Reasons to be grateful: “random acts of generosity” for ecommerce

June 22, 2009

Interesting article in Sunday’s New York Times Magazine about Hyatt’s new “random acts of generosity” marketing approach:  by offering their guests random freebies like free massages and drinks during their stay, Hyatt hopes to win over grateful customers and keep them loyal.  From the article …

Its even better to give ...Jeff Zidell, the vice president who oversees Hyatt’s Gold Passport program, underscores the importance of surprise — both that the favors are “unexpected” and that there’s no discernible pattern to which customers will get them.  The hope seems to be that these grateful customers will reward the chain with future business and also spread positive word of mouth.”

Building generosity into ecommerce

Companies building online interfaces for e-commerce should take note:  inserting seemingly random acts of generosity into the online experience could add up to big wins in terms of enhanced user experience.  Some of the ways companies can do this might include:

  • Save some “specials” or “giveaways” for later in the shopping process, perhaps during check out rather than promoting them up-front.  Specials might include price off or free shipping, a discount off of an additional item, etc.
  • A free coupon for their next order inserted into the package or even a free (low cost) item included right in the box.  Sort of like getting a “free” prize in the Cracker Jacks box, only you weren’t expecting it.
  • A follow up email after the purchase of a high ticket item with a generous offer attached.
  • Random “notes of kindness” sent via email to loyal customers with a coupon offer attached – even if it isn’t attached to a particular sale.

As Hyatt and the researchers that have studied the role of gratitude as it relates to customer loyalty have  discovered, customers like it when companies offer them an unexpected benefit.  And these random acts can add up to big benefits for your company at a time when customers have less money to spend and more places to spend it.


Capturing the spirit of Web 2.0

June 8, 2009

The new world order?

As I head off to this year’s national UPA (Usability Professionals Association) conference in Portland, I got to thinking about all of the hype around Web 2.0 and how it is changing EVERYTHING.

Image from tangyslice.com

Image from tangyslice.com

As the above tag cloud illustrates, Web 2.0 can be defined in a number of ways and can be pretty confusing to the uninitiated. However, one thing is for sure: if you are a marketer and you haven’t embraced the idea of technologies that support customer collaboration, sharing, and control using so-called “social media” then you are in the dark ages.  Right?

Sure, you say, that’s fine for those cool new music sites and iPhone apps but what if I am selling shipping services, heart valves, or cupcakes, what then? I can set up a company or brand Facebook page, allow customers to digg a page on my website, or send them Tweets about new stuff we’re doing. But is that really taking advantage of all that Web 2.0 has to offer? And, what if my customers are reluctant to participate in these new social media?

Choosing a Web 2.0 strategy

One of the pitfalls of trying to keep up with this new world order is to be too reactive.  Companies want to stay competitive and may be attracted to some of these new tools or services and then try to fit them into a vague strategy that demands Web 2.0 type of interaction with customers. But which tools?  And what do customers really want?

Now, which ones should I pick?

Now, which ones should I pick?

The problem with this “follow the wave” approach is that you may be spending money on stuff that nobody cares about or that just isn’t a good fit for your company.

Whether you are already fully invested in Web 2.0 or just getting started, here are some suggestions for meeting the challenges of the Web 2.0 world:

1) First define your brand: Recognize that your customers still have the same needs they had before – i.e., they want to be listened to and treated well. Choose any new services or tools based on this simple premise and keep coming back to it. Ask yourself: does this cool new (tool, service, etc.) support great customer experiences and my vision for my brand?  If not, then maybe it’s not right for you.

2) Give and take: Provide a feedback loop that will bring you good information about how your customers are feeling about you and that makes customers feel as though you care about them. Don’t give them the tools for communication/collaboration and just sit back and watch. Stay in touch.

3) Build the spirit and sensibility of Web 2.0 into the online experience: Although your customers still have the same basic needs, that doesn’t mean their expectations haven’t changed.  Web 2.0 has raised the bar re: customer expectations of the quality of the online experience.

