Category Archives: Social Media

Facebook is Actually Not Free

This is our monthly installment of ‘Delayed Grasp of the Obvious’.

Just before Facebook Week last week I volunteered a point of view that was posted in Kevin Coupe’s excellent retail blog MorningNewsBeat.com, questioning that as FB doesn’t charge, how can it compensate users for breach of their private data?  (the letter is shown below).

Fair enough question and we saw Zuckerberg, Sandberg & Co. take some baby steps last week after the Congressional rotisserie.

But I made a huge error when I said “Facebook is free already”.  Palm to forehead.

Facebook is not free.   Nothing is free.

As has been famously stated and variously attributed, ‘There ain’t no such thing as a free lunch”.  Meaning, there’s always a hidden or implied cost or quid pro quo with anything positioned as ‘free’.

In Facebook, you don’t pay cash, you pay with something much more dear:  YOU.

In fact, Facebook, and all other ‘free’ sites, are not benevolent social facilitators, they are essentially match.com-like dating sites that try to hook up advertisers with hot to trot consumers.  Except you don’t volunteer things like ‘long walks on the beach’.   All you do is go about your daily life, posting and clicking, and your profile is created in the background, with data you didn’t even know was being collected.

Basic stuff, but really brought home by the latest Facebook issues, which look to become a watershed moment in privacy practices.

As a marketer doing anything online, understand that your future efforts to connect with consumers is going to have to deal with increasing amounts of skepticism, where consumers make a more informed decision about whether hitting that last click-bait article, or signing up for something that looks free.
– and increasing privacy laws will likely mean greater disclosure and more overt opt-in requirements.

As a consumer, realize that online you are first a commodity, not some company’s friend, and you need to take exceptional care of YOU.

The days of ‘free’ services are waning.  And this is not just another conspiracy theory.

MNB_Logo1_257x98
April 6, 2018

I liked this email about the Facebook situation from MNB reader David Tuchler:

So here’s the thing: any normal business that screwed up or compromised its customers’ privacy or violated any other customer rights would be compelled to offer some sort of make-good (morally if not legally). If the laundry scorches your shirt, they cover the cost of the shirt or give you a credit. Even Equifax offered a identity protection service, even if it was sort of a ‘honestly, you can trust me again’ thing. The point is that the injured party is somehow compensated.

Facebook is different – it does not collect revenue from its consumer users. So even with millions of its users’ confidential data breached and a market cap of $464 Billion (that’s over $200 per user or $6000 per affected user), does Facebook have a responsibility to somehow make things right? And how would that even happen? In-kind gestures (we’ll extend your subscription another 3 months) doesn’t necessarily work here – – not only because FB is free already, but I don’t want any more FB – – I actually want less.

This is one of those areas where the law hasn’t kept up with the fast-moving nature of online activity (sort of analogous to the online sales avoid sales tax loophole). To the extent these social media companies have no avenue to make things right, I would have to agree with the European direction of requiring more strict and obvious safeguards and opt-in mechanisms so that risks are made clear and users can make a more rational judgment on whether to join or not.

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‘Facebook Real’ can help you handle fake news – – from your friends

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As you may have heard, social networking giant Facebook today quietly announced the test marketing of an updated version, called Facebook Real, with the stated objective of improving the Facebook user experience.

Facebook ratings

Facebook has always taken some flak about its negative effects, so this seems a worthwhile goal.  But cynics as we are, The Armchair MBA feels Facebook Real is just a misdirection play to divert attention from the ongoing Cambridge Analytica scandal (CEO Zuckerberg is scheduled to testify before the US Congress in the near future).

In any case, this is an example of how a seemingly innocuous reason-for-being (exploit the constant human needs of attention and affirmation to create an online community and attract eyeballs) can instead have the opposite effect (while also creating an international political scandal).
In today’s online world, nothing is 100% predictable.   Or even 50%.
——

Since its founding in 2004, Facebook in 2017 has reached over 2 billion active users and a market value of over half a trillion dollars (although the recent scandal chopped about $50 billion – !! – off its market cap).

Along the way, however, the effect of never-ending positive posts from friends combined with lack of personal interaction has drawn increasing criticism for its negative psychological effects – – leading to a press release in December 2017 from Facebook’s own researchers admitting that sometimes people “felt worse” after spending time online.

FB Research

Facebook has itself experimented with a ‘dislike button’ (which they call a ‘downvote button’) to give users some measure of control.  But this hasn’t gone anywhere.

https://www.thedailybeast.com/facebook-is-testing-a-dislike-button-called-downvote-with-select-users

Downvote 2

How will Facebook Real be different?
Facebook Real is a different way to help some users better cope with a continuous stream of positive posts, while still staying connected.

