Group items tagged

1. Customers Care More about Service Quality and Attitude than about Service Speed

A recent Gallup study reveals that when it comes to memorable service people tell their friends about, it’s more important that the service provided feels “thorough” and friendly, rather than quick. This was especially true for service in premium or prestigious markets, such as customer support at a bank.

Not only that, in a Customer Experience Report by RightNow, researchers found that the #1 reason customers would abandon a brand was due to poor quality and rude customer service, which were cited 18% more often than “slow or untimely service.”

So instead of launching a multi-million dollar ad campaign to bring in people, my gym implemented a growth hack. They turned customers into marketers by incentivizing them to bring in a friend. Then the friend possibly could become a member. The math works out for them as well. Let’s break it down: T-shirts ($3 each) x 2 = $6 Complimentary lunch = $0 A total of 100 members bring in a friend. The total cost of the promotion — $600. The result is that 3% of the 100 members convert their friends to members at $55 per month for each membership. The total ROI in the first month — $165/$600.

The promotional cost for each customer is very cheap. The t-shirt probably cost a few dollars, and the complimentary lunch probably was a gift certificate to a local restaurant that cost the gym $0.

Everything we’ll be discussing has one thing in common — incentives. Economists almost universally agree that people respond to them. Businesses should give their current and prospective customers an incentive to act on their offer. It has to benefit both parties or it won’t be nearly as effective. Not all the incentives are monetary, as we’ll see.

1) You are talking too much.. 99% of the process of getting feedback is listening. If you want some great feedback on your website, shut up and listen.

2) You are getting mad at your customers for feeling one way or another. Customers are allowed to feel the way they feel. My above anecdote is a classic – she got angry for me not liking the font option, instead of making a note to herself “client can’t find the font change option – are other having a hard time finding it?” I also see companies get hung up on this mistake a lot with pricing. Business: “How much would you pay for this?” Client: “I wouldn’t pay for it but would use it if it was free.” It isn’t their fault that they did not understand the value of paying for it.

3) You are not understanding or caring about the customer’s WHY. You must understand a customer’s WHY. Why do they feel the way they do? A good example with a recent client: the feedback from not one but three testers: “I hate that color purple.” Ok, so you could take that and change it to orange, but you don’t even know why you are making that change. Instead, I asked why, and got back “because the font is hard to read at the top.” Ok. now we have a readability problem, not a color problem. Much clearer issue to fix.

Ramit:  I want to emphasize a couple of things you mentioned. One, if you’re charging 5, 10, 20 bucks an hour, it’s very, very difficult to go from that to charging 200, 300 an hour or 10,000 a week.  It’s very difficult to make that transition. If you do it when you come in, that can happen. But going from one level to another is extremely difficult.

Thumbnail sketch: You can get from $20 to $100 by getting serious as a professional, and you get from $100 to $200 by getting really good as a professional (or working in a high-demand speciality), and then somewhere between say $150 and a weekly rate in the tens of thousands you probably repositioned your offering such that it is no longer directly comparable to what you were doing before.

Can you sell Rails at $50k a week?  I'm going to go with "almost certainly yes."  I think there are probably people who do that, and if you listened to them pitch clients, they would speak a language that holds very little in common with what you hear from a $100 an hour Rails developer.  Want to speak that language?  Keep reading for some thoughts.  (It will also help to get pretty darn good at Rails... though I think most people in my audience probably overestimate how skilled you have to be to move up that ladder.)]

"I always thought advertisers were master manipulators / slick bamboozlers / out-and-out liars, but what struck me most in my time here was how earnestly everyone was trying to understand and help consumers." They're nice about it, but that's the idea.

Given that sincerity itself isn't usually very funny, dramatic, innovative, saucy, scene-stealing, or luxurious, it is rarely chosen as the animating spirit of our end-product. But it is totally embedded — indeed, institutionalized — in the process of making advertising. And there's a very good reason for that: without a sincere curiosity about and empathy for the people we hope to reach, we stand no chance of developing a compelling conversation with them. Indeed I would argue that sincerity drives the success of the best and most successful marketing, no matter what the execution may turn out to be.

