Tag Archives: Facebook

Social Media: A “Head in the Sand” Moment

Seeing Your Brand With Eyes Wide Shut

It could not have come at a better or worse time – depending on whether  you are Google or Facebook. Or it may not matter at all given the continued high levels of adoption of “freemium” social media networking platforms. 

The recent survey by ASCI (American Customer Satisfaction Index) conducted by ForeSee Results,  yielded numbers worth considering.

For Facebook, it is basically ranked at the bottom of the deck by users when it comes to delivering on customer satisfaction – ergo, the user/customer exprience. Facebook is rated so low that it stands slightly above airlines and cable companies in general. Not surprising given that Facebook is really an Internet utility. Perhaps the only saving grace it that you don’t get a monthly bill.However, as a brand manager, you might want to ask yourself: “Do I really want to partner with a medium that is seen to deliver, in a measureable way, low customer value?”.  Even worse, some social networks may even dimish the value you are trying to deliver via your brand.

Not to worry, it looks like Facebook will be around for a awhile. Consumers or should I say “users” are as addicted to some forms of social media in a classic love/hate relationship. Things might be different however, if they had to actually pay to use this utility.

Pause for a moment.

– Ted Morris, 4ScreensMedia

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The ROI on Social Media: Time to bring in an accounting framework

CMA Magazine

It’s time for Social media and social commerce to step up to the plate when it comes to accountability.

I’ve seen a lot of talk about the benefits of social media often without supporting financials that make for a solid business case. What I have seen so far tends to be a typical set of flimsy metrics, that, while indicative of incremental performance, do not explain causality to the bottom line. Other cases have used the term “ROI” very loosely without regard to the rigour of GAAP financial accounting methods. In short, I felt that it was time to speak to the issue. With the help of Syncapse, TD Bank and McDonald’s, I have opened the discussion of the kind you may want to have with CFO if you’re intent on moving the social media agenda forward within your organization.

The article can be found in the Premier issue of CMA Magazine – a newly revamped version of CMA Management Magazine, geared to the Digital Age.

http://www.nxtbook.com/nxtbooks/naylor/SMAS0111/#/20

I have always been fortunate to have a long standing relationship with CMA Magazine. Back in 2003 I wrote my first article titled “What Management Accountants Should Know About Market-Driven Quality”. 

Over the years, I authored 4 articles and one book of guideliness (when I partnered with Bradley T. Gale, formerly of the PIMS Institute) the recurring theme has been about financial accountability. This has always been important to me as a business manager based on my belief that if the impact of an activity cannot me measured, specifically in a ways that draws a link between money invested and return on that money invested, then it should be questioned insofar as its contribution to the performance of the enterprise. This does not suggest that everything needs to delivery hard financials re. EBITDA. What is does mean is that every activity has to have some associated set of metrics that help to explain the value of that activity and its relative contribution.  Whether you use hard financials or a series of performance metrics across all functional groups, measures are required in order to gauge the return on effort.

Being a manager means being accountable for your actions.

Ted Morris – 4ScreensMedia

The Social Maze

Where are all my customers?

 The funny thing about all the endless advocacy of social media is that nothing has really changed in the business of matching consumers with brands. Oh sure, now that consumers ‘control the brand’, companies are at the mercy of infantile twittering tantrums such  as when consumers don’t get their way (especially on an airline) hoping to unleash a social firestorm primarily with the hope of getting noticed for a nanosecond or two. (The same folks likely get back on the same airline, content to collect their frequent flyer points.) 

One would think, with all those folks splaying their private lives out in public via the likes of YouTube, Facebook, Twitter, Flickr and Foursquare – lest we forget this thing called a phonebook or the science of geodemographics and credit card purchase data – that people would be easy to find. In fact, with all of the yottabytes of data out there about consumers, it should, in the year 2010, be a matter of running an algorithm or two to find customers, understand preferences and match any product or offer with any consumer 24/7 in any country with high Internet penetration.  It would be the end to the need to advertise using traditional channels.

