Over the last couple of years I have learned about the strength that comes from having a network of people who care for each other, like those who still send me text messages encouraging me to play guitar. They have been so successful that I have written my second cancer related song and have been playing every day, but because I haven’t had the energy to play for the last year, even an average of 10 minutes every day has given me a bit of tendonitis and with a jam session coming up in a few weeks that I am really looking forward to, I am having to give it a rest for a few days.
I have a Kindle, the latest model WiFi 4GB which I bought from Amazon, cheaper than I could buy it locally, which sort of goes to the story I posted this morning about retailers who struggle to cope with change in the way people buy products, i.e. competing with online sales. My wife and I both have iPads, but for reading on long trips or after a day on the computer, I really like the Paperwhite because it isn’t back-lit, so doesn’t cause eye strain.
I am also a happy customer of Auckland Libraries, mostly downloading audio books which I listen to while driving or doing chores like mowing the lawn.
My wife decided after seeing myself and one of our children getting great value from our Kindles, that she would like one too. With the Auckland libraries also having an excellent collection of digital eBooks, I thought this would be a great opportunity for us to get real value, so I went to Dick Smith Electronics in downtown Auckland to see if it was worth buying locally.
Just inside the door is a Point of Sale unit with a Kindle Paperwhite, same model I own and an old model original Kindle Fire (which I understand was superseded quite a long time ago). I looked at the feature display sheet and it says that Kindles including the Paperwhite will allow you to read public library books. Now that isn’t strictly wrong because I know someone who reads them, but they are from Australian libraries. I wanted to confirm whether I could download eBooks from the Auckland libraries onto a Paperwhite. The salesman couldn’t tell me, he was going to check for me, but couldn’t confirm anything and ended up with another client while I went on my iPad to look it up. I asked him to check it out for me. Obviously it was confusing because their POS clearly said I could read library books. When he couldn’t give me an answer, I asked who could. He said that the merchandisers were the people who dealt with the POS so I asked if I could talk to them. That wasn’t possible, so I asked who the distributor was that they worked for. He said they are actually Dick Smith Electronics staff!
Here’s what I found on the Auckland Libraries website. So, given that I wanted to buy a Kindle for my wife, I asked the sales person, when he eventually returned to me to let me see a Kindle Fire to find out whether it would be better on the eye that the iPad, because I didn’t want to buy the Paperwhite at $179 if it couldn’t download the library eBooks.
The sales person said he was sorry, but he couldn’t show me a Kindle Fire because they didn’t have one out of the box; and he couldn’t open a new one because then it wouldn’t be new. I told him in that case he had lost a sale because I wasn’t going to buy one if I couldn’t try it out and see if it was fit for purpose. It’s hard to be a customer at Dick Smith Electronics. I left the store without a purchase. I tweeted that they had lost a sale.
In hindsight I could have bought one because under the Sale of Goods Act, if it wasn’t fit for the purpose I had described to the sales person, I could have brought it back for a full refund. He could have even suggested that, but he didn’t. I also live about 12km from the store and it would be a real hassle if I had to take it back. I hate to think what the customer service level would be for a return after that experience. So my wife still doesn’t have a Kindle.
I subsequently got a Twitter message from Dick Smith Customer Service saying that someone would give me a ring within 2 working days. As you can see, that was just over 2 weeks ago. I haven’t had a call or a message (in case I missed one) since.
So I’m probably going to buy another Paper-white Kindle from Amazon for US119 rather than NZ$179 or $199 depending on where you look, locally from Dick Smith and accept that we can’t download library books. We can buy books on one Kindle and share them with the other and Amazon also have subscription services which are pretty cool. I guess ultimately Dick Smith isn’t local anyway, they are Australian owned, I think, well listed anyway.
My real concern is, if you live in Auckland and you bought a Kindle Paperwhite because you read the POS which says you can read library books, you will find yourself disappointed. I have pointed it out to Dick Smith via Twitter, and the photo above saying you can, was taken in their store in downtown Auckland yesterday, so their in-store marketing hasn’t changed since I first brought it too their attention more than 2 weeks ago.
I did eventually talk to a librarian who confirmed that you cannot download and read library books from any Auckland libraries on a Kindle Paperwhite. It appears the reason you can ‘on some Kindle Fire’s’ is in fact because they are Android Tablets.
So what do you think. Does it help clarify why I sometimes buy things offshore instead of in local stores? Sometimes it’s actually easier.
I was sad to read a story in my local newspaper, North Shore Times about a Glenfield hardware store McPherson’s Hammer Hardware, which is going to close in a couple of months. Firstly I as going to share a link with you, but the aforementioned newspaper has a system that requires you sign up to their digital version if you want to share a story, and likewise, probably if you want to read from a link. I do not provide links for my readers to sites like that.
I used to live in Glenfield and visit this story and I remember asking them how they stay in business. The owner, John MacPherson told me it was about community, having those little things that the big stores make you buy in bulk, advice on how to do things, friendly service, remembering people’s names, the little things that come with community retail.
The newspaper story goes on to quote that he has probably hasn’t been making a profit for 6-7 years, but hung in there. He points out that the DIY super-stores and Internet have changed the game and that even the major stores/chains suffer from sluggish consumer spending.
