10 Things I haven’t been quiet about

I’ve had a few comments suggesting I haven’t been blogging much lately. When it comes to this blog and The Future Diaries I haven’t been prolific lately, but I’ve been pretty active on my SoLoMo Consulting blog.

So, if you’ve missed me, here are 10 things I’ve been writing about lately:

1. Climate Change Refugees. This one on The Future Diaries where I was looking back from the future when all the expat Kiwis and anyone else that wanted a clean green, safe environment was hightailing it back to New Zealand. Interesting to see recent stats back up that notion with migration hitting a 9 year high with one of the biggest groups this year entering New Zealand was Kiwis who had been away for a long time. When fresh non-recycled water becomes a rare commodity, watch them all run to the bottom of the planet.
   

   Fresh drinking water that hasn’t been recycled

2. Usage Based Insurance. I’ve mostly called it PAYD or Pay As You Drive. This story today is about insurance companies using Fleet Management data to determine risk and charge premiums based on how safe commercial drivers, particularly freight companies drive. Makes sense doesn’t it. Fleet Management would also give insurance companies advanced and near real time geographic risk profiles.
3. Planning your Thanksgiving travel. The weekend is upon us and it seems ironic that we get together to be thankful, but the process makes it one of the most stressful weekends on the American calendar.
4. I’ve blogged a lot about your mobile knowing where you are and what you’re up to. Now your mobile is starting to know what building you’re in and which floor you are on and retailers want to know.
5. 19 car manufacturers have got together to ensure that you don’t stop buying their cars because they have embraced location based services. You want the features but you don’t want to give up your privacy. This is becoming a very hot topic.
6. Take away all the traffic lights and intersection controls and you end up with safer streets. Really? Well it seems to be working in some places.
7. Hacking Traffic Systems. I copped some flack from a traffic engineer over this, who said it is an old story and DOT’s are way to smart to risk being hacked. Phew, I am very relieved. No illegal green-waves here!
8. A smart car ITS corridor in Europe. It makes sense to try it somewhere. Driver-less cars should be tested in a safe environment first IMHO.
9. How big do you think Virgin Atlantic’s new Google Glass check-in service will be at your local airport? It may be a breeze, but I think there will be a lot of breeze between people who will use it.
10. There is always a story about someone who crashes their vehicle and says the GPS nav made me do it. Here’s one about a truck driver who drove into a public park in Milwaukee and blamed his nav.

So as you can see, my fingers haven’t been idle. Hopefully there’s at least one story here to attract your interest and maybe a comment.

Who Is Buying Your Personal Information and the Internet of Things?

Who owns your personal information? Who gives companies the right to collect data about you, your family, your friends, your activities, where you live, what you eat, drink, your health, how you travel? Somewhere along the line you probably did, because you didn’t read, or understand the fine print when you signed up for an application, an email newsletter, a loyalty card, or you aren’t worried about your privacy.

There has been much talk about the NSA, and big data monitoring systems in most countries around the world designed to protect us all from terrorism. There has been a lot of talk about how privacy is being eroded with social media. Many of us have the philosophy that if we don’t do anything wrong, we have nothing to hide. But who else is collecting, buying and selling personal information about you?

A recent story in The Futurist called ‘Connecting with our Connected World captured my attention, particularly when it outlined, from a Wall Street Journal article,  apparently fairly common knowledge, that many retail stores track personal shopping habits using loyalty cards and then resell the data to marketers. The Wall Street Journal article ‘confirmed’ that this same data is now being purchased by insurance companies for the purpose of setting premiums and investigating claims.

With the Internet of Things (IoT), we are now being encouraged to buy fridges with built in bar code readers and wireless connectivity, so that we can scan items we use and feed them to our shopping list. Many of us now have grocery applications, such as the Countdown app, which I have blogged about before in my SoLoMo Consulting blog.These apps monitor what you buy, suggest specials, recipes and even navigate you up and down the aisles of your nearest supermarket so you don’t have to backtrack for things you forgot.

As Richard Yonck of Intelligent Future LLC in Seattle points out in The Futurist, “the rate at which a household consumes sugar, salt, tobacco and alcohol would potentially be an open book.” What could your health insurer infer from that?

It names them

Combine the information from your mobile apps that know your location, where you have given permission (which is probably half of the apps you use today), your climate control, light controls (that suggest you might be home, or not), fitness apps, social media (freely searchable with tools like Facebook Graph like the example which names people who like Edam cheese,) the direction Google and Apple are heading, to be able to predict what services you may want next based on your context, profile, time and location, your life is an open book today.

The problem with all this big data that we are ‘willingly’ sharing, is that we really don’t know what we are agreeing to or what the data is being used for. I don’t believe we have adequate laws nationally or internationally to protect us from abuse of this data by any agency, business, government department, insurance company, utility company, finance company, the list is infinite.

