Category: Price5d70aa2269

Profiting on Others' Pain

5/17/2020

by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

You’ve heard the saying, “Misery loves company.” Here’s an even hotter take: Misery makes money. Oftentimes the bigger the problem, the bigger the payout for solving it, but is it right for companies to monetize consumer misfortune, particularly during a pandemic?

Even as industries from airlines to entertainment struggle to survive the COVID-economy, some firms are enjoying record levels of revenue. For instance, Peloton, maker of those expensive in-home ‘exer-cycles,’ has seen sales surge so much that it plans to reduce advertising spending by 50% over the next three months.

“Spinning” isn’t the only pastime the pandemic has accelerated. People are more often binge-watching movies, having dinner delivered, and meeting friends online, which have boosted the bottom-lines of companies like Netflix, DoorDash, and Zoom.

Of course, there also are firms that have benefited even more directly from people’s fear of infection: those manufacturing face masks, hand sanitizer, etc. Clorox and Lysol, in fact, are selling antibacterial wipes so fast, their production can’t keep pace with demand.

In a non-pandemic world, the notion of companies making money gives many people pause, so the illness-associated timing of the latest corporate windfall has likely caused even more to wonder: Is it right for firms to profit from people’s pain?

When you start to think about it, there are actually a number of businesses that appear to profit perpetually from consumers’ misfortunes, for example:

Auto collision centers
Divorce attorneys
Fire and flood restoration firms
Funeral homes
Pest control companies

These enterprises don’t exist unless individuals experience: crashed cars, ruptured relationships, domestic disasters, lost loved ones, and belligerent bugs. How do the owners of these organizations sleep at night, knowing that their gain comes from their own customers’ pain?

The third industry on the above list reminds me of a disastrous event our family experienced on a cold January morning several years ago. A pipe burst in our house, sending water streaming through several rooms. The remedy included, among other disruptions, gutting our kitchen and having workers walking around our home for several months. Fortunately, insurance covered the costs and the recovery company did a great job.

Did the restoration firm profit from our pain? I’m sure it did, but it also ‘healed our house’ and helped us recover from the catastrophe. When you think about it, all of the companies on the list above do the same sort of thing in different ways. They’re all in the ‘restoration business.’

If one defines pain as an unmet need, or when an actual state is different than a desired state, almost every organization is in the pain management business. Hospitals help people recover from physical and mental pain, grocery stores and restaurants overcome hunger pains, and educators try to alleviate the prospective pains of ignorance and unemployment.

So, it’s not just organizations that profit from other’s pain, individual consumers do too. When I buy a pair of shoes that work well, the benefits I enjoy exceed the price I paid, meaning I profited from the retailer’s pain—its need to sell shoes.

Provided that the pain management goes both ways, or there’s mutual benefit, profiting from others’ pain is a good thing,

Unfortunately, however, there can be cases in which rewards are one-sided, such as when a firm’s business model depends on its own customers’ failure, thus purposefully prolonging their pain.

One example involves predatory lenders. Such financiers intentionally choose customers who hold high credit risk and, therefore, are unlikely to meet their payment obligations. When the debtor defaults, the lender comes out ahead by foreclosing on the home, repossessing the car, etc. Any business model based on win-lose outcomes is unconscionable.

Another more controversial example involves casinos. I have no firsthand experience, but it seems self-evident that these companies don’t make money unless the vast majority of their patrons lose theirs.

A reasonable argument may be made that gamblers are really purchasing entertainment and an adrenalin rush, just like spectators at an exciting sporting event or theater performance. A telltale sign of the difference, though, is that ads for Broadway shows don’t carry a disclaimer, “Musical addiction? Dial 1-800-HAM-ILTON.”

Is it wrong for companies to profit from people during a pandemic or any other time? It’s fine if firms enable win-win outcomes in which consumers profit back by getting good value from the hand sanitizer, face masks, food, clothing, Netflix, or whatever else they need. Mutual profit is often a sign of “Mindful Marketing.”

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The Business of Forgiveness?

4/18/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

“To err is human, to forgive is divine.” Alexander Pope’s adage applies to every person who has overlooked another’s offense or asked for forgiveness of their own, yet organizations often seem immune to any such ‘mercy mandate.’ At a time when many people are showing others unusual grace, should companies also be forgiving others?

The COVID-19-induced economic slowdown has derailed demand in most industries, leaving some businesses on the brink of insolvency. The U.S. Federal Reserve has promised $2.3 trillion in programs aimed at undergirding small and medium businesses; still, organizations of all sizes face immediate pressures to meet payroll, remit rent, and settle obligations with suppliers.

Many firms find themselves beholden to creditors like never before. While simply dismissing others’ debt may sound nice, such kindness cuts against the very grain of capitalism: Companies can’t remain competitive and profitable by giving away their goods and services. It may sound callous, but isn’t it just good business to forgo forgiveness?

Among the many hats I wore while a partner in our family’s promotional products company, was that of debt collector. At times, I would pick up the phone and call customers who had invoices that were 60, 90, or more days overdue. It wasn’t a job I enjoyed, but if enough of that revenue remained outstanding, it would take a significant bite out of our small business’s bottom-line. Although I worked to keep the conversations amicable, I wasn’t calling to offer forgiveness.

Fast forward a couple of decades—As I watched the April 9, 2020 installment of CNBC’s Squawk on the Street, the show’s often insightful and easily excitable Jim Cramer became uncharacteristically subdued while considering the pandemic’s unprecedented economic impact. In order to battle through the shared struggle, he recommended that businesses offer each other financial “forbearance.”

How surreal to hear the former hedge fund manager of Mad Money fame, who aims to help ordinary people understand the stock market and invest profitably, offer business advice that appeared tantamount to fiscal heresy. Had the Mad Money host gone mad? Or, has a time come when companies should be extending financial forgiveness?

To answer these questions, it’s important to differentiate forgiveness from forbearance. These definitions of the two verb infinitives seem especially relevant:

Forgive: to cancel an indebtedness or liability of
Forbear: to be patient or self-controlled

So, my earlier conflation of the two terms was somewhat misleading. While any forgiveness naturally includes forbearance, forbearance does not necessarily involve forgiveness. For example, a landlord can choose to forgive a month’s overdue rent, i.e., never collect it; or, he/she can forbear, i.e., give the tenant more time to pay.

In the Squawk on the Street segment, Cramer did aptly apply forbearance, suggesting that firms should be patient with their debtors. At the same time, he didn't preclude forgiveness, i.e., if a company can afford to reduce or cancel a specific debt, even better.

Such recommendations prompt two more important questions: Who exactly should forbear or forgive and why? The following story may offer answers.

