Monthly Archives: May 2018

We Are At An Advertising Turning Point

Unless you never use the internet, you’re aware that something is happening in the next few days because every service and site you use is updating their terms of use. You may be wondering why you’re getting lots of emails to that effect or why sites are putting large banners to that effect on their homepage. It’s due to the start date of the GDPR. In case any of you don’t run digital businesses (which I suspect is most of you), the GDPR is a regulation that pertains to privacy and data protection for all citizens of the E.U. Because the internet is a global thing, many digital publishers and stores are extending the protections of the GDPR to their non-European consumers as well. I, for one, am very glad even though there is a good chance that it will force the ad tech business to change dramatically. It’s a big effing deal and we are at a turning point.

Let me preface this by saying that I got fed up with the ridiculous amount of tracking going on quite a while ago. Like many people, I think that tracking someone without their permission or a court order is wrong. I think it slows down the user experience and unbalances the trade of content for attention toward the publisher since tracking me beyond your content is infringing on some other entity’s territory. Besides that, it’s creepy. I don’t want to see a few weeks’ worth of ads for an item I looked up for a friend in which I have zero interest. I don’t care about ad personalization, frankly, although I know for many people it’s a much better user experience. I think only showing me ads for products and services that you think I might care about excludes product discovery and I have proof in that I’ve made many purchases based on content-based marketing but very few based on served ads.

I installed a browser extension called Cookie Auto Delete which wipes out cookies as you surf. That’s on top of Ghostery which blocks ads and other trackers. Because of that, I don’t see ads other than those targeted to things such as geography that don’t require cookies (actually, I don’t see a lot of ads period). Am I hurting my friends in digital publishing? I don’t think so since most of the cookies placed these days are not by publishers but by ad tech services that I think undermine the value of great content. They value eyeballs, not what lures the eyeballs.  Ads served directly by publishers and embedded in their content value the content. They’re not based on your ability to track me.

Am I overly sensitive? Not when I’m joined by billions of people who have installed ad blockers. If ad tech was doing a great job, that wouldn’t be happening. Would GDPR be necessary if ad tech companies respected consumers’ privacy? Of course not and I think it’s going to cripple any business that doesn’t respect its customers enough to work in the customer’s best interest. Tracking them like Big Brother doesn’t do that, does it?

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Filed under What's Going On, digital media

Mistakes Were Made

Foodie Friday, and I’ll bet that a number of you will be going out this weekend. We’ve all had the problem of placing a food or drink order and what you ordered isn’t what you get. It’s really a problem when you’ve ordered delivery. What’s more frustrating than your vegetarian pizza showing up with pepperoni or your steamed dumplings arriving fried?

Mistakes happen. I used to run an online store that fulfilled tens of thousands of orders each year. Mathematically speaking, if we performed perfectly 99.9% of the time, there are still 100 screwed up orders out of every 100,000 (and we did way more orders than that). What I used to ask my folks was to listen to the customer (and put aside their heated and often unpleasant language), apologize for the problem (even if we didn’t cause it), and solve it. Maybe they clicked on a wrong key or maybe our inventory system didn’t react in real time, telling them that something was in stock when it wasn’t. It doesn’t matter. They are customers, and it’s easier to retain a customer than it is to find a new one.

Let’s go back to our delivery example (since today is food-related!). Suppose the cook forgot to pack the drinks ordered with the pizza. How can you catch this before the customer even knows there’s an issue? Make every person in the chain responsible for checking the order. Does it match the ticket? As an aside, I always ask the restaurant to read me back my order when I place it and I’m always surprised when they don’t ask to do that themselves. If the ticket isn’t right, no matter what steps are taken along the way, the order is wrong.

But let’s suppose there is a failure and the food goes out without the sodas. When the customer asks where they are, you have a few options. Send out a second delivery person (if you have one), make a second trip (if you don’t), or empower the delivery person to hit a store near the customer and buy what’s missing. My guess is that this is the fattest, least expensive solution since it minimizes the time to correct the mistake. Another option when the customer calls to complain might be to credit back the missing items as well as some or all of what was delivered. The reality is if they care enough to call you need to care enough to keep them.

