Tag Archives: AirBnB

The Pain of Not Having Hand

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Don’t you hate it when you want your money back and have no leverage?  Explanation of this (and ‘Hand’) follows.

This is about companies who put barriers in place to enable them to hold onto your money until they wear you out.  A war of attrition.  Things like unreachable customer service, phone personnel with no names who cannot be recontacted, endless phone wait times, etc.   We’ve all been there.  Some of you are probably on hold with someone right now!

My goal is always to have a ‘So What’ in my posts but other than stopping transacting altogether, I am not sure how to preemptively protect against this!  So I’m open to suggestions.

So that’s your challenge, dear readers.  For the good of humanity, help us find a solution.

The basic model has been around:  exploit human nature.

gift cardskitchen junk drawer

It used to go something like this: you get a gift card and the issuer gets the revenue and records future redemption as a liability. You put it in the kitchen ‘everything’ drawer next to your frequent shopper cards from 1995, never redeem it, company books revenue with no expense. Nice! Called ‘breakage’ in accounting, commonly known as ‘slippage’ in consumer goods.  Coupons are issued, people don’t bother redeeming, etc.

This new version is more insidious and aggravating. As George Costanza might say, we have no hand!  And they know it!

Here’s how it works (examples below):

  • You transact something online
  • You provide payment via credit card
  • Something goes sideways, not due to anything you did
  • Supplier has your money, and very little motivation to give it back
  • You now spend considerable unplanned time and energy fighting with the supplier to reclaim your own money

Case study 1: Booked AirBNB for about $1600 for a week; they (and owner) got payment in advance. Upon arrival, property has significant water leaks, which are being repaired, rendering it uninhabitable. AirBNB is contacted, situation explained, they offer $400 refund afterward and refuse to discuss the matter further.  Boo, AirBNB!

Case study 2: Rented car with GPS. GPS didn’t work. Took over an hour and several emails just to get back the $30.  Boo, Fox Car Rental! 

Case study 3: Moved across the country. $17k total bill, which required payment in full ahead of time (apparently this is standard operating procedure, which is itself worthy of a separate conversation). Move happened 3 days late, which created additional expense for friends who flew in to help with the move, and which technically qualified as a ‘late delivery’ by the mover.  Several items broken. After huge effort and many hours and emails, result was a check for $20 we got in the mail. Zero hand in this one.  Double Boo, North American Van Lines!

Case study 4: WSJ inexplicably stops being delivered one Friday. Go to handy online notification area but service is down. Chat is not manned yet (it’s before 8). Phone line also not available. Paper doesn’t come on Saturday either, make several online entreaties to both email and chat. Now start getting 2 (identical) papers on Monday. Issue finally settled on Tuesday.  Boo, WSJ!

I could go on.  I’m sure we all could.

In fairness, these infuriating episodes are balanced by the transparency and customer satisfaction focus of many excellent online retailers, who understand something about customer satisfaction and loyalty.

In all of the cited cases the supplier messed up, but the burden was on the consumer to spend the significant effort to (maybe) get a satisfactory reimbursement.  There is no Online People’s Court to help resolve these issues.   I personally resent having to spend precious time just to claim what is mine in the first place!

Sure, over the long haul corporate reputations can be harmed, penalizing bad behavior.  But I don’t want to wait for the long haul.

How can we fix this?

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Battle of the 2017 Super Bowl Ad Reviewers

Battle of the 2017 Super Bowl Ad Reviewers

Last year The Armchair MBA presciently foreshadowed our country’s potential slide into anarchy – – and we take no pride in noting that we appear to have been right.

Be that as it may, this glass case of emotion that we call the US must go on, and of course the Super Bowl is still the tentpole of our national identity.  So in the spirit of national unity, we herewith put forward our ratings and reviewer compilation of the advertising from this year’s Brady Bowl (or as some might call it from the Falcons’ perspective, the choking chickens Bowl).

super-bowl-montage
And as a perfect reflection of society, there is very little agreement among the dozen major reviewers we looked at.  This year we’ve added a feature of averaging the critics’ scores so you can see how YOU stack up.

At the bottom of this post is a chart comparing major reviewers for all the spots run during last Sunday’s game.
NOTE: ads are grouped by my rankings of green/yellow/pink and are now ranked by the reviewers’ average within those groups.

