Anyone who teaches or writes about business should have actually run a business, or at least worked in one.
Makes sense, right? Would you study surgery with a professor who had never performed one? Or learn a language from a linguist who’s never spoken it? Or copied hamburger recipes from a lifelong vegetarian? Yet in business schools — and on the Internet — lack of experience is the NORM. Oh, beware, my students!
I’ve ranted against inexperienced “experts” frequently, starting when I had to endure Ivory Tower zeroes in business school: classes taught by wonks so out of touch with reality, they’d struggle to sell fudge brownies to potheads. My MBA “Marketing Strategy” class was a running gag of ill-thought formulas that never added up. Now, I should credit that class for driving me to research and interview real business people, who confirmed that my professor was shoveling a load of elephant effluent.
These days, whenever I miss business school (which is about as often as I miss the last Bush presidency), I gravitate to the Harvard Business Review blog. There you’ll find more posers than in the fashion spreads of Vogue magazine. I’ve mocked HBR on a few occasions:
- Business Journal Makeover: Enter The Harvard Obviousness Review
- What Does “Professional” Mean In The Social Media Era? Not This…
- Why I Won’t Get A PhD: Exhibit 1A
And I’m sorry, I can’t help it, I have to comment on another.
This article, “How Pinterest Puts People In Stores,” isn’t the worst HBR article ever — it actually does contain some interesting insights on Pinterest, which most marketers haven’t studied because Pinterest matters to fewer people than what’s happening on Project Runway. But at the beginning of this article, one statement threw me so far off, it took me an hour just to get back to my computer. Here it is — can you see what’s so annoying about it?
“‘Showrooming’ — a phenomenon whereby shoppers visit stores to examine merchandise in person before buying the items online — is viewed as a huge threat to brick-and-mortar retailing. The problem is thought to be so bad that at least one merchant has started charging people to browse in its stores. Our research suggests that the threat is overrated. We asked nearly 3,000 social media users in North America and the UK about their shopping habits, and only 26% reported regularly engaging in showrooming.”
OK, STOP. If you run a business, how big a number is 26%? It might sound small to some Harvard Business Review bloggers, but let’s imagine that you actually run a store, and out of every 4 people who walk in, at least 1 checks their phone for the price elsewhere. If you’re a teacher, imagine that 1 out of 4 students checks their phone for what’s happening at other schools while you’re teaching. Imagine that you’re dating, and 1 out of 4 of your dates checks their phone mid-date for other options. How does that make you feel? Pretty damn cheap right?
Now forget feelings — we’ve all got ironclad hearts in the 21st Century — let’s talk MONEY. Let’s say 26% of those people in your store check out your competition, and let’s say 1/2 stick with you. Cool… but after wasting your time, the other half purchases elsewhere. If you’re a business, what does a 13% loss in revenue do to you? If you’re a worker, what would a 13% paycut do to your life? If you’re a large public corporation, losing 13% of your sales drives your stock so low you’re looking up to earthworms. If you run a small business (like my father did), losing 13% of your sales may mean going out of business entirely. And if you’re a country, losing 13% of your GDP means you’re in a DEPRESSION.
So 26% of shoppers regularly showrooming is “overrated”?
We’re still in an economy where every sale matters. Look through the rest of Harvard Business Review, and you’ll likely find other articles claiming that EVERY customer matters, especially when individual customers today can obliterate you using the power of social media. (That’s not true, but hey, they’re saying it.)
And we’re not supposed to worry about 26% of our customers using our stores as showrooms for online competitors?
Now, this article goes on to explain how Pinterest actually drives sales… sometimes. But marketing is the art of perception, and that “overrated” statement made me perceive the writers as people who don’t know what they’re talking about. So if I were a store-owner, rather than hope and pray that Pinterest would make up for all the people using me as a showroom, I’d start thinking about career alternatives. Instead of trying to survive in the brutal, low-margin world of retail, maybe I would start writing articles for the Harvard Business Review. After all, it doesn’t look like they require any experience.