Use “polite interfaces” and/or “adaptive interfaces” that speak to your users in real life language and give your website and your brand some personality. Provide a level of personalization that creates real value. Even if you don’t offer popular Web 2.0 tools, you can create pleasurable and meaningful experiences for your online users in other ways that don’t require a large investment (I’ll go into more detail about this in a future post).

4) Learn from your mistakes: Don’t be content with the status quo. There is going to be something new right around the corner that your customers might want. If participation rates slump for a particular tool, move on. Be willing to adjust as technology and customer desires change.

5) Do research: William Goldman’s famous quote about the entertainment industry is relevant here:  “nobody knows anything.”  Don’t assume that your competitors have this thing all figured out.  The only real way of knowing  if you’re making the right decisions is to do research.

Once you embrace the spirit of Web 2.0 there are a number of ways of collecting and analyzing information that can provide insight and are cost effective.


Letter to GM: it’s time to get serious about the user experience

December 3, 2008

 
Rick Wagoner
General Motors
300 Renaissance Center
Detroit, MI 48265

cc: Allan Mullally, CEO Ford; Robert Nardelli, CEO Chrysler

Dear Mr. Wagoner,

By now you are probably tired of hearing every so called “expert” who has studied, analyzed or written about the auto industry – or simply driven a car — give you advice on how to survive this recent crisis, but I just wanted to tell you one more thing.  Like the advice given to Dustin Hoffman in The Graduate: “Plastics” my advice can be summed up in a word (okay, two words): “user experience.”

As you struggle to consolidate your brands, close factories and dealerships and figure out a way to continue operations before you run out of cash I urge you, no, I beg you – please do not forget to invest in satisfying your customers’ experiences. 

Your recent decision, along with your esteemed colleagues at Ford and Chrysler, to fly your private jets to Washington to ask American taxpayers to fork over billions to help you continue operations not only set the wrong tone, it is indicative of your company’s inability to understand the emotional needs of your customers and those that left the fold years ago to buy from your European and Japanese competitiors.

Having worked on advertising campaigns for a couple of automakers (US and Japanese) over the years I have some sympathy for both you and your dealer network in these trying times; I know how difficult it is to research, manufacture, market and sell products that have a long product development cycle.  However, the experience also provided me with keen insight into how customers are often left out of the process.  Going forward, here are a few suggestions that I hope you will consider:

  1. Hire a ‘Chief Experience Officer’ immediately: this would be the senior executive responsible for understanding customer experiences across all communication touchpoints among all of your audiences.  Make sure this person reports directly to your CEO.  And, give him/her veto power over dumb decisions (like flying private jets to important public meetings or killing popular programs while ignoring your fan base).
  2. Keep us in the loop: stay in touch with customers over the next year or two about what your plans are, even if it means having to tell us bad news.  If there’s going to be pain, own up to it.  You won’t be fooling anyone by communicating via the typical corporate-speak – or worse – by giving us the silent treatment.  Two-way communication has to be part of the new GM paradigm.  Which leads to …
  3. Be a good listener:  don’t rely solely on your research department for insights.  Put someone in charge of reading blogs, emails and snail mail from customers that has the ear of your CEO.  Keeping an ear to the ground while putting your nose to the grind stone is difficult, but an absolute job requirement in this new economy. And blaming the press for the public’s “misperceptions” about GM’s lineup of fuel efficient cars (as your Vice Chairman Bob Lutz has done) isn’t going to cut it.
  4. Don’t be afraid to look overseas: Your brand Opel is a well respected name throughout Europe.  Right now Saturn is the only division that has announced plans for using the Opel platform (the 2010 Saturn Aura is essentially the Opel Insignia) - but ask 100 people on the street and I’ll bet you’ll have trouble finding 1 person that might know about it.  With Saturn going away, don’t lose sight of Opel for helping you create cars in the US with some European sensibility and style.
  5. Do something fun that surprises people: when was the last time someone beyond the gear-head crowd thought “Wow, GM gets it.  They know how to reach me by doing something fun?”  Think Mini Cooper, and the VW Beetle.  Fun is the intangible gift that keeps on giving and can create a positive halo acrosss all of your models.  And don’t say “Chevy HHR.”  The 60’s was Detroit’s heyday for youthful, fun design, not the 50’s.  Some ideas: how about a US version of the ‘66 Vauxhall XVR or an updated 60’s era Opel GT? Or what about making the Chevy Volt fuel efficient, fun to drive and affordable?
  6. Walk the walk (don’t just talk the talk): When you introduced Saturn to the world back in 1990, you promised a “different kind of company, a different kind of car” and really tried to create a new way to approach the customer.  Now it looks like you will be closing or “consolidating” the Saturn brand.  What happened?  You wrote the words but forget the music.  You and your predecessors gave up on Saturn’s mission after only four years  by making the division just another GM brand and failed to provide the kind of experiences — and cars — that could compete effectively with the Japanese.  

