Airport security is a sham

My team and I travel a lot. We have literally millions of air miles between us over the past decade. And we all hate airports and airlines. We mainly hate them because they lie to you. It can’t be that difficult to keep passengers up to date with what is happening when things don’t go according to plan. And “the flight is delayed due to operational reasons” means absolutely nothing at all – and they know it! But that’s another thought for another day.

Today I want to moan about the security controls in place at airports around the world. I consider myself to be reasonably intelligent, and I get paid to come up with mental frameworks that make sense of the world for other people. But airport security baffles my brain.

If you really wanted to, you can get pretty much anything onto a plane. The controls in place could be easily circumvented by anyone who travels more than once a month. If you don’t believe me, then read the wonderful article by Jeffrey Goldberg in The Atlantic in which he spent a number of months showing how bad airport security actually is. Priceless stuff!

He proves what I have often thought – that airport security is much more about making people feel that “something is being done” rather than actually doing anything useful. Hugo Rifkind in a recent Spectator magazine article goes further and suggests that “airport security is a giant exercise in arse covering – and it doesn’t work, obviously” (and that’s just the title of the article!).

Well, yes. Obviously. The new short hand for this is: #fail

It would be nice if some sanity prevailed somewhere, sometime and we got back to rational and useful security sometime soon. I doubt it, unfortunately. But I do live in hope.

Why do corporates act like machines when dealing with clients?

I am a big fan of Lucy Kellaway, a Financial Times journalist who is on a mission to expose and expunge the stupid and idiotic practices of the corporate world. Having been doing it for many years, she now has many eyes and ears around the UK, and is constantly sent excruciating examples that she writes about in her regular FT column.

In one of her most recent columns, she talks about Deloitte UK’s staff calendar, which has instructions to staff to make connections with their customers. There is nothing wrong with this, of course, but as Lucy points out, the methods and messages in the calendar are completely confused and confusing. The imagery is all wrong, the instructions seem forced and false, and the result will probably be a very artificial connection between Deloitte staff and their clients. Good intentions, but mangled by a corporate machine.

You can read Lucy’s column online here, or an extract below:

… Continue Reading

Connect with customers like you do friends

In my most resent article Onions or Parfait I put forward the proposition that companies should use new social media innovations to build relationships with customers akin to those of friendships. I strongly believe that customers want to engage in a open two-way relationship with companies that show a willingness and expend effort to build relationships. I just came across an example of 5 big brands that are using blogs, facebook and twitter to do just this. In a post by Attraction Marketing Starbucks, Zappos, Vitamin Water, H&M and Coke are identified as big brands that are actively using social media to build friendships and not just sell products.

I’m not surprised to see Zappos in this list. Zappos are innovators in creating connections with people inside and outside their organisation. I regularly use Zappos as a case study in my presentations and workshops. You can discover more about Zappos here:
Keeping employees motivated during a recession
Zappos hits one billion $ in sales
Zappos – delivering WOW through service

Zappos makes for an awesome case study in the corporate boardroom so if you are looking for ideas for your next meeting or proposal to your boss visit their website or email me and I’ll gladly offer my insights

You can read the article on Social Media 5 Big Brands below

… Continue Reading

Just because you can, doesn’t mean you should

My colleague in the UK, Graeme Codrington, posted “3-d TV is here” a week or so back. It’s a short post about Sky News launching 3D TV.  When Graeme writes he’s normally very definite in his opinion, and he’s not scared to put it out there. If you read his 3D TV post, you’ll notice he ends with a fairly ‘limp’ conclusion around the future of 3D TV. I haven’t spoken to him about his lack of definite view, but based on his post, I share his same feelings around 3D TV. I think it’s a limp idea.

• Perhaps it’s because I haven’t seen the ‘new 3D TV’s’ needed to enhance 3D in this medium. What I have seen (my kids movies) has always left me feeling a little disappointed, experience wise.
• Then there’s the idea of 3D glasses lying around my house. We already have enough of a problem storing, not standing on, dropping, and spilling things on multiple remote controls, all sorts of Wii controls, iPod chargers, iPods, etc, etc. The thought of more paraphernalia to enhance my viewing experience far from excites me.
• While we’re on the glasses, how many are we going to need? Or will it become acceptable to ask friends to bring their own? And how silly might I look with ’sunglasses on’ when friends or family come around to watch TV?

The obvious next step from 3D is going to be  holographic TV (Holy TV?) . That’s 3D on steroids. That isn’t going to need any extra goggles to watch, and while it may mean some new equipment in the viewing area, the massive leap in expeirence from what we have now to that, will be worth whatever pain I may have to go through.

Is 3D then, simply a transitional technology between now and then? If it is, I’m guessing those that run the TV world have done their sums and figure they’re going to sell enough boxes to make the investment worth it? I’m not sure it switches me on enough to get into the game. But then again, peer pressure and great advertising may be all they need to make me a convert.

