KXEN EMEA User Conference -- Day 1

I am in Windsor, UK, attending the KXEN EMEA User Conference. The theme for this event is "Success in Business Analytics". This seems such a relevant topic. Analytics had moved from an academic and research world to the business work a couple of decades ago. This also defined the success of companies such as SAS. Incidently, SAS still retains the "Institute" label in its name. Does that mean it still has flavour of academic and research ... maybe.

Statistics managed a transition into business applications. In some cases, it defined the survival of the organization. The best example is actuarial function for an insurance. A hard core statistics driven function that is at the core of an insurance business.

For other functions, such as marketing, it is still regarded as a "good to have" approach. Marketing is still focussed on mass media, on having the most creative ads, on winning the Lions award and in some cases on being the PR for the CEO (see my post on this).

Even the concept of database marketing seems to be wrong. I meet a lot of people who claim to be doing database marketing. Unfortunately, their understanding of database marketing is that there is a "list or database" of people and they send out communciations to this list.

So while statistics managed to cross the divide between academics and business, it is still not accepted and made welcome in the business world.

I hope to capture ways in which analytics was made a success in business during this conference.

The conference is yet to start, since I am an early breakfast person, I decided to use the time to pin down my thoughts. I will be returning with my take at the end of the day. For now, see the beautiful autumn in front of my room balcony.

Dumbest guy on the flight ... The Pilot

"Dear Chairman,

Greetings and best wishes to you.

Let me take this opportunity to highlight a deficiency in the service of Kingfisher Airlines.

Last Monday, I was flying on IT316 from Delhi to Mumbai. The flight was STD at 2050 hours. Accordingly, all passengers were boarded and we were ready to take off. Or so most of us thought.

Around 2115 the co-pilot announced that the pilot has still not arrived. He said the pilot is coming from his residence. The pilot is stuck in Delhi traffic and hence delayed. Since it is traffic, it is not fault of the airlines and there is nothing they can do about it. He also stated that he has "just" spoken to the pilot and was told that the pilot has reached Mahouli and would reach airport in 15 minutes.

Now, even a non-Delhite like me knows that based on the traffic outside the airport, there is not way the pilot can reach the airport in 15 minutes.

Around 2200, the co-pilot came back on the announcement stating that he has "just" spokent to the pilot and the pilot is still stuck in the traffic. He said we will take off immediately on arrival of the pilot. He also stated that the ATC has given him the takeoff slot. And again he stated that since it is traffic, it is not fault of the airlines and there is nothing they can do about it.

I would like to point out that the approach to the Delhi airport is always crowded duriing evening hours. Me and about 100 other passengers had taken this into consideration and left our respective locations much in advance to reach the airport. The rest of the airline crew were also in the aircraft in time.

So I would like to inform the pilot that there was something he could have done. "Left early". The co-pilot harping repeatedly on the pilot coming from his residence created a bad taste. There were people on the aircraft, who were either coming from their residence or going towards it. For one person, the pilot, a whole lot of people had to suffer inconvenience.

I am typing this out as I wait for my boarding in the KF lounge. This mail is not a complaint or a crib. I am still flying KF. Sincerely hope such incident dont reoccur.

Regards"

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I have sent this mail to the Kingfisher feedback. Its really sad to know that the pilot turned out to be the dumbest guy on the aircraft. I really wished the flight could have taken off without him... but alas such things are restricted to fantasy.

My past comments to KF has never resulted in any response or even acknowledgement of the communication. I have regularly filled in the feedback form in the flight highlighting deficiencies as well as exceptional service. But zilch response. I filled up the feedback form for this flight also.

Lets wait and watch how KF responds (if they do).

Stupid.Maybe..... Cheated.Surely....

I have noticed a very peculiar thing about the menu at the ATMs of HDFC Bank. While nothing seems wrong with the menu flow, it is when the option of having a receipt printed for the transaction is presented that something odd happens. The options for the response are reversed. The buttons that are used to capture the "yes" response is now switched to reflect the "no" option. And it is only for this question that the reply buttons are switched.

