What can I say? Jeremiah Rocks! Enough said.
Category: General
Chicago GSB MBA
Scoble You’re Cracking Me Up!!!
The other day Scoble posted about how video blogs are superior to text and I disagreed. Well two days later he posts this gem about Yahoo!’s announcement today about slightly lower earnings due to lack of realization of projections and guidance. (Maybe they should take Progressive Insurance’s stance and not give guidance, now there is a positive idea!) Anyway, today, Scoble says banners are discretionary spending while text ads aren’t and Google is winning and will outperform in a recession….blah blah blah…well guess what there is a large home page ad from Ford on Yahoo’s home page right now as I write this. People are talking about this little change in guidance like Ford told Yahoo! to go get completely lost, that is *NOT* the case.
This particular analysis is way too simplistic and there is significant other information to consider:
1. Unless you work at Google in sales or finance (maybe PR like David Krane), you don’t have any idea how this has affected Google this quarter.
2. That Ford ad on Yahoo’s front page is a *branding* ad, a picture of an actual vehicle! Any SEM worth anything will tell you that getting people to see a text ad as good spend for branding is a hard sell.
3. The Auto industry adopted online advertising early in the game. Perhaps they are reaching a penetration point where further accelerated growth is not possible at the same level? To confirm this thought further, a senior Google person I know (who actually returns her phone calls – props to her!) that I met at ad:tech in July recently moved from, guess what the Auto sector to Consumer Package Goods shortly before I met her (her card still said Autos). Maybe Google analyzed these same facts and decided to redeploy a valuable asset, in this case a person, to a place where it woudl get higher ROI. Good for them.
4. I also know that Ford recently hired a SEO firm to do alot of work on alot of sites. Maybe it’s because they realize that SEO and not text ads frequently have a superior return? Hmmm.
5. If text ads were the be all end all, why is Google launching radio and video ads?
6. UPDATE: Regarding financial services, this is all about the housing bust and no more “Own a $1.6 million dollar home for $99/month the first 4 years” text ads. I think this will affect everyone equally in terms of earnings and hoepfully some of those types of ads will never return.
So Robert which is it? Video and/or pictures or text?
Marshall Field’s Sentiment has Blogosphere Legs
Yesterday’s loud announcement of a Macy’s boycott (forward via e-mail to friends) and destruction of new Macy’s credit cards to loud cheers shows that customers aren’t satisfied with Macy’s decision to remove and destroy the Marshall Field’s (and other) brand name. If Federated’s CEO Mr. Terry Lundgren and board of directors thinks this strong feelings of people are going to go away on this they are wrong. Since traditional newspapers get significant advertising revenue from Federated they have little incentive to push the true story (notable exception: big props to P.J. Huffstutter of the LA Times), this is a job for bloggers to work to reduce the store’s sales and eventually force Federated to sell these stores to someone who will change the name back to Marshall Field’s. This may take months or even years, but it can happen!
Notice all the blog posts out there, the conversation is only starting to link, bond and discuss (use “Macy’s boycott” and “Marshall Field’s” in your posts/tags): Dauber’s Chicago Blog, The Budget Fashionista, baka_duo_neka, ikam, Temporary Trouble Spots, All-American Girl’s Road Trip, etc…
The Chicagoist.org also recently reported Macy’s doesn’t even know what street it’s located on!!!
Stay tuned to fieldsfanschicago.org and the blogosphere for more info. Rumor has it Macy’s is seeking a variation to put up a large neon sign and that there is a zoning committee meeting on September 15, 2006 at Chicago City Hall regarding this eyesore. Contact your Alderman and ask that this be stopped!
Macy’s is not what the lady (customer) wants, she wants Marshall Field’s (other flickr photos):
Tumi – Big Thumbs Up!!!
My Tumi laptop bag strap wore out recently. I called Tumi’s 800 number regarding their lifetime guarantee and within a week, a new strap arrived at no charge on a 6 year old item!!! Yes Tumi is more expensive, but the service level justifies it based on their actions after this phone call.
It’s great to see a company that stand behind their product and are customer focused like this, it’s all to rare. So please join me in showing Tumi some love as an example of a company that sets the bar in how to treat customers.
Costco (COST) – Needs Customer Focused Perspective
Before attending yesterday’s Chicago Cubs game upon a surprise invitation from my friend Pat Cunningham, I went to Costco. Before I talk about that though, the Cubs played the San Francisco Giants and Barry Bonds hit his 728th home run, he is now only 27 shy of Hank Arron’s record. You will notice that the ball thrown back on the field was not the actual home run ball per this ESPN Video, you wouldn’t have noticed it if you were at the game though.
