Tag Archives: Strategic management

Tracking The Trackers

Footprints in sand. Marinha Grande, Portugal.

(Photo credit: Wikipedia)

Another day, another web site (well, portal in this case) comes out in favor of ignoring the express wishes of its user base.

AOL‘s new privacy policy states that it will not honor the do-not-track requests that users send through their browsers. I’ve written about this before and as someone who is very customer-focused, I can’t understand this decision.

Here is how one of the companies (the Network Advertising Initiative) administering a Do Not Track program explains it:

NAI members are committed to transparency and choice. The NAI opt-out tool was developed in conjunction with our members for the express purpose of allowing consumers to “opt out” of the Interest-Based Advertising delivered by our members…Following an opt out, (members)… cease collecting and using data from across web domains owned or operated by different entities for the purpose of delivering advertising based on preferences or interests known or inferred from the data collected (Interest Based Advertising or IBA).

Pretty clear.  The  browser you’re using right now probably offers do-not-track headers, which tell publishers and ad networks that you don’t want to be tracked. But the header doesn’t actually prevent tracking. Instead, ad networks and publishers are free to ignore the signals. Of course, when you combine users opting in to the do not track program with them setting their browser to tell sites that they do not wished to be tracked, you’d have to be pretty dumb not to get the message.  Yet of all the hundreds of sites out there, only 21 have committed to implement this program and only 2 (Twitter and Pinterest) are what I would consider major sites.

In AOL’s case, as is the case with Yahoo and damn near every other publisher, they get the message.  They’re just ignoring it.  They use excuses like “no one else is honoring them” or “the standards aren’t set yet for what can and can’t be tracked.” I read that as “our business interests supersede your desire not to receive targeted ads.”  This is short-sighted and will, I believe, result in more users doing as I do:  blocking analytics, ads, and everything else publishers use to make the content they offer better for the user.

As someone who works with clients to make money off of their digital efforts I know how vital data is.  I grew up in the ad business so I support free content paid for by your attention to ads.  But the value exchange needs to be transparent.  I think there is a huge potential for backlash as what and how users are being tracked, as well as what’s done with their data, reaches the mainstream.  What do you think?

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Filed under digital media, Huh?

Cheerleaders

It’s getting to be the weekend again which means that many of you will be watching sports.

Cheerleader of the Aachen Steelers team at the...

(Photo credit: Wikipedia)

Maybe it’s your local baseball team, maybe it’s one of your kids, or maybe it’s one of the many hours of televised sports that will be available.  The reason sports rights fees continue to rise so dramatically despite the continued fragmentation of audiences is because the market sees sports as one of the few pieces of content that really must be watched as it happens.  They’re sort of DVR-proof.

That’s part of the secret but the real truth is that sports make people care.  There is an emotional connection with the team or with a player.  If you ever played a sport I suspect there is a part of you that feels the excitement of competition again as well.  Fans are cheerleaders and maybe even more.  Some researchers have found that fans experience hormonal surges and other physiological changes while watching games.  The emotional connection is strong because, to a certain extent, whomever you root for represents you.  When they win, you do too.

That got me thinking.  How do we bring that deep connection outside of sports? How do we get them to see themselves not so much as buying products but rather belonging to a larger movement?  Apple certainly has done that.  Some mom and pop local businesses manage to do that as well.  The get their customers to root for them as they would a sports team.  Those teams are a central component to their daily lives.  How can we make our brands play that kind of role?

It certainly isn’t by selling.  When your team takes the field, they sweat and get hurt for you to win.  Are we making consumers feel that we’d do the same thing for them, or are we constantly asking them to do something for us?  How can we turn customers into cheerleaders? Something to think about.

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Filed under sports business, Thinking Aloud

The Ostrich Strategy

We’ve all heard the myth that ostriches bury their heads in the sand, particularly when they’re frightened.  It’s not true (hence a myth) – they’re probably turning some eggs they’ve laid.  We used to have a dog – a bulldog! – that would sort of do the same thing when he was scared or had done something bad.  He would turn his head away from you  – we were 100% sure he believed he was invisible: since he can’t see you, you can’t see him.

Many brands seem to be following a similar strategy when it comes to social media and customer complaints.  A few years ago, Bain Consulting conducted a study that  discovered that while 80% of companies believe they deliver ‘superior’ customer experiences to their customers, just 8% of customers agree.  Who is kidding themselves here?

It’s not an occasional problem.  Another study – this one by Social Media Marketing University – showed that 58.2% of brands receive customer complaints via social media ‘occasionally.’ 10.9%receive them ‘somewhat often’ while 4.9% receive them ‘very often.’  So what do they do, given that surveys reported in news media found that customers expect a response to a complaint posted on a brand’s social media account within one hour?  They pretend they’re invisible.  Is that a bad thing?  You tell me:

  • 58.2% of brands receive customer complaints via social media ‘occasionally.’ 10.9 percent receive them ‘somewhat often’ while 4.9% receive them ‘very often.’
  •  26.1%  of brands reputations have been tarnished as a result of negative social media posts; 15.2% lost customers and 11.4% lost revenue.

And here is the kicker:

  • 23.4% of brands not only do not have a strategy in place to manage negative social commentary, but do not have plans to develop one. 24.5% of brands are in the process of developing a strategy and 7.6% have strategies in place that are currently proving to be ineffective.

This isn’t the only survey that found businesses lacking.  Another one which comes from Sprinklr shows that 20% of companies rarely, if ever, respond to customer complaints made via social. The “ostrich strategy” is about the worst choice a business can make.  Putting your head in the sand doesn’t make the issues go away – it just makes it harder for you to hear them as they get louder and louder.  That’s my take.  Yours?

 

 

 

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Filed under Consulting, digital media