The Forgotten Middle

The Forgotten Middle

The Gym: Paying Not to Go * DellaVigna & Malmendier, “Paying Not to Go to the Gym,” American Economic Review 96(3), 2006, pp. 694–719 (members on flat monthly contracts averaged ~4.3 visits/month, >$17 per visit vs. a $10 ten-visit pass; monthly members slower to cancel than annual) [https://www.aeaweb.org/articles?id=10.1257%2Faer.96.3.694] * Full working-paper PDF (UC Berkeley) [https://eml.berkeley.edu/~sdellavi/wp/gymempAER.pdf] Loyalty Programs: The Forgotten Member * Bond Brand Loyalty — The Loyalty Report 2023 (U.S. consumers belong to ~18 programs, active in about half) [https://info.bondbrandloyalty.com/growth-of-customer-loyalty-strategies-raises-bar-on-innovation] * McKinsey — “Next in loyalty: Eight levers to turn customers into fans” (programs built around top-tier customers; active members spend ~10% more, redeemers ~25% more than inactive) [https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/next-in-loyalty-eight-levers-to-turn-customers-into-fans] The Design Principle: Perpetual Intermediates * Alan Cooper, About Face: The Essentials of Interaction Design — most users are “perpetual intermediates”; interfaces neglect the majority in the middle [https://www.goodreads.com/book/show/23597064-about-face] The Office Ribbon: Jensen Harris * Jensen Harris, “The Story of the Ribbon” (Microsoft Learn archive of his Office UI blog) [https://learn.microsoft.com/en-us/archive/blogs/jensenh/the-story-of-the-ribbon] * Jensen Harris, “No Distaste for Paste (Why the UI, Part 7)” — command-usage data from the Customer Experience Improvement Program (Paste ~11%; top 5 commands ~32% of all usage in Word) [https://learn.microsoft.com/en-us/archive/blogs/jensenh/no-distaste-for-paste-why-the-ui-part-7] * “The Most Frequently Used Features in Microsoft Office” — summary of Harris’s Word 2003 command data [http://googlesystem.blogspot.com/2008/02/most-frequently-used-features-in.html] * Harvard Business Review, “Why Microsoft Had to Destroy Word” (2009) — customers kept requesting features Office already had, just buried; the Ribbon was built to surface them [https://hbr.org/2009/06/why-microsoft-had-to-destroy-w] Product Mentioned * Website Reality Check — Johns & Taylor Services [https://websiterealitycheck.com]

The Review Revolution Reversal

The Research: Why Perfect Doesn’t Sell * Northwestern University Medill Spiegel Research Center — How Online Reviews Influence Sales (purchase likelihood peaks at 4.0–4.7 stars; “five stars is too good to be true”) [https://spiegel.medill.northwestern.edu/how-online-reviews-influence-sales/] * PowerReviews & Northwestern’s Spiegel Research Center — Five-Star Product Ratings Are “Too Good to Be True” [https://www.powerreviews.com/powerreviews-partners-with-northwestern/] * PowerReviews — How Fake Reviews Destroy Consumer Trust (only 6% of shoppers say a perfect 5.0 is ideal) [https://www.powerreviews.com/research/how-fake-reviews-destroy-consumer-trust/] The Trust Crisis * Pangram Labs — Three Percent of Front-Page Amazon Reviews Are AI-Generated [https://www.pangram.com/blog/ai-amazon-reviews] * Bazaarvoice — Shopper Experience Index 2025 (authenticity as the top shopping frustration) [https://www.bazaarvoice.com/press/bazaarvoice-shopper-experience-index-2025-as-ai-search-grows-in-popularity-ratings-and-reviews-feed-llms/] The Law * FTC — Final Rule Banning Fake Reviews and Testimonials (August 2024) [https://www.ftc.gov/news-events/news/press-releases/2024/08/federal-trade-commission-announces-final-rule-banning-fake-reviews-testimonials] The Fashion Nova Case * FTC — Fashion Nova Will Pay $4.2 Million to Settle Allegations It Blocked Negative Reviews (January 2022) [https://www.ftc.gov/news-events/news/press-releases/2022/01/fashion-nova-will-pay-42-million-part-settlement-ftc-allegations-it-blocked-negative-reviews] * FTC — Finalizes Order with Fashion Nova Over Blocked Reviews (March 2022) [https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-finalizes-order-fashion-nova-over-allegations-it-blocked-negative-reviews] * FTC — Sends Refunds to Consumers Affected by Fashion Nova’s Deceptive Review Practices (January 2025) [https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-sends-refunds-consumers-affected-fashion-novas-deceptive-review-practices] The Amazon Origin Story * Inc. — Jeff Bezos on why Amazon allowed negative reviews: “we make money when we help customers make purchase decisions” (quoting John Rossman’s Think Like Amazon) [https://www.inc.com/jeff-haden/jeff-bezos-says-1-thing-separates-successful-people-from-everyone-else-and-will-keep-you-from-giving-up-on-your-dreams-too-soon.html] Product Mentioned * Experience Helpdesk [https://experiencehelpdesk.com/]