Any business is a team effort. No one can think, much less say, it’s not my job to take responsibility for making a customer happy. Whether you’re a food business or not, read back what a customer is asking. Say something if the order is right but something seems off (“oh, you DON’T want chocolate on the pizza, you want chocolate cake!”). Most importantly, be prepared for mistakes. They’re going to happen. The real challenge, beyond preventing them as best you can, is making a customer happy when they occur. How are you doing with that?

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Filed under food, Thinking Aloud

Well Aren’t You Special

I came across a quote in a report that prompted a thought about one thing I think has gone wrong in many of our businesses. Actually, it’s less about the businesses themselves and more about those of us who operate them. The study was GroupM’s annual “State Of Digital” report which I always find very informative. The quote is this:

In a statement, GroupM global CEO Kelly Clark listed automation and talent as the “big themes in advertising’s current revolution.” “One of the downsides of specialization is the increase in specialists who know more and more about less and less,” Clark said in the statement.

That’s a big problem in my eyes, and it’s not limited to the ad business.  Let me explain why, both from a personal and a professional point of view. First the personal. It’s great if you become the “go to” person on a very narrow subject. You may know a particular operating system inside and out or you may be the country’s leading subject matter expert on something else. That’s fantastic as long as nothing changes. What happens when it does? You just might have to start over if your particular, narrow skill set is no longer in demand. If you do one thing very well but no one needs that one thing, then what?

From a business perspective, having a team of specialists who can’t crossover is equally bad. Their siloed skills make cross-functional conversation difficult if not impossible. You want a team that has flexibility. Putting aside the ability to cover for other team members during vacations or peak demand periods in some area, having people with a broader knowledge base makes for a better product. Having multiple people weigh in who can consider the big picture and not just a slice of things makes for coherent, complete, well thought out solutions.

It’s incumbent on each of us to grow our skill set. In my practice, I’m called upon to provide thinking on everything from strategy to analytics to SEO to sales. Each of those is an area of specialization for some people and I know I might not be as well-versed in each of them as some of those specialists. What I do have, however, is a broad perspective (to go along with my broad experience) that lets me guide my clients. I have very deep knowledge in some areas and shallower in others. Not specializing makes me special!

If you’re not learning, if you’re not widening your range of knowledge beyond your specialty, then you’re probably setting yourself up to be less resilient when the need arises. That’s not good business thinking, is it?

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Filed under Consulting, Thinking Aloud

Are You Gaslighting Your Customers?

I did something dumb but in the process of rectifying my error, I also learned that some companies are still doing something equally dumb, which is treating their customers as adversaries. Let me explain.

I bought tickets to a concert. As a part of the purchase, I was given the option to download the band’s latest album. As an aside, I’m finding this offer with quite a few of the bands I go to see, and it reinforces the notion in my mind that recorded music is a tiny part of the music business equation these days. The real money is in touring, and giving away an album helps increase the value of a ticket. Who knows – maybe it even gets some folks who might not otherwise go to a show to get out for an evening. What is the incremental cost of a digital download? Next to nothing, but the value is high to a fan.

It was with that digital download that I had my issue. I received an email from Ticketmaster, through whom I had bought the tickets, telling me to click on a link to start the download. It began without issue, but my computer locked up about halfway through the process. I rebooted and tried to restart the download to no avail. The link is single use and I had already clicked on it. The page said that if I’d had a problem to reach out via online help.

I connected to online chat. after a 17 minute wait (during which time they did show me what number I was in the queue), on came “Luis”, my customer service rep. I explained the situation and he went to verify my order, which he was able to do.

I do not show that this artist is part of our Album offer, did you get that email from Ticketmaster?

I cut and pasted the email copy. He asked for the domain that sent it, which I gave him. Here is where the real problem begins.

We have verified the email you have received and unfortunately it is not the same as ours.

Uh yeah, Luis, it is. You’re Ticketmaster and it came from a Ticketmaster domain. But it gets worse.

I do apologize for the inconvenience but unfortunately Ticketmaster does not offer the album.

