Telco’s want in on Daily Deals

It was interesting to learn that O2 is now going to get into daily deals. They will be the first British Telco to enter this market and according to the Financial Times, they are going to invest £6 Million into their daily deals service with the expected participation of 3,500 high street brands. Shaun Gregory, O2’s managing director of media, said that their opt in process was going to be less clunky than that on Facebook and Foursquare etc. and would not require check ins. This effectively means it is not a location based service at all, but yet another spin on the Daily Deals I wrote about in my blog yesterday.

Ironically I and many other people in the telecommunications industries over the years have been trying to convince local telco’s to support payment for products via mobile, including vending machines, pointing out the enormous value in clipping the ticket on transactions. Probably about 12-15 years ago I was able to buy Coke from a vending machine at the local Ericsson office, but it was only ever a Beta service.

Amazon is also getting in on the act in the USA with Amazon Local which is yet another spin and hardly local given that it works in exactly the same way as the regional deals every other Daily Deal site offers, noting to do with check ins. It will at least support local businesses in the same way as other sites does with vouchers etc to be redeemed in local eateries and stores with the same debatable results. Amazon certainly knows the value of clipping the ticket as I mentioned in an older blog with a link to a Harvard Business Review Clip of John Donahoe explaining what his business model is, and I can tell you it is now selling books.

Eventually if you keep following this blog, I will get to the point of the value of using Location Based Marketing instead of Daily Deals. This is starting to seem a whole lot like the boring unimaginative reality TV shows that all the networks are rolling out. It’s much cheaper to imitate than to innovate and of course you are encouraging them by watching, because if you didn’t watch, then they wouldn’t be able to get advertisers to promote their daily deals businesses!

Group Deals and Offer Bombardment

The number of one day deal sites in New Zealand grows every day. There are dozens of them and many of them now have a separate site for each region with deals for experiences, dining, accommodation, attractions and activities. This is great for bargain seekers, but doesn’t necessarily do a lot for bricks and mortar businesses.

There are scenarios where they have value, for example if a business has very large volumes of aged stock that they need to quit. It can also be useful for new businesses to make customers aware they exist. They also come at a price. The more powerful the site, the more they charge with fees being anything up to 40% of the sale of each item.

If you want to attract new customers to your bricks and mortar store, then obviously you want a coupon or something that needs to be taken to the store for redemption. Even if you are quitting aged stock, there may be advantages in getting people into your store in the hope that they will purchase other products while they are there. There are also benefits to both the customer and the retailer in not having the time, packaging  and distribution costs in delivering product to the buyer. More on this in future blogs, looking at check in applications as opposed to group deals.

A study by Rice University found that  32% of businesses surveyed who used Groupon for promotions said they were unprofitable and 40% said they would not do it again. A major issue cited in the research was cannibalising existing business. Mashable quoted a statistic that less than 20% of people who purchased deals where they had to go to a store to redeem them, returned subsequently to buy full priced product.

So the question which I will come to in upcoming blogs is how to get people into your store at quiet times and more often. I believe the answer is in locations based services such as check ins and proximity based marketing. I welcome your experience or opinion on this.

Ideas for Retailers including Borders and Whitcoulls

As I mentioned last week, I am speaking at the  Mobile Marketing Forum in Auckland next month. I’m going to share some good practical business ideas there that smart retailers and destination businesses can implement. You might catch the odd one on #NZSoMo on Twitter, but I’d recommend if you want to get into and ahead of the wave of new social media and location based mobile marketing, you should invest in attending this event.

Some time ago I talked about the situation with Whitcoulls and Borders. I said I had lots of ideas about how they could run their businesses more profitably without sacrificing their models. I’m happy to share some of my ideas, but not all of them, because I am thinking that maybe there is an opportunity to partner with some local developers or entrepreneurs to commercialize some of my ideas, seeing as the people in these businesses can’t see the wood for the trees.

I’m happy to share a few concepts to get things started and to show I’m not just full of hot air.

First is basics. Whenever a business starts falling by the wayside, the smart ones go to consultants or mentors. Often the business has gotten so busy they forget about what made them great stand out businesses in the first place and often they have forgotten good business practices.

