Twitter Dumps LinkedIn ... What's Next?

Breaking up is hard to do. It can either wreck the individuals, or allow them to find themselves.

It will be curious to see how the subtle break up between Twitter and LinkedIn will play out. This weekend, LinkedIn divulged via an email to its participants that it will no longer distribute tweets. The move is apparently intended to comply with a new Twitter policy prohibiting third-parties from using its content in a way that mirrors the mini-blog website.

What does this mean? In a way, this could allow both participants in this social utility breakup to move on, find themselves and succeed separate from the other site.

For Twitter, it appears to be an attempt to exercise its emerging clout and take more control over its content. To be correct, it is asserting more control over the content created by its users. It is a gutsy move, but apparently one that Twitter believes is necessary. Twitter is no Facebook. It is not LinkedIn. Twitter has nothing if it loses its user content.

I personally like LinkedIn's position post-breakup. This view isn't shared by everyone, some of which are critical of the site's decision to let its users' posts flow through to Twitter.(Users have to click a button to do so.)

"That's a nice supplement, but not many people use LinkedIn to share or take in content," Salvador Rodriguez writes in a recent blog. "That means most people won't even notice this change, and the ones who do are going to be left with fewer reasons to come back to LinkedIn."

I strongly disagree. For starters, the breakup allows LinkedIn to continue to focus on what it does best, facilitating networking and connecting employers to potential employees. (Rodriguez acquiesces to this in his blog.) 

I believe the LinkedIn's continued inclusiveness of tweeting will serve it well. Often in a human breakup, friends are torn between maintaining a relationship with either of the parties involved. This may also prove to be the case here.


By being inclusive, LinkedIn is giving users more a reason to stock with the site. If LinkedIn's 130+ million users would just take advantage of this open framework, it would reduce their need to jump over to Twitter. Thus, a move by Twitter to white knuckle and retain its users could backfire. Apparently some developers are already spooked.

I agree with Rodriguez that LinkedIn must "continue to emphasize its strength -  being the premier source of online social business connections." But it certainly can foster this open relationship as it looks to forge a strategy to get its user to post more on its site.

Only time will tell who benefits from this breakup. I am eagerly awaiting the results.

Allison Preps First Book, Leaving Professor Post

John Allison could be the busiest individual in Winston-Salem.

Photo: Amazon.com

Yesterday, it was announced that he would become the president and CEO of the Cato Institute. In today's online version of American Banker, Allison discusses his new book and discloses his intention to step down as a professor at the Wake Forest University Schools of Business in September when he joins the libertarian think tank. (He hopes to remain on the board of visitors.)

“Hopefully, I have eliminated some of the confusion" about the 2008 financial crisis, Allison tells American Banker.

The crisis led the Bush administration to intervene with the Troubled Asset Relief Program which infused billions of dollars into the banking system. Allison has always raised objections to the program, saying that his bank was forced to participate.

“I also hope to impact the debate during the presidential election," he tells American Banker. "Everything we’ve done since the crisis has hurt us in the long term. … I’m not interested in politics but I am interested in the policies.”

According to Amazon.com, McGraw-Hill will release the 320-page book on Sept. 25. The site summarizes the work as: "One of the biggest voices for economic and banking policy reform - with support from the Ayn Rand Institute - argues that extreme free market capitalism is the only hope for building back our economy." The presale price is $21.15.

John Allison to Lead the Cato Institute

John Allison, the former CEO of BB&T and a professor in the Wake Forest University Schools of Business, will become the CEO of the Cato Institute in September. It makes sense that he would be tapped to lead one of the nation's most prominent Libertarian think tanks. Below are highlights from the release:

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The Cato Institute and its shareholders have reached an agreement in principle that would resolve pending lawsuits filed by Charles Koch and David Koch against Cato, its CEO, and several of its directors.

Under terms of the agreement, Cato will no longer be a stockholder corporation and John Allison (the former CEO of BB&T) will be replacing Ed Crane, who will be retiring as Cato's CEO. That represents a compromise by which both sides will achieve key objectives.

The Cato Institute will be governed by members rather than shareholders. The members will be the directors of the Institute and will elect their own successors. Initially, the Board will include 12 long-term Cato directors, including David Koch. They will be joined by three other Koch designees and Allison, who has the option to nominate one or two additional directors. Charles Koch, Crane, and Washburn will not be on the Board.

Crane, who co-founded the Institute with Charles Koch and served as its CEO for 35 years, will retire within six months. He will be succeeded by Allison, an expert on political philosophy and public policy and a revered libertarian, admired and respected by the Kochs and the Cato Board. Crane will work with Allison during the transition period and then serve as a consultant on fundraising and other matters.