The owner of a small grocery store was many months overdue on a $1,000 invoice from a large produce supplier. Unable to pay, the store owner begged his creditor for more time: “Please be patient and I’ll pay the bill.” The produce company owner felt sorry for his customer, so he told him, “It’s okay; we’ll cancel this invoice. You don’t owe us anything.”

The same day, a regular customer, who was recently out of work, came into the grocery store and asked the owner. “I’ve been shopping here for years and just lost my job. Could I get $10 worth of food to feed my family tonight? I can pay you tomorrow when my unemployment check comes.”

The store owner berated the customer: “Get out of here! I’m not running a charity!” When the produce supplier heard about the incident he was enraged. He phoned the grocery store owner: “I cancelled all of your debt. Why couldn’t you show some grace to one of your customers?”

Some may recognize this story, which is a modern paraphrase of the biblical parable from Matthew 18:21-35. Whether two thousand years ago or now, the moral is the same: We all should show grace to others because others show grace to us.

Over the past month, that point has been ‘brought home’ for me literally, as the pandemic has moved virtually all of higher education online. My house is somewhat unique in that in one upstairs room there’s me, sometimes asking my students for patience as I adapt to teaching college courses online. Meanwhile, down the hallway our son is taking classes from a different college, and his instructors are dealing with similar challenges.

As a college professor and the parent of a college student, I’m both a supplier and a consumer of higher education services. If I’m going to ask my ‘customers’ for forbearance, the least I can do is extend similar forbearance to our family’s ‘educational service provider.’

Life’s winding paths often lead to unexpected outcomes. Earlier I mentioned the collection phone calls I made decades ago for our family business. I can no longer remember any of the overdue accounts I called, except one: A company I had never seen that was located about 80 miles to the south that sold/rented lawn and excavating equipment.

I recall this account because it took what seemed like forever until I finally got to talk with the owner and kindly implore him to pay several long-past-due invoices. Significant interest charges had accrued, but I told him, “Just pay the original amounts, we’ll forgive the interest,” and he did.

I also remember this account because after we sold our family business and I entered higher education, our family happened to move within a few miles of where that business is still located. Now, I’m occasionally one of its customers.

As flawed people who work for imperfect organizations, we all need to extend and receive forbearance at times, especially during a crisis. That doesn’t mean enabling those who take advantage of kindness, nor does it preclude going a step above and beyond to forgive an obligation entirely. A healthy balance of forbearance and forgiveness is good for business and makes for “Mindful Marketing.”

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Sick and Healthy "Viral Marketing"

3/21/2020

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Difficult times bring out the best and worst in individuals and organizations. You’ve likely seen some of each during recent days. Although it’s frightful to find our world battling a pandemic, it’s a healthy occasion to diagnose what is and isn’t Mindful Marketing.

One of the ‘sickest’ cases has involved two entrepreneurial brothers from Tennessee. When Matt and Noah Colvin heard of the first U.S. death from coronavirus, they quickly began buying all the hand sanitizer and antibacterial wipes they could find—around Chattanooga, across Tennessee, and throughout Kentucky.

After emptying stores of the valuable virus-fighting products, they piled palettes of their pillage in a garage and began selling the items online for a premium: between $8 and $70 each for the first 300 bottles of hand sanitizer M. Colvin listed on Amazon.

The gig lasted for about a day before “Amazon pulled his items and thousands of other listings for sanitizer, wipes and face masks” and “eBay soon followed with even stricter measures.” The retailers’ swift actions and accusation of price gouging left Colvin sitting on over 17,000 bottles of sanitizer he couldn’t sell, even as people around the world were desperate to get their hands on the products and the product on their hands.

Was Colvin “profiteering from a pandemic,” or were Amazon and eBay unnecessarily constraining capitalism? Colvin claimed he provided a “public service” by exploiting market inefficiencies and redistributing products to other parts of the nation where they were needed more.

Could he be right? Perhaps he was improving the supply chain. Also, how different were his actions than someone making a significant purchase of a publicly-traded stock with the hope that their big investment will help push the security’s price upward?

First, it’s safe to assume that national and regional retailers like CVS and Walmart, with decades of logistics experience and cutting-edge supply chain processes, didn't need Colvin to help get products to places in the country where they’re in short supply. Furthermore, any person with an internet connection could conceivable buy hand sanitizer online and have it shipped directly to them, no matter where they live.

Second, there’s a big difference between playing the stock market and ‘playing the hand sanitizer market,’ especially in the face of a pandemic. People don’t need to own Apple, Tesla, or any other specific stock; however, Individuals do have to have products that can help them avoid contracting a serious illness that could kill them or someone they might infect.

The Colvin brothers’ actions were the epitome of “Single-Minded Marketing,” which quickly turned “Mindless” once Amazon pulled the plug on their online sales. Such blatantly selfish actions are pretty easy to diagnose, but what about the wide continuum of tactics other organizations have employed amid the outbreak?

Some emails that have hit my inbox within the last few days seem tone-deaf to health advisories that have asked us to forgo nonessential services, to practice social distancing, and to be extra careful with hand hygiene. Although less extreme than those of the Colvin brothers, these tactics also seem “Mindless”:

Groupon: specials on Swedish massage, axe throwing, ice skating, and even “group bowling”
Local Flavor: offers on experiences such as billiards, salt room, and climbing walls
Bed Bath & Beyond: promotional copy reading, “Put a spring in your hosting game with fresh and EXCLUSIVE picks”; “Dazzle guests without breaking a sweat (or the bank)”
Old Navy: ad image showing two women walking with arms wrapped tightly over the other’s shoulders while smiling at each other, with faces about eight inches apart

Meanwhile, certain other companies have shown healthier situational awareness by quickly adjusting their marketing communication from “Mindless” to “Mindful”:

Coors: pulled its “Official beer of ‘working’ remotely” spots that lampooned the nation's annual loss of productivity during March Madness
Hershey: removed ads that featured people shaking hands and hugging while sharing candy.
KFC: pulled its ‘finger lickin’ ads in the UK

There’s also been an abundance of vibrantly “Mindful” correspondence from companies aimed at calming our anxieties by describing what they’re doing to keep employees and us safe:

Enterprise: “Aligned with guidance from health authorities, we are implementing additional measures to clean and disinfect our locations and vehicles.”
Chase: “We've ensured that our branches, including ATM screens and keypads, are cleaned daily with EPA-approved disinfectants and we have hand sanitizer available in our branches.”
Best Buy: “The first [goal] is to protect our customers, employees and their families. The second is to do the best we can to serve the millions of Americans who are looking to us for increasingly vital technology tools to stay connected, as well as household necessities.”
Office Depot: “We’ve reinforced existing Office Depot policy encouraging employees who exhibit flu-like symptoms to stay home and consult with a medical professional.”