A key one is stock turn by category. Some of the books I saw in the sales were going to struggle at $1 a book and should never had been stocked. How did Borders NZ decide what to stock in each category? Did they liaise with the people who read the books or just on what the publishers told them.

Back in the day the late Shaun Joyce of Sounds Music used to consult my daughter on which albums he should bring in for the big teenage market. She was big on music and researched amongst her friends which meant they got what they wanted and Sounds stocked what the segment wanted and it moved.

Shaun Joyce

I haven’t explored retail in the US for a number of years because it was no longer relevant to my current business environment, but that is changing, partly due to a new solution that GeoSmart is launching soon called BIonaMAP or Business Intelligence on a MAP. More on this in the near future but it is very exciting for lots of businesses including retail chains.

I fell in love with Borders in the USA. Shame they may not be there much longer.

They were innovative in lots of ways. there were 3 that I particularly liked (I’m not writing a book here folks!).

1. They had book signings and meet the author every week (I’m talking about big city stores here). The ones I liked best were autobiographies, for example imagine going to a store, watching BB King play Lucille and sing a couple of songs, having a chat and then personally signing his new autobiography.
2. They encourage you to read in the store and have a cafe you can take the books to. My first thought was, they will damage the books. My 2nd thought was now I can check a few books to find out which is the one I really want, especially for me technical or music related books. I very rarely go to a book store and buy only one book. This year I have bought at least 20 books from local stores and another 8 from Amazon.
3. They have massive range, width and depth. If I want to buy anything other than a top 100 book (I’m not generally in the demographic for many of those).

I will come back with some advice and would love some feedback from you dear reader because part of the fin is coming up with the ideas.

My best business read this year has been Jeff Jarvis “What Would Google Do?” My first recommendation to whoever ends up owning and managing Whitcoulls and Borders (if they don’t just shut them down) has a mandatory read of this book. If they don’t come up with at least a dozen innovative, exciting and compelling ideas as a result, I’d suggest they resign from their jobs because they are stuck in the track of “This is how the book trade works, this is the way we have always done it”. Folks this is the way the book industry crumbles instead of making itself relevant. And no hanging a discounted eBook reader off a hangsell rack is not a modern way of doing business.

I will share some more ideas with you for those who need some sparks to get their thinking juices started, but I’m really keen for some participation here, so for each idea, I might also throw out some questions.

What do you think Borders and Whitcoulls can do better that would make you want to go to their stores and spend money?

I visited Borders on Saturday. They were having a stock take yesterday and I would expect some more sales coming up. Not much worth buying but I did get a copy of the 2010 book Kiwi Rock Chicks, Pop Stars and Trailblazers down from $49.95 to $5! They probably could have sold it in volume to the record store next door:(

Footnote, while I believe it is a long time before eBooks totally rule, but Amazon has announced that they have for the first time sold more eBooks for Kindle than printed books. Of course one issue and opportunity is the cost of freight, especially to NZ, but then that is compensated for by much cheaper books as long as you buy a few at a time.

Comparison Shopping

Comparison shopping on mobile devices has been around for a long time. I first saw apps pop up for Palm many years ago even before I had Bluetooth connectivity. Today things are even easier because of devices like iPhone and Android.

A couple of weeks ago I was listening to a Harvard Business Review Ideacast podcast with John Donahoe , which was refreshing  in itself because John had a refreshingly clear vision and understanding of what eBay is as a business, which is not about selling stuff on eBay. Have a listen for yourself. Any business should understand what it really does in order to be able to do it well. For example if you think a grocery store is there to sell groceries, or a car lot is there to sell cars, then you need to listen to this interview.

Anyway, he was explaining why eBay bought the company Red Laser, which reads bar codes through the camera on your iPhone or Android and lets you see information about the product and compare pricing at both other retailers and websites, such as Amazon and of course their new owner eBay.

