What Happened to Fedex

I do not know when Federal Express became too big for it’s own good, but it most certainly has.  Fedex, as it is now known, officially began operations in 1973 and today ships 10.2 million packages to over 220 countries daily; which is most certainly a gargantuan management challenge.  Over the years Fedex earned a well deserved, reputation as the guaranteed method of getting your package delivered "When it Absolutely, Positively has to be there overnight."

I have used Fedex through most of my career.  Like many business people, I have come to depend on them; but unfortunately, in recent years, something has changed.  As my mother used to say, “They have gotten too big for their britches.”

Last week, I sent a package via Fedex for next day delivery to an associate in California.  I believed the package would arrive when scheduled; backed by the Fedex “money back guarantee”.  In spite of the fact that there were no weather delays or service alerts, my package was not delivered on time but delivered a day late.  This caused my company many phone calls and great inconvenience.  When I contacted Fedex about a refund, I learned, to my surprise, the shipment was not covered by the Fedex guarantee.

Supposedly, without my knowledge or approval, my account was subject to a waiver of delivery guarantee.  I never signed any document or was made aware of this waiver nor would I have agreed to such a waiver.  Guaranteed delivery is the primary reason I use Federal Express.  Unless offered a significant discount; I can see no reason to waive the delivery guarantee.

After a rather heated conversation with the Fedex representative in Revenue Services, she agreed, “…only as a courtesy”, to refund the shipping costs to my credit card.   I am now awaiting contact by a Fedex sales representative to explain the parameters of this waiver on my account.  If you are a small business, who regularly uses Fedex, be sure to inquire about this waiver of delivery guarantee.

As corporations consolidate and become larger they are more often than not led by corporate finance.  In this environment, customer service is viewed as another operating expense to be controlled.  Corporations need to be reminded that customer service is not just another operating expense; it is why customers choose to do business with them in the first place.  

Is Donald Trump the Howard Stern of Politics

No one can deny the enormous impact Howard Stern had on radio and the entire broadcast media industry. Before Howard, radio was populated by plastic announcers. He blew up the medium. The management of the stations where he worked literally didn't know what to do about him, but Howard drew listeners and they listened intently. If you ever saw the movie Private Parts, you understand the contrast between radio before and after Howard Stern.

In 1981 when he arrived in New York, the largest media market in the country, WNBC station management was completely beside itself. The premise of broadcast radio was to draw an audience and Howard drew audiences larger than they had ever seen before. He talked about subjects like lesbians and his penis. He passed gas and belched on air. He had naked women in studio all the time and he had a general disrespect for what was then traditional radio. The management at WNBC who had a very strict format, which included saying the station name in a characteristic manner, were appalled by his on air behavior, but Howard drew audiences like no one before him.
He made outrageous fun of the other on air personalities such as Don Imus and Soupy Sales, which was unheard of at the time. Howard made a mockery of the news, which NBC held sacrosanct. The management at WNBC tried everything they could to bring him under control, but what they saw as a lack of control, was exactly why he was so popular and Howard knew it.

Before Howard Stern, radio was tightly formatted with program directors who held on-air talent to strict parameters of behavior and style. It was phony and everyone knew it.    Howard mocked everything and everyone in what was considered a tasteless manner but he had millions of listeners. Sound familiar?

Today over 30 years after he came to New York, his impact can be seen and heard everywhere from Sirrius XM radio to TV network sitcoms.    Interestingly, today, as one of the panel on America's Got Talent, he presents himself as much more mellow personality.

Today Donald Trump is doing to the Republican party and national politics, as a whole, virtually the same thing. Politics in America at the presidential level has always been a patrician game. Statements like "The gentleman from (fill in the blank)...." were used to politely disagree with one's opponent, and everyone knew it was phony.

Sure over the last decade the general discourse has gotten more harsh with the advent of the Tea Party and the "over the top" disrespect which many in political life have shown Barack Obama, but nothing compares to The Donald.  People love him because he says things they are already thinking, but no one in politics is willing to say. No mincing of words, no pseudo politeness, just bare knuckled comments. He has used words like "bitch" and even referenced the deadly "c" word from his podium. And his supporters love it.

Finally someone was saying what they were thinking. And just like Howard Stern 3 decades ago, the managers who want to control politics, like the station mangers who controlled radio, are at a loss. Donald Trump has brought more new voters to the booth than anyone since Barack Obama, but instead of a non-committal message like Hope and Change, The Donald unapologetically says things like, "We will kill their families." He even said that Megyn Kelly was probably on her menstrual cycle when she gave him a hard time in an early debate.

Do you know how many times in my business life I have heard other men suggest that a women who did or didn't do something must have been on her period. The Donald is tapping into the same zeitgeist that Howard tapped into on radio over 30 years ago.

The question is: Will Donald Trump mellow upon reaching his goal as Howard did when he finally made it to the pinnacle of television entertainment.

