Tag Archives: Marketing and Advertising

Google cars – Sheer Driverless Pleasure?

Google driverless car operating on a testing path

Google driverless car operating on a testing path (Photo credit: Wikipedia)

Just a few years ago, the concept of a driverless car was nothing more than science fiction. Today, it is fast becoming reality with Google cars having already covered over 500,000 miles (800,000 km) without any accident while under “robot control.”

Of course, it’s not quite as simple as it sounds – the Google cars technology’s still very much in its infancy and the route the robot-controlled vehicle will follow has to first be mapped out with a human at the wheel. It also can’t, yet, cope with snow or heavy rain, while leaving a highway still needs human intervention, too.

However, with the rapid pace of technology development, it’s worth pausing to think about the impact of driverless vehicles – thanks to the revelation of Google cars, on our lives as it’s likely to be an everyday occurrence before we know it. We have the processor power and the sensor technology to make this feasible.

Robots don’t fall asleep, and their attention doesn’t wander. They don’t feel compelled to text while driving, or to show how good their driving is after a few drinks. This is sure to mean fewer accidents, so less people killed and injured. Apart from the human benefits from Google cars, this has to mean less call on emergency services and lower insurance premiums – welcome relief from the huge rises over the past decade.

Of course, the panel-beating, spare parts and steel industries might not welcome the decrease in fender-benders, but the rest of us will.

Going out for dinner will no longer mean taking a taxi home, unless you have a ‘Designated (non-drinking) Driver’ present – Google cars are capable of driving you back home. What will the impact on the taxi industry be (GPS mapping might need to be a little better, of course), and what will the impact be on valets when cars can park themselves while they wait for you?

Thinking further on this – what impact on those huge, expensive parking lots near city centres when your car can slowly drive around looking for something convenient and you can text it to come and find you in, say, 15 minutes? Would road building rates be able to be slowed, too, as robot-controlled vehicles can drive so much closer together, meaning more cars in any given space. Speeding tickets and parking tickets would also be a thing of the past – would anyone really shed a tear for traffic wardens?

But let’s move away from the Google cars concept for a moment. What about the trucking industry? Roads are clogged with heavy-duty vehicles delivering goods from manufacturer to wholesaler, to retailer and to the end-user. Imagine a time when you could have fleets of driverless trucks – owners would get far better utilisation from vehicles that don’t need drivers to rest or sleep, longer routes could be planned and busy roads could be navigated only in quiet times (3 am, for example) where necessary.

Of course, having a robot-controlled car is one thing – having a robot-controlled 50 ton, 18-wheeler is likely to spark a good deal more concern. An intermediate step may be to use remote drivers (‘drone technology’)  until the vehicle reaches the highway and meets up with other trucks, that can then travel in convoy under control of a single remote driver, or even a lead human driver controlling a number of trucks behind.

What is clear is that motor manufacturers will increasingly be moving away from “Sheer Driving Pleasure” as a strapline, and be looking to features such as entertainment, comfort and – for long journeys – even sleeping facilities, perhaps. Perhaps Google cars are by no doubt a forecast of how the future looks for the motor vehicle industry.

Perhaps sleeping in the car will become a status symbol…

Note: I first posted this on the Business Connexion blog on 8 Jul.

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Who Controls Your Brand?

social media compain
Image by Laurel Papworth laurelpapworth.com and Gary Hayespersonalizemedia.com

The old order is being turned on its head; companies used to being in control of their customers and their brand are now finding customers are wresting control from them and that they need to adapt or face obscurity.

The enabler behind this is, of course, social media. Customers are now able and willing to discuss their experiences with friends and followers around the world, and companies ignore them at their peril. And yet, it seems to be more common for companies to ignore what is being said on Twitter, on Facebook, on LinkedIn, on YouTube, and on all the other social platforms around the world.

