Openness and authenticity are the things that drive brands

One of the great things about being a busines blogger is that you have the opportunity to exchange thoughts and views with interesting and successful business people. People you would never get to known in life but then meet them for a drink, for dinner or -which I really appreciate- for lunch. Sometimes you are the initiator and sometimes it is them who do the first step to invest time in networking and in exchanging “brand and business philosophy”.

In the end, it is all about conversation, and conversation is key for building trust.

Last week, I had one of these comfortable meetings when Aedhmar Hynes, CEO at the PR agency Text 100, spent two hours of her busy time with two her nice colleagues and me in Germany in the restaurant lounge Schweiger2. Apart from enjoying a wonderful menue (should have written the review in English), we exchanged our views on the latest development concerning the challenges for brands on the social web in the future.

In order to share some of her valuable and deep knowledge, Aedhmar summarized her view of the impact of social media on brands for us.

The funny thing is that the restaurant definitely won two “fans” for their delicious showroom cooking, received a positive review and it would be interesting to track the offline word-of-mouth buzz the restaurant gets from us. One of the reasons why I asked her later on, what she things about the power of the brand-vangelists (or brand-advocates) and how to leverage those for business.

Just before I recorded these statements, she said “Openness and authenticity are the things that drive brands”, and I could not agree more. Nevertheless, I think brands still have a lot to learn to make this real from a customers point of view.

Would you agree?

Vom Kulturwandel zum Chief Culture Officer

Manche mag es nerven, wenn im Social Web permanent die Rede vom Kulturwandel ist. Andere leben diesen Kulturwandel, erfinden neue (Job)Titel wie den Personal Web Manager. Grant McCracken benennt in seinem (nicht mehr ganz neuen, aber sehr aktuellem) Buch eine moderne “Stabsstelle” in Konzernen danach: Chief Culture Officer.

In seinem Buch (und im Kleinen in diesem Videointerview) geht McCracken darauf ein, wie Firmen den Chief Culture Officer finden sollen, um weiterhin an vorderster Kundenfront den Puls der Zeit zu erkennen, und wie Kunden Marken mitgestalten können.

Die Person des Chief Culture Officer kann es derzeit sogar in unvollendeter Form schon geben. McCracken bezeichnet diese Personen als “Cool Hunter” oder “Guru”. Eine Art Visionär, dem es aber noch am tiefergreifenden Verständnis für den wandelnden Kulturanspruch fehle. Dieser dreht sich darum, was der Menschheit wichtig ist und was sie für ihr Leben benötigen.

Persönlich finde ich seinen Vergleich des alten und neuen “Marketing-Auftrags” interessant.

Alt: “You load up the canon. You come up with a simple message. You say it as often as you can, as load as you can until the dimmest person in the world understands that’s…”

Neu: “That’s just irritating for everyone. What we want instaed is something closer to conversation. And the buzz word that people are now usinmg is the social co-creation. If you want a vital animated brand, if you want to bring in people like this guyin the spot we just saw to help co-create that brand (…) so what you do is you send them of.”

Konzerne, die dem Kulturwandel einen Schritt näher kommen wollen, sollten sich das Video in Ruhe ansehen – und sich mal Gedanken darüber machen. Und idealerweise ihre Meinungen dazu mit uns teilen…

Study: Permanent change of passwords is a waste of time

The last IT managers and their data and identity security topics were always a challenge for me to find another password instead of ‘iloveyou’ or a mixture of birthday numbers. The question is: Is this permanent change of passwords really as effective as possible and in favor of our security? One thing is for sure, if users have a password manager, they just need to remember one powerful super password.

The Microsoft researcher Cormac Herley now found out that the hype around passwords can be doubted. Herley states that users who ignore security advice are acting rational – and not lazy or stupid. Nevertheless, the study concludes changing passwords constantly is a giant waste of time and money. Plus: It makes the users no safer from identity thieves.

Herley resumes that a task requiring one minute per day from every working adult in the U.S. costs about $15.9 billion per year. Unnecessary security advice “treats as free a resource that is actually worth $2.6 billion an hour.” Does that make sense from a ROI perspective?

