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Seize the Deal – Fro Yo Fail

Posted by Bob Weber on Jan 16th, 2012 in business, Crazy Marketing | 0 comments

Spooners Frozen Yogurt in Fort Collins. A friend in Fort Collins LOVES Spooners and Fro Yo in general, so I thought I would surprise him with a coupon for $10 in yogurt.

The purchase went great, but the first snag was that they didn’t send the deal out right away. I bought it on a Friday and for some reason they didn’t deliver the deal until the following Monday. This restriction was included in the fine print, but didn’t really feed my need for instant gratification the way the Internet is supposed to. Of course, by Monday the purchase was forgotten and didn’t come back to mind until I received a notification about my voucher on the following Wednesday (remember, this was supposed to go to my friend).

So today, 10 days after my initial purchase, I asked my friend about it. He never did see an email about the Fro Yo, so I tried to forward him the notification I had received. He wasn’t able to log in and access the voucher, so I sent him my email and password so he could get the coupon.

After all this, I thought I would send an email to Seize the Deal support and see what they said. Initially an Out of Office notification was sent out, they only have support from 8am – 5:30pm CST Monday through Thursday. The request was sent out at 12:30pm on Monday, it was MLK Day so maybe Seize the Deal keeps Banker/Government hours. Surprisingly, only 3 minutes later a real response was sent offering to forward the link to my friend. This course of action had already been pursued and I informed support of that as well as informing them that I just sent him my login and password so he could get his Voucher.

Seize the Deal’s response?

“Very good – Glad you were able to get it to him.”

Really? No Apology? No explanation of how this is supposed to work? No link to an FAQ for people who don’t get their Vouchers? Nope, just a “Very Good”.

I’ve spent a couple hours trying to figure out how to get a voucher for $5 in free Fro Yo and Seize the Deal doesn’t care. I think next time I’ll just skip it and just pay full price for the yogurt, it will be cheaper.

Is Netflix CEO killing the Golden Goose?

Posted by Bob Weber on Sep 20th, 2011 in business, Crazy Marketing, Our Changing World | 0 comments

Netflix CEO Reed Hastings made a statement this week apologizing for poor communication on the recent pricing changes and announcing the ~~renaming~~ moving of Netflix’s current DVD delivery services to a new, wholly owned subsidiary called Qwikster.

Now, I’m no CEO, and I don’t claim to know everything about business, but I would like to send a couple tips out there to Reed Hastings. Just basic business advice.

1. Keeping existing customers increases profit.

Netflix, lost 1 million customers because they monkeyed with their pricing. Marketing history is FULL of schemes to increase your price without losing customers, and I’m sure reducing value, creating complicated new price schemes and confusing customers with new company names is not at the top of the list. Honestly, Netflix streaming library is pretty weak right now. Seems like it would have been easy to gradually pare it down a little and then come out with a new “premium streaming” package that could be purchased for an upgrade, or maybe add a pay-per-view system for new movies like Amazon is working on. No, instead they chose to upset their customers, remind them what they were paying Netflix each month and lost a million customers.

2. Protect your brand

Brands are important. Ask anyone, read any marketing book, brands are vital to your business. Netflix has a brilliant brand. Red envelopes, dvds, the Netflix name… all brilliant. Why do you think Redbox is Red, because Netflix built such an amazing brand around those envelopes. Now Netflix is throwing the number one brand for DVD rentals out the window and going with Qwikster (a name that they don’t even own on twitter yet) and Netflix will now be known as the lame streaming library that is overpriced and contains only B-movies and TV shows. Not smart. DVD rentals are your bread and butter, why not make Qwikster the new streaming service and leave Netflix alone.

The bottom line is Netflix was making upwards of $50 million every quarter, it will be interesting to see if the management has killed the Golden Goose under the name of staying competitive and moving with the market. Some business models aren’t meant to be viable forever and your best bet is to make hay while the sunshines. Hopefully Netflix hasn’t quit early.