A friend of mine in the tiny, sunny island of Singapore, just told me about a really interesting development that really got the people miffed: “The New Taxi Stand Rule“.
This was really interesting. You see, most of the policy makers, as commonly assumed, are government scholars. The best of the best. The brightest of the bright. So, they are supposed to, short of being able to see tomorrow’s stock index, be able to map out the plans for the future.
Now, the “central business district” is the downtown area that is consists mainly of offices and shopping malls. It is usually the most crowded and traffic is usually congested. This whole “taxi” rule came about because of a desire to improve road safety and to impose a stronger measure of orderliness in an already highly ordered society.
The problem occurs where the rubber meets the road, almost literally. While the measures are good, it created ripples of inconveniences that the law-makers never expected – the disabled, the elderly, and the vagarities of the weather. Having to trudge 50 meters in the rain to get to/from the allowed taxi stand is definitely not an improvement in the eyes of executives and office workers who used to have the convenience of a taxi to the doorstep.
Forcing a wheelchair bound person to use the taxi stand is even more ludicrous. Now, how is all of this relevant in a marketing blog?
Marketing is about communications. But communications is not all there is to marketing. How the example of logical thinking failing in the face of reality can be illustrated by one example that I will give below:
Everyone knows that there is no better way to drive volume and increase take up rate by giving away one free for every two purchased. Right.
Several years ago, a company wanted to launch a new game. The revenue model was for gamers to buy a prepaid card with a special code number on it, then, they get to play for 30 days when they enter this code into the computer. So, marketing said, “Buy 1 and get 1 free”. Simple.
Well, actually, what really happened was, instead of increasing sales and increasing take-up, they have just REDUCED SALES by 50% and lost 80% of the follow up sales. Those familiar with the online games market will understand this. What happened? Unlike other consumer products, online games have a definite, and usually short, life-span. Giving one for one simply made it so that gamers (who always move in groups) simply pooled together and bought half of what they would have purchased originally.
Then, follow up sales suffered because not everyone will continue. So, with a lower initial sales, follow up sales will also be lower. Now, this is again different from those instances where games are played for free and then later have upgrades to a paying model. It is not as simple as it appears at the outset.
All I am saying is, knowing happens at many levels. And sometimes, the heart and soul of a specific market could be very different from the norms of a generic market.
NOTE: As of now, they are reviewing the policies to address some of the concerns raised about the elderly and the disable. The rest of them just have to learn to use an umbrella, I guess.