Finally, a few firms have ascended to the highest level of corporate health and community consciousness by going above and beyond what might be expected even for “Mindful Marketing,” for instance:

U-Haul is offering 30 days of free self-storage to students who need to move due to coronavirus.
Highmark Blue Shield has waived all copays, deductibles, and coinsurance for 90 days for those with telemedicine access “because the safest place for you if you’re sick is at home.”
Wiley is providing instructors and students who do not have an online learning solution free access to its courseware for the remaining spring 2020 term.
Martin’s Famous Pastry Shoppe has increased production of its popular potato rolls and other bread products in order to keep stores stocked during periods of intense demand.

To unpack the last example, there are few things as anxiety-inducing as walking into a grocery store during a crisis, only to find shelves empty of bread, which may be the most staple of foods for Americans. However, people living in areas where Martin’s distributes can still find its products on their store’s shelves every day, even on Sunday. Scott Heintzelman, vice president of finance and administration for Martin’s explains:

“Almost no commercial bakeries deliver [Sunday]. However, our awesome bakery and transport teams have been working around the clock to make and move truckloads of extra product to our warehouses. The result is on Sunday morning, many of our amazing distributors and sales teams are out making deliveries to help feed people. I am truly humbled by our team members.”

As a writer, I should disclose that Martin’s is a faithful supporter of Messiah College, where I teach. Also, Heintzelman, who I call “Scott,” was my college roommate, the best man in my wedding, and still a best friend.

During this moment of nearly unprecedented uncertainty, many people probably feel like Martin’s and other firms that have gone above and beyond to meet important, life-sustaining needs are their best friends. It’s times like these when we really need friends, and when we can be especially grateful for organizations that practice “Mindful Marketing.”

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Marketing Giving

11/29/2019

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Black Friday, Small Business Saturday, Cyber Monday . . . the biggest shopping season of the year can excite even the most apathetic shopper. Some, however, would have us believe that we should do something different with our money, instead of buying things for ourselves or others. But, isn’t shopping a key to holiday happiness?

Over the last few years, you’ve probably heard of an initiative that seems contrary to the capitalism often associated with holiday shopping. In contrast to the plethora of promotion persuading us to buy more, “GivingTuesday” boldly encourages people to give to others. The day targeted for philanthropy is typically the Tuesday after Thanksgiving; this year it’s December 3.

GivingTuesday’s website describes the initiative, which began in 2012, as “a global generosity movement” that “inspires hundreds of millions of people to give, collaborate, and celebrate generosity,” “unleashing the power of people and organizations to transform their communities and the world.”

Those are admirable and far-reaching claims, but is it really possible to market giving?

For many people, marketing is inextricably linked to buying and selling products, so much so that ‘marketing giving’ seems like an oxymoron, along the lines of jumbo shrimp and civil war. If people give their money, they’re not spending it, which may seem antithetical to marketing.

However, marketing concepts can be applied to virtually any endeavor. Besides marketing physical goods, like food, and intangible services, like haircuts, organizations and individuals can market ideas like “Don’t drink and drive” and mindsets like “Do well in school.”

So, there’s no reason that giving can’t be marketed, but effective marketing must include more than just a simple message like “give!” Most of us have seen similar appeals in social media and elsewhere. GivingTuesday, however, has created what many would consider to be a full-fledged marketing plan, incorporating each of the iconic Four Ps:

- Product: Unlike receiving something tangible in return when one shops, GivingTuesday promises intrinsic rewards like satisfaction from providing greater dignity and opportunity for others and helping to build “a more just and generous world.”

- Price: The cost of GivingTuesday is up to the organization and individual. While some might give millions, the average online gift is $105.55, but money isn’t the only thing that can be given. Participants also can donate goods or volunteer their time to serve others.

- Place: As the previous P implied, GivingTuesday can occur virtually anywhere in the physical world or in the virtual realm in a variety of ways. Meanwhile, having a specific date, the first Tuesday after Thanksgiving, helps build consistency, as well as create some sense of urgency, which is often needed in order to encourage consumers to act.

- Promotion: “GivingTuesday” is a memorable moniker that likely builds brand recognition and supports understanding of the initiative through paid and earned media. GivingTuesday’s website also offers a variety of helpful resources for organizations and individuals inclined to participate, e.g., “Ideas and Case Studies” and a “GivingTuesday Toolkit.”

Those are strong inputs, but what matters ultimately for marketing are outcomes, and at least one person believes GivingTuesday isn’t effective for many organizations.

In an article in the Fundraising Authority, Joe Garecht praises GivingTuesday as “a noble effort,” yet he discourages nonprofits from participating in the initiative, particularly small and mid-sized ones. His rationale includes reasons such as an overabundance of organizations asking for gifts at the same time and the encouragement of one-time “spot giving” versus building long-term donor relationships.

Garecht raises some valid concerns, particularly related to potential return on investment; however, if his two arguments mentioned above were applied to organizations marketing traditional products, companies wouldn’t participate in the holiday shopping season because: 1) their promotions would be lost among those of other companies advertising at the same time, and 2) first-time transactions wouldn’t lead to future purchases. Clearly that rationale doesn’t apply to most for-profit firms during the holidays, and it probably isn’t relevant for many nonprofits either.

Instead, GivingTuesday appears to be an initiative that keeps gaining momentum. Among nonprofit participants who seem to find the program productive are World Vision, the American Red Cross, and St. Jude. All together, GivingTuesday saw 3.6 million gifts given in 2018, including $400 million online. In the U.S. alone, GivingTuesday has raised over $1 billion since 2012.

In his 1789 sermon titled “The Use of Money,” English cleric and theologian John Wesley famously urged listeners to “earn all you can, save all you can, and give all you can.” In a 21st century sense, Wesley was ‘marketing’ giving. Marketers today have many more tools at their disposal, yet any tactics that encourage organizations or individuals to give of their money or time to help others in need can be considered “Mindful Marketing.”

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Pay to Pray

11/16/2019

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

“The best things in life are free,” for instance, an evening with family, a walk on a sunny morning, a conversation with a friend. For many people, going to God is another 'free'dom they cherish. Why, then, does one religion appear to be putting a paywall between its people and God?

The Catholic Church recently surprised many of its parishioners and others by introducing an eRosary, “a wearable device connected to a mobile app that's activated by making the sign of the cross.” While paying homage to traditional rosary bracelets, the new product’s black agate and hematite beads, paired with a “carefully finished” gunmetal-color cross, make the modern version appear very ‘apple-esque.’

