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TECH Cocktail This Thursday – Bring Your Business Cards!

The first ever TECH cocktaill event is scheduled for Thursday, July 6, 2006 from 6:30 to 9pm at State in Lincoln Park in Chicago, Illinois. Wine will be available for free as part of Stormhoek’s 100 Geek Dinner series!

Please RSVP on the comment section of this web site. I look forward to meeting you there. Let’s show the world that Chicago can be a tech startup leader in the 21st Century! Remember to bring your business cards and I look forward to meeting you there and hearing your ideas!

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Being Able to Trust…Even Without Disclosure

I recently read Robert Scoble’s and Shel Israel’s book “Naked Conversations”. It’s a great book. In fact I’m currently writing a positive review for it for a publication due to it being well researched and fascinating in terms of its’ leadership and change management implications. It earned my respect due to the extensive research that went into the book. For the record, Robert didn’t send me a copy of the book and I got it at a public library.

But Robert made this post yesterday about disclosure in relation to payperpost that Richard Brownell, Chris Brennan and David Krug make some extremely interesting points that people should consider in the comments of Robert’s post. I think Robert is not recognizing that creating buzz is in itself advertising whether you keep the product or not – so either you should take what is given to you and be discreet about it or return the items as they arrive if you care about potential ethics issues.

In Robert’s July 2nd, 2006 post you say that you’ve “never really given Sonos a review before”. Yet in his April 8th, 2006 post , Robert stated the following:

“This is much much more cooler than I thought,” says Buzz Bruggeman.

What’s he talking about? The Sonos music system.

First, a disclaimer. They sent me this so I could try it out. It’s one of the things that arrived before I said “no more free stuff.”

I have to admit this is pretty cool. It lets you put a controller in each room in your home.

And you control it over Wifi.

This rocks. We’re playing my iTunes stuff right now.”

Then later in the post Robert says:

“Tomorrow Chris Pirillo and Ponzi is coming over for brunch. It’ll be interesting to see what they think. (Chris always has the coolest stuff before I do, so if it impresses him it’ll impress everyone).”

Let’s compare some statements in this post with the July 2nd post:
1) Robert talks about Sonos (with an outbound link to the product no less) in the April 8th post. You then use the terms “I have to admit this is pretty cool” and “This Rocks” to describe it. Then on July 2nd Robert says, “Well, I never really gave them a review until today.” If alongside an outbound link to the product it’s stated that something is “pretty cool” and that “this rocks” isn’t a review, I don’t know what is.
2) In that post it says that “First, a disclaimer. They sent me this so I could try it out. It’s one of the things that arrived before I said “no more free stuff.”” In the July 2nd post it talks about a new Nokia phone that just arrived. If the “no more free stuff” was truly operational you’d send it back to the shipper immediately or refuse delivery. Which is the true policy?
3) Does one not get value out of something for using it for a few months? In the car industry it’s a called a lease and there are payments involved. Did you pay Sonos or Nokia for value received during usage of these products for a period of time? If not, would you not admit that you got some value out of them?
4) In your April 8th post you said the Sonos might impress Chris Pirillo and go on to say that if it impresses him it will impress everyone. Does one gain any personal value out of impressing people with new gadgets that were sent to you?

Regardless of whether you gave the items away after a few months or not, Robert did talk about them on his blog and if they had not been sent to you likely would not have talked about them. You then gave Sonos even more buzz again by giving it away at Gnomedex as “hundreds of people witnessed it”. Why did Robert choose this high profile place to give away this item instead of quietly giving it to charity anonymously?  So regardless of whether you reviewed the product on April 8th, you gave it buzz on your blog twice and in front of an entire conference. That my friend has value to certain people with your increasing public profile in terms of buzz for Sonos. Disclosure or not Robert created significant positive PR here for Sonos by discussing it in his blog – when it arrived and again after giving it away as “hundreds of people witnessed it” at Gnomedex.

While the data from yesterday’s mention is not in yet, I would suggest that this Alexa (yes I know Alexa has flaws) graph showing the spike in traffic in April around the 8th suggests the buzz impact of this mention or review quite well:

sonos_alexa_graph

 

 

 

 

 

As I discussed previously in e-mail with Robert a few weeks back, “Naked Conversations” is about trust (and how certain actions enable trust to occur). If someone were to purposely write something misleading about a Nokia phone and someone bought it and it sucked, that individual would call that person out on it. In other words, the trust is self-policing even without disclosure. I therefore don’t need to be told like a child each time that you got these items for free, as I believe that you would not do something so foolish as to blog positively about a product that you thought sucked. Just lile the “Claire” blog at Vichy, people figured out what was and wasn’t real on their own – without any disclosure.

To summarize, while I certainly can’t speak for the whole blogoshpere, I trust that you are wise enough to not write something positive that you don’t truly believe to be true about a product regardless of whether you disclose that you got something for free or not. Aren’t you worthy of this trust Robert?

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My Visit to the New Nokia Store in Chicago

Since the beginning of cell phone industry, cell phone service providers were the distributors of cell phone plans and then they dictated to cell phone makers which phones would be used and even what features they would have.

The cell phone manufacturers are trying to change the dynamic encouraging you to choose among the more expensive models and then pick the providers compatible with that phone. Make no mistake, the battle here is about channel and who controls a bigger piece of the pie. Market leader Cingular’s is noticeably absent among the choices of providers. My view is that they view stores like this as channels that are a threat to their control.

