There’s something about the weather


Have you noticed anything about the weather lately? Do the topics of global warming or climate change ever pop up in conversation near you? Do you believe things are changing? Do you believe you can do anything about it? Do you care?

Inclement weather

Inclement weather

So here we are in 2014. If you watch the news there have been extremes happening every year and 2013 was no exception. Want some details? Check out this collection of stories from The Guardian.

There have been lots of international meetings such as the recent one in Warsaw, but what is happening?

Does it matter? Maybe you figure it won’t be a problem in your lifetime, but do you have children? Grandchildren? What will become of them if the sea level rises?

My home is in a once in a 100 years flood zone, low risk hopefully, but still a risk. Many of our roads have sea water spraying over them during king tides now, what will happen if sea levels rise?

A lot of people scoff at global warming, especially when we are experiencing extremes at both ends of the scale, hot and cold. There is no denying that storms are becoming more aggressive and it seems like every day there is a flood or storm somewhere. Let’s just look at right now, today:

Recent research suggests global temperatures could increase by 4 degrees by 2100. I won’t be around, but my grand children will be. If that happens and the sea levels rise, New Zealand will be interesting. We have already agreed that the people of Tuvalu can live here, but they are just one of the islands at risk.

But lets think about coastal mega-cities. We watch TV films depicting what life will be like, but we see them as Hollywood thrillers, not reality, yet we see news stories every day about erosion claiming coastal properties. What happens to cities that are on reclaimed land, or low lying cities. I’m not talking about my fatherland of the Netherlands, but how about Auckland, Sydney, Los Angeles, Manila or Mumbai?

Changes are happening, but some countries are still burning coal like there is no tomorrow (pun intended). We didn’t introduce emission testing in New Zealand, I was told because it was too expensive. We have a small population so can’t afford to do much, we are raising the height of some motorways which is good.

When I was in New Orleans last year, they were flat out raising the levees on the Mississippi, ironically at a time when the levels were so low that some of the river boats couldn’t make their usual trips. It’s mostly cleaned up now, but there is still plenty of evidence of the devastation caused by Sandy.

Of course it’s not just about super storms, or flood plans it’s about climate change. Weather patterns means changes to agriculture, movement of work forces, major disruptions to supply chains, problems with fresh water availability, I’m enjoying the longer summers, but I have cracks in fences and in the ground from last year that didn’t move back over winter.

This was just a bit of a ramble really, but climate change is something we need to think about now and we need to think about it starting in our own back yards. How are you going to be prepared, what will it mean for you? Are you ready for the next big storm? Are you ready for a tsunami? Do you know your evacuation route? Do you have an emergency plan? Do you think it will always happen to someone else or that it isn’t your responsibility?

Here’s a last thought from close to my home. In Australia this week, they are predicting potential temperatures of up to 50 degrees C. Last year Australia had the hottest weath, jobs, er in over 100 years. The thing is we are hearing these sorts of stories every year now. That means fires, that means lost lives, it means lost homes, jobs, businesses.

This is what happened in Australia at 30 degrees, imagine what 50 degrees could mean?

 

 

On SNAKK Media, Derek Handley and Kiwi Entrepreneur Success


The Snakk Media AGM, appropriately held in the Sir Paul Reeves Building of AUT in Auckland last night, appeared to be a classic event, with typical investors, asking typical questions. However, in my opinion, it wasn’t, it was a meeting in a room made up of some of the finest minds in marketing and leading edge mobile technology.

SNAKK AGM

SNAKK AGM

I was very proud to see entrepreneur, Derek Handley, on the stage surrounded by other Kiwi business leaders and visionaries including Tim Alpe, Max Flanigan and GM, Andrew Jacobs who I met for the first time last night.

I’m sure the media will cover the story, but here’s my take; on a tangent. I have always believed in Derek, his family and team from the day I met them, many years ago as they were preparing to found The Hyperfactory. They were the classic start up and I admired their passion and enjoyed their company, because they were driven and they were passionate about the same things I was, and still am. I love the company of positive, can do, will do people.

Snakk has allowed Kiwi investors to invest in a company that may never do a huge amount of business in New Zealand, which is really exciting, because it is not an opportunity that comes up often. As was pointed out, 2 years ago mobile digital advertising spend in New Zealand and the UK was 1% of the total spend. Today in New Zealand (where I have been trying to educate agencies on location based marketing and Augmented Reality, the percentage remains at 1% and in the UK is now 23%. In Australia they have the third fastest growth in the world (sic) of smartphone and tablet users, so it is appropriate for their head office to be in Sydney.

There was a lot of discussion about the threat to live TV with so many people now streaming to their mobiles and time shifting. Snakk didn’t mention all the technologies, but I am confident that they have a lot of tricks up their sleeves so that people like me who watch a reasonable amount of TV, while using my iPad or mobile, and MySky, will also be able to receive the messages I want. 

