Monthly Archives: September 2014

Comcast Hacks its Own Email Service! On Purpose! Really!

UPDATE TO THIS POST – – SOLUTION FOUND!  and not from Comcast.

A helpful reader sent me the following recommendation, pasted below in its poetic entirety.

go here: http://xfinity.comcast.net/adinformation/
sign-in
Opt Out
Turn Off

Done and done! So easy…stop bitchin’!

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He was right – – it did work, very quickly.  Why couldn’t Comcast send this solution?

Original post  (below):

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How does Comcast spell customer?        Apparently, ‘H-O-S-T-A-G-E’.

In a bizarre marketing gambit to generate revenue through its Xfinity email service, Comcast has not only demonstrated that it values advertisers over customers, it has shown that it has mistaken customer captivity for loyalty.

When you have customers in a market where there are available alternatives, you need to do 2 things: a) keep them happy with superior service; and b) try to avoid giving them a reason to switch.

Here’s what I recently experienced:

SmallXfinityAdLargeXfinityAd

  • Without warning, a square advertising banner appeared on the upper left of my screen, covering key email commands (select, delete, refresh, etc). Comcast thus made it impossible to use its own email.  This ad never went away.
  • A mouse-over converted this box into a larger, even more annoying video ad, in effect acting as a palace guard, to ensure that customers couldn’t even try to get to the controls and read their emails.   Footprint of ads shown below.

XfinityOverlap

  • Disabling this ‘feature’ required an email to Comcast, and resulted in a 6-step, byzantine preferences-changing process that ‘may take up to 30 days to take effect’ (see below). What? Complicated process + 30 days to opt out?  Do you want me to switch?

comcast note

 

– Comcast calls this program ‘Segmented Advertising’, and provides an explanation that it tailors ads to based on customers’ preferences. (Not exactly a new concept, but what if our preference is to just get our email?)

ComcastSegmented

The upside-down-ness of this program is hard to believe, and is proof that at Comcast there is some kind of crazy monkey at the steering wheel.

A hacker working for a competitor would be hard-pressed to create a more annoying disruption for Comcast users – and they’ve done it for themselves.

Let’s break this down:

  • The ONLY reason anyone visits an email page is to use email
  • Disrupting email utility therefore eliminates the reason to use Xfinity email
  • An opt-out approach FORCES ALL CUSTOMERS through the exercise of disabling (creating ill will), and forces customers to immediately try out an alternative (Apple Mail and gmail for me).
  • Taking up to 30 days to take effect provides a great trial period for competitive email services
  • And to complete the cycle, fewer users of Xfinity email of course reduces reach and effectiveness of the offending ads

I’ve blacklisted the companies whose ads continuously and annoyingly popped up. For the record, they are:

  • Blain’s Farm & Fleet
  • Walter E Smithe Furniture
  • Howard Jewelry and Loan – The Pawn that Pays
  • Grossinger Auto Dealers
  • McGrath Audi of Glenview/McGrath Acura of Morton Grove
  • Golf Mill Ford
  • Evanston Subaru in Skokie
  • Highland Park Ford Lincoln Superstore
  • Peter Francis Geraci – bankruptcy attorneys
  • Luna Carpets
  • Ambiance Window Fashions

Since I’m not in the market for a car, home furnishings, farm equipment, bankruptcy help or pawn services, I will survive.

Finally, I’m writing this post/rant to share my experience (I was perfectly happy a week ago, mind you) and hope you share it with someone you love.  Especially if they work for Xfinity.

Again, the lesson, said a little differently:  in a world with ready options, don’t piss off your customers.

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For those who are interested, below are screen shots of the process required to eliminate these ads (which hasn’t taken effect for me yet).

OptOut1 2 OptOut3 4 OptOut5 OptOut6

Advertisement

Shoes, Elephants and Michelangelo

A famous and probably apocryphal story relates how in the late 1800s, shoe companies sent scouts to Africa to assess opportunity. All came back and said: “no one in Africa wears shoes – – there is no opportunity” – except for the rep for Bata, who said: “everyone in Africa is barefoot – – there’s a huge opportunity”. Bata shoes are now ubiquitous in Africa.

