Monthly Archives: August 2014

August 7, 2014 · 1:09 pm

What Price Ethics?

So here is an interesting question for you.  I was reading the results of a study conducted by the good folks from Trade Extensions that concerned how consumers view ethics and sustainability and how they affect purchasing decisions.  When you ask people how important it is that companies behave ethically and with an eye towards sustainability, four out of five consumers regard it as important.  That would suggest that doing the right thing (whatever that may be) is a critical factor in purchasing, right?

Not so much:

When asked to rank the three most important attributes when shopping, the most important factor is price – 40% of consumers ranked this number one.  The second most important factor is value for money – 30% ranked this number one. And the third most important factor is quality –  16% ranked this number one.  Choosing an ethical company or brand when shopping is the most important factor and ranked number one for 2% of UK and US consumers.

Hmm.  So is that a license for a company to do whatever they want as long as prices are low?  Given some of the voices speaking out against Walmart, for example, over things such as foreign product sourcing, treatment of product suppliers, environmental practices, etc., apparently not.  Like most things in business, it’s not quite that black and white.  The research shows a desire from consumers to buy ethically but ultimately price, value and quality are the deciding factors.

Other studies have shown similar results.  One from Accenture found that sales and competitive pricing (61%) are by far the most critical factors in getting consumers to make a purchase. Superior products (36%) and customer experience (35%) are also key, according to respondents, followed closely by customer loyalty programs (31%) and relevant promotions (26%). Ad campaigns and celebrity endorsements trailed by a significant margin, presumably as they’re more influential in driving awareness than completed purchases.

So back to ethical behavior.  Can any company afford to ignore it?  I suspect it’s very possible to do good while doing well and to enhance the quality of consumer’s lives in an honorable way.  Maybe it’s not much of a selling point because so few companies have that focus?  What is your take?

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August 6, 2014 · 1:15 pm

Experts? Hardly.

You may be following the saga of Foursquare as it tries to find a business model that works.

Foursquare Logo

(Photo credit: Wikipedia)

The bloom of collecting badges has clearly worn off and almost every app has some sort of check-in feature to let your friends know where you are. Now Foursquare seems to be moving in a direction that will let them compete with Yelp (which has a good business model) and are splitting off the check-in part of the service into another app (Swarm).
Maybe you got the same email I did the other day which talked about their new feature called “Expertise”:

In the new Foursquare, we want to reward people who share their expertise, helping other people to great experiences. When you leave great tips, you make progress. And, the more people like or save them, the faster you’ll earn expertise.

It goes on to say that all of the tips you post thereafter will show they were posted by an expert.  On behalf of people who actually DO have some expertise on a few things, may I call BS?  I’ll even go further: I’m offended.

I’m offended because any moron with the price of dinner and a mobile device can write a review which may be complete blather and very inaccurate. I have no problem there.  But if they do so 10 or more times, does that really make them an expert or just a blithering idiot?  How is anyone to recognize the real experts?

I’m offended  because Foursquare is doing something that I find offensive among a number of content companies.  They are using the very same audience they sell to marketers to make their product.  The reward to the consumer for doing so?  An ego trip:

Once you’ve earned an expertise, we both mark your tips as coming from an expert (so the world knows), and make sure more people see them because they’re high quality. And, when you’re looking for great things to do when you’re at a place, you can see which ones come from experts.

How about something more tangible – a gift card, a weekly sweepstakes, anything that reflects the value of the contribution?  Foursquare seems to believe the famous Woody Allen quote that showing up is 80% of success.  If you show up at a place and write about it, you’re a success – an EXPERT!  My take?  Hardly.  Yours?

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August 5, 2014 · 11:33 am

You HAVE To Read It – It’s My Birthday – Again!

I realize that might be the most ridiculous post title ever but it happens to be true.  It’s also the post I wrote last year on this day.  I’m going to tweak it a bit to reflect that I’m a year older but in reading it again, I kind of liked it.

A picture of a birthday cake

(Photo credit: Wikipedia)

OK, not that this is a must-read, but it is, in fact, my birthday.  Maybe there’s an attention whore living deep inside me although I suppose any of us who dump our thinking on to the World Wide Web have some of that.  In any event, birthdays are one of those occasions that prompt introspection.  My favorite author, Mark Twain, said that when he was a younger man he could remember anything whether it happened or not.  Much of what you read here is exactly that – what I remember or have figured out along the way.

I turned 59 today.  I’m not much of a numerology guy, but since today is 8/5 I thought I’d look up what meaning is associated with my birth date.  Apparently 5 is associated with freedom. “5” people seek change and adventure.  What stood out to me was that 5’s are naturally curious and are  constantly trying to find the answers to life’s questions (maybe there IS a reason I’m writing!).   5’s are very persuasive and excel at motivating people which makes them ideal candidates to become salesmen.  Given the early part of my professional life, that fits.

8’s are born with natural leadership skills. We’re very ambitious and goal oriented, with strong organizational skills and broad vision.  I don’t know how they figure this stuff out but I like the thought.  It also applies to what I’ve been doing for the last 5 years as a consultant.  Of course, one can add the 5 and 8 together and get 13, a lucky number in numerology.  For me, that applies as well: I’m fortunate to have my health, a great family, many friends and more close friends than to what one ought to be entitled in one lifetime.

Then there is my full birthdate number, including the year.  I’m a “33,” a “master number”, which is a big deal to numerology people:

Qualities: responsibility, consciousness, mysticism, compassion, indulgence. It provides: ability to worry about other people, resolution of conflicts. Goals: to bring a transformation to society.

I don’t have any big business thoughts today – I’m giving those a rest so I can enjoy the important stuff.  Yes, I’m working but I’m doing so with a smile on my face as I get Happy Birthday calls.  The hard part is holding this feeling for the other 364 days and the realities of business show themselves.  Hey – maybe there IS a business point today.  Thanks for reading – that’s a gift any day.

 

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