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:)
Should we be so quick to dispense Tamiflu?
As the Swine Flu progresses to Level 5 on the 6 point WHO Pandemic scale, in New Zealand they have decided to sell Tamiflu from Pharmacies to anyone that goes in and shows symptoms, without having to see a doctor. I’m not sure if that is a good thing or not, because it is likely that the majority of people who buy and use it won’t have the virus.
The biggest concern being expressed about this is that mass use of vaccines can encourage viruses to mutate and evolve into strains which resist vaccines and antibiotics. It seems to me that as it travels around the world it will evolve anyway, but why give it a helping hand. I just hope that there isn’t a rush on it so that people who do need it can’t get it. Tonight’s TV News did say that there was only a small increase in demand for Tamiflu.
It’s funny watching the news on CNN and other international (read American) TV channels, who seem to almost forget about New Zealand, because early on we were one of the countries that had early exposure in fairly large numbers. Even in the last couple of days, more people have gone into quarantine, now around 500, and we are now in a situation where we actually know people who are in quarantine. It’s no longer 6 points removed.
Mexico is obviously the place that is mostly in the news, and lets hope that their plans for a 5 day national shut down will help contain things until people are no longer contagious.
According to the Google Swine Flu map, the density of infection in the countries where they have confirmed cases, is growing fast. Spain is one of the biggest outside of the US and Mexico for obvious reasons. Switzerland and The Netherlands are the latest countries to get hit.
I was watching the news last night and they were saying that they were lucky that it is spring because viruses don’t spread as much when it is warm, but of course down here in New Zealand it is cooling down and we are heading into the flu season, so it could be potentially worse here.
Please participate in my poll. Do you know anyone who has been quarantined? It would be really interesting to see how this progresses. The feeling of it won’t happen to me may dissapear as we get to a point where we either know someone or are only 1 place removed.
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:)
The Swine Flu isn’t going away any time soon
So the story continues. It seems a long time ago (Monday of this week!) when I asked the question, Is the Swine Flu going to be a pandemic? Well on level 4 indicating a significant increased risk of a pandemic, a global outbreak of a serious disease. It isn’t yet a Pandemic, but it doesn’t show any signs of abating. As it appears that secondary transmission of human to human may now be occurring, a Reuters story says that they may soon raise to Level 5.
Another Reuters story also mentions that many countries have imposed a ban on US pork imports, this could lead to similar bans on pork exports from all countries where Swine Flu has been confirmed. This is despite WHO announcing that you can not catch A/N1H1 Swine Flu from eating pork, and in fact there is no evidence of pigs in Mexico or the USA being sick. There is conjecture that they may have captured the virus from Asian birds, possibly imported into Mexico, but the mystery is if the pigs aren’t sick, how is it that humans have caught it from them. It’s no wonder that conspiracy theories abound, while we have no real answers. A team of WHO specialists are now in Mexico trying to unravel this mystery.
On Tuesday I commented that Swine Flu is a bit close to home as New Zealand is one of the early significant areas where Swine Flu was strongly suspected to exist. This was confirmed yesterday and 360 odd passengers on Air New Zealand Flight 1 from Los Angeles were asked to quarantine themselves.
On Wednesday I blogged about how to get Swine Flu and within 24 hours most large corporates had emailed their staff with instructions about personal hygiene and how to minimise the risk of infection. Whether people are concerned or not is difficult to gauge and I suspect a lot of people are still thinking, this wil never happen to me. Despite this 2 hours ago the number of confirmed infected was increased to 14 and the suspect list includes an additional 56 people according to New Zealand’s TV3 News.
According to the Google Swine Flu Map the Kiwi’s affected are spread from Auckland in the North Island to Otago deep into the South Island. They of course had to use confined public transport to get there, so it is likely they may have spread the virus further.
One question I have is why have people died in Mexico but not in other countries. It also seems that the symptoms have been worse for people in Mexico. One theory is that it is attenuating as it spreads from one person to the other and weakening in the process. This could explain why the people in Mexico, including expats, have suffered far more than people in other countries, although this ios contraindicated by the fact that most if not all of those in New Zealand contracted the virus whilst personally in Mexico. There have been a very small number of people suspected to have Swine Flu who had not been to Mexico, but had been on flights together with people who have been confirmed as having Swine Flu. I have yet to hear of anyone who has been confirmed with the virus who were noton a flight with people who had been to Mexico or hadn’t been to Mexico themselves.
There are still some unsolved mysteries and it is the secondary nature of the spread of this virus that holds the greatest risk of a pandemic.
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:)
And please do leave a comment!
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