Friday, December 21

Looking For Newness: You Could Be

For every advantage big established companies have in the field today, they have some disadvantages too. Part of the problem is newness or, more precisely, the lack of newness. They just do what they do.

Even if they do what they do well, they have a disadvantage on the newness scorecard and it's not only cosmetic (as in a new advertising campaign). It has to do with what they are doing or aspiring to do that conveys a sense of urgency and excitement. But more importantly, there is a psychology to it all.

A steady stream of newness helps make everything worthwhile. 

The biggest cliche in business circles (and sometimes individual lives) is that everything is going well or good, real good. Few people ever offers and specifics. They treat the entire conversation as a string of obligatory niceties.

"How are you doing?"

"Fine, you?"

"Good. How's business?"

"Oh, you know. Moving along."

"Anything new?"

"No, not really."

If zombies could talk, this would be their conversation. It's frightening and pathetic all at once while explaining why zombies have resurfaced as leading paranormal lore. We're terrified they might be us.

The problem with many businesses, even startups after a surprisingly short time, is they all gravitate toward the same. They experience a tremendous surge of elation before falling into routine or boredom. Complacency is the same thing with just another name. Newness tends to be inspired.

The three paths to prevent zombification. 

There might be more, but three is enough to illustrate the point. The businesses that are most susceptible to boring either tell it all, have nothing to tell, or are too busy shrinking themselves into nothingness. The objective is to do the opposite without killing yourself.

Initiate one new thing every month. While this is scalable to company size, the point is to make it manageable. Having even one new thing (with a definite beginning and end) can ensure your company is always moving forward. It's all right if it overlaps other months. It's the start that counts, especially if you can break up one project into several milestones.

Don't blurt out every idea today. It's one of the hardest things for startup businesses to manage. They want to share every product, service and success story on the front end. Share inspiration in little bits and pieces to show progress rather than sharing everything with nothing new to share for months and months. (Interestingly enough, social media almost demands constraint because several months of nothing feels like an eternity.)

Bring more to life than you kill. Whether or not there is an economic recovery in progress, many businesses have become too used to the idea of cutting back. Even when cutbacks or putting things on hold becomes a primary objective, companies and organizations cannot afford to kill more than they create — even if that means creating while cutting back. Newness can come in efficiencies too.

To recap, companies and organizations can plan initiatives to phase over the course of a year (phased in to prevent overload and burnout), show restraint in communicating anything until it is relevant (even if some of the work is already done), and always plan to create more newness than they kill.

The latter is important, especially in light of how many organizations I have seen kill off programs without replacements. Doing so almost always creates the impression of surrender while demoralizing employees and board members at the same time. Worse, even if the organization attempts to salvage a program later, resurrection (especially at 50 percent) will only reinforce that they let something go.

The same holds true for individuals. Musicians are always working on the next track. Artists are always working on the next work. And authors are at least thinking about the next book. It's how they keep their audiences engaged — something new is always on the horizon.

In fact, it doesn't even have to be as lofty as all that. Newness can be big or little, long or short term. The "what" doesn't matter as much as the continual "when." People like 'newness' news, especially the good kind. Almost anything might work (or ask your kids for some vicarious newness), just as long as you don't have to bore people by saying fine, good or the same old thing. Do that too often and they might not even bother to ask.

Wednesday, December 19

Blowing Up Instagram: Facebook

If you ever wanted to test against the fragility of a social network, Instagram is the photo sharing social network to watch. Facebook, which is well known for overreaching on some terms and privacy issues, has decided to claim ownership rights on everything members upload and share across Instagram.

Instagram, which was one of the few apps worthy of review in 2011 (pre-Facebook) on our alternative review site, received a respectful opening score before any of the other bells and whistles it has added since. We gave it 5.2 on our alternative scale, which would be right around 7 or 8 on a non-alternative 1-10 scale. It rated high because it revamps the artistic fun associated with Polaroid cameras for the modern age, using digital data instead of the integral film commonly associated with Polaroid photos.

So what changed? Instagram via Facebook is now asking for unspecified future commercial use of people's photos, which means (as the article states) a hotel in Hawaii can use your Instagram photos if they pay Facebook. The member won't receive any money. They won't receive any credit. They won't even receive notice.

What will the Instagram member get? A whole lot of headaches, advertisers too.

One has to wonder about the logic of such service changes, especially because it opens up a steady stream of problems even if members don't care. The worst of them, even for Facebook, is that this change of policy makes them a publisher and not a sharing service, culpable for the images people post.

But there are other problems too. The very idea that one day an Instagram member might see their photo in a commercial advertisement without compensation or notification is flawed. Given that most photographers would claim copyright infringement before realizing they signed away their rights on Instagram, I would advise any my clients to avoid purchasing pics via such a pariah policy.

