I’ve been a vocal opponent (and customer) of Foxtel. A service that, as the web evolves is loosing its reason for being in my life. So I decided to disconnect my service and here is the interesting story of what happened.
I called the number and the options to choose from (1,2,3,4) for the appropriate issue. This surprisingly included ‘Press 4 to disconnect’. This was the first clue things aren’t right down at Foxtel. Any business that has this issue come up often enough to include it in the first 4 options of customer interaction has some issues.
So I click it and get put through to the ‘Customer Retention Center’ and they ask me why I want to disconnect. A few of the reasons I tell them include:
- I’m sick of seeing better offers advertised to new customers. (Screw the existing ones hey!)
- They have reduced the services and kept the price the same for my account.
- I can’t get movies on demand (which I’m prepared to pay for) without signing up to a more expensive packaging (WTF, the tubes are already in my house?)
They apologise, tell me I’ve been a good customer for a few years, so they offer me a $30 discount per month. Which is 30% off what I’ve been paying. I retort with, ‘if I’m such a good customer why do you only try and keep me once I’ve already decided to leave you?’ Seems to me they have things back to front at Foxtel.
So I took the discount for now – I’m moving house in 2 months and it is all over for me and Foxtel then.
My advice to any Foxtel subscriber out there is to call up to disconnect and get the discount anyway and hack their already flawed proposition, before it gets hacked entirely by market forces.
It’s all shifting in front of our eyes. A new plutocracy is arriving. Some of the roles have already been filled…. Maybe there are some new ones to arrive that we just can’t forsee yet. But to enlighten us a little, let’s consider 3 examples:
The real question for entrepreneurs is which ailing legacy industries are still waiting for their shake up?
At first we got confused about how to make money out of the internet. We thought we should be able to demand payment. Silly us, we forgot about the first lesson in economics – that pesky demand and supply. Supply doesn’t automatically equal demand – especially financial demand. On the internet things work in reverse. First value must be created, then it is extracted. It’s the opposite to the previous industrial world of buying and selling.
Now it’s proving, then earning.
3D printing is really starting to blow my mind. As far as I can tell it is taking the information we are currently living through and making it physical. It’s the missing link. The start of being able to create everything from nothing – ephemeralization. Converting the first 20 elements into stuff, by organizing information, ones and zeros. About 20 years from now, you’ll remember talk about 3D printing, the same way we remember hearing stuff about a connected world through computers in the mid 1980’s. I think it will be more disruptive and bigger than the internet.
In order to just make sure you are across what is happening here’s the most famous Youtube Clip about 3D printing which is from the Discovery channel. In the coming weeks I’ll be posting a large article about all the implications on the world. And before you watch the clip below here is a list of some things that have already been printed by such machines:
Bicycles, cars, tools with moving parts, furniture, drone aircraft and even balls bearings.
It’s coming and it is going to change everything.
As far as I can tell their are 4 main reasons that a company will buy your startup. Particular in the web / tech fields:
- Talent buy out
- Technology buy out
- User buy out
- Revenue buy out
What’s interesting is that these buyouts happen in that order as well.
The reality is that it’s rare to be the focus of a talent buyout unless you and your team have an incredibly unique set of skills. The tech buy is less difficult and is the savior of many tech startups who have cool stuff with no revenue or customers. In fact, it’s rare enough that we should ignore it as a possibility.
The reality for you and me is that buy out 3 and 4 is where we are likely end up. So the question we must ask ourselves are these:
* If we are aiming for a user buyout, how long can we survive without revenue?
* If we are aiming for a revenue buyout, why don’t we just keep what we’ve built?