This is really exciting, especially in countries like New Zealand where items such as books, which I buy a lot of, are really expensive, so shopping around makes a lot of sense. In that area, I have to say that locally I buy on impulse, when I see something I really want or when its on special. They are just too expensive otherwise. Of course if I had an iPhone or an Android, I could check in real time and see if it is worth buying now or paying the postage from the US.

It was really sad to hear that Borders is likely to file for Bankruptcy this month. They really are my favorite bookstore by far, even though I have complained that in NZ since Whitcoulls bought the local franchise, they are slowly turning them into bigger versions of Whitcoulls which pretty much defeats the purpose, although this situation may vindicate them.

One of the arguments sited for Borders’ woes is their failure to prepare for the growth of the eBook market. This may be true to some degree and it is inevitable that print media will follow the music industry. I’ve blogged about this before, which you can find if you dig into my tags. Print is expensive but there are lots of things that you can do. eBook readers is one, but for Borders I would have thought a great opportunity would be Print On Demand, because this can still  be done via the store and allow access to massive stocks without worrying about the costs of shelf space and aged stock.

Whoops, off on a tangent again. I was talking about comparison shopping. Yes there are loads of applications available, I’ve only picked on one. Mashable has a huge number of blogs on this topic if you want to find more.

So have a look at the Red Laser site, to see what what they are all about and watch the short video below from DizzyDougTV to see how cool this is. You don’t need a bar code reader, just the camera on your SmartPhone. Damn I do have to get an iPhone or an Android soon! Maybe I should set up a website with a PayPal (another eBay subsidiary) link called by Luigi a Smartphone:) Would you donate?

Footnote, a lot of people think of Smartphone apps as being the domain of men, but for women who love sales and special deals, this is one for you. I’ll leave the last word to CHIP Chick.

More on Location Based Applications and Privacy

In an article at LBS Zone, LeClairRyan attorney Kevin D. Pomfret says businesses should step forward to educate Congress and executive agencies such as the Federal Trade Commission (FTC) about the breadth and scope of location-based technologies, as well as the industry’s enormous potential.

This is something I have been saying for some time in past blogs. If we get Location Based Services applications right, they can enrich our lives in so many aspects. For example:

• B2C Marketing. I would welcome personal location based marketing, based on my location, time and interests. Tell me if there is a hot deal on a new guitar pedal or music software as I drive past a music store on a Saturday. My girls would love to be told there is a 2 for 1 coupon on the latest summer fashion as they walk past a shop and their colors and sizes are in stock.
• Health and safety. If one of my relatives is ill and needs medical help while on vacation, a blind or disabled person becomes disoriented, a diabetic travels and forgets their insulin, a car’s airbags deploy on a remote country road. These are all instances where consumers can be aided by LBS apps and help directed to them with ease.
• Entertainment. Rugby World Cup year starts in less than 24 hours in New Zealand. Wouldn’t it be great if people can sign up to services that know where in the country they are, what they are interested in and can guide them to other activities based on time of day, interest and location? It could be golf, a cultural performance, Happy Hour, a concert or music festival, you could opt in before hand with your interests so if you are a ballet fan, you don’t get guided to a Christian Death Metal Grunge Fest.
• The Road Trip. An application that provides car navigation, access to traffic information, entertainment, allows you to connect to your social networks, upload photos and blog, find ‘friends’ close to you and more.

We’ll see more of these in 2011, along with apps from Facebook, Google, Apple, Foursquare, Groupon, Twitter and hundreds of others. But what about the risks?

When you sign up for these applications, do you know who you are giving access to? Do you know whether you can opt out? Do you know of the service has the ability to delete your information if you decide to opt out. Often the services themselves don’t have that ability because Google and other services have cached it and even if they delete it, it still exists in other places.

It is a well know fact that criminal elements already use sites such as Facebook to identify people they want to commit crimes against. It might be that they want your car, your jewellery, your 65″ 3D TV, all the Christmas presents you displayed on your profile, or just to ransack your house. It may be nothing to do with you, as they say in the movies “Nothing Personal, this is business”.