As Ogilvy's lead for ethnographic research, I head a small team that makes documentary videos about the lives, habits, values and affinities of various groups that our clients hope to reach. In this role I have the rare opportunity to parachute into an incredible range of micro-worlds, both within the US and globally. They are invariably FASCINATING, and so we take bets on when this seemingly endless stream of human interest will run dry — anticipating a day that must come, when one of these projects turns out to be boring. Not too long ago we thought we'd finally arrived: an ethnography of suburban lawn-care. Had to be deadly, right?

1. 80/20 rule from Noah Kagan Appsumo’s founder, Noah Kagan, notes that one rule of thumb that they follow is to use 80% of their marketing budget for things that are working and 20% on newer marketing initiatives. One more thing: they go all in when they find marketing channels that work. You can watch one of his presentations where he shares his experiences of growing Mint, Facebook, and AppSumo here.

2. Communicate, communicate, communicate At Treehouse, we work remotely and as you might imagine. There are some that think there is no replacement to working in person while others support it. For us, we’re half and half – we have an office in Orlando and we also have a team up in Portland. The rest of us are distributed. But hey, it works because we communicate a lot. If you don’t feel like you are running enough A/B tests, speak up about it. If you feel like the team needs more developers, speak up. If you feel like an executive decision is going to cost the company money in the long run, talk. People might not always agree with you but it’s your job to communicate. You’re doing the company a disservice if you aren’t being honest. To get you started, here are some tools we use to communicate: Campfire Skype Google Chat Google Hangout GoToMeeting – we use GoToMeeting for our leadership meetings. It’s very simple to use and the video quality is pretty good.

3. Be a voracious reader Although there’s a lot of crappy content circulating the internet, there’s always going to be someone you can learn from. The key is being able to discern signal from noise. For example, if I’m looking to learn more on conversion rate optimization, there are great blogs such as Unbounce, ConversionXL, KISSmetrics, SEOmoz, and more. Just look at the detailed blog posts that they write: 10 Useful Findings About How People Use Websites – ConversionXL 5 Landing Page Conversion Killers – Unbounce The Ultimate Guide to Conversion Rate Optimization – SEOmoz If your goal is to squeeze every penny out of your website, you should be reading conversion rate optimization articles like the ones above. They cost no money to read and stand to help create original ideas that will eventually create more profit for you. This applies to any topic you’re interested in. Using the right tools can go a long way in helping you save time. If you’re on the go and don’t have time to read, you can use Pocket. To help you find relevant topics/articles via Twitter, you can grab curated lists using Listorious. Finally, I like picking off interesting topics from Inbound.org or Hacker News. Key takeaway: don’t read every single blog out there. Find the ones that actually add value and follow them.

Habits vs Behaviors The concept I tried to make sense of, was the exact relationship between habits and behaviors. I realized habits are born out of behaviors (as a function thereof). This logic allowed me to connect the dots from Customer Development (observing behaviors) to Product Development (hacking habit loops). Lean Startup is at its best when we turn a behavior into an habit.

Habit Design & Desire Engine Nir Eyal, a Stanford Lecturer on behavior engineering, addresses this very phenomena, which he demonstrates through a concept called the Desire Engine. Note that his model & visualization is very similar to Duhigg’s Cue-Routine-Reward.

Launched in 2007, Airbnb has grown to become a $1 billion company. When Airbnb launched, they faced a tall task: How do we get people to learn about and trust our little-known website? In other words… How do we acquire users? So what approach did they take? Post on Craigslist! In a story posted by Dave Gooden, he finds out that Airbnb would contact people who were offering their homes to rent on Craigslist. The email would come from a random person (who was really from Airbnb) telling them of a “lovely site” known as Airbnb. Here’s a sample email: