Revolutionary Measures

Smartphones will eat the world

Commentators are full of predictions that software will eat the world, with jobs, industries and traditional means to doing things swept away by the rise of technology. From automated journalism to connected cars, the claim is that we’re undergoing a transformation in how we work, live and play.

While Apple has not listened to my complaints ...

Software is revolutionising the world around us, but I’d contend that there’s a much more disruptive factor impacting our lives – the smartphone. It essentially provides an always-on, easy to use, ubiquitous interface with all of the software around us. Without it we wouldn’t be able to access the power of technology. So, rather than software eating the world, I’d pinpoint 9 ways that smartphones are making a meal of it:

1. Health
Smartphones have the ability to monitor our vital signs and transmit information to doctors and medical staff in real-time. Whether it is using in-built or external, Bluetooth equipped sensors, smartphones will disrupt the health industry. Apple’s new focus on building a health ecosystem is just part of this trend, which can either be seen as a force for good or as allowing intrusive snooping on our most private moments. On the plus side patients can be monitored remotely, allowing them to remain at home rather than going into hospital for certain conditions, but confidentiality of data remains a worry. What if your insurance company could access your health data and amend your premiums accordingly?

2. Taxis and transport
Companies such as Uber and Lyft are radically changing the taxi market by removing the overhead (justified or otherwise) of traditional operators. Anyone can become a taxi driver – all they need is a car and a smartphone (which can also serve as your GPS, so you don’t need the Knowledge to direct you to the right place). This does raise potential issues about safety, vetting and insurance, hence the bitter battles being fought between traditional cab drivers and the new upstarts.

3. Marketing
At no point in human history has so much data been available about individuals. The combination of ‘free’ services such as Google and Facebook that hoover up our personal information and preferences, with the geolocation data from a smartphone mean that companies have the ability to understand more about their consumers than ever before. The challenge for marketers is twofold – they need to ensure that they have real, informed consent from consumers when handling their private data, but at the same time have to evolve the skills to sift through this big data to deliver personalised marketing that drives engagement. The traditional model of campaigns that take months to plan and implement is rapidly going out of the window – if marketers can’t adapt they risk being sidelined by ever cleverer algorithms.

4. Payments
There is something impressive about a pile of cash – even if it is just one pence pieces. But carrying it around is another story. Replacing pounds and pence with the ability to tap to pay even the smallest amount with your phone promises to turn us into a cashless society. And it also removes the need for a wallet full of credit, debit or loyalty cards. All you’ll need to do is select how you want to pay on your phone and the software will handle the transfer. Could we see traditional banks and financial services companies replaced by Apple Money – or even currencies swept aside by electronic dosh? It is certainly possible, hence Apple’s move into the sector with the iPhone 6.

5. Telephones
It may be difficult to remember, but when they began, mobile phones were for making phone calls or sending text messages (and playing Snake if you had a Nokia). Now the number of calls made and received is a fraction of before, as people move to messaging, email and free voice over IP services such as Skype. Many of us already pay more for our smartphone data plans than for calls and texts – meaning that mobile phone (and landline) operators will need to evolve new services if they are to be part of the smartphone future.

6. Toys
Growing up in an analogue world, toys and games were very straightforward. Now traditional toys are evolving to embrace both full on mobile gaming (think Angry Birds) and half way houses where the physical meets the virtual. Software such as Skylanders combines playing pieces containing electronic chips with fully fledged games to give a radically new experience. And this is just the beginning. As immersive technologies such as Google Glass and Oculus Rift gain traction we’ll find it difficult to tell reality and gaming apart. How long before people embed chips in themselves to become part of the latest smartphone game?

7. Utilities
Buying power is a necessary evil – and the battery life of smartphones does mean we’ll always need electricity to recharge them. Mobile devices, combined with sensors and the Internet of Things provide the ability to monitor and adjust how we use power. From turning smart thermostats up or down, to only switching on lights when the smartphone user is in the vicinity, they can change energy use. Taken a step further, consumers could cut out the energy company and use their smartphone to buy power directly from smaller producers, adding flexibility and potentially bringing down prices.

8. Insurance
The problem with insurance premiums is that they are based on averages, rather than knowledge of your individual circumstances. The data within a smartphone, either directly monitoring your movements, or linked to a sensor in your car, provides a deeper context around your behaviour and habits. Used properly this can help better judge the risks of insuring individuals – but again used incorrectly it will cause a privacy backlash.

9. Pub quizzes
As a Trivial Pursuit expert (and part of the reigning village quiz team champions) there’s nothing I like better than the chance to show off my knowledge. But how can pub quizzes survive in an era when Wikipedia can be accessed from your smartphone in milliseconds? Short of holding quizzes in exam conditions, with no toilet breaks where people can sneak off to check answers on the internet, cheating is going to become rife, making my carefully assembled general knowledge useless.

Research shows that the majority of us access the internet more through mobile devices than traditional PCs. And 20 per cent of young American adults admit to using their smartphones during sex. We look at our phones constantly, panic if they are out of sight for a minute and feel bereaved if they are lost or stolen. If it is true that software is eating the world, the smartphone is the knife, fork and plate responsible for the repast.

September 24, 2014 Posted by | Marketing, Startup | , , , , , , , , , , , , , | Leave a comment

Sting, Simon and Sex – 20 years of the Smartphone

It seems like 1994 was a busy year – not only did it see the first ecommerce transaction (a foolish purchase of an overpriced and overrated Sting album), but also the launch of the very first smartphone. And interestingly it wasn’t produced by a traditional handset vendor, but created by IBM, thus adding to the long list of inventions, such as the PC, that it pioneered but then failed to commercialise.

English: The first smartphone "The Simon&...

English: The first smartphone “The Simon” by IBM and Bellsouth (AT&T) (Photo credit: Wikipedia)

The oddly named Simon went on sale to the US public on 16 August 1994, and had a calendar, could take notes and send emails and messages as well as make and receive calls. Aimed at the busy executive it could be linked to a fax machine in order to handle all your communication needs. However it failed to take off, only selling 50,000 units. As curator of the Science Museum’s Information Age gallery, Charlotte Connelly, drily puts its “It only had an hour’s battery, it was $899 and there was no mobile internet at the time. So it wasn’t very successful.” Personally I’m not convinced the name helped either – “Sent from my Simon” doesn’t have the same kudos as “Sent from my iPhone” at the bottom of an email.

We’re now seeing mobile and ecommerce (as opposed to Sting and Simon) converging, and driving innovation in technology. As this nifty but messy Google Public Data graphic shows, the majority of us now use smartphones as our primary method of internet access, and, aside from reading this blog, watching cute kittens and moaning on Facebook, one of our primary occupations is buying stuff. According to Goldman Sachs, global mobile commerce will hit $638 billion by 2018 – the same amount spent via PCs in 2013. While the majority will be on tablets, smartphones are an integral part of the customer journey and will make up a direct $20-30 billion of the total.

The smartphone has changed how we interact, shop and spend our free time. We are no longer ever idle – why gaze into space at the bus stop and notice the world around you when you can play Candy Crush instead? In many ways mobile technology has outstripped our capacity to adapt, leaving humans scrambling to change their behaviour to fit in with their apps, rather than the other way around. 20 per cent of young American adults (and 10 per cent of the total population) use smartphones during sex, though mercifully the research doesn’t go into any more detail than that.

So, what does this mean for startups and marketers? The smartphone is essentially our most relied upon device, and the one we keep closest to us at all times. You can link it to sensors, watches and the world around us, through Bluetooth and technology such as beacons. It really does provide a window into our lives, which has both a positive and negative impact. Speaking personally spam text messages or calls annoy me more on my mobile than their equivalents on landline or email. It is a delicate balancing act, with the consequences for misjudging privacy or security potentially extremely damaging. But get it right with your app and you can generate big profits or deliver your message right to the heart of your target markets.

The last twenty years has seen the smartphone change the world – as well as the wider device market. It has shrunk from the 500g brick sized Simon to thinner, more pocket sized smartphones (though ironically the trend is now for larger and larger devices), with increased usability and a wider range of apps aimed at consumers as well as businesses. One thing hasn’t changed though – the Simon’s battery lasted an hour, and while I get a bit longer from my iPhone, it still can’t survive a busy day without needing a recharge……..

August 20, 2014 Posted by | Creative, Marketing, Startup | , , , , , , , , , , | 1 Comment

Marketing by robots?

Technology has disrupted many industries, radically changing the roles of those that work in them. Thirty years ago, every medium or large organisation had a typing pool, with secretaries that took dictation and then typed letters, tippexing over any mistakes. Insurance was primarily sold face to face through brokers, while buying a CD involved a trip to the nearest HMV or Virgin Megastore.

Electronic typewriter - the final stage in typ...

Electronic typewriter – the final stage in typewriter development. A 1989 Canon Typestar 110 (Photo credit: Wikipedia)

It is now marketing’s turn to feel the impact of technology change. When I started in PR 20 years ago, technology essentially involved a desktop PC, a landline and a fax machine. I remember setting my heart on being promoted in order to ‘earn’ a work mobile phone and the excitement when internet access and email arrived. Things have changed a great deal, but essentially by simply automating existing processes. Rather than physically posting press releases to journalists, PRs now send an email, and marketing campaigns are now integrated and include digital channels. And you could argue that these changes have benefited PR and marketing – the sector is larger than it was, with more senior level practitioners.

However, digital business as usual is no longer enough. Marketing is now being transformed by technology, with those working in it enabled by a whole range of new tools and abilities that completely change how the entire industry operates. This is being driven by three key trends – the rise of Big Data, social media, and improved, end-to-end measurement tools.

1. Big Data – beyond the hype
We live in a world where data is being created an astonishing rate. And much of this data is personal information created on social media and consequently of interest to marketers. You can select target audiences to advertise to using the most narrow of parameters – if you want to reach one armed female ferret fanciers in Altrincham it is easy to do. But to make Big Data work for marketing, you need to learn technical and real-time analytic skills that can be at odds with the traditional annual or six monthly campaign-based approach that many people were brought up on. You also need flexibility, a desire to experiment to see what works, a willingness to learn from mistakes and a focus on constantly adapting and improving what you do.

2. Social Media – the balance has shifted
The relationship between marketers and consumers used to be balanced firmly in favour of corporate suits. Campaigns were launched at their target markets, and while there was some market testing, it was normally late in the process. Social media changes all that – consumers have the chance to have their opinions heard by a global audience instantly, uncontrolled by marketing organisations. The latest example of this is the Comcast case, where a call to cancel an internet connection degenerated into the customer service agent berating the consumer for having the temerity to try and leave. Over 3.5 million people listened to the customer’s recording of the call in just a few days. Marketers have lost control of the conversation.

3. You can measure everything
One of the traditional issues with PR used to be that it was difficult to measure. At a simplistic level you could count clippings, or even assign them a monetary value based on advertising rates, but these were crude and didn’t link to other marketing disciplines. Now you can measure everything, seeing exactly what a prospect has viewed on the way to a purchase and use Big Data algorithms to weight the relative impact of every contact on the eventual sale. Software enables you to link different channels seamlessly, so in terms of PR and social media you could see how individual articles or tweets have moved the customer journey forward.

So, some of the skills that marketing people took for granted as useful – empathy, the ability to schmooze and being good on the phone/in meetings – are no longer enough. You need to be able to use technology as a lever to better understand customers in a scalable, real-time way, and have the strategic skills to create content that will best reach them. For a traditional industry such as marketing this does mean changing how people operate – which can be uncomfortable and even threatening to experienced marketers. However the prize is worth fighting for. Marketers have the chance to not only prove the value of what they do, but increase their own standing within their organisations by taking a more strategic role. All they need is an open mind and a desire to embrace their more analytic and technical sides.

July 23, 2014 Posted by | Marketing | , , , , , , , , , , , | 1 Comment

JerkTech – the unacceptable face of technology?

It seems to be turning into a bad week for those that believe technology is solely a force for good. Firstly, the UK government has rushed through new legislation that means that ISPs and telecoms companies have to store metadata on email and phone communications (though not their actual content). The aim of the new law is to fight crime and protect the country against terrorism, according to the Prime Minister.

"Technology has exceeded our humanity"

“Technology has exceeded our humanity” (Photo credit: Toban B.)

And over in the US, there’s a growing backlash against so-called JerkTech applications. For those that have missed the debate, these are applications that let people sell on resources at above the market rate that they’ve paid. For example, Monkey Parking enables drivers who are parked in public streets to auction off their space, while ReservationHop makes reservations at hard to book restaurants under false names and then sells them on.

The key point about these apps, and those like them, is that they corner the market in publically available resources (whether parking spaces or restaurant tables) and then charge people for the privilege of using them. While this is neat in economic terms – you are taking something that is underpriced and selling it at the market rate, they remove the ability for anyone to chance upon a parking space or get that hot table. And the actual provider of the resource (City council or restaurateur) doesn’t get any benefit at all. Indeed, if ReservationHop fails to sell a booking the restaurant will have an empty table that it could have filled in other ways. Hence, the JerkTech name, as coined by Josh Constine of Tech Crunch.

The best technology is disruptive – but that does come with risks and potentially even responsibilities. In the same way that scientists and medical researchers are governed by ethical standards, just because you can do something, doesn’t mean you should. This particularly applies to ways of using technology to manipulate people (without their consent). There’s been a huge furore about a Facebook experiment where users were served a preponderance of either happy or sad content in their newsfeed – the result of this manipulation was that they posted either more positively or negatively themselves.

We live at an exciting time for technology. We’re moving beyond the original web, to a more mobile, wearable and all-encompassing version, with the Internet of Things allowing previously dumb machines to communicate in real-time in order to improve our lives. The danger is that the sheer pace of change will overwhelm everyone except for early adopters, and consequently new innovation will either be banned or will simply not be used by those that it could benefit. Genuine advances (and I don’t mean parking apps or social networks) will be lost, and there is a potential that geeks will join bankers in the category of ‘most hated profession’.

I think everyone in the tech community needs to think about four questions before they launch (or market) new innovations if they want them to flourish.

  1. Is there a genuine need behind your software, hardware or app? No, we don’t need yet another social network.
  2. What are the positive and negative consequences of your disruption? I don’t mean that a big business will be inconvenienced or will lose market share, but will it hit those that genuinely have no other source of income or add to the load on the public purse? If so, how can you spread the benefits to them, such as by creating a social enterprise or partnership.
  3. Is it ethical and responsible? In the absence of any existing code, maybe the best way to check this is to explain it to a senior citizen – do they find it fair?
  4. And finally, is it secure? Is there any danger that personal data could be hacked or lost, or confidentiality breached?

It may seem odd for tech start-ups and developers to look beyond the coolness of their technology (or the possibility of selling it for millions later in its development). However, in a world dominated by social media, the consequences of being a jerk can be fatal to your company’s success, no matter how innovative your product. So think first – and run it past a senior citizen just to be sure.

July 16, 2014 Posted by | Marketing, Social Media, Startup | , , , , , , , , | 1 Comment

Psychology and marketing – appealing to consumer needs

How do you persuade people to buy your product or service, particularly when there is an increasing number of demands on their time and wallets?

English: Maslow's hierarchy of needs. Resized,...

I’ve always been fascinated about how an understanding of human psychology can help marketers to change people’s behaviour. Whether it is nudging people to choose the ‘right’ option or appealing to the herd mind, there is a lot that marketers can learn from the social sciences.

One theorem that can help improve marketing is Maslow’s hierarchy of needs. Originally proposed by Abraham Maslow in 1943 it essentially ranks the varying needs of humans, from the basic to the most complex. The key point is that it is only when one level of requirements are met will humans then move onto the next one.

So at the bottom are physiological needs – breathing, food, water, sleep, excretion. Without these humans simply cannot function. So, if you are selling basic products, appeal to this need, but if what you offer is more complex or higher value, look further up the hierarchy.

Next is safety (security of body, employment, family, resources, health, property). We’ve all seen marketing/advertising campaigns that play to these needs, normally by warning of the dangers that a particular product or service guards against. Insurance is the perfect example.

The third layer of the hierarchy is love and belonging, covering friendship, family and sexual intimacy. This is where sex sells, and also products that deliver a sense of being part of a group. Remember the scene every week in Cheers, where Norm comes in and everyone greets him by name? That’s key to this layer. However too many brands attempt to generate a sense of belonging, but make it too corporate and intrusive, such as Starbucks’ attempt to call customers by their first name when they were buying their latte.

Above belonging is the esteem level (confidence, self-esteem, respect of others, achievement). All humans have a need to feel respected, and clever marketers exploit this by offering products that (they claim) will increase your confidence and earn the esteem of others. Buy our car/mobile phone/bank account and your world will be transformed.

So, what’s at the top of the pyramid? All the previous levels were seen by Maslow as deficiency needs and have to be not just met, but mastered, before humans can move onto self-actualisation. This is much more complex and varies from person to person, but is essentially about achieving your full potential. To do this they need accept themselves, happy in their judgement and have an efficient perception of reality.

On the face of it self-actualisers should be immune to marketing, as they can see through attempts to manipulate their thoughts or feelings. However those on the path to self-actualisation can be targeted with images that show successful people and intimate that they can only be achieved by buying particular products. Think American Express Black credit cards or most celebrity adverts – drink Nespresso and you can be George Clooney!

I’m not saying that the hierarchy of needs is the sole way of planning marketing campaigns or boosting sales. But understanding which level your product best appeals to is a good way of focusing your efforts and going beyond features to look at what the customer is looking for. And that can only lead to better targeted products that consumers actually want, after all.

Enhanced by Zemanta

March 26, 2014 Posted by | Creative, Marketing | , , , , , , , , , | Leave a comment

Lego – the marketing

English: A 2x4 red plastic brick like a Lego b...

Everyone loves Lego – except of course when you tread on a brick with your bare feet or cannot see the living room floor for brightly coloured ‘creations’. So it is a bit of a surprise that we’re only just seeing the first full-length Lego movie (imaginatively titled The Lego Movie) hitting UK cinemas now. We’ve already had short Lego films, pastiches of other films (my personal favourite is the Camelot song from Monty Python’s Quest for the Holy Grail) and innumerable video games.

As a parent of Lego-age children I’m sure I’ll be visiting the cinema to see it this half term, but what has really impressed me is the marketing around the film. As well as the traditional online, cinema and print ads, Warner Brothers have looked further afield. For example, the whole of one ad break in Dancing on Ice was made up of traditional adverts, re-shot entirely using Lego characters and bricks. From BT to Travelodge, it didn’t really matter how good the original ads were – the Lego ones were a whole lot better.

It didn’t end there – the Culture Show ran a special programme on the impact of Lego on architecture and even David Beckham got in on the act, claiming that building with the stuff calms him down and that he’d just finished a 1,000 brick model of Tower Bridge. VIP tickets for David and his kids must be in the post. At one point I even expected a Lego character to turn up as Top Gear’s Star in a Reasonably Priced Car (or the Stig to remove his helmet to reveal a yellow, brick-like face.)

And this has been backed up by a very active social media strategy, dating back a number of months. This sends you to a website where you can create your own mini figure which you can turn into a poster, icon or wallpaper.

Of course, Lego the Movie (and indeed the overall brand) has a big advantage over a lot of its competitors. It is intrinsically linked to pretty much everyone’s childhoods, and the urge to create is something that most of us don’t grow out of. However the company has used its strengths and extended itself very naturally to the film and online spaces (witness its CUUSOO site where the community votes on potential new models). Consequently people have flocked to the movie and a sequel is already in the works.

We can’t all have the brand power of Lego, but brand marketers and startups alike can learn a lot from how the company operates. It is open, friendly and inclusive, great at customer service and most importantly, doesn’t rest on its laurels. There is always new stuff coming out – from electronics-based Mindstorms to more traditional models. Children and adults love the Lego experience and have an emotional connection with the brand that grows over time. You don’t really grow out of it. Look at your own company – how can you build your own little bit of Lego into the DNA? Minus the painful standing on a brick, obviously.

Enhanced by Zemanta

February 12, 2014 Posted by | Creative, Marketing, Social Media | , , , , , , , , , , | Leave a comment

Pick up the phone!

Telephone

Everyone in business today has a plethora of communication channels to choose from, split between analogue (face to face, phone) and digital (email, social media, text, web). But is it a good thing?

As a member of Generation X (roughly defined as born between the mid 1960s and early 1980s) when I started work in public relations the only ‘digital’ communication was the letter (and extreme cases of urgency the fax). So analogue channels were pretty much the sole way of interacting with colleagues, talking to clients and pitching to the press. That meant that you had to develop verbal communication strengths such as being able to respond quickly to questions, give succinct answers and carry a conversation.

And PR was typical of all professions at the time – we were forced to speak to people (even if it was scary) and consequently got reasonably good at it.