Still I do think there are times when being able to do/create/buy things doesn’t mean you’ve got to. I think this may be one of those times. Time will tell, and in the mean time I’ll go over to Graeme’s house to watch on his 3D telly : )

Marketing and product development for Boomers

Appliance makers GE and Whirlpool have been quick to recognised to economic power of the silver tsunami (or baby boomers over the age of 50!) and are making great strides in product development. The Wall Street Journal in it’s article Home Appliances to Soothe the Aches of Aging Boomers provides a few examples:

- Whirlpool now offers washing machines with large knobs that make louder-than-usual noise when they’re set. They also offer a pedestal beneath Whirlpool dryer reduces stooping when removing laundry.

- At GE’s consumer and industrial headquarters in Louisville, designers use “empathy sessions” where members of the product-development team tape their knuckles to simulate impaired dexterity. GE’s Engineers and designers have been very busy “boomerising” their products and now proudly offer:
- Ovens with easier-to-open doors and automatic shut-off burners.
- Stoves designed to prevent boil-overs.
- Stoves that you don’t have to reach far into – to prevent boomers from stooping awkwardly, losing their balance and burning themselves on the hot stove!
- Fridges with brighter LED lighting to improve visibility
- Dishwashers and washing machines that allow users to put in an entire bottle of detergent a few times a year rather than a smaller amount for every load. Supposedly the machines are designed to reduce confusion and make housework less of a chore, as GE neatly puts “particularly for older consumers”.

All of these new product designs are great for “old people” but try telling baby boomers that you are selling them a product that will remind them on a daily basis that they are OLD! I’d like to meet the marketer who is able put a positive spin on this marketing message because I don’t believe it exists.

Baby Boomers may be getting old but one of their core values is that of youth and vitality. Designing a product that reminds them they are old is not going to win you any points. Rather companies need to be developing products that enhance boomers lifestyles allow them to enjoy themselves and frees up their time to go skiing (spending their kids inheritance) GE may be taping up the fingers of their product designers but they are failing to use the “empathy sessions” to help get their designers into the heads of baby boomers so that they can understand what drives them and makes baby boomers tick.

Rethinking Marketing and the age of consumer capitalism

In this months Harvard Business Review, Roger Martin writes that “modern capitalism can be broken down into two major eras. The first, managerial capitalism, began in 1932 and was defined by the then radical notion that firms ought to have professional management. The second, shareholder value capitalism, began in 1976. Its governing premise is that the purpose of every corporation should be to maximize shareholders’ wealth. If firms pursue this goal, the thinking goes, both shareholders and society will benefit. This is a tragically flawed premise, and it is time we abandoned it and made the shift to a third era: customer-driven capitalism.

I couldn’t agree more. Information is power and information has now passed into the hands of the consumer. Never before have customers been able to find information on available products and services easier and quicker, and with the rising power of peer reviews brochure style marketing is fast becoming obsolete.

In the new world of work talented companies will rethink marketing. The role and function of marketing will change quickly. Customer experience will be placed at the top of the strategic agenda at board meetings and the CCO (Chief Customer Officer) will become as important if not more important a role as the CFO. Companies that fail to identify this shift and implement these strategic changes risk ending up on the dust pile of corporate dinosaurs.

Why you shouldn’t change your Twitter Profile Pic

There are literally thousands of articles and opinions out there spelling out the ‘laws’ of how to use Twitter. If the authors of those articles were honest, they’d admit that those ’so-called laws’ are really just opinions. Their opinions. How on earth can anyone claim, at this early stage in Twitter’s life, to have a list of irrefutable laws’?

This post falls into the opinion category then. An irrefutable opinion according to me : )

I’m on Twitter everyday. Several times a day. It’s become the biggest influence in my world when it comes to learning. I’ve come to trust the voices and thoughts of a group of people, many of whom I have never met, to share their insights in a variety of fields that interest me. Even some that don’t.

I follow aprox 400 people, and as I scroll through my Twitter feed on my iPhone (I use 4 different Twitter Apps) my most relied upon method of finding those people I really enjoy is through their Twitter Profile Pic. I imagine I should be using their usernames for this, but I don’t. I’m a picture person. I possibly should be using ‘Twitter Lists’? I don’t, I’m a picture person.

And so when someone updates their image I lose them in the noise of my stream. It sometimes can take me weeks to re-orientate myself to their new image.

And that’s my irrefutable opinion then. It’s also a plea to those interesting people I rely on everyday. Don’t change who you are. You don’t need to update your ‘image’. I’ve come to like and appreciate you just the way you are : )

P.S. While writing this I found a mildly amusing post on 10 types of Twitter Profile Avatars. Click here to see for yourself.

A banking revolution?

