marketing | Paul Wallbank - Communications Professional

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How many businesses left money on the table over the Christmas break?

This post originally appeared in Smart Company.

Many industries hoped this Christmas was going to be their saviour – across the country businesses in the retail, tourism, real estate and many other service sectors hoped they’d see an upbeat end to a tough year.

When you’re doing it tough you don’t turn customers away, yet thousands of businesses did that over the Christmas and New Year break by not updating their website to reflect their holiday trading hours.

Almost every business I encountered over the break had little – if any – information about their Christmas trading hours. In holiday towns where visitors are unfamiliar with the local businesses many cafes, restaurants and service businesses didn’t have a website or a local listing despite customers searching for them on iPads and smartphones.

Smart Company’s sister site Property Observer discussed this problem in the real estate industry where tenants were being left with problems over Christmas because there are no emergency contact numbers shown on websites.

What’s even more amazing about real estate agents in holiday areas is many pack up for a week or two and miss possible vacation rentals or even sales to enthusiastic out of towners. Who would have thought real estate agents would let commissions pass them by?

For me, I found information lacking on sites for both small and big businesses. To check the opening hours of Myer stores for instance required downloading a PDF file, Australia’s biggest retailer surely can spare a few hours of a junior’s time to updating the opening hours in their already inadequate store finder.

Similarly the City of Sydney fell down on their swimming pools, with their fabulous Victoria Park and Boy Charlton complexes both showing the wrong opening hours. This customer took his business to Leichhardt and North Sydney instead.

Most of the local shops did poorly as well – few had any mention of opening hours at all let alone Christmas trading times. Those who did open probably missed business because people assumed they were closed or found another place online.

Not updating a website would have made sense ten years ago when even the smallest change meant a fat bill from your web designer. Today online publishing tools like WordPress and Drupal mean there is no reason for you or your staff not to log on and make minor changes like revised hours or holiday specials.

If you still fear a fat bill each time you ask for a change to the website then it’s time to sit your designer down and discuss making some changes to the way your site works – not to mention some strong words about your billing arrangements.

Having up to date content isn’t just good for helping your customers, it also adds credibility to search engines like Google and Microsoft Bing which like sites that are regularly updated.

Almost every business has something to say during the year, whether it’s a new product line, welcoming a new staff member or having a special offer. There are also seasonal factors like Christmas, back-to-school, end of financial year and whole range of annual events that affect your industry.

The beauty of the web right now is that we aren’t constrained in what we want to say about our businesses, so next Christmas let your customers know great you are and which days and times you open.

Successful Sources Will Not Be Paid

The free myth is biting us in many ways

The whole world wants a freebie, and many of us are giving our ideas, intellectual capital and service away to online magazines in the hope of getting a link or a little bit of publicity.

Bringing the idea undone is the unfortunate reality that web is awash with free pointless material that adds little value. Your contribution, however valuable, gets lost in the static of PR driven articles and SEO optimised fluff.

This is why Google are trying to tie social recommendations into their search results, although it’s hard to see how your cousin’s LOLCat posts are going to add any more value than the generic garbage served from services like eHow.

Yet every day there’s more callouts for free content – desperate journalists and publishers beg for our ideas or labor in return for some ‘exposure’.

And that ‘exposure’ floats away into the ocean of noise and irrelevance filled with the rest of the ‘free’ content.

Giving stuff away for free isn’t working well anymore and for those of us who are trying to build a business around that model, we’re struggling to get found or heard in the morass.

Along with the wasted time, the danger is we start giving away our best, most valuable work in order to get attention and then we have nothing left to sell.

Consumers are waking up to this and beginning to focus about what they read online. We should too.

Why the Microsoft Faithful are wrong about Windows Phone

Is it too late for Microsoft beat Apple and Google in mobile phones?

Late last year an event organiser recounted how she’d been told to only approaching Microsoft for event sponsorship if the occasion was related to mobile telephony as “all of our marketing budgets are focused on Windows Phone.”

So it wasn’t a surprise to read at the beginning of this year that Microsoft were allocating $200 million for marketing Windows Phone in the US alone.*

The Consumer Electronics Show is the high temple of tech journalism with thousands flying in from around the world to breathlessly report on the latest wide screen gizmo or mobile device

At the 2010 show, 3D television was going to be the big consumer item while at the 2011 event it was going to be Android based tablets that were going to crush the Apple iPad.