In fact, Instagram makes it all especially risky because there are thousands of bands, authors, and artists that have turned to Instagram as their preferred photo sharing tool. Given their struggles with preserving copyrights in the digital age, it doesn't seem plausible they can afford to support a service that claims ownership of concert shots and album designs or artist proofs and dust covers. I just don't see it.

Amateurs will have plenty to worry about too. Their kids could become the poster children for anybody and everybody Facebook decides to the sell content to. In some cases, it puts kids even more at risk. In other cases, it will be even more creepy in the hands of some questionable advertisers buying the rights.

A speculative analysis of why Facebook made this logic leap. 

While Facebook/Instagram hadn't made a public statement about the policy changes, one could assume that the logic leap was made because Facebook makes similar claims on content shared to Facebook. Along with this precedent, people have largely ignored the problems with the Pinterest policy too.

What these two policies have taught social networks is that once people become attached to a service, they tend not to care and outright ignore any policy changes. They give up their privacy. They give up their rights. They give up everything (as long as they can use the service). They just don't care.

Except in this case, Facebook seems to have made a fatal flaw in assuming people would treat Instagram policy changes the same. First and foremost, unlike Facebook, there isn't a compelling reason to use Instagram given all of the other photo sharing networks in existence that don't claim ownership.

While Instagram is preferred, there are plenty of alternatives. Even the effects features have since been duplicated across a wide variety of apps. All anyone has to do is use them to achieve the same result.

This makes or an interesting case study in that unlike Facebook, which has achieved a must-have status in perception if not reality, Instagram still feels optional despite the $1 billion price that Facebook paid. It also makes an interesting case study because Facebook is being forced to continually prove its own stock price while illustrating why its publicly traded price continues to struggle. It might be worth something as the leading social network today, but it is still being managed in a rather immature fashion. Sooner or later, the front runner might implode like almost every other front running social network before it.

A final thought on rights and social networks in general.

Personally, I've always found myself operating in two different directions when it comes to ownership and the Internet. On one hand, publishers and distributors have to be open minded about Fair Use laws. Even when it comes to my content, here and sometimes other places, I've taken a lenient stance provided links and credit are given when links and credit are due. Social is all about sharing, much like TripAdvisor has realized in opening up its content to thousands of other sites.

On the other hand, I have practiced restraint and resistance to every social network I have ever worked with that has tried to claim ownership of other people's content. In one instance, I turned down an offer to help edit a book made up of member-generated content after learning that the content originators would be credited but not notified or compensated. I made my case strong enough that the network dropped the idea.

The bottom line is that there isn't any need (except greed) for social network startups or established behemoths to claim anything but enough rights to enable people to share their content. Anything beyond a post or picture as a one-time share is an overreach that people ought not to ignore.

They ought not to ignore it for two reasons. Social network members that ignore policy changes risk becoming little more than slaves to the social networks they support. And social network providers, even if they are more sensible in their own policies, need to police their industry against such abuse or all of them will risk future legislation and laws that reverse and regulate the immaturity of a few.

Immature really is the right word. Despite the best guesses of some, Facebook is ruining Instagram. I will hate to leave, but if Instagram doesn't self correct by Jan. 16, I'll be among the departed.

Update: In traditional Facebook fashion, Instagram responds to the pushback with an apology.

Monday, December 17

Raising Expectations: Online Retailers

Online sales are expected to increase this year. Online shoppers are also increasing their already high expectations. Now that almost half of all online retailers are offering free shipping, more consumers are expecting free returns too.

In fact, one recent survey conducted by Harris Interactive for Shoprunner, which is a shopping services network, shows as many as 81 percent of online shoppers say they are not likely to make additional purchases from websites that charge for returns. Sixty-nine percent also say that the process for returning online purchases is too complicated.

There are hundreds of decisions companies make that impact brand.

While most marketers invest significant time in attempting to increase sales, far too few are concerned about customer life cycle — the potential for one client to make multiple purchases for months, years, or even an entire lifetime. Some invest everything into incentivizing purchases without ever considering the other touch points related to the transaction.

The reality is that everything counts. Customers are looking for ease of purchase, speed of shipping, cost of shipping, shipment packaging, product performance, return policies, and cost of returns. The impact any of these touch points and others have can make all the difference.

How much? According to the study, customers paying for their own returns decrease spending with retailers between 75 and 100 percent within two years. In contrast, customers who receive free return shipping will increase their spending with the retailer by 158 to 457 percent in the same period.

The survey goes a long way in suggesting that customers are more inclined to consider their entire experience as part of the brand relationship as opposed to product performance alone. (The same can be said of offline purchases too, where customers have become weary of less than stellar customer service.)