Allison said he was "happy to assist in resolving the pending litigation and related issues," and affirmed that his goal is "to sustain Cato's efforts at moving the country toward a freer and more prosperous society."

Here is audio of an interview Allison recently did with the Cato Institute:

Remembering Medlin

“My involvement with Wake Forest comes because I try to be a caring person, and put something back into the society that has been generous and kind to me.”

Photo: Charlotte Business Journal

John Medlin, a former chairman and CEO of Wachovia Corp. and a life trustee of Wake Forest University, recently passed away unexpectedly. He was 78.

Medlin served four terms on the university’s board of trustees and was one of three chairs of Heritage & Promise: The Campaign for Wake Forest in the 1990s. He was honored in 1990 with an honorary doctor of laws degree. Eight years ago, he was elected to serve as a life trustee.
 
We decided to assemble the highlights of recent quotes and articles honoring Medlin, both as a banker and as a benefactor to the university. He will be greatly missed.

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“John was a true friend of Wake Forest and provided tremendous leadership as a trustee, Chair of the Board, and as a life trustee. I will miss his wise counsel and his friendship.”

~ Wake Forest University President Nathan Hatch 

"There are many reasons why Medlin's counsel remained so widely prized. He was a courtly and precise decision maker. He was a voracious reader of economic information, current events and military history. ... Mostly, though, he retained what his chosen industry has sadly lost in recent years - unchallenged integrity and trust based on his storied banking credentials."

~ Justin Catanoso, former executive editor, The Business Journal (Triad)

"This is a sad day for North Carolina, as well as Winston-Salem, Wachovia and me. Not only was John a legendary banker and an icon in the business community, but he represented the heart and soul of our company for many of us who grew up with Wachovia. "

~ Stan Kelly, Carolinas regional president at Wells Fargo & Co.

Read more here: http://www.charlotteobserver.com/2012/06/08/3299745/john-medlin-wachovias-fourth-ceo.html#storylink=

“He had such an incredible mind for banking. He understood demographics. He understood economics. He understood banking fundamentals. He literally pioneered relationship banking and risk management in the industry.”

 ~ Jim Cherry, CEO, Park Sterling Corp.

Read more here: http://www.charlotteobserver.com/2012/06/08/3299745/john-medlin-wachovias-fourth-ceo.html#storylink=cpy

"Within the banking industry he was known for perpetuating the 'Wachovia Way,' which included principles for customer care and tight financial controls that helped a steady rate of growth in profits, even during downturns."

~ Wall Street Journal obituary

Negotiation Tips From a Garage Sale King

I just found a Q&A from U.S. News and World Report with Aaron LaPedis, the so-called "garage sale millionaire" who writes a monthly column for the Denver Post. You can click here to read the entire article, but I found his comments on negotiation at a garage sale interesting. I'm including that section below.


What are your strategies for pricing items?

I believe getting the other person talking starts to bring down the barriers. So anything under $15, I don't believe in pricing it. If there's no price, they're going to ask, "How much is this item?" and your follow-up would be, "What are you willing to pay for it?" They will come back to you with an amount of money and that's where you can start negotiating.

A lot times when you don't price items, you may get more than what you were hoping for, but this way, guaranteed, it will trigger a conversation between you and the buyer. Most of everybody's yard-sale stuff is under $15, so it's usually time-consuming to price all those little things. Now, if you have items above $15 to $20, you want to price it because people will offer you a lot less than what you're going to want.

An Empty Glass: How to Lose a Customer in 5 Minutes

Earlier today, I posted a blog detailing how a Yadkin Valley winery, faced with a negative customer experience, proactively addressed the issue and won a lifelong advocate. 

Not all companies know how to do this. In fact, some of the best lessons in customer service come from observing what not to do. I struggled writing his blog, trying to make it less of a rant and more of an instructive guide.

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A comedy of errors caused me to miss this year’s North Carolina Wine Festival. Suboptimal customer service from representatives for the event’s organizer assured that I will never attempt to attend the festival again.

We don’t live terribly far from Tanglewood Park in Clemmons, so I decided about a week before the festival  to pay $40 for two tickets. After completing the purchase, I got a notice that I would receive an email confirmation which I assumed would serve as my ticket. That confirmation never arrived and, to make matters worse, I mistakenly thought it was a Sunday event. So we showed up 24 hours too late.

