Business Model

Newspapers

Business model

The recent quarterly bill arrived from the News & Observer. The recurring question: Does the N & O deliver value for the price paid….and does the N & O have a sustainable business model?

  1. N & O value: No, the value has been significantly diminished over the years. Content is much less than in the past….primarily due to the loss of advertising revenue.
  2. N & O business model: Is it sustainable? – No. newspaper revenue was based on advertising….both classified and display. Subscriptions can’t provide the needed revenue.

McClatchy Co., the owners of the N & O continue to show losses with their newspaper publications.

At some point….it may just be prudent to forgo the daily newspaper (except for Sunday). After all, if the value is not relative to the cost why continue!

Latest McClatchy Co. Financial Report:

http://www.kansascity.com/news/business/article41611470.html

Reviews

What do they mean?

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Do businesses really pay attention to reviews of their products/services? The internet has dramatically changed on how customers interact with businesses.

In general….I look at the most recent reviews to get a picture of the business. The challenge is to filter out those that seem to be too good or those that are completely critical.

Looking back….how would I review our business….and more important how would we respond to a less than stellar review?

Of course, I believe we would have gotten good reviews or people would have never bought from us. The real test is what would we have done with a poor review. I would hope that we would have immediately corrected the problem, if it meant replacing the product or taking it back….even if it was completely suitable. Every sale counted, after all a lot of effort was put into the sales process. Even if we had to refund the sale….it would have been the right thing to do….never leave a customer unsatisfied if at all possible.

Of all the lessons learned: taking immediate action was the best thing we did.

People

Good Business

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Most people like to know who they are doing business with so they can put a name to a face.

Often in our print ads we included our pictures to reinforce our name and brand.

A recent mailing for a local insurance agency was very well done….it personalized the business….a simple mail piece….yet effective.

  • Prominent title – our purpose (ACA)
  • Photo – our people
  • Contact information – our phone and website

Overall, an effective direct mail marketing tool for the Wooten Agency.

Tires – Part 2

Thank you

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My new tires have been installed and the rear wheels aligned (10.07.15 post). I decided to buy from Atlantic Tire because it seemed the more professional of the three dealers. Also, they were best rated by a  local magazine survey and for the most part had good reviews.

In todays mail….a nice surprise….a handwritten Thank You note.

“We will rotate your tires free of charge every six months or 6,000 miles…..We are grateful for your business.”

A handwritten Thank You note may be “old school”….yet it achieves an important purpose….customer loyalty.

I gave Atlantic Tire a 4 star review….two small glitches kept it from a 5 star-first time rating. In 6 months when the tires are rotated….we’ll take another look at Atlantic Tire.

Note: The Thank You note would have been a valuable asset to our business….we could have done better in that regard.

Reinvention

General Motors

reinvention

Some business stay the same….some have to reinvent themselves.

The automobile industry and General Motors have certainly had to reinvent themselves in order to remain competitive with world-wide brands.

From the Stanford Business School: http://www.gsb.stanford.edu/insights/corvette-chief-engineer-why-you-wont-see-self-driving-sports-car?utm_source=Stanford+Business&utm_campaign=813680c823-Stanford-Business-Issue-73-10-18-2015&utm_medium=email&utm_term=0_0b5214e34b-813680c823-70238653&ct=t(Stanford-Business-Issue-73-10-18-2015)

The lessons learned are knowing the customer and always making the product better….and “But if you look at other vehicles that are successful long term, they tend to stay true to their mission. They don’t try to wander off and be something they’re not.”

 

Fifty Years

USAA

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Great is often overused to describe a successful business/organization.

In the case of USAA….great is a very accurate description.

USAA was founded in 1922 to provide automobile insurance to military officers. It has since become a prominent diversified financial services company.

At first only available to officers….USAA has broadened the membership to almost all military.

Being a member for 55 years is a significant accomplishment for a dedicated business partner ship.

https://en.wikipedia.org/wiki/USAA

Growth

Building Blocks

Building Blocks

From Seth Godin – Fundamental building blocks of growth:

  • The best marketing isn’t advertising, it’s a well-designed and remarkable product.
  • The best way to contact your users is by earning the privilege to contact them, over time.
  • Making products for your customers is far more efficient than finding customers for your products.
  • Horizontally spread ideas (person to person) are far more effective than top-down vertical advertising.
  • More data isn’t the point. Data to serve explicit promises is the point.
  • Commodity products can’t expect to easily build a profitable ‘brand’ with nothing but repetitive jingles and noise.
  • Media properties that celebrate their ads (like Vogue) will continue to thrive, because the best advertising is the advertising we would miss if it was gone.

All these blocks are key to a successful business….Seth Godin points them out explicitly. We implicitly used them in our business….although I don’t think we really knew that.