According to a story in The Public Herald it’s pretty much a free for all. For example they say:

• Experion sells data updated weekly on new parents, new homeowners and other new event life triggers.
• Have a read of what information Epsilon sells in this PDF. Who reads Science Fiction novels? Ever wondered why your phone keeps ringing with charities asking for donations? They buy lists.
• Back to the Public Herald which says that Disney sells data including who bought what, the age and gender of the children, age and occupation of the people who purchased from them and more.

These are just scratching the surface. It isn’t necessarily all bad, the problem is that there doesn’t appear to be any authority tracking who shares what information with whom. The issues come down to informed consent. When you sign a form, enter a competition online with an attractive prize and you click, ‘yes, you can share my information with partners who may have items of interest to me’ perhaps because you think you might have a higher chance of winning the prize, you are losing control of your data.

There are laws designed to protect us from spam, but we often sign away rights without understanding the implications. Companies selling our data will argue that they have our approval to use and share our information. The flow of data will become so convoluted that it will become impossible to know who has what. Big Data companies will consolidate this data also with our ‘implied’ approval.

Governments need to be thinking about this now, if it is not already too late. Of course they arguably need the data as well in order to provide quality health, education and other services, including planning future smart cities. They need as much data as possible, although they don’t in many cases need the granular level down to individual people.

So as a footnote, think about all the cool Internet of Things you are buying over the next couple of years, like exercise devices, remote controlled security cameras and home access, climate control, sleep and snoring monitors, lighting, car telematics, electronic ticketing for public transport and much more, weigh up the cool with potential risk and consider that if legitimate organizations can access your data, so potentially can people wanting to commit crimes. It is already known that burglars steal product to order based on what they find on social media apps like Facebook (had a great weekend on the jet ski and now I’m off to Fiji for a couple of weeks and I’m putting the dogs in a kennel).

I’m Tired Of You Amex

At a quarter past 5 this morning, my phone started vibrating on my bedside cabinet. My wife stirred next to me, asking “What’s that?” At that time in the morning, in the middle of a REM state, your mind starts racing, your heart starts pumping and you’re thinking someone in your family is hurt, sick, in crisis.

Several times over the last year I have had battles with American Express charging me whopping late payment fees for my account. It transpires that we did automatic payments the day prior to the due date through the National Bank (now ANZ) but it typically took 3 or more days for the money to trickle through to Amex, even though our bank statements showed that we had made the payments on time.

We asked for explanations from the bank and from American Express and no one could explain. It just seemed to go into a black hole and of course no one really understands black holes yet, so they couldn’t explain where the money went, why it took so long, nor how a few days later it would appear, LATE, into our Amex account. Maybe it has something to do with cosmic string overnight cash rates, but if so, the interest certainly didn’t come to us to help pay with the late fee.

So we agreed with Amex that we would pay several days earlier than the due date (funny how they ping consumers when the average company takes 72 days to pay their 20th of the month accounts) and they put us on a text service where they would let us know when the account was due and when they received the payment.

Up until now those TXT messages came through at a reasonable hour, but this morning (maybe reduced fees for out of business hours SMS?) they decided to TXT me at 5:16 AM.

Well thanks Amex, I know you aren’t going to charge me a late fee. but I haven’t slept since you woke me up and have a long day ahead with important business meetings. I just want you to know that this is not cool or helpful, and I’m kinda annoyed. I’d ring you and try to wake you up, but I’m sure I’d end up talking to a nice person somewhere in the world where it is business hours.

Perhaps someone can look into your systems and think about putting in a few rules?

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.

Many 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.

Don’t go on a Road Trip without Foursquare

I’ve been writing a series of blogs about my recent road trip in the USA and the applications that helped and didn’t help me along the way. The last couple of blogs were about TripAdvisor which was a big help when it came to accommodation, but not great for much else.

I’ve been a big fan of Foursquare for a long time. You’ll find it mentioned in many of my blogs. One of the common threads is that people all over the world are ‘checking-in’ using the GPS on their mobile phones to all sorts of businesses, leaving tips and comments. There are recommendations of favourite food, or great service through to comments about lack of hygiene in the bathrooms.

The really frustrating thing is that the vast majority of businesses that get a mention on Foursquare have no idea what it is, or that they are involved. Foursquare is of course well-known by people in marketing roles, especially those involved in social media. Most of my friends in the information and communication technology industries use it. I’ve written a number of blogs trying to promote it to businesses in the hospitality and tourism industries because it is free and because tourists and travelers are using it. I suspect it mostly falls on deaf ears.

Many of the hotels I stayed at on my trip were on the outskirts of towns and somehow we managed to pretty much always arrive around 5-6PM tired and hungry. Where to find somewhere good to eat? Initially we went for walks or drives, but we really just wanted to relax. I quickly found that Foursquare was the best way to not only find out what was nearby, but also to find what places people recommend, or don’t.