Many have heard of people praying with rosary beads, but if you’re not familiar with Catholicism, here’s a quick primer. The Holy Rosary, or Dominican Rosary, is a very important prayer for Catholics that is arranged in sets of prayers called decades. Holding a rosary bracelet or chain in one’s hand and feeling each individual bead helps followers recite the prayer’s Hail Marys and other specific petitions in the proper sequence.

The Rosary is a central part of many Catholics’ spiritual lives, as praying it guards against trials and temptations and serves as a buffer against all types of evil. Pope John Paul II declared that the Rosary was “among the finest and most praiseworthy traditions of Christian contemplation.”

The Vatican’s eRosary offers much more functionality than just feeling beads with one’s fingers. Working with an app, the digitally-designed bracelet lets users choose the specific rosary they would like to recite (e.g., standard or thematic), then charts the devotee’s prayer progress and tracks completion with “the guide of special audiovisual contents.”

The Vatican suggests the device serves as “a meeting point between technology and spirituality” that “unites daily life and prayer,” helps one “pray deeply,” and unites people around the challenges that confront humanity and the mission of the Church.

The eRosary also touches the physical realm, acting as a “personal health assistant” by recording fitness data and providing wellness information. In doing so, the device encourages people to live healthier lives.

However, wearable technology can’t just do things; it also needs to look good on those wearing it. Fortunately, the eRosary marries form and function. The Pope’s Worldwide Prayer Network suggests that the device lies where “simplicity meets elegance” thanks to its stylish black and silver colors and its “simple lines and curves.”

So, why is the Vatican marketing a ‘faith-based fashionable Fitbit’? Engadget suggests the Catholic Church is “hoping to attract tech-savvy youngsters.” It’s true that Gen Zs increasing expect digitally connected experiences. Also, any organization that wants to stay in existence must remain relevant to the next generation of ‘consumers.’

Still, we’re talking about the Church and faith. Doesn’t technology distract from meaningful spiritual experiences? Or, perhaps even more important, is it right for the Catholic Church, which has about 1.28 billion adherents, many in countries with low per capita income, to sell a product that costs 99€ (about $110) on Amazon?

First, it’s helpful to remember that technology influencing faith isn’t just a recent phenomenon; it’s interface dates back as least many hundreds of years. In 1452, Johannes Gutenberg printed 180 copies of the now famous Gutenberg Bible. In many ways, the use of moveable type technology to mass print the Bible and other religious books democratized Christianity and formed the foundation for a revolution in the Church.

Over the years, other new technologies also have impacted people’s spiritual lives in, often in positive ways. For instance, radio and television have allowed people to share religious information with others thousands of miles away. Advances in construction have enabled the building of larger and more functional places of worship. And, automobiles are what many people use to travel to those worship centers.

However, when one arrives at a church, synagogue, or mosque, there’s usually not a fee at the door. The notion is that religion should be free to all. ‘Growing closer to God shouldn’t be based on one’s ability to pay.’

Fortunately, there’s nothing to stop even the poorest person from offering prayers of petition and gratitude to the Divine. And, if people are mobile, they might walk or share a ride with other believers to a place of worship where they can venerate God and learn together for free.

Some religions also make copies of their key texts available to others for free. For instance, Wycliffe Bible Translators, a nonprofit mission organization, has translated the Bible into hundreds of different languages since its founding in 1942. Likewise, the Gideons International gives away thousands of Bibles a year in most of the world’s countries.

Then, how do eRosaries, iPhones with Bible apps, and other faith-related merchandise fit with the notion that religion should be free? All of the items that cost money to aid reverence are optional. They may be helpful to those who can afford them, but they’re not essential for a relationship with God.

A useful metaphor might be a social medium like LinkedIn. Some people who have needs for more advanced features pay for LinkedIn Premium. In contrast, for many years I’ve used the free version of the platform, which meets all of my professional networking needs and more. Just as I’m not precluded from enjoying LinkedIn because I don’t pay, people who don’t buy eRosaries or similar religious products are not prevented from relationships with God.

It is possible to live without digital devices. Also, sometimes when we have them, we let them get in the way of fruitful living. Used properly, however, it’s not hard to see how technology can benefit religious practice, much as it enhances other areas of life. It’s great to be able to share prayer requests via email, send text messages of encouragement to others, study the Bible on an iPad, and listen to podcasts of sermons online.

Because I’m not Catholic, I’ve never experienced confirmation, gone to confession, or prayed the Rosary. It appears, though, that an eRosary can help those participating in one of Catholicism’s central religious practices. For people of faith, digital devices that enrich their spiritual lives and bring them into closer relationship with God and others, seem to be “Mindful Marketing.”

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Is it Too Risky for Kids to Rideshare Alone?

7/12/2019

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Among a parent’s worst nightmares is this: Your child climbs into a car alone with a stranger. Just the thought of that scenario strikes fear into the heart of any mother or father. So, why would a company create a business model based on that situation?

A few months ago, ride-sharing icons Uber and Lyft grabbed headlines and goodwill by saying that they do not allow those under age 18 to use their services. Like others who heard the news, I applauded it: “That’s great—two for-profit firms forgoing income in order to protect young people.”

At the same time, the news made me wonder if there are other ride-sharing companies that don’t hold the same convictions and, instead, are willing to put kids into cars with whomever might be driving them. That’s when I came across a company that doesn’t just transport minors occasionally, it specializes in chauffeuring them.

In 2014, three southern California moms who were struggling “to get their busy kids to and from school and all their activities,” founded HopSkipDrive, a transportation service specifically designed for those age six and up. Just five years later, the firm has a staff of 50+ people, a presence in large metropolitan markets like Los Angeles and Washington D.C., and contracts with over 150 school districts.

How did a small, unconventional startup not only grow so quickly but even more importantly, persuade so many parents and others to trust the company with their most “precious cargo”? HopSkipDrive has achieved this rapid success through a combination of clear mission-focus and strict attention to detail.

Yes, busy parents who need to get their children to afterschool practices, lessons, etc., want to be sure that their kids arrive on-time, but their main concern, as mentioned above, is safety. If someone else is driving, who is the person who will be alone with their child in a car? Of course, the individual should be a skilled driver, but more importantly, can he/she be trusted?

Unfortunately, even with ridesharing companies that vet their drivers, you can’t always be sure ‘who you’re getting.’ Many of us have heard of rare but horrific incidents in which unstable drivers have harassed, raped, and even killed their passengers.

Nothing bad has happened to me while ridesharing, but my own recent experience caused me to question driver-screening. Our family had been staying at a resort for a few days and needed to get to a certain rental car center in order to continue our vacation. Using the Uber app, I requested a ride and watched on my phone for several minutes as the driver made his way toward the resort. Then, when he was only a minute away, he dropped the ride!

