Jeff Pittelkow's Blog

Sep 25

5 things big business doesnt know

Posted by: Jeff Pittelkow Print PDF
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Every once and a while, a trend comes along that changes the rules. There are two responses to these trends 1) ignore it 2) fight it and 3) realize it's potential and jump on it. The internet is one of these trends. In fact, the internet even has it's own trends associated with it. However big business still doesn't seem to realize a lot of things about the net. These things are obvious to the consumer, but they defy all that big business knows, and they don't seem too willing to learn.

 1) Unless you sell a product, your web site better be free. Simple enough right? If what I pay for i cannot download or have shipped to me, don't make me pay for it. The internet is about the free exchange of information.

Well, it appears that major TV networks, news organizations, and a few other information sites still doen't seem to understand this philophosy. Sure, they consider the news they provide as a product, i get that; but when was the last time you paid for CNN? Never right? You pay for cable, not CNN itself. So why did CNN think that people would actually pay to see CNN video online? The Post just realized the stupidity of paying for online content, in fact, so did CNN, but why did it take so long? One would think that a business that is supported by ads would just utalize the same concept on the internet.

2) No, you don't need your own social network. Okay, so social networks are the it thing. Web 2.0 and all that. But do we really need memberships at Hey!Neilson, NBC's site, on top of digg, Facebook, and myspace? It seems to me that scattering the market into a million little pieces just makes you loose ground. Why not go to FB or MySpace where your audience already exists?  

3) Just because the .com bubble burst once, deosn't mean it can't happen again. I spend a decent amount of time reading internet marketing blogs. About once a day I read that some random company, usually a new social network or web 2.0 driven site, just recieved $30 million or so on this round of funding.  We are sinking more money into the net now than we did then and guess what, we are going to have the same result. I know what you investors out there are saying: "Well 10 years ago I was dumb enough to sink millions into some 23 year old kids idea that I knew nothing about but promised a good return based on faulty AD supported theories. I won't make that mistake again. I'm going to sink my money into the brain child of someone a bit older and experienced. My new guy is in his early 30's and this is social networking, the new it thing. See how good Facebook is doing?" Well guess what there mr. moneybags, look at the age, it's the same freaking guy and a spin on the same idea. Still ad suppported, still no market, still investing in the faulty promise of a new fad.

4 ) Consumers are smart now. Even four years ago, people had no expectations on the internet. Most people who were above the age of 35 were plain scared to use the internet to buy things. "Won't my credit card get stolen? What about ID Theft?" So when they jumoed online, they found sites they trusted and lived with whatever the site offered.

Well, times have changed now. Four years ago I had to hold my then 62 year old dads hand to make an online purchase or sell on ebay. Now that he's 66, he shops online daily, does research, and sells a lot of old crap from the basement on ebay. So what's my point? Simple, expectations are high now for e-commerce. There has been a set of unwritten standards that consumers subconsiously know. These include the following:

  • If the site looks professional, they are a pro outfit and i won't need to worry as much. 
  • I should be able to see an order history
  • I should be able to track my order with UPS or Fedex
  • I should be notified whe nthe order is shipped
  • I Am going to read reviews on the product before I buy it. If I can read them on your site, i'll buy from you
  • I want to pay with paypal or BIll me later or some other credit service
  • I want to choose my shipping options because i may need it tomorrow, or I may not be in a hurry.
  • I better see product images, and lots of them

 

SImple enough right? So wh yisn't this standard practice everywhere?

5) Not only is the internet not going anywhere, it's changing society. A lot of people like human interaction. Whether this is face to face or over the phone, people like to be treated on an individual basis. However this is changing. Aside from price, the number one reason people shop online is so they don't get hassled by sales people. This idea can be applied to both the internet and instore policies.

A few weeks ago, I wanted a joystick. So I went online, researched, found prices. I decided i wanted it today, so I went down to Best Buy and bought it. With shipping, it was the same cost to buy instore so whatever. Anyway, I go, get it off the shelf, look at all the LCD's cuz why not, then go to checkout.

As I get to my turn the clerk says "Find everything alright today?" "Sure did" I replied. (what I really wanted to say was "Hell no jackass. One of these days you'll carry a 70in Plasma TV for $500 equipt with full HD with a lifetime full warrenty that covers a replacement if in 20 years I decided to throw it out the window on purpose." But i was nice)   

Anyway, after our exchange of pleasentries, he says "is this all for you?" (i'll save saying exactly the answer in my head, but it was something along the lines of "didn't you kind of just ask that") "Sure is" I said. The rest of our conversation went like this:

BB: Would you like the extended warrenty?

Me: No. 

BB: You sure? It covers if anything at all gets broken. Buttons, the stick itself, the cable

Me: Ya, the answer is still no

BB: do you have a rewards card?

Me: No

BB: Would you like to sign up for one today? IT says you x%

Me: No

BB: would you like to fill out a subscription to Sports Illistrated?

Me: No

BB:  Can I have your phone number?

Me: No

BB: We use it to (Random generic thing)

Me: Still no

BB: Okay, then your total is XX Swipe your card there. 

 Now, I shop online to avoid that crap. I'm not going to say yes. I know the extended warrenty gets used like, 5% of the time and of that 5%, only 20% of the crap reported is covered. So hell no.

My point is this, people who shop online want all the information online. They don't want to call. They don't want to email. They don't want to talk to a sales rep. They don't want to go to your brick and mortar store. They want all the information to make the purchase given to them online, then they want to make that purchase online. End of story. I send you my credit card info, you send me my joystick. Business at it's most simplistic. Maybe this wouldn't be the case if you didn't over burden them in the store, but you did, and they have reacted by going in the opposite direction you want them to go. You added one to many seams in the process. To quote Seth Godin, "Seams help you keep a grip and can be useful" but remember, thats only for the consumer.