If you start to rebuild your company and your product line from the bottom up (i.e., putting the customer first) I’m confident that you can become a leader again in cars, not just trucks.  But, I’m already bracing myself for the slogan “A new GM” and the multi-million dollar ad budget that will go along with it.  Don’t make the mistake that Microsoft is making with Vista.  Why not demonstrate the change and trust the customer to create the label this time?


Wrap Rage: can gadget makers finally get it right on clamshell packaging?

November 17, 2008

When companies can’t (or won’t) figure out how to improve the user experience customers will always find workarounds.  So it’s been with the deservedly maligned “clamshell” packaging.  Anyone that has purchased electronics on a hang tag knows how difficult (and dangerous) it is to open this type of clear hard plastic packaging.  But is selling power tools to open them really the best solution?

Try Openin!
Is this really the best way to enhance the user experience?

I can’t help but recall an old Saturday Night Live “advertisement” for a drug called “Try Openin” in which cast members try desparately to open a bottle of pills. This was a bit of satire that allowed us to laugh at the still fresh-in-our-minds poison Tylenol scare  that led to tamper-free packaging of all pharmaceuticals and over-the-counter medicines.  Back then manufacturers had a strong motivation to make their products tamper-resistent.  But, did this set a dangerous precedent?

Despite sending thousands of people to the emergecy room each year due to incidents related to opening plastic packaging, it’s easy to make fun of the issue.  Consumer Reports even has an award, the Oyster, for packaging that takes the most time and effort to open.  It’s understandable that companies have to balance the needs of retailers and the marketplace’s desire to see the actual product but are they paying enough attention to the user experience?  Apparently not.  In this same article from CR, I came across this quote from a professor of Packaging Science (no kidding) at Clemson University …

“In the end packaging is perceived by industry as a necessary evil, and manufacturers don’t want to spend more on it than they have to, even if it means compromising usability.”

It’s truly mind boggling that manufacturers and marketers find this to be an acceptable compromise for the purchasers of the products they work so hard to design and market.  This is not rocket science guys and btw, why is it taking you so long?

There is hope
It seems that Jeff Bezos, CEO of Amazon, got the message after spending hours trying to open presents for his kids at Christmas.  According to a recent Amazon press release …

SEATTLE–(BUSINESS WIRE)–Nov. 3, 2008–Amazon.com has launched “Frustration-Free Packaging,” a new initiative designed to make it easier for customers to liberate products from their packages. Amazon is focusing first on two kinds of items: those enclosed in hard plastic cases known as “clamshells” and those secured with plastic-coated wire ties, commonly used in toy packaging.