I can’t be sure what happened, but here’s my guess: A minute from where I was waiting, the resort had a gate where those entering the grounds via private vehicle needed to stop and show identification, i.e., a driver’s license. It may not be the reason he bailed at the last moment, but it’s sobering to think that the person who was going to give me a ride either didn’t have a valid driver’s license or wasn’t responsible enough to bring it with him.

It’s one thing to imagine a questionable driver chauffeuring an adult, it’s another thing to think of a young child confined in that vehicle. How could any company eliminate the risk inherent in such a situation?

When I first heard of HopSkipDrive, I was skeptical, not about demand for the service, but about the firm’s ability to ensure children’s safety in such an offering. As a working dad who helped drive his busy kids for years to/from school and practices and who commiserated with parents in similar predicaments, I knew there was a need. I wasn’t sure, though, how a company might manage the business model in a way that would give parents the confidence to say, “I’ll let my daughter or son ride with you.”

In light of such significant reservations, the main way HopSkipDrive maintains the trust of thousands of parents and schools each day is by painstakingly picking its drivers. In fact, the company uses an exhaustive 15-point certification process that requires the following of each applicant:

Worked with children and has at least 5 years of caregiving experience
No criminal record
Fingerprinted
No sex offender record
Valid driver’s license
Good driving record
Age 23 or older
Owns or leases a vehicle not more than 10 years old seating 4-7 passengers
Passes a 19-point vehicle inspection by a certified mechanic
In-person meeting
Completes in-person driver orientation
Has personal auto insurance coverage
Adopts the HopSkipRules
Adopts our zero tolerance policy for smoking, drugs, and alcohol while driving
Adopts the zero tolerance policy for illegal mobile device usage while a rider is in the car

Because of the meticulous selection process and the exceptionally kind and positive rapport those hired are expected to have with their passengers, HopSkipDrive doesn’t just call its personnel “drivers” but “CareDrivers.”

Special care and concern for safety begins as soon as CareDrivers arrive for a pickup. They wear bright orange HopSkipDrive t-shirts and verify their identity by confirming their passenger’s code word and birthday. Customers also can review CareDrivers’ profiles before pickup in order to know “who they are, what they look like, and the kind of car they drive.”

Throughout the ride, the company continues to leverage technology in order to ensure security. Dedicated HopSkipDrive staff members monitor each ride remotely through its duration, and parents can do the same. They also can receive alerts when their child has been picked up and dropped off.

As good as all of these systems are for onboarding employees and overseeing operations, they probably wouldn’t be effective if the company didn’t do something else very well: Embrace a compelling mission.

HopSkipDrive doesn’t just see itself as a provider of transportation service, i.e., getting kids from point A to point B, or even as an alleviator of parental stress, which it certainly does. Instead, this front-and-center statement on the company’s homepage communicates its mission: “Success starts by showing up. We help get them there.”

HopSkipDrive takes kids to school, piano lessons, basketball practice, and countless other developmental activities that are vital for children’s intellectual, social, and emotional growth. Those formative in-person experiences help them thrive now and contribute to their success in life for years to come. However, children can’t enjoy those activities unless someone ‘gets them there.’

In an interview with Yahoo Finance, HopSkipDrive’s CEO Joanna McFarland affirms that mission, saying “Oftentimes mobility is a huge barrier simply to access to education, and that’s something we’re helping to solve.”

It’s also confirming that employees appear to embrace the same purpose, such as one CareDriver who says “I feel really empowered being part of the greater good, getting kids safely where they need to go.”

As you might expect from the exacting service standards described above, “the greater good” does come at a higher cost. McFarland acknowledges that HopSkipDrive is a “premium service” that has “much different economics” than those of Uber and Lyft. Rides reportedly start at about $20.

However, the rates are comparable to what one would pay a caregiver. McFarland suggests the same in saying, “We think about [HopSkipDrive] much more as a substitute to a babysitter that drives than a comparison to an Uber and Lyft.”

The bottom-line is whether a substantial number of consumers (families and schools) find value in HopSkipDrive’s services. Apparently they do, as evidenced by the facts that the company is in seven markets and growing rapidly, has served over 6,000 schools, and has transported more than 650,000 children.

The most important validation, however, comes directly from those children—the actual riders—such as one young passenger who says, “They know my passcode, they talk to me, they make me feel very welcome. I’m never like, nervous to get in. In fact, I usually look forward to it because it’s a lot of fun.” Her experience is the best evidence that HopSkipDrive’s ridesharing for kids is “Mindful Marketing.”

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Pizza Protection

6/29/2019

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Unfortunately, there are accidents in life. Cars collide. Homes flood. People break bones. Insurance lessens the impact of such events, but what about damage to pizza? Well, Domino’s now offers protection for even that unexpected occurrence.

The nation’s pizza deliver leader is very good at getting its products from its stores to our doors, but it seems less confident about our ability to do the same. For that reason, the company recently introduced “carryout insurance.”

Domino’s now promises: “If damage occurs to your carryout order after you leave the store, just bring it back and we’ll remake it for free.” The firm lists a few reasonable provisos: The order must be uneaten, with nothing missing, in its original packaging, and accompanied by a receipt. The firm also offers examples of accidents that qualify for a claim like slipping and falling, "my kid sat on it," and "a stranger sneezed on it." In other words, it seems like the company will cover just about any claim consumers make.

How much does the pizza insurance cost? According to Domino’s it’s “free for all customers.” Some may be thinking, “But, there are no free [pizza] lunches,”—customers must be paying for the insurance indirectly. That may be true; however, Domino’s doesn’t appear to have increased its prices. The company needs to be careful that the costs of its pies stay in-line with those of Papa John’s and Pizza Hut in the highly competitive pizza market.

It’s also likely that pizza insurance claims haven’t taken a significant bite out of the firm’s bottom-line, which raises a key question, “Do people really need pizza insurance?”

Let’s say that someone spends $30 on a pizza pickup order, then drops it while taking it out of their car. The accident may ruin their day, but it probably wouldn’t pose any significant financial hardship. People who can afford to spend $30 on takeout food generally can afford to lose $30 worth of takeout food.

Contrast that loss to a serious car accident, a home fire, or the death of a family’s primary breadwinner. Those events could prove financially devastating, if not insured.

Such scenarios remind me of advice my dad once gave me: Insure the big things that could break you; don’t bother to insure littler things like electronics and lawn mowers. Even though they may be somewhat costly to replace, it’s worth the risk because replacement wouldn’t be financial catastrophic. I also liked the line my Dad said to salespeople who tried to pressure him to insure small items: “All your talk of insurance is making me wonder about the quality of this product and whether I should be buying it.”