You could follow this thread and think, this guy is anti LBS. Wrong, its how I make my living. I love it for what it can do for me and you. I just worry about how it can be used and believe it is incumbent on the developers to make the applications as safe as possible, to provide privacy controls and make sure people know how to use them. They might also want to consider liability insurance. I’ve heard of insurance claims by people who drove their cars into rivers because their nav told them to turn right. It won’t be long before there are claims from people saying that it is the fault of the social media location application, which indirectly told a car ring that their expensive sports car would be parked at the airport for 2 weeks.

The article that set me off on today’s blog was about educating politicians, something that needs to happen all over the world, because these applications go international very quickly. It is also necessary to educate the developers because they are focussed on what they want people to be able to do with their apps, not the inherent risks of uses they hadn’t considered. I often want my ‘friends’ to know where I am, but I don’t want people who are not my ‘friends’ to know where I am or where I am not.

This is not my first blog motivated by Pomfret. In September I wrote about Location Based Apps and Trust, prior to that Proximity Based Marketing and Trust, and a whole series of blogs around Who’s Looking at You on Facebook. In one of them I thought up a name at random, searched for someone with that name and found out a huge amount of information about the person. I found it to be very scary, what I could find out about that person. Add location to that mix now and it could become downright dangerous.

Of course the tables can be turned on crims as well as law enforcement agencies can use the same apps to find out what they are up to and where.

Location Based Applications and Trust

I just read a blog by Kevin Pomfret, Executive Director of the Centre for Spatial Law and Policy, about the decision of Craigslist to pull it’s Adult Services section after finding out that people had been using it for prostitution and trafficking of women and girls. He suggested that people developing geolocation applications needed to also consider privacy of users in the same way.

I totally agree. Already there are many anecdotal stories of people using Facebook and other stories to target empty homes. One story in Mail Online called Facebook a shopping list for burglars. It went on to suggest that insurance companies might increase the risk profile of clients who have social networking accounts.

Now of course we have Facebook Places, which starts by checking the city your IP Address is based in and then invites you to let it know exactly where you are. There are bound to be loads of Facebook applications for mobile that will use the GPS in your phone to check exactly where you are. Great for stalkers who want to find you and for others who want to know where you aren’t and such as when you are not at home.

For more on this, check out my blog on Who’s Looking at you on Facebook?

Now don’t get me wrong, I am totally into location based services. I just want to make sure that people understand what they are getting into when they start using them. An application I really like is foursquare. It has rewards for people who use it such as points and badges. You can see where your ‘friends’ are, which is great if you want to catch up with them. I recommend if you do that, you make sure you actually know and trust your ‘friends’.

As foursquare starts to work towards monetizing, a good thing to do for application developers:) they are now selling advertising and encouraging locations to offer deals based on proximity. For example, if you become Mayor of a location you can get special deals. If you are Mayor of Auckland Airport for example, you can get free entry into the Koru Lounge. The cool thing about that is that the advertiser doesn’t have to know who you are and has no way of knowing who you are unless you tell them.

That’s one of the places I want to go with proximity based marketing. I would like to see Happy Hour applications and be offered deals based on product segments I’m interested in, at times when I am not only in proximity, but also when I am open to an offer. Offer me a 2 for 1 deal at a bar on a Friday evening, but not on a Monday morning. Give me the ability and an incentive to invite my friends, but I don’t want the advertiser to to have access to my friends details unless they want to provide them.

Opting in and informed consent is crucial for location based marketing. There is a Code of Practice for Direct Marketing in most countries. Proximity Based Marketing is even more important and for applications to become accepted, we need to be able to trust that our privacy and security is protected. This is particularly important for children and young adults who could easily be targeted by dangerous criminals.

Informed consent is a key issue here. Most people don’t read End User License Agreements. Do you know the rights you have bestowed on Microsoft when you open Microsoft Office? Did you read them, or did you just tick the box and start using it. In the Windows 7 EULA it says “b. Use of Information. Microsoft may use the computer information, accelerator information,
search suggestions information, error reports, and Malware reports to improve our software and services. We may also share it with others, such as hardware and software vendors.”

