#followfriday Suggestions – @OxfordCityGuide

#followfriday (or #ff) is a tradition started by Micah Baldwin (according to Mashable), whereby you suggest a Twitter user you think your followers should know about. It is important to provide information about the persons you are naming, to help others decide whether to follow them. Enjoy!

It’s the start of a new academic year and, with it, new students and faculty, and their families, moving to Oxford. Therefore, my recommendation this week goes to @OxfordCityGuide

 

Following @OxfordCityGuide will help you keep up to date with the many concerts, exhibitions, markets and other cultural events in Oxfordshire. There are also retweets of useful information like traffic updates, weather forecasts or police alerts. And you can find links to very useful reviews of local places and events. @OxfordCityGuide helps you make the most of this fantastic city.

A tale of two car insurance companies – Part 1

I recently had two very different experiences of dealing with insurance companies. In this post, I talk about how one of those companies got it so very wrong.

The letter
Zurich sent a letter reminding us that our car insurance was due for renewal. The letter informed us that the fee had increased – no surprises there. And, then, we saw the figure: the fee had nearly trebled! That’s right – it was nearly 3 times the amount we had paid in the previous year. Cue: shock!

There were no explanations, either. You would think that such a sharp price increase would be accompanied by a suitably good explanation. Fail!

The phone call
As the letter provided no explanation, we called to inquire about the reason for such a sharp increase. We were told that the company had updated their actuarial tables (also, something about merging with another, bigger unit and adopting the tables of that unit).

Do you see the logic for the price increase? Me neither.

Nothing changed in the driver’s behaviour or the car (except for a few extra miles and a lot less resale value). Yet, we were expected to pay a lot more money because… the company had changed its actuarial tables. Fail, again!

The price
As I discuss here, the key to pricing is to focus on the perceived value of the product on offer, not its cost. By perceived value, I mean what the product does for the customer, rather than the sum of its components, as discussed here. Did Zurich add any value to my policy to go with the price increase? No. None at all. The result was that the net value of this policy for me was greatly reduced (see box).

The price change was particularly bad because there was no palpable reason for the increase. For instance, there was no increase in one of the product’s components that they could not avoid passing on – like plane fares rising as a result of the higher cost of crude oil. It is like a restaurant increasing its prices because the tap is not working and they need to wash all the dishes and pans with bottled water. The solution is to fix the tap, not penalise the customer.

What next?
You will not be surprised to hear that we started looking for an alternative insurance provider.

Our task was made much easier by having access to the Internet. With very little effort we had a wealth of information at our fingertips – not only from the insurance companies themselves but also from customers and information brokers.

We had narrowed the choice down to a couple of companies when something happened: my husband had a (small) car accident. Don’t worry, all is well. I tell you more about it in this blog post.

Does this experience sound familiar? What other industries / companies are really bad at dealing with price changes?

The digital side of death

We received the sad news that a relative had passed away, recently. My thoughts went out to the deceased’s only daughter who must deal with all the practical matters resulting from her father’s untimely death, while grieving for him. Thinking through what she would have to deal with, I soon realised that death, too, is a business. Not only that, but it is a business where technology and social media play an increasingly important role, sometimes in very creative ways. Here are some examples.

 

Physical presence

This is, perhaps, the most obvious task, following someone’s death. There are practical matters to consider, such as moving the body from the place of the death to the desired location for the funeral – sometimes, even in another country.

It is a market with the reputation for predatory sales techniques, taking advantage of the relatives’ emotional distress and their lack of disposition to compare alternative offerings. Traditionally, location is a key driver of sales. These days, however, there is the internet, which enables quick access to information. There are even price comparison websites specifically focusing on funeral costs.

Some service providers try to build brand presence by promoting their services. For instance, I had a classmate in junior school, son of an undertaker, who handed out calendars and key rings to his classmates.

Other providers even try to change behaviour patterns, leading consumers to plan their own funeral. If buying your own coffin, as my friend’s mother did, is too much for you, there are numerous financial plans for funeral purposes. This is an extract from the Newcastle Building Society website:

 

Planning ahead shows you care

None of us like to dwell on the inevitable. But equally, none of us would want to leave our loved ones worrying about what sort of funeral we’d have wanted – and how they were going to pay for it. Taking out a Funeral Plan together with the Newcastle is one of the best ways to go on taking care of your loved ones, even when you’re no longer there. By planning and paying towards your funeral in advance, you can rest assured that your chosen arrangements have been put in place and will be carried out just as you requested.”

 

 

Online presence

Many of us will now have an online presence, in addition to the physical one. When we pass away, we leave behind personal webpages, blogs, social network accounts, photographic images and videos, e-mail accounts and so on. Because the tokens of our online presence are stored in some company’s servers, it is very difficult for family and friends to access, manage and, eventually, close them.

At times, these accounts are hacked into, with painful consequences for those that miss the person whose online identity has been taken over. It is important that service providers have policies in place to deal with the passing of the user. Read Time’s ‘What Happens to Your Facebook After You Die?here.

 

Possessions

Usually, when someone dies, they leave some possessions behind. Low value, unwanted possessions were traditionally donated to charity shops or individuals in need. Nowadays, there are online auction sites like eBay, trading websites like Gumtree and even recycling websites like Freecycle.