Here’s where I get excited. I want, and assume you will too, my TV. When it comes to advertising, I’m a marketer, but I don’t generally like watching ads. I guess the main reason is because most of them are not relevant to me, or at least not relevant to me at that time. I want them when I am open to buy.

So here are some of the things that I wanted to hear (and did either directly or between the lines):

  • Profile. I want ads that match my profile. Having them appear on my third screen (my mobile or tablet) in conjunction with what I am watching, based on my interests is something I might welcome. If there is an interaction between my device and the TV program, then it may not matter if I am watching live or time-shifted, depending on my:
  • Context. A lot of the future of mobile advertising comes down to an app on my device knowing things about me. What I am interested in, where I eat, drink, play, get entertained. What I am interested in at certain times of the day or day of the week. Market food to me at a time I am likely to be considering a meal. Then of course there is:
  • Location. If my mobile knows where I am, there is so much more you can do. If I like coffee, I’m walking downtown and there is a cafe that wants my business, let them send me an offer together with a reward of free WiFi.

On another tangent, the awesome podcast from Asif Khan and Rob Woodbridge of the Location Based Marketing Association: This Week In Location Based Marketing mentioned that where a geofence is used for guerilla based mobile marketing, they get a 12% click through rate. Just to explain, imagine you walk into Burger King and your mobile bleeps you a notification offering you a free upsize if you go to McDonalds up the road and buy a Big Mac combo.

This is where people started to get excited and concerned about privacy and I need to mention the MAC, pun intended. Effectively it is possible for apps to learn about you and your behavior without having your personal details. Effectively they track your mobile, not YOU. It’s not quite that simple and that is why in the early days of The Hyperfactory (I didn’t actually work there, I suppose you could have called me a Hyperfactory groupie) we started to set up a Mobile Marketing Association, with the view of self regulating to ensure the Government didn’t over regulate. The key was around allowing people to know what information was held about them and giving them the right to revoke access to it.

This blog is getting way too long, so I’ll finish with a few quick thoughts on Foursquare. I wish I had paid more attention to Derek having shared an office with Foursquare, I think I made a mental note to talk to him about that, but I didn’t. Maybe I still will.

The question was asked as to whether Foursquare was viable and the general answer from the panel was, not really. Derek was more retrospect and pointed out that the issue in New Zealand has always been one of scale. In New York City scale isn’t a problem, the population is over 8 million people. They can afford to have sales people in NYC and its easy to segment them.

In New Zealand there are actually a reasonable number of users, but Foursquare hasn’t really been interested in them because we are too small. I briefly became a Foursquare Ambassador and saw big opportunities for proximity based marketing. I saw a business model for myself with Foursquare, but they would not allow me (or anyone) to manage multiple businesses on behalf of customers. Each account had to be managed individually and for New Zealand that was a fatal flaw.

For those who think Foursquare is out, have a read of this story from Fast Company.

Did you go last night? What did you think? I think this is going to be a very successful global company and look forward to being involved somehow, if only only the sideline. I have watched and met many successful people over the years through my business network and Derek Handley is a Kiwi that remains underrated imho despite all he has achieved to date. In my opinion the shares are well undervalued right now. I’d recommend at least buying a few.

Footnote: I do not own any shares in Snakk Media. I do not work for Snakk Media in any capacity. I would seriously consider both though:)

Congratulations to Julie Landry, Vaughn Davis and the team for an excellent event.

Petrol Tax Increase and Solar Power Feed-in Tariffs


It’s election year next year and the National Government has announced petrol tax increases to start in July this year. Now I don’t have a problem in principle with user pays, although after the report by the Ministry of Transport earlier this year, it doesn’t look like things are going to improve, in fact we are likely to see mid day traffic congestion (don’t we already have that?) in Auckland, as well as the morning and evening commutes.

Long BayThere doesn’t seem to be a lot of encouragement for people to work from home although that would ease the pressure on congestion. Auckland Council seems dead set on high rise housing in the Auckland Unitary Plan, but at the same time they are building new homes in areas like Long Bay as quickly as they can, with no sign of increased road capacity for the 2500+ homes to be built. Don’t get me wrong, I’m not against high rise as long as it is done smartly, without taking sun away from existing properties and it is part of an environment which includes amenities that encourage people to work, live and play in a safe healthy environment.

Wouldn’t it be great if those homes all had solar panels on their roofs and were able to sell excess power back to the power companies. Even better if they could get interest free loans to cover the cost. This last long hot summer would have been able to generate massive amounts of power for water heating etc. It’s funny that when I built a minor dwelling next to my last home, I had to install an ugly water tank to capture rainwater and allow it to trickle into the stormwater system from the roof, which I could of course also use for the garden, but there were no options with regard to using renewable energy.

