Sunday, December 10, 2006

People buy features

by alec on December 10, 2006

Would you buy fewer features if given the option?  Imagine, for example, being given the choice of a brand new vehicle with a five channel stereo, GPS navigation system, and luxury heated seats, or a bare bones vehicle.  Now imagine, all other things being equal, that they cost the same… Who wouldn’t go for the tricked out vehicle?

That’s Joel Spolsky’s contention in Simplicity.  It’s also Donald Norman’s view when he says that Simplicity is highly overrated.

People want choices.  Choice is good.  More choice is better.  Nobody understands this better than US consumer marketing people.  When I returned to Canada from living in the United States after seven years, do you know what I missed the most?  Choices. Choices at the grocery store.  Choices at the book store.  Choices at the electronics store.

Choice sells.  Joel says:

With six years of experience running my own software company I can tell you that nothing we have ever done at Fog Creek has increased our revenue more than releasing a new version with more features. Nothing. The flow to our bottom line from new versions with new features is absolutely undeniable. It’s like gravity. When we tried Google ads, when we implemented various affiliate schemes, or when an article about FogBugz appears in the press, we could barely see the effect on the bottom line. When a new version comes out with new features, we see a sudden, undeniable, substantial, and permanent increase in revenue.

Exactly!

Why is it that every new version of Windows has more features, more options, more stuff?  Why did Apple add video to the iPod?  Why do hot-tubs come with sound systems?  People buy features.  You may not need all those features.  You may never use all those features.  But you can take comfort in the fact that they’re there, knowing that you got value for your money.

This lesson has been largely lost on the telecommunications industry.  Instead of delivering feature rich, complete services, the MBAs in the bowels of these companies toil away figuring out how to deliver new “products” that nobody really wants.  The first time I heard someone describe caller-ID as a product, my jaw hit the floor.  After I got over my astonishment, the same person went on to describe caller-ID block as another product.  Some bean counter with an aptitude for linear programming had obviously determined that by selling all of these features separately, carriers could maximize revenues.  A product of monopoly-coddled inbreeding, it never occurred to them that they might someday be subjected to competitive forces. 

That day is here.  The bundling started by VoIP carriers like Vonage, and now being perpetuated by new cable entrants will lead to an arms race as incumbents and upstarts duke it out for feature supremacy.

Hallelujah.  We shall be delivered from the tyranny of the Bells, brothers and sisters!

{ 3 comments }

Bloggers imprisoned in Iran and USA

by alec on December 10, 2006

Internet journalists are being imprisoned in ever greater numbers, according to the Committee to Protect Journalists.  For the first time, two bloggers have been imprisoned, Arash Sigarchi and Joshua Wolf.

IRAN: 1
Arash Sigarchi,
freelance
IMPRISONED: January 26, 2006

Sigarchi, a former editor of the daily newspaper Gilan-e-Emruz and a Web blogger, was sentenced to three years in prison by an Iranian appellate court on several offenses, including insulting Supreme Guide Ayatollah Ali Khamenei and propagandizing against the Islamic Republic in his online blog.

Sigarchi had posted entries and given interviews to Western radio stations that were critical of the government’s harassment of fellow bloggers. He was originally given a 14-year sentence by a revolutionary court in Gilan in February 2005.

UNITED STATES: 1

Joshua Wolf, freelance
IMPRISONED: September 1, 2006

Wolf, a freelance blogger and videographer, was jailed in San Francisco for refusing to turn over to a federal grand jury a videotape of a 2005 protest.

The case pending in a federal appellate court hinges on whether Wolf has a First Amendment or common law right not to turn over his videotape. On August 1, a federal judge ordered him to jail for refusing to turn over the tape. He was incarcerated for 30 days before a two-judge panel of the 9th Circuit Court of Appeals ordered him free on bail while his appeal was pending. On September 11, a three-judge panel for the same appellate court revoked Wolf’s bail at the prosecution’s request. He returned to jail on September 22 even as his appeal was pending.

Wolf taped clashes between demonstrators and San Francisco police during a June 2005 protest by anarchists against a Group of Eight economic conference. Wolf sold footage of the protest to San Francisco television stations and posted it on his Web site. Investigators are seeking Wolf’s testimony and portions of his videotape that were not broadcast. A federal grand jury is investigating possible criminal activity, including an alleged attempt by protestors to burn a police vehicle.

{ 0 comments }

Jeff's virtual cocktail party

December 10, 2006

I just got tagged by Andy Abramson in a game of blogger tag, via Jeff Pulver.  The game is pretty simple.  Most bloggers are known by their blogs.  Publish five little known facts about yourself, and then tag five of your blogger pals to participate.  Here goes: You may have seen the odd post here [...]

Read the full article →

Just when I was getting used to the nice Indian support rep…

December 10, 2006

In a fascinating development, the Indian VoIP market (which was deregulated in 2002) now seems to be closing ranks again.  Call center operators, among others, will have to publish the names of the companies they do business with, and a wide ranging list of offshore operators like Skype and Vonage are banned.  Om Malik writes: “For a [...]

Read the full article →

Will the real Windows Vista requirements please stand up

December 10, 2006

What are all the fashionable press people writing about for the launch of any new Microsoft OS?  The stories debunking Microsoft’s system requirements are de rigueur, of course.  BetaNews takes a poke at Microsoft’s claims yesterday, quoting from a whitepaper by analyst firm iSuppli.  Microsoft’s claims are a little ludicrous, which makes them an easy [...]

Read the full article →
Alec on LinkedIn Alec on Twitter Alec on Facebook Calliflower on Youtube RSS Feed Contact me