Bata1

With its vast population, diversity and resources, why aren’t more companies committed to growth from Africa? Why do EMEA business strategies have no patience for the ‘A’? Certainly with that many people, shouldn’t African commerce, like life in Jeff Goldblum’s Jurassic Park quote, “find a way?”

The challenge is daunting, and figuring this one out is above my pay grade, but thinking about solving for Africa can make just about any other challenge seem pretty straightforward.

africa

There are of course very real reasons that Africa is challenging. A Sept 16 scan of Google News stories across 54 African nations (below), reveals overwhelming existential crises such as Ebola, terrorism, sectarian violence, mixed in with a standard dose of President-for-life type scandal (see: Mugabe, Robert), but not many commercial or consumer focused stories. Where much of the developed world has surplus calories, Africa has a basic food (and water) deficit. A quick look at per-capita incomes shows that African citizens are among the poorest in the world. Barriers, indeed.

Yet we are all still more alike than we are different. We all have needs: food, shelter, entertainment, and yes, shoes.  And so within a mass of challenges, there are opportunities.  Bata figured this out long ago – – it saw millions of bare feet, rather than cultural or economic barriers, and methodically penetrated the continent.

The key, as in eating an elephant, is to take it one bite at a time.  In fact, it’s really just another execution of basic marketing – identifying segments, understanding their needs and barriers, and creatively and selectively applying solutions.  Pricing? Access? Promotion? Distribution? Positioning? Unique benefits?  A solution is almost always available – it’s just not always obvious.EatingAnElephant Unlocking this potential may be gaining traction: PricewaterhouseCoopers’s Africa Business Agenda 2014 report was released last week.  The report, comprising surveys and interviews with 260 chief executives in 14 African countries, indicates that CEOs are optimistic about growth despite volatility and uncertainty on the continent.  From Business Report/Africa: “The Chief Executives acknowledge that a lot more needs to be done in terms of transforming the continent’s potential for exponential growth into tangible business opportunities”. There are examples where creative and focused approaches helped realize growth from similarly unlikely places.

  • In India, Colgate has carved out over 55% of the oral care market (~$600 million+) despite toothpaste penetration of only 55% (and only 15% of them brush twice daily), and a per-capita income ranked 120 of 164 countries in 2013 (World Bank).
    • This was done by offering more affordable sizes, and innovating a multi-layer distribution system to penetrate the largely rural population
  • In Mexico, concrete giant Cemex, through its Patrimonio Hoy (‘Private Property Today’) program, has enabled many low-income families to build onto their homes on an installment plan at affordable levels.
    • For example, in this innovative program, one family pays $18 per month for $960 in construction materials, allowing them to add stepwise onto their home.

Whether it is Africa, India or a mass of consumers (or customers) at home, the same principles apply.  Where there is need, solutions are always possible.

Michelangelo

As Michelangelo said: “Every block of stone has a statue inside it and it is the task of the sculptor to discover it”.

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A Day In The Life of Africa – September 16, 2014

