Monthly Archives: December 2016

December 7, 2016 · 12:06 pm

Fighting About Data

I think everyone knows that a lot of data is collected as we conduct our daily digital activities. Google and the other search engines know what we’re looking for, Amazon and other commerce sites know what we’re shopping for, Facebook knows what we like, LinkedIn knows who we know, etc., etc., etc. These data footprints are collected and in many cases sold to marketers and their agents to allow them to serve ads to you. If any of that comes as a shock to you, I’m not sure where you’ve been for the last decade or more.

What you might not have thought about, however, is that the ads themselves collect data. How many times has someone seen it? What kind of person (that pesky data that the aforementioned guys have) has responded to an ad, and how well do the ads translate to sales (lovingly called the conversion rate as if someone is changing religions…). As it turns out, there is a bit of a controversy about who actually owns that data: the advertiser or the agency. The marketers believe that they are the rightful owners while the agency folks believe just as strongly that they are. Neither side feels that the publishers who serve the ads and, therefore make data collection possible, have much of a claim to it. Of course, even publishers came out ahead of one other group as the rightful owners in the survey: consumers.

As you can see in the chart, only 10% of advertisers and 15% of agency respondents believed that consumers had a claim to their own information. That’s tragic. Why? Because it represents a mindset that is ultimately self-defeating. It can lead to legal problems at worst and consumers opting out (if they can figure out how) at best. What have the advertiser or the agency done to give the consumer value for the data? Nothing, in my mind. One could argue that the ads they serve make possible the content the consumer enjoys, but those very ads make that enjoyment nearly impossible given the state of ad-serving today, particular in mobile.

Unless and until we on the marketing side see the consumer as at least an equal partner in our business and not as a bunch of rubes or just as “data”, the problems with ad blocking, anti-spam rules, and other protective measures aren’t going to go away. What will go away are the people represented by the very data over which the agencies and marketers are fighting. You agree?

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December 5, 2016 · 12:28 pm

Where Do Business Ideas Come From?

I participated in a business forum last week for veterans who have separated from the service and are looking to start businesses. One question that came up is about the origin of business ideas. Where do business ideas come from? Why do businesses fail? What are the best businesses to start?

Gnomes' three phase business plan

(Photo credit: Wikipedia)

There were a number of folks like me in the room who tried to provide some answers and perspective. I think where we all came out was that the best business ideas are those which solve a problem worth solving. How does one know if it’s worth solving? Well, if it’s a problem that only you have, it probably isn’t. If a lot of people have this problem you then might have a market. If it’s a problem that keeps needing solving, then you have a really good market. If people care less about the cost of solving the problem than they do in just getting it solved, you have an excellent market. And if you’re the only one with a solution that solves the problem in a way where the cost to do so is outweighed by the value you’re providing, you just might have a great business idea.

It was interesting to hear the responses as we went around the room and heard about the businesses these veterans either had started or were contemplating. Many fell nicely into the paradigm, above. In some cases, they needed help expressing their idea succinctly and clearly and in a way that demonstrated they understood the problem they’re solving and the market presented. A couple stood out as being fantastic ideas while a couple of others clearly needed more refinement and thought.

I’d encourage you to try that exercise. What problem are you solving? Is it a problem shared by enough people to make it worth solving? Who else is solving it? Why is your solution better? With those answers, you’re well down the road both to a solid business plan and to finding people who will invest in making that plan a reality. You in?

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December 2, 2016 · 1:01 pm

Food And Doing Well By Doing Good

This Foodie Friday I want to chat about a couple of food-related things I read this week and how they might translate into some thinking about your business. The first is an article (seen here) about how Nestle has figured out a way to cut the sugar in its candy. The second is something businesses are doing in Japan to help with a problem on their roads.

Nestle Crunch in most recent packaging

(Photo credit: Wikipedia)

Nestle says its researchers have found a way to structure sugar differently so that it uses 40% less. It claims this can be done without affecting the taste. As a former fatty who misses chocolate A LOT, this is good news. More importantly, it helps to address the epidemics of diabetes and obesity. Nestle is patenting the method which seems like a missed opportunity to open source something that can help a lot of people. Of course, once you file a patent the method is no longer secret so maybe others will find a way to do the same.

In Japan, as in many other countries including our own, the population is aging and the old folks are continuing to drive. My 91-year-old Dad refuses to give up the car keys and it’s something that keeps our whole family up at night. What they’re doing in Japan is to offer the super seniors discounts. In fact, nearly 12,000 seniors living in Aichi had voluntarily given up their licenses in exchange for discounted goods and services, and that was before one of the leading ramen chains (hence the food focus!) offered a discount for life to those who hand over their licenses. Since the proportion of all fatal accidents attributed to drivers over 75 has spiked from 7.4 percent to 12.8 percent, this seems like a pretty good public service.

In both of these cases, the motivation may not have been to do well by doing something good but I think that’s the effect. Who wouldn’t want to eat less sugar and not down a bunch of artificial sweeteners which are just as bad? Nestle ought to sell more candy. In Japan, safer roads help everyone, and the businesses providing the discounts can’t serve younger customers who’ve been hurt by an older driver, not to mention the older drivers themselves. Hopefully, the additional patronage more than makes up for the discount.

This is the sort of thing any business can think about. How can we do some good in our community and does that activity hold the promise of helping the business? As anyone involved in Corporate Socal Responsibility will tell you, the two things are not exclusive to one another, and I’m all for it. You?

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