The strategy of thieves is not to go for dictionary attacks. These won’t break security. Giving away security credentials through phishing or keylogging is the most effective way. The main issue of the paper is the common requirement that users have to change passwords at specified intervals. Hacker that steal your password will be using it straight away – waiting is nt his tactic.

“Insisting that users choose a unique strong password for each (account) which they change often and never write down is clearly a large burden.”

Spot On!
How do you see this study? Is the mega password with the password manager he best option for security?

Study: The importance of cross-channel sales

Most companies wonder how the purchase funnel looks like when consumers evaluate products they think about buying. A recent study from ATG helps: 30% of consumers reach out to more than three commerce channels to research a product and make a purchase. This shows that retailers and merchants need a broader cross-channel approach to boost sales and enhance customer purchase decisions.

The consumer study found that more than three-quarters of consumers use two or more channels and nearly one-third work with even three or more channels to research and purchase products. While we have all expect that mobile use and social media find their way into consumers’ online commerce activities, it is surprising that traditional catalog channels are still popular.

“Merchants have heard the call for a stronger cross-channel strategy for many years, but what has been lacking is a deeper explanation about why this is so important. We are seeing a multi-channel revolution now, with a vast majority of consumers using multiple channels and now almost one-third actually relying on three or more channels to complete transactions. Retailers must direct their energy toward fulfilling the unique role and sales potential of each channel. This research illuminates the expectations consumers have for the Web, call centers, the store, catalogs, and email.”
Nina McIntyre, Senior Vice President Marketing and CMO, ATG

The key findings of consumers’ cross channel experiences…

– 78% use two or more channels to browse, research and make purchases; 30% said they use three channels or more

– 78% of all consumers say they use catalogs to browse and research products or services at least four times a year BUT 40% of those consumers never purchase products or services through catalogs.

– 43% start their research online or with mobile devices. BUT They need to call customer service or call center representative to complete the transaction because the product or service information cannot be found online!

– 39% browse via the online or mobile channel and then make purchases in the store because they prefer to touch and feel the product – reason for 36% is product and brand comparison

Interesting findings on mobile commerce (emphasis on the 18-34 age)…

– 27% of all consumers 18 and older use their mobile devices to browse or research products and services at least four times a year, and that number jumps to 41% for the 18-34 year-old age group

– 13% of all consumers 18 and older and 23% of the 18-34 age purchasing at least four times a year via their mobile devices; 8% of the later are doing it weekly

Spot on!
The study highlights how important it is to link online and offline sales communication and give the customers the same purchase service in multiple channels. It will always be difficult to understand where customers make their final purchase decision and where they finally buy though. This additional study by Google underlines the trend for an offline and online purchase decision mix. One things is for sure again: The need for more awareness around the incorporation of commerce activities in social networking sites like Facebook, MySpace, and Twitter is gaining momentum.

Social Micro-Payment: Flattr = Paid Trend mit Zukunft?

Die meisten meiner Follower und Fans werden mitbekommen haben, daß mir die Verwirklichung des Paid Service Gedankens sehr am Herzen liegt. Es wird Zeit, daß sich auch wertvoller Content vermarkten lässt.

Aber bitte nicht die Diskussion um Paid Content, sondern weiterhin zukünftig bei Paid Service bleiben. Was die Verlage nun über Jahre nicht geschafft haben, will nun Peter Sunde schaffen – Gründer von The Pirate Bay. Sein Projekt heißt Flattr.

Flattr ist ein Social Micro-Payment Vision, die bisher noch nicht am Gedankenstart war. Aber sicherlich nicht nur den Micro-Content Anbietern gefallen dürfte…

Flattr läuft in der Beta und man kann sich als Content Anbieter um einen Account bewerben – Email Adresse abgeben genügt. Gleich vorweg: Reich wird man damit nicht!

Wie funktioniert Flattr?
Der Internetnutzer zahlt einen fixen monatlichen Obulus. Wer die Seite eines Content-Anbieters besucht, findet neben den Inhalten einen Flattr-Button. Wenn der Inhalt gefällt, wird geklickt. Am Monatsende werden die Klicks des Nutzers gezählt und der eingespielte Betrag entsprechend dann unter allen Empfängern anteilsmäßig verteilt.

