While researching what to do with an old computer, I learned that quite a few companies — including retailers and product manufacturers — offer trade-in programs for older equipment. Mine was too old to be worth anything, but slightly newer gear would have garnered at least $100 or so. And if my experience is at all typical, there seems to be very little awareness of these programs among the electronics-buying public.
There’s a very easy way to increase awareness of these initiatives. Simply put an insert into the bag or shipping box (for retailers) or the product package (for manufacturers) to let people know that the old equipment they’re replacing may be worth something. Since the trade-in programs that I’ve seen can be used before or after new products are purchased, people would be motivated to finish setting up the new stuff, and then send in the old stuff after that.
By encouraging more people to take advantage of trade-in programs, companies would help make new technology more affordable for their customers. In turn, these customers will tend to buy newer products more often, leading to increased revenues for retailers and manufacturers alike.
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I got a new computer last week, which meant dealing with a pile of cardboard boxes, clamshell packages, and other shipping materials. For the most part, I was pleasantly surprised at how few of the components came in those impossible-to-open plastic packages. However, one aspect of the packaging struck me as a bit ironic.
In particular, the computer itself was touted as being environmentally-friendly, and the product box was comprised of paper and plastic that seemed to be recyclable. Some parts of the box came apart easily. Breaking down the outer box was another story. I had to tear off a bunch of foam that had been glued on to the upper lid, and then use scissors to cut the corners enough so that the box could be folded flat. The process probably took me 15 minutes for what should have taken about a minute or so.
I’m sure it’s not easy to design packaging that looks good, protects the product inside, is affordable to produce, and is easy for customers to break down for recycling. However, my recent experience suggests that few manufacturers are even thinking about that last step and its impact on the customer experience. So the next time you’re designing something that will be touted as environmentally-friendly, try to make sure that it will be people-friendly, too.
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Bulky packaging is undesirable for several reasons. It costs more to manufacture and more to ship, and also produces more waste. However, there’s another factor that’s often overlooked: a bulkier package means that customers can’t carry or store as much of that item as they might like.
For instance, there are two pizzas that I always buy at the store. One comes in a very slim box, and the other is packed in a thicker box that’s nearly twice the volume. With my limited bag space in the store and non-infinite freezer space at home, I end up having to buy proportionately more of the pizza that comes in the thinner box. That’s too bad, since all else equal, I would rather split the purchases equally between the two options.
More generally, an overly bulky package forces customers to compromise. They’ll either buy less of the bulky product, or take home a smaller number of items to make room for the bulky one if they really can’t live without it. All else equal, it pays to find a way to slim down your packaging, since a desirable product with a space-efficient box should outperform its bulky counterparts on a regular basis.
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A categorical mess
I haven’t owned a leather jacket in years, but I recently decided that I’d like to get one again. After identifying a store that had some nice options, I stopped in over the weekend. There was no store directory, so I asked a sales rep where the leather jackets were located. His answer: they’re scattered throughout the store.
The sales rep directed me to the first batch of jackets, located near the checkout area. I didn’t like the options on that rack, so I looked around for others nearby. There was nothing within viewing distance. I ended up asking another salesperson to retrieve one, and she was gone for so long that I can’t even imagine where she actually had to go to retrieve it. Making matters worse, the jacket she came back with even more disappointing than the first ones that I saw.
I left the store frustrated and empty handed. What was the retailer thinking when they decided to split up all the items in the category and scatter them all throughout the store? I doubt that leather jackets are an impulse buy, so this approach merely serves to piss off serious buyers and reduce the chance they’ll find a product that they like. And with no shortage of competing stores that organize their items by category, moving towards a disorganized and haphazard store layout seems like a mistake — especially with the peak holiday shopping season only a few weeks away.
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Several months ago, I started getting credit card offers in the mail from a particular airline. This came as something of a surprise, since I sent in one of those global opt-out forms a while back, and have received very few card offers since then. Then it hit me: the airline isn’t buying direct mail lists from the credit bureaus. Instead, they’re just taking their house list of frequent flyer members, and sending a mailer once or twice a month to everyone on the list.
After receiving a half dozen or so of these identical offers, I looked for a way to unsubscribe. I checked the airline’s website and the website for the card itself, which I imagine is operated by the bank that issues the card. There was no way to opt-out. I even called the phone number listed on the letter, but it wouldn’t let me speak to someone without entering a card number — which obviously I don’t have.
Overall, this is an exceptionally poor showing for the airline and their bank partner alike. They’ve taken a formerly trusted relationship with the airline, and turned it into a spam factory. In the process, they’ve decimated whatever brand equity that the airline and credit card issuer might have held in the eyes of countless customers like me. As a result, I’m less likely to fly that airline, less likely to apply for a credit card with that bank, and entirely unlikely to consider applying for the particular card that they’re pushing so crudely via the seemingly endless direct mail pieces.