Amazon is working with Mattel and other companies to get them to ship products to them in cardboard boxes.  This seems like a no-brainer since, unlike other retailers, Amazon doesn’t have to display their products nor worry about theft due to easy-to-open packages.  According to a recent New York Times article some of the other players besides Amazon that are trying to make some changes include:

Microsoft – will feature computer mouse packaging in Best Buy stores that has an easy open plastic zipper similar to that used in freezer bags
Sony – is trying out an easy open adhesive that makes a loud velcro-like noise to deter thieves

Hats off to these guys but where are the other leaders on this important consumer issue?  Just think of the power that companies like Walmart and Apple have to change the dynamic (Apple has already proven with the iPod that it can make packaging more a work of art than a “necessary evil” yet the company continues to feature tons of third party products in traditional clamshell packaging in its retail stores). 

And what about the PR benefits of so called “green packaging?”  Packaging innovation has the potential to be the new reason to buy, especially in tough economic times.  According to a 2004 article from ergoweb, making packaging more user friendly is not just a consumer safety issue — it could be a real competitive advantage to companies willing to provide innovative solutions:

… when paint manufacturer Sherwin-Williams introduced a plastic paint container with a twist-top cap, making it far simpler for the customer to open, hold, pour and carry than traditional metal paint cans which have to be pried open, the can became a quick hit with buyers and left other paint manufacturers scrambling to copy the paint container’s ergonomic design.

Alas, even in this economic downturn it is unlikely that consumers will purposely stay away from products because of poor package design — but they may be attracted more to those building a better mousetrap to hold their electronic goodies.  It’s really up to corporate leaders like Bezos to recognize the importance of creating better user experiences.  And, if the carrot approach doesn’t work, maybe this suggestion from a blogger in Pensacola Beach, Florida will do the trick …

We think the simplest, most effective way of ridding the planet of hard-to-open packages would be for one of the TV networks to launch a new reality show — one where the CEOs of consumer products companies are put on a desert island and, to earn the right of return, they have to open their own products on camera, using only their bare hands, toes, and teeth.”

Hey, why not make it a Christmas special?  The ratings would be through the roof!

 


Online behavioral tracking at a crossroads: will companies do the right thing?

April 14, 2008

There are two new vendor systems being introduced in the U.S. that will significantly enhance the type of information that will be made available to advertisers regarding the Web navigation and search behavior of users. 

(Nice place to visit but do you really want to answer questions there?) 

NebuAd and Phorm, are promising the first “consumer-centric behavioral targeting network.”  If their business model looks promising, expect to see similar systems put in place soon by old standbys like DoubleClick as well.  Essentially, these firms will be working with ISPs to track sites visited and searches performed by their customers and provide this information to advertisers in order for them to customize their ad pitches accordingly.

While these firms are poised to deliver the kind of contextual advertising experience long promised by the interactive properties of the Web, they are entering into some very dangerous territory when it comes to compromising the privacy of its users.  According to The New York Times, at least one of these firms, NebuAd, is being cagey about what and how it is going to alert the people it is monitoring, leaving it up to the individual ISPs to alert their users.  NebuAd has also so far refused to share information about its ISP partnerships.

Whatever side you might be on re: the privacy issues and relative merits of the different technologies used by these companies, their failure to act in a responsible way should be cause for concern: if these firms drop the ball on effectively notifying users they may be shooting themselves — and their advertising clients — in the foot.  And the wounds could be deep.

Already Phorm is under fire from advocacy groups in the UK for behaving like big brother.  Here is an example of what a viral video campaign could do to set off alarms in the U.S.:

 

There have been too many instances in which the failure of an industry to police itself of potential abuses (see our current mortgage crisis) has resulted in serious blowback from consumer groups and the general public.  These behavioral tracking firms, which are currently flying under the radar for the most part, may be in for some serious heat if they don’t take pains to police themselves.  This means coming up with a workable system for notifying Web users and providing them with a simple way for them to opt out of having their online behavior tracked (what some ad executives are calling “unavoidable notice”).

Rather than each company coming up with its own rules for disclosure, they should be establishing a consistent system with the help of a reputable third party non-profit oversight firm, similar to what Icann does with the contentious issue of Internet addresses. 