There are several other areas where many online retailers can step up their game. 

• 67 percent of online shoppers would purchase more online from mobile devices or computers if they are already already familiar with the same secure, easy check-out procedure.

• 77 percent said they would spend more online if retailers offered free 1-2 day shipping (but also admit that faster shipping options gives them more reason to procrastinate).

• 80 percent of consumers say they like the option of picking up online purchases in person, a concept recently included in a New York Times article covering how online and in-store shopping have changed.

But improving policies and technologies isn't the only area where retailers can step up. Customers are keen on seeing technology improve in-store purchases too. Mobile isn't only the answer for consumers. It is quickly becoming the answer for retailers too — everything from offering free Wi-Fi to finding out more product information to giving customers immediate access to inventory that is not readily available in the store can increase sales and improve customers retention in person or online.

Friday, December 14

Syndicating Content: Why TripAdvisor Doesn't Need Visitors

Bloggers have known it for some time, but it works for big business too. The goal of effective branding doesn't always begin and end with attracting visitors to an organizational site but creating content other people want.

For some time, TripAdvisor has been putting this idea into practice. The number of people who view TripAdvisor content on sites other than TripAdvisor has doubled since last year. Now, more than 300 million visitors per month see TripAdvisor content on sites like Best Western International and Thomas Cook instead. They aren't the only ones. More than 500 companies carry TripAdvisor content.

Site visits shouldn't trump sales. 

The program, which originally started as means for businesses (and TripAdvisor) to encourage more traveler reviews, has since grown into an array of services for travel brands to syndicate TripAdvisor content,  integrate site technologies, engage customers, and increase bookings.

"We recognize that a growing number of guests turn to social communities and online reviews for research before they book a hotel stay," said Dorothy Dowling, senior vice president of sales and marketing for Best Western. "Now our guests read TripAdvisor traveler reviews without leaving our site, which not only saves time but also helps each guest choose the right Best Western hotel for their needs."

There is another reason for companies to consider the option, according to TripAdvisor. According to the September 2012 PhoCusWright survey, 53 percent of travelers won't book a hotel if it doesn't have TripAdvisor reviews, which includes 75 million reviews and opinions. The volume of user-generated content attracts about 60 million unique visitors (75 million if all 19 media brands owned by the company are included).

In other words, TripAdvisor content offsite is read by five times as many people as it is onsite. And interestingly enough, TripAdvisor doesn't care. As many as 60,000 unique domains carry TripAdvisor content, shifting the company away from attracting site visitors and reaching out to them instead.

The concept brings new meaning to the old concept that winning companies look for innovations, ideas, and spaces where their competition isn't. In this case, it turns out that the places where TripAdvisor competition isn't is everywhere they could have been — on the places they review.

Wednesday, December 12

Marketing Challenge: Big Data Casts Big Shadows

A new study sponsored by EMC Corporation found that despite the unprecedented expansion of the digital universe due to the massive amounts of data being generated daily by people and machines (an average of 5,247 GB of data for every person on earth by 2020), only about 0.5 percent of the world's data is being analyzed.

This provides both opportunities and challenges as only about 3 percent of potentially useful data is even tagged. (Ironically, only about 20 percent of all data being generated is adequately protected.)

The two-fold challenge for marketers in the next decade. 

If marketing firms and IT departments capture, organize, and analyze too little data, they are more likely  to capture big shadows with distorted information. If marketing firms and IT departments capture too much data, most of them will succumb to information overload paralysis.

This is doubly true because the amount of information stored in the digital universe about individual users exceeds the amount of data that they themselves create. Every day, algorithms are generating data about everyone who is active on the Internet that is only as good as the proposed algorithm.

The effectiveness of these algorithms can be appreciated simply reviewing the advertising content being served up on various social networks and ad revenue websites. If the advertising doesn't match your needs or interests, it is very likely caused by an ineffective algorithm that is attached to your data (and then attracts more erroneous data). The potential for advertising dollar waste is tremendous.

Author Geoff Livingston scratched the surface in his recent article Does a Social Score Make a CMO? Forbes attempted to determine the top 20 Fortune CMOs baed on social scoring as opposed to outcome measurements tied to their work. Social scoring is largely useless data, casting shadows that may or may not be true especially because people who work for big brands tend to attract more followers regardless of their contributions or real influence (even within the field).

Ergo, in some cases, it is the brand and not the person attracting attention. Likewise, other people work hard to game the system, either trolling for follow-back propositions or purchasing followers to inflate perception. Big data doesn't know the difference, despite claims to the contrary.