If you use any application, especially a location based application, you need to clearly understand what privacy it allows you and what your potential risks are. More on this in the future. In the meantime, the onus is on the application developers to protect the interests of the users if they want to encourage them to use their applications.

When The Hyperfactory started in mobile marketing, they got together with advertising agencies and other interested parties and formed a wireless marketing association. One of the first things the association did was to form a voluntary code of practice. I believe the same thing needs to happen for location based applications and quickly.

Location Based Film

If you have been following my blogs, you’ll be aware that I am very passionate about the mobile and Location Based Services technologies. I am always checking out new concepts and many of them are variations on the same theme. This doesn’t make them less interesting, although one of the issues I want to work out is which ones offer a unique perspective that will allow them to be The Next Big Thing. That doesn’t necessarily mean it has to be the next Facebook or Twitter (which many people said was just a waste of time, in fact many are still saying it is going nowhere and won’t make money. You won’t hear that from me).

One that I recently found out about is GPS Film. GPS Film is an open source tool that allows film makers to produce a movie that people watch on their mobile smartphone. The film segments or chapters are triggered by the mobile being in certain locations. The example on the video below is a film called Nine Lives which was filmed in Singapore. The comedy which you watch on your iPhone or other Smartphone begins with a climax and then in order to see the rest of the film, you need to go to the locations where it the film was shot in order to see each clip. The GPS on the phone is the trigger to allow you to see the next scene.

This has amazing potential as a tourism tool. Imagine doing a road trip of New Zealand following a movie like Goodbye Pork Pie, or checking out some of the great spots in NY State from the movie Road Trip, where you have to be in those places to view each segment.

Now come a little back to earth and think about what you can do, and what Singapore has done with ‘Nine Lives‘. What a great entertaining way to explore a city. This looks to me to be a dream for tourism organisations. Given that it doesn’t have to offer a full cinematic experience, a cool film can be made with a modest budget, perhaps sponsored by businesses such as tourist attractions, accommodation providers, food and beverage chains, which would provide locations for segments of a movie. Did I mention it is Open Source?

This is definitely food for thought and a great opportunity around major events such as the Rugby World Cup next year. Check out this short video to see what I mean.

Proximity Based Marketing and Trust

In a previous blog I talked about how brands such as Subway could use Location Based Services (LBS) to promote their products to school students as a next step from their service where you can text your order through to the store. Location (x3) used to be the mantra of the retail industry, especially when consumers didn’t move far from their homes or work area. Of course today people are far more mobile.

I have frequently spoken about the value of PR as being far superior to advertising, which is a major problem for advertisers themselves. With Tivo, MySky and other services we can avoid TVC’s and with more and more people going online for their news, the advertising in print gets less views. The key point I make though is that people don’t trust advertising. In my Geosmart Blog, I wrote about the impact of this and the need to find different ways to deal with this.

Earlier this year in Amsterdam I spoke to a number of people who are developing expertise in the areas of social networking’ LBS and proximity based marketing and a common thread to this was in fact trust.

The marketers tell us that if the guys wear Lynx hygiene products, the girls will come running. In a previous blog, Why Do People Still Smoke? I showed a video of a doctor expousing the benefits of smoking. It’s no wonder that marketers and sales people are often looked at as shiny shoed spin doctors.

In 2006 Gallup asked pollsters to rate the values and ethics of a number of industry groups. Advertisers scored 11% on the high trust scale. Harris did a similar poll the same year and found that in contrast 66% of people trusted the ordinary man or woman in the street.

Amongst the changes that are happening in many areas these days are consumer advocates. Because people don’t trust advertising, and in many cases with good cause, they are turning to other consumers for advice. When I went to Jamaica a couple of years ago, I used Travelocity to read reviews from people who stayed at various resorts and used their feedback to book my stay and was pleased to find everything as I expected. As a consequence, I also used them to make my booking.

If 66% of consumers are happy to trust the man in the street, then what if we could give them access to their peers. This is of course where social networking comes in. Typically in a social networking environment, whether it is Twitter, LinkedIn, Facebook, MySpace, doesn’t matter, we end up developing online relationships (and real ones) with people that we associate with, that share our values and interests.