Accenture recently put out a report entitled, “Banking 2012: Preparing for a revolution”. How I’d love to believe they are right. The executive summary says that the banks that will succeed are those that focus on transparency, simplicity and renewed customer-centricity. Amen to that, I’d say. But there is more to this report than just those obvious statements.

The very foundations of the industry of banking have been shaken. The institution of banking is changing. The rules for success and failure have been rewritten, and legislation is now being crafted to push that even further. These are unprecedented times. This report by Accenture sheds some light on the very immediate future, and is well worth a read. Read the summary at Accenture’s own website, or right click here to download a PDF from their site. Or read extracts from it below.
… Continue Reading

Building values into business

Customers have changed, it’s not just the recession and current market turmoil, there has been a values shift in societies attitudes towards business, finance and consumerism. Our research undertaken in TomorrowToday’s laboratory is revealing that values-focused businesses are the way of the future. If you want your business and brand to be part of a new breed of talented companies and not to end up on the rust pile of corporate dinosaurs then your business needs to be built around connecting with people’s values. The new world of work demands that companies focus their organisation around social and personal values and not just corporate values. Corporate values are the old model traditionally involving trust, integrity, honesty and innovation. These values are now only the base level requirements. Companies in the new world need to go deeper connecting with more far-reaching personal values. People seek relationships with companies; they want a place to be heard, a place to be appreciated and a place to connect. New social technologies are allowing us to build relationships with customers previously not possible. Connecting on a personal values level can place you ahead of the competition in winning the hearts and minds of your customers. The bottom line is if you don’t align with society and you get out of step with value changes, then you’re going to destroy shareholder value.

Tesco, a talented company

I’m always on the lookout for talented companies and I think I found one on my doorstep. The company’s name is Tesco and earlier this week I gave our Mind the Gap presentation at their marketing team away day.

I’m a fan of Tesco (and have written several blogs on the company see TPF has lift off and Tesco trains their staff in generational talk) mainly for one simple reason the customer service and experience I receive when shopping there. I love the fact that they have a stated policy of never having more than two people standing at the checkout. As soon as there is a third person, a new checkout is opened, and this policy works! From the Tesco Express around the corner from where I live, to their megastores I have seen it in action without fail. It is a simple policy but its execution is genius and it keeps me going back to Tesco because I hate wasting my time standing in lines, who doesn’t!

Recently I wrote an article called the Talent Reboot and argued that companies need to be focusing on creating talented companies (by creating talented tribes) rather focusing on individual talent (as banks do). It was therefore great to find in Tesco an example of a talented tribe in action. Carolyn Bradley , Tesco’s marketing director, did a great presentation using Tesco TV adverts (from as far back as the seventies) to bring to life the history of the Tesco brand. It was amazing to see the innovative initiatives and strategies that Tesco has launched since the early 1970’s to grow its market share to nearly twice that of it’s closest competitor. What was more impressive was that this growth has been achieved during at a time when Tesco’s competitors market share has remained relatively stagnant or even decreased. But it was by observing the marketing team in action at their away day and later at their office, that it became apparent that there is more to Tesco than innovative ideas, they are been building talented tribes.

The team spirit I observed at their away day was amongst the best that I have ever seen. I was privileged enough to be given a tour of their very unassuming head office and treated to lunch at the staff canteen (I had a very tasty Cumberland sausage and mash). I was able to see how each marketing team had decorated their cubicles with Christmas themes, building mock chimneys for Santa and using fake polystyrene snow. The finance team won the best and most imaginative design supporting the belief that within each accountant there is a creative marketer waiting to break free. The marketing team at Tesco is clearly talented and full of energy. What I observed at Tesco is very similar to what Zappos, America’s most successful online shoe retailer has achieved. Zappos is often used as a case study of a company that has created talented tribes. At Zappos teams dress up to celebrate events, decorate their team areas and are passionate about what they do – customer service.

What Tesco and Zappos appear to have in common are talented tribes and huge commercial success. They are clearly getting the ingredients right and I plan to follow their stories a lot closer.

British Airways cabin crew on strike – how to strike back!

If you’re a regular reader of this blog, I hope you’re expecting a calm analysis of yesterday’s announcement of a 12 day strike of British Airways cabin crew, effectively grounding the airline over the busy Christmas holiday season (remember schools only break up this coming Friday in the UK, so the holidays are for two weeks starting this weekend). Well, you’re going to be disappointed. As frequent travelers, all of us at TomorrowToday tend to lose our rag with airlines and airports. I am normally a calm individual, proud of being unflappable. But put me in an airport, and somehow the red mist descends…

So, here is what I can’t understand.