Spot On!
Die Idee klingt gut. Der Teufel steckt in der Umsetzung und die hat es in sich. “Every month the Flattr User pays a small fee.” Wer bezahlt denn da eigentlich? Eine Vorauszahlung für Content, den ich vielleicht gar nicht bekomme oder konsumiere? Soll das eine Art Donation-System sein? Hmmm, ist das ein gangbarer Ansatz?

Und dann mag ich gar nicht ausdenken, wie sich das auf die positiven Kommentare in Blogs und RTs auswirkt. “Hey, ich hab schon bezahlt. Lassen wir das mit dem RT oder Kommentar mal…”

Oder liege ich mit meiner Sichtweise falsch…? Nochmal die Idee ist irgendwie cool, aber auch bis zu Ende gedacht?

Augmented Reality – the future of customer service?

The customer service world around us is changing with the social web, new technologies, and especially mobile apps. The question is how much this is effecting our perspective of the real offline world around us. A new technology is evolving that is beginning to connect the offline and the virtual world from a customer perspective as it will offer some new form of customer service. The term is Augmented Reality (AR).

It is a technology that brings your visual experience and information from the web or networks together, and by doing this enriches daily situations with relevant data from the web – and in more and more cases the information provided will come from the user.

The competition for users and companies has already begun. We have augmented reality browsers like Layar, explaining us instantly which famous buildings are surrounding us. Or, another AR browser named Wikitude that starts to become one of the most-wanted AR browser apps (not only for iPhone users) and gets nominated for one award after another. With wikitude.me shops and service providers of all sorts can already use this cool service to make themselves visible in the offline world by geo-tagging their office or location with simple online entries. If somebody is new in a city, this person can find a laundry or the next wine shop much easier in the future – just by using an AR browser app.

There are products like T-shirts projecting interactive games with AR. Digital cosmetic mirrors where women in cosmetic shops can see in real-time what a new eye-liner or make-up is looking good at them without testing it in reality. Adidas will launch a series of shoes, each printed with an AR code on the tongue which give you access to an interactive game that changes on a montly basis. Is this the customer service of the future?

Now, just imagine what this technology could do for customer service in the future. Wouldn’t it be a positive effect when we get immediate feedback on health information about the food and drinks we consume?

The following short film, called Augmented (Hyper)Reality, shows us a world some time ahead, where augmented reality is part of our daily offline life. We see what the actor sees, from his own perspective, and get to know the oppotunities that AR might offer to our daily life. OK, if we agree to getting networked completely…

The interesting acknowledgement for companies will be the advertising part of the film – although in some way it might be shocking…

Spot On!
The complete overkill seems to be the massive sea of logos flooding our sight in the beginning. Although the above examples might seem an exaggerated view of a futuristic branding scenario, it gives some idea on how the world might change customer care in the future. And you never know if this will be really happening, or not. Today, this all might sound strange to us but just think about how common the use of artifical medical help is for us, or how often we use the navigation system in cars today.

And then, think about the options when combining location based advertising with augmented reality. This opens a complete new world of customer care…

Don’t you think?

Is customer-centric business the future?

In the last 12 years, the credo of my business life was “Customer First!”. It surprises and disappoints me when I experience poor customer service. Or when I hear from unhappy friends, colleagues or relatives telling me stories about how companies treat the centre of their business: customers.

Last week, when I was thinking about how to leverage this to a higher level, I came across a modern business strategy vision by Ranjay Gulati, Harvard Business School professor and author of the book “Reorganize for Resilience: Putting Customers at the Center of Your Business“. In the following video Gulati tells us how to deliver what customers really want.

Reorienting vs. Reorganizing
Ranjay Gulati sees the fundamental changes appropriate for some movement in company processes. Customers have more information, more choices on products while companies are facing global competition. So, businesses have to think about their business (not only marketing or sales efforts!) and how it operates.

Redefining vs. Reinventing
The analysis of the customer base might show that the website is designed for male while the majority of the users might be female. So, we need to ask questions like “Who are my customers?”, “How do my customers shop?”, or “What do they really want?”.

Gulati explains with the latest success of Best Buy how women and men shop. At that point, he also hints to the upsale opportunity of recommendations.

