Posts Tagged: mac os x

strategy — 10 Comments
25
Jan 10

Microsoft: needing a lesson from Disney

Attn: Microsoft — you have a message from Uncle Walt

As the Apple love-fest enters a new phase this week, I couldn’t help thinking about how some brands are so good at bonding with customers — while others excel at shooting themselves in the foot.

I flashed back to a moment I had in Disney World recently with my 12-year-old son. In an attempt to dazzle him with the depth of my Disney knowledge, I told him how, eons ago, you couldn’t just go on any ride you wanted. You had to buy this silly book of tickets (E-Tickets were the really cool rides), then hassle with buying extra tickets when you inevitably ran out.

“That’s stupid,” my son observed, “I bet nobody came here then.”

Pretty good logic, kid. But the truth, of course, is that tons of people came here then. It’s just that the Disney people were smart enough to look past the gaudy numbers and realize they could do it better. There was a way to make customers feel happier still, and pull them even closer to the Disney brand. The one-price, all-attraction pass was born.

I get the feeling Bill Gates and Steve Ballmer have never visited Disney. Or Universal, or Six Flags, or any of the major parks — since those businesses have all adopted the same winning system. The way they sell Windows is a hassle. It’s about Microsoft first, the customer second.

They’ve gotten a wee bit better with Windows 7, but still cling to the old model. There are now ”only” three versions at retail: Home Premium ($120), Professional ($200) and Ultimate ($220). The “good” version takes some serious investment.

Meanwhile, over at Apple, they’re selling the all-attraction pass. Only one version of Mac OS X exists. It’s got everything in it. It’s for students and moms, Hollywood film editors and scientists — and it’s priced at Microsoft’s low end. Like Disney, Apple realized (a) it’s easier to market one product, (b) it’s easier for customers to understand one product, and (c) it’s good business not to make people feel like they’re being gouged for every nickel.

Imagine how much happier Microsoft customers would be if there were only one version of Windows 7, all features included, reasonably priced. Just a fleeting knowledge of human behavior tells you that more people would buy the product — and more people would feel good about buying it.

Maybe then they’d actually have something to dance about in those Microsoft Stores.

strategy — 6 Comments
1
Sep 09

Branding: a love story

love,money,heart,graffiti,red,art,wall,creative-5275020a2f8a58b41160ba62723846bd_m

It's true

Many tons of books from many tons of experts have been written on the subject of branding. Happily, long ago one of my pithier mentors distilled it into a mere five words: brands need to be loved.

Love, as we all know, is far more powerful than money. Conveniently, it’s also a pretty good way to make money. If your customers love you, three good things will happen: they’ll keep coming back, they’ll introduce you to their friends and familes, and they won’t hold it against you when you screw up. This all translates directly into revenue. Being the perky optimist I am, I believe we’re all born into this world eager and ready to love our brands — we just don’t give it away for free. We need to be loved before we start doling it out. (Some of us are really easy and would gleefully settle for just a little respect.) As short-sighted companies inevitably discover, things don’t work out so well when you decide to skip the love part and go right for the money.

Unsurprisingly, Microsoft and Apple are good examples at opposite ends of the spectrum. Microsoft gives you four distinct Vista products, each with its own price (up to a whopping $320) and unique set of features. Apple offers only one version of Mac OS X and it gives you all the features — whether you’re a 12-year-old beginner or a Hollywood film editor. Forgetting Snow Leopard’s ridiculously low price for the moment, the all-in-one Mac OS X Leopard went for a reasonable $129. Which approach shows more love for the customer?

Now look at how the same two companies sell music. Apple sells individual songs for $.99 or $1.29. You pick your songs and pay by credit card. Done. Microsoft prices songs about the same, but first you must add Microsoft Points to your account at $.79 each, then buy the songs with your Points. You’ll be comfortably ensconced in your retirement home long before your Point balance ever returns to zero, so Microsoft will forever be playing with your float. Which shows more love for the customer?

Understanding what we like and what drives us crazy requires zero effort. It doesn’t take teams of researchers, it’s just common sense. Every consumer brand should want our love — to get it, they need only act as if our relationship is more important than money. Idealistic as it may sound, once we have the relationship, the money will follow. Honest.