Modern Jackass


Analysis Paralysis and Modern Jackass and NaBloPoMo and Web23 Nov 2006 12:18 pm

Looks like I was a tad bit ahead of the time with the whole loyalty program thing for online travel sites (see original here). Expedia.com is rolling out a new loyalty program, effusively called the “Thank You Network“.

Okay, so they’ve probably been working on this thing for a year or so … so chances are they weren’t wholly influenced by my insightful if not-quite-ahead-of-its-time ramblings.
In any case, the pretty basic system: you earn one ThankYou point for every dollar you spend on Expedia. You then redeem points for “stuff”.

This illustrative chart walks you through the complexities of the system:

Thank You Network Diagram
 

 

 

 

 

 

Unfortunately, it’s not immediately clear how this stacks up to other miles or awards programs; I took a quick look over the Thank You Network site, but did not find a list of how many points it takes to book a national or international flight.

But … I wonder if you can get points from the Thank You Network AND from the airline on which you’ve booked your flight. In fact, if you use a mileage credit card to book your travel on Expedia on an airline … you could potentially get credited for the trip on 3 different rewards system! Hmmm this might be worth looking into.

Analysis Paralysis and Modern Jackass and NaBloPoMo01 Nov 2006 10:53 pm

It’s time for another round of me talking about things I really have no bidnez talking about.

Today’s installment relates to online travel booking sites, like Expedia, Travelocity, Hotwire, Orbitz, Priceline, etc etc etc. There are literally (READ: figuratively) TONS of them. Which is good if you’re looking to buy a cheap ticket. As a consumer, you have all these options at your (literal) fingertips and the cost of switching from one site to another is nil. Which I guess is the problem with the ENTIRE online retail sector. With absolutely NO cost associated with switching retailers consumers have no reason to base their purchasing decisions on anything else but the final price.

Let’s go back to our travel sites for a minute. If I want to go to Puerto Rico for instance, I can go to all major sites and see how much tickets from each site costs me. Today, a flight from MeHomeTown to SJU costs $431 on Travelocity, $435 on Expedia, $435 on Hotwire, and $437 on Orbitz. (Side note: The bastards at Orbitz try to trick people by saying their ticket costs $378, but look at the fine print and you’ll see that the “total” cost is $437. Why the hell would I want to know just what the face value of the ticket is without all the airport taxes and other related fees?! Don’t we all have to pay those?! All I care about is my total out of pocket costs, not some hypothetical price I’d pay if there were no fees and taxes. Orbitz folks - that’s a stupid, cheap trick and you know it). In any case, if I were buying that today I’d buy the $431 ticket on Travelocity just because it’s $4 cheaper than the others. I can do this because I have absolutely no loyalty to any of those sites. None whatsoever. If one of them was 50 cents cheaper than the other I’d probably go with that one.

(To make matters worse for the good people at the online travel sites … I just found out about Kayak.com, which does all my comparison shopping for me! If you don’t know about Kayak.com, you should check it out next time you’re trying to save $3 on that LA to NYC flight.)

So what’s a biz dev person at one of these travel sites gonna do? Say you’re some poor MBA-type person at Expedia, trying to figure out how to stay competitive in a very very tight field. What’re you gonna do?

If I were said poor MBA-type person at Expedia, I’d look for ways to create some sort of loyalty within my customer base. Well, since I’m all pro-consumer research and shit, I’d first try to find out what the top issues with the online travel shopping experience were. Then I’d try to find out how customers and potential customers feel regarding loyalty to online travel sites. Only after doing all my research-y homework would I try to come up with creative ways to get customers to feel some loyalty to our site.

Obviously, I haven’t done either of the two things I said I would do, but off the top of my head, I think there are a few things that Expedia (for instance) could do right now that would help instill some sort of customer loyalty.