The cabin crew are going on strike because they’re upset. Their strike is designed is to “hurt management”, which means “to reduce company profits”. They say that they do not want to hurt customers. This is complete nonsense. If they wanted to hurt profits, they would announce a strike for at least three months in advance. There are very few people who have not already booked and paid for their flights over the next month. So, yes, BA will have to give refunds, but actually they will save money, since there will be massively reduced operational costs. The biggest losers here are not management, but the customers. And most of those are families, hard hit by the recession of the past year, who have scraped and saved up for a holiday abroad. They will lose not only their airfare, but may have to forfeit the holiday and the costs of hotels, cars, etc. And BA management will bu unhurt.

So, the cabin crews must not try that line on me. Their goal is disruption and chaos. The outcome will be heartache and pain.

… Continue Reading

In a Web 2.0 world, business has it’s head buried firmly in the sand

I’m curious. Curious about business’ lack of engagement with Twitter  / FaceBook / Tumblr / Google and everything else Web 2.0. I would have thought that any communication channel getting the sort of traction, focus, attention and subscription that these channels are getting, would have business engaging like a love struck teenager who’d just discovered their perfect partner?

But it’s not so. So not so. So far, the majority of my experience and observation is that business has been an extremely poor performer in these spaces. Take a look at these points from Jeffbulla’s Blog:

1. 73 percent of Fortune 100 companies registered a total of 540 Twitter accounts.
2. About three-quarters (76 percent) of those accounts did not post tweets very often.
3. More than half (52 percent) were not actively engaged (This was measured by engagement metrics such as numbers of links, hashtags, references and retweets.)

… Continue Reading

M-Pesa, Vodacom, Nedbank and Rob Shuter

Earlier this year Rob Shuter (head of Nedbank Retail) resigned from Nedbank and joined Vodacom as Financial Director. It was an exciting move from my perspective as I watch mobile phone companies (and technology in general) redefine how we do business. Not necessarily the companies, but users who adapt the technology to find innovative ways to run their businesses differently. The big question I was asking was what happens when someone with intimate retail banking knowledge and experience (especially of Shuter’s profile) gets a significant position at a mobile phone company? What happens after what comes next?

I’ve not seen anything obvious in the press, and have quite possibly missed it, but this week a couple of pieces of the puzzle dropped into place. Enter M-Pesa.

M-Pesa is an amazing Kenyan innovation, and describe themselves as:

M-PESA is a Safaricom service allowing you to transfer money using a mobile phone. Kenya is the first country in the world to use this service, which is offered in partnership between Safaricom and Vodafone. M-PESA is available to all Safaricom subscribers (Prepay and Postpay), even if you do not have a bank account. Registration is FREE and available at any M-PESA Agent countrywide. The M-PESA application is installed on your SIM card and works on all makes of handsets.

My sources suggest that M-Pesa has radically transformed the banking space in Kenya and left the banks flat-footed and out of the equation. Around 15 million people use M-Pesa to transfer money and make payments. Kenyan banks (collectively) have a third of this number as customers. M-Pesa has transformed banking access to the previously un-banked, who are found predominately in rural areas in Kenya. Areas that traditional banks have little to no access to.

The person I spoke to this week had some of the following to say about M-Pesa:

M-Pesa has made the sim card more valuable than a credit card.

M-Pesa is transforming how aid is distributed within Kenya.

M-Pesa has fundamentally re-defined the banking space.

Kenyan banks have not found an ‘anti-dote’ to M-Pesa’s presense, and possibly wont or can’t, simply because they’re unable to redefine themselves.

Maybe a little over-enthusiastic. But the hype and the numbers do confirm his thoughts.

Enter Shuter, Vodacom and Nedbank….

What if Vodacom’s next move is to bring M-Pesa to South Africa? Both Safaricom (M-Pesa’s master) and Vodacom are subsidiaries of Vodaphone. Certainly they have someone with huge retail banking experience in Shuter, and he has intimate knowledge and I imagine a solid relationship with Nedbank.

What if? Watch this space. This may be what happens after what comes next…..

Nike’s considered sustainability programme

Nike has some aggressive sustainability targets. Nike CEO Mark Parke believes that corporate responsibility is no longer a staff function at Nike. It’s a design function, a sourcing function, a consumer experience function, part of how we operate.

Lorrie Vogel is the general manager of Nike Considered, Nike’s in-house sustainability think tank says that the long-term vision for Considered is to design products that are fully closed loop: produced using the fewest possible materials, designed for easy disassembly while allowing them to be recycled into new product or safely returned to nature at the end of their life. By 2011, 100 percent of footwear will meet baseline Considered standards, apparel by 2015 and equipment by 2020 – creating better performing products while minimizing environmental impact by reducing waste, using environmentally preferred materials and eliminate toxins.