Success for businesses, he believes, comes from “Inside-Out-Perspective”. Companies don’t have to produce everything themselves but need to make the client happy like Apple with the iPhone. 90% of the inputs are not made by Apple. The same occurs to the apps in the Apple store where Apple basically just orchestrates the customers wishes.

“Make this identity shift. I am not here to sell what I produce – I am here to solve a set of customer problems (…) and actually acting on that!”

How to get to a customer-centric business…
1. Shifting mindset: the intention to solve customer problems.
2. Sense of curiosity and humility: the wish to understand your customers.
3. Make a creative leap: the will to understand their needs.
4. Align the elements in the organization: the motivation to live the customer-centric business.

Spot On!
Interested to get your view on this modern business strategy. Let us know what you think about customer-centric business. Or do you think the social web will be leading us towards this business process anyway?

Google's new product list – or the freebie wishlist?

gs-competitionIsn’t it wonderful sometimes. I mean, going on the plane… and going offline. I love it… And this small post is the result of it: obviously online…

The web is seen as the “freebie” media. And although I am seen as the “paid-content-advocat” and should not have done that… I have taken the issue of a magazine called ShortList… as it was a freebie. And all of a sudden, you read a magazine you would never have come across in your life. Yes, just as it is a freebie…

And with these freebies, you often get complete new insights and funny outlooks on the future of companies.

This happened to me last week, at London Heathrow airport. Waiting at the gate, I passed by a newsstand with freebies and found a magazine called ShortList

In this magazine I found a very cool 10 bullets shortlist : “Where Google can go next”. It shares visions how Google could make us happy with new products and services. This shortlist seemed sometimes more realistic than a “vision impossible”. It created some freebie visions for Google which they might offer in the future.

I have decided to take my 5 favorites to share my comments (Best partner”) on those with you…

Google X-Ray
From the comfort of your desk you can check out the internal workings of people as they walk the world’s street.
Best partner: Earth TV – Possible doctors game: who finds the first broken rib in a city video…

Google Girlfriend
Worried your other half is having an affair? Simply track down and follow her every move with this handy satellite surveillance application.
Best partner: Twitter – Possible boy-friends game: how long it takes till somebody makes her aware of it…

Google dining
Why go to the expense and trouble of eating out? Simply order a takeaway then virtually take your seat at one of the world’s finest restaurants.
Best partner: toptable – Possible friends game: how long does it take to get thrown out of the restaurant? (Negative: You have to clear up yourself…!)

Google eyes
Having one set of peepers is limiting, but this lets you explore new angles by looking through other people’s eyes.
Best partner: Glassdoor – Compare what your competitor is about to launch, says about your company and if your employees earn to much.

Google Atoms
Being able to see trees, cars and people on the other side of the planet not enough for you? Zoom right in and study their atomic structure.
Best partner: Chemistry – There must be some more detailed way to dive into the chemistry of human’s ‘counter-gender’, right?

Spot On!
So, now that Google gets competition with Facebook (the social network just bought Friendfeed) I was wondering if this shortlist can be expanded with your help – Join in! Let’s be creative for Google and see if there might be something new that we want from them to develop.

Or has Google invented enough online freebies?

Is Twitter a sales tool?

twitter-dollarIn a lot of talks and meetings with clients I am asked if Twitter is a sales tool. Now, what would you say? The university professor might answer with a Solomonic answer: “Well, it depends how you see it…”. Being a member of the Twitterati it is one of these questions where you have to hold on to your horses in order not to be too excited. The best answer is probably: “Yes, it is… and No, it is not!”…

The why for “Yes, it is”…
Looking at the latest development in the “Twittersphere” it can be said that the micro-blogging service can be used as a push tool for sales promotions meant to generate an upside in revenue. The best examples are accounts from companies like Dell (selling re-furbished IT for 3 mio. USD), Threadless (selling shirts – no numbers released yet) or Zappos (selling shoes – no numbers released yet).

Although we don’t know see any revenue figures of Threadless or Zappos, seeing the follower numbers alone offers the option to sell through the indirect way to this new “distribution list” by keeping up the conversation with new thoughts and ideas gathering engagement – or direct via ‘extraordinary’ offers. Just take a look at my sales statistic or metric, I summarized on the Dell Outlet account and you can evaluate your sales options.