  • Partner up with major airlines and/or credit cards to give bonus miles for trips booked on Expedia. Well, airlines probably wouldn’t like that too much, but I don’t see why credit card companies wouldn’t be up for such “synergistic” cooperation.
  • Borrow a page from Amazon.com and set up an Expedia Prime(TM) account that provides discounts and additional savings for members. (Amazon’s Prime membership service gives you free 2nd-day shipping for all your orders for $79/year). The pricing and benefits provide by the yearly membership would be critical to the success and customer appeal of this program. The benefits to the customer are also critical, but vouchers for free meals, nights at hotels, or car rentals days at their destination would work. Or free upgrades to hotel room, car class, an even airline seats.
  • Borrow yet another page from Southwest Airlines and give away big discounts or even free tickets for every 5 (or 10) trips booked on Expedia.

As you can see, all of these are variations on the basic customer loyalty program. Coffee shops use them. Airlines use them. Credit cards use them. Not being a poor MBA-type, I not seeing the downside of any of this.

So, any MBA-types and/or people who work at travel sites, why aren’t you doing this already?

Analysis Paralysis and Design and Modern Jackass and Usability16 Sep 2006 11:45 am

Abstract:

In the first of an (hopefully) ongoing series, the author examines yet another topic about which he knows very little but has spent an inordinate amount of time over analyzing: the design Pringles™ Potato Crisps. True to form, he uses examples from other areas and disciplines (some of which he may know more than a little and others about which he knows next to nothing) to shore up his thesis.

Introduction

Wall of Pringles First off, I’ve got to admit that trying to continue with this pseudo-APA style for this entire post would have been needlessly cumbersome and probably quite annoying. So I’ll borrow the general headers, but the prose will be somewhat-less-than academic.

Some time ago I was eating some Pringles™ Potato Crisps and I started to geek out on what a company like Proctor and Gamble must go through to put a product like Pringles™ Potato Crisps on the market. I’m familiar with the whole putting-products-on-shelves bit as I do some of that in my day job as a “user-researcher” for a video game publisher. I know what it takes to get a game on the shelves and I started thinking about the user-researchers, marketers, product designers, and comestible engineers over at P&G.

I was imaging that they deal with the same issues we do in games – the constant balancing act between the marketing forecasts, the designer’s vision, the end-user experience, the engineering challenges, etc. etc. etc., that we go through when we’re developing and publishing a product. As I’ve said before, “making games fun ain’t all fun and games”. Maybe the good folks of P&G have a similar saying … “Making tasty treats ain’t all … treaty and tasty-y” … hmm needs some work.

In any case, I picked up a new flavor of Pringles™ (well, new to me, anyways) today: Chipotle. Clearly, someone in the New and Emerging Markets Group of the Demographics Analysis Department at P&G’s Savory Tuberous Product Division noticed that the Latino population in the US increased up 57.9% between the 1990 and 2000 censuses and is expected to grow another 71% between 2000 and 2020. Excited by these numbers, they called a meeting with other bigger marketers and executives and some savvy up-and-comer greenlit Project Chupacabra to “Investigate the feasibility and desirability of Latino-themed snack lines”.

Thusly greenlit, a crack team of product designers and (hopefully) user researchers were brought on board to work with the marketers to create a new product that would “introduce the growing Latino population in the US and abroad to the exciting and rewarding active Pringles™ Lifestyle™”. Because, as we all know, Potato Crisps products are not just a snack, they’re a lifestyle choice.

At the kick-off meeting, the Chupacabrans realize that their work is cut out for them: designing a snack line that celebrates the joie-de-vivre, work ethic, and family values of Latino culture while still being sensitive to regional and national differences is going to be a challenge. The project timeline is another complication as everyone knows that summer is THE snacking season. Kids are out of school and parents are struggling, juggling work and keeping the kids busy, trying to keep Dylan out of juvi and Madison out of Planned Parenthood. So sales of both savory and sweet items in the Portable Foods category spike during the summer months.

Rolling up their sleeves, the Chupacagbrans begin planning their first steps – ethnography, consumer focus panels, competitive testing, and other types of user research to help inform the design process.

Coming soon: Project Chupacabra Part 2 – Know thy user.

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