showed up. They announced that they would tell the service provider what the phone would do, not the other way around. AT&T was the only one that agreed, thus earning the company the exclusive deal to offer the new technology. That’s the kind of shift that will impact the industry for many years and will extend far beyond a few years of stock boost for the shiny new product.
Novel, huh?
The Price You Pay for the Money You Make
I cannot dispute that manipulations work. Every one of them can indeed help influence behavior and every one of them can help a company become quite successful. But there are trade-offs. Not a single one of them breeds loyalty. Over the course of time, they cost more and more. The gains are only short-term. And they increase the level of stress for both the buyer and the seller. If you have exceptionally deep pockets or are looking to achieve only a short-term gain with no consideration for the long term, then these strategies and tactics are perfect.
Beyond the business world, manipulations are the norm in politics today as well. Just as manipulations can drive a sale but not create loyalty, so too can they help a candidate get elected, but they don’t create a foundation for leadership. Leadership requires people to stick with you through thick and thin. Leadership is the ability to rally people not for a single event, but for years. In business, leadership means that customers will continue to support your company even when you slip up. If manipulation is the only strategy, what happens the next time a purchase decision is required? What happens after the election is won?
There is a big difference between repeat business and loyalty. Repeat business is when people do business with you multiple times. Loyalty is when people are willing to turn down a better product or a better price to continue doing business with you. Loyal customers often don’t even bother to research the competition or entertain other options. Loyalty is not easily won. Repeat business, however, is. All it takes is more manipulations.
Manipulative techniques have become such a mainstay in American business today that it has become virtually impossible for some to kick the habit. Like any addiction, the drive is not to get sober, but to find the next fix faster and more frequently. And as good as the short-term highs may feel, they have a deleterious impact on the long-term health of an organization. Addicted to the short-term results, business today has largely become a series of quick fixes added on one after another after another. The short-term tactics have become so sophisticated that an entire economy has developed to service the manipulations, equipped with statistics and quasi-science. Direct marketing companies, for example, offer calculations about which words will get the best results on each piece of direct mail they send out.
Those that offer mail-in rebates know the incentive works and they know that the higher the rebate, the more effective it is. They also know the cost that goes along with those rebates. To make them profitable, manufacturers rely on the breakage and slippage numbers staying above a certain threshold. Just like our trusty drug addict, whose behavior is reinforced by how good the short-term high feels, the temptation to make the qualifications of the rebate more obscure or cumbersome so as to reduce the number of qualified applicants can be overwhelming for some.
Samsung, the electronics giant, mastered the art of the kind of fine print that makes rebates so profitable for companies. In the early 2000s, the company offered rebates up to $150 on a variety of electronic products, stipulating in the fine print that the rebate was limited to one per address—a requirement that would have sounded reasonable enough to anyone at the time. Yet in practice, it effectively disqualified all customers who lived in apartment buildings where more than one resident had applied for the same rebate. More