2 Bad Experiences and a Question

Quick hits as we get to the end of a busy and eventful year.

Gogo and Delta: Two terrible customer service experiences in one day

Terrible experience #1:  Gogo is a (potentially) great new service, if you haven't had the chance to try it.  Wifi in flight, allowing access to everything Internet: email, web, company portals.  But this week's experiences really have me wondering.  (Hmm, how do I do share this quickly?).

Try this:  Gogo sells its service.  People who need it, buy it.  Like me.  This month, in conjunction with Google to promote Chrome, Google's browser, Gogo is giving away the service free.  All month.  

Guess what.  That means customers who have paid for the service can't use it.  Limited bandwidth; shortened sessions.  Even worse - so overloaded, you can't even get on line.  Imagine how that makes a paying customer feel.  So, time that I expected to use productively got wasted.  Risked deadlines, delayed communications with important customers.  Great execution, guys (please, don't miss the sarcasm).

Terrible experience #2:  This one borders on unethical and perhaps even illegal.  Late last evening, I got on Delta.com to book a flight New Year's weekend.  I searched on the site and found a $169 r/t fare.  Great!  I enter in my daughter's information (I was already logged in), hit enter, put in payment information (it was quick, as my credit card is stored on the site), hit enter and - Presto! - No, not booked tickets.  A message from Delta that, in the three minutes since I searched and selected the flights, the fare had changed from $169 to $285 per ticket (what!?!?!).  Yep, over $100 increase while I was in the middle of booking and after Delta had shown me that the fare was available.  Of course, I discarded those tickets and started again.  Guess what?  THE SAME THING HAPPENED TWO MORE TIMES!  Found a fare (they kept inching higher and higher), went to book it, and - Whammo!  What a scam.  What terrible customer service!

No, I don't cut them any slack for "limited capacity."  Ticketmaster has figured it out.  Ticketmaster has a clock in the lower corner of the page.  Finish this page in x minutes or lose the seat.  It goes, different times on  each page as the transaction progresses, until the tickets are bought.  Don't tell me Delta couldn't do the same thing and protect the integrity of its searches, its ticket prices, and its reputation.  

No, I'm afraid we are seeing more and more of the companies who think they are too (pick one:) big/smart/innovative/exciting/important to fail.  I wonder what history will say about that.

The Observation...

...has nothing to do with bad customer service, but the recent deal to extend unemployment benefits.  I'm all for protecting and taking care of each other - really.  I'm pretty darn liberal that way.  But, can't we ask people to do something for the money?  So, there aren't jobs in private industry right now.  Aren't there things that people could do to help?  Can't there be programs established so the money doesn't just go for nothing?  Who knows, maybe some people would look a little harder for work if even unemployment benefits came with working hours requirements.  Isn't that what created the WPA?

Survival of the Fittest

Those of you following the markets - stop!  Those of you concentrating on your business - continue.  One of the core precepts of Strategy Execution is to focus on those things you can impact directly.  I won't say ignore those items you cannot affect, but you certainly shouldn't do anything more than monitor them from a distance.  

I tried to take my own advice this week - No shoemaker's child here!  (Ask me if you don't know that reference....).  I have always talked about two kinds of strategic changes - those a company chooses to undertake, and those forced upon it.  Over the last ten years, most companies have had the luxury of focusing on the former.  Today, almost everyone is dealing with the latter.

If you take a look at the RedZone Consulting web site (www.RedZoneConsulting.com), you'll see some pretty significant changes.   RedZone has always focused on helping companies successfully execute major change.  And we still do.  Historically, most companies we worked with were those that chose to undertake a new direction.  Not now.  Today, I'm seeing that most companies are being forced to change their strategy and operations to reflect an entire new economic reality, one that had not even been considered. 

There are few, if any, companies that today's economy isn't impacting. As a result, every company has one primary focus:  Cash.  With credit tight, customer behavior's unpredictable, business assumptions and projections thrown out the window, the first place every business must focus is survival.  

It's a pretty simple question:  Do we have enough cash?  It's one of the "let's pretend" scenarios that we walk clients through:  Let's pretend you have absolutely zero sales over the next six or twelve months.  How much cash will you burn?  What are the levers that allow you to save (or gain) cash if needed?  This exercise has very little to do with what the business is trying to accomplish, and more with a foundational issue:  If the company has no cash, it cannot survive.  If it doesn't survive, successfully executing its strategy is both impossible and meaningless.

Survival of the fittest today is all about cash.  Do you have the cash to deal with the unexpected twists and turns driven by this new, unpredictable economy?   If you can use discipline, clarity, focus to monitor and maintain your cash position, you'll give your company the opportunity to succeed in the future.