Even though some two thirds of Fortune 500 companies have a Twitter account, and more than half have Facebook and YouTube accounts, they’re just not listening – reports indicate that 43% of all companies have never responded to a single Tweet, while only a quarter of companies respond to a comment posted on their Facebook page.

All this does is reinforce the view that companies are not interested in their customers. Better to have no presence at all than a presence where you don’t respond (the same goes for “customer-service” telephone lines and email addresses!).

However, the fact of the matter is that nowadays you HAVE to listen to what your customers are saying and you MUST respond. That’s the best way to turn customers into brand advocates – and isn’t that what every business wants? What’s more, it’s worth remembering that your products and services are only as good as your customers think they are and that they’re prepared to pay for; it’s much better to know they’re unhappy sooner than later, so you can fix the problem.

Word of mouth has always been the strongest way for businesses to grow – or shrink – and all that social media is doing is enabling this process to operate more quickly, and a lot more widely.

Companies that have embraced this – think Zappos and Starbucks (or Threadless, the T-shirt company that went from startup in 2000 to $30M in revenue last year) – are rewriting the rules for customer service, marketing and the way they’re perceived. Ask Comcast, who went from ignoring social media to an advocate and transformed the company’s image.

While the positive impact is clear and quick to see, the negative impact on companies that do it wrong will take longer to be really apparent – they suffer a slow, steady decline in brand image with all that follows from this – so the good news is there’s still time to adapt, but they shouldn’t wait too much longer.

As Jeff Bezos said, “Your brand is what people say about you when you’re not in the room.” If you’re not in the social media room, you’ll never know – and what you don’t know, you can’t fix.

By embracing social media, having conversations with your customers and other stakeholders, you will greatly strengthen your brand and your company.

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The End of Cash?

Image representing iPhone as depicted in Crunc...
Image via CrunchBase

It’s interesting to see the number of recently introduced products coming to market which are designed to, in effect, remove the need for cash.

One that has garnered particular attention recently is, of course, Square. This comprises a small application that resides on your iPhone (or iPad, iPod Touch) or Android phone, together with a little reader that plugs straight into the audio input jack of the phone and turns it into a personal credit card payment machine that will allow the user to accept credit card payments from anyone for a small fee (typically 2.75% + 15c). With no costs for set-up, application or card reader this is sure to change the game for those tens of millions of small businesses, traders and professionals that have, until now, fallen outside the electronic payment net because they are too small for the card companies to serve cost-effectively.

But Square is not alone – Obopay allows anyone with a  mobile phone to set up an Obopay account and, for just 25-50c (plus 1.5% if you’re using a credit card to fund your account) send money – in other words, make a payment – to anyone else with a mobile phone, whether or not that person already has an Obopay account. Again, there are no setup costs.

And then there’s Intuit with its GoPayment service that also enables credit card payments from a mobile phone – this time with a Bluetooth reader – at a cost of 1.7% + 30c per transaction, although this service does have a monthly service cost of $12.95 attached to it (I wonder for how long, though, given the competition above).

Doubtless there are many others, too, either in stealth mode at present or on the drawing board.

What’s more, these systems allow you to build purchase histories by customers, offer loyalty programs and great levels of service more simply than the straightforward cash systems did – so even the smallest businesses can step up their marketing at little or no cost.

At present, all these products only work for you if you’re a US-resident/business, but it’s only a (hopefully short) matter of time before they go global and the way of transferring value changes forever from cash to electrons. No more looking for change, worrying about how the currency in a new country you’re visiting works, being concerned whether anybody’s watching as you withdraw a large amount of cash from an auto-teller…. And, of course, if you’re a small business, no more concerns about having the right change for those large notes that auto-tellers like to give, about the value sitting in your till, or being worried when taking your cash to deposit it.

It’s going to be interesting to see how society changes over the next generation as we move from cash altogether. Will the nationalistic bonds to a currency (and the resulting issues of payments from/to different countries and with travel) be removed, and could we find a common global currency?

