Monday, October 17, 2011

Blackberry Marketing and Cash Value


Remember S&H and other store stamps that had a value other than cash, like "mills?"

Today companies still substitute benefits or free accessories that have some specific proprietary value, but little or no cash value. As long as the two are distinct, there's no problem. But intentionally or otherwise confusing some dollar value other than the real one for cash value is a big marketing mistake.

Blackberry has responded to its latest high-profile service outages by offering a consolation to their subscribers: for their inconvenience, they get $100 in free apps like poker and "Bejeweled." But wait, there's more. RIM also throws in free technical maintenance for a month, which is a value of, well, let's say it's not immediately obvious on their web site. (And just how much do Blackberry owners expect to call technical support next month in the event of a problem, say, another outage?)

The lesson to learn here, as RIM flounders in their marketing efforts, is that marketing is not a standalone entity. It needs to be integrated with the business. When the purposes of the marketing and accounting or other departments collide, you often get a solution that does badly for both.

In this situation, if RIM offered a second option for a discount on next month's phone bill for example, the dollar value would certainly be lower than the one for free apps and support. What would the value of a third option for getting a check in the mail from RIM be? My guess is about $10. That's the real value.

Does RIM really want to address the legitimate concern and inconvenience of their subscribers resulting from significant outages, even down to the phone's daily alarms and reminders not working, with a consolation that has a real value of $10? Of course not. But there's a left-hand, right-hand conflict going on between the business execs and the ones carrying on the dialog with the customer (marketing) that is deeper than this one incident. As the iPhone 4S and steady developments by Android encroach even further on Blackberry's base, RIM is pouring gasoline on the fire.