The NAI (Network Advertising Initiative), made up of several companies with interests in the online ad space, including Google, AOL and Yahoo, has committed itself to self-regulation of online data mining practices.  However, so far their consumer protections  don’t appear to go far enough, especially around the definition of “Robust Notice.”  The problem may be that they have too much of an interest in making these types of systems work to provide truly enforceable oversight.

Without stricter oversight, these firms and their advertising clients may find one of their worst nightmares coming true: sitting in Congressional hearings and having to answer questions to House members that barely understand how to send email, let alone the difference between a “cookie” and Internet protocol addresses (two of the ways that these companies are tracking information).

This should be enough of a disincentive for these firms to act now.  Advertisers, who will likely be an easy target if any potential abuses of this information become widely known, would do well to help pay for oversight if the tracking firms are unwilling to foot the bill.

Additional video:
Behavioral targeting 101 with Darren Johnson:
http://youtube.com/watch?v=PTyHM0SvAK8&feature=related 


It’s not that you’re painting the wrong picture, it’s the frame

April 11, 2008

I’ve been doing some research for an article I’m writing about the importance of breaking down the barriers that exist between user experience practitioners and marketing researchers, and I’ve come to  an important realization. 

As much as the experts rail on about the importance of making “customer experience” a core competency within organizations, things are not going to change until the stakeholders force a change in the “frame.”  

I’m not talking about HTML frames.  I’m talking about frames as they are used in langauge.  According to George Lakoff, professor of Linguistics at UCLA, Berkeley and founder of the the Rockridge Institute,

“a frame is a conceptual structure used in thinking.”  

Rakoff goes on to say …

“reframing is telling the truth as we see it – telling it forcefully, straightforwardly, articulately, with moral conviction and without hesitation. “

Some examples that Republicans have used to reframe issues in their favor (with the help of the much maligned GOP researcher Frank Luntz) include:

Old                                       New
Tax cut                                 Tax relief
Estate tax                             Death tax
Global warming                    Climate change
Logging/Clear cutting          Healthy forests initiative

Although Lakoff’s and his progressive institute’s main concerns are the framing of political language, particularly that used by Democrats to counter the Republican successes of the past eight years, framing can be used by anyone to score points for their side. 

Like the Democrats, most of the folks on “usability” or development teams have been using the wrong language to make their case, ignoring the power of framing when they speak to management.  When it comes time to ask for funds for ”usability testing,” managers from the various business units who otherwise claim dedication to “usability” often come up short when it’s time to commit dollars.

I have a suggestion: instead of asking to fund “usability,” practitioners should reframe the issue by asking managers to support and enhance the ongoing satisfaction of the customer experience.  If a product developer asked a manager in one of big three car companies for money to improve the stabilization system in their best selling car in order to improve the driving experience wouldn’t she get the funds?  When film directors ask producers for more money to blow stuff up in their movies to improve the viewing experience don’t they usually get it? 

Those involved in creating online customer experiences have to start talking about the funding of their goals in broader terms.  They have to emphasize the importance of creating satisfying customer experience across all touch points with their customer, with the online experience as an essential piece that helps drive a stronger relationship with the brand.  And, as with successes seen in the political realm, this reframing has to be consistent and persistent.   That means using this new language in every piece of written communication and every interaction with stakeholders.

Reframing the issue in this way may go a long way to increased understanding of the importance of creating usable and persuasive interfaces for customers.

View the excellent PBS “Persuaders” series:  a must see for anyone communicating within organizations …
http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/view/

George Lakoff’s lecture on “Moral Politics” and language targeted to values rather than issues:
http://youtube.com/watch?v=5f9R9MtkpqM


VW iPod adapter: Why won’t it just work the way I want it to?

March 31, 2008

This pretty much sums up a lot of users’ frustration with product/web usability.  You gotta wonder: why aren’t these guys talking to each other or to us?