But this has changed with the entry into the workplace of Generation Y. Weaned on new technology, these digital natives never had to learn to use email, social media or text as new channels – as far as they are concerned they’ve always been there. Lots of people I know comment on how much quieter today’s offices are as people are simply not on the telephone.

Which brings me to my issue. At the risk of sounding old, Generation Y need to start picking up the phone rather than hiding behind email and social media. It is very easy to craft a wonderful email, hit send and believe the job is done. Research quoted in Fresh Business Thinking found that 1 in 20 18-24 year olds is terrified of using the phone in work – and I reckon that’s a gross underestimate. The survey also found that 40% of 18-24 year olds were made nervous by telephone communication, against 28% of the total workforce.

We’ve all ducked making that call and sent an email instead (whatever generation we are), but here’s three reasons I think it doesn’t always get results:

1              Lost in transit
Most people get hundreds of emails every day and with the best will in the world it is easy to overlook one out of the many, whether deliberately or not. So the end result is that you don’t get a response and either have to re-send the email or try another channel.

2              Lost in translation
Even if everyone in the email conversation speaks the same language the chance of misinterpretation is high. Something that you can explain verbally can appear rude or just unclear, giving the wrong impression or leading to being ignored.

3              Lost in the gaps
With a phone call, or face to face, you need to think on your feet and try and build a rapport. You can change your tone, explain things and actually persuade someone by listening to what they are saying and responding accordingly. You simply can’t do that on email. While someone might come back with a question they are more likely to just hit delete and move to the next email.

I’m not Luddite enough to suggest going back to the days of telephone only communication, but people need to understand that there are advantages and drawbacks to every channel and pick the right one for each particular task. That might be email, social media or text – but it is vital that today’s workforce doesn’t neglect the telephone or we’ll end up as a nation of business mutes rather than engaging communicators.

October 30, 2013 Posted by | Creative, Marketing, PR, Social Media | , , , , , , , , , , , | Leave a comment

Moving marketing into the future

Marketing is at a crossroads. The rise of digital and mobile is providing the ability to get even closer to customers and deliver experiences that meet their needs. But like every change, it can be daunting. The discipline of marketing is moving fast and that means learning new skills and techniques to reach customers. Today’s marketer has to combine being a (big) data scientist and a technologist that can create and run web, mobile and social media campaigns with the more traditional skills of understanding customers and creating compelling propositions to reach them.

Luckily of course, being marketing, there are no shortage of gurus and conferences available to advise on how marketers can make the move to embrace digital. Unfortunately many of them may be well-marketed but are short on actionable content for the majority of businesses. After all it is no point seeing what someone achieved with a multi-million pound budget when you are scrabbling around down the back of the marketing sofa for loose change to pay for your new Facebook campaign.

That’s where the forthcoming Another Marketing Conference (25 June 2013 at the Junction in Cambridge) comes in. Designed to help marketers innovate, it features inspiring speakers and a chance to network with peers in great surroundings. I attended last year’s and found it a refreshing mix of interesting presentations and discussion of the pressing issues affecting marketers at all levels. Most importantly, I’ve used lots of what I learnt last year since then – and not just as content for blog posts. I’m not alone – according to the organisers 91% of last year’s delegates would recommend it to a colleague.

This year’s speakers include:

  • Rory Sutherland, Ogilvy, on multiple models of human behaviour
  • Richard Murphy, Nokia, talking about reinventing the company in the digital era
  • Paul Berney, Mobile Marketing Association, on reaching mobile consumers through content and context
  • Peter Waggett, IBM, discussing big data
  • Julie Roberts, TMW, on making marketing effective
  • Dave Trott, The Gate, talking about unleashing the creative spark
  • Jon Dodd, Bunnyfoot, discussing tapping into human behaviour
  • Julie Strawson, Monotype, on delivering a seamless consumer experience across multiple touchpoints

There are a lot of marketing conferences looking to advise people on what to do next. From my experience last year, Another Marketing Conference is well worth checking out, whatever sector or size of business you are in.

June 12, 2013 Posted by | Cambridge, Creative, Marketing, PR | , , , , , , , , | Leave a comment

Psychology, marketing and Twitter

Image representing Twitter as depicted in Crun...

Everyone is bombarded with marketing messages – from the moment you switch on the TV or radio in the morning to emails with the latest offers, posters by the side of the road and adverts on the internet.

