Is the ‘forever transaction’ business model ethical?
The "holy grail" of relationships with your customer can be tricky to achieve, and even more complex to uphold.
ROBBIE KELLMAN BAXTER: People ask me all the time if forever transaction business models are ethical. And I think the reason they ask me is because they're dealing with subscription fatigue right now. A lot of people are really frustrated with subscription business models for a few reasons. The first reason is what I call product market fit. In other words a lot of companies build subscription models that aren't very good business models requiring you to subscribe in order to access something that you only need one time, for example. Or bundling in a lot of stuff that you don't want and then requiring you to pay for it. So a lot of people feel like hey, I used to love this product and now I have to subscribe to it and I have to pay more and I'm not getting what I really need. That's the first problem and that creates a lack of trust between the individual and companies. The second thing is what I call subscription overwhelm which leads to subscription guilt which is they say something like this. I love this business model. I love this subscription. It's really great except I never use it.
And so I feel like I'm wasting money and, you know, the magazines are piling up on my coffee table and it makes me feel bad when I walk by it. Or there's this organization ClassPass which has a subscription to be able to go to any gym you want and take different kinds of fitness classes. And I'm not using my credits and then I'm wasting them. So then what ends up happening is the customer feels guilty and they cancel. So in some ways you're like well, that's not really the fault of the business because our business has great value and the customer told me it's not my fault. But ultimately that customer cancelled so it is your fault and it is your responsibility to figure out how to fix that. The third reason for this whole kind of subscription fatigue is the easiest to fix but the most evil, I think the most unethical which is hiding the cancel button.
A lot of subscription businesses make it really easy. It's kind of like the Hotel California. You can check out anytime you like but you can never leave. They'll make you only cancel on Tuesdays by phone, in person, with a physical letter. That does extend your subscription maybe for a month or two but it creates a lot of I guess the opposite of goodwill, a lot of mistrust, a lot of resentment and it ultimately eats into your brand equity. The way I feel is it's ultimately unethical. Who wants to work at a place that builds revenue by charging people for things that they don't want and wish they could cancel. So when it comes to ethics and building out a forever transaction there's a pretty weighty obligation on the part of the business owner, the business leader to create a model that is trustworthy so that the consumer can take off their consumer hat, put on a member hat, stop looking for alternatives and stop worrying about whether they're being treated fairly. And I have to say that not only is this ethical good behavior, it's also good business.
Because when you have a customer who feels like a member, who's stopped looking for alternatives, who's stopped comparing your offering with other people's offerings, and who has agreed to pay you on an automatic schedule, you have kind of achieved let's say the Holy Grail of business models.
- How can you build a subscription model that continues to satisfy your consumer while avoiding fatigue and potential ethical downfalls?
- According to business consultant and speaker Robbie Kellman Baxter, you must first determine whether your service really requires a subscription in the first place. And if it does, be careful not to overwhelm the customer, which can lead to subscription guilt.
- Trust is just as important. Hiding the cancel button from your customers might keep them around in the short term, but this ultimately eats into your brand equity.
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What is human dignity? Here's a primer, told through 200 years of great essays, lectures, and novels.
- Human dignity means that each of our lives have an unimpeachable value simply because we are human, and therefore we are deserving of a baseline level of respect.
- That baseline requires more than the absence of violence, discrimination, and authoritarianism. It means giving individuals the freedom to pursue their own happiness and purpose.
- We look at incredible writings from the last 200 years that illustrate the push for human dignity in regards to slavery, equality, communism, free speech and education.
The inherent worth of all human beings<p>Human dignity is the inherent worth of each individual human being. Recognizing human dignity means respecting human beings' special value—value that sets us apart from other animals; value that is intrinsic and cannot be lost.</p> <p>Liberalism—the broad political philosophy that organizes society around liberty, justice, and equality—is rooted in the idea of human dignity. Liberalism assumes each of our lives, plans, and preferences have some unimpeachable value, not because of any objective evaluation or contribution to a greater good, but simply because they belong to a human being. We are human, and therefore deserving of a baseline level of respect. </p> <p>Because so many of us take human dignity for granted—just a fact of our humanness—it's usually only when someone's dignity is ignored or violated that we feel compelled to talk about it. </p> <p>But human dignity means more than the absence of violence, discrimination, and authoritarianism. It means giving individuals the freedom to pursue their own happiness and purpose—a freedom that can be hampered by restrictive social institutions or the tyranny of the majority. The liberal ideal of the good society is not just peaceful but also pluralistic: It is a society in which we respect others' right to think and live differently than we do.</p>
From the 19th century to today<p>With <a href="https://books.google.com/ngrams/graph?year_start=1800&year_end=2019&content=human+dignity&corpus=26&smoothing=3&direct_url=t1%3B%2Chuman%20dignity%3B%2Cc0" target="_blank" rel="noopener noreferrer">Google Books Ngram Viewer</a>, we can chart mentions of human dignity from 1800-2019.</p><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDg0ODU0My9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY1MTUwMzE4MX0.bu0D_0uQuyNLyJjfRESNhu7twkJ5nxu8pQtfa1w3hZs/img.png?width=980" id="7ef38" class="rm-shortcode" data-rm-shortcode-id="9974c7bef3812fcb36858f325889e3c6" data-rm-shortcode-name="rebelmouse-image" />
American novelist, writer, playwright, poet, essayist and civil rights activist James Baldwin at his home in Saint-Paul-de-Vence, southern France, on November 6, 1979.