Especially, the aviation industry has used the power of pushing their offers through this new media channel – thus uplifting their revenue figures. Some airlines like JetBlue (called “JetBlueCheeps“) and United Airlines (“twares”) offer cheap seats Twitter sales promotion programs (also for unsold tickets). The companies push their announcements via Twitter and the user -hopefully- listens to their Tweets and needs exactly the route offered.

In Germany Lufthansa has also started with sales promotions via Twitter – and obviously after this test the worldwide Twitter offering is “coming soon”.

The PRO view…
Yes, Twitter is a sales tool as there is no limit in terms of target-group, industry sector, the costs of the product or the product and service itself. Use it as a sales tool if you think your customers or your desired target-group is open-minded, loves last-minute offers or is ready to be engaged via social media.

The why for “No, it is.”
Nevertheless, the way how companies use Twitter to address their target-group with their sales promotions appears like some kind of old “watering can” marketing principle. Is this really time-to-market sales? Can this be called “targeting” which is the modern form of receiving sales promotions? One thing is for sure: Forecasting on such sales push activities is nearly impossible… the proof is in the test. But: once started, there is no way out. Sales promotions on Twitter are relying on the “hope” factor by offering an additional sales channel called “SomeTwitterAccountByOurCompany”.

And sales strategies go against the means of social media anyway. Sales philosophy is “We know what you want and here is your customized offer!” – social media is “We listen, learn and share what our customers want to buy from us!”.

From the airline examples we can learn that the offer is not just positive extra media promotion. It is limited in its sales power in a way that consumers need to be flexible and last-minute offer driven. Sounds a bit like the ebay way of selling…

So, Twitter sales promotions are relying on the “hope” factor by offering an additional sales channel called Twitter account. Some follow as they are just listening to the company or product development, some as they learn from the tweets and some as they want to share common knowledge. Not all followerrs really want to buy something. You are in good company when your company does not want to aggressively buy followers in order to go down the good old spam route.

The CON view…
No, Twitter is not a sales tool but more a customer service tool with the positive side-effect that you can sell indirect by giving good service, helping your customers and solving their problems in real-time. Don’t use it when you think your customers are bound to traditional cliches, rarely take the advantage of accepting fast shopping opportunities and don’t know what social media can do for them.

Spot On!
Generally speaking… – From a followers point of view (in this case meaning customers), there is a positive argument about Twitter sales promotions: Interested customers will follow (=read) the sales push tweet – uninterested won’t, they will ignore it. And customers don’t even have to delete the message like a spam mail. It is dying with the followers timelife stream…

Advice
The Critical question to ask are… Do we have a long-time social media strategy or do we just want to “drive” a short-time sales push? What have we done in the past to push our sales revenues? What worked out well? I am sure, if you ask yourself these questions, some more questions on your web strategy in terms of sales achievements will follow…

Am I right…?

Real-time is the future and real-time starts with Twitter?

It was about time to relaunch the Twitter front page and some days ago, Mashable already mentioned this next step. From the old front page it was nearly impossible to understand what this platform is all about, the new one shows what this platform could be in the future…

Twitter becomes more like a mixture of user-generated CNN, Facebook and Google in taking the best of bread from all platforms. It is a real time information exchange news service in a social networking coat.

new-twitter1
Now, their new front page focuses on their biggest benefit for every single user in the world: their real-time search engine. In placing this in the main center of attraction and attention, Twitter leaves a lot of open space for thoughts and speculations about their future strategy in expanding their business (and business value).

The new real-time strategy is supported by the three tag lines…
– Popular topics right now (main tags real-time search)
– Popular topics today (last 24 hours)
– Popular topics this week (last 7 days)

Will they finally follow the Google business? At least some kind of similar bottom up strategy can be seen in this approach. A road that Google started off some years ago…

old-twitterCompared to the old front page (see right), the main benefit of Twitter becomes more clear now for new users and makes the USP of the platform obvious right from the start.

If we are just talking about search and the business benefit of “being and knowing first-to-market”, this will be a clear winner for Twitter compared to Google where search results for certain topics can be some years old.

Real-time is the future (of news business) and real-time starts with Twitter?