It is well known that the carefully curated posts of acquaintances’ positive experiences – – an accomplishment, a great vacation, a financial windfall, a celebrity sighting, etc. — are in reality your friends’ personal Highlight Reels.  No one has a life as fabulous as any single person on Facebook, let alone everyone combined.
Indeed, as the Facebook researchers noted, “reading about others online might lead to negative social comparison” – – in other words, feelings of relative inferiority.

 

Facebook Real takes a different approach that is elegant in its simplicity. It essentially attempts to make feeds more representative of real life, including the ups as well as the downs – – and relies on Facebook’s seemingly endless personal data trove, combined with some remarkable algorithmic programming.

FacebookReal

In the test, every 2 or 3 actual positive posts from a person will be supplemented by one ‘fake’ post that is designed to reflect the realities of life. These ‘reality’ posts will be woven into the feed naturally, based on what Facebook knows about you.

For example, if Person A posts ‘my daughter is on the honor roll’ followed by ‘my husband just achieved his karate green belt’, or ‘got first row tickets to the Final Four’, it will be followed by a random post that Facebook has created but which is based on the person’s actual life.
If Facebook’s data shows that this person has, say, experienced a drop in credit score, a mortgage default, a threatening blackmail note from a spurned co-worker, a pet that failed obedience training, or a child that was recently bailed out of prison, this will be skillfully used to create a real-looking post sent from that person.  The ‘sender’ will not be aware of this ‘faux post’.

fb - final

The result will theoretically provide a break from the incessant stream of positives and show that everyone actually deals with real life, leading to a more interested, engaged and stable universe of Facebook users.

The downside is of course that Facebook Real relies on leveraging ever-increasing and ever-intrusive data on its users, which is not consistent with current attitudinal trends.

Look for more information on Facebook Real in coming weeks, and please contact The Armchair MBA if you suspect you may be in the test group. We’ll (anonymously, of course), provide an update in a future post.

Inside Candidate URL Guerrilla Warfare!

Recently Donald Trump’s campaign acquired the domain for jebbush.com* and directed it to donaldjtrump.com.

This raises the question, what sort of campaign is Jeb! running when his staff hasn’t even registered his own name?

Classic domain warfare dictates scooping up all likely (as well as expected negative) URLs so you can control the message.

As it turns out, Jeb! is not the only one who has missed this rather basic tactic.  (the screen shots below can be clicked through to the actual sites).  In fact, depending on whether the middle initial ‘J’ is involved, The Donald missed a few himself.

—> http://www.tedcruz.com was taken over by a group promoting immigration reform, forcing Ted’s people to base operations on tedcruz.org (wouldn’t have been his first choice).

—> http://www.carlyfiorina.org was hijacked by someone with an axe to grind.  (spoiler alert: the last screen tells us it was 30,000 people – – all of whom had families)

…and Donald himself was caught flat-footed when he allowed http://www.trumpsucks.com to be directed to none other than Fox News’s Megyn Kelly!  Megyn punks Donald!

By the measure of controlling the URL landscape, overall, aside from the Megyn Kelly thing, Trump does pretty well.  He grabbed Jeb’s site (probably paid a squatter for it), and got ahead of a few ‘Ihate***.com’ sites, including some of his competitors. (see chart below)

Ted Cruz and Jeb! fare worst.  They don’t have their name.com URL and both need a less obvious URL for their base of operations.  Jeb particularly has been rumored as a presidential candidate for at least 30 years.  You would think he would have been savvy enough to get ahead of the game and grab his own name domain.

John Kasich, Bernie Sanders, Ben Carson, and Hillary Clinton have decided to invest in only one URL.  The others are somewhere in between.

Is URL control a huge deal?  Probably not – – someone who gets redirected is likely not going to be automatically swayed just by landing on an unexpected site.

But still, there’s something to be said for controlling access to your message.  Maybe it’s time for each of us to look at www.(your name)sucks.com and see what comes up!

URLMatrix

*in WordPress, jebbush auto-corrects to nebbish.  hmmm.

The Secret to Great Customer Service

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A pair of recent customer service experiences (one very good, one not so good) inspired this post.  (If you’re in a hurry, my POV is at the end.)  If you stick around, I’ve included some juicy case studies.

Happy Customer

These experiences made me wonder – what is the essence of good customer service? Do those famous over-the-top examples make good financial sense?

