An open letter to American Express

Dear American Express,

I have been a loyal customer of yours for around 20 years. (Likewise my significant other.)

I typically pay my monthly statements on time and in full.

I’ve opted for paperless statements.

I pay my annual membership fee.

I even accept the fact that 7-8 times out of 10, I get charged merchant fees for paying by Amex – and in most cases I incur much higher fees than other credit or debit cards.

So, I am very surprised I have not been invited to attend your pop-up Open Air Cinema in Melbourne’s Yarra Park – especially as I live within walking distance.

It’s not like you don’t try to market other offers to me – mostly invitations to increase my credit limit, transfer outstanding balances from other credit cards, or “enjoy” lower interest rates on one-off purchases.

The lack of any offer in relation to the Open Air Cinema just confirms my suspicions that like most financial institutions, you do not really know your customers.

My point is, that you must have so much data on my spending patterns and preferences, from which you should be able to glean my interests such as film, the arts, and entertainment.

A perfect candidate for a pop-up cinema!

Next week: Life After the Royal Commission – Be Careful What You Wish For….

 

Blipverts vs the Attention Economy

There’s a scene in Nicolas Roeg’s 1976 film, “The Man Who Fell To Earth”, where David Bowie’s character sits watching a bank of TV screens, each tuned to a different station. At the same time he is channel surfing – either because his alien powers allow him to absorb multiple, simultaneous inputs, or because his experience of ennui on Earth leads him to seek more and more stimulus. Obviously a metaphor for the attention economy, long before such a term existed.

Watching the alien watching us… Image sourced from Flicker

At the time in the UK, we only had three TV channels to choose from, so the notion of 12 or more seemed exotic, even other worldly. And of those three channels, only one carried advertising. Much the same situation existed in British radio, with only one or two commercial networks, alongside the dominant BBC. So we had relatively little exposure to adverts, brand sponsorship or paid content in our broadcast media. (Mind you, this was still the era when tobacco companies could plaster their logos all over sporting events…)

For all its limitations, there were several virtues to this model. First, advertising airtime was at a premium (thanks to the broadcast content ratios), and ad spend was concentrated – so adverts really had to grab your attention. (Is it any wonder that so many successful film directors cut their teeth on commercials?) Second, this built-in monopoly often meant bigger TV production budgets, more variety of content and better quality programming on free-to-air networks than we typically see today with the over-reliance on so-called reality TV. Third, with less viewing choice, there was a greater shared experience among audiences – and more communal connection because we could talk about similar things.

Then along came cable and satellite networks, bringing more choice (and more advertising), but not necessarily better quality content. In fact, with TV advertising budgets spread more thinly, it’s not surprising that programming suffered. Networks had to compete for our attention, and they funded this by bombarding us with more ads and more paid content. (And this is before we even get to the internet age and time-shift, streaming and multicast platforms…)

Despite the increased viewing choices, broadcasting became narrow-casting – smaller and more fractured viewership, with programming appealing to niche audiences. Meanwhile, in the mid-80s (and soon after the launch of MTV), “Max Headroom” is credited with coining the term “blipvert”, meaning a very, very short (almost subliminal) television commercial. Although designed as a narrative device in the Max Headroom story, the blipvert can be seen as either a test of creativity (how to get your message across in minimal time); or a subversive propaganda technique (nefarious elements trying to sabotage your thinking through subtle suggestion and infiltration).

Which is essentially where we are in the attention economy. Audiences are increasingly disparate, and the battle for eyeballs (and minds) is being fought out across multiple devices, multiple screens, and multiple formats. In our search for more stimulation, and unless we are willing to pay for premium services and/or an ad-free experience, we are having to endure more ads that pop-up during our YouTube viewing, Spotify streaming or internet browsing. As a result, brands are trying to grab our attention, at increasing frequency, and for shorter, yet more rapid and intensive periods. (Even Words With Friends is offering in-game tokens in return for watching sponsored content.)

Some consumers are responding with ad-blockers, or by dropping their use of social media altogether; or they want payment for their valuable time. I think we are generally over the notion of giving away our personal data in return for some “free” services – the price in terms of intrusions upon our privacy is no longer worth paying. So, brands are having to try harder to capture our attention, and they need to personalize their message to make it seem relevant and worthy of our time – provided we are willing to let them know enough about our preferences, location, demographics, etc. so that they can serve up relevant and engaging content to each and every “audience of one”. And brands also want proof that the ads they have paid for have been seen by the people they intended to reach.