The Hidden Cost of Disengagement

The Cost of Disengagement * Gallup — The World’s $8.8 Trillion Workplace Problem (State of the Global Workplace) [https://www.gallup.com/workplace/393497/world-trillion-workplace-problem.aspx] Employee Experience Drives Customer Experience * Glassdoor Research — The Link Between Glassdoor Reviews and Customer Satisfaction (Chamberlain & Zhao) [https://www.glassdoor.com/research/employee-customer-satisfaction/] * Harvard Business Review — Engaged Employees Create Better Customer Experiences (April 2023) [https://hbr.org/2023/04/engaged-employees-create-better-customer-experiences] * Harvard Business Review Analytic Services — The Impact of Employee Engagement on Customer Experience (report PDF) [https://hbr.org/resources/pdfs/comm/achievers/hbr_achievers_report_sep13.pdf] Costco Case Study * CFO Dive — Costco raises minimum hourly wage to $19.50 [https://www.cfodive.com/news/costco-raises-minimum-hourly-wage-20-compensation/742075/] * Macrotrends — Costco (COST) Market Cap [https://www.macrotrends.net/stocks/charts/COST/costco/market-cap] * The Motley Fool — Jim Sinegal on Costco’s “Promote From Within” Strategy [https://www.fool.com/investing/general/2012/06/21/jim-sinegal-on-costcos-promote-from-within-strateg.aspx] * Yahoo Finance — Nine Out of Ten Costco Members Renew [https://finance.yahoo.com/news/nine-ten-costco-members-renew-134101228.html] * A-Z Quotes — James Sinegal: “When employees are happy, they are your very best ambassadors” [https://www.azquotes.com/author/13642-James_Sinegal] Products Mentioned * Experience Helpdesk [https://experiencehelpdesk.com/] * Website Reality Check [https://johnsandtaylor.com/website-reality-check/]

