Fast Company May This is a Marketing Revolution Page 204 By Charles Fishman Nathan Johnson

I found this article to be very interesting as it added more proof to the often-heard saying " It doesn't matter how good the product is, it's how you market it that counts." The company in the article happens to be involved with credit cards but their view about what a credit card represents differs vastly from what most people think of. Mention the word credit card to most people and the terms, finances, borrowing money, interest rate, and finance fee pop into their heads. The company " Capital One" thinks in terms of information. Every time someone uses their card they are analyzing what the person bought, why, and when. After that, the question seems to be how do we sell them more. They have radically changed the way they service accounts and generate income. They used to waste their time making calls to sell products but realized why not take advantage of the selling opportunity afforded them as people called wanting updates about their credit card accounts. An example of how good they are at what they do is the amount of copycat marketing that is done by other companies trying to compete. The hard part in dealing with all this marketing innovation is how to keep ahead. Or do they need to? The founders of the company have been on the edge since the beginning but have realized there is value in customer retention as well. So they have spent a good deal on new marketing programs while meeting the specific needs of those all ready there. Enabling them to do this has been the development of computer software that route customer's questions as soon as the last number is punched into the touch-tone phone. Everything is computerized and the computer makes most decision before the customer ever talks to a human voice. Sometimes, the computer does it all. The amazing thing about the computer routing calls is that it sends them to the right place 60 - 70% of the time.

How would this system of doing business fit in with The Extension service? I can see a good and bad side to it. We are doing something like this presently with the Info U Line. And what I mean by this is that we are letting the computer do most or all of the work. It answers questions by letting people hear prerecorded messages about certain topics or refers them on to actual specialists. This type of system is time saving on both sides of the fence. And doing education this way seems to work in the larger metropolitan areas but I'm not sure how well received it is in rural MN. I think residents here like to have the personal touch of visiting with a person. But I think the point is well taken that Extension, as well as any business, needs to do all it can to keep its face in the public's eye to get the recognition it needs to survive.

-- Anonymous, September 15, 1999

Answers

Nathan, I'm testing the discussion forum to see if I can find the source of the problem you're having.

-- Anonymous, October 27, 1999

Response to Article by Nathan Johnson

This Is A Marketing Revolution

Nathan, I think you are right about the perception of INFO-U in Minnesota. Generally, I think folks in the metro area have become more accustomed to automation on the telephone, due to the size of businesses, etc. In rural areas, or Greater Minnesota, I believe we don't encounter it on a daily basis, so we aren't as familiar with it, or as comfortable. But I do think INFO-U is serving a great function and meeting some important needs. People get the information they are seeking and can find it at their convenience. The downside is the ability to go further, since you are talking to a computer.

I was intrigued by the company "Capital One." I like the idea of finding out what the person was purchasing, why and when, as they use their credit card. I can envision a whole new marketing campaign for uses of credit cards. I also wonder if they ever consider marketing to a consumer who pays off their bill each month and only uses it for travel or emergencies, versus every day purchases. I imagine no credit card company wants lots of those customers, but on the other hand, they might attract a whole new clientele.

Customer retention is also an important concept that I am not sure many companies ever consider very hard in comparison to expanding their clientele. I have gotten to the point that when a company I already do business with consistently calls me or mails information from me, I am turned off and don't often continue my association with them. I feel they already have my business so what more do they want from me. I much prefer a business that treats me well and rewards me for being a valued customer. It's great to receive a coupon in the mail for a future discount or an upcoming event. Many times I've told a telemarketer that I am happy with my phone service, etc., because I like how they treat me and I appreciate their customer service. So maybe I pay a little more, but if I value the service and quality, I believe for me it is worth it.

I love the concept of a computer routing customer questions. What a great way to save company time and remove the mechanical element and have a human voice on the other end of the phone. This could be a revolution in technology as well, although it is scary to think of computers that "think" and can accurately respond.

Marketing and technology have come a long way in recent year and I see even more changes in the near future, as changes are happening on a daily basis. Looking into the future makes me nervous, as I am also amazed at the past. I think back to 10 years ago when microwaves, VCR's and computers were not in every home, and today they are often out of date before they even leave the store. I am anxious to see how new technologies affect the methods and practices of companies in the future.

-- Anonymous, October 20, 1999