I’m no customer service professor, and this subject has been covered countless times, but I do have my opinion (and this is my blog /bully pulpit) – but customer satisfaction does not seem directly related to dollar value.

Customer Service has always been a point of distinction for those making The Customer Is Always Right truly a focus of their strategy

  • Nordstrom,  LL Bean and others have long been traditional standard-bearers for ‘no questions asked’ service
  • However, abuse has caused even highly-regarded companies to adjust their policies

https://thearmchairmba.com/2013/09/27/but-what-if-the-customer-is-a-big-jerk/

Social Media has amplified the impact of customer service, both good and bad

  • Missteps are more visible and make companies vulnerable to public shaming or boycotts, or minimally distraction, regardless of a complaint’s merits

For a great set of examples of service gone bad, check out this article.   If you want to focus on one, I personally found the Amy’s Bakery example (#2) delicious to read.:

https://blog.kissmetrics.com/customer-service-mistakes/

  • Good deeds are similarly great opportunities for spreading positive stories – circulated via social media, they often create value much greater than paid advertising.
  • Here are a few great examples.   Check out the Netflix live chat example (#3) on the Helpscout link – – very fun.

http://www.forbes.com/sites/stanphelps/2014/08/01/heroic-customer-service-by-a-senior-executive-at-warby-parker/

http://www.businessinsider.com/zappos-customer-service-crm-2012-1

http://www.helpscout.net/blog/remarkable-customer-service/

Two recent personal experiences shaped my opinions of companies.

Carryon

  • My carry-on bag’s handle failed after hundreds of trips. The brand is High Sierra. I contacted them online and explained my issue, with photos (as they requested). My goal was to find a repair shop. I had mentioned that I ideally would like a fix by the weekend as I was traveling on Monday morning. It was Thursday.


BoxHandle

  • On Saturday morning I received, by FedEx, a large box containing a replacement handle, with a few extra zipper pulls thrown in (which came in handy).   A few minutes and I had the handle replaced and was good to go. At zero cost. Fantastic!
  • The brand is High Sierra. High Sierra.  High Sierra. They are now owned by Samsonite. Kudos to Samsonite for allowing this business unit to take care of customers in a highly personal and attentive way.  High Sierra.
  • I have 2 other bags from High Sierra and you can bet that they get right of first refusal on the fourth.

3.84

  • A recent Avis rental came with no washer fluid, which I bought later for $3.84. In returning the car I requested that this amount be taken off my bill. In similar situations with other companies the response was usually immediately taking one of my rental days off the bill and getting me on my way.
  • In the case of Avis, it eventually required the attention of 4 Avis people.  The agent receiving cars didn’t have authority; the front desk clerk didn’t have authority; the manager had authority but couldn’t make a system input; finally the 4th employee was able to input the solution. Total time for a $4 issue? 20 minutes.
  • And the solution? A $10 voucher, which means they didn’t actually refund anything.
  • Worse, this delay caused me to miss an opportunity for an earlier flight.

So, what is the secret to customer service?

BE CUSTOMER CENTRIC. Simple as that.

  • Let the customer know they have been heard – this alone is more important than any dollar amount of a solution.
  • Treat the customer like a human. Stay off the scripts if possible.  You don’t have to pretend to be Captain Kirk (see Netflix example above) but a personal touch is incredibly effective.
    (By the way, insider tip:  as a customer, treating any customer service person or clerk or waiter or sales person etc like a human being almost always yields positive experiences).
  • Demonstrate that the customer is priority #1, company is priority #2.  Avis was clearly all about Avis.
  • Delays in response exacerbate frustration.  Speedy response shows that you are listening and can nip negative feelings in the bud.
  • Going above and beyond has significant upsides – you want to be on the ‘best customer service’ blog post, not the ‘disaster stories’.  And a few well-placed good deeds can get a ton of mileage (see links above).

HighSierra

I would have been satisfied with a recommendation for a good repair shop for my bag, and High Sierra (High Sierra. High Sierra.) went above and beyond, to my delight.  As a result, they have the opportunity for word-of-mouth recommendations from unexpected places, including people like me. (High Sierra!)

And Avis? They worked to win a little battle, and lost a round in the war.  They will get less consideration from me next time around.  Try Harder?  Good idea.

A Wilde Affair – 5 Lessons for Marketers

By now you’ve seen Chevy Sales Executive Rikk Wilde’s cringe-worthy presentation of the World Series MVP Award to the SF Giants’ Madison Bumgarner, as reporter Erin Andrews and Commissioner Bud Selig both looked to be trying to flag down a cab.