 

 (Thanks imagechan.com for the digg post)

When I came across this cartoon I couldn’t help thinking of the iPod adapter in my 2008 VW Passat.  After years of consumer requests, car companies are finally providing an AUX adapter so drivers can easily plug in their portable MP3 players.  If you are an iPod fanatic like me you might actually consider getting a new car just so you can get rid of that old cassette or FM adapter that used to be required to play your device. 

You would expect VW to be on the cutting edge of providing satisfying user experiences to their customers, especially coming from a car company with the word “people” in their name (and an ad tagline like “Drivers Wanted”).  VW is so cool it has decided to offer a solution that is meant to only work with the iPod (the VW logo even shows up on your iPod when you plug it in).  Here is how the adapter works (or doesn’t):

–Your ipod is inserted into a small pillbox-sized compartment within your glove box.  No wires are needed in the most current setup since it plugs directly into the “male” end of the iPod adapter. 
    Broken: you can’t control the iPod from the iPod itself when it is connected.   Even someone on the passenger side must remove the ipod in order to see the screen and once removed it turns off.

–After plugging it in you can only choose from five playlists that you create ahead of time (numbered 1 thru 5) or play your entire iPod song list (number 6) .
   Broken: You cannot listen to albums, artists or random songs.  You can’t reach playlists beyond the first 5, which are set up in alpha order (sorry ZZ Top fans).

–To “shuffle” songs, you have to start the iPod in shuffle mode and let it play one or two songs.
    Broken:  If you don’t move the audio selector to “CD 6″ quick enough to get it to start playing, the adapter turns off “shuffle” and you get an alpha sort of your music starting with “A.”  I like to hear ABBA once in a while but, please, not everytime I get in my car.  

–While your music is playing, the read out in the dash says “Track 01″ 
     Broken: there is no info shown re: song or artist

What’s amazing is that VW has completely thrown out the intuitive features and interface that Apple has painstakenly set up that makes the iPod experience so pleasurable.  They’ve put “clumsy mitten-hands” on the iPod interface without any thought about user preferences or desires.

I can only conclude that these choices were made by engineers that were looking to add car audio features not currently offered by competitors but were not considering what people like about the iPod itself.   They would have been better off creating less car audio functionality and letting the driver decide how best to use their own iPod (i.e., just put an AUX jack in the middle console next to the driver that gives us easy access).  Instead, we end up with a very sad robot indeed.

The lesson here is that if you can’t match or improve on an existing well known interface, half-measures are worse than no measures at all. 


You gotta hand it to Apple: gesture-based “soft” interfaces are coming to a PC near you

March 27, 2008

Gesture-based interfaces are looking like the next new thing.  One of the key features that iPhone aficianados love to show their friends is the multi-touch feature that allows them pinch their fingers or expand them to scroll and
manipulate images on the screen.   And, companies like Sony Ericsson, Samsung, LG, and Motorola are coming out with a number of  new “iClones” that offer similar software-based interfaces.

Anyone that caught some of CNN’s recent coverage of the primaries (”The best political team on television!”) couldn’t help noticing Wolf Blitzer and other commentators showing off their gesture-based interface (called Perceptive Pixel) to manipulate the state maps in order to further confuse viewers re: the evening’s voting outcome.  Wolf, we know Tom Cruise (in Minority Report mode), and you are no Tom Cruise. 

 Meanwhile, Microsoft is focusing its efforts on their Surface technology which is to be available in hotels and casinos but isn’t promising any tabletop (or PC) gesture-based interfaces for consumers until 2011. 

However, with the introduction of the new MacBook Air, Apple has introduced the first multi-touch applications for the plain old PC (using the touch pad rather than the actual screen).  And, last summer Apple filed a patent to expand their multi-touch interface into a host of other uses including copy, cut, paste and other common editing operations.  Get ready to start seeing more of these gesture-based interfaces introduced into Apple’s product line.