Not sure that anyone truly needs the $800 featured cell phone though. It’ll be interesting to see how this stuff develops.

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Online E-mail Service Reliability Needs Improvement

At present, I have 4 web-based e-mail accounts, Google’s Gmail, Microsoft’s Hotmail/Live.com, Yahoo! Mail and my University of Chicago Graduate School of Business “Email4Life” account.

I can now discuss the issue without being accused of favoritism or bias because all four of the organizations above have now done this recently. This is the issue of e-mail reliability and making large changes in the live environment and ignoring the issues of a continuous and positive user experience is a disturbing trend. All of the above providers have had large outages and/or rollbacks to previous versions in the past month. This is not optimal and should not become the “norm”.

I’d like to ask program managers to please consider the following going forward:
1) Reliability of service is paramount and should not be sacrificed
2) Sacrificing long-standing features in new versions is not a good idea
3) Communicating and explaining the feature upgrades transparently is encouraged
4) Asking for user feedback on new features is encouraged
5) If the application operates more slowly using Ajax than it did before, please optimize it before implementing

I would hope that these organizations would understand the potential attrition and retention implications of actions such as these and change their future actions before it adversely affects them.

I’d like to share a glimpse at the top items on my wish list for improvements:
Gmail
– I love the conversation bundling feature, though there are times when I would like to unbundle a conversation and adding the ability to do this would be helpful
– Automatic spell checking (the new Hotmail/Live.com Beta has spell check integrated as you type – this should become the best practice)
Hotmail/Live.com
– In Live.com, restoration of the radio buttons to complete actions on multiple e-mails at once is necessary
– Stability of Live.com needs to be a priority, I switched back to Hotmail for now (you get kudos for the feedback form – though an acknowledgment that shows someone read it would be confidence inspiring)
Yahoo! Mail
– In the new version, restoration of the radio buttons to complete actions on multiple e-mails at once is necessary
– Automatic spellchecking (the new Hotmail/Live.com Beta has spell check integrated as you type – this should become the best practice)
– In the new version, I’d like it to look and feel more like the old Yahoo! Mail – e-mail me if you’d like more detail
University of Chicago
– Build an understanding that Email4life is a critical alumni networking tool and treat it as such
– Communicate clearly with all members of the community and act on their feedback in an accountable manner; In summary, providers need to fully consider the user experience when making changes in their offerings
Do other people have other suggestions or thoughts on this issue?

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Internet Retailer 2006 Workshop Summary: Affiliate Marketing – The Unsung Hero of Online Marketing

Boris Wertz, COO, Abebooks.com

20-30% of orders come from affiliate marketing

Research network hosted versus internally hosted options

Payout type – pay per sale, per lead, Hybrid – bonus for first time buyers

Tools – Establish a good mix of standard and advanced link types, provide deep and up to date data feeds

Staffing needs decision point – internal versus external

Familiarize yourself with payout types, run promotions

Retention – retention of affiliates is difficult, use CRM to track, communicate regularly with affiliates, etc

Optimization – Segment publisher by recruitment type, test landing pages, etc 

Measurement – compare MOM and YOY and web analytics 

Chris Henger, substituting for Stuart Frankel, President, Performics.com 

Affiliate marketing is 5-20% of online sales (interesting that his figure is lower than the Abe Books marketing speaker – maybe book category is higher?)– reach customers in the research and purchase mode

Affiliate marketing is fast growing but is a mature web space

Affiliate marketing is intertwined with the search channel 

Mass, open or private program – which one is right for you?

Approved, live and active program

Understand, Develop, Perform

Understand payment terms in your category and brand management implications.

Compliance lab to learn from affiliates. 

Steven Denton, President, Linkshare.com

Communication is paramount, affiliates prefer e-mails IMs

Send segmented newsletters and engage in proactive outreach

Suggested site – thebudgetfashionista.com

Compensation Structures will vary – tiered and bonus offers and sales contests and promotions

Hidden pitfalls – don’t dedicate enough resources, focusing on sheer number of affiliates, viewing affiliate marketing as cheap advertising    

Hub of affiliate marketing activity – abestweb.com

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Internet Retailer 2006 Workshop Summary: E-mail Marketing

Don Zeidler, Director of Direct Marketing, The W. Altee Burpee Co. (afterwards I asked him about his title and if I could assume that he was in control of both marketing in both offline and online worlds – not disjointed parts – he said yes – I suspect this will become increasingly commonplace in the future)

Mathew Seeley, President Cheetahmail, an Experian Company

Mark Friedman, Chief Digital Marketing Officer, Warnaco Inc.

Deliver Relevance in E-mail – this is critical as we get into message overload and this panel argued that means segmentation.

Not all customers are the same, so don’t treat them that way.

Basic segmentation – Demographic, Geographic, A/B Testing

Types of campaigns to test – Win Back, Loyalty, Servicing, Operational, Remarketing, Life Cycle, Renewal, Transactional

Thank you notes after purchase have a high ROI

It’s the little things that matter:

Ask Them

Grow Your List

Keep Your Creative Fresh

Welcome, Birthday, Thank You Message

Integrate Call Center, POS, In Store Kiosk

You don’t have to get all of the data at once. Start slow, ask for more data later.

Email authentication –

ISP feedback loops – example – MSN Smart Market Data

Be aware of new services like Sender Score Certified – a service of Return Path

In the final analysis, if you don’t send relevant messages to your customers, someone else will and you will lose out!