A few observations (all Super Bowl ads can be found here):

NO ANIMALS THIS YEAR!  Unless you count the dead (Spuds McKenzie), the 2-dimensional (Yellow Tail wine) or the sidelined (Rob Gronkowski).  I miss these furry diversions and was hoping the lack of reliance on a lowest common denominator would indicate lots of great spots.  Alas, twas not to be.
But there were some themes at work…

itsa10

High concept does not necessarily make for great advertising. The Armchair MBA is not a fan of co-opting a high-minded theme just to make a statement- often comes off as stilted or forced.
– Audi, 84 Lumber, Budweiser, AirBnB, and It’s A 10 Haircare (I know – who, right?) all went for the high road by tying into the topical (often sideswiping the President, the Real DJT).
Unfortunately, for this image-driven work to be effective it needs to create a strong link to the brand among a group that might be interested in the product (this is advertising, after all).
– It’s A 10 Haircare is a new brand and while their ad was cheeky and visually interesting, they could have done more to tell us why we should care.
– 84 Lumber is a regional competitor to Home Depot and Lowe’s and ran an emotional immigration spot that, partially due to network censorship, required a visit online to see the conclusion.  The average demo for this vertical is male/50, not necessarily a strong bet for following up online or changing their go-to building supply outlet without a reason. It did generate brand awareness, though.
– Audi made a passionate pitch for gender pay equality (with no apparent reason given for why this is related to Audi), then undermined the message by putting Dad (not Mom) in the hot sports car.

walken-timberlake

You simply cannot go wrong with Christopher Walken. He did it for Kia Motors last year, and this year changed sponsors to team with a deadpan/mute Justin Timberlake for one of the best-received spots – for Bai Antioxidant Drink.

mccarthymalkovich

Actually, celebrities were out in force, probably to the greatest degree ever, and generally to good effect.  In this high-stakes, high-octane environment, celebrities provide one of the only reliable ways to guarantee eyeballs. In addition to Walken:
John Malkovich’s arresting visage gave Squarespace breakthrough
– The Coen Brothers directed a Mercedes-Benz spot featuring Peter Fonda
– Kia traded Walken for Melissa McCarthy (and a few draft picks) for a generally entertaining spot for the new Niro
– A newly nerdly Justin Bieber drew attention for T-Mobile in his own polarizing way
– Other celebrities included Terry Bradshaw (Tide), Cam Newton (Buick), Kristen Schaal (T-Mobile), Lady Gaga (Tiffany), Martha Stewart and Snoop Dogg (T-Mobile), LeBron James (Sprite), Morgan Freeman (Turkish Airlines), Tom Brady, even Bill Nye the Science Guy!  And the list goes on (including a slew of very amusing high school yearbook celebrity photos in a Honda spot).

honda-yearbook

Generally well-accepted spots had breakthrough and were straightforward (usually with some humor)
Honda, Bud, Avocados from Mexico, Skittles, Ford made this list.  Inexplicably so did a Bud Light spot featuring an exhumed Spuds McKenzie.

bieber

There were also some universally unloved spots, mostly due to lack of wit, relevance or originality.
American Petroleum Institute (paaaarrrty!) headed this list, followed closely by the generic twins Fiji Water and LIFEWTR, Yellow Tail Wine, KFC and Michelin.

Finally, our annual check-in with Weather Tech – for this, their 4th effort, they did kick back and have a beer (not while driving) and the result was a looser, more fun spot.  Well done.

This table compares 12 major reviewers, who clearly do not all see things the same.  (did you really expect Vogue to feel the same as the WSJ?) 
Simply click once or twice on the table
 to make it readable.

superbowl2017

Footnotes:
My evaluations are generally based on the Kellogg ADPLAN approachAttention
–Distinction
– Positioning
– Linkage
– Amplification
– Net Equity – – along with some personal gut feel.

Reviewers and links to reviews (if you were involved in any of the reviews and feel I got something wrong, let me know):
Kellogg Graduate School of Business – Northwestern University
Adweek
Ad Age
Bleacher Report
Chicago Tribune
Entertainment Weekly
The Guardian
New Yorker
USA Today
Variety
Vogue
Washington Post
Wall Street Journal

That’s it for this year – – as always, with The Armchair MBA, you get what you pay for!

Plus, I want that new Alfa Romeo.

See you next year!