the usurping of the incumbents and the emergence of a completely new model for flying.

It does turn the whole game on its head and opens the door to a rethinking of other sectors. More importantly, it raises an interesting question:

Is the customer still king? Or are cheaper prices more important?

photo credit: kagey_b

If you’ve ever had to travel for business, you know all about the risk of luggage going missing on your trip. But you don’t know the real dismay and the sinking feeling in your stomach that comes from realising your bag hasn’t made it. Most of the time, your bag gets found, but sometimes it doesn’t and you can kiss all your belongings goodbye. You may get something back from the insurance, but the sentimental value of some items just cannot be replaced. I’ve had my luggage lost a couple of times so far and it’s always a nightmare dealing with insurances, trying to find receipts of what was in the bag. Better if the bag wasn’t lost at all.

That’s where ReboundTag comes in. I received one of their tags as a sample to try and I must say I love the idea behind their service. They send you a special tag that has a barcode and a human readable number on the side. It also has two types of RFID technology embedded in the tag which airport scanners are designed to read. Once you receive your tag, you sign up to their website and leave your details. All that’s left is to affix the tag to your luggage and wait for the worst.

If you’re unfortunate enough that your bag goes walkies, this time you have a fighting chance. If the bag is recovered, the tag will point the finder to ReboundTag’s “I Found Something” page where they can key in the tag details and send a message to the tag holder (me in this case). It doesn’t guarantee that your bag will be found, but it does help return it to it’s rightful owner. It gives an extra level of comfort. Don’t get me wrong, I’d still keep any jewellery, MP3 players or phones on my person, but at least I know my bulky items are just a bit safer for the tag. Great idea!

Interesting experience a couple of days ago when we placed an online order on Marks and Spencer‘s website. We ran into a problem where we had a couple of coupons to use and the website would accept only one. We sent an email to customer services and they took care of the problem for us.

The really interesting thing was one line that they added to the email response they sent:

Thanks for getting in touch and I must compliment you on your choice in kids wear.

I found that single line awesome. It wasn’t just a thank you for communicating with them. It showed that someone had taken the trouble to actually look at my order, and note what sort of products where in there. It added that touch a touch of personality to the email and gave it that human touch.

It doesn’t matter if you sell cheap clothes, or the top of the line walk in bath, adding that touch of humanity to your online presence can add that touch of class that will keep clients coming back for more.

Have you ever considered that your clients may get the wrong idea of what your business is all about? Perception is pretty important and the impression that clients get of you can be tantamount to getting new business. Whether you’re talking about your store front, or even something as simple as your office supplies, all aspects that your clients meet should have a consistent image that reinforces your brand.

Can you think of any good examples of this?

I came across a great tweet today by @KellyShibari who posted a really great snapshot of the web stats of a website showing the effect of some Social Media promotion she did. Here’s the schematic:

Notice the stats for August are way higher than any of the other months. This was accomplished thanks to the work Kelly put in (which you can read all about on her post), but it’s a really good example of what can happen when you start using the tools at your disposal.

So, how can Social Media help a business? Well, building a business online is no different to opening a retail outlet. But when opening an outlet you get to choose where it’s going to be. Location is paramount to getting the traffic you need and that traffic is the lifeblood of your business. The situation online is totally different. All websites are born intrinsically equal; it doesn’t matter if you’re a purveyor of fine office furniture or if you sell real estate on the moon. Traffic is still the life blood of the business, but the rules are different. You need to pump effort into getting people to your site, building up relationships and making sure they come back. Social Networking gives you those tools, so make sure you get your hear around them today.