Sunday, April 19, 2009

Preserve Us From The Uncool


Twitter, the once esoteric microblogging utility has "crossed the chasm." It is now popular, if not yet mainstream.

Consider:

In case you missed it, last Friday, 17 April 2009, was "Twitter Day" on Oprah. And Oprah has shown she can move markets, if not mountains. Not only is she on Twitter, but at least for Twitter Day was tweeting live on her show. Oprah herself has in a few days gone from a standing start to over 300 thousand followers. If you want the current stats on the followers, visit her Twitter page and see the block in the upper right corner.

Actor Ashton Kutcher became the first to amass a million followers on Twitter. This was not spontaneous. Rather it was the result of well orchestrated marketing campaign, including — you guessed it — Twitter.

Many radio and TV shows accept or even solicit listener input via Twitter, while businesses and organizations are actively playing with it.

During the presidential campaign of 2008, one Twitter account dominated all others. As you may have guessed this was Barack Obama’s. His campaign understood and applied social media better than any competing candidate. He currently has about 887 thousand followers.

In these depressed times, meteoric success like Twitter's cheers me up - all the more so, because it was so improbable. Who’d a thunk it? Initially the experience of most Twitter users, and I include myself, was not love at first Tweet. Gradually, we found ways of making this lightweight utility pretty darn useful. Each of us did this in different ways with different constituencies.

All is, however, not well in the Twittersphere. It is very likely that increased traffic will strain Twitter’s servers. There will be more temporary interruptions in service just as we had come to depend on Twitter.

Among certain quarters, the objections are more profound and profoundly less rational. That is, by becoming popular, Twitter will loose the cachet it had by being esoteric, counterintuitive, or to many just plain weird. As in one of Yogi’s bon mot "it’s so crowded nobody goes there."
  • PR maven and Twitter user Steve Rubel posits the decline of Twitter because the geeks, who were its first patrons, will desert it for the next cool thing.
  • Technology analyst Jeremiah Owyang, expects a backlash as Twitter approaches mainstream.
  • While PC Magazine columnist Lance Ulanoff laments that “Oprah and Ashton will destroy Twitter."
I don't think so. Email may be uncool, but it's not going away anytime soon. Most of those who joined Twitter only because of Oprah may drop out, unless she starts Tweeting messages relevant to them. Those who find it useful will stay, no matter how they first got there.

Thursday, April 16, 2009

Social Networking Or Social Notworking?

At a recent charity breakfast, the topic turned to social media such as Facebook and Twitter. My table mates were intelligent and accomplished people in a variety of careers. Their consensus was that they didn't get it and weren't sure they wanted to. They assumed that these had nothing to offer their professional or personal lives.

Here is my take on why, whatever your cause or concern, you might want to consider using social media.

Wednesday, March 25, 2009

You Call This Service?


Business Week's 2009 Customer Service Issue (2/19/09) names Amazon.com as the customer service champ of the year.

I’m a customer of Amazon and buy a couple of times a month through them. Still, they don’t come to mind when I hear the term "customer service." Theirs is a robotic business in which the delivery is, as much as they can make it, untouched by human hands or voices.

Is this yet another case of "Less Is More." Does it illustrate the power of invisibility? Or is it yet another case of radically reduced expectations?

Unlike a Nordstrom, LLBean, a good garage, favorite coffee shop, or the Apple store, there is no immediate experience of being served let alone well served.

"Service" for Amazon is designing processes, which are both robust and comfortable for the customer. The goal is to create reliability and reduce cost there by delivering superior value. It also teaches shoppers and changes their behavior such that both their expectations and demands are different.