Mobile phones now offer a vehicle to extend the social networks into location. People now meet up in different parts of the world as a consequence of their location. I can use a number of applications to ask people in my network about local shops, accomodation or anything else. If I’m in LAX  for 6 hours waiting for a connecting flight, I can go onto Twitter on my mobile and see if any of my friends are nearby, or ask them what’s worth seeing, where is a good place for a coffee or a meal etc. I will then get their recommendation based on their local knowledge or experience. I can trust their feedback.

So I was talking about Proximity Based Marketing. If consumer advocacy is the most reliable form of marketing, there is an opportunity for brands to harness this. Off course the codicil is that they have to provide a great product or service because otherwise the mention will be poor and they need to be consistent.

One concept I’ve considered is a loyalty program around a hospitality brand, it could be a chain of bars, cafes or any other organisation. They could have a program whereby you got rewards for bringing other people to their establishment. For example, use a social network around their brand (a starting point could be as simple as a Facebook Fan Page) and then use your mobile to see which of your friends are in the neighbourhood. You could have an impromptu meet up at Starbucks and have the ability to send your friends an electronic coupon on their mobile, together with turn by turn directions and a map, to show them how to get there.

I’ve blogged previously about distressed inventory and Proximity Based Marketing. Imagine you go to the Cirque du Soleil and book via your ticket agency who is also a social networking site, such as EventFinder. A few hours before the show you get a TXT message offering you a deal if you can entice some other people to come along. You then use the location part of their application on your mobile to see where your friends are (as I do with Google Latitude) and send them a message with an electronic coupon to join you at the show, with a 40% discount.

A number of popular web portals, such as AA Maps, Wises, Google, allow you to rate / review businesses or locations on their portal. Wouldn’t it be good if you could access this data on your mobile in real time? But it would be even better if you can link a real time recommendation from a ‘friend’ to a location based service. Where’s a good place to get a coffee at Miami Beach? A friend replies with a name of a cafe, which automatically gets linked to their geocode (location coordinates) and as your mobile knows where you are, it can then request and display turn by turn directions and the map. The friend then adds, “If you can get there for 2PM I’ll meet you there.”

All the pieces are already in place and Beta sites are starting to pop up, offering these sorts of services. GeoSmart can provide the tools and data required for New Zealand and are already working with parties to support better maps and Location Based Service for New Zealand. Perhaps you should start thinking about how you can use location and consumer advocacy to drive forward your business.

If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course http://luigicappel.wordpress.com.

Thanks so much for your support:)

What’s That Smell?

When I was a lot younger than I am today I had a keen sense of smell, many of which I still remember and can relate back to earlier times when I smell them again. There was the smell of ozone in the air when it was about to rain, the smell of the steam as a tar sealed road near my home dried up after a rain. Certain food smells evoke memories. For example a few days ago I was in Tauranga for the jazz festival and smelled food cooking in a nearby restaurant, which smelled exactly the same as the pork my late grandmother used to broil in butter on a Dutch winters evening. If you speak Dutch, here’s a recipe which is very similar to how she used to do it. I can still remember many odors from my youth.

According to C. Russell Brumfield, author of the book Whiff! The Revolution of Scent Communication in the Information Age, we can more easily remember what we smell than what we hear. Apparently scent goes straight from the nose to the brains emotional centers whereas the other senses have to go through an interpretation process first. Of course the ability to smell has many purposes that date back to our primitive past where this sense would help protect us from danger, identify food and when a partner was in season, so to speak. Pheromones are of course well researched and companies who manufacture perfumes and fragrances, would consider it the holy grail to come up with a scent that genuinely causes people of the opposite sex to flock to their side.

When I first embarked on my sales management career, I read the mandatory books such as Tom Hopkins, How to Master the Art of Selling Anything. One of his key areas of expertise was selling real estate. A classic example of his teachings was to drop a little vanilla essence on the stove element, which would make the house smell like fresh coffee. I’ve often wondered why nobody does these things, its much more appealing than the ammonia smell of wet nappies.