This delicate trade-off (between privacy, personalisation and payment) is one reason why the attention economy is seen as a prime use case for Blockchain and cryptocurrency: consumers can retain anonymity, while still sharing selected personal information (which they own and control) with whom they wish, when they wish, for as long as they wish, and they can even get paid to access relevant content; brands can receive confirmation that the personalised content they have paid for has been consumed by the people they intended to see it; and distributed ledgers can maintain a record of account and send/receive payments via smart contracts and digital wallets when and where the relevant transactions have taken place.

Next week: Jump-cut videos vs Slow TV

 

 

 

 

#StartupVic launches new-look #pitch event

The team at Startup Victoria have been working hard over the summer: not only have they brought on a whole bunch of new commercial sponsors, but they have also launched a new format for their pitch nights. The idea is to invite startup founders to register their interest in pitching to a panel of judges. The contestants get the opportunity to compete in front of a live audience, for a chance to win face time with local VC’s, along with some other startup goodies.

global_446720634It’s not Shark Tank (there’s no hard cash on offer), nor is it an open mic night (there is a pre-screening and audition process) – but it does enable entrepreneurs to test their pitch, get some early exposure, and receive some great feedback and advice. It also doesn’t matter what stage the startups are at, although businesses that already have some market traction or have built and tested an MVP are probably in a better position to compete.

The launch night saw pitches from four startups, who are at various stages of development. In no particular order they were:

Ad Hoc Media with Passenger Pad, a digital Out Of Home advertising medium for taxis, using interactive touch screens inside the cab. To date, there has been a low take-up rate of this technology by the taxi industry in Australia, mainly due to regulatory issues, but the landscape is changing. With a background in taxi electronics and hardware, the founders are about to launch with 400 taxis in Melbourne, and plan to expand to other cities. There is no doubt that using a combination of passenger, location and fare data (duration, time of day, pick-up and drop-off points), the screens will be able to offer brands and their media buyers targeted audiences and in-depth customer analytics. The challenge will be to offer advertisers a competitive rate card, especially as this is essentially a new medium: it offers viewer choice like TV, can serve up targeted content like web or mobile, and is ideal for special offers linked to location and time of day.

Global Patient Portal offers a free platform for e-health records. Having already launched in Kolkata, India with 40,000 users signed up in 11 weeks, GPP is aiming at lower socio-economic communities and emerging markets. The initial business goal is simple: to support ownership of e-health records by users. Using a combination of bootstrapping and NGO funding, GPP has been able to hire a team of “scribes” in India who sit in on patient consultations and capture the medical notes, which can then be referred to at the next consultation. (Currently, a lot of time and resource is wasted because patient records are captured on paper, which is easily lost once the patient leaves the clinic.) Commercial revenue will come from selling anonymized patient data (subject to legal compliance, privacy obligations and data accuracy) for research and policy planning purposes. In choosing to launch in Kolkata, GPP was aware that in some more affluent urban communities in India, the favoured means of patient communication is WhatsApp?, so they would be less likely to adopt a separate platform. Also, in Australia, having talked to GPs about the various government attempts to establish the e-health system for patient records, I am aware of a reluctance within the medical profession to buy in to the scheme: first, there is no financial incentive for them to capture patient data via a common e-health platform; second, why would they want to share patient data with their competitors?

prevyou is aiming to disrupt a large part of the recruitment and job ad market, by directly connecting students with job opportunities at SMEs. The two-sided market effectively crowdsources available jobs from SMEs, who typically do not have access to the hiring market or to full-time and dedicated HR resources. The goal is to streamline the hiring process, and to offer a mix of standard and premium services (e.g., video resumes, applicant screening, skills matching, personality profiling etc.) and later to add validation of applicant credentials and qualifications. In return, the business will take a commission once a job has been offered and/or candidate hired. While the focus is initially on capturing the market for casual and part-time jobs, the judges urged them to look at the enterprise HR market (under an outsourcing or white label model?). Looking ahead, there is the opportunity include student internships (although, like the legal issues with Year 10 work experience, internships and placements present additional challenges such as achieving student learning outcomes and other employment law issues).