And, of course, we’re seeing the continued drive for the mobile phone to be less a telephone and more a personal digital assistant in every way – clock, alarm, calendar, address book, diary, music player, radio, newspaper, camera, voice recorder and now, wallet. As an aside, it’s interesting to see how many of the Generation Ys don’t wear watches – their phones tell them the time. Has the watch industry got an answer to this, its potentially biggest threat?

We’re at a very interesting point in the 5000 year evolution of money as we know it. Will it disappear completely as a physical object in the next 20 years?

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Twitter – The “Next Big Thing” for Business

Image representing Twitter as depicted in Crun...
Image via CrunchBase

With Twitter set to pass the magic 100 Million user mark later this month, or early May, and the company having been valued at around a Billion Dollars last year, it’s moved from the realms of novelty. So, should business sit up and take note; is it the “Next Big Thing” as a business tool?

Speaking with business leaders and marketers, one gets mixed responses – the enthusiastic advocates on the one hand, and those that hope it will fade away as it can potentially damage their company, they believe, on the other.

There’s no question that any public forum can be used by people to disparage, or worse, a company, but is that a reason to abstain from that forum, or should one take the opportunity to embrace it and counter any adverse remarks? After all, unhappy customers that are turned around tend to become the most loyal advocates…

Others look at Twitter and ask whether 140 characters is really enough for any sort of meaningful dialogue with customers and dismiss it on this basis. But in our information-overloaded world, is brevity not a blessing?

Properly used, there is no question in my mind that Twitter really can become a significant business tool:

  • Customer service – probably the first Twitter application area to be embraced, companies like Southwest Airlines, Staples and Zappos have found it invaluable to track unhappy customers, respond quickly and show a great service ethos.
  • Sales leads – of course, great customer service leads to sales, but many more companies, like Dell, Sony and Starbucks are using Twitter to promote products; in fact an article last month reported Sony measuring over £1 Million in sales directly attributable to its Vaio Twitter account.
  • Promotions – an extension of the sales leads application is using Twitter for promoting special offers to followers. As the integration of GPS technology with phones increases, these could even be location and time specific, making them highly targeted.
  • Product feedback – companies are often accused of making products that customers don’t need, or of not including “obvious” features. Twitter can give a window for listening to the needs and views of a very wide customer base.
  • Order tracking – an area I’ve yet to see, but one I think is an obvious one: imagine being able to Direct Tweet to a courier company and get an automated response as to where your special delivery is in the system…

In fact, the possibilities are endless – limited only by imagination. With Twitter, companies have access to an incredible mass direct marketing tool without the dangers of being considered spammers – people would simply unfollow those they consider annoying – and one which can provide real-time, real-person feedback on an incredibly wide range of issues.

Twitter, I firmly believe, is poised to be the “Next Big Thing” for business, and companies that ignore it do so at their peril.

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Customer Loyalty – is there a Right Kind?

Your Customer's Emotional Experience
Image by 33 Interactions via Flickr

We talk a good deal about customer loyalty nowadays, but do we really understand it and know how to gain it?

The “1 to 1” gurus, Peppers & Rogers, define three sorts of Customer Loyalty:

  • Emotional Loyalty – this is about how customers feel about your brand;
  • Behavioural Loyalty – the way customers respond, and whether they actively seek to do business with you;
  • Profitable Loyalty – those customers that help you to make money.

Emotional Loyalty was the first level of understanding of the concept of customer loyalty, with early marketing designed to appeal to the emotions and build a bond with customers in this way. However, it became apparent that while customers might feel emotionally close to your brand, that didn’t necessarily mean they would buy from you, or do so on a regular basis.

This led to the concept of Behavioural Loyalty where marketers sought to find ways of bringing the customer to them to do business, and do so regularly. Of course, in many cases Emotional Loyalty was ignored as the focus was on getting the customer to purchase from you.