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Navigating airport food prices
Right after passing through the security line at an airport and making my way to the general vicinity of the gate, I typically look for someplace to buy a bottled water. Each time, I wonder if I’m getting the best price within that terminal, or if it might be worth checking other stores to compare. I’ve seen prices vary by as much as 50% from one concession vendor to another, so I usually do some legwork just to be sure.
Obviously, a smart airport retailer could take advantage of this trend to increase sales and make things easier for customers at the same time. For example, if every store in the airport is required to charge the same price for a given item, then say that on the menu board or price list. Upon seeing this, customers would feel comfortable making the purchase at the most convenient location, with less chance that they’ll wander around and not buy anything at all.
Similarly, if prices do vary across the airport for a given item, then anyone who sells at the average price or lower should point out this advantage on their menu or price list. Travelers would then be more motivated to buy right away instead of shopping around. Of course, the highest-cost vendors might lose out on some business by virtue of their high prices. But that’s how it’s supposed to work in a properly functioning marketplace, even if that marketplace is confined to an airport terminal.
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During a recent flight, I had the misfortune of being seated right behind a demonic child that screamed at a deafening level at least once a minute. As if this wasn’t enough, the idiots who were supposedly taking care of the child decided to order a glass of water for the demon spawn, which arrived in a regular airline cup.
You can probably guess what happened next. The child took the glass of water, and somehow managed to spray the contents into the row where I was seated. Luckily, it was just water and ice, so no damage was done to any of my belongings. But just imagine what a mess would have ensued if the kid had been given something like tomato juice instead.
This raises an obvious question: why do airlines give these easily-spilled plastic cups to children? Why don’t they use small, kid-friendly bottles or provide tops and straws for the existing cups, so the drinks won’t leak as much when tipped over? Surely there are enough people traveling with children to make this small investment worthwhile. Plus, it would prevent the loss of brand equity for those unfortunate few customers who end up covered in tomato juice, soda, or some other colored liquid, courtesy of a rowdy child with a regular drinking cup in hand.
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Spaces are there for a reason
With the winter holidays approaching, many companies are gearing up to position their products as ideal gift options. In one such promotion that I saw, an airline was advertising their gift card offerings. However, the way they chose to write the text was a little bit baffling.
Instead of referring to it with normal words, e.g. the “Acme Airlines Gift Card”, they left out all the spaces. So, it looked more like “AcmeAirlinesGiftCard”. Yep, they turned an otherwise straightforward name into a jumbled up mess.
Obviously, taking out the spaces between words makes the resulting text harder to read. Dubious stylistic goals aside, this reduces the chance that prospective customers will understand the message and take the desired action. So if you’re tempted to remove the spaces from a product name just because it looks trendy, don’t forget to factor in all the missed opportunities that may result when customers can’t figure out what you’re talking about.
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My most recent grocery delivery came with an unfortunate surprise: a jar of salsa broke in transit, and ruined several other items that were in the same bag. The delivery person saw the issue right away, and told me that they would issue a credit for the damaged items.
That’s all fine and good, but what if I wanted a new set of identical items to replace them with? Apparently, that wasn’t an option. To process an exchange, I would have to accept the refund and then place a new order, complete with yet another delivery fee. That’s rather ridiculous, seeing as how the original issue was totally outside my control.
In situations like this, a little bit of common sense goes a long way. For instance, if a customer places a delivery order and some of the items arrive damaged, the logical thing to do is offer them a refund or an exchange of those items. And if the customer wants an exchange, you shouldn’t penalize them by charging another set of delivery fees, fuel surcharges, and so on.
Receiving broken products is frustrating enough. Waiving the delivery fee for the replacement items is a must if you want to salvage the situation and help restore the customer’s trust in your services.
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The other day, I walked into the pharmacy to pick up some prescriptions. As always, I stopped at the kiosk to scan my loyalty card and see which coupons it spit out. Usually, these coupons are mediocre, but one caught my eye: $2 off a multi-pack of the gum that I buy regularly.
Since the package of gum normally costs about $3, the $2 discount basically amounted to 67% off. This made me wonder: if they’re really trying to drum up interest in this product, why not make the coupon cover the entire cost of the product instead?
I’m sure there’s a lot of complex analysis that went into determining that the 67% discount was the best way to encourage customers to buy the product that day, and to purchase more of it during subsequent trips. At least in this particular case, I’m guessing that a substantial discount wins out over free because of the implied value of the item itself.
In other words, if something is being given out for free, then people may only remember that it was free, with little sense of what the product is worth. But if it’s being offered at a substantial discount, paying even a nominal amount for the item creates an anchor point around what it should normally cost and what a great deal the customer received. This is a subtle distinction, but probably an important one when it comes to planning out a discount and promotional strategy for consumer products.
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