Funny indeed. The search and storage/processing technology required to make the social web possible has, as the main output, data. Whether you call it media or content it’s still really just more data taking up space on some distant server farm deep in the Mariana Trench. As such, are we all the wiser? Not really. With free cloud apps having a shelf life not much longer that the vegetables in your local supermarket, many are wary of the risks of implementing something that will be obsolete by the time it gets traction in the marketplace. With the yet to be proven value of social media monitoring and analytics, it’s not as if the world has abandoned representative random sampling or in-market product trials.  

Do companies really have the strategies, skill sets or business processes to effectively leverage the social web? With only $2 billion slated for social media spending in the USA this year, I doubt it. Yet, evangelists are forever hopeful, as that is their stock in trade. Like Charles Revson, founder of Revlon once said, “In the factory we make cosmetics; in the store we sell hope.”  

On the other hand, Charles Revson didn’t have social networks at his disposal but his customers had no trouble finding the Revlon counter.  

– Ted Morris, 4ScreensMedia

Beyond Brand: The Kawartha Dairy Company

The Kawartha Dairy Company, since 1937.

Yes, this is about ice cream. My favourites are strawberry, chocolate, butter pecan and french vanilla.  Here is French Vanilla: 

FRENCH VANILLA: ALL NATURAL. No artificial flavours or colours. Pure bourbon vanilla and eggs give that bold flavours and a sprinkling of vanilla seeds.

Kawartha Dairy has a website, several storefront locations and is distributed throughout Ontario, Canada and notably Metropolitan Toronto. The “Kawarthas” as they are known by, are located northwest of Toronto by about 100 miles. It is cottage country, rural. Lots of forests and lakes. It is also the home of Kawartha Dairy. Every time I eat Kawartha Dairy ice cream it reminds me of the years we spent at the cottage – family, friends, puppies, children. Ice cream that has always been a part of our lives.

No Facebook, no Twitter, no mobile apps, no need to check-in at their stores on FourSquare. All you really need is a scoop, a bowl, some wild blueberries maybe or fresh strawberries or perhaps even some Canadian maple (light amber #1)  syrup as occasional toppings.

Kawartha Dairy. The tastiest ice cream. Beyond a brand.

– Ted Morris, 4ScreensCRM

Data: The New Capital of the Digital Age

Data: The New Green

The Economist recently ran a special report on managing information that prompted some thinking. First, some big numbers from the report: Wal-Mart handles over 1 million sales transactions per hour. Facebook houses some 40 billion photos (after only 4 years of operation). Cisco estimates that Internet traffic will reach 667 exabytes by 2013.

 With some 60 million people on Twitter, according to comScore data (November 2009), there are roughly 10 million tweets a day. This doesn’t account for the content – characters, photos, articles and video content. I also found that YouTube has generated more video content than all of the television networks combined have ever generated. The current upload rate is equivalent to about 100,000 Hollywood movies being made on a monthly basis. Finally, almost 100 trillion e-mails were sent in 2009.  

Bringing this a bit closer to home, consider the number of daily transactions that take place for banking, air travel, credit card processing, phone calls and e-commerce. You end up with some very large numbers indeed. This data also says a lot about how we behave. Most intriguing perhaps is what it can tell us, through the use of complex algorithms, how we might behave at some future point in time – and where new business opportunity may dwell.  

This growth in the information industry is not reflective of recessionary times. It points to a shift in investment, new business models, the laying of new infrastructure (servers, storage, cloud computing, software) and global workforce expansion in business information. It’s also transformational as the CIO’s role is increasingly one of contributing directly to business growth in contrast to the dogmatic notion of keeping the lights on in the boiler rooms of Enterprise Resource Planning and Supply Chain Management.  

It’s the effect of the peta, exa and yottabyte world that is most intriguing. Conventional ways to sense and understand consumer behaviour  will be challenged by the new wave of business analytics. Marketing research is but one example. If predictive analytics can do a better job of identifying which category of SKU’s is trending upward or which meal combo is gaining favour, what will marketing research be used for? Data analytics can also be used to generate new ideas for services, products and as importantly, help companies shed under-performing assets and balance inventories. By implication, there is a clear line of sight to the financial payback as firms like Amazon and Marriott have learned.  