My father’s insurance advice is similar to that of Todd Erkis, a professor of finance and risk management at Saint Joseph’s University, who says that “Insurance is key to protecting yourself against financial ruin.” Consistent with that view, Erkis suggests that new college graduates should buy just four types of insurance in order to hedge against possible financial hardship: health, long-term disability, renter’s, and car insurance.

Writing for Mint Life, Nicholas Pell adds just two other types of insurance to buy: home owner’s, which is analogous to renter’s, and life insurance. New college graduates often don’t have dependents and, therefore, don’t really need life insurance, but those who do should use insurance to protect their survivors from poverty.

All this to say, people don’t need pizza insurance, even if it’s “free.” So, what is Domino’s doing? In the very crowded market for restaurant pizza, Domino’s is probably trying to gain a little bit of perceptual separation from its closest competitors. Papa John’s and Pizza Hut don’t offer carryout insurance, which makes Domino’s distinct.

However, while Domino’s may have created a difference, the insurance doesn't deliver any real competitive advantage. Again, people don’t need the insurance, so it probably won’t sway many purchase decisions. Furthermore, who ever thinks they might drop their pizzas? In sum, the insurance just doesn’t offer any measurable improvement to Domino ’s value proposition.

Still, Domino’s has savvy marketers. The company wouldn’t be so successful if it didn’t. The firm’s marketing team probably intends carryout insurance as more of a promotional strategy than a product enhancement. In other words, it doesn’t matter if the insurance causes people to buy more pizzas, as long as publicity and word-of-mouth about the unusual offering helps keep Domino’s top-of-mind. That added exposure, in turn, should lead to more pizza purchases.

But would the firm really go to such lengths just for promotion? It's done so before.

Prior to carryout insurance, the company’s “Paving for Pizza” campaign represented a similar strategy. Domino’s promised to patch potholes around the country so the road hazards wouldn’t wreck pizza deliveries. Of course, a company as far-flung as Domino’s could never repair enough roads to actually make a significant delivery difference in most of its locations. However, the notion of a pizza company patching roads was so novel it captured press attention, as well as created some community goodwill. In short, the program seemed to be a very effective, albeit unconventional, means of pizza promotion.

Will carryout insurance, work as well for Domino’s? I doubt it. Despite the fact that I’m writing about it now and you’re reading about it, I don’t believe the company’s newest ploy will capture the interest or hearts of people like the paving program did.

There’s nothing wrong with Domino’s promising extra protection for pizzas; in fact, it’s a nice extra benefit, if anyone ever needs it. However, that lack of real consumer value, teamed with minimal promotional impact, places carryout insurance in the box of “Simple-Minded Marketing.”

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Dynamic Pricing or Discrimination?

6/14/2019

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

Eric, a friend of mine who happens to be a CPA, realized he was running low on string for his grass trimmer, so he went shopping where he’d purchased the product before—Amazon. Finding what seemed like a good price ($18.94) for the same 3-pack of spools he bought a few years earlier, he placed the item in his cart. Then he discovered something that might make all of us question the prices we pay for products.

Eric decided to check the price for the same Amazon item, using a different web browser—one he had never used before to order from Amazon. Entering the website, he navigated anonymously to the item page, where his suspicion was confirmed: The price he saw was just $16.89, i.e., $2.05 lower than the price for the same item he had placed in his shopping cart minutes before.

Although most of us haven’t been so clever as to catch an ecommerce giant in apparent pricing hypocrisy, many of us probably have wondered whether Amazon and other online retailers were somehow taking advantage of us through increasingly-sophisticated pricing strategies. Responses to Eric’s Facebook post about the incident confirmed such concerns:

“I wonder if the price is also because you're a logged in Prime user in one and they compensate for some of the free shipping.”

“I’ve worked with some sellers on Amazon. They are a beast to deal with and it can really wreck a small business. And there is nothing the business owner can really do to combat their practices. They are the 8 million pound gorilla in the room.”

“I read [your post] out loud to my daughters, I thought it was so significant.”

“The exact same thing happened to me just recently. I was going to protest the increase in price over a year's time. What can we do?”

Frustration over similar experiences may lead to accusations of “price discrimination,” i.e., when a seller changes the price of the same product for different consumers. Generally speaking, it’s not fair to charge people different prices for the same item, but there are some seemingly legitimate exceptions, for example:

Quantity discounts: Buying a 36-pack of bottled water should be cheaper per bottle than buying a single bottle of the same water.

Good credit ratings: Individuals with better credit scores deserve lower interest rates on loans compared to those with weaker credit ratings.

New customers: The risk of trying a new business or products may warrant giving a discount to first-time buyers.

In reality, none of the preceding truly represents price discrimination because people can, if they choose, put themselves in the more favorable pricing position. For instance, they could: buy more bottles of water and store them, follow sound financial practices to improve their credit scores, or assume the risk of purchasing from a new company.

If Eric’s experience falls into any of these three categories, it might represent the last one. Perhaps because of his lack of history with the second web browser, Amazon pegged his subsequent shopping visit as that of a new customer and wanted to offer him an extra incentive for making a first-time purchase.

That explanation may be right, but it has some flaws, namely that companies tend to clearly communicate when they’re offering discounts for new customers; otherwise, loyal customers may locate the discrepancy, as Eric did, question the companies’ motives, and even become resentful: “I’ve given them my business for all these years; if anyone deserves a discount, I do.”

Chances are, Amazon wasn’t practicing any form of price discrimination. It’s more likely that Eric’s experience was a result of the strategy that many online retailers increasingly apply: dynamic pricing.

Dynamic pricing involves changing prices continually, based on prevailing market conditions, which includes factors such as consumer demand, purchase intent, and competitors’ prices, as well as company goals for customer acquisition, retention, and brand-switching.

If you’re thinking that dynamic pricing is a new phenomenon, you’re partially right. Sellers have lowered and raised product prices on the spot for millennia, based on factors as simple as weather conditions and buyers’ apparent interest.

Over the past 30 years or so, airlines probably have been the most common users of dynamic pricing, as they’ve perpetually adjusted prices to keep flights at or near capacity. To a lesser extent, those selling hotel rooms and tickets to popular entertainment events have done the same. Frequent historic fluctuations in gasoline prices also suggest dynamic pricing.

However, recent advances in digital technologies have really enabled dynamic pricing to thrive. For instance, from 2008 to 2010, the average time between regular price changes was 6.7 months. In the time period from 2014 to 2017, that average fell to 3.7 months.

Today, to implement far-reaching price change is no more difficult than a few computer key strokes, and it’s as easy as allowing a third-party software program, like an algorithmic repricer, determine when to make price adjustments and how big they should be.

Although Amazon, which reportedly makes millions of prices changes a day, is probably the greatest single user of dynamic pricing, it is far from the only retailer employing the strategy. Walmart, the biggest retailer in the world, has taken a remarkable step away from its long-standing ‘everyday low pricing’ strategy and embraced repricing software for its online sales.