Despite the millions of words written and spoken about these products, both flopped. So it was no surprise we were going to see plenty of coverage of Microsoft given the budgets available and it being the last time Microsoft’s CEO, Steve Ballmer, would give the CES keynote.

Microsoft’s CES publicity blitz kicked off with a rather strange profile of Microsoft’s CEO in BusinessWeek which if anything illustrated the isolation and other worldliness of the company’s senior management.

The PR blitz worked though with Microsoft tying for first place in online mentions during the show according to the analytics company Simply Measured.

After the show the PR love for Microsoft continues with Business Insider having a gorgeous piece about why Windows Phone will succeed and criticising tech blogger Robert Scoble’s view that the mobile market is all about the number of apps available.

Scoble replied on his Google+ page explaining why apps do matter and adding that most of the people he meets hate Windows Phones, the latter point not being the most compelling argument.

The most telling point of Scoble’s though is his quoting Skype’s CEO that they aren’t developing an app for Windows Phone as “the other platforms are more important, so he put his developers on those”.

Microsoft spent 8.5 billion dollars buying Skype and intends to lay out over $200 million promoting Windows Phone. Surely there’s a few bucks somewhere in those numbers to pay for a few developers to get Skype functionality on the new platform.

Since writing this, Robert Scoble has issued a correction from the Skype CEO stating a version is being built for the next version of Windows Phone

The fact Microsoft can’t organise this seems to indicate not all senior executives share the vision for Windows Phone. It’s difficult to image Google or Apple having this sort of public dissent on a key product.

Management issues aside, Microsoft’s real problem are they are late to the mobile party and don’t have anything to gain attention.

There’s nothing wrong about being late to the party – Apple were late to enter the MP3 player, smart phone and tablet markets – but in each case they bought something new that changed the sector and eventually gave them leadership of each sector.

With Windows Phone, there’s so far little evidence Microsoft are going to deliver anything radically new to the sector. With Apple’s iOS and Android dominating, it’s going to be a tough slog for Microsoft and they are going to have to have to carefully spend every cent of that big marketing budget.

At least Microsoft’s PR team is doing a great job, the challenge is for the rest of the organisation to sell it as well.

*As an aside, it’s interesting the author of that article about Microsoft’s marketing budgets boasts how he “been sitting on this information for weeks so that Microsoft can make its big announcement at CES this coming week”. It’s good to know where Paul Thurrott thinks his responsibilities lie – certainly not with his readers.

The business of baffling choices

Why do computer and phone companies offer so many plans and models?

In his Daring Fireball blog, John Gruber’s takes to task the view that Apple suffers through not having a wide product range.

John makes the valid point that Samsung seems to stealing market share from HTC rather than Apple but the whole theory of offering too many choices strikes to the heart of two industry’s business models.

Those two industries are the mobile telco business and the Windows personal computer sector.

In the PC world, the wide range of models has been both an advantage and a weakness; it’s allowed Dell and others to create custom machines to meet customer needs but also leaves consumers – both corporate and home buyers – confused and suspicious they many have been taken advantage of.

All too often customer were being had; frequently buyers found they’d bought an underpowered system stuffed with software that either was irrelevant to their needs or an upgrade was necessary to get the features they hoped for.

The entire PC industry was guilty of this and Microsoft were the most obvious – the confusing range of operating systems and associated software like the dozen version of Microsoft Office was deliberately designed to confuse customers and increase revenue.

For the PC industry, the “baffle the customer” model reached its zenith, or nadir, with Windows Vista where Microsoft deliberately put out an underspecced ‘Home’ edition designed to push sales up the value chain.

Compounding the problem, most of the manufacturers followed Microsoft’s lead and put out horribly underpowered systems in the hope that customers would upgrade with more memory, better graphics card and bigger, faster hard drives.

Most customers didn’t upgrade and as a result the Vista operating system – which was horrible anyway – enhanced its well deserved reputation for poor performance.

In the telco sector, consumer confusion lies at the heart of their profitable business model; a bewildering range of phones and plans often leaves the customer spending too much, either through an overpriced plan or paying punative charges for ‘excess’ use.