Wilde

Not surprisingly, this clip immediately lit up the Twitterverse and generated a remarkable amount of media attention (and references to Chris Farley, with whom Mr. Wilde was frequently compared).

Farley2

But perhaps unexpectedly, rather than distancing itself, GM took advantage of it with a wink and a smile, embracing Mr. Wilde’s performance and his instant classic utterance “Technology and Stuff”. Within a few days of the event, there was a full-page ad in USA Today playfully referencing the World Series MVP ceremony.

T&S-tweet

Chevy Tweet

T&S - USAToday

USA Today Full-page ad

So of course, The Armchair MBA has decided to spoil the moment by trying to extract object lessons from this episode.

And there are clear lessons from L’affaire Wilde that today’s marketers need to keep in mind:

1) Expect the unexpected.   Speed is key, so be ready.

2) Serendipity can be your friend – be open to improvisation to marketing plans.

  • Even the best plans need to be able to stretch sometimes to take advantage of marketplace events
  • The Chevy Colorado pickup had just (Oct. 3) been named in a large airbag recall, which was limiting sales
  • The publicity surrounding Mr. Wilde’s presentation drew new attention to the Colorado, and the recall went from front burner to a secondary issue, at least temporarily

3) Consumers like authenticity and the little guy.   And they hate to be manipulated.

  • Wilde’s memorable performance, while not pretty, was also clearly not slick corporate-speak, and therefore broke through the clutter, arguably much better than if a senior executive, or GM CEO Mary Barra herself, had presented the award
  • We will use ‘little guy’ in the figurative sense. Mr. Wilde, by virtue of his stammering, sweating performance, reminded us that we’re all human, and if faced with a global TV audience, might be a little nervous ourselves.  So in an unplanned way, this helped connect the audience to the product.
  • This was 100% authentic. If it turned out that it was at all scripted, it would have backfired on GM in a huge way
  • (As a side point, apparently Mr. Wilde was selected to give the award mostly because he was a long-time Royals fan and his management thought it would be a thrill for him — even though he was obviously not a media trained spokesperson.  Good for you, Chevy!)

4) Consumers like humility and a sense of humor

  • “Technology and Stuff” was a perfect way for GM to gently poke fun at itself
  • In contrast, denying or attempting to spin would have been futile

5) Branding is very powerful for people too

  • Unless you, as new parents, know with 100% certainty that your precious child is headed for a career path involving heavy metal bands or the adult film industry, for heaven’s sake, do NOT name him Rikk Wilde.

…and Botswana makes it 100 Countries!

In a shameless act of self-promotion, this announces that as of today, The Armchair MBA has now reached 100 countries served!    A sort of crazy milestone considering its quite humble and uninformed beginnings, some 70 posts and 2 1/2 years ago.

100 Countries

 

But beyond cocktail party braggadocio, what does this say about the state of blogging?  Or, who cares?

First, some info.
Below is a map of where my readers have come from. Darker colors indicate more readers.
– Clearly a bias toward English-speaking countries but plenty from elsewhere.
– While the US is by far the strongest reader source, average daily readership comprises about 5 or 6 countries, which shift daily.
– Notable in their presence:  China (a single rogue reader!), Botswana (which got me over the 100 hump today) and Papua New Guinea (only because I can’t not think about the combination of loincloths and laptops).
– Totally expected absences:  Cuba, Russian satellites, Iran, N. Korea, and most of Africa.  Is there media repression?  Of course.

While I have a strong base of followers (thank you!), most readership is not subscribed and comes from 2 sources:  LinkedIn (on one page or another) and online search results.  The latter group accounts for the majority of non-English country visitors.

Screen Shot 2014-10-09 at 3.14.30 PM

 Lessons learned?
– The global pull of The Armchair MBA has been surprising.  Part of the reason is that topics often have global relevance; one more support point for the theory that borders are increasingly irrelevant as it relates to business news/learning/sharing.
Posts have long tails – – there is a bump in initial readership but even the oldest posts get recurring views.  The internet is a great accumulator.   Full disclosure:  I recently experimented by taking a SEO approach and including all African nations in text form — it has resulted in some visits from Africa, but to the point below, it is slow.  But it is possible to proactively solicit traffic.
Propagation is steady but slow – – but even if initial readership is modest, much value is still retained as a post transitions from ‘news’ to ‘reference’TAMBA-credential
Having a blog like this pays nothing, but it does have its benefits:
Provides an outlet for my voice and is encouragement to continue to explore, think and opine
– Occasionally merits a media credential, enabling privileged access to trade shows/seminars and continued learning for myself and for my clients
Solicits feedback and additional points of view, often from some surprising sources
– And, every once in a blue moon, provides validation in the form of a ‘Like’.  Sort of like Facebook, only with much more work (including checking my sources).