During this Costco visit, they had recently redesigned the store layout, so much so that I simply gave up on a few of the items I was trying to find. As I waited in the checkout line I wondered if my actions were signing the death warrant for these items I skipped because all the buyers for Costco never look at these issues when they make their decisions. It’s clear that the company is moving away from its’ roots, providing excellent value. Every time I turn around something is being replaced with a “superior image product” that costs significantly more. The membership isn’t as valuable to me as it once was due to this continuous series of actions. The constant brand swapping can drive any serious food lover to near insanity when they find a brand they really like and then it’s replaced by an inferior brand by Costco’s buyers.
Two examples: 1. Earlier this year the Costco Lincoln Park Chicago location had these awesome Palmiers (somewhat like these) for several months, they moved them around the store no less than four times and they are no longer stocked – I firmly believe this was due to the movement factor affecting sales.
2. For what seems like forever, Costco carried New York Style Texas Garlic Toast in large economy sized boxes. Then a few months ago it stopped and replaced with a package of garlic bread in loaf form, not useful for sandwiches that was a fraction of the size and cost more! OK, one this one it’s clear the buyers have no clue how and why they choose certain products.
On my way out the door, I stopped and talked with the store manager, Brian. We talked about how the Customer’s viewpoint is never taken into account by the buyers. In fact, I showed him sympathy because he isn’t empowered to fix these issues or even experiment with such things as express checkout.
Costco is an example of an organization that would benefit greatly from blogging, but blogs should be the last and not the first step I now believe. The first step is to change the organizational focus so that customer’s voices are heard as loud if not louder than Wall Street’s voices. Without this dramatic top-down culture change of action, not words in regards to customer focus, then they would be a great blogging candidate to put the effort on steroids. I pitched to Brian the idea of having the buyers come into his store on a Saturday to actually listen to customers for a full day preceded by a 4-week period of pre-announcement – I told him that the store would likely have its’ busiest day ever and that this would be a very eye opening event for the buyers. I asked him to escalate my request for such an event internally so that this could occur and offered to e-mail him my blog post to save him time in explaining and communicating the idea during our brainstorming discussion. Maybe one day Costco might even create the role of Chief Customer Officer, I would love that!
Good Luck on creating that buyer visiting day, Brian. The blogosphere and customer champions everywhere will be routing for you.
44 Seconds of Youtube for All!
Lee Gomes at the Wall Street Journal wrote an interesting article today regarding the usage of Youtube talked Johan Pouwelse, a Delft University of Technology in the Netherlands, Anita Elberse, a Harvard Business School professor and Andrew M. Odlyzko, a mathematician who heads the Digital Technology Center at the University of Minnesota.
Based on the figure provided of 9305 years, each person on earth has watched 44 seconds of video:
Years 9,305
* Days 365
Total Days 3,396,325
* Hours 24
* Minutes 60
* Seconds 60
Seconds of Video 293,442,480,000
Earth’s Population 6,644,395,948
Seconds of Youtube
per everyone on earth 44 seconds
percent estimated US 0.70
US Population 299,605,719
Seconds of Youbtube per
US Population 686 seconds or 11:26
Guy Kawasaki Interview
Thomas Mulready of CoolCleveland.com interviews Guy Kawasaki via podcast as Guy will be visiting Cleveland on September 6th for a speech.
Thomas talks to Guy about “Art of the Start”:
– evangelist – used more than ever in job sites
– Xerox Parc and mouse and graphical user interface
– the mass of inertia that is against you when you starting a company
– talk about being pissed offness
– if a product or service isn’t good enough that is a good reason to start a company
– just starting a company because you hate them is not good
– what do you look for as a venture capitalist?
– young people who are not proven and a business model that is not proven
– the “Market doesn’t need it” argument is stupid
– dislike of mission statements, prefers a mantra 3 to 4 words long
– to avoid failure you’d have to try nothing – there are many cases of people
who have failed and have come back to win. I burned through $50 million!
– it starts with the universities, the engineering – if I had a choice between $100 million
in venture capital or a great university engaged with what is around it I’ll take the later
– Guy says his speech will be more about what not to do than what to do (this is great!)
– current state of Apple Computer is also discussed
Interesting to hear Guy interviewed outside the valley the vibe and questions are different. Enjoy!