Status Update I
I wanted to share two updates to recent posts: the Grand Hyatt New York and Netflix.
In response to my post about the Grand Hyatt New York not being enabled to allow me to put my luggage storage fees ($8) on my hotel bill prior to checking out, I received the following notification via email from Mr. Thomas Blundell, Senior EAM Rooms Division of that hotel:
"We are working to devise a procedure that will not require guests to return to the Front desk in order to have the charge posted. We hope to have this procedure up and running one week from today." (6/30/08) I applaud the Grand Hyatt for this decision and appreciate the dialog. While mine was the only complaint that it had ever received on this issue, the Grand Hyatt nevertheless decided to invest in solving the issue NOT because of fear of widespread backlash (I can only dream of having that level of readership) but because it recognized that it was the right thing to do. These are the tough decisions, the RIGHT decisions, that enable an enterprise to develop and maintain a competitive advantage. ---------------------------------------------------------------------------------- I am afraid I cannot offer a round of applause to my next update, the Netflix Profile's decision. After 11 days of what appears to be a non-stop onslaught of unhappy customers via email, blog postings, and petition signatures (not to mention the unenviable press it received), Netflix announced that it is reversing its decision and will not remove the Profiles feature. Here is the email announcement users received last Thursday, June 30: And on the same night, Todd of Netflix posted the following on the Netflix Blog: As I stated in my prior posting on this issue, I have no problem with the company's decision to remove the feature but found significant fault with its (lack of) communication with its customers. And now, in light of this announcement, I must unfortunately scratch my head again: Why did Netflix change its mind? Since early 1999 when the Los Gatos, California-based company decided to create the unlimited DVD rental program, its execution has been nearly flawless. The introductions of specific features (and removal of others) were well timed and well thought out. The management of the multi-year pricing battles with Blockbuster were reasoned, thorough, and, well... clearly successful. In sum, Netflix makes the right decisions. As I read in bewilderment that the company had changed its mind I asked myself "what new information had Netflix received in the prior 11 days that not only cast doubt on its decision but, in fact, warranted a complete reversal?" Maybe it is that users of the feature value it. In Netflix product manager Todd's blog posting he stated that "we realized that users of this feature often describe it as an essential part of their Netflix experience." So the new news could be that the "very small minority" of customers who elected to use the feature... liked it. Kinda a stretch for me. Maybe they did not know that but I have to truly doubt that assumption. I would propose that Netflix knows a great deal about its user base including that users of features generally... like them. Self selection and all that... I would hypothesize that Netflix made the decision because it was overwhelmed and surprised by the volume of communications it received after making the feature removal announcement. And as I stated prior, my contention is that this was a direct response to NOT the decision that was made (temporarily made, that is) but the way in which it was communicated by the company. I think Netflix made the wrong decision to reverse itself. It has essentially told its customer base that (no matter how "small a minority") if it is vocal enough about something, Netflix will capitulate. This is the precedent it made on June 30, not a position in which a company wants to be. I liken it to parenting. Imagine I am with my small child in a grocery store and she wants to have a candy bar. Being that it is 9:00 am, I know, as the adult, that it is not the right thing to do and tell her "no." In response to this disappointing news she begins to scream and throws a tantrum on the floor. I now have two choices. I can cave in and calm the situation by giving her what she wanted in the first place. This has the impact of defusing the situation but does nothing for doing what is right as a parent. Her tantrum gave me no new information about the correctness of a small child having candy at 9:00 in the morning, did it? Clearly not. The other choice, the right choice, is to pick up my child and under the glare and judgment of every patron in the store, immediately cease my shopping trip and carry her out to the car where she can scream with wild abandon within our minivan. And, may I add, without the candy. That is the right thing to do. And Netflix? They opened a candy store on June 30, 2008. --------------------------------------------------------------------------------------------------- IF YOU HAVE READ THIS FAR, PLEASE TAKE A MOMENT TO COMMENT... THE VALUE IS IN THE CONVERSATION, NOT MY RAMBLINGS...