It will be interesting to see how these new soft interfaces will change the way we all conduct every-day PC-related tasks once they go beyond the hipster iPhone crowd and into the mainstream.  It’s already clear that software-driven interfaces (like the iPhone) will soon be replacing the clunky hardware of the present.

And, as these interfaces become more widespread there may be a host of new user experience issues to consider, especially for older users or those handicapped with arthritis or other muscle ailments that affect dexterity.  Will people be divided into those who can “pinch” and glide their way through an interface and those how are stuck with that old mouse and keyboard on their desk/laptop? 

Sources/Fun and Games:

Why get a Macbook Air to start using multi-touch on your PC?  Try it remotely on your Windows or Linux PC – for free (works with iPhone and iPod Touch):
http://www.youtube.com/watch?v=mWnbFZ-N-gU&eurl=http://hackedgadgets.com/page/2/

See CNN’s “Magic Wall” (and watch Jeffrey Toobin try to impress the ladies!):
http://www.youtube.com/watch?v=ybkidUnbjcE&feature=related

Microsoft Surface – “the coffee table that will change the world” !!!: but when can I use it on my PC?
http://www.microsoft.com/surface/index.html

Design guru Bill Buxton explains it all: a multi-touch history
http://www.billbuxton.com/multitouchOverview.html

Jason Harris at Gigaom gives you the 411 on new soft mobile interfaces, including Google’s Android:  http://gigaom.com/2008/02/29/why-2008-is-the-year-touch-will-revolutionize-the-mobile-market/


Why Starbucks is like the Beatles and it’s tough to put the lightening back in the bottle

March 22, 2008

If you’ve been paying attention to the news lately in between sips of your Caramel Macchiato you might have heard that Starbucks is having a mid-life crisis.

(Customers are saying “all we need is love” )

It seems that the once high flying company’s stock has been on a steady downward spiral.  They are closing stores (in the U.S. anyway).  And, the company is getting whacked by a number of competitors including Dunkin Donuts and McDonalds (of all people!).  To reverse this slide, its CEO and founder Howard Schultz has announced an array of new initiatives that will “go back to their core” by brewing a stronger, richer blend, entering into a partnership with Conservation International to certify environmentally responsible whole-bean espresso products, and offering a rewards program for users of the Starbucks customer card.

These are smart initiatives but I’m afraid they won’t be enough.  You see, just as the Beatles were more than a band, Starbucks is more than just a coffee store.  They are a cultural phenom, one of those rare forces that were able to grab hold of the zeitgeist and change how we think about, drink and spend our money on coffee (or in the case of the Beatles, how we listened to, talked about and bought music).  Like the Beatles, Starbucks matured along with their audience.  And, their ego and ambition led to some pretty dumb moves in the process.

If you are old enough to remember the 90s, you may recall the excitement around the opening of a new Starbucks in your neighborhood.  This was not that different from the anticipation certain people felt in the 60s about the next new album or single by that band from Liverpool.  But as time went by, things changed.  

Although Starbucks didn’t “break up” they did have their own Yoko: Hear Music.  Yea, it was cool for awhile to have these alternatitve music CDs hanging around the store.  But then it became kind of annoying.  Paul and Linda went vegan and preached about the environment in their songs while flying between their manses in Scotland, NYC and the Hamptons.  Starbucks sang that same song while it built more and more stores and now rivals McDonalds in the amount of unrecyclable waste that customers toss out during each visit.   And similar to George putting out his triple album of stuff that wasn’t good enough to make it on the earlier Beatles records, Starbucks has filled their stores with lousy pastries and warmed over breakfast sandwiches.  They are still Starbucks but somehow they just aren’t as good as we remember them. 

Like Peter Fonda at the end of the movie Easy Rider, Schultz is now saying ”we blew it.”  He went after the fast money and lost his vision, and with it the soul of his brand.  And customers started to look for something else to get excited about.  The chain is a victim of their own success: by essentially becoming like McDonalds it has given people permission to believe that McDonalds can play on their turf.