You can search from a range of items based on proximity including Specials, Food, Coffee, Sights, Arts, Trending and more. You don’t just have the option of searching in proximity to where you are, but effectively you can pan the map for the bigger picture, or search by place-name for your next destination.

Baby Alligators

Using this we found some great restaurants and bars and also managed to confirm the location of an alligator hatchery in Louisiana that the navigation unit placed about a mile wrong in the middle of nowhere, which was pretty disconcerting when we were driving on the wrong side of the road (for us) of some very narrow country roads.

I do have to say that I only found a few specials using Foursquare, which reinforced my experience that hundreds of thousands of businesses are missing out on opportunities to pro-actively win more business.

I also kicked myself after spending 45 minutes waiting for a quesadilla at The Iron Kettle restaurant in Lynchburg, because if I had used Foursquare I would have read a comment left by a previous visitor saying: “Avoid. Slow service. You could walk to New York and get a three course meal in the time it takes for a simple burger here.” They were right too. To her credit, the waitress refused to charge us for our lunch, much to the disgust of the manageress.

Foursquare History

That brings me to another very cool feature of Foursquare and that is the ‘History’ function. If you log on to your Foursquare account and select history, you will find a chronological record of every location you checked into including the time, date and any photos or comments you made at the time. I had originally planned to start a travel diary using My Vacation on my iPad. I have to say that lasted about 3 days. We were just so busy doing and planning that we just didn’t feel like keeping a diary. Turns out we didn’t need to. That alone is a great reason to use Foursquare next time you are going on a trip. Check in, take photos, make comments and you have your travel diary.

Pay it forward and leave tips, good and bad about the locations you check in to so that others can benefit from your experience and learn from mine as well, that even if it is right there in front of you and looks OK, check for tips and comments other people have left. As I’ve said in previous blogs about TripAdvisor, if one person leaves a bad comment, take it with a big grain of salt, but when there are several, where there’s smoke, there could well be fire.

I love Foursquare and feel it is perhaps seen by many, such as those who still mock twitter, saying “I don’t care if you had a coffee!” as a waste of time. I say that it is a wonderful marketing tool, a great site and app for exploring new places that you may not otherwise have found and definitely ranks as my favourite global Points of Interest database.

Give it a go, whether you are travelling on holiday or just looking to try a new place to eat, have a coffee or be entertained. If you find it useful, share your own tips and comments, pay it forward.

I also welcome comments on my blog. What do you like or not like about Foursquare. What have I missed? There is of course much more including game mechanics, leaving comments on other people’s check-ins, mayorships, badges, friends and lists and the ability to add new locations on the fly and share them with the rest of the world. There are also many 3rd party apps usng the Foursquare API’s. What are your favourite features?

Apps to Aid Your Road Trip – TripAdvisor

If I had only one application to use on my road trip it would be tripadvisor. Having said that it wasn’t enough on my road trip although I spent more time using this app than any other. I put a lot of planning into the trip before hand and contacted US State Tourism organisations asking for information. Only Tennessee came back to me with a booklet including useful maps of the whole state and things to do, places to see, which was great. I filled it with post it flags.

Using Trip Advisor at one of the many hotels I stayed at last month

All tourist organisations have material like this book, but they don’t make it easy to access and they don’t appear to collaborate interstate. This is a major negative for a traveller on a road trip that regional tourist operators in New Zealand and Australia should also think about. I managed to get a similar book for Louisiana when I arrived in New Orleans, which looked like it was designed by the same company. I was lucky that the property we stayed in had one in the room. Otherwise you need to find an Information Centre, but of course these aere widely spread out and you need info to find one.

The biggest problem was that these books were segmented by town or county and not well linked to the main map. They were designed more for people who are looking at locating themselves in a town for a holiday and exploring from there. Also the maps for each state ended strictly on the state line, so if there was something worth enjoying on the other side, it wasn’t going to be on the map. This makes it really difficult to plan a multi state holiday. It would be far better for State and Regional Tourism Operators to work together to mutual benefit. I’m going to cross the line whether you make it easy for me or not.

So back to tripadvisor. If you install it on your mobile or iPad it will help you find Accommodation, Restaurants, Flights and Things To Do, sometimes. What I found was that they worked pretty well in cities, which was the same case with apps such as Foursquare and others, but when you go to rural USA, which was my plan for 3 weeks, the information tends to be more limited to accommodation and sparse when it comes to the many interesting attractions that people have put huge effort into but leave most people blissfuly unaware of them.

My main use for tripadvisor was accommodation and this was really interesting. When you travel through rural America there is a huge variety of accommodation options from very cheap to very expensive. The great thing about it is that it is full of reviews from people who have stayed at those properties. Reviews is something that scare the hell out of tourism industry publishers who charge people to list on their publications, websites, reservation engines etc and in New Zealand some property operators have complained about competitors giving them bad reviews, therefore saying the systems don’t work.