OK, now I’m angry. I feel as if I’m being gaslighted. They sent me an email about the download and it was in the confirmation email for my order, they gave me a link, the download got halfway through, the artist’s website says they’re giving away a download with each ticket order, and yet the person they have “helping” me is telling me that none of that came from them and there is no offer to begin with.

Here is the end of the discussion which followed my asking him exactly those questions. The time code, by the way, is the duration of the conversation, so we’re over a half hour of my time to clear this up:

00:32:12 Luis: Someone else may have gotten hold of your email address, and sent you the made up information.

00:33:31 KeithR : So let’s see – they know I bought tickets last night and they built links into Ticketmaster for a unique download code which now won’t redeem a second time?

00:33:36 KeithR : Is that your theory?

00:34:51 Luis : I do apologize for the inconvenience but unfortunately the email that was sent to you is not the same domain that is sent by Ticketmaster, unfortunately, since this artist is not part of the album offer shown on our end nor the artist page, we would not be able to further assist you.

Implied next sentence, don’t let the door hit you in the ass as you go away. I use Ticketmaster/Live Nation a lot. I think even they would admit that they are not a beloved entity, mostly because of the multiple and high service fees (most of which are NOT imposed by them!). Any company needs to sit on the same side of the table as its customers, helping them to resolve the problem and not sitting in the adversarial position Luis staked out for himself. By the way, I called Ticketmaster and within minutes had a customer service agent who did just that, aligning herself with my needs and sending an email to a supervisor to get my problem resolved.

I suspect I just got a badly trained or unmotivated agent the first time. I’d be curious if they’re Ticketmaster employees or an outside firm that’s paid on some basis (time on phone/chat, number of calls fielded) rather than on that aligns with customers (cases successfully resolved for the customer). Customers may not have a choice when it comes to buying tickets but they probably do when they’re interacting with your business. How are you treating them?

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Filed under Helpful Hints, Huh?, Music

Ghost In The Machine

Foodie Friday and my question for you today is have you ever been to a ghost restaurant? I’d say probably not, because the entire point of a ghost restaurant is that there is no restaurant there. Huh?

This image was selected as a picture of the we...

(Photo credit: Wikipedia)

Here is one explanation I read:

A ghost restaurant is a “restaurant” that people can’t actually physically visit. For us, it involves using our existing space, kitchen equipment, and staffing to execute a menu that’s not served in our normal restaurant. Customers place their orders and we deliver.

The key is the different menu. A normal takeout order from someplace would be the same food. Many of the “takeout” places I’ve patronized have a table or three even if the business is focused on preparing orders to go or for delivery. You probably would think of many Chinese or pizza places. Ghosts, however, don’t have to worry about decor or servers per se. Front of house is non-existent. Imagine a sit-down steakhouse that was also delivering pizza out of the same kitchen but not serving it in the restaurant other than as the odd special. Two restaurants, one of which is virtual operating our of one kitchen.

The beauty of this model is that it can overcome bad weather (which might keep people at home and not dining out) as well as maximizing the use of the kitchen, perhaps with the addition of a few more kitchen staff. You can close one restaurant at 9 while continuing to deliver from the other until midnight. Like on-demand grocery delivery, on-demand food service is a growing business and a ghost restaurant opened in an existing place can tap into that demand by formulating a menu that is delivery-friendly even if it doesn’t align with the base restaurant at all. I would never order eggs or a steak or pretty much anything fried because they generally don’t travel well (soggy fried food is gross).

Why do I bring this up and what does it have to do with your business? It’s a great example of out of the box thinking. How can you expand what you’re doing without major capital expenditures? What’s the worst, least efficient part of your business? In this case, while there is a nice margin in serving customers drinks, they tie up tables and require servers. What happens if you keep the customers but eliminate the need to have them linger or be served? A ghost restaurant eliminates the inefficiencies while retaining the base business and it doesn’t compete with it because it’s a different menu. What about your business can be “ghosted”?

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Filed under food, Thinking Aloud

DIY Failure

What do you do when you’ve done almost everything right and yet your business is failing? It’s not a hypothetical question and the answers I’ve come up with kind of scare me a little. Let’s see what you think.