Thanks for reading.  And thank you, Botswana.

 

A Non-Techie’s Guide to the Internet Commerce Trade Show (IRCE)

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This year was the 10th anniversary of the Internet Retailer Conference and Exhibition (IRCE) and my first year of attendance.

IRCE logo

Trying to neatly summarize this sort of confab without a experience as an e-commerce operator is sort of like assuming you can translate Portuguese based on having watched the World Cup.  The show was large, chaotic and alien – sort of like walking into 100 Star Wars bars simultaneously.

So while I have decent e-retailing experience, I will not attempt to make sense of all of this.

But I do have some observations.

E-Commerce is based on a few simple objectives, not too different from the marketing funnel used for any other product marketing, but with different terminology:
– gain the right customers’ attention  (‘engagement’, ‘click thru’, ‘open rate’)
– encourage purchase (‘conversion’)
– efficiently delivering (‘fulfillment’, ‘final mile’)
– establish a relationship (‘customer experience’)
– encourage repeat purchase (‘loyalty’, ‘retention’)
– encourage WOM, referrals (‘evangelism’)
– etc.

Simple, no?  I mean, we all shop online, how difficult could it be?

Well, let’s illustrate some of the complexities using a typical grocery store as the template.  Imagine running this store.

This is a store where:
the store itself serves the entire world — yet it needs to be built to serve the right volume of customers profitably
– finding the store requires a guide — yet the description that will lead to your store changes every 6 months
– your most loyal customers can be lost if a competitor offers to carry the groceries to the car for free
one of your big vendors (i.e. ISP) can have a bad day and you are unable to open, with no control
competitors can pop up virtually next door – instantly – and go away just as fast
– about 4 in 10 customers fill up their carts and then exit the store, leaving the cart in the aisle
a person with bad intent could lock the doors of your store –  from thousands of miles away
your loyal shoppers are barraged with promotional messages from stores right next door – and around the world
your competitors’ customers don’t necessarily live nearby – – but you still have to find them
– some of your competitors sell products to an enormous store that’s in every market, and which sells them cheaper (hint: starts with an ‘A’)
– and all of this is changing at light speed — Yikes!

On the other hand, all is not lost.  Imagine if your store could:
remind customers when important events are, and even suggest items to buy for the occasion
– send customers totally personalized communications, including catalogs – – as often as you want, for almost nothing
make recommendations to your customers about what they might love, based on what they’ve already bought
– send customers not just promotions, but at the exact time that you know they typically buy, and the deals that they respond to
enable your customers to tell all their friends about your great store – – instantly, when they’re most excited
follow up every single purchase to make sure everything is ok
dress your store up for the holidays or another event – – instantly
change what your store offers based on what your customers are buying elsewhere
enable customers to order merely by touching the picture in the ad

This is the magic of e-tailing.  The ability to reach and influence is remarkable, and the rules are constantly changing.

Here are a few companies whose products looked interesting:

Ship 2 My ID – – from their website: “Ship2MyID is a social commerce enabler that will allow users to buy items online and send them to others without needing to know the receiver’s physical address. Both the sender and the receiver’s physical addresses are kept hidden from each other, and the receiver has to accept the shipment, ensuring security.”  Got it?  You give them your email or social media ID, they help someone ship something to you without their knowing your address.  yes, me too.

ShipToMyID

 

OrderGroove – encourages all-important loyalty by enabling subscription ordering (i.e. they figure out when you run out of vitamins, diapers, dog treats, whatever, and facilitate having the manufacturer send to you.)

Ordergroove

Bitpay – Still don’t understand bitcoins?  Doesn’t matter.  With these guys, your store can still accept them.

From their site:  “Instant conversion, no transaction fee, and bank deposits in US Dollars, Euros, GBP, CAD and more. We take the bitcoin exchange rate risk, your customers get the best rate on the market, and you get a payment you can count on, every time.”

Sounds pretty low-risk to me.

Bitpay

FeedVisor – Algorithmic Repricing for Amazon Sellers!   I will admit – – not 100% sure what these guys do.  Maybe not even 50%. There was a crowd of intimidating techies crowded around the booth so I just gave them wide berth and moved on.

Algorithmic Repricing

 

The IRCE show is one trade event that is actually worth attending every year, because you know that in a year everything will be completely different.