Newsletter ArchiveSUBJECTs:Product Management - Complaints The Internet 800 Directory - http://www.inter800.com The Internet 800 Directory Newsletter This issue is for Friday, November 2, 2001 Table of Contents 01. Product Management and the Laws of Physics 02. Complaints Welcome to The Internet 800 Directory Newsletter. This week we are running part one of a two-part article sent to us from John Riggins. John has over 20 years experience in product and market management for a variety of global firms in the energy services and high technology industries. I want to thank John Riggins for sharing some of his expertise in the field of product management. If you would like to communicate your options or ideas on how our readers might improve their business, send them to me (Chuck Arning) at chuck@inter800.com Clear Light, the Cedar Company, provides products that treat your mind, home, and body to the pleasures of natural fragrance. Work the magic of scent in unusual and delightful ways with our green cedar needle saches, lotions, soap, candles, and sprays. We make scents for Christmas! Ask about our delightful gift boxes and other ideas for great holiday gifts. Call 800-557-3463 or visit us online at: http://clcedar.com *01 Product Management and the Laws of Physics (Part 1) As a kid, I had a friend who was always taking chances. He'd ride his bike too fast on the gravel road. He loved to jump off the top of the slide, hitting the ground with a deafening thud. And, of course, he was never afraid of running head long into a kid twice his size on the playground. He seemed to believe that the laws of physics applied to everyone but him. The way most businesses handle their products today reminds me of my friend. They think that once they roll out a new product, they switch on autopilot and not have to manage it actively. That there are certain rules that govern a product's performance never enters their mind. Their product is "unique" and, consequently, immune from the economic equivalents of physics. What's missing in most businesses, large and small, is true product management. Product Management is the deliberate directing of a product's movement through the lifecycle. Make no mistake, any product will move through the lifecycle on its own. If you start a car, put it in gear, and don't put your hands on the wheel or your foot on the pedals, the car will move along some path. Likely as not, it's not the path you'd like it to be. So too with a product. Without a well thought out plan and solid execution, the product will never realize its true potential. So what are the key components of product management? Going back to the earlier definition, product management involves two key elements, one strategic and one tactical. Let's begin with the strategic component, Deliberate. To be deliberate means to have your mind set on achieving a certain outcome. It is knowing how you want your product to perform over its life and doing what it takes to get it there. It assumes you have a plan. Being deliberate with your product involves three dimensions: ----Vision What do you want this product to do or be? What problems will it solve? What will it look like in 5 years? Ten years? If you are responsible for a product, whether as the business owner or product owner, it's your job to paint the picture for the product. And then, communicate that vision passionately to your employees and to the outside world. ----Planning Have you just launched a new product? Then you better have its retirement strategy drafted. Stephen Covey likes to talk about beginning with the end in mind. Good advice for product managers, too. Have you thought through responses to various scenarios? What if the economy tanks and demand dries up for the product, then what? Are you nimble enough to adjust? The events of 11 September drive home the realization of just how quickly our world can change. And while we can't anticipate every eventuality, we can be prepared for most of the scenarios through good, solid planning. ---Discipline A mentor once told me, "Never fall in love with your product." Easy to say, hard to do. Can you look objectively at your product, the one you sweated blood over to launch, and make the decision to retire it? Putting "Ole Yeller" down is easy compared to pulling the plug on a cherished product. Yet, this is the hallmark of excellent product managers: the ability to maximize shareholder, or owner, value by making decisions that are best for the company. That's the strategic component of product management. Next week, we'll look at the tactical piece of product management, the Directing. John Riggins (jfriggins3@aol.com) Vegas Vacation has the best rates on Las Vegas Hotel Rooms. Don't make a reservation without calling us first! Call 800-637-6442 or visit our ad in the Internet 800 Directory: http://inter800.com/02281174.htm *02 Complaints Unfortunately, there are many times when customers have a problem or a complaint about the service/product they've purchased. If handled properly, these "negative" situations can actually be highly profitable. Solving customer problems gives you a chance to build your customer's trust and oftentimes opens the door for future or additional sales. The first step in implementing this philosophy requires changing the way you and your employees view these situations. Too many times, complaints are avoided or dealt with harshly, as the individual providing customer service takes the complaint personally. Remember, customer complaints are usually not attacks on the character of the person dealing with the complaint. In fact, most times, complaints stem from a misunderstanding of the product/service itself. Knowledgeable, patient, helpful advice goes a long way towards helping your customer get the most out of your product/service, thus paving the way for re-order or the purchase of additional products. More importantly, the time and patience demonstrated shows your customer that your company cares, which builds loyalty and may generate referral business, even if the complaint or problem was not solved. The person providing service should look at these so-called negative situations as opportunities. You may find that when asking, "How may I solve this problem?", the answer is the sale of an additional product or maybe an upgrade of the existing product/service. Let me share the following research from McKinsey and Company: Customers who have major problems but don't complain about them have a repurchase intention rate of about 9%. Those who do complain, regardless of the outcome, have a repurchase intention rate of approximately 19%. Customers who have a complaint resolved have a repurchase intention rate of 54%. Customers who have complaints quickly resolved have a repurchase intention rate of 82%. Notice that simply providing a forum to complain (ie: toll free number readily available, Contact/Feedback Links prominent on web site) doubles repurchase intent. It should go without saying that you can't reach the really large numbers (54 & 82 per cent) without first being aware of the problem. There are many ways to convey this attitude to employees providing service on your company's behalf. In some cases, paying commissions or bonuses for upsells or resells is effective. It may simply be necessary to explain to your employees that their services would not be needed if not for the customer with a problem. I highly recommend the practice of posing as a customer with a problem to evaluate how you are treated (mystery shopping). I know that many of you already possess this mentality and I would love to hear your success stories. If I receive enough feedback, I won't guarantee it, but you might just end up in the newsletter. George Paul (george@gotollfree.com) Banners? Pay-per-click? Why not target your market with links or information placed in relevant content? The Internet 800 Directory Newsletter offers direct access to business people who are interested buyers. Advertising: Information on how to sponsor this publication: Call 800-299-1879 Thanks for taking to time to review our newsletter for this week. If you know of anyone that might benefit from receiving this newsletter, send them to (http://www.inter800.com/news800/ ) where they can subscribe. All Contents Copyright ©1995-2001 The Internet 800 Directory Subscribe To The Newsletter: |