Wikipedia says that the “Nike Considered line utilizes materials found primarily within 200 miles (320 km) of the Nike factory which reduces the energy used for transportation, diminishing the resulting climate change impact. The manufacturing process reduces solvent use by more than 80% compared with Nike’s typical products. The leather comes from a tannery that recycles wastewater to ensure toxins are kept out of the environment, and it is colored using vegetable-based dyes. Hemp and polyester are used to make the shoe’s woven upper and shoelaces. The mid-sole is cut to lock into the outer sole, reducing the need for toxic adhesives. The shoe’s outer sole includes rubber made from recycled factory rubber waste. Considered is part of a larger effort Nike has been undertaking for several years to reduce waste, eliminate toxic substances, and otherwise lessen the environmental impact of the world’s largest athletic shoe manufacturer. The company has a publicly stated goal to “Minimize or eliminate all substances known to be harmful to the health of biological or ecological systems.”

You can read a recent interview with Lorrie on CleanTechnica’s blog and I’ve sourced an excellent MIT case study for you on how Nike is becoming more greendownload an MIT case study, alternatively contact me and I will send you the report

Funtheory – changing people by having fun

TheFunTheory.com is a website dedicated to the thought that something that is fun is the easiest way to change people’s behaviour for the better. Be it for yourself, for the environment, or for something entirely different, the only thing that matters is that it’s change for the better.

There are some great examples of this theory. My favourite is the sticker of a fly that has been put in men’s urinals – when men have something to aim at, they aim at it! And this has reduced mess in the men’s room dramatically. Simple. Fun. Works.

I like it. Check out The Fun Theory for lots of other examples.

Vacation 2023 – I don’t want to go

I just read a fairly depressing forecast (from FastCompany) for the future of vacations. Specifically the year 2023. It’s based on the fuller article from ‘Forum for the Future‘ where they’ve developed four scenarios for 2023 in the tourism world (specifically the UK). A brief summary of the four from the FastCompany article:

In the “Boom and Burst” scenario, economies prosper, advances in air travel make vacations cheap and easy, and fuel efficiency has allowed the industry to stay on target with carbon emissions regulations. But there’s a catch–the massive increase in tourism leads to overcrowding in many destinations and the degradation of wilderness areas.

The more dire “Divided Disquiet” scenario imagines that a “toxic combination of devastating climate change impacts, violent wars over scarce resources and social unrest has created an unstable and fearful world. This has made traveling overseas an unattractive proposition,” so most people just stay home. In the “Price and Privilege” scenario, high oil prices make travel the exclusive domain of the rich, while the “Carbon Clampdown” scenario imagines that the government has regulated climate change and educated the public so thoroughly on the carbon price of travel that most people only want to take “ethical vacations” to volunteer or learn about other cultures.

The reality of vacationing in 2023 will probably be a combination of these scenarios, with high oil prices, disappearing wilderness, carbon quotas, and advances in air travel (i.e. biofuel-powered planes).

It does help give some perspective as to why wealthy people around the world are currently buying up coastal properties and game reserves. Simply because, in the future these investments will be worth massive amounts of money.

To download the full 2023 tourism report go here.

This is not your father’s Mail strike

I am sitting in a hotel in Birmingham, watching the live press conference where the CWU is announcing that the planned UK postal strike will go ahead from tomorrow (Thursday, 22 October 2009). There is the typical bluster of Unions to Employers rhetoric, and I have little interest in the details of the strike.

The point I want to make here is that the parties involved – specifically the unions – have failed to understand that the world has changed. I was speaking to someone earlier this week who lived through the postal strikes in the early 1970s. He was at boarding school, and the postal strikes effectively cut them off from the world. There were very few private couriers then, and they were hugely expensive (he remembers the first class stamp cost 4p, and a courier would charge over 40p!). Postal strikes in the 1970s could cripple the country and devastate the economy.

Today, strikes will do little more give the economy a kick in the shins and a slight bruising. But, the ageing dinosaur that is Royal Mail has not been trusted for some time now.

… Continue Reading

Don’t miss the 7th annual Loyalty World conference

We’re very excited to announce that TomorrowToday has teamed up with the talented team at Terrapin and Dean van Leeuwen (Co-Founder of TomorrowToday UK) has been asked to present at the prestigious 7th Annual Loyalty World Conference in London on the 4th of November. Along with a number of other distinguished speakers and industry experts including Luke Johnson Chairman of Channel 4 and Risk Capital Partners, this is a unique conference designed to assist you in understanding all the complex elements that go into designing a successful loyalty strategy. The economic crisis is forcing a change in customer attitudes and priorities. The age of consumerism is all but over and people’s buying habits are changing.

Dean will be presenting Mind The Gap – focusing on how we can use people’s values to build stronger customer relationships and hence greater loyalty. He’ll also be showing the audience why it is we don’t always understand people older or younger than ourselves and why achieving customer loyalty often feels like trying to herd cats!