Having a hundred different types of Android phone adds to the confusion and, by restricting updates, they can cajole customers into ‘upgrading’ to a new phone and another restrictive plan every year or so. This is why you get phone calls from your mobile phone company offering a new handset deal 18 months into a two year plan.

Apple’s model has been different; in their computer range there has never been a wide choice, just a few configurations that meet certain price points. The same model has used for their phones and iPads.

For Apple, this means a predictable business model and a loyal customer base. They don’t have to compete on price and they don’t have to fight resellers and telcos who want to ‘own’ the customer. It’s one of the reasons mobile phone companies desperately want an alternative to the iPhone.

Companies using the baffling choices business model – Microsoft, HP, Dell and your local mobile telco – may well continue to do okay, but that business model is coming under challenge as new entrants are finding new niches.

For all of us as consumers all we can do is make the choices that are simple are reject complexity. Warren Buffett has always maintained he doesn’t invest in businesses he doesn’t understand, perhaps we should have the same philosophy with the purchases we make.

The importance of transparency

The US Federal Reserve has announced they will release more details from the information they use on determining official interest rates. On the same day the social networking site Twitter is embarrassed when its opaque verified account policy fails.

Being open and honest is the key component in trust and in turn trust is the bedrock of society. If you can’t trust your neighbour, the local cop or the grocer at the shops then society quickly starts breaking down.

Many big businesses, particularly those in markets where they are one of a small group of incumbents get away with abusing your trust; they tell an illegal surcharge can’t be waived because “that’s their policy, you can’t change an account because of the “terms and conditions” and that the call centre’s operators name is Janet even though it’s Rajiv and you know that when you call back asking for “Janet” you’ll be told”there’s 35 Janets working in the department right now”.

All of this we’ve come to expect from big bureaucratic organisations like the phone company, the bank and the tax office. The interesting thing is how many new businesses that are adopting this anti-customer model of operating.

Rules and policies are fine – as long as everyone knows them, they aren’t too onerous and they are applied fairly and consistently.

The challenge for all businesses – particularly those taking on incumbents – is they have to show they are more trustworthy than the existing operators. If you can’t show that, then maybe it’s time to think about how you operate.

What’s a Twitterer worth?

How business can put a value on social media

$2.50 per month is what Phone Dog think a Twitter follower is worth in their lawsuit against a former employee.

As nebulous and ambiguous as Phone Dog’s claim seems to be it appears some price is being created on the business value of social media users.

To date we’ve seen services like Empire Avenue, Klout and Kred try to measure social media users’ real influence on the different web platforms which in turn allows businesses to allocate some sort of value.

As social media and the web mature, we’ll see businesses spend more time understand where the value lies online.

Each platform is going to have a different value to a business. Depending on the market, one person may be worth more on Twitter than on Facebook and similarly a business may put more value on members of a specific LinkedIn group or industry forum.

What we shouldn’t confuse “value” with is how the services themselves make money. For Facebook, the value comes from the marketing opportunities presented by people sharing their lives while for LinkedIn it’s largely coming from employment related advertising and search.

Other social media platforms are finding other ways to make money and each will have a different attraction to users, businesses and advertisers. All of which will affect their perceived value.

That perceived value is the most important part of social media. If users don’t think a site adds something to their lives, then that service has no value to anyone.

It’s tempting to think that people will object to having a “value” placed on their heads as users, but most folk understand the commercial TV and radio that does pretty much the same thing.

The real question of how much people are prepared to share online will come when they understand the value of the data they are giving the social media platforms. When users start to understand this, they may ask for more service from these companies.

What a Twitter user is worth right now is probably different to what they will be worth this time next year, but there’s no doubt we’ll all have a better idea.

The auctioneer’s dream

“One day I’m going to buy a whole pile of junk PCs from a company that’s gone bust and sell them at an auction like this,” said Mark, an old business partner, as I lost a bet that a group of almost valueless laptops wouldn’t be sold for more than $10 each.

The media release behind yesterday’s article on protecting USB data found on attracted criticism about Cityrail’s attitude towards privacy – which is fair enough as good manners, if not privacy laws, dictate you’d wipe someone else’s data before giving a drive away.