The trouble is, as every marketer knows, even the most targeted consumer campaign has a lot of waste. Only 3% of unsolicited postal marketing leads to a sale and online conversion rates hover well under fractions of per cent. Not only is this expensive from a company point of view, but it also risks alienating consumers who object to being spammed with things that simply don’t interest them at that point in time.

And all of this is despite the fact that companies now hold massive amounts of data on our buying habits and can easily access our demographic profiles that we’ve provided to loyalty schemes or just posted up on the likes of Facebook.

According to researchers from IBM, the problem is that studying demographics and buying habits is a deeply flawed method. Just because you live in the same area as another 40-something bloke and earn around the same doesn’t mean you have the same interests. What is needed, according to the IBM team at the Almaden Research Centre, is to discover the deep psychological profiles of customers, including their personalities, values and needs.

There are five dimensions of personality recognised by modern psychology:

  • Extroversion
  • Agreeableness
  • Conscientiousness
  • Neuroticism
  • Openness to experience

Research has already shown that these traits link to buying behaviour. Agreeable people prefer Pepsi to Coke and if you link your product messages to excitement and adventure, it will appeal to the extroverts.

All well and good, but how can brands find out the psychological profiles of their potential customers? After all, no-one is going to go through a long personality test to give marketers the information they need to harass them.

The answer is via social media, specifically Twitter. IBM’s research has used software to analyse three months data from 90m Twitter users, matching the words people use against their values and needs. It took just 50 tweets to get a reasonable match for their personality and a very good fit from 200.

The moral of this story? As I’ve said many times, you are what you tweet. And as Sally Bercow’s court case has shown, it isn’t just words, but how they are interpreted, that define you. So be careful what you say, and if you want to put advertisers off the scent throw in a few random comments to confuse the targeting software…………..

 

June 5, 2013 Posted by | Creative, Marketing, Social Media | , , , , , , , , , , , | Leave a comment

Mapping the world

Since time immemorial accurate maps have been crucial to attaining and keeping power. Navigational maps helped first the Portuguese and Spanish, then the English to reach (and annex) new territories across the globe. Later colonialism literally redrew the map of Africa, creating countries where there were none before. Maps are critical in battle and to take stock of your resources and population.

Old military map, in German

So control of maps brings control over your subjects. As we move into a mobile device dominated future this explains the enormous battle to command mapping in your pocket, using the power of GPS and network connections to find out where you are. Nokia spent $7.7 billion on NAVTEQ, while Google StreetView has seen the search giant survey the world at a granular level. It explains why Apple ditched Google and launched its own ill-fated Maps app on the latest iPhone – the company simply didn’t want to give up control of such vital data to a third party.

Essentially knowing where you are enables companies to better understand your behaviour and target offers that fit your location and background. And that’s the positive news – it now only takes four location data points to identify a mobile user according to new research. Something that law enforcement agencies (and criminals) are no doubt very interested in.

But for all its benefits GPS isn’t as accurate as mapping companies (and advertisers) would like. Particularly in large buildings, such as shopping centres, it doesn’t give pinpoint positioning. Which is why Apple has just paid a reputed $20m for indoor mapping specialist Wifislam, which uses ambient wifi signals to offer maps accurate to 2.5m. With this level of data clever marketers could target you with an offer for Costa as you walk into Starbucks while the police could place you (or at least your phone) at the scene of a crime in a crowded city.

Apple isn’t alone in looking at indoor mapping – Google now features 10,000 floor plans submitted by businesses while Nokia’s Destination Maps product has more than 4,000 locations in 38 countries.

I often bang on about privacy and how marketers need to tread a fine line between providing targeted offers and respecting personal space. And the move to indoor mapping, combined with ways of interacting such as QR codes, augmented reality apps such as Aurasma and Near Field Communications (NFC) mean that the possibilities of tracking, understanding user behaviour and tailoring marketing could become ubiquitous. Except in the countryside, where poor mobile coverage means that if you are lucky it tells you what village you’re actually in.

The future is hyperlocal and mobile – marketers need to embrace this, but make sure that they’re getting buy-in from customers or they risk a privacy backlash from both individuals and regulators.

 

 

Enhanced by Zemanta

March 27, 2013 Posted by | Marketing | , , , , , , , , , , , | 2 Comments

Follow

Get every new post delivered to your Inbox.

Join 60 other followers