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	<title>Comments on: Final Ferrit: The business economics</title>
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		<title>By: Because &#171; Rowan Simpson</title>
		<link>http://lancewiggs.com/2009/01/25/final-ferrit-the-business-economics/#comment-22387</link>
		<dc:creator><![CDATA[Because &#171; Rowan Simpson]]></dc:creator>
		<pubDate>Sun, 11 Jul 2010 09:34:03 +0000</pubDate>
		<guid isPermaLink="false">http://lancewiggs.com/?p=1361#comment-22387</guid>
		<description><![CDATA[[...] A business model that didn&#8217;t add up &#8211; not enough margin to go around. [...]]]></description>
		<content:encoded><![CDATA[<p>[...] A business model that didn&#8217;t add up &#8211; not enough margin to go around. [...]</p>
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		<title>By: Chris</title>
		<link>http://lancewiggs.com/2009/01/25/final-ferrit-the-business-economics/#comment-11774</link>
		<dc:creator><![CDATA[Chris]]></dc:creator>
		<pubDate>Sun, 25 Jan 2009 22:23:54 +0000</pubDate>
		<guid isPermaLink="false">http://lancewiggs.com/?p=1361#comment-11774</guid>
		<description><![CDATA[There&#039;s also a tinge of arrogance, or stubbornness involved.  The whole industry panned Ferrit from day one, and it wasn&#039;t because it was Telecom - it was because Telecom spent an obscene amount of money to put together a very average site.  The NZ industry were very vocal in dissecting the shortcomings of Ferrit.    It could be said that Telecom had it easy - they had money to burn and a willing and knowledgeable choir of industry veterans telling them exactly what was wrong with their business model and execution and how to fix it.  All Telecom needed to do was remove the lawyers of bloat and get someone in there who knows the ingredients to a successful online operation.  But no, Telecom in their arrogance clearly ignored everything anybody was saying and continued on, determined to put away the $3 commissions until one day it added up to $70m.  Someone at Telecom was obviously making it a personal vendetta to prove everybody wrong and continue signing off on appalling advertising and keep spending money in the hope that one day New Zealander&#039;s would catch on and realise that Ferrit was in fact a godsend and how silly we have all been for not spending our precious time there.  The sad part is that statistics show people were in fact spending some time there, time spent on site was quite high - it&#039;s just a shame that in the $70m spent somebody forgot to commission some A/B testing and work out how to convert some of these visitors into buyers.  

But no no, somebody at Telecom read that if you continuously pound people with traditional media advertising that you will implant your awful, dodgy sounding brand into the mind of the consumer.  Then said consumer will find themselves subconsciously wandering over to Ferrit, buying lots of stuff and telling all their friends what a fantastic site and wow it was all so easy.  Alternatively, you could study and learn from NZ&#039;s best executed (and one of the worlds best might I add) online businesses and take a leaf out of their book on how to build a brand and a business.  When the advertising didn&#039;t work Telecom obviously reconvened and came to the conclusion that people just weren&#039;t getting it and understanding what Ferrit was, so out came new TV ads with some weirdo and half a face repeating the point that Ferrit was a shopping mall and had many retailers under one roof.  What year is it, 1997? Trust me Telecom - people not knowing what Ferrit was was not the problem.  People knew all too well what it was and it was that public indifference to it that cut off your life support - you just simply weren&#039;t to get another chance no matter how many small improvements you made.]]></description>
		<content:encoded><![CDATA[<p>There&#8217;s also a tinge of arrogance, or stubbornness involved.  The whole industry panned Ferrit from day one, and it wasn&#8217;t because it was Telecom &#8211; it was because Telecom spent an obscene amount of money to put together a very average site.  The NZ industry were very vocal in dissecting the shortcomings of Ferrit.    It could be said that Telecom had it easy &#8211; they had money to burn and a willing and knowledgeable choir of industry veterans telling them exactly what was wrong with their business model and execution and how to fix it.  All Telecom needed to do was remove the lawyers of bloat and get someone in there who knows the ingredients to a successful online operation.  But no, Telecom in their arrogance clearly ignored everything anybody was saying and continued on, determined to put away the $3 commissions until one day it added up to $70m.  Someone at Telecom was obviously making it a personal vendetta to prove everybody wrong and continue signing off on appalling advertising and keep spending money in the hope that one day New Zealander&#8217;s would catch on and realise that Ferrit was in fact a godsend and how silly we have all been for not spending our precious time there.  The sad part is that statistics show people were in fact spending some time there, time spent on site was quite high &#8211; it&#8217;s just a shame that in the $70m spent somebody forgot to commission some A/B testing and work out how to convert some of these visitors into buyers.  </p>
<p>But no no, somebody at Telecom read that if you continuously pound people with traditional media advertising that you will implant your awful, dodgy sounding brand into the mind of the consumer.  Then said consumer will find themselves subconsciously wandering over to Ferrit, buying lots of stuff and telling all their friends what a fantastic site and wow it was all so easy.  Alternatively, you could study and learn from NZ&#8217;s best executed (and one of the worlds best might I add) online businesses and take a leaf out of their book on how to build a brand and a business.  When the advertising didn&#8217;t work Telecom obviously reconvened and came to the conclusion that people just weren&#8217;t getting it and understanding what Ferrit was, so out came new TV ads with some weirdo and half a face repeating the point that Ferrit was a shopping mall and had many retailers under one roof.  What year is it, 1997? Trust me Telecom &#8211; people not knowing what Ferrit was was not the problem.  People knew all too well what it was and it was that public indifference to it that cut off your life support &#8211; you just simply weren&#8217;t to get another chance no matter how many small improvements you made.</p>
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