More notable in the IT News article is the comment that Paul Ducklin, chief technology officer at Sophos, “was shocked when the auction price was nearly twice the average retail value of the USBs.”

Paying over the odds for second hand technology is a trap many fall for, the average consumer doesn’t comprehend just how much technology depreciates or the risks, such as malware or defective hardware, that could be found when you finally take that computer bought at auction home.

The main attraction of auctions is that people believe they are getting a deal, the idea things were dirt cheap on eBay drove the service’s growth for much of its first ten years.

Of course that hasn’t been the case for some time and many people paid a lot of money for junk they didn’t need even when things were “cheap”.

The only way to really get a deal at auction is to know the retail price, then factor in realistic depreciation and the risk of buying a dud.

My rule of thumb at those IT auctions I used to attend with Mark was that when the bids passed more than a third of the retail price, people were overpaying. I rarely bought anything except office chairs and the odd filing cabinet.

I haven’t heard from Mark for a while, I suspect his business plan didn’t work out when he overpaid for some surplus equipment from a liquidator.

What business can learn from Groupon

How can businesses use the web to grow like the group buying companies?

Groupon, pioneer of group buying and one the fastest growing companies in history, will have its launch on the stock markets today with an initial public offering (IPO) that’s values the business at thirteen billion dollars, more double the $6bn that Google offered for the three year old company last year.

A recent Business Insider profile of Groupon had some fascinating insights on this unique company and its growth, there’s a number of lessons that most business owners, entrepreneurs and managers can take from this company’s dramatic growth and market leadership regardless of the sector they operate in.

Apply tech to your business

Many people make the mistake that Groupon is tech startup when it’s actually a sales operation.

Groupon’s business model isn’t really new, what they have done is applied various web technologies to the directory and voucher shopping industries and come up with a 21st Century way of doing things.

Bringing together different modern tools like social media, cloud computing, local search and the mobile web makes businesses more flexible and quick to develop new market opportunities.

Prepare for quick changes

Groupon was born out of another business – The Point. As The Point steadily died, Andrew Mason and his mentor Eric Lefkofsky decided to try something different and Groupon was born.

This ability to change focus quickly – often called “pivoting” – is essential in changing markets. In volatile times like today where today’s business conditions can’t be taken for granted we have to be prepared for rapid changes.

Fortunately the cost and time to changes your business focus has dropped dramatically with digital and online tools, which is another reason to embrace tech.

Get a good business mentor

Eric Lefkofsky bought maturity and a perspective to Groupon’s young leadership, having a different and more experienced view of the business helped it develop and grab the opportunity.

An experienced business mentor can be worth their weight in gold.

Back a good idea

In Nicholas Carson’s Business Insider profile he describes Andrew Mason role at Eric Lefkofski’s business before The Point as “an intern, ‘kind of squatting in their offices'”. Lefkofski was prepared to back the geeky kid camping on his premises.

Putting your prejudices and judgements on the shelf to back good ideas, particularly those that don’t cost much to execute, is one way to find where the opportunities lie.

Tell your business story

Regardless of what you think of Groupon’s claims, they tell a very good story which has lead to their amazing growth and the development of the group buying industry.

Being able to tell your story, in your terms, is one of the great advantages the web, local search and social media deliver. There’s no reason why your business shouldn’t be dominating the local market in whatever field you work in.

Regardless of what your business does, it can benefit from applying the online tools that are available to all of us.

We may not be the next Groupon but the web gives us the opportunity to build our business to take advantage of the 21st Century. It’s worthwhile understanding the new tools at our fingertips.

The reverse ambush

Ambush marketing isn’t always a good idea

As the Apple faithful starting queuing outside stores to buy the latest version of the iPhone, in Sydney electronics manufacturer Samsung set up an outlet a few doors up the street and offering $2 Samsung Galaxy phones.

Some in the press portrayed this as “ambush marketing” by Samsung, claiming that the Korean company has stolen coverage from Apple.

In reality, all the stunt has done is emphasise the different market positions of the companies; Samsung have people camping out for $2 phones while a few doors up the street there’s a bigger line for an $800 Apple product.

The message is clear; Apple’s products are more desirable than Samsung’s at even 400 times the price.