Most other e-tailers are following suit. In fact, some predict that within 5-10 years, dynamic pricing will become so fine-tuned that “everything you buy will be based on personalized offers.”

So far this discussion has been about what has happened and will continue to happen with dynamic pricing. However, at the core of Eric’s experience is an ethical question: Should Amazon or anyone be pricing products this way? Or, as Nick Saunders, director of GlobalData Retail has said, just because something is technologically feasible “doesn’t mean it’s socially desirable.”

On one hand, it does seem like dynamic pricing puts purchasers at an added disadvantage. Companies already have a natural information-advantage over consumers since “knowledge is power” and every business knows more about its products and its industry than does the average consumer.

What’s more, sellers have always known more than buyers about when prices will change, so with dynamic pricing dramatically increasing the frequency of those deviations, consumers experience even more uncertainty while sellers gain greater leverage.

But, the digital age also has been a significant boon to consumers. For much of human history, sellers only had to compete on price with competitors physically close to them. Sears, Roebuck & Co. and other catalog retailers changed that situation somewhat. The Internet and ecommerce have turned traditional retail on its head.

Now people sitting in their living rooms use shopping bots to search products from retailers around the world, while shoppers in brick-and-mortar stores pull out their smartphones and ask for price matches in checkout aisles.

In addition, dynamic pricing itself has produced some benefits for consumers. As described above, the strategy does favor individual sellers in specific transactions; however, the fact that all sellers can easily alter their prices means they must compete more against each other on price.

In short, buyers and sellers both enjoy advantages in the digital age with dynamic pricing—a phenomenon that Eric recognizes, as he astutely reflects:

“This [experience] strikes me as another example of the free market and competition driving markets and pricing. As much as I might not like it, in my opinion Amazon as the seller has every right to offer its goods to me, their customer, at whatever price point they desire. And I, in turn, have every right to buy it or not!”

“Furthermore, there are times when I might willingly pay a higher price from Amazon because of other factors such as shipping speed or knowing that Amazon customer service is incredible for dealing with product issues or returns. From Amazon’s perspective, if they do the hard work of building loyalty with me, their customer, then it’s their privilege to offer me goods at a price point which might, at times, be higher than necessary.”

“The risk they take is that if I conclude that Amazon is no longer competitively priced, they might experience a decline in my loyalty. Which undoubtedly is another data point Amazon tracks about me! If they sense my purchasing loyalty is deteriorating, I suspect their pricing algorithms will work to win back my loyalty!”

Although I haven’t asked Eric directly, I think we both agree that frequent price changes don’t necessarily mean price discrimination. In fact, dynamic pricing can be an example of “Mindful Marketing.”

Eric Wenger is managing partner at RKL, LLP in Lancaster, PA.

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Paying with Your Personal Brand

3/23/2019

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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

It was shocking to hear the news: TV’s beloved “Aunt Becky” charged with fraud in “the biggest college admissions scam ever prosecuted in the U.S.” Most people understand that a business model based on bribery is wrong, but there’s another angle to this story that's relevant to each of us, as marketers of ourselves.

To summarize the scandal, Lori Loughlin, who played Rebecca Donaldson-Katsopolis on the classic ABC sitcom Full House and the Netflix sequel Fuller House, and starred in the Hallmark's When the Heart Calls, was one of fifty people implicated in the admissions scandal that also netted actress Felicity Huffman, known for her role in ABC’s Desperate Housewives. The mastermind of the manipulation was Rick Singer, CEO of The Key, which promised to help “the wealthiest families in the US” get their children into some of the country’s most prestigious colleges.

Many tutors, SAT prep courses, and other admissions aids honestly and legally help students improve their chances of acceptance to their preferred colleges. So, how did Singer run afoul of the law? He allegedly helped his clients’ children cheat on ACT and SAT tests, and he bribed college athletic department personnel so they would claim that certain students were recruits for their teams, even when some never played the sport in question.

However, perhaps the most devious thing Singer did was create “The Key Worldwide Foundation,” which was supposedly a charity that funded programs for underprivileged children in the U.S. and abroad. In reality, the Foundation served as a front for money-laundering, or a way for the wealthy to pay Singer who then channeled bribes to accomplices on college campus that included USC, Yale, and New York University, among other prestigious schools.

As someone who works in higher education, has one child who recently graduated from college, and has another who is currently making his college decision, the admissions scandal hit close to home. However, the scandal is even more unsettling to me as a marketer.

No, I’m not just talking about what Singer did. His bad decisions to build a business based on cheating and bribery and to operate a fake foundation were certainly appalling and surprising. What was even more amazing to me was the apparent ease in which he secured willing parties to the schemes, not just from the general population but from those representing high society and higher education—people who stereotypically ‘should know better.’

In addition to accomplished actresses Loughlin and Huffman, alleged scandal participants include an array of elite professionals from business, academia, and other fields. Some of the specific individuals implicated, along with their current or former positions, are:

Rudolph Meredith, head women’s soccer coach at Yale University
John Vandemoer, sailing coach at Stanford University
Igor Dvorskiy, director of West Hollywood College Preparatory School
Gordon Ernst, head tennis coach at Georgetown
Donna Heinel, a senior associate athletic director at USC
Jorge Salcedo, the head coach of UCLA men’s soccer
Gordon Caplan, New York attorney and co-chairman of the law firm Willkie Farr & Gallagher
Gregory Colburn, a radiation oncologist in Palo Alto
Robert Flaxman, chief executive and co-founder of Crown Realty & Development, and a Beverly Hills resident
Homayoun Zadeh, associate professor at USC’s Herman Ostrow School of Dentistry and director of the school’s Advanced Program in Periodontology

Why would so many smart and talented people risk their reputations and/or careers to associate with Singer. The motives were likely mixed. Of course, many of the participants were parents who may have been willing to do anything to see their children succeed. Those who accepted bribes, probably wanted the money. Some may have felt pressure to assist for the good of their institution. Maybe some saw or heard of others doing similar things and rationalized ‘there’s safety in numbers.’

Whatever the motive, I doubt that many of the participants, if any, seriously thought that they would get caught. If they did, they probably wouldn’t have participated. Instead, they operated under the delusion that what could be hidden from public view didn’t matter.

That misconception is one of the biggest fallacies of marketing, in general, and personal branding, specifically. In an article I wrote a couple of years ago, I aimed to debunk that myth by suggesting that a personal brand consists of three elements: character, competencies, and communication. I likened the first two components to the layers of a cake and the last one to its icing.