An extended definition of service in Amazon's world might contain components such as:
  • Finding products – Here Amazon excels. Why don’t libraries allow you to find something so easily instead of merely automating the old fashioned card catalog?
  • Shipping – The availability of free shipping on many products could be thought of as part of the service. This is fine, yet arrival time is unpredictable.
  • Recommendations – The knowledgeable store clerk is increasingly rare. Amazon does make suggestions on its home page. This seems to be based on my prior searches and misses the mark by a wide margin. Its customer reviews, which are a form of social networking, can be helpful. They are a feature not found when shopping in a physical store. Indeed the potential for Amazon customers to form community offers the intriguing potential for them to transform the shopping process.
  • Returns – Yes you can make them, but Amazon makes you hunt and click to find out how. The return policy is an adequate standard 30 days subject to conditions. Amazon does not facilitate this, presumably by design. It pales when compared to merchants, who guarantee satisfaction by taking returns, period.
  • Conversation – you can exchange messages by email, chat and even phone by entering your number in a form and requesting a call back. If the shopping process is a way of connecting with people, I can recommend a great local bookstore.
Since you’re reading a blog, you’ve probably shopped at Amazon and can decide for yourself whether they are service champs. Perhaps a more significant award is that their sales continue to grow in a very poor economy. Amazon has been continuously improving its process to deliver a vast array of goods at competitive prices. Service Champ or not, its nice that so much of what we need is a click away.

Wednesday, March 18, 2009

Marley Brew


First Music News reported that the estate of reggae singer and song writer Bob Marley may license his name and image to a range of products including snowboards, hotels, coffee, headphones, and beer. This is in part a defensive strategy to capture revenue from unlicensed use of his name or image, but is this good marketing?

Marley's music remains popular 28 years after his death. A visit to the iTune store, shows that 16 of his tunes have a popularity rating of 7 bars or more. Start searching on iTunes, YouTube, or even Google for "bob" and “bob marley" is the first suggestion. His YouTube videos such as Buffalo Soldier and No Woman No Cry have been viewed millions of times. This is brand equity.

Marley and the Marley brand are known for music and associated with Rastafarianism, Jamaica, and cannabis. He has no relation with any of the product categories he may be endorsing from the grave. Just as, say, Tiger Woods has no logical relation to the cars, watches, and consulting firms he endorses. Marley Beer looks like an extreme case of brand extension and brand extensions are often a bad idea.

There could be McDonalds headphones, Ford coffee, Apple snowboards, etc. There aren’t. These, and most other companies are very cautious about what their brands mean and what businesses they compete in. If Procter & Gamble had a new way to clean something, it would very likely launch this as a distinct brand rather than as an extension of an existing brand. Similarly, Coca Cola is in the juice and water businesses, but not under the Coca Cola brand.

Most brand extensions disappoint. They risk diluting the position of the core brand and the extensions seldom thrive. Even multi-business wizard Richard Branson has had indifferent success with his derivative brands such as Virgin Mobile and Virgin Money.

Conventional marketing wisdom is not always right. Unlike classic brand extension, no investment or market risk would be born by Marley. The brewer or snowboard maker affixes a new label to an existing product and assumes what business risk there is. None of the proposed brand extensions appears to clash with the Marley brand as perhaps a Marley breakfast cereal or motor oil might.

I'd recommend they do a deal if they have credible licensees. Excuse me, I have to don my IBM athletic shoes and get the gym.

Thursday, February 26, 2009

Just What The World Needs...


Most probably, the world does not need another video, whatever its content. On the other hand, your website, blog, or Facebook page may. Whatever the product or purpose behind the site, video may be better than text, colors, or static images to communicate emotion and affect.

Of course video can inform and instruct, but it can also convey what customers feel about your product. But if you make industrial solvents (or any other product not likely to be featured on Oprah). Show Customer Success. Whatever your product, customers buy it to solve a problem or obtain a benefit.

For example, your video might include engineers delighted that your ball bearings enabled then to design an engine, which powered a safer airplane. Honda’s Dream The Impossible is a current example.

Forrester Research analyst Nate Elliott reports that including video content on a page tends to improve its search ranking on Google, though not on Yahoo or MSN. Moreover his research found that

"videos stand a much better chance than your text pages of being shown on the first results page."

Short form video does not have to be expensive. Some rather rough home videos, or user generated content, UGC, in current jargon, have achieved a substantial audience. If you already have too much to do, spending a few hundred to a few thousand on an experienced videographer is money well spent. If your total budget is $100, then don’t be afraid to get a basic Flip video camera and give it a try. You could also use third party content or make a video from still photos and narration.

Once you have suitable video, upload to video sharing sites such as YouTube, AOL video, Flickr, Vimeo. Video sharing sites also enable you to embed video links in rich text email. Further you can syndicate your video across multiple sharing sites through a service such as Tubemogul.

Have you budget for a director's beret?