Whatever Steve Jobs was reincarnated as – a Bogong Moth or the next Dalai Lama – he’s laughing right now.

The online review challenge

Customers’ web reviews matter for your business. How do you handle bad online comments?

Last Christmas a group of office workers gathered at a city hotel to celebrate the year’s end. The meal was a disaster as slow, surly staff made mistakes and delivered poorly cooked food.

Within an hour of the workers returning from lunch, negative reviews of the hotel started appearing on the Eatability and Urbanspoon websites. By the time Christmas Day rolled around, the reputation of the establishment was throughly trashed.

The rise of online review sites along with social media services like Facebook challenges many businesses, particularly those in the hospitality industry as café owners, restaurateurs and hotel managers struggle with unfavourable comments about their establishments.

Customers now research on the web before deciding to dine out or make a purchase, so online reviews can make or break an establishment. How does a business make sure their online reputation is safe.

Pay attention

The most important part is to pay attention to what people are saying about your business.

Big corporations will have their own social media staff and community managers to handle much of this, Telstra last week announced their online team will now be on the web 24/7.

Larger organisations will also subscribe to online monitoring services like BuzzNumbers and PeopleBrowsr to report what’s being said about them.

For smaller businesses it falls on the owner and staff to keep an eye on the popular review sites and to monitor the business’ Facebook page for negative comments.

Engage the critics

No matter how good your business is, you will get the odd unhappy customer. When that happens you need to contact them, preferably through the same public forum they have complained about you.

Once you’ve established contact, take the discussion offline onto email, phone or even face to face meetings. If the resolution is positive, try to publicise the result in the original channel the complaint was made.

Fix the problem

Despite many in the hotel industry believing that most online complaints are deliberate campaigns against them, regular complaints are usually legitimate and indicate an underlying systemic problem in the business.

If customers are complaining about service, you need to let your staff know customers are talking about them. Should there be regular criticisms of your food, then you need to talk to your kitchen staff or suppliers.

Don’t get defensive

Complaints happen. Even the best business in the world has a bad day or encounters a customer who woke up on the wrong side of bed.

If you think the criticism is unfair or even defamatory, don’t get angry and certainly do not make threats as you’ll only inflame the situation more.

Should the customer turn out to be unreasonable, at least by having publicly engaged them you’ll have shown the public you’re calm, professional and trustworthy.

Don’t Lie

The web is as great at exposing falsehoods as it is at spreading them. If you’re clearly not telling the truth, you’ll make your critics angrier and more determined to damage your reputation.

A common way many businesses cheat online is with false reviews. Despite industry claims that organised damaging comments are widespread, the reality is the opposite as many hoteliers and restaurateurs frequently post clumsy and obviously fake glowing reviews of their establishments. It’s a bad look and the establishment often ends up looking foolish.

Get your website right

Many businesses, particularly in hospitality, have lousy websites or a site that has no Search Engine Optimisation (SEO) so when someone searches for a hotel or restaurant their page comes up way below those for review sites or critical blog posts.

Regularly review how your site is doing and talk to your web designer or SEO consultant on making sure it’s coming up well when customers search for your type of business.

It’s important not to overlook local search services so ensure your business has been listed on Google Places and has a Facebook Local Business Page otherwise local searches will go to the online review sites or your competitors.

Ultimately, the best way to deal with negative online reviews is to minimise them by running a good business. The biggest effect the web is having on business is that it is making us accountable to our customers.

As big corporations are finding, the days of covering up poor goods and indifferent customer service with marketing is over – if your product doesn’t match the promise you make to your customers they will tell the world.

The quest for virility

Chasing big numbers on the Internet is the most basic online mistake of all.

One of the common Internet traps is a mindless quest for numbers; when we first go online we’re obsessed with gathering Facebook friends, Twitter followers and LinkedIn connections.

For businesses, we get seduced by the prospect of big markets to sell to; which isn’t surprising when there’s nearly 700 million people on Facebook, over 50 million tweets sent every day and the group buying market is growing almost as quickly as the number of new entrants into the industry.

The current holy grail for many businesses is the viral video; a troupe of dancers extolling your business to surprised commuters, a cool ex-football player giving advice from a shower or a tasteful video of your staff doing their jobs naked is seen as the way to get millions of ‘likes’ or ‘follows’ from eager web consumers.