Some individuals erroneously act as if they can overcome flawed character and inferior skills by spreading on a thick layer of overly flattering or even disingenuous communication. Besides being dishonest, this approach only works for so long. Eventually cracks in ‘the cake’ show through the communication. Unfortunately for them and others impacted by their indiscretions, those involved in the college admissions scandal seemed to subscribe to this hollow approach to personal branding.

As I was writing this blog post, my wife shared with me some very sad news. A good friend of ours from early in our marriage had passed away suddenly at home, at the age of 58. Mark Sneff was someone who built his personal brand the right way. Even as he developed his competencies to rise to the top of the HR profession, his character exuded integrity. Mark also was uniquely gifted at communicating “the truth in love”: He could offer an honest critique that felt like a high compliment.

As the outpouring of fond remembrances on his LinkedIn page suggests, Mark was a widely loved individual who many held in high regard. I’m not sure he thought much about personal branding. I am very confident, though, that he never would have resorted to a ruse to advance the educations or careers of his two children, who he loved greatly. Interestingly, Mark was the first person I ever invited to speak to my college classes.

It’s so nice to know people who ‘market themselves’ the right way. The recent college admissions scandal should be a reminder that it only take a moment to destroy a personal brand that took decades to build. Unfortunately, that fact means that Loughlin and all who participated in Singer’s schemes, not only injured themselves and others, they’re also guilty of “Mindless Marketing.”

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How a Blind Marketing Student Sees a Smart Cane

3/8/2019

31 Comments

by Jason Polansky, Marketing Major at Messiah College

I enjoy each day without something that many take for granted—eyesight. To safely navigate a sight-friendly word, a blind person develops other aptitudes, like a keener sense of hearing, and learns to use technology, such as a smartphone with GPS. Now one company has developed a hi-tech version of a tool blind folks have used forever—the cane. The thought of a ‘smart cane’ is intriguing, but is it Mindful Marketing?

A few years ago, members of Turkey’s Young Guru Academy (YGA), a nonprofit organization aimed at assisting disadvantaged members of society, began to develop WeWALK, a smart cane that uses ultrasonic sensors, microphones, and speakers to help individuals with visual impairments “see obstacles.” More specifically, a WeWALK hardware unit attaches to the handle of a blind person's cane, allowing him/her to more easily navigate outdoor environments.

Despite its recent start, the company has rapidly gained a social media following on Facebook, Twitter, and YouTube. The firm also has been featured on CNN International, NowThis, Forbes, Dr. Oz, and certain New York City television outlets.

What features and benefits does WeWALK offer that have spurred its rapid rise? The following list summarizes key parts of the new product’s value proposition:

vibration and an ultrasonic sensor to detect overhead and chest-level obstacles, such as hanging tree branches and telephone poles
a compass, accelerometer, and gyroscope for GPS technology and Google Maps integration
Bluetooth connectivity, to be paired with an iOS or Android smartphone and integration with apps such as Google Maps
touch controls that allow users to access their smart phone via the device itself, without having to remove the phone from a pocket, purse, or backpack
a microphone and speaker for voice control and Amazon Alexa integration
support for Turkish and English languages
approximately five hours of battery life
charging via a micro USB port
weight of 430 grams
length of approximately one foot
open platform for app developers to add integrations with the device
purchase price of $349 through Indiegogo

I applaud the idea and the innovation behind WeWALK and appreciate several of its strengths. For instance, overhead obstacle detection is a feature that I would find helpful. Oftentimes when I go hiking, or even when I am just walking down the sidewalk in a residential area, I never know when I am going to encounter an overhead object like a tree branch or some low-hanging sign.

In addition, the ability to connect to a smartphone via Bluetooth could save time and provide convenience by not having to hold a phone in one hand and a cane in the other. Allowing a free hand is a plus.

However, WeWALK also has some significant limitations. First, it does not attach to all types of canes that blind people use. I personally prefer a light-weight, rigid, National Federation of the Blind white cane with a metal tip, but WeWALK does not currently attach to this type of cane. Most of the canes that the device attaches to are much heavier and bulkier in nature. However, AppleVis does say that the firm has a goal of attaching to every popular cane in the world.

Another concern is how well the product can withstand the elements. Due to it being an outdoor product filled with many electronic components, one must be aware of rain during all seasons, as well as winter snow and summer heat. A useful addition to the product would be a protective case of some sort that would not muffle the sound from the speaker.

Speaking of the speaker, I would be interested in knowing how much volume can be produced. Outdoor environments can be quite noisy, due to traffic, construction, and other noises that may prevent the user from being able to hear its audio feedback while holding the cane at arm’s length.

It’s also worth noting that a five-hour battery life may not be enough to get someone through an entire day of traveling, especially while on vacation or otherwise being a tourist. Maybe this deficiency could be remedied by charging through an extra external battery that the user could carry in his or her backpack or purse. However, that power supplement would mean a rather long cord attaching the battery to the device, as well as extra weight.

One also must acknowledge the limitations inherent in any GPS product for the Blind. A GPS won’t tell a pedestrian when it’s safe to cross the street, the path to take through construction, nor will GPS directly lead the user across a large parking lot. Just about any blind person who is an experienced traveler would say that possessing strong mobility skills and knowing how to travel safely is essential before attempting to use any GPS product.

Just as when driving a car, a GPS will tell the driver how to get to the desired destination most of the time, but it does not know the rules of the road. It does not tell the driver to stop at a stop sign or obey the speed limit. Thus, I would not recommend this product to a blind person who does not possess adequate cane travel skills in the first place or who is fearful of traveling in unfamiliar environments.

Beyond the preceding limitations, a big turn-off for me is some of the language used on the firm’s about page. The first line says “WeWALK is the world's most revolutionary smart cane developed for the visually impaired people.” Using the word “the” before “visually impaired people” is a rather patronizing way of describing the target market, just as it is insensitive to use “the” before the name of a racial group. Furthermore, I don’t believe “blind” is a negative word, and I feel it’s fine to use “blind” when describing people who are not completely blind.

A better way to phrase the webpage phrase may be:

“WeWALK is the world's most revolutionary smart cane developed for blind and visually impaired individuals, allowing for greater independence and mobility through innovative technology,” or

“WeWALK is the world's most revolutionary smart cane, strategically built with the blind in mind, combining the white cane that you have known and loved for decades with ground-breaking technological advancements.”

In any case, the company should seriously rethink this use of language as it moves forward.

Overall, WeWALK is a decent and well-intentioned product that shouldn’t cause any serious harm. Still, at a price of $349, there are plenty of ways in which the product must improve before it can truly compete within the marketplace of technology and other tools targeted for blind and visually impaired individuals. Sometime in the future, WeWALK may be Mindful, but at this point I see the smart cane as “Simple-Minded Marketing.”