The town from which I moved has fewer and fewer “mom and pop” stores. Most of them have been replaced by national chains. Main Street used to be unique, interesting retailers. Now it’s basically an outdoor copy of most malls with chain store after chain store packed in next door to one another. I still read the local news from the town in which I lived for 35 years and I was saddened to see that another one has bitten the dust. Let me explain why it raised some questions in my mind.

It was a local hardware store run by a family who is well-known in the town. As one local blogger wrote, “They’ve been the go-to place for gardening supplies in spring, rakes in the fall, paint and keys and pest control and light bulbs and a lot more whenever we need it.” It wasn’t huge but as local places go it had a fair amount of inventory and I suspect that it could satisfy the Do It Yourself needs of most folks. Therein lies the problem. The owner put it well, citing irreversible challenges, including online sales competition and the loss of skilled DIYers to a keypad culture.

Guilty as charged, sir. Much of the time I just have Amazon deliver what I know I’ll need in a day or two. Of course, in my old town, fewer and fewer people actually even do things themselves, preferring to call someone. When I changed out my first toilet fill valve here in my new place, I did think to myself that I probably would have called a plumber and paid for an hour of his or her time to do a 10-minute job – 40 if you count the time it took to run to Walmart to get the part.

This family did everything right. They were never too busy to help you understand how to do a repair or improvement job as they made sure you had the right materials and tools. They personalized everything, something the online world is still learning to do. Did you pay a little more (and it really was a little)? Yes, but you also were 100% sure you had what you needed. The market has changed, however, and competing with Home Depot or Lowes or Amazon (for the smaller number of people in town who still did things themselves) became impossible.

What would I have advised them? More in-store classes, a better online presence establishing themselves as local, available experts, maybe get a kid to deliver. Yes, the big guys do some of that too, but having the local, familiar edge could make a difference. I’m not sure any of that would have worked, but I also know that most retail is still brick and mortar, not online. I do think that competing with online as well as with giant home improvement centers, however, is too much. The benefits of technology are generally good, but in this case, tech has disrupted the local ecosystem, much as introducing a non-native predator to solve one problem can cause many others. Any local grocery stores in your town? Not in mine. Auto repair, restaurants, clothing stores, heck, even car dealers are all heading down this same path. Could your business be as well? What can you do NOW?

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Filed under Thinking Aloud, What's Going On

Soap To Soda To Gum

It’s Foodie Friday and today we’re going to raise a glass to chewing gum. Well, not to the gum itself, but to the founder of the Wrigley Chewing Gum Company, Mr. William Wrigley. While he made his fortune selling gum, he started out to do something quite different and therein lies the thought I have for us today.

English: Doublemint gum Photo by User:Hephaest...

(Photo credit: Wikipedia)

Mr. Wrigley began selling soap. Like many of us in business, he tried to distinguish his brand by giving his customers a little something extra which would help distinguish him and his product from the competition. In his case, he would give away baking powder. After a time, he figured out that his customers liked the baking powder more than the soap and so he started to sell baking powder. Along with the baking powder, he gave away two packages of gum. You can guess what happened next.

There are two things in his story that I think are relevant to any of us in business. First, giving the customers what my Creole friends call a “lagniappe” – a little something extra – always pays dividends and sometimes they’re huge. I don’t know if Mr. Wrigley’s soap (or baking powder) were premium-priced to cover the cost of the extras he gave away, but the outcome certainly negated any cost. Always ask yourself how you can do more for the customer.

At some point, Wrigley realized that he had to pivot his business because his sideline was more successful and popular than his main business. He’s not alone in this. WeWork grew out of a baby clothes business renting unused space in their building. Instagram was something that grew out of the users of a whiskey lover’s app posting photos. The founders recognized that the photo sharing was more important to the users than the whiskey information. When Justin.Tv began letting users stream videos, (having started as just one guy streaming his own life) the “gaming” channel blew up and Twitch was born.

We need to keep an open mind when we see opportunities. Yes, we can’t always be chasing the new shiny new thing, but when one aspect of our business is screaming to be given a lot more attention, we need not be afraid of making a pivot. Mr. Wrigley pivoted (twice) a century ago, and while technology has changed, the basic business acumen he displayed hasn’t. Ruminate about that!

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Filed under Consulting, food