Reinventing and rebranding yourself

When it's old, don't be afraid to reinvent it. Just look at Simon Cowell. As American Idol got old and boring, he left and recreated it in the form of a new brand: The X Factor. We'll see how it goes for that show. Rebranding by creating a new product has worked for plenty of other companies before FOX.

Are rebranding and creating new products successful and reasonable actions? Will X Factor succeed and American Idol fail?

One GIANT bad move by Netflix

Money is important, and cost hikes are inevitable, but a recent move by Netflix to raise prices for those who want both mailed-to-home videos and instant streaming may be losing it more customers and losing more money than gaining.

The change (see below), which was announced by email and on the Netflix Facebook page, has received over 13,000 Facebook comments on the Facebook announcement, most of them negative. Users are declaring they will drop Netflix for Hulu Plus, Amazon Prime, or Redbox if Netflix does not get rid of the change.

On a move (or lack of movement) almost as bad as the announced change, Netflix has yet to respond to the negative comments.

Marketing choices are difficult to make, and may require higher prices, but without good public relations, those decisions will hurt, rather than help a company. This is why clear communication is so important, as is having a prepared response for negative reactions. It seems Netflix has failed big time here.

Will Netflix users keep good on their word and drop the service? Are there any positives to Netflix's actions?

Read the Netflix announcement I received below:

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.

We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.

–The Netflix Team

When does offering personalization go too far?

Can personalization go too far?

MySpace offers a lot of options for personalizing your page, but to the point where it became cluttered, flashy, and immature.

Facebook offers applications and games. At one point, they had separate pages for users - on for information and one for applications and boxes (think "What Disney character are you?" quizzes). Facebook, too, becomes easily cluttered.

Twitter offers personalization for one solid background with a set layout for everything else.

Google+ has very little style personalization and a lot of informational personalization right now.

Who has the right idea? How much should a customer be allowed to personalize their options?

In times of trouble, make your policies clear

Lesson #1. When a customer complains, apologize, but make your policies clear.

Lesson #2. When making your policies, do your best to be reasonable. It will avoid a lot of problems and a lot of complaining customers.

Back in March, I wrote about a bad experience I had at a Carl's Junior. I later learned that the problem wasn't that the people at the restaurant were being rude, but that CJs had a certain policy that the restaurant managers were going by. Rather than just outright demanding I return the food when it was their fault their ATM machine was not working and they hadn't warned me, they should have told me the corporate Carl's Junior policy. Then, I would have been fine with what was happening and taken my concerns to the corporate offices, rather than yelling at the nice people at the restaurant.

I thought about this more after a recent interview I had for a position at a local theater. My interviewers asked me what I would do if a customer at the box office was complaining or asked for something I couldn't give them. I replied that I would stay calm, say what I could, and bring in my supervisor as a last resort, if it came to that. Upon further consideration, I realized how important it would be in a situation like this to make the theater's policies clear. For example, if it was concern over a ticket, I would tell the customer the policy and point out that it was made clear on the theater's website and when the patron bought his tickets.

Of course, some companies just don't think when they create their policies. So, once again, the two lessons here are:

1) When a customer complains, apologize, but make your policies clear.

2) When making your policies, do your best to be reasonable. It will avoid a lot of problems and a lot of complaining customers.

Giving your organization a face

Customers like organizations and businesses to have morals, personality - to have a face to them. This applies to a website just as much as it applies to the need to provide good customer service.

I've been doing some work for Hillhouse Opera Company, a new opera company in Connecticut. Currently, their website is not attractive. The colors aren't engaging. There's no logo. And the website has no production photos. Playhouse Merced, which has a lot of good information on its website, has a similar problem. It is missing a face, as well. It has a logo, but the photos are old and are only on one page.

Think of logos and pictures as a major part of your branding. In many ways, they are your face. They set the atmosphere of your website. And, aside from this, they wet the appetite of your customer. If a customer sees something they like, they'll be more interested in buying your product. But if the customer doesn't even know what your product looks like, they'll think it a risk to try your product.

You have to earn their trust. You have to own the right impression in their mind.

What are some other ways you "brand" your company?