One positive aspect of this recent wake up call at the company is that a number of people who care about this stuff are actually talking about the customer experience and how Starbucks should focus more on the store environment and staffAnd, the company is (”finally” according to some critics) putting more focus on listening to their customers: Starbucks just introduced a new online community, mystarbucksidea.com, where Schulz and his managers will be able to interact with customers via their corporate blog.  Whether these changes will help improve the customer experience or their competitive position is tough to say. 

But, let’s face it, Starbucks can’t ever get that lightening back in the bottle.  The best they can hope for is to try to re-play their greatest hits in order to hold onto their fan base and consider themselves lucky if they get a surprise hit single once in a while (”(Just Like) Starting Over” perhaps?). 

Or maybe someone like Tom Petty will come along and form a supergroup.


iPhone as media platform: chicken or egg?

March 19, 2008

The positive buzz continues for Apple as a new study by m:metrics shows that iPhone users are significantly more likely to use every type of media on their phones when compared to other “smart phone” users.  This includes watching mobile TV/video, accessing social networking sites (e.g., Facebook), and performing a search or viewing news/other Web content.  And, iPhone users are more than 3 times as likely to use their phone to listen to music when compared to other smart phone users.

While this should generally be no surprise to anyone on the planet that has read about, heard about, seen, or used Apple’s “must have” appliance, it does raise some interesting questions that aren’t really answered by the press release (competitors take note).

The author of the press release casually passes over the contribution of “the attributes of the device itself” and emphasizes AT&T’s unlimited data plan as a key contributer to the increased use of media content …

“While the demographics of iPhone users are very similar to all smartphone owners, the iPhone is outpacing other smartphones in driving mobile content consumption by a significant margin,” said Donovan. “In addition to the attributes of the device itself, another important factor to consider is the fact that all iPhones on AT&T are attached to an unlimited data plan. Our data shows that once the fear of surprise data charges is eliminated, mobile content consumption increases dramatically, regardless of device.”

While it makes sense that the unlimited data plan could contribute to increased use (who passes up the all you can eat buffet?), the recent New York Times article nor the press release really mention much about the interface or user experience other than the fact that widgets for Google Maps and YouTube seem to drive usage of those apps. 

It would have been great to know more about the “why’s,” for example:
1) How much of iPhone’s media usage can be attributed to the user-interface itself? Not just the content widgets but the unique aspects of iPhone’s touch screen, screen size, etc.?
2) Conversely, is the lower incidence of usage by other smart phone users related to problems/issues with their phones’ interface?
3) How much of this usage is driven by self described “early adopters,” i.e., those who are predisposed to using rich media in the first place?
4) Is the iPhone driving usage or the other way around: what percentage of users are “first timers” – i.e., their iPhone usage is the first time they’ve used some of these media applications on a smart phone? 
5) How much is attributable to users accessing content via WiFi vs. AT&T’s network (many users have complained about the slowness of AT&T’s network)?

6) And, importantly, do these numbers represent claimed usage or as m:metrics promises in its About section, ”actual mobile content consumption?” (According to The New York Times the results are from a survey of more than 10,000 adults.  Did the researchers sit over the shoulders of all 10,000 people to make sure they were using the applications claimed?)  How much of claimed usage can be attributable to overstated usage?  Look, if I shelled out $500 for a phone and someone asked me if I was using all the cool stuff that came with it I might be embarrased to admit that besides the music, I haven’t really gotten around to using all that other cool stuff.  

Claimed usage or not, these are impressive numbers and represent a cold slap to Apple’s competitors.  Now if they can just open up the phone to other wireless providers …

iPhone videos:

You can always listen to “Blender” (the Collective Soul album) but will the iPhone blend?:
 http://youtube.com/watch?v=qg1ckCkm8YI

Fun with iPhone’s SDK (just released in Feb):
http://youtube.com/watch?v=u5xA8-XvjNk

Can you use it as a hot plate too?
http://youtube.com/watch?v=jihVOLrZ4UA