The first time I realized this was when I pressed the erstwhile "yes" button and registered a "no" to the "print receipt" option. I felt so stupid that I did not analyse and read the screen before pressing the "yes" button. I made a mental note of this. The next time I was at the ATM, I again accidentally clicked the top button which was a "yes" response on all other questions. Now I was really angry at myself for having fallen to this trick twice in a row. I felt cheated that I could not get a receipt for the transaction I just conducted.

From that time onwards, I have reprogrammed my mind to always pause at the question of "print receipt" and always respond with the correct "yes" button press.

Yesterday, I walked in to an IDBI Bank ATM. The menu were so standard. No doubt I felt so good walking out of the ATM. With HDFC Bank, I always feels as if I prevented myself from being cheated out of a receipt.

I can only guess that HDFC Bank has reversed the menu for saving the cost of printing. Now if this is for purpose of saving cost, then I wonder how much of a cost will this translate to. But, lets say in the spirit of CSR, if this is to save one tree somewhere, then it has been done in a bad manner leaving a bad taste in the customer who just "fell for the trick".

A better way would have been to prominently display the message encouraging the customer to opt for no receipt. If the reason is for saving cost, then the benefit could be shared with the customer by say crediting 1 Rupee for every 10 transactions where the customer did not opt for a reeipt.

But the way, the bank went about it was very sly leaving the customer feel stupid sometimes, but cheated always.

True Value of "Free"

Last week I bought a Horlicks. Part of my regimen to be fit and healthy. The bottle came with a free AddGel pen. The comment on the packaging said boldly "Free gel pen worth Rs. 30". During checkout, the lady at the counter packed the free pen alongwith the other items.

I had completely forgotten this episode. It was just one of those routine, boring grocery purchase chores that had to be done and was done with.

It was when my daughter walked to me and said "Dadu, They lie to us. I bought same pen for Rs. 27 and on the bottle it says it is Rs. 30." It was just an observation from her and she passed me onto more important things like drawing her 1029th shoeflower.

This comment set me thinking. How right was the manufacturers of Horlicks to print the value of "Rs. 30" on the pack? Are they to blame if market forces or AddGel makers decide to change the purchase price. The value printed on the pack... from whose perspective was it. It definitely was not from GlaxoSmithKline. They would have bought it at bulk... costing them probably less than 50% of the amount mentioned. It was surely not from the consumer perspective, when alternate channels of procurement sold the pen for Rs. 27.

The word "Value" is so misleading. Everyone of us who have bought a car has fallen into this trap. The dealer always puts a "list price" value to each accessory he throws in free. I remember a friend who bought a Swift a few years back. He sat down with the dealer to negotiate on a better deal. The dealer as usual starting listing the accessory he is throwing in free and stated the list price against it. He worked up a total of Rs. 35,000. After the entire discussion, my friend coolly told him that he will buy the accessory separately and the dealer just deduct the "value" of Rs. 35,000 from the price of the car. This had the dealer fuming. But eventually he gave in and gave him the discount of Rs. 35,000. My friend also got a couple of accessories free at the time of delivery. He got the same set of accessory fitted onto his Swift for Rs. 17,000 from alternate sources.

I enjoy watching the bundling of items by electronics retailers. A couple of years back I bought a gas stove from Snehanjali. Once I selected the model of stove and asked for a discounted final price, the sales person informed me that I get a free steam iron with it. For someone who already had three steam iron at home, what was the value of an additional steam iron. It was probably negative. I told him that I dont need the steam iron and would rather get a discount. He started the discount with the value of the cost of the iron to him. Whereas, I started the negotiation with value of the iron as advertised. Finally, we decided to settle mid-way. I came away with a gas stove, a discount and minus the steam iron. Today, when I see adverts showing free steam irons with washing machines, and other such items, I chuckle trying to think of what the customer might be thinking holding on to his third or fourth steam iron.

Back to Horlicks and GSK, it probably would have been better for them to just mention a free gel pen rather than state the value of it. Especially when they do not control the value.

Empowering customers

Enough talk. Now its time to walk the talk. Time to apply all my principles of CRM.

I have the power to choose the government when I vote. Sadly the students of Maharashtra do not have the power to choose their favourite college.

But soon, I am bringing you another area of empowerment.

Keep following me to hear more about it.