For more information and to register for the event please visit the Loyalty World website

Surprise! Creating experiences for your customers

For many years now, we’ve been telling our clients that one of the keys to connecting with younger customers (Generations X and Y) is to add an experience to your offering. No longer are the traditional “Ps” of marketing (product, price, placement and promotion – and even people) enough. You need to create experiences that transcend these, and give customers a further reason to connect with you.

Some people are talking about tribes (see, for example, a great video by Seth Godin at TED.com). Others are doing funky stuff with their stores (Walt Disney have Steve Jobs to turn their stores in mini theme parks, for example). There are countless examples of creating experiences that develop your brand (Red Bull are geniuses at this).

But here’s a new one…

Hipstery ask their customers to fill in a questionnaire about yourself. They then choose a T-shirt design for you, and send it to you. It remains a surprise until you open the package. This adds an interesting thrill to the boring task of choosing a T-shirt.

It seems that while most companies are providing ever more choice and ever more information, there is a growing trend of businesses relieving consumers of the burden of decision, and helping them make choices. Obviously this can go wrong. So Hipstery will replace any t-shirts that customers don’t like, with the option of a refund if they’re wrong the second time too. Sometimes a lack of choice is a good thing, especially if it is used to surprise and delight consumers.

Nice one.

Power of Mobile Money

In the early 1990’s I started work for one of South Africa’s largest banks. The most innovative project I worked on was the use of smart card/chip technology to enable people to purchase items using the smart chip inside their mobile phones. I thought it was the best idea out! Back then mobile phones were the size and the weight of a brick, but the advantages of the mobile chip technology in financial services seemed limitless. The project though never gained traction because the bank was concerned about handing over too much power to the mobile phone operators, and eroding profits.

So it was with great enjoyment that I read the Power of Mobile Money article in a recent Economist. This article illustrates the power behind markets and shows how even the poorest farmer in Africa can force bank managers to support one of the best financial innovations of recent years.

You can read the article below or follow this link to The Economist

The power of mobile money
Sep 24th 2009
From The Economist print edition

Mobile phones have transformed lives in the poor world. Mobile money could have just as big an impact

… Continue Reading

WTF, Google?

FastCompany has a great post, with the same title as this post, on some of Google’s glitches. Of course, as they point out, when you’re processing the volume of stuff they are, they’re bound to make a few glitches. They mostly relate to attempts to return searches and ads that are in line with what the user has requested, and then royally messed up. And a couple of them are royal.

My fave of the bunch they showcase is this one. It’s a Google Ad within an article someone’s written. Certainly not the kind of ad you want period, and definitely not at the beginning of an article like this:

I’m sure there are some that love that Google doesn’t get it right every time (Microsoft and Yahoo!! come to mind) but I like that technology isn’t perfect and that it creates some humour for us every now and then : )

The emergence of Neuromarketing

Traditional market research has it’s limitations when one considers the influence of the ‘observer’ on the ‘observed’ when attempting to understand people’s true thoughts and feelings on the product/brand/service being researched. If we could just get into their heads to withdraw a pure brain impulse without the constraints traditional market research introduces in the mechanisms it uses. Enter Neuromarketing…

Neuromarketing is the practice of using technology to measure brain activity in consumer subjects in order to inform the development of products and communications–really to inform the brand’s 4Ps. The premise is that consumer buying decisions are made in split seconds in the subconscious, emotional part of the brain and that by understanding what we like, don’t like, want, fear, are bored by, etc. as indicated by our brain’s reactions to brand stimuli, marketers can design products and communications to better meet “unmet” market needs, connect and drive “the buy”.

FastCompany posted an article recently that explores the issue and the companies that are using this new ’science’. It also suggests a few shortcomings and some interesting ethical concerns.

Neuromarketing is only poised to grow in use and influence. But as the practice makes its way out of the lab and into the real world, at the grocery aisle, onto your computer perhaps…a debate, well beyond marketing, will rage.

Oprah and Supply Chains

We all know about Oprah’s ability to significantly impact sales. In both directions. She loves it, we love it and we buy it. She hates it, we hate it and don’t ever buy it. It’s one of the reason’s, I suppose, that her business is as large as it is? Started as a simple talk show, added a ‘home shopping network’ component, and now she moves markets (and I’m sure a whole lot more)

I enjoyed this article from CIO because it moves from sales and profits and focusses on supply chains and logistics. I suppose it’s an obvious curiosity, but it does create an interesting question around logistics and supply planning for a product being Oprah-tised.

There’s a great case study exercise around Amazon.com and their Kindle being Oprah-tised. Even the highly efficient Amazon didn’t seem to cope with the added demand apparently created by Oprah.

“The day of the endorsement, visits to Amazon’s website were up 6 percent over the previous Friday, according to Experian PLC’s Hitwise. Web traffic going from Oprah.com to Amazon.com increased more than 15,000 percent.”

