Monday, March 23, 2009

Brand Loyalty - Don't be Scammed!

I've been thinking about the concept of brand loyalty lately, and mostly how it usually results in people getting screwed or taken advantage of, though often without them even realizing it. I used to consider myself as having brand loyalty to a number of companies, often without any particularly good reason aside from the fact that they tended to be what I was used to and the thought of switching to a different brand seemed rather tedious. Unfortunately for consumers, companies tend to take advantage of the fact that people like to stick with what they know, and often use the opportunity just to further gouge their customers instead of actually giving them something of value in exchange for their loyalty. When this happens, it is time to give your business to someone else, because really, loyalty has to be a two-way street or else it is just getting taken advantage of.

Case in point, tax software. There are a million other examples, but I am picking up on this one because I recently finished my taxes. We used to always purchase Quick Tax. It was a good program and I was happy with the interface, results, etc. But then each year they started jacking up the price, as opposed to say, offering me a discount for being a repeat customer. Even worse, they introduced multiple tiers of products, designed to meet different levels of complexity in terms of how involved your return was. Doesn't seem like a terrible idea on the surface, but they pretty much designed it so that the most basic (and cheapest) version was so crappy that pretty much everyone would want to upgrade to the mid-level (that is more expensive) version. Even that one strategically didn't have a few of the commonly required functions for all but the most basic of tax returns. In order to gain access to those functions you had to opt for the next level up (another excuse to charge you more money).

What really blew my mind was the fact that with the basic version they wouldn't even carry forward your information from the previous year. I mean really, how petty can they get here? When it comes down to it, there really isn't all that much information to carry over, just a few basic facts about yourself, family members, a couple of numbers from last years return, but honestly what is the point in using the same product year after year if they won't carry forward basic information like this. The point of course is that they want me to purchase the more expensive versions of their software. Well this is one customer whose loyalty they no longer possess.

Last year we switched to something called UFile. Having used both, I can honestly say that they are pretty equal in terms of interface. Both follow a sort of interview format, with prompting me to enter information about myself and my family. Both allow me to file electronically. Both allow me to download updates. UFile however, has only a one size fits all version, which has all of the same functions as the most expensive Quick Tax software, for less than the price of the least expensive (and worst) version of Quick Tax. It also allows me to file a greater number of returns. It also not only offers to carry forward my information from last year's UFile return, but it actually allows me to carry forward information from returns prepared with different software (including Quick Tax). Despite all these advantages, I was still initially hesitant to change programs. Inertia can be a difficult thing to overcome.

This is how brand loyalty tricks you. It takes an effort to shop around and compare prices for the best value, and companies take advantage of this. Instead of giving back something in return for customer loyalty, they use it as an opportunity to gouge you. Not cool. This isn't always the case of course. There are many good companies out there that provide good value to their customers, I am just saying that you need to make sure that you aren't giving your loyalty away for free, just to get screwed over in return. Make sure that the brands you are loyal to are earning that loyalty in some way, be it customer service, price, superior product, whatever. And just because they have earned it in the past shouldn't give them a free pass to take you for granted in the future. If a company ceases to deserve your support, by all means stop supporting them. If they earn it back, by all means go back. Someone I know who works for a phone company assures me that they reserve the best deals for people who are threatening to leave. So if enough people start voting with their feet, companies will either have to change for the better or go out of business. Sounds like a good idea to me.

Sunday, March 8, 2009

25 Random Things About Me

So, I know this is way behind the 8-ball and has already been done a thousand times by a thousand different people, but I really needed an excuse to make me put in another entry already, since it has been way too long. I normally hate this sort of thing, which is why I resisted up until now, but I decided to go ahead and just do it anyways. So if you are the sort of person who would rather gouge their own eyes out than read another one of these, I recommend you just close the window right now before you go any further. Otherwise, enjoy. I will try to be brief.

1. I am a Scorpio. I think that astrology is interesting, but bunk.

2. I know how to walk on stilts. I taught myself when I was about 12, when I randomly decided that this was something I wanted to do. I got my dad to help build me a pair. Once I mastered the first set, I got him to build me another higher pair, and then a higher one again. After that he refused to build me any more pairs, so that was that. It's like learning to ride a bicycle though and you never really forget how to do it.

3. I have a tattoo.

4. I have 3 piercings (1 on each ear and my belly button).

5. I got my appendix taken out when I was a kid.

6. I am a bad liar. Not enough practice, I guess.

7. I can do a trick where it looks like I am removing my finger. It is always a hit with children.

8. I love camping and the outdoors. My most ambitious hikes thus far were with the husband on the Juan de Fuca trail and hiking to a mountain called the Golden Hinde (tallest one on Vancouver Island). The husband and I want to hike to a place called Della Falls (tallest waterfall in Canada).

9. I prefer cross country skiing to downhill.

10. I used to watch figure skating when I was a child.

11. I have a TV, but no cable, so I only use it to watch DVDs. I prefer to wait for a show to come out on DVD before I watch it.

12. My current DVD obsession is House, M.D. I am part way through the second season now.

13. I am unashamed to admit to being a geek. I love all the Star Trek spin-offs, Battlestar Gallactica, Babylon V, you name it.

14. I enjoy making graphs in Excel. Sorry if that is beyond weird.

15. I am also obsessed with Zombie movies and Jane Austen period style movies.

16. I played the flute and the piccolo in a marching band.

17. My favourite dessert is creme brule. The husband bought one of those little torches so he can make it for me.

18. I have a major weakness for chips, pretzels and anything salty.

19. I think that prime numbers are pretty cool (hey, I admitted to being a geek).

20. I was really good at skipping as a child.

21. My Starbucks drink is a Tall Americano with cream.

22. I am afraid of spiders. Something about the 8 legs just gives me the creeps.

23. I enjoy knitting, though I have a short attention span, so most of my projects are pretty small. Some of them are pretty cool though if I say so myself.

24. Someday I aspire to keeping a houseplant alive for more than a few months.

25. I was the president of an Astronomy Club at one time.

So there you have it. If you feel like you want the 10 minutes of your life back that you spent reading this, don't say I didn't warn you at the beginning.