I was listening to the Peggy Smedley Show podcasts as I do each week and she recently interviewed Nick Bitterswyk CEO of Urban Green Energy, who mentioned that great things were happening in areas like solar power in Australia and New Zealand. He was right about Australia, which is going gangbusters with finance and feed-in tariffs, but clean and green New Zealand is not. We do not walk the talk when it comes to renewable energy as you can see on the web site at EECA.

At a recent home show I visited every exhibit where they were selling domestic solar power solutions and asked about the ability to sell surplus power back to power companies. They said that it was not happening, that the utility companies were not supportive or interested. They said that they and the Government have their own agendas when it comes to power generation.

Now we have a large reliance on hydro and geothermal power. Much of our power in the North Island comes from geothermal power sources in the Taupo region, such as Wairakei. I wonder what would happen if we had a major eruption and this source of power dried up. What would our back up plan be? What if we had another drought similar to the one we had this summer and the lakes were too low to provide sufficient energy. You can’t suddenly roll out a solar energy plan at the last minute.

I urge Kiwis to consider solar power and feed-in tariffs when thinking of who to vote for next year in our national elections. This is not a new topic, I have blogged about it several times. If a disaster happens, will the Government say they could not have foreseen this situation? I don’t think so, it is a choice. I’m hoping that at least the Green Party will think about this as part of their election manifesto. Actually where are the Greens? They do appear to have a policy on feed-in tariffs, but its pretty hard to find.

So if you were able to get an interest free loan to put solar panels on your home and the ability to use that power when you needed to and were able to sell power back to the grid for a rebate at fair market pricing, would you take advantage of it? I welcome your comments.

It’s Hard For Retailers To Embrace New Mobile Marketing Technology


I’ve been engaged in a conversation in a mobile marketing group LinkedIn discussion where people involved in solutions such as mobile coupons are complaining that retailers are intellectually lazy and not looking to embrace new technology.

I argued that most retailers focus on BAU (Business As Usual), working in their business employing strategies and technologies they have used for years, which they understand and can deal with. They do not spend anywhere near enough time working on their business, including strategies to embrace new technologies.

sold outMany retailers have been hurt by one-day deal companies, where they gave up 50% and more in GP in the hope that if they gave great service, they would win new loyal customers. Of course we now know that didn’t work and the only ones that made big money out of it were one-day deal companies. They didn’t have to invest in inventory or carry any risk to speak of.

I’ve presented at a number of conferences on the topic of mobile and location based marketing. What I found really sad was that of all the delegates, the number of retailers at these events could generally be counted on the fingers of one hand.

I’ve been looking at how I could help retailers, particularly in New Zealand and Australia with solutions available today in a cost effective way. I think I have come up with a solution, but its going to take me a fair amount of time and money to deliver.

I will start in the area of Travel and Tourism, largely because they are more focussed on customers who are actively looking for services and new experiences and the industry is used to investing to win new business. Their market is also tough and the traditional business services continue to largely support those who own the systems, ie reservation engines, directories, commissions to tour operators, rather than retailers themselves. These businesses are easier for me to access and easier to quantify direct ROI. Also the individual transactions often have a higher dollar value, so if I can demonstrably increase their cashflow and profit and share in the gain, I can recover my costs more quickly.

I was thinking about how hard it is to get retailers out of the shop to talk to them and from years of calling on owner operator retailers in the past, trying to talk to them in their own environment with customers in store, that’s all but impossible.

So I’m thinking retail readers, if there are any here, and would welcome your feedback on the best way to get in front of you and your peers. The problem is that most of them will never read this. The majority do not attend retail conferences, they don’t even participate in their own main-street organisations. They don’t even do something as simple as co-promote their neighbours. I remember years ago hearing Mark Blumsky (past retailer and Wellington Mayor) talk at the New Zealand Retailers Association conference about how he collaborated with his neighbours by giving away free coffee coupons at the next door cafe to people who bought shoes from him and the cafe gave discount coupons for shoes to their patrons. Leading retailers (because they were at the conference) all talked about it during the lunch and coffee breaks, but I don’t know if a single one of them ever emulated the exercise.

We have amazing free services such as Foursquare and people have probably used one of these apps to check into your store. They may even be your Foursquare Mayor, but you probably don’t even know what Foursquare is.

You need to embrace mobile technology and I want to help. But you’re probably not reading this, so you will have to wait until I have helped some other people first. If you are reading this, leave a comment, connect with me and others who want to see Australasian retailers thrive and grow in this exciting new world. Learn at your own pace, but please step outside of BAU and do something. One little step a day is 365 steps a year and that’s quite a lot.


Luigi Cappel:

Locating people via GPS has been a hobby horse for me for many years as you will know if you follow my blog. Perhaps crises like these will help us get funding to develop suitable solutions.