I often talked about smellovision and there have been a number of attempts over the years to come up with scratch and sniff cards for TV shows or movies. A couple of years ago I visited the theme parks of Disneyworld in Orlando and in one of the theatre shows, they sprayed the scent of cookie dough and others into the audience. The aromas were authentic and while it was a novelty, it certainly was a taste of what will come in the future. I’m sure that before too long, digital theaters will be equipped with atomizers designed to send odors around the room. It may not happen often, but this is a great opportunity to enhance the theater experience and keep people going out to enjoy movies. Whether it is the scent of flowers in a romantic spring scene, or the metallic smell of blood in a horror or action movie, technology will ensure that we are immersed in the scene.

Many organizations have been considering the use of smell with their products. For example, Nokia has been experimenting with the ability to emit smells from their mobiles. At MIT’s List Visual Arts Centre, they used a technology to immerse the smell of sweat and fear into the white paint, which you can smell if you rub the painted surface.

Pepsi used a similar concept added to the surface of the bottles when they launched their new Black-Cherry Vanilla Soda.

My early prediction of Smellovision came true a few years ago with the launch of Smellavision (oh well it was pretty close). I’ll leave the final word to ScentAndrea who are doing it now. They have scents from burnt charcoal, to car paint to fresh coffee and donuts and they have an agent near you.

OK I lied, here is the final word, scent has such a great following that last year they held the SCENTworld conference and Expo in New York and there is another this year in Las Vegas.  So if you haven’t got a whiff of it yet, don’t hold your breath. You could hit the casinos and smell the money as well:)

While this blog is starting to get a good following, I would love to get more readers and encouraging me to keep writing. If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course http://luigicappel.wordpress.com.

Thanks so much for your support:)

On Twitter and Business

If you have or know teenagers, you will know that they spend a lot of time on the internet and particularly in the area of social networking. The most popular applications they use are Bebo, Facebook and MySpace. They aren’t just doing it on their PC’s at home, school or work, they are doing it on their mobiles. You might be surprised to know that in most countries in the developed world, including New Zealand, Facebook and Bebo represent close to half of all mobile data traffic. It is big and no one saw it coming.

Now people using social networking are no longer just Generation Y, it goes through all the generations, especially with professional social networking applications such as LinkedIn (go there and look for Luigi Cappel and you’ll find my account) where professional build a network where they can discuss business issues, look for staff or for jobs and generally communicate with like minded people around the world.

In the last few years the term Generation X has once again emerged. Generation X is generally agreed to as being the later group of Baby Boomers who challenged all the beliefs and philosophies of their elders. Instead of ‘we are doing this because it’s the way we always did it, or the way our parents did’ they tried new ways of doing everything.

These people grew up with the advent of the computer and are very comfortable with the Internet and various forms of Information and Communications Technology (ICT). Yet when marketers are trying to sell new product, they often focus on the Generation Y who perhaps traditionally were the ones who rushed to the record store to get the new albums and wanted to wear the latest fashions. Now of course fewer of them by CD’s when they can download or copy music, mostly without paying for it. In today’s economy they are also more likely to be tempted by sales and even if they didn’t need something, they might still buy it if the deal sounds good.

Back to Generation X. These people are now in the late 30’s and older. They probably have a home and a mortgage, are settled with a good income and despite the economy still have some spending power. So, here’s a thought from left field. There is a social network , Twitter, which has been quietly growing to a point now where there are an estimated 6 million users and around 55 million messages sent a month. It is said to be growing at a rate of up to 2,000 users a day.

So what is Twitter and why should I care. Twitter is a social network where you make friends, or in the case of Twitter, you ‘Follow’ people. You post messages, called tweets, from your internet connected PC or from your mobile phone’s browser. The messages are restricted to 140 characters including spaces, so you have to be very smart with your choice of words. It started with and its main focus was a social one, and the idea was that you entered what you were doing at the time, for example, ‘Having an ice cream at Milford Beach’. This is still a major use and many people only ‘Tweet’ amongst their real friends. I often see Tweets from friends saying things like “I’m heading down to Ponsonby for a coffee, anyone else in the neighbourhood?’

