The article was written by Jon Samsel and first published in Buttom Up—The Magazine for the High-Tech Start-Up, in May 1999, when forward-thinking Fortune 500 companies had buttons like this on their websites. 
The Groundhog Day Phenomenon: A Lesson in Customer Convenience
If we can assume that online customers demand something more from a company doing business on the web, why is it that so many companies put so little effort into getting to know what their online customers need? What’s so hard about identifying a site visitor, listen to what they have to say about conducting transactions online, and delivering an online experience that meets those expectations?
Two words explain this phenomenon—power shift. Most companies till placate their customers rather than rather than treating them like business partners. That’s understandable. Businesses are not used to interacting with their constituents any other way. But technology has empowered the consumer to interact with a company across many mediums in ways they have always wanted to. This shift in power from companies making decisions about what’s best for a customer to customers demanding that role for themselves makes an online transaction much different from the same experience occurring offline. Old venues push, sell or haggle to preserve some control over the customer’s impulses, questions or anxieties. In a connected economy, businesses respond to customers’ desire for information, then enable rather than control the eventual interaction.
This doesn’t mean that companies like Intel need to dismantle its manufacturing plants, or Barnes and Noble its bookstores. It does mean they need to respond to customer’s desires to also have access to products and services online. Consumers do show strong preferences for conducting certain transactions—like buying books or computer equipment—or conducting other business such as procuring office products, paying bills, trading securities, or booking travel tickets—electronically, rather than in person or over the telephone. Electronic commerce and online self service enables individuals to do what they want, when they want to. It makes things convenient.
Convenience seems to be a consistently underrated commodity. One reason that very sophisticated businesses have underestimated the appeal of the internet is that they do not fully appreciate the value of convenience. Consumers who prefer online interaction do so largely because it takes less time to do than do alternative venues. They also enjoy the 24/7 storefront aspect of ‘anytime-anywhere’ web service. And as the internet evolves, web sites will become even more user-friendly, allowing consumers to spend their time even more efficiently and effectively than with offline mechanisms.
In the 1993 feature film comedy Groundhog Day, Bill Murray plays a reporter named Phil Connors who travels to small-town America–Punxsutawney, PA.—to do a story on the infamous Punxsutawney Phil, an overweight groundhog who every year informs the nation whether or not spring will arrive early. Connors reports on the story and somehow manages to survive the day. But something strange happens during the night. Upon awakening the next morning, he discovers that it’s Groundhog Day all over again. It seems he’s trapped in some type of time warp where he’s forced to relive the same day over and over. Each day, the townspeople greet Connors as if he were a stranger, even though the man spent time chatting and interacting with them the previous day. The redundant, interpersonal exchanges aggravate Connors to no end—turning him into a frustrated, angry and suicidal man.
Many of today’s businesses are doing the same things to their customers—they treat them like strangers. This only serves to alienate, frustrate and inconvenience them.
Let’s take this real-world story for example. Our tale begins with a woman who walks into a bank and tells the new accounts manager she’d like to take out a loan. The manager asks the woman to fill out a loan application (a legal-length document that takes her fifteen minutes to complete. Even though the woman has been a customer of the bank for over 10 years and all her personal information is on file already, the woman has no choice but to complete the paperwork. The woman is then told that the bank will call her once it’s had a chance to process and review her loan request. The manager and the woman shake hands and the woman exits the bank.
Instead of waiting for her bank to call, the woman decides to log onto an online bank where she submits an electronic loan application that takes her only a few minutes to complete. The online bank doesn’t need the woman to submit a 10 page application because it has developed an e-commerce engine that pings various third-party databases to append data automatically to the woman’s profile. With little effort, the online bank has just provided the woman with higher customer service than the bank she’s been doing business with for the past 10 years. And, seconds after submitting her online loan request, the woman receives two replies—one via email and one via text message on her iPhone—her loan has been approved! The woman accepts the loan terms with the click of a mouse and the funds are wired into her bank account within a few days.
One week later, the woman gets a call from her regular bank. “I’m happy to inform you,” offers the cheery manager, “that your loan has been approved.”
The woman replies rather dramatically. “I’m happy to inform you that you’re no longer my bank.”
This good humored anecdote is meant to drive home a point. As the internet decentralizes brick-and-mortar industries such as insurance, financial services, travel and real estate—in additional to lines of business such as marketing, sales, manufacturing and distribution—businesses must adapt to the growing expectations of their customers if they hope to keep them. The internet has forever changed what people expect from companies they do business with. Consumers can now demand that businesses treat them more like partners rather than pawns in a rigid, inflexible relationship.
In Groundhog Day, Bill Murray’s character vents his frustration in a way which mirrors customers stuck doing business with companies who still don’t ‘get’ the internet.
“What would you do,” Connor asks, “if you were stuck in one place and every day was exactly the same, and nothing that you did mattered?” It’s a quote from a movie but it could easily be attributed to a frustrated bank customer, a novice home buyer, an angry computer purchaser, or a befuddled insurance shopper.
The Groundhog Day phenomenon—treating customers the same old way, day after day—is a losing proposition. Businesses who insist on managing their patrons and prospects in this manor risk losing the one commodity they’ve always counted on—consumers without choices.