More recently, with the advent of tools to analyse customer purchases and overall costs more accurately, companies are discovering that on average only around 20% of customers are profitable for a business, with 60% being around break-even and a further 20% losing the company money, so they then focused on trying to find ways to increase the percentage of profitable customers and either remove the unprofitable ones or make them profitable.

However, isn’t the key really to do the first two well and use this to leverage the third? It really is not about focusing on just one aspect of loyalty, but rather about understanding how all three interact and driving your business accordingly.

On the emotional level, you need to be clear about what your brand stands for and ensure that you deliver what you say you will do – never over-promise and under-deliver as that is the quickest way to kill your brand’s emotional loyalty.

To keep your customers coming back – and we all know that repeat customers are best – your marketing must understand their buying behaviour and ensure that you continue to interact with them to capture the maximum share of their wallets. The Lifetime Value concept is key here.

But, of course, you must ensure you do so profitably – and this is not just about margin, but about the total costs of doing business with each customer. A high margin customer can still result in a loss for you if, for example, they are consistently returning items for credit, needing expensive support resources, paying late, and so on, while a low-margin customer who pays cash and never needs support can be nicely profitable. Be clear about where the costs are for each customer.

A great example of a company that does all three well is Amazon: just look at the brand recognition, the fact that you know they it’s a reliable supplier of books, DVDs, etc., at good prices, with a no-quibble replacement policy, and then see how it constantly offers you new items based on your buying behaviour. Amazon’s systems are not only providing its marketing engine with ongoing offers tailored to your likes, but make purchasing easy, so its internal costs are low as there is minimal need for support.

But, after all, if you really think about it, isn’t this what business is all about anyway: getting customers who feel good about doing business with you as you provide a consistently great customer experience, coming back over and over again to make purchases that are profitable for you?

So, to answer the question as to whether there is a Right Kind of Customer Loyalty, the answer is clearly, “No.” To be successful you need to ensure you are focusing your business on all three – Emotional, Behavioural and Profitable. And, in the famous words of a song first made popular in the mid 60s, “Do What You Do, Do Well.”

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How Can the Print Media Survive?

As we approach the end of 2009, this question becomes all the more relevant. With a full year of advertising revenues down, subscriptions and renewals declining and staff being laid off to cut costs, there have to be questions as to how the publishing industry can survive.

One thing is certain – the business model of old will have to change. Thanks to technology, people today are relying on instant news – yesterday’s news (as found in the printed newspaper) or last week’s news (as found in weekly magazines) is no longer a saleable commodity, and if the public don’t want to read it, advertisers won’t pay to advertise in it.

Of course, Rupert Murdoch’s recent comments about charging for access to his news online and preventing Google from finding his stories have further fuelled speculation as to the future of the printed word.

However, far from fearing the new technologies, publishers should be embracing them – after all, do the new technologies not extend the potential reach of any publication or broadcast platform to the entire globe?

What’s needed, and what people are looking for, in this info-saturated world is not just more information, but more useful, focused and targeted information. Instead of newspapers all trying to produce the same news for the same geographic audience, focus. That’s how Wall Street Journal and Financial Times, for example, have been able to charge for much of their content – they focus on the news that businessmen need now. If a publisher can provide knowledge, as opposed to just information, people will pay for it.

Just as general broadcast TV has given way to cable/satellite subscription services, providing more focused channel selections, so should publishers look to provide focused services that people will pay for. What’s more, such focused audiences provide a richer platform for advertisers.

I’m not for one moment suggesting that printing is dead – at least not for the foreseeable future. Like just about everyone else I speak with, there’s something about being able to read the printed word on paper that is far too appealing to me. A combination of convenience, feel, smell, I suppose. What I am suggesting is that publishers need to use technology to complement their print editions.