There are also social gatherings, for example a few weeks ago I attended the ‘Twestival’ in Auckland, raising funds for Charity Water, but that’s another story. Let’s keep it simple. Twitter is free, its easy to use and there are lots of applications you can get for free that allow you organise your Tweets. I use Tweetdeck and Twitbin depending on what I am doing at the time.

Twitter is now being used by lots of different organisations around the world. It is used by companies, manufacturers, news media and even government departments such as the Victoria Police. If you are able to come up with reasons why people would follow you, you have a free medium to make them aware of special deals and offers, events or anything else that you think they would be interested in.

Here are some examples. A bar could promote a Happy Hour Deal by posting a message. A coffee chain could send out electronic coupons as Twitter messages, offering a free muffin with coffee for the next hour. A women’s clothing chain could announce a special deal on end of season fashions, or announce the exciting next season fashions are in store. A bike shop could post special deals around a racing event, or perhaps send brief updates of the Tour de France. The messages are anything that you think your customers or prospects would find of interest and be happy to read.

The thing with Twitter is that it is not intrusive. It’s not like a text message that beeps and wakes you up in the night or embarrasses you in a meeting or at the theatre. You have to open up your browser on your phone, or a website on your PC to receive the ‘Tweets’. You can follow who you like and if you don’t want to see them anymore, you can stop ‘following’ them with ease.

So who is doing this already? Find out for yourself. If you go to www.twitter.com you will find an option called Find People. Click on this and then select the option box at the top called Find On Twitter. I had a go and here are some of the results I got. I entered ‘shoes’. I got back 91 results. There were generic shoe stores, golf shoes, wedding shoes, custom soles. But when I entered ‘Shoes NZ’ or Shoes New Zealand there were none. I can think of some iconic shoe retailers who could jump into this spot.

So who can you find promoting product on Twitter. Here are a few names that you can look up and follow to see what they are doing and remember it’s free! Vodafone and Telecom, Adidas, Starbucks, McDonalds Cincinnati are doing a great job of promoting new products and deals, Borders Books, The Car Shop, Pro Guitar Shop, Sisters Gift Shop, Alpine Ski Shop, just entering shop I found over 200 shops who are already using Twitter around the world. Now to be fair, only some of them are actively using Twitter for marketing, but that is normal and it is still a relatively new concept, but Twitter has gained 6 million users in less than 3 years, so you would have to say they are onto something and if you are smart, you could be one of the first to really make something of it.

If you look around, you will find retailers who have got it together. For example http://twitter.com/fluevog is a shoe shop. They offer electronic coupons, they have links to pages where they tell you in Twitter about a new product and provide a link to a web page where you can see them. They have only been using Twitter for a short time, only sent out 17 messages and they already have almost 500 followers!

Just as a footnote, even if you are a bricks and mortar retailer and don’t do much on the Internet, you might want to think again. For example if you have identified your target market, especially if you are a speciality retailer, then Twitter could open up a whole new area of opportunity for international sales. There must be loads of opportunities to export product, especially Kiwiana to individual customers.

Twitter is very viral in its approach and if you find people who like your kind of products, and you offer them information and deals in your Twitter messages, the word will get out and their followers can become yours.

One final, final word. Like anything, Twitter as a social network. Blogging environment requires consistency. People won’t follow you if you only send a couple of messages a week. They also don’t want to receive a hundred a day, you need to find a balance, but the main thing is that you provide something that they are pleased that they read.

So here’s a free service that you can get results from if you are smart, for an investment of 5-10 minutes a day. It can create a loyal following and grow a viral network for your business. One other thing I forgot to mention, there is also Twitpic http://twitpic.com/ , which allows you to post photos with your Tweets, again for free, so now you can even show followers pictures of your store, the friendly faces inside or your new products, oh and I did mention that this is all free didn’t I?

And if you want to follow me, you will find me at http://twitter.com/BluesBro.

While this blog is starting to get a good following, I would love to get more readers and encouraging me to keep writing. If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course http://luigicappel.wordpress.com.

Thanks so much for your support:)