For the successful ones, creating an online clip seen by your mother and a million of her friends is an easy way to get a campaign to worldwide markets without spending massive marketing budgets. Not to mention the trip to Cannes and the accolades for any advertising agency associated with it.

Sadly creating a video that goes viral is harder than it looks as we discussed at the Media 140 Conference in Perth last week; it has to be quirky, entertaining and attention catching which is pretty well the antithesis of the typical corporate video.

To compound the budding viral videographer’s problems, there’s the corporate desire to control the message. Almost every high profile blogger or online editor has stories of struggling to get permission to use an organisation’s clip because of the managerial urge to control distribution.

No doubt those managers have good reasons for controlling the use of their videos but we can be sure those same control obsessed administrators are constantly bugging their agencies to create something viral.

Losing control is a great risk for managers and bureaucrats. Last year prolific wine blogger Gary Vaynerchuk visited Australia and gave the local wine industry some great publicity.

Sadly, in reviewing the some wines from his visit he described a Yarra Valley wine as having “a taste of burned vomit” (at 4.25) probably put the Australian wine market in the US back a decade.

Gary Vaynerchuk is probably the best case of someone who has grown a business through viral video, through adding interesting valuable content with a real character. An equivalent Australian success has been Natalie Tran’s Community Channel.

One of the other points with these is many of the early successes have been because they were early entrants into a new market. Today, the marketplace is a lot more crowded and videos, like any other online content, are struggling to get heard.

That’s not such a bad thing as it takes away the obsession with numbers and makes us focus on the quality of our online audience. Rather than obsessing about raw hits, we start considering where our customers are.

Group buying is a good example of where well targeted campaigns work well. The successful group buying advertisers are thinking about where the offer, product and audience fit in their business plan rather than just fixating on the tens of thousands of potential customers for a quick sales boost.

While a Charlie Sheen tweet might drive page views, the real business objective of the web is about establishing our brand and attracting the customers we want, not just achieving big numbers.

Running your own coupon campaign

Do-it-yourself coupons may be the better tool for your business

The group buying goldrush continues as now even Facebook are considering starting up their own service, but do businesses need to be using these platforms at all?

Behind the group buying mania is the idea retailers can use these services’ large mailing lists to promote their business while clearing excess stock to bargain conscious shoppers.

Those reasons are valid, but for the privilege of accessing their databases the group selling services charge substantial merchant commissions, representing a 20 to 50% cut from the seller’s income. If the discount is really deep, say 80%, then the site often takes the remainder of the sale leaving the retailer giving the product away.

For access to a mailing list, that’s a pretty big outlay to the merchant who may be operating on thin margins to start with. The cost can even be greater given most of the group buying subscribers are shopping on price and converting them into loyal customers can be a struggle.

It is possible to run your own coupon campaign. Both Google Places and News Limited’s True Local have features in their free local services where you can set up coupon campaigns and publicise offers.

The advantage with these is you capture shoppers in your neighbourhood, the coupon lasts longer than one mail shot and doesn’t require a fat discount to grab the attention of shoppers already jaded by 60% off waxing services and half price exercise classes.

Running your own coupon campaign puts you in control, saves the often fat commissions and when done cleverly can break you out of the damaging deep discounting mentality the group buying sites promote.

You can also put links to these offers on your website, Facebook page and other social media channels, further building those channels and giving you more opportunities to convert one off buyers into loyal customers.

There’s also the advantage that the search engines, particularly Google, love these offers – it’s part of their US roots where clipping coupons is a fundamental part of retail marketing.

You don’t even need to come up with a new offer. If you currently run ‘cheap Tuesdays’, happy hour or other promotions, you can build a coupon campaign around them.

All of this is another reason why you should be taking the local search tools seriously even if you do already have a website.

Group buying sites do have benefits for a retailer such as exposure to a wider, new audience and it’s worth considering them in the right circumstances. Trying a do it yourself local coupon campaign may turn out to be the better option for most businesses.

Paul will be holding a masterclass that looks at local search, adding coupons and how to get a small business fully online in two hours on March 24 at Mosman, NSW. Spaces are still available.