OurHome is an app to help families manage, share and track household chores, so that children learn to take some responsibility around the house, and they can get rewarded for their contribution. It emerged out of an earlier app, Fairshare, that was aimed at shared houses. Apparently, people living in shared houses don’t care enough about whose turn it is to clean the bathroom, or are happy with paper charts and lists on the fridge door. Describing itself as “an integral household tool with indirect network effects (i.e., like Google, not Facebook)”, OurHome also claims to be the #1 chores app. Using advanced algorithms, and other features such as customisation and Dropbox integration, the app also introduces an element of gamification through rewards (intrinsic and extrinsic). For busy families, it replaces those fridge notes and task charts (although, as the judges noted, there’s no calendar yet). Of particular interest is the very positive feedback the team have had from families who have children with ADD.

Despite a few technical glitches (concerning mics and audio quality), the first new-look pitch night was a success, and Global Patient Portal won the on-line audience vote. I was luck enough to meet with one of the teams a few days later. They thought it was a useful experience, but they hadn’t quite known what to expect, and they had anticipated more of a grilling from the judges and tougher questions from the audience.

Next week: More In The Moment

 

 

 

The Great #Data Overload Part 3: Differentiating in a #Digital World

Have you noticed that what was once old is new again? In particular, I’m talking about traditional direct marketing techniques, such as door-to-door sales, print circulars, and telephone cold calling. It’s as if businesses realise that to be heard and to get noticed in the digital world, you have to do something different or unexpected, and nobody expects to see a door-to-door salesperson these days!

MBPI mostly work from a home office, and in recent months I have had door-knockers trying to sell me car tyres, energy-saving devices and fire extinguishers. That’s in addition to the telesales calls persuading me to switch phone and utility providers, take out insurance or upgrade my security software (yes, I know that last one is probably a scam). Plus, more and more local businesses and tradespeople are using good old-fashioned leaflets and letter box drops (which is interesting, given that around 58% of local search is done on a mobile device).

Why are some advertisers reverting to this form of direct marketing?

I can think of several reasons:

  • They need to cut through the digital noise and reach their target audience via “novel” promotional tactics.
  • Their products and services are less-suited to on-line or in-app purchasing decisions.
  • Their sales activities are focused on acquiring existing customers from competitors, a conversion process more likely to succeed via personal contact.
  • Or simply, the costs make more sense.

Why is it important to differentiate? 

It’s 10 years since “Blue Ocean Strategy” was published, which stressed the need to stand apart from your competition (“avoid the shark-infested waters”). The message is even more relevant today, because the ubiquity of social media and content marketing platforms means that everyone has access to the same tools, and it’s not that difficult to play technology catch up; and while there may be good reasons for your business to engage with these channels to market, you also need some alternatives, like offering direct customer engagement that is not wholly reliant upon on-line and digital. That’s why some banks are opening more branches as part of their growth and customer acquisition strategy, why some retailers are offering “buy on-line, collect in-store”, and why some service companies are moving to an integrated, end-to-end customer experience, so that customers get the same person helping to resolve their problem from start to finish.

How to differentiate?

Standing out from the crowd (for the right reasons!) is critical to attracting customer attention. Competing on price alone is typically a race to the bottom where nobody wins. Getting noticed, especially when everyone is using the same marketing tools and sales offers, may mean doing something unusual or unexpected (for example, ALDI‘s “anti-ads”) as part of your marketing campaign. Or connecting directly with your audience in a way that doesn’t rely on “Likes”, “Shares” or “Follows”.

Sometimes it’s as simple as as this leaflet (shown above) found in my letter box the other day. At first, I thought it was a flyer for a local bar. Then, I noticed it was promoting a new smart phone app. On closer inspection, the flyer comprised a printed sheet hand-pasted onto a page torn from a magazine. That’s a lot of manual effort to promote a digital product, but using a lo-tech solution that totally makes sense! (No doubt, it appeals to the hipster crowd, ’cause retro’s cool, right?) So, the element of surprise (if that was the intention) worked – it got my attention because I wouldn’t have expected to receive a leaflet for a new app.*

Next week: “Why? Because we’ve always done it this way…”

Notes

* For an interesting story on the power of the unexpected, see Adam Posner’s talk on customer loyalty programs.