An Open Letter to Marissa Mayer:

Dear Ms Mayer:

You are the very well paid Chief executive of a major search engine who is highly respected and admired by many both on and off line.

I cannot understand why a company of Yahoo's stature needs to hijack my web browser so that each time I open a new window, I see Yahoo Search.  Then when I must spend time attempting to reset my browser preferences, it is coded it in such a way that my browsers (Chrome, IE) go right back to the Yahoo search page.

I expect these tactics from fly-by-night web businesses who need the traffic.  Is Yahoo really that desperate for traffic that you must stoop to hijacking personal browsers to gin up your traffic numbers?

It is annoying and frankly very low brow.  You are paid quite a bit of money to "attract" visitors not "trap" them.

These tactics only result in frustrating me and turning me against the Yahoo brand and frankly in today's world a "brand" is all you have to differentiate Yahoo from any other search engine.

I doubt you will personally read this letter, but I write in the hope that the sycophants who surround you will attempt to correct the situation.

Looking forward.

Sincerely,

Martin Amadio

What Makes a Drink Worth $25?

Back in the early 80's I was working in Chicago. Around that time the Palm restaurant opened a location in Chicago in the Drake Hotel, around the corner from where Playboy magazine had its offices at the time.

The Palm was a great after work hangout for people in the publishing and advertising businesses in Chicago. Since I was on a 1980's style expense account, I was there several times a week after work and got to know the bartender and maître d'. Their names were Frank and Glenn.

Both had worked for the Palm in New York and moved to Chicago to open the new location. Frank, the bartender, was the perfect host for an after work crowd looking to network. He would routinely introduce me to other people at the bar who might of have similar business interests and vice versa. In other words he was much more than a bartender. He was like a master of ceremonies bringing people of similar interests together to enjoy a few drinks after work and helping them make connections.

I left Chicago in 1985 but always remembered the time I spent at the Palm in Chicago. In the early 90s I moved to New York City and one day I walked into the Palm Too on 2nd Avenue. As I walked in the door and headed to the bar, there was Frank from the Chicago Palm. He greeted me with a hearty, "Hello Marty" and proceeded to set me up with a very drink I had been drinking back in Chicago years earlier. He made me feel welcomed, important and like an old friend. I went to the Palm for drinks and dinner whenever the occasion warranted and Frank always made me feel special.


The Palm is an expensive place to drink. I can't remember how much drinks cost, but with tip it could easily run over $20. It may even be higher today, but the way I was treated made it worth every penny. Geographic circumstances have prevented me from visiting the Palm for nearly 10 years. However, when I think about customer loyalty and customer experience, I always think about Frank and the Palm.

This is the epitome of customer experience and service. I could have had drinks down the street for much less, but I went to the Palm because of the way I was treated. They delivered an extraordinary customer experience. I have always believed that people do business with people. If you and your staff can make connections with your customers, you can bridged the gap between price and value.

Today we live in an omni-channel world. Many of the things we buy can be bought virtually anywhere, anytime. What are you doing to insure that customers come away from transactions with your business happy, satisfied and feeling like they are more than just another cash register ring?

Aim to create fans and not just customers.

P&G is Making a Long Term Mistake Shrinking Its Agency Roster

The headline reads:

P&G Plans to Cut $500 Million in Agency Fees by Shrinking Its Roster

This decision is a result of procurement departments commodifying creative. 

The adage that, "You can't manage, what you can't measure," is why "non-media" spend is under attack by a corporate mentality that believes creative is interchangeable, These "accountants" recognize that media can be measured and managed and therefore negotiated for the best procurement value. They do not have a metric or method for valuing creative. 

Granted,, there are many excesses and overlaps in the agency world.which could be consolidated for better value, but great creative cannot be strictly measured or valued by procurement departments under the direction of CFO's. 

When a company is manged to a bottom line, instead of to a standard for the short term benefit of share holders it is only a mater of time until a smarter, better or cheaper competitor eats their lunch. This is why private label products are so successful today. With no creative and little marketing, private label products are eroding the market share of companies like P&G. 

CPG companies must understand that in the 21st Century they are no longer just selling products but are actually marketing machines creating demand. 

Today,money should be spent on creative marketing in the same fashion which product development was at one time. When companies think like this, it is no wonder that the position of CMO is valued as it is in the C-Suite, at the board level and ultimately on Wall Street.

Read the article here.

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High school student is in hot water?

Is the school administration crazy?  Is the teenager crazy?  Is it me?
Maybe they aren't crazy at all and this is all a publicity stunt to keep Miss America in "the news".
It appears a high school student asked Miss America to his prom.  This caused his suspension and thus the publicity.
Well, the good news for the Miss America organization is that it worked.  Until this "news" I would not have even given a moment's thought to Miss America.  The publicity stunt worked.  Somehow the article found me and caught my attention in my travels on the internet.
Now you can be pulled into the Miss America publicity vortex.
To me this is brilliant 21st Century marketing even if it wasn't planned.  Maybe just a "happy accident."


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