Mom’s are big

Every now and then I discover thoughts from marketing experts exploring the value of women between 35-55 and in this example mom’s. Their research and observations remind the marketplace of the value of the people who match the criteria of these segments, and how over-looked they are from a marketing and communication perspective. They either have incredible spending power, or massive decision rights in their world, or are inhabiting a particular channel that isn’t effectively communicating to them.

The Israeli Diamond Industry web site has an article around social media and mothers titled, ‘Mothers use FaceBook, Twitter, Blogs more than average adults’, and again suggests the retail world is missing a trick if they’re not using these platforms to speak to them.

“Retailers who aren’t engaging customers through social media could be missing the boat. Twitter, Facebook and blogs are becoming increasingly popular with moms as they search for coupons or deals and keep in touch with loved ones. The web provides efficient, convenient ways for brands to stay in front of their most loyal shoppers and attract new ones.”

I am always left wondering if these segments have been overlooked for so long is it because there isn’t an effective way to single them out, or is it because companies aren’t wired to see them. Reminds me of that quote that goes something like this, “Do we look at what we see, or do we see what we look at?”

Viva Themes – They rock

It’s often really easy to moan about bad service and poor customer facing performance. But when good things happen I often make the note, but never ‘post it’.

As many will know we’re currently embarking on a re-branding exercise. No easy feat for a small business. At times like this you wish you had a team of people dedicated to the task. It happens on the fly and isn’t ever completely done, as you spend the next few weeks tweaking and changing.

We use Wordpress as a backend for the sites we keep. And so step one was finding Wordpress themes that would do what we needed and then work with the look and feel we had decided on. For those of you who know, there are literally thousands of themes available, so many hours were spent just working through what was available.

We have a blog (connectioneconomy.com) and 3 websites (tomorrowtoday.uk.com / tomorrowtoday.co.za / tomorrowtoday.biz)

For the blog we chose ‘Massive News’ from Press75. And for the websites we chose ‘Revival’ from Viva Themes.

Because our team’s main focus is researching future trends around people and business, our web development skills aren’t nearly close to what we wish for (although we don’t think we’re too shabby on the bell curve distribution). I’m glad we chose ‘Revival’ from Viva Themes.

Moving websites isn’t ever as easy or as simple as you imagine when you start out. So having Mike at Viva Themes respond to us within 24 hours every time we called for help was a massive win. He was also to the point and ‘easy to use’. It never felt like we were being a pain, and he always gave clear and simple instructions. So simple even I was able to follow.

We’re almost done (whatever that means) tweaking and changing, and things are looking pretty much like we wanted them. The UK team have the next task of moving across to Revival, but we have the SA sites looking and feeling like theirs.

Our next goal is a commerce site for our resources. We’re a little while off that at the moment, so I’ll wait for then before I put out any more info : )

The world is changing cell phones

Once upon a time cell phones changed the world. They arrived when we didn’t expect them, and allowed us to do things we never imagined possible. We can quite safely say that our world today (where cell phones have had an influence) bares scant resemblance to the world of 15 years ago.

But people, being who they are, mastered the new opportunities cell phones created and we have individually and collectively pushed cell phone manufacturers and network operators into spaces they once never imagined possible. It’s a lovely example of what we’re capable of with opportunity, resources and a little time to tinker.

FastCompany recently published an article focussed on one cell phone manufacturer, the world’s largest, Nokia. If the article is to be believed then I am incorrect calling them a cell phone manufacturer. They no longer see themselves in that category. As to who they are, not even Nokia is certain?

“Just three years ago, we were competing against Motorola, Sony Ericsson, some Korean players, even Siemens,” he says from his office in Espoo, Finland, just outside of Helsinki. “The competitive environment in the industry at large has changed, and I sometimes struggle to define what industry we are in at the moment and what are the boundaries. But remember, I spoke in 2001 about putting the Internet in your pocket. And now consumers are realizing that these devices are not just for communicating by voice: It is all about information.”

While cell phone companies once significantly impacted how we saw the world, their new task is to take our post-cellphone worldview and re-imagine themselves for the future. That is if they’d like to stay in business.

This article is a great read. One worth sitting through to get a glimpse of a global leader finding their way in a world they’ve had a large role in influencing.

Seeing the world through your customer’s eyes – your key to growing your business

I regularly write articles for magazines and journals. Some of these really strike a chord, and just “work”. Here is a recent article that has been getting a lot of comment, and has been helpful to business leaders trying to cope with the economic downturn. See the original article at The Entrepreneur magazine SA, or download a PDF copy of it here.

Seeing the world through your customer’s eyes – your key to growing your business
By Dr Graeme Codrington
Entrepreneur Magazine, July 2009

In turbulent times such as these, only those companies that can prove they have real value to offer will survive. Yet, in tough times, most companies tend to focus more on their internal systems and processes than on what their customers are looking for. Seeing the world through your customer’s eyes is essential for success, especially during a downturn.