The True Cost of Bad Customer Experience

What do a billion-dollar retail collapse, a broken app, and an abandoned shopping cart have in common? They’re all part of the same hidden bill, and most companies don’t realize they’re paying it until it’s too late.    In this episode of Marginally Better, Joe Taylor, Jr. breaks down the true cost of bad customer experience. Not as isolated mistakes, but as a slow, compounding erosion of trust that quietly drains revenue, loyalty, and brand value. From JCPenney’s infamous pricing overhaul to Domino’s brutally honest turnaround, this episode reveals a simple truth: the most expensive decisions businesses make are often the ones they never test—and the ones their customers never forgive.  Episode Links: * Forrester: US Customer Experience Index 2024 — A Quality Crisis [https://www.forrester.com/press-newsroom/forrester-2024-us-customer-experience-index/]  * Fast Company - CX scores hit a low, Forrester reports [https://www.forrester.com/blogs/us-cx-index-2024-results/]  * Sonos app redesign timeline [https://www.macrumors.com/2025/01/13/sonos-ceo-steps-down-after-app-redesign/]  * Sonos warns of app remediation costs [https://www.fastcompany.com/91259432/sonos-ceo-steps-down-following-a-disastrous-app-redesign]  * Baymard Institute - 49 Cart Abandonment Rate Statistics [https://baymard.com/lists/cart-abandonment-rate]  * J.C. Penney’s “Fair and Square” Pricing Strategy [https://www.hbs.edu/faculty/Pages/item.aspx?num=43132]  * Understanding J.C. Penney’s Risky New Pricing Strategy [https://hbr.org/2012/01/understanding-jc-penneys-risky]  * Was Ron Johnson right? [https://www.retaildive.com/news/was-ron-johnson-right/414481/]  * NPR — His Makeover Strategy In Shambles, J.C. Penney CEO Ron Johnson Is Out [https://www.npr.org/sections/thetwo-way/2013/04/08/176605624/his-makeover-strategy-in-shambles-j-c-penney-ceo-ron-johnson-is-out]  * J.C. Penney CEO Ron Johnson out after troubled tenure [https://money.cnn.com/2013/04/08/investing/ron-johnson-jc-penney/index.html]  * 5 Critical Errors That Triggered Ron Johnson’s Removal at JC Penney [https://chiefexecutive.net/5-critical-errors-that-triggered-ron-johnsons-removal-at-jc-penney/]  * Washington Post — J.C. Penney files for bankruptcy (May 15 2020) [https://www.washingtonpost.com/business/2020/05/15/jc-penney-bankruptcy-chapter-11/]  * Domino’s CEO Patrick Doyle: Tech with a side of pizza (Kai Ryssdal interview, Sep 25 2015) [https://www.marketplace.org/story/2015/09/24/dominos-ceo-patrick-doyle-tech-side-pizza]  * Restaurant Business Online — How Patrick Doyle changed Domino’s, and the restaurant industry [https://www.restaurantbusinessonline.com/leadership/how-patrick-doyle-changed-dominos-restaurant-industry]  * J. Patrick Doyle (career summary, with cited sources) [https://en.wikipedia.org/wiki/J._Patrick_Doyle]  *

