The Last Word in PPC vs. Article Marketing

On October 13, 2009

Taking Flight on Natural Gas: Will Airlines Use Shell’s Gas-to Liquids Jet Fuel?

When a Qatar Airways plane landed in Doha late Monday, it became the first commercial passenger flight to use fuel from natural gas. But like all "firsts," the second, third and ten-thousandth time is a bit harder to reach. Cost tends to be the stickler in each one of these alternative jet fuel attempts.  This "natural gas first" follows other forays into alternative forms of jet fuel. Algae has been a popular trial biofuel for airlines including Continental Airlines. Virgin Atlantic has tried the coconut, babassu oils mixture and Solazyme nabbed a U.S. Navy contract for its algae-based jet fuel. The alternative jet fuel developed by Royal Dutch Shell for the Qatar Airlines flight provides a modicum of commercial promise. For one, the gas-to-liquids jet fuel is part of a much larger...
On October 13, 2009

Will KB Homes Restructure Its Debt?

KB Homes is not out of the homebuilders' wilderness just yet. Chief executive Jeffrey Mezger admitted on the third-quarter earnings call that economic conditions continue to work against KB Homes, and the profit outlook for the builder remains negative going forward into 2010. In addition, although management has worked hard to better its capital structure during this housing downturn, a review of the earnings quarterly filed with the SEC suggests an increased probability of default on its family of $1.8 billion in debt. KB Homes, the fifth largest U.S. homebuilder, has focused on entry-level and first-step trade-up housing. First-time buyers now account for 80 percent of sales, up from 40 percent back in 2006. Not withstanding improvements in housing...
On October 13, 2009

Print Publishers Sense Big Opportunities From Mobile

New York City, Magazine Publishers of America Innovation Summit It is looking like 2009 will prove to be the year that print publishers came to realize that mobile platforms are critical to their futures. According to a recent study by the Audit Bureau of Circulations (ABC), roughly 70 percent of publishers are devoting more attention to the mobile market this year than last, and over 80 percent believe that their users will rely more heavily on mobile devices to access information over the next three years. The ABC study also contained the following findings: Almost three-quarters of senior executive respondents either have a smart phone application in production now (17 percent) or are planning to develop one in the coming...
On October 13, 2009

How to Select an SEO Company – Jill Whalen (7:06)

You can do a lot of search engine optimization (SEO) work yourself or with the help of your web developer. But to find first-page ranking for your important keywords, you may need to employ company that specializes in SEO. In this video interview, Jill Whalen explains what to look for -- and warning signs that should steer you away.
On October 13, 2009

Blogging for Bucks

Blogging = Big bucks! (Well, not exactly, but here are some considerations) Chances are, blogging isn’t your primary business. A more appropriate statement might be that your blog promotes your “real” business, and that’s exactly what a well-utilized blog will do. However, if you’re considering turning your blog into its own business, you’re not alone. After [...]
On October 13, 2009

Best Buy Plays Holiday Trick in Halloween Promotion

Most retailers are so worried about the end-of-year holidays that they seem to have steamrolled Halloween, but not Best Buy. Okay, they haven’t really steamrolled Halloween, but retailers aren’t paying it the respect they once did. Just a couple of years ago, retailers planned major promotions looking to boost sales of costumes, beer, snacks and scary movies as more adults became interested in celebrating the eve. While stores still mount plenty of Halloween displays, major retail promotions already are focused on getting the biggest share possible of the commerce culminating in the December holidays. Heck, Walmart alone seems to be readying a new promotions just about every week. On Sept. 30, it announced its 100 Toys for $10 initiative and...
On October 13, 2009

A Giant Step Toward Reform, But Still Far From It

Commenting on today’s landmark Senate Finance Committee vote on healthcare reform, White House Chief of Staff Rahm Emanuel told Judy Woodruff on PBS’ Lehrer News Hour, “We are closer than ever in the history of this effort to getting health care reform to give people who have health care a sense of knowing that it will always be there and people who don't have health care [the knowledge that they can obtain it] at an affordable price.” Now, I’m glad the Finance Committee voted as it did, and I admire both Emanuel and President Obama. But even though Congress is closer to passing healthcare reform than at any time in the past century, I would take issue with the...