… Continue Reading

Affirmitive Action is Dead in South Africa – or is it?

Sipho Ngcobo wrote an interesting article on Money Web this last week, reflecting on the reality the African National Congress (ANC) faces around service delivery, or lack of it, in South Africa currently. He suggests that the pressure the ANC is under for 2011 local government elections and 2014 national elections will mean them compromising on affirmative action policies in favour of ensuring the right people are in the right places.

I do think he writes as more of a warning to the ANC to get it’s house in order than possibly the reality of what will actually happen. But I also do think that we need to appreciate that in emerging market economies this is a situation we’re all facing. It’s certainly not unique to South Africa.

As Ready, Conger and Hill point out in their Harvard Business Review article, ‘Winning the Race for Talent in Emerging Markets’, there is a severe lack of appropriately qualified and experienced people to fill management positions (at various levels). In the four large emerging market economies, Brazil, Russia, India and China, there simply isn’t enough supply to meet the demand. In countries like South Africa we should appreciate that if these four power-houses are struggling, then it is appropriate for us to be feeling some pain.

In the Harvard Business Review article, they set out their findings in an interesting graph that shows supply and demand for management using a scale that goes from entry level, to middle management, to country leadership, and tops out at regional leadership. Their research suggests that:

• Brazil has no supply to meet the demand from middle management upwards.
• Russia is struggling to meet the demand in all four levels
• India is battling from the first level (entry level) upwards
• China is only slightly better off, but still struggling to meet demand from entry level upwards.

One should be cautioned against assuming that academic qualification equals appropriate skills for management. I mention this because when I bring up the Harvard Business Review article people often query the number of MBA’s in India and therefore the accuracy of the data? Education is but one element that determines management ability. Those who fill management positions will certainly confirm this.

Sipho Ngcobo, in my opinion, is on the money with the challenge that the ANC faces. What the ANC does to avoid this crisis will be interesting to learn from? When the pressure is on for delivery and performance, especially in emerging markets in a world with a skills crisis, a compromise is certainly worth exploring between affirmative action policies and ensuring the right bums are in the right seats on this bus called service delivery.

Secrets of success in The Emotion Economy

The industrial economy was based on ‘make and sell.’ Take, for instance, the massive production of Henry Ford’s cars and his dictum, ‘you can have any colour you like as long as you like black.’ But, back in Henry Ford’s time there was little regard for the customer. The focus was on the production process.

Then, starting in the late 1950s, came the information economy which is based on a ‘listen and serve’ dictum. Nearly 80% of the world’s employees are now in the service industries. Microsoft is the equivalent of the Ford motor company. The focus now is on quality and customer satisfaction, ‘the customer is always right.’ Market research, segmentation models and distribution channels all contribute to making the customer ‘king’. In spite of this, customers are generally ‘faceless’ because they’re lumped together in demographic segments. And, the systems in place to meet their needs are, on the whole, inflexible.

But now a new approach is emerging. The emotion economy recognises that companies will have to take providing service and information a step further if they want to attract clients, and staff, away from their competitors. Go to a banking court and assess the points of difference between banks. Not much, is there? If you’re buying cars, cosmetics or hair care products, except for the very sophisticated and expensive, or the really cheap products, there’s not much in it today price or product-wise. Take supermarkets – you’ll find some are a little more up market than others but on the whole you could shop at just about any of them with much the same quality and service. Furthermore, people are increasingly shopping on the Internet: they will call up a trolley of products from one store and compare it with a trolley from another and then make their decision to buy. The same applies to a travel agent, or indeed, any other kind of booking agent. You’ll shop around for information on the Internet and then choose your agent, or, bypass them completely and make your own purchase.

Now comes the crunch. Which agent, supermarket, cosmetics and car will you choose? Increasingly, your decision will be based on relationship, connection, trust and emotion, and not on price, quality or speed of service.
… Continue Reading

Zappos hits $1 billion sales

A few weeks ago I wrote a post about Zappos, the online shoe and accessories company. They are a “new world” company that interests me immensely. The company just hit a major milestone 10 years in business and $1billion in sales. The CEO Tony Hsieh was interviewed recently about their success, interestingly rather than talk about the financial success of the company he focuses all his answers rather around the culture of the company, its values and its customers. You can read the interview below or visit Zappos’s website and read it there.

Tony Hsieh wants to build Zappos into a Virgin styled company, with Zappos Bank, hotels, airlines etc using ten guiding principles. Have a look at them they are not about financial returns or market share but have to do with the people side of the business…get these right and the financial rewards follow. With $1 billion sales in the bank I think Zappos is doing things right:

… Continue Reading