Knowledge has a shelf-life, and can be printed for future reference purposes (witness my stacks of magazines – National Geographic, Fast Company, Fortune, Plane & Pilot, Travel & Leisure, etc.). News, or information, is immediate and best consumed quickly – and this is where the electron should play its part (whether Internet or Broadcast). But, again, there’s no reason electronic media should not drive its audience to print, and vice-versa. I see them as, ideally, complementary rather than simply competing.

News media, rather than cutting journalists, should seek out the best they can find and encourage them to provide knowledge as well as information. Magazines should give tantalizing glimpses of what they offer to an online audience, while encouraging them to subscribe to the printed word (after all, for example, aren’t the images in a National Geographic magazine so much better than those online?). Broadcast media should encourage audiences to seek out more information than they can cover in the broadcast, driving audiences online and to print for this knowledge. And, of course, printed media should not be shy of encouraging readers to enrich their knowledge through broadcast segments, internet updates and the like.

We talk about mankind’s knowledge increasing at an exponential rate, but I suspect that much of this is just the same bits of information being repeated over and over again. We have the tools for a much richer information and knowledge environment and we should use them.

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Social Networking in Business – Good or Bad?

One of the most vigorously debated issues today is the place of Social Networking in the workplace:
• Should companies be using Social Networking in their marketing mix?
• Should staff be allowed access to Social Networking while at work?

Much of the debate stems from a lack of understanding of what Social Networking is all about and how it should be used, or not used. Many people, in fact, still equate Social Networking with inane information about where somebody is currently sitting doing some introspective navel-gazing, whereas it can – and should – be a highly effective medium for raising the profile of the business, encouraging interaction with all stakeholders and generally enhancing its position in the market.

A great example here is Twitter. While there has been much attention given to an August study from Pear Analytics suggesting that only 8.7% of all Tweets pass along value, the fact is that this misses the point of what a tool like Twitter can really be used for in a business marketing environment. It could, for example, be a wonderful way for customers to get quick status updates on service issues (Direct Tweet the Job Number to your Service Dept) or to see where a shipment is (Direct Tweet a Waybill Number to your Shipping Dept). What about having special-interest customers following a particular product group in your company for news on that product and, possibly, special offers? In fact, the uses for this sort of interaction are limited only by imagination…

Facebook, too, is not simply a tool to show who was drinking too much at the last party. Rather, in the right hands it becomes a great way to promote your business to a wide audience and to gain a set of “Fans” who, by their very presence, are opt-in customers for your marketing efforts. This can be a direct, company page where you share information on your company (or simply a specific product group within your company) and encourage feedback from your “Fans” or can be a more subliminal way of getting your company noticed through making available information of more general use such as the (very topical for this article) Social Media for Small Business set of guides published by Dell.

Of course, if you’re going to open yourself up for public feedback with systems like Twitter and Facebook, it’s essential that you have somebody monitoring your name/page and responding to the inevitable negative comments that will crop up from time to time – thereby turning negatives into easily-seen positives.

Then there are tools like LinkedIn – a great way to find people for your business and to manage your own business profile for those looking at potentially working with you (yes, prospective employees do research your company to see what is out there!).

By tying all of this together with your own Social Networking platform of customers, etc., you can promote your business, conduct online training or product releases, run polls to test issues, manage events and generally make your customers feel part of “your family.” What’s more, you no longer have to contend with outdated mailing lists as your “fans”/customers keep their information updated for you…

So – in answer to the question as to whether companies should be using Social Networking in their marketing mix, an emphatic YES. The secret is to define your objectives and utilise the appropriate tools, remembering, too, that these will evolve and change over time.

And as for the second part of the question – whether employees should have access to Social Networking sites – if this is a part of your marketing mix, your employees need to be a part of it, too. Where there is evidence of individual abuse, as will happen (just as it does with the telephone, coffee breaks, etc., etc.), action against those individuals can be taken – it’s just a question of the right level of monitoring and control, particularly as the lines between work time and leisure time blur in this connected world.

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