These are only small examples of the bigger problem. The point is that as data seemingly becomes increasing accessible that doesn't mean that its value increases with the volume. Even if Western Europe is currently investing $2.49 (USD) per GB, the U.S. $1.77 per GB, China $1.31 per GB, and India $.87 per GB to manage the digital universe, there are no guarantees that big data can capture more than distorted reflections of the people marketing wants to persuade.

Big data can be useful, but only when it is continually vetted by traditional research. 

Even as data measurements improve for anyone hoping to track, research, and predict consumer sentiment, marketers ought not become lazy researchers relying on slivers of data or online surveys. If social networks are an opportunity for organizations to be more human, then big data collection ought to work toward understanding behavior as opposed to dehumanizing population groups.

Some marketers today might be surprised to find that their best efforts to automate and insert keywords (as an example) might produce a measured response in the short term but fail in vetting sessions that involve live customer interviews, face-to-face interactions, or even focus groups. While the challenges are not insurmountable and provide additional opportunities beyond the digital universe, it goes a long way in demonstrating the need to think beyond the obvious, especially when what is "obvious" only accounts for a fraction of a percent, less than traditional methods used to capture.

While the study raised many of the questions above, there is additional information that can be gleaned from it for marketers and IT professionals. For more highlights from the study, visit the EMC multimedia overview page. It presents eye-opening information about how much we don't know vs. what we think we know as well as an even analysis of challenges and opportunities for big data.

Monday, December 10

Ending The Daily: Don't Blame The Tablets

There is plenty of speculation as to why Rupert Murdoch's The Daily folded, but don't fooled by some of it. Any contention that the tablet is to blame is a mistake. The medium wasn't the problem. It was the message. It was the business model. It was misunderstanding what consumers want from digital news.

For every failed newspaper-turned-news tablet, there are dozens of successes. And none of these successes are crippled by issues experienced by the News Corp. experiment, despite Felix Salmon outlining all the tablet troubles some news outlets are experiencing with tablet delivery.

Here are few of them. But most are fixable.

The most prominent issues with tablet native news, according to Columbia Journalism Review. 

• News applications are clunky, with most requiring a long download for every issue.
• Navigation is difficult and unintuitive, with pages less than dynamic and without a search.
• Archival issues abound, with most tablet editions being limited to single issue reads and no history.

But anyone who understands the native apps and the web a little more than the bold digital experiment by Murdoch won't be fooled into thinking that the tablet is at fault. All you have to do is flip over to Flipboard to get an idea of what can be done without the deep pockets News Corp. once had.

• News applications need to drip stories in a steady stream, not make standalone issues.
• Navigation is easy when the content is arranged by topic, letting readers prioritize content.
• Every great native app can built with archival content in mind, including related links.

While I haven't had an opportunity to fully review the free application process for Liquid [Hip], an alternative reviews site, I do know the benefits outweighed any issues. Thanks to the innovative partnering opportunity and programing ability of UppSite, converting web-based content to a native app isn't perfect but closing in on perfect.

The biggest advantage is that stories are delivered as they are published, making it faster to retrieve reviews than a browser. And while navigation still needs to be improved by allowing publishers to set major categories and listing the rest of any index as alphabetical (suggestions made by our firm), the potential already exists. Once it is complete, including a search, archived content isn't an issue.

While some people might note that web content ported to a native app lacks some media-rich dynamics that publishers want to take advantage of, it seems to me that it still makes the best blueprint. Content delivered one story at a time is better than trying to build editions. Dynamic content, ranging from videos to interactive features, can still be built in easy enough. And, if publishers are paying attention, then they might appreciate another trapping that The Daily exhibited. Weak content.

It wasn't that the content was weak per se, but the depth of reporting didn't justify the price. Native apps (or web news sites) need to do a better job balancing short-content appeal while still delivering the depth of reporting that used to set magazines and newspapers apart from the spoonful-sized stories that electronic (television and radio) provided. How do you do it?

Building a better news experience for people with mobile phones and tablets.

It's relatively painless, really. All publishers need to do is write an executive brief-like lead story (around 350 words) that opens up three to 10 in-depth stories or point-of-view pieces or dynamics (graphs, videos, etc.) that paint a complete picture (along with archival capabilities). Doing so creates the reader choice that most people crave — which is why they search for more content after spending 15 minutes or so with a post online.

So no, it wasn't the tablet that doomed The Daily, which was filled with surface content that couldn't justify a high subscription price. Like most failed digital products, it was the development team behind it focusing too much on developing something for a medium as opposed to people who use that medium. If they had done that, then The Daily would have been the best practice and not the pitfall to avoid. But no matter. Sooner or later somebody else will spend their time in the right place and finally get it right.
 

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