Tag Archives: Strategic management

July 18, 2013 · 8:15 am

Meet HAL, Our CMO

Anyone remember HAL? Or more specifically, the HAL 9000, one of the great screen villains of all time? Sure you do – it’s the computer in 2001. Throughout the course of the film the computer runs almost everything, including the humans. When the humans rebel, it murders them (trust me, that’s not a spoiler and you MUST see the film if you haven’t).

Hal 9000 D - Chrome

(Photo credit: K!T)

HAL is on my mind this morning because of something I read in Media Post:

Adobe Systems released an updated version of its social media platform Thursday allowing marketers to predict the effectiveness of posts before they are published.  Using predictive analytics, the feature in Adobe Social learns as it goes, refining recommendations and increasing intelligence with each action. The platform pulls in historic data from similar posts and integrates it with image data on Flickr, check-ins on Foursquare and videos from Instagram, to determine the outcome for sharing, comments, and likes.

I’m well aware that many companies use testing to plan advertising.  Focus groups are a tried and true method and I’ve used them myself.  Copy testing is part of that.  What I find creepy, however, is when this moves over to social media and it points out a flaw in many companies’ thinking.  Part of using social is being real.  It’s why I have an issue with any sort of programmatic content in general.  There needs to be a human on the other end, and not just a human running an algorithm.

Another problem is in the last sentence, above.  Programming to generate likes and sharing is specious reasoning.  That’s the sort of goal that someone looking to impress a boss who has no understanding of social media would have.  After all – things can go “viral” and generate a ton of comments when they’re used as the butt of a joke or as something negative.  Nice metrics, horrible outcome.

I don’t know about you but I can feel when it’s a computer on the other end.  It’s the digital equivalent of those nested phone menus where you type or say a response to a series of questions.  Those infuriate me .  Maybe they do you as well.  As marketers we need to have the courage to be human in social media.  Auto responders aren’t as good as human responders (properly trained, of course).  Letting a computer dictate what does or doesn’t get posted over the nuanced judgement of humans is not going to be as effective in the long run.

What do you think?

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July 15, 2013 · 11:07 am

Non-virtual Commerce Portals

I do most of my non-food shopping online and I think I might have made a mistake that’s all too common among business folks:  I assumed I was just mirroring that habits of the public at large.  I also figured that shopping malls would be on their last legs.  After all, if you never have to leave your house to go shopping or stand in a checkout line while some whiny baby serenades you, why wouldn’t you choose to do that?

Shopping mall

(Photo credit: pix.plz)

Not only am I way off base, but there is research that shows just how far wrong I am.  Despite some fairly big gains with respect to share of market by online merchants, 95% or shopping still occurs offline. According to a recent Nielsen report, in the fourth quarter of 2012, 5.4% of retail sales came from online channels, up from 3.6% in Q1 2008.  Big gains, a lot of dollars, but still a fraction of the retail world.  Why do I think this might be of interest to you?

Other than media, there is no other sector of business so dramatically affected by the grown of digital than bricks and mortar retail.  Since shopping malls have replaced the “downtown” in most places outside of major cities, they are sort of ground zero to feel the impact of this change.  Yet although many of them are suffering through high vacancy rates and others (as shown in this Dead Mall site) are dead and gone, something else is happening that is instructive.  As Nielsen found:

Malls are changing their focus and aren’t just places to buy things. They’re social centers, places for entertainment and employment hubs. They’re also transforming what consumers can expect from a shopping experience.  The line between shopping, entertainment, and community building has blurred. This blending of experiences has created an opportunity for retail to strengthen social ties within communities looking for communal experiences.

In other words, “Malls” are now non-virtual commerce portals.  I think they can go further.  Imagine a “guy” mall, for example.  Instead of Macy’s or Target as an anchor tenant, maybe it’s an indoor driving range, a shooting range, a bowling alley and a sports bar, surrounded by men’s shops, hardware stores, etc.  Why not stretch the thinking a bit and develop that property next to one that’s female oriented.   Combine each with an active social presence (Instagram and Pinterest will be very helpful here) and you’ve transformed the “mall” experience into something more akin to how people shop online.

We all need to think out of the box before they put our business in one to bury it.  You with me?

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June 28, 2013 · 9:52 am

Mixed Messages

Today we’re going to have a little Fast Food Friday Fun.

 

FATBURGER

(Photo credit: roboppy)

 

I hardly ever eat it any more (strange how my waistline seems not to miss it) but there is one outlet that I hit up every time I’m near one – Fatburger.  For those of you who live East of the Mississippi, this chain is located mostly in California, Nevada, Washington, and Arizona but there are outlets in a few other places.  Unfortunately for me, New York City just became one (but it’s in an area in which I rarely go so I hope to stay away…mostly…).

 

Why I love their burgers is pretty simple and is right there on their website:

 

Fresh, lean beef.  Never frozen patties, Cooked-to-order.

 

And they’re topped with a selection of the usual stuff – cheese, bacon, chili, a fried egg – as well as other things – grilled onions, jalapeños  yellow peppers – that one doesn’t generally find readily available but which make it possible to get the burger tuned perfectly.  Have it your way indeed!  It’s a fantastic brand promise – one to which the food adheres.

 

So you ‘re wondering why the love note on a business-blog (even if it is Foodie Friday)?  Because of the Fatburger truck tour and that:

 

The national food truck tour coincides with the introduction of Fatburger frozen beef patties in more than 3,100 Walmart stores, which will be arriving in stores by the end of June.

 

I understand why they’re looking to sell patties through the biggest retailer in the country.  What I don’t understand is instructive for any brand.  I love this place because it’s not “fast food.”  The beef is not some iced over hockey puck slapped on a grill.  What they’re selling at Walmart is a Fatburger in name only.  As an aside, I wonder if it really is the same product that goes to the restaurants or if it’s just a licensing deal with a supplier that has no connection   Be that as it may, while  they’re expanding sales they’re cheapening the brand, at least in my mind.  It’s an inferior experience.

 

Fatburger isn’t alone in making this mistake.  Starbucks instant coffee, for example, is the antithesis of the heady, fresh brew that one gets from a barista.  Luxury brands doing GroupOns has the same effect.  While driving revenues is always a goal for any brand and every business, that can’t come at the expense of the brand image or experience.

 

Let me hear your thoughts.  Maybe it will distract me from wanting a Fatburger in the worst way right now…

 

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