This point from the Economist is worth noting:  

“…all these data are turning the social sciences upside down, he [Sinan Aral, NYU] explains. Researchers are now able to understand human behaviour at the population level rather than the individual level.”  

It’s no wonder Big Tech (IBM, Microsoft, Oracle, SAP etc.) is loading up on search, storage and processing capability. In exchange they will reap new profits from the digital age, largely unnoticed from behind the curtain of social networks and online store fronts.   

– Ted Morris, 4ScreensCRM  

Social Networks: The Unseen Dangers

SOCIAL NETWORKS: THE #1 MALWARE SOURCE – Last year, I predicted that the web was the battleground and social networks would get ugly. Both those predictions proved true. This year’s threat is no different – just more specific. Social networks have in fact become so ugly that they will be the #1 source of malware infections. Why? Nielsen Online says social networks have become more popular communication tools than email. Also, social networks by their very nature are gathering places, which tends to imply increased levels of trust. Finally, social networks leverage complex, Web 2.0 technologies that can suffer serious security vulnerabilities. When you add those factors together, it’s no wonder that social networks will become to malware what email used to be to the virus; the #1 source of infection.Corey Nachreiner, WatchGuard® Senior Security Analyst, CISSP www.watchguard.com

I spent a few years working for a technology services company that provided online detection of various forms of malware that posed a security and privacy threat to both consumers and business. Some of the work spanned various industries such as financial institutions and insurance companies as well as law enforcement agencies to detect fraud, counterfeiting and cybercrime in general. This was well before Facebook, Foursquare and Twitter became universal social networking platforms. Clearly the problem is much worse today as underscored by the above quote.

One thing that users seem to be oblivious to, whether they be business managers or consumers, is that social networks are cloud computing applications. They sit out on the Internet, a relatively open and unsecure environment where all types of predators lurk – identity thieves, terrorists and scam artists. Their ‘corporate’ vision and mission is carried out with the sole intent of stealing your identity, emptying your bank account and infecting your IT system with malware and harmful viruses, all without a shred of moral fibre or social conciousness. Beneath the surface are some very social criminals that want to be your ‘friend’ in a most unwarranted way.

It is unfortunate that social networks platforms do not, as a rule, provide disclaimers or warnings for people before they sign on. While the premise of ‘friending’ or ‘following’ people is innocent enough, there is little in the way that protects people from the possibility of online identity theft, fraud or in the worst cases, stalking and surveillance. The most egregious cases come from those who arrogantly declare privacy as a thing of the past, knowing full well that those who profit most are those who engage in online criminal activity.

It’s not surprising that many business are reluctant to take up social networking platforms. These software applications, mostly free, do not have the security safeguards that would prevent unwarranted intrusions into an enterprise’s data bases or email systems containing confidential and proprietary information. Security Solutions is one of the fastest growing areas of IT services and a facet of corporate governance that has taken on strategic importance in the digital age. As much as social networks have seen incredible growth in the past 5 years, so has online fraud. Concurrent with this has been the growth in security solutions such anti-malware applications, vulnerability assessment and penetration testing.

At some point, marketers and social media advocates need to wake up and understand the risks inherent in open and unsecure software systems. In doing so, they might be a bit more successful in moving their social media agenda forward. The responsibility to ensure that consumers are well out of harm’s way needs to be a serious consideration.

– Ted Morris, 4ScreensCRM

(Cross-posted at http://www.cloudave.com)

Social Media is a Croc

There’s an awful lot of chit chat on social media networks about Apple’s latest product – the iPad. This is yet another successful product launch and continued revolution that Apple is leading in bringing new technology appliances to the consumer marketplace. It’s absolutely stunning that Apple doesn’t spend a cent on social media yet has garnered an enormous amount of publicity (admittedly good and bad) from people who just can’t help talking about Apple products on the social web. Maybe that’s one of the reasons why Apple doesn’t spend any money advertising on social networks – all of the publicity through Word-of-Mouth from those who desire, own and love to talk about Apple’s products is FREE anyway.

By the way, anyone who purchased Apple shares a few years ago would have made enough money to fund their iApple desires for the next decade…

– Ted Morris, 4ScreensCRM