Oct 28, 2012
I’ve finally cracked it. I’ve been looking for a way to grow companies that doesn’t involve creating promoters. It must be some unique form of advertising model, because companies spend so much money on advertising that it must work better than customer experience, right? Otherwise, it would make sense to plough the money into something boring like better product, shipping, service (yawn). Nowhere near the fun of showing us a catchy Super Bowl ad!
It’s going to involve some kind of enticement to get customers to try products at a massive discount. Once through the door, they will convert to full paying, profitable lifetime contributors. It’s like advertising – doesn’t rely on flakey word of mouth – only different.
Fingers crossed for the Giants tonight!
Oct 29, 2012
Despondent! Turns out (as usual!) someone thought of it before me. In fact, worse than that, several people did and convinced investors to give them hundreds of millions of dollars! That could have been all mine! Can’t believe my bad luck. Some company in Chicago called Groupon and, worse still, they seem like they already went public.
Oh, insult just gets added to injury. The have competitors that are doing the same thing. And it’s a brilliant idea: entice customers to club together to purchase at low price, then present the vendor with a whole group of customers all of whom are price driven, discount driven bargain hunters! Just one thing concerns me. I wonder if customers who are attracted by these deals turn out to be promoters when the deep discounts stop? Or even customers? Seem to recall some study that showed that credit card customers switch to detractors at the end of introductory discount deals. That doesn’t sound good. Well, no worries, that would be down the road anyway, as long as the initial group pours in, business looks good for now!
What a brilliant plan.
What about those Giants! Wish I understood baseball. Seems like cricket, but with older looking uniforms.
October 31, 2012
Well, wouldn’t you know it? Stole a copy of Dad’s Wall Street Journal this morning and it had some article (of course they charge money. Crain's Businessthey want you to pay for ( about how, apparently these kinds of companies are challenged to keep their business growing. What caught my eye was some comment the journalist-chappie made:
“In addition, it is still unclear if daily-deal customers can be reliably converted into repeat customers paying full price… the daily deal is more about promotion than changing the nature and productivity of online retailing”
Hard work writing these quotes out in full, Diary. But you get the gist. Maybe companies who create regular price promoters will realize more value, who knows?
November 1, 2012
Woe is me! It feels like Day of the Dead around here. I ate all our Halloween candy (bought at a discount, of course) and have nothing to show for it except an upset tummy. At the least the Giants parade lifted my spirits. No school today!