Country                                              Story 1                                        Story 2
Algeria                                                al Qaeda                                        Soccer
Angola                                                Sub-Saharan investment             Oil Exploration
Benin                                                  Ebola                                             Trade
Botswana                                           Crackdown on press                     Ebola
Burkina Faso                                      Soccer                                          Trade
Burundi                                              3 nuns murdered                             —
Cameroon                                          Soccer                                            —
Cape Verde                                        Soccer                                         Tropical storm
Central African Republic                 Muslim-Christian violence              —
Chad                                                  Guys named Chad                         —
Comoros                                            Islamic oil deal                   Indian Ocean Comm.
Dem. Rep. of the Congo                    Ebola                                          Mineral dev.
Djibouti                                               al Qaeda                                     Violence
Egypt                                                Fighting Islam                          Muslim B’hood exiles
Equatorial Guinea                           UN Ambass. accused          Call for national unity
Eritrea                                             Leather export trade                   US travel warning
Ethiopia                                           Relations with Egypt                   Egypt opposition
Gabon                                                Soccer                                            —
Gambia                                              Anti-gay legislation                       Ebola
Ghana                                                Ebola                                           Soccer
Guinea                                               Corruption                                    Ebola
Guinea-Bissau                                   Ebola                                           Political instability
Ivory Coast                                        Soccer                                             —
Kenya                                                Cost of living                          Investment/trade
Lesotho                                             Coup attempt                                   —
Liberia                                               Ebola                                                —
Libya                                                 Migrant boat capsizes                    Islamic terrorists
Madagascar                                      Lemurs                                            Locust infestation
Malawi                                               Political scandal                              Soccer
Mali                                                    al Qaeda                                          Sectarian violence
Mauritania                                          Moving weekend to Fri/Sat              Business/trade
Mauritius                                            Foreign investment                          Murder invest.
Morocco                                            Anti-racism demonstrations                —
Mozambique                                      Elephant poaching                           Political rivals
Namibia                                              Foreign trade                                    —
Niger                                                  US drone base                                 Baby trafficking
Nigeria                                               Building collapse                              Ebola
Rep. of the Congo                           Ebola                                              Political corruption
Rwanda                                             Genocide 20th anniv.                Rebuilding efforts
São Tomé and Príncipe                     Infrastructure dev.              New: cellular roaming
Senegal                                             Ebola                                               Soccer
Seychelles                                         Tourism                                            Protected species
Sierra Leone                                      Ebola                                                —
Somalia                                              anti-al Qaeda/ISIS                           anti-Shebab
South Africa                                       Pistorius trial                                    Rugby
South Sudan                                      Foreign aid worker ban            Internal peace
Sudan                                                Condemned Christ. woman         Peace with S. Sudan
Swaziland                                          UK power investment           Royal family antics
Tanzania                                            Foreign investment                       Infrastructure
Togo                                                  Qatar investment                          Soccer
Tunisia                                               Economic pressure                         Security
Uganda                                              Foiled terrorist attack               US warns Americans
Zambia                                              Political leader dies                          Soccer
Zimbabwe                                         $3B mining deal w/Russia                  —

The Loyalty Program That Will Survive the Apocalpyse – – and Why

The future of shopping and loyalty is mobile – – we are continually reminded about this.  Digital loyalty programs can leverage vast storehouses of data and sophisticated analytics, and can deliver individualized promotions at a time, place and shopping occasion that optimizes ROI.

JewelOscoPromoSo why the heck is there, sitting on my kitchen counter, a sheet for gluing small stamps received with each shopping trip at the local Jewel (Albertson’s)?  (If enough stamps are collected, a piece of Cuisinart cookware can be ours!).  

After all, this is an utterly low-tech, old media, one-size-fits-all loyalty promotion here in the digital age.

Ultimately the reasons for this low-tech promotion’s survival are related to its low-techness, and can be helpful to more tech-driven modern programs.

S&H GreenStamps

SinclairS&H_greenstamps

Hard to believe but this is essentially the same concept as S&H Green Stamps, which debuted over 100 years ago and were highly popular from the 1930s to the 1980s.  You got stamps when you bought stuff, filled out books (typically 1200 stamps) and could then win prizes from a catalog.  Stores that gave out these stamps used it as a competitive advantage.

And this is not an isolated grocery type program – – McDonald’s famously runs its Monopoly program, where customers get game pieces on everything they buy, and can win big prizes if they collect the right stamps.

mcdonalds-monopoly2013-300x300McDonalds_monopoly_pieces

 So what accounts for these games’ popularity? 

1) Simplicity – no apps, no logging on or passwords, no points to track online, no devices at all.  Just shop, stick, rinse and repeat.  It’s likely that there is greater appeal among older users for some of these promotions, but that doesn’t explain the McDonald’s popularity.

2) Can visualize success – each new stamp makes progress tangible and encourages continued participation

3) User involvement – Unlike an automatic electronic promotion, manually applying the stamps actively involves the participant, much like adding the proverbial egg to the cake mix turned Mom into a baker – increasing personal commitment level.