On October 13, 2009

Walmart Casts Wider Its Health and Beauty Web

Walmart’s just-announced expansion of health and beauty products online is two moves in one as it reinforces ongoing initiatives to make its personal care business more competitive even as it bolsters health maintenance initiatives. Walmart plans to include “thousands” of top-selling items from national brands like Neutrogena, Pampers, L'Oreal, Colgate, Pantene and Gillette in its health and beauty care service expansion, promising consumers low prices on their favorite products. And when Walmart promises low prices, it usually means lowest, at least on average, which is another way of telling folks that they don’t have to bother shopping around to feel like they’re being good consumers, they just have to shop Walmart. In announcing the new effort, Kelly Thompson, Walmart.com's chief...


On October 13, 2009

The Price of a Poor Experience

"I'm sorry but that's our policy," the woman at the desk said. "You can't come into the gym."

"But I even have a guest pass," I countered. I was a member of this gym, which cost over $200 a month, but had put my account on freeze because of travel. I happened to be in New York that day and had offered to bring my parents there for dinner. Even on freeze I had to pay a fee of $40 a month so I figured they'd let me in to eat at the cafe. I figured wrong.

"A member can't use a guest pass," I was told.

I asked to speak with a manager. "So my parents could come in with a guest pass because they aren't members but I can't?" The manager repeated the same policy.

That got me thinking more about the $40 fee. How could they get away with charging me for not using the gym? Where was the value in that?

I called various gyms around New York City about their freeze policies and noticed a curious trend. The more expensive the gym, the higher the monthly fee to freeze your membership. The cost to freeze your membership at inexpensive gyms? $0.

That's strange. I would have thought the more I paid for a gym, the more privileges I would get. But it's the opposite. And it's not just gyms. Look at the two lists of hotels below:


A: Expensive
Four Seasons
Ritz-Carlton
St. Regis
W Hotels
InterContinental
Ian Schrager Hotels
Sofitel

B: Inexpensive
Best Western
Comfort Inn
Days Inn
Howard Johnson
Super 8
Travelodge
La Quinta

Here's what I find amazing: The A list hotels, which are considerably more expensive per night, all charge additional money for the use of the internet from your room. The B list hotels all offer internet free with your stay.* Again, wouldn't you expect the more expensive hotels to include more amenities?

Imagine you paid a huge premium to buy a first class ticket on an airline and were told that, while the cheaper economy tickets allowed passengers to check their bags for free, first class passengers must pay $50 per bag. Crazy, right? Well, that's what's happening with the internet at hotels. And with freeze fees at gyms.

Airlines can't get away with it because first class is an upgrade, a direct comparison in which you expect an additional value to a normal seat. They can't charge you more if they reduce the offering in any way.

But when choosing a luxury hotel we're willing to pay the additional fee because the entire hotel is in a different category. Its product and service is so far above those in the inexpensive category in so many ways that we simply don't compare the two.

But my gym made a critical mistake — it treated me poorly. After that incident, my feelings about the gym changed dramatically. In a luxury business, it doesn't take much to make someone resent the fees he pays. And once that happens, the business dies.

Sacha Litman runs the consulting firm Measuring Success, which helps non-profits make decisions based on quantitative data. He collected data across hundreds of organizations and noticed something surprising about their successes and challenges in this economic downturn.

First, what he didn't find: there was no correlation between membership and price increases. In other words, customers didn't leave simply because an organization raised its prices.

But he did find a different correlation: between membership and an organization's net promoter score, which measures how likely a customer is to recommend the organization to a friend. It turns out that if customers liked an organization's products or services enough to recommend them to others, then that organization could raise its prices, even in a down economy, without losing any of its customers. But if the organization downgraded the customer's experience, then not even lower prices would prevent customers from abandoning it.

What's true for organizations is true for people as well. Understand your unique value, leverage it to fill a need, and you can write your own ticket.

I know someone, we'll call him Phil, who was a star performer in a small consulting firm. He was a great communicator — he took complex ideas and conveyed them in simple ways — and clients loved him; in other words, he gave his customers (and his bosses) a great experience. So when Phil asked the firm to pay for him to attend an expensive executive MBA program they said yes. Even though they had never done that before (or since). They didn't want to lose him.

On the other hand, neglect your value, or don't develop it, and your customers (and bosses) will go elsewhere.

A few weeks after I was refused entry into my gym, I canceled my membership. The way my situation had been handled put the gym, in my mind, in a category of cheaper gyms. The fees I was paying were no longer worth it to me. Once I canceled my membership, I received tremendous customer service — apologizing, putting me in touch with the general manager, offering to freeze my membership for another month without charge so I could think about it — but it was too late. I was already gone.

* data from travelpost.com