No worries, I thought. I will just call Curtis Media, the event’s organizer, explain what happened and get a refund since they never sent the promised follow up communication. I was wrong. The woman who answered the phone made several big missteps from the perspective of customer service.

·         Zero empathy. She repeatedly found ways to put 100% of the blame on me. Granted, I was ultimately responsible for confusing the date, but there were some clear errors in the online ordering. An upset customer, on a very basic level, just wants to feel heard.

·         They never offered to look into the problem. Just making that offer would have at least made me feel as though Curtis Media was proactive and interested in making improvements to benefit others. (Sanders Ridge, as you may recall, did look into the problem we had, thanking me for helping them identify it.)

·         An argumentative approach is frustrating. At one point, she defaulted to saying no refund. Such rigidity poisons the customer experience. There was no attempt at compromise or to find a middle ground. It was a zero sum game for her – over $40.

·         I had to ask to speak to the general manager. One way to make someone feel heard is to give them an opportunity to speak to “the boss.” I had to ask for that. She told me that the GM would be unwilling to work with me, and she was right. Three days have passed and he has yet to return my voice mail message.

It is interesting to look at the math. The event boasts that it draws 250,000 people, bringing in roughly $5 million on presale tickets alone. So refunding my $40 would have cut into that revenue line by a percentage so low it isn’t worth trying to calculate. Then again, when you have that many people attending, maybe you can afford to upset dozens with poor customer service.

The unfortunate thing about this experience is that the wine festival brought in at least 30 wineries, and I am willing to bet that most, if not all, of them would have given me better customer service under the same circumstances. (In fact, Sanders Ridge was among the wineries at the event.) Since many are not close to Winston-Salem, it is unlikely that I will visit them any time soon. I definitely will not see them at the next NC Wine Festival.

In Vino Veritas: Wine and the Customer Experience

As translated, the Latin saying goes: in wine there is truth. Wine also serves as the inspiration for today’s blogs, looking at how important it is to provide potential customers with a unique experience built around exceptional service. 

These blogs will focus on both positive and negative customer experiences. In one instance, an employee’s quick thinking led to a salvaged relationship and a nice boost in a company's bottom line. The other, unfortunately, will cost a company more money than it gained.

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You hear in business school about the importance of reacting quickly to remedy customer concerns; how word of a bad experience travels faster than a positive one. While that adage usually rings true, I have also seen instances where an exceptional experience has delivered substantial benefits to an attentive and proactive business owner. 

This morning, I’ll start with the positive experience. A few months ago, my significant other and I were ambling around the Yadkin Valley, stopping at wineries trying to find a new red wine. Nearing the end of the day we saw a sign for Sanders Ridge Vineyard and Winery and, on impulse, decided to drive a bit out of our way to check it out. We pulled into the drive, walked by some friendly folks in front of the cabin and went to the bar to request a tasting.

Entrance to Sanders Ridge

Just as someone was getting ready to pour, a manager told us that the winery was hosting a wedding. There were no more tastings. There were no signs and no warnings to alert us beforehand, leaving us to walk back through the phalanx of smiling “greeters,” get in our car and drive home disappointed.

Unfortunate, eh? Not so fast. This is where the winery turned a negative experience into a positive one. I emailed them the next day to express my frustration. Within a half hour, I had a response, apologizing for the confusion and offering me a gift card for two free tastings if we gave Sanders Ridge a second try.

Jennifer thanked me for alerting her to the issue – the winery had not placed a private party sign at the entrance – and she directed me to the Sanders Ridge website to look at their upcoming events and restaurant menu. We accepted her offer and returned a few weeks later.

This allowed the winery to fully win us over. During our second trip, the owner was there, telling us stories about building the cabin, wine making, and more. He was unaware of our first experience – it wasn't something we wanted to advertise – validating the sincerity of his conversational state.

We also discovered that Sanders Ridge offers bird watching (a favorite hobby for my significant other), zip lines, and a nice restaurant. They are working quite hard to offer customers a wide range of memorable experiences, and we wouldn’t have known about any of them if my email went ignored. My significant other turned to me as we left last weekend and said, “I think I’ve found my new favorite winery!”

Empowering employees to make those types of customer service decisions can be critical to maximizing revenue and income. We found a new favorite wine – Sweet Kate – and we have since bought several bottles, exposed our friends to their wines and made a return trip. And it was all because of the responsiveness of one employee.

I feel so good telling this story, which makes it difficult to discuss the negative customer experience. Let’s take some time to absorb the positive vibes; I will return to the blog later today to assess the suboptimal experience. And yes, it also involves wine!