My message to them is that I trust my peers more than I trust advertising, especially those who have stayed at the properties. When you do advertise, make sure you are honest and deliver on your promise.  When you say you have high speed WiFi Access throughout the property, make sure you do because this could be the deciding factor as to why someone books and stays with you and the one negative if it doesn’t work, that they will tell the world about.

For the app user:

• Read many reviews. Look at the dates they were posted and read them carefully. Often there are unique stories where the person had unique needs or expectations that were not met. The more reviews you read, the more you will get the real big picture. Some people are unreasonable or feel that if they are doing a review they have to find fault. Do other people contradict their comments or are there common threads?
• Think about what your needs and time frames are. For example I got a cheap hotel for one night in New Orleans as we were arriving at 1AM and leaving again first thing in the morning. The review said it was clean and tidy but the air conditioning was noisy. They were right, but we knew we were going to be so tired after 30 hours of traveling that it wouldn’t keep us awake and the price and location was good.
• We ended up rating properties based on the things we were looking for and canceling out any that looked dodgy, for example several had complaints about bed bugs.
• We were able to ‘star’ the ones we thought were ok for a re-look.
• We also looked for situations where people had complained and the manager of the property came back and offered solutions and responses. In some cases there were managers who responded to every comment good and bad.
• The problem is that there are many options and when you are doing a road trip and trying to find attractions etc, you can easily waste hours of what should be relaxation time on your trip, but this is one of the costs of being a FIT.
• Tripadvisor offers many choices of reservation engines and price checks. I quickly found that once I had found a property I liked, a phone call to their front desk not only got me a cheaper price than all of the reservation sites, but also cooperation on a better room. Many properties will put you in a crappy room next to the laundry, the road or the busy swimming pool when you get a cheap online booking. If someone recommends a room number and their review sounds like what you are looking for, ask for that room.

Tips for the Tourist Operator:

• Your property is likely to end up in tripadvisor whether you submit it or not.
• People will talk about your property whether you like it or not. Most of them will be bona-fide guests who benefited from the application and are therefore sharing their experience.
• Put yourselves in their shoes. Your business is about hospitality and for your guest it is totally personal. Treat them as you would your family.
• When people make a comment about your business, good or bad, acknowledge and respond to it.
• If you sell rooms cheap on reservation engines don’t automatically give them the crappy room that you never sell if there are better rooms that are going to stay empty. I had a property in Auckland, Sebel Suites, do that to me early this year. They said they could only give me a room with a view of the carpark, because I had booked
  

  Sebel Marketing

  on a cheap promotion. The thing was that they didn’t sell many of the nice rooms overlooking the beautiful Auckland Viaduct Basin that night (I followed up the next morning), but if they had, it wouldn’t have been fair to the people who paid full price. So here’s my advice to them, which the Duty Manager didn’t want to hear. I live on the outskirts of Auckland. I have the choice to go home, but sometimes my wife and I like to go to a show, or out for a night, have a few drinks and not have to worry about driving home. We have stayed in many properties in Auckland. We have told all of our friends and tripadvisor which ones we liked and which ones we felt let us down. We will never again go to the Sebel Suites, we will go back to hotels like the Sky City Grand which has some great promotions on their site. As I said, it travel and tourism is personal.

• Make sure your business is on sites and apps like TripAdvisor.

Bottom line, I almost hated tripadvisor by the end of my holiday because we became almost fanatic about reading the reviews. We found the star ratings didn’t help much and whilst there was a function to save the ones we wanted to revisit, we couldn’t also flag the ones to avoid. We spent a huge amount of time on the site, BUT in every location we found exactly what we expected. We knew which rooms to avoid, and quickly learned to read between the lines.

For developers, this is an excellent site / application to learn from, not perfect but very good, even using your location on your mobile to help you find locations. For users, do give back. If you value crowd sourced feedback and make decisions based on it, you need to give back as well. If you are in New Zealand or Australia, talk to us at GeoSmart. We can help you with practical experience as both frequent travellers and users of apps and a mapping company that cares very strongly about the quality of our location-based data, maps, Points of Interest and the success of applications developed using it. We are local and keen to help. If you are here, but aiming for the world, we can help you get a start based on what we know about the industry and our experience as travelers. We want to help grow New Zealand international success stories.

Planning a road trip somewhere or know somene who is? The may be interested in this series of blogs, which they can find at https://luigicappel.wordpress.com Please feel free to forward this to anyone you think may benefit from it. I wish I had been given a lot of this advice before I left for my trip.

I will follow this up with some ideas as to what would have made tripadvisor a better app for the road tripper, which may be of interest to people looking at developing apps for travel and tourism and am happy to discuss my ideas and experience.

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.