4) Closed-ended – a finite promotion period, so no long-term commitment or long wait for a payoff

5) It’s fun! – there’s an excitement to participating in these promotions!  It’s not just a mercenary exercise in repetitive purchases; there’s often an element of chance (and like gambling and golf, hope is what brings people back in the face of continued abject failure).

I’ve not seen any statistics about whether any of these promotions is more effective at driving shopper loyalty than any other.  I know that stamp programs definitely impact our shopping habits at home.

In any case, it’s clear that digital/mobile is the future of loyalty programs, even if the transition will take some time.

But some of the factors that make these old-school promotions popular can help make future loyalty efforts more successful.  

And until tech can replicate all of the above factors, it’s likely we’ll be shopping, sticking and winning, well into the future.

A Note To My Subscribers re: Links

To those who have subscribed to The Armchair MBA blog:  Thank you!  I continue to work hard to keep your eyeballs.

I’ve just learned that in some browsers the links I embed in my posts don’t show up.  Today’s post, for example, was all about some rather shameful WalMart TV commercials but for some people the links didn’t appear at all.

For future posts, I encourage you to go to http://www.thearmchairmba.com (bookmark it if you feel particularly tech-savvy) – –  I typically put several links in each post.  This way you’ll get every last drop of goodness from each post.  In the meantime, I’ll try to figure out a workaround.

www.thearmchairmba.com

Thanks.

Dave

WalMart Sets Nutrition Back 50 Years With These Spots

I don’t remember where I was when I saw the first of these spots, but it smacked me upside the head like a pouch of pasteurized cheese food product.

In the sausage-making process wherein retailers devise merchandising schemes and then pressure manufacturers to fund them, WalMart seems to have inadvertently sewn together a nutritional monster of an advertisement (two, actually).

The tagline on the spots: “Get a Smarter Start to School” couldn’t be more off the mark.

These ads take us back to a time when nutrition is an afterthought at best, and where the convenience of instant food is paramount.  
Sorry, but quick + non-nutritious ≠ smart.

UnhealthyWalMart

The setup:

A typical impossibly lovely and fit TV family is gathering before dinner and Mom asks what they want.  Of course the young kids, being kids, throw the long ball by asking for their favorite processed foods:  Hot Pockets and Chef Boyardee.  The husband, being, well, a guy, goes to his mental bacon file and all he can come up with is…Bacon Mac and Cheese.
Mom, the savvy and conscientious gatekeeper, decides she can easily avoid hassle and effort by immediately capitulating; three package openings, three microwave beeps and a token salad later, dinner is served.  Mom is hero.

No problem, right?  Well, let’s assess the nutritional damage (Daily limits according to Netrition.com).

WalMartDinnerNutritionals

(We’ve assumed the young lady would eat one Hot Pocket, the young man would eat one can of Mini Ravioli and Dad would eat until interrupted by dessert).

In terms of calories, these are not horrible (but also don’t include other things served with dinner).  In the case of protein, they perform well (particularly Dad’s, because bacon).  On the other hand they provide a fairly heavy dose of saturated fat, carbs and sodium.  And not much fiber.  So nutritionally, this isn’t particularly ‘smart’, and in restaurant terms, steers more toward Bloomin’ Onion than Chez Panisse.  It is definitely not a model for a balanced, nutritious meal.

More insidious is the positioning of convenience above everything, where instant food, regardless of its merits, is the solution to ‘what’s for dinner’.  The entire family seems to have completely slept through years of nutritional messaging, PSAs and school programs, and I’m guessing Michelle Obama would not endorse this spot.
The audience gets a great reinforcement of instant food as good habit, and a great opportunity to model simple, nutritious eating is missed.  Not good.

There is a breakfast companion ad in this campaign, where the featured items are Froot Loops, Frosted Flakes and Jimmy Dean’s Pancakes and Sausage (on a stick).  No additional comments necessary, except if the same family is bookending its day with WalMart’s meal suggestions, that puts a LOT of pressure on lunch.

On the other hand, it’s probably not easy to match program participants to be nutritionally balanced.  And at the end of the day, business is business.

Check out this Kraft Mac & Cheese ad from the 1950s, and hang in there for the hot dog meal suggestion.

We have some significant weight/health issues in this country, and I wish we could do better.