The Repair Relationship Revolution

A century ago, companies deliberately made products that wouldn’t last. Today, that model is being dismantled—by regulators, by consumers, and by a new generation of businesses built around repair, not replacement. In this episode of Marginally Better, Joe Taylor, Jr. explores the repair relationship revolution—from sweeping right-to-repair laws reshaping global manufacturing to companies like Framework and Lodge building loyalty through products designed to last. It’s a story about more than hardware—it’s about how fixing what’s broken can create stronger customer relationships than replacing what works, and why the future belongs to businesses that design for longevity, trust, and connection. Episode Links: * Wikipedia — Phoebus cartel [https://en.wikipedia.org/wiki/Phoebus_cartel] * The Great Lightbulb Conspiracy [https://spectrum.ieee.org/the-great-lightbulb-conspiracy] * Lightbulb Cartel a Dark Spot in Lighting History [https://www.ecmweb.com/lighting-control/article/20899475/lightbulb-cartel-a-dark-spot-in-lighting-history] * Oregon Passes Right to Repair Law: First to Ban Parts Pairing [https://www.reinhartlaw.com/news-insights/oregon-passes-right-to-repair-law-first-to-ban-parts-pairing] * Oregon Legislature passes Right to Repair bill after four-year student effort [https://ospirgstudents.org/2024/03/08/right-to-repair/] * Oregon Legislature — SB 1596 Final Text (Chapter 69, 2024 Laws) [https://www.oregonlegislature.gov/bills_laws/lawsstatutes/2024orLaw0069.pdf] * Common rules promoting the repair of goods [https://eur-lex.europa.eu/EN/legal-content/summary/common-rules-promoting-the-repair-of-goods-and-amending-related-eu-legislation.html] * Incoming EU right to repair requirements: The key things every global manufacturer should know [https://www.fieldfisher.com/en/insights/incoming-eu-right-to-repair-requirements-the-key-t] * European Parliament — Right to repair: the EU's actions to make repairs more attractive [https://www.europarl.europa.eu/topics/en/article/20220331STO26410/why-is-the-eu-s-right-to-repair-legislation-important] * Right to Repair Europe — The state of Right to Repair in 2026 [https://repair.eu/news/the-state-of-right-to-repair-in-2026/] * Apple Support — Self Service Repair [https://support.apple.com/self-service-repair] * Apple to expand repair options with support for used genuine parts (April 2024) [https://www.apple.com/newsroom/2024/04/apple-to-expand-repair-options-with-support-for-used-genuine-parts/] * AppleInsider — Apple expands Self Service Repair to iPhone 17 lineup [https://appleinsider.com/articles/25/10/30/apple-adds-iphone-17-lineup-to-its-self-repair-program] * AppleInsider — iPhone 17e & M4 iPad Air parts now on Self Service Repair Store [https://appleinsider.com/articles/26/04/08/macbook-neo-iphone-17e-parts-now-offered-via-apples-repair-program] * The Global E-waste Monitor 2024 (UNITAR / ITU) [https://ewastemonitor.info/the-global-e-waste-monitor-2024/] * As electronic waste surges, countries look for answer [https://www.unep.org/news-and-stories/story/electronic-waste-surges-countries-look-answers] * Global E-waste Statistics Partnership [https://globalewaste.org/] * Framework's Series A-1 and Community Participation [https://frame.work/blog/frameworks-series-a-1-and-community-participation] * Framework raises $18m to move beyond modular laptop [https://www.eenewseurope.com/en/framework-raises-18m-to-move-beyond-modular-laptop/] * Framework Raises $18M In New Funding [https://www.phoronix.com/news/Framework-More-Funding] * PitchBook — Framework Computer 2026 Company Profile [https://pitchbook.com/profiles/company/466889-59] * Wikipedia — Framework Computer [https://en.wikipedia.org/wiki/Framework_Computer] * PCWorld — Framework Laptop 16 review [https://www.pcworld.com/article/2215545/framework-laptop-16-review.html] * TechSpot — Framework Laptop 16 (2025) Pros and Cons [https://www.techspot.com/products/laptops/framework-laptop-16-2025.313700/] * Everything Framework Just Revealed at Its 2026 Modular Laptop Event [https://www.geeky-gadgets.com/framework-next-gen-event-announcements/] * Five Years of Framework [https://frame.work/blog/five-years-of-framework] * Lodge Cast Iron — About Lodge [https://www.lodgecastiron.com/pages/about-lodge] * A Seasoned Family Business [https://familybusinessmagazine.com/engagement/education-development/seasoned-family-business/] * The Bitter Southerner — Lodge Cast Iron [https://bittersoutherner.com/lodge-cast-iron] * Lodge Foundry in South Pittsburg Cooks up an American Icon [https://tnhomeandfarm.com/tn-living/lodge-cast-iron/] * After 123 Years, Lodge Cast Iron is Still Family-Owned [https://www.americanmanufacturing.org/blog/after-123-years-lodge-cast-iron-is-still-family-owned-and-still-american-made/] * Lodge Manufacturing Investing $56M In South Pittsburg, TN Expansion [https://businessfacilities.com/lodge-manufacturing-investing-56m-south-pittsburg-tn-expansion] * Lodge Manufacturing Company to Expand Marion County Operations [https://tnecd.com/news/governor-lee-commissioner-rolfe-announce-lodge-manufacturing-company-to-expand-marion-county-operations/] * Wikipedia — Service Recovery Paradox [https://en.wikipedia.org/wiki/Service_recovery_paradox] * Service Recovery Paradox: A Meta-Analysis (de Matos, Henrique, Rossi 2007) [https://journals.sagepub.com/doi/10.1177/1094670507303012] * From service failure to brand loyalty: evidence of service recovery paradox (2025) [https://link.springer.com/article/10.1057/s41262-025-00380-5]