Originally posted on Imersia NZ:

The bushfires are raging in Australia, temperatures are breaking records daily and the traditional hottest months haven’t even arrived yet. Meanwhile Imersia has been developing a technology that can reduce stress, improve efficiencies, information flows and potentially save lives in future.

It seems ironic watching this BBC News clip after watching a story on BBC News a couple of nights ago claiming that global warming is slowing down when in Australia the record books are being broken almost daily. Temperature maps on TV are being upgraded with new extreme grades and fire warning signs on the road now include Catastrophic as a condition. Catastrophic

First of all we want to wish all the best to our Australian cousins across the ditch who are personally involved or have friends and family in areas affected by this year’s terrible bushfires. I can’t imagine what it must be like, other than horrific and very frightening. Whilst we…

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Blame the Technology and Australia


Continuing my search into what happened at Whitcoulls and Borders and  generally what’s going on with New Zealand retailers I am finding no surprises, which is a real worry. Two words come up a lot. Technology and Australia. I know a little of both. I live for technology and have trained many retailers over the years (including some who were already millionaires) and while the technology has changed, the principles haven’t. More on this to come.

Australia and New Zealand

As to Australia. In the 90′s many Australasian retailers who had New Zealand operated subsidiary chains based in New Zealand, decided to do away with local country management, local buyers etc.  and to save lots of money by treating their NZ shops as Australian branches. I guess they considered New Zealand as a slightly bigger Tasmania. Not huge, but worth having, especially if they didn’t put much effort into senior staffing  resources.

When performance decreased they blamed the economy, they said that NZ was just an over inflated state and it was always going to be that way, which was how they justified reducing local resources in the first place. The fact is while we may have a lot in common, we are not the same. We are made up of different cultures and history and have subtle differences in our lifestyles. Subtle enough that you can’t treat NZ stores the same as Australian stores and expect the same result.

Similar scenarios happened in many cases with the decades of American Globalisation. It’s funny really that America wanted to change Japan and the rest of Asia Pacific while Japan wanted to change the west. I well remember having discussions with senior management of Casio in Tokyo and Hamura about improving the software on their cash registers. One of the issues was that they hadn’t allowed for people pressing buttons in the wrong sequence. Have you ever been in a retail store when the ECR (Cash Register) is bleeping loud noises no matter what buttons are pushed and the stress it caused the cashier? Their initial response was “They must use the ECR in the right way or you should find better customers”. We ended up beta testing their software in NZ and Australia first and then getting Japan to tweak their software. That was one of the initiatives that helped us get 70% market share in the ECR market in NZ and helped Casio increase theirs around the world. But then of course the company I worked for was sold and I along with my boss and several other great people were made redundant despite the fact that we were doing really well, but because they thought we were earning too much. I’d love to know what their market share is in NZ now. I know it isn’t 70%. Anyway I’m going off on a tangent.

The big thing I noticed in the NZ stores was inventory management. They were carrying a lot of books that I wouldn’t think anyone would buy other than as a joke. I went back to Borders a week ago to jot some of the names down, but it looks like they went in the $1, $2, $5 sale and were gone. They had many dated books especially computing which must have been in store for several years, technical books on how to use software that almost no one has used in the last 5 years.

From what I’ve been told, someone automated the purchasing software to replace books that had sold, so for example if a particular book sold really well, say 5,000 copies, the system would replace with another 5,000 copies. Well there goes the profit from the first lot.

One of the things that makes New Zealand different is our ethnic communities. All over New Zealand, but particularly in Auckland we have clusters of ethnic communities; Chinese, Korean, South African, Indian, Pacific Islanders and more. Brands who fail to take that into consideration waste massive levels of stock by having the wrong product in the wrong locations, which then becomes shop soiled and potentially unsaleable.

Inventory needs to be managed locally by category managers who understand and are at the leading edge of their category and who understand their local market. They need to know weekly what is going on and understand who their customers are and what they are buying. Some books date more quickly than others and need to be moved on quickly, others will hold their value longer, but will still have a rapid half life.

In my previous blog about Whitcoulls and Borders I wrote about how they could follow the example of Amazon and know what their individual repeat customers were buying and therefore their interests and could recommend books to them. Amazon continue to prove that people in NZ will buy based on recommendations along the lines of “You bought these 3 books, other people who bought the same books also enjoyed the following titles”. Not only do we often buy them, but we also pay massive freight costs to get them here, at the same time as local book retailers are discounting stock that people aren’t buying. How smart is that?

One good way of dealing with this is using Business Analytics or Business Intelligence tools such as BIonaMAP, soon to be launched by New Zealand geospatial solution provider, GeoSmart. Fortunately for retail chains, this product will support both Australia and New Zealand, so users can have visibility over both countries.

BIonaMAP