Credit: Ralph Gatti/AFP via Getty Images
The future of dignity<p>Around the world, people are still working toward the full and equal recognition of human dignity. Every year, new speeches and writings help us understand what dignity is—not only what it looks like when dignity is violated but also what it looks like when dignity is honored. In his posthumous essay, Congressman Lewis wrote, "When historians pick up their pens to write the story of the 21st century, let them say that it was your generation who laid down the heavy burdens of hate at last and that peace finally triumphed over violence, aggression and war."</p> <p>The more we talk about human dignity, the better we understand it. And the sooner we can make progress toward a shared vision of peace, freedom, and mutual respect for all. </p>
A new study shows our planet is much closer to the supermassive black hole at the galaxy's center than previously estimated.
Arrows on this map show position and velocity data for the 224 objects utilized to model the Milky Way Galaxy. The solid black lines point to the positions of the spiral arms of the Galaxy. Colors reflect groups of objects that are part of the same arm, while the background is a simulation image.
Apple sold its first iPod in 2001, and six years later it introduced the iPhone, which ushered in a new era of personal technology.
With just a few strategical tweaks, the Nazis could have won one of World War II's most decisive battles.
- The Battle of Britain is widely recognized as one of the most significant battles that occurred during World War II. It marked the first major victory of the Allied forces and shifted the tide of the war.
- Historians, however, have long debated the deciding factor in the British victory and German defeat.
- A new mathematical model took into account numerous alternative tactics that the German's could have made and found that just two tweaks stood between them and victory over Britain.
Two strategic blunders<p>Now, historians and mathematicians from York St. John University have collaborated to produce <a href="http://www-users.york.ac.uk/~nm15/bootstrapBoB%20AAMS.docx" target="_blank">a statistical model (docx download)</a> capable of calculating what the likely outcomes of the Battle of Britain would have been had the circumstances been different. </p><p>Would the German war effort have fared better had they not bombed Britain at all? What if Hitler had begun his bombing campaign earlier, even by just a few weeks? What if they had focused their targets on RAF airfields for the entire course of the battle? Using a statistical technique called weighted bootstrapping, the researchers studied these and other alternatives.</p><p>"The weighted bootstrap technique allowed us to model alternative campaigns in which the Luftwaffe prolongs or contracts the different phases of the battle and varies its targets," said co-author Dr. Jaime Wood in a <a href="https://www.york.ac.uk/news-and-events/news/2020/research/mathematicians-battle-britain-what-if-scenarios/" target="_blank">statement</a>. Based on the different strategic decisions that the German forces could have made, the researchers' model enabled them to predict the likelihood that the events of a given day of fighting would or would not occur.</p><p>"The Luftwaffe would only have been able to make the necessary bases in France available to launch an air attack on Britain in June at the earliest, so our alternative campaign brings forward the air campaign by three weeks," continued Wood. "We tested the impact of this and the other counterfactuals by varying the probabilities with which we choose individual days."</p><p>Ultimately, two strategic tweaks shifted the odds significantly towards the Germans' favor. Had the German forces started their campaign earlier in the year and had they consistently targeted RAF airfields, an Allied victory would have been extremely unlikely.</p><p>Say the odds of a British victory in the real-world Battle of Britain stood at 50-50 (there's no real way of knowing what the actual odds are, so we'll just have to select an arbitrary figure). If this were the case, changing the start date of the campaign and focusing only on airfields would have reduced British chances at victory to just 10 percent. Even if a British victory stood at 98 percent, these changes would have cut them down to just 34 percent.</p>
A tool for understanding history<p>This technique, said co-author Niall Mackay, "demonstrates just how finely-balanced the outcomes of some of the biggest moments of history were. Even when we use the actual days' events of the battle, make a small change of timing or emphasis to the arrangement of those days and things might have turned out very differently."</p><p>The researchers also claimed that their technique could be applied to other uncertain historical events. "Weighted bootstrapping can provide a natural and intuitive tool for historians to investigate unrealized possibilities, informing historical controversies and debates," said Mackay.</p><p>Using this technique, researchers can evaluate other what-ifs and gain insight into how differently influential events could have turned out if only the slightest things had changed. For now, at least, we can all be thankful that Hitler underestimated Britain's grit.</p>
A biologist-reporter investigates his fungal namesake.
The unmatched biologist-reporter Tomasz Sitarz interviews his fungal namesake, maślak sitarz – known in English as the Jersey cow mushroom.