The 70% Right Doctrine


Last week a marketing colleague at GE Healthcare was sharing with me that he needs to work on making decisions faster.  He works in the financial division and has been historically known for his analytical ability and robust analysis.  However, recently he has received feedback (via 360) that traditional strengths are being perceived as weaknesses.  In particular, he’s now perceived as being “slow to make decisions” and they question his “flexibility.”  He asked me for my advice.

Here’s what I said:

“One thing I’ve noticed in people who make good and timely decisions is that they look to get it directionally right, without analysis paralysis.  I’ve particularly noticed this at the two start-ups I’ve had the opportunity to market, Centocor and Agility Healthcare.  Their management team had this unsaid, yet living philosophy of getting to 70% accuracy then acting on the decision.”

Their philosophy is basically that if you get something 70% right, it’s good enough.  Why?

5 Reasons to Adopt the 70% Right Doctrine

 

  1.  No one really has the time or the resources to get decisions 100% right.  Ever.  
  2. Every decision is a point in time with certain parameters (competition, market forces, client expectations, etc.) constantly shifting.  So, all decisions, at some level, are outdated the longer you work on them.  Therefore learn to make decisions that are directionally right, faster. 
  3. Because of No. 2, all decisions require some modifications at execution.  Meaning that final time to execution will always be adjusted anyway.  So, if you know your decision is directionally right and some modifications will be needed, live with the ambiguity and adjust for it, faster.
  4. Being first, even if 70% right, is better than being 100% right and second – most of the time.  Entrepreneurs know this and live by this doctrine.  This is widely recognized as the first mover advantage.
  5. There are inherent advantages to first movers.  According to Wiki , first movers can capitalize on 3 primary areas:

A.       Technological leadership.

B.       Preemption of scares resources.

C.        Switching costs and buyer choice under uncertainty. 

Commentary

 

There are clearly pluses and minuses to this doctrine.  But, I propose that for MOST of us, we do not need to obsess on getting to 100% accuracy on everything.  Seth Godin, in his book Linchpin, refers to such people as perfectionists who never “ship” the product in their endless pursuit of needless incremental improvements.  My colleague Joe (@jcamaratta) refers to this as “chainsaw accuracy.”

What we do in marketing is not “rocket science,” as sophisticated as it can be.  Consider adopting the 70% Doctrine!

 

Good marketing!

Ramiro Roman

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Assessing customer service at its weakest point: United Vs. SPG on customer service


 

There are many ways to assess customer service.  One way that I recently experienced is by trying to procure “free” or “awarded” travel and lodging.  I wanted to blog about this because I thought “free” was a good measurement of how companies would treat their non-paying customers.  My theory is that service can be gauged by its potentially weakest link. 

A personal case study

A week ago, I was presented the opportunity to attend the PM360 2010 Trailblazer Awards in Manhattan, NY.  As a member of PM360’s Editorial Board, I was happy to accept this invitation to witness marketing excellence and network with a selective group of people. Unfortunately for me, my budget was tight after two family vacations this year.  So I decided to use award travel to fund my needs. 

I turned to United because I have been a customer since 1992.  I don’t use them exclusively, but over the 18 years I have accumulated over 400,000 miles.  I earned a “Free Travel Voucher” from them, with a 1-year expiration date back in February, so I wanted to leverage that voucher. 

Here’s a summary of my experience with United:

  • Could not book free travel via web directly
  • The website did not have a specific phone number for “free” travel, so I called the general number
  • Spent 20 minutes through a voice recognition system, asking me what dates and times, only to frustrate me and I eventually punched the “0”… after asking me if I wanted to participate in a survey, which I answer “no” I was routed somewhere and there was radio silence for 3-4 minutes after which I hung up [reflecting back on this, it’s sad that this voice recognition is how they treat their paying customers… yikes!]
  • Re-dialed the general 800#, immediately pressed “0,” got live operator who did not have access to my United.com information (acct number, address, e-mail, etc.)
  • The operator was difficult to understand, I had to repeat the spelling of my name 4 times (I know my name is hard to spell) and my address a couple times
  • She did book a flight, but told me I had to get “ticketed.”   I was given 2 options
    • 1) drive to the nearest airport within the next 24 hours and waste 2 hours of my life  or
    • 2) mail in the voucher along with all other information to a PO Box.  I chose option 2 and was told it would take 2-3 weeks for me to receive my ticket. 

 

Words to describe my brand experience are: Bureaucracy, confusing, uncoordinated, staunchly, anxious (to get my ticket). 

What disappointed me most is the fact that they did not have my profile on line… it really made the experience so 1980.  I hope the United/Continental merger brings flyers better service. 

For lodging, I happen to have joined the SPG hotel program this June.  At the time they had a promotion where I earned a free night.  The hotel where I stayed was priced at $129/night.  I only stayed 3 nights in their franchise. 

Here’s a summary of my experience with SPG:

  • Could not book via web directly, but that’s where the similarities ended
  • The website offered a 1-800# exclusively for awarded lodging
  • Live operator answered within 45 seconds
  • Her timeliness caught me by surprise and I did not have all the pertinent information… she hand-held me through the process, searching for the best location in Manhattan
  • Within 2 minutes she landed me a reservation at Le Parker Meridien New York, which starts at $429/night!  I couldn’t believe it…. I was expecting to staying in NJ in a hotel similar to the price I paid… this completely “wow-ed” me
  • Then, she quickly accessed my SPG.com profile, did not have to identify myself beyond a pass word
  • E-mailed me the confirmation while I was still on the phone
  • She was courteous, easy to understand, used customer friendly tones and words (i.e. you are very welcome).

 

Words to describe the experience: Delighted, positively surprised, progressive, welcomed.

  

So what does this have to do with marketing?

 

EVERYTHING.  This is not a rant or a whine; eventually I received what I was looking for, more than anything I’m attempting to communicate marketing take-a-ways from my experience.  The experience we feel as consumers reflects the brand positioning.  Even in areas where customers are not “purchasing,” we should be mindful of our communications.  As a matter of fact, I hereby propose that we should measure our service brand promise at the seemly weakest points.  If it can pass the brand position test at those perceived weak areas, it stands the strength of the brand. 

Here’s a test, in your company and for your brand try the “returns” or “free give away” or even “discontinue” departments, your experience will tell you just what communications you are sending to your valued customers.

Good marketing!

Ramiro Roman