On the other hand, dealing with the valuable assets (and liabilities) – for instance, changing property deeds or preparing a will – has traditionally been the realm of solicitors. Later, stationery stores and other commercial outlets started selling packs enabling us do prepare our wills at home. Now, of course, it is possible to do that online, too. And guess what?! That’s right, there’s an App for that:

 

Memorials

Relatives and friends may need to express the emotions released by the death of their loved one and relive happy moments. In addition to the memorials taking place at a given location and time, the web enables us to express our feelings in many ways. There are social network updates, blog posts, YouTube videos, slide share presentations…

A brilliant use of technology is the use of QR codes in cemeteries:

<iframe width=”420″ height=”315″ src=”http://www.youtube.com/embed/B_t951pF4AE&#8221; frameborder=”0″ allowfullscreen>

 

I particularly like this application of QR because it bridges the physical and the digital. It brings the past into the present and makes it available for the future. It is, truly, about augmenting the experience of visiting someone’s resting place.

 

Good or bad?

Is the ubiquitous use of technology in this important stage of life an intrusion or a valuable addition?

Some might say it cheapens the grieving experience – making a public spectacle of what should be (?) private feelings.

Others will point towards the benefits of customer information, price comparison services and other time-saving mechanisms.

I suppose that the role of technology in the business of death is like its role in any other business. Technology in itself is neither good nor bad. It is our use of it that produces consequences, which, in turn, are never neutral.

In the end, I believe that there is one use of technology that we should all take advantage of: Showing others how much they mean to us, while they are here.

An odd one for a marketer

I am kicking off September with two conference presentations. First, I discuss the role of commercial organisations in detecting and preventing terrorism, in Leeds. Two days later, in Cambridge, I present on the risks of doing business with criminals. If you think that this is an odd topic for a marketing academic, read on to see what marketing has to do with crime and terrorism.

Several commercial organisations facilitate the movement of people and money across the world. You and I may take the plane to attend a business meeting or to go on holidays. However, some people will take the plane to organise or, even, to commit a crime. Likewise, some individuals and organisations may use financial institutions to fund criminal activities or to launder the proceeds of crime. That is, those firms act as gateways. They also have a tradition of collecting customer data, for loyalty programmes and customer relationship management initiatives, for instance. These businesses’ position and their data collection ability means that governments worldwide increasingly demand that they participate in the fight against crime.

This government-imposed role in the fight against crime creates several problems for organisations, as discussed at the Global Insecurities conference in Leeds. The issues that commercial organisations encounter include:
- The type of data required for crime detection is very different from that traditional collected for commercial purposes. I discuss some of the technical challenges here.
- The role requires significant investment in human and technical resources.
- The role also creates delays and may require reporting customers to law enforcement, which clashes with the culture of service, diligence and secrecy prevalent in these industries.
- The legal requirements conflict with the commercial nature of the jobs, which creates tension for employees.
- It affects a variety of organisations in the supply chain, over and above the government and the gateway firm.
- It affects competition because costs differ for incumbent firms and new comers and because costs are not proportional to the size of the organisation.

Another important aspect for marketing is the cost of serving those (undesirable) customers. It is not simply a matter of customer profitability. Serving those customers exposes firms to a multitude of risks, as explored in my presentation at the 29th Cambridge International Symposium on Economic Crime, in Cambridge. Some of the risks encountered are:
- Waste productive resources – This is a major concern in the current economic climate.
- Impact on customer behaviour – For instance, safety is a key variable in destination choice and additional security checks may have a long-term effect on the route of travel.
- The possibility of errors and the delays impact negatively on customer satisfaction – This is a particular concern because (at least in the UK) organisations are not allowed to tell customers that the delay results from suspicions about their behaviour.
- There is the risk of fines, legal proceedings or imprisonment, if the organisation is deemed to be complacent or incompetent in their role in crime prevention and detection.
- The negative press attention may damage the organisation’s reputation.

Modern marketing research and practice embrace the principle that not all customers are equally desirable. Indeed, the basis of Customer Relationship Management is the understanding that customers differ in the value they generate for the firm and that their management should reflect these differences. However, most marketing research tends to focus on the upside of relationships, looking at questions such as how to attract more customers, how to upsell or how to retain customers. My work looks at the dark side: the identification and management of bad customers.

If you wonder whether this is relevant, consider these simple statistics:
- In the UK, front-of-store assistants are subjected to verbal abuse an average of twice a week, to threatening behaviour twice a month and to actual acts of violence once a month
- An average of 4 out of 10 people have stolen from a shop before and intellectual property theft is a widespread behaviour.
- Customer theft cost retailers over £30bn
- 10% of US insurance claims are inflated or altogether fake
- Around 7% of the total value of deposits in UK personal accounts are thought to be the proceeds of crime
- The equivalent of 3% of global Gross National Income is thought to be laundered every year, in the world.

Consider, as well, that customer demotion impacts negatively on spending behaviour and loyalty, and generates negative word of mouth. Moreover, there are numerous operational and legal restrictions on customer abandonment.

For all these reasons, identifying and managing undesirable customers is a key aspect of a marketers’ job. And that includes criminals and terrorists.

Not odd at all.

Do you focus on the good customers, only? Or do you take active steps to identify and manage undesirable customers, as well?