He’s not wrong, but the key word is change. I love the world of retail, I used to have the privilege go to the NRF in New York and FMI Connect in Chicago and bring back ideas to write about in retail magazines, share with my resellers and speak about at conferences around the world. This was important because many of our retailers couldn’t afford to go to those conferences, but learning new ideas, particularly from people who have proven experience, is how business evolves.
It doesn’t really matter what business you are in, you have to evolve to meet the demands and opportunities presented as society evolves. As John said in the North Shore Times article, “In Glenfield we had a haberdashery (incorrectly spelled in the newspaper, I had to look it up to find out what it was), greengrocer, butcher, it was a great mix”. It went on to say they were boom times.
So here’s the thing, it is still boom times for those businesses that want to keep up with the times. The problem that retailers used to tell me was that they didn’t have time to keep up with the times. They were too busy starting early in the morning cleaning the shop, doing stock takes, placing and chasing orders, talking to merchandising reps, ringing customers to say their widget had arrived, preparing the float and a myriad of other things. In hindsight, those retailers, from John McPherson’s Hammer Hardware in Glenfield, through to Borders and other retailers should have found the time to look at how some businesses were thriving, while others weren’t.
When they went on their holidays, they could have combined them with visits to businesses and conferences that showed how some retailers were managing in the new world of mobile and tablet, of connected customers. They could have seen new products that aren’t available in NZ, they could have combined bricks and mortar with online themselves. I appreciate how hard it is to run a business, I have run several businesses over the years and worked in companies from small to multinational and the common thread is that those who looked ahead continue to do well, those who looked to their original training and just repeated what they had learned, which may have been best practice in the 70’s or whenever, will have done well for a while, but aren’t there any more.
People still want to have experiential retail, they still want to see and touch, ask questions, they even want to see people like John McPherson stick around and stay in business, but they can’t advise him on what to do to stay in business and get back into the black.It’s tough, but the time to get ahead in business is when you are ahead and you have the resources to go and do some training, bring in a consultant, go attend a conference. I used to speak regularly at retail conferences in New Zealand and what was really frustrating was that the people attending were those that needed it the least, because they were looking ahead and staying up with the times. The ones that needed it the most didn’t go, probably didn’t read the specialist trade magazines, ask their suppliers for knowledge or go to the trade shows. They were too busy. Now they are either out of business or heading out. Is it too late, not necessarily, but it will be much harder, even to change the mindset. When things get tough, many go even farther back into doing what they used to do, even doing it harder. That’s not the answer.
Back when business was booming for people like John McPherson, Bob Dylan was singing The Times They are a Changing. He was so right. “You better start swimming or you’ll sink like a stone.” Listen to the lyrics, they are prophetic. But this is no different to 200 year ago. The times are always changing.
We are still buying all the things we used to buy and more. Some business models have been and gone, but others are growing in a big way. We are still a DIY country, that’s why we have the mega stores, but there is still room for specialists, room to be a community and have community involvement in business, there are so many opportunities. Whether it is classes at the back of the store teaching people how to do things, or a new section selling 3D printers and teaching kids how to make things, using location based mobile services to find people who are looking for what you have, supplementing your business by selling items you can’t afford to stock, online.
I’ll finish with a question. Why is it that I can buy a set of my favorite guitar strings online from a retailer in the USA, 75% cheaper than the same product in New Zealand? The local retailer will say that’s because the guy in the USA doesn’t have a shop to run. But the fact is they do, Elderly Instruments has a bricks and mortar store in Lansing, Michigan, they have bands playing in it, they have workshops for musicians, they just supplement that with online sales. I recently contacted them because I couldn’t get help from local retailers to fix a broken part on my Dobro. I had personal emails, just the same service that John provides in his hardware store and I’ve managed to repair it myself with the parts they sold me. Doing business with them was so easy. If I lived in Michigan, I would go and by from their store and I’d even be prepared to pay a little more, heck I’d buy more anyway just because I like doing business with them and they like what they do and know what they are talking about.
So I’ll finish on a saying that is one that has killed many a good retail business. “If it ain’t broke, don’t fix it.” Have a look around you right now and ask yourself how many of the things you take for granted would be there if everyone had said that back in 1970, let alone 1870?
Last week I had the privilege of attending a training program run by Martin Fenwick, author of The Change Factor: Insights For Leaders of Change. As a subscriber of my blogs including SoLoMo Consulting and The Future Diaries, you will know that change has been a major motivating factor in my life as a futurist, right back to the promise made to me and my contemporaries, that my problem in the future would be what to do with my spare time, as automation took care of the majority of our human workloads.
I am passionate about change and the need for traditional businesses to embrace and create change, less it be foisted on them by a competing business model. Some examples of my thoughts on the book industry that you may have previously read are here.
Anyway, I am also passionate about languages and particularly the English language, whether it is new TXT language which can have me ROFLMAO, grokking people or in this case we were wondering if there was a word gruntled, being the opposite of dis-gruntled. One of my colleagues checked on her iPhone and sure enough, there is such a word and it is in all the dictionaries.
I was interested to read on Merriam-Webster that it was first known to be used in 1926. I thought it would have gone back way farther. Never mind. The conversation went on to influence and we thought it would be interesting if we could get other people using it. I, typically suggested that I would see if I could spread it’s use with a #hashtag, which I have duly started doing. So if you look for #gruntled it is likely to stem back to a tweet or a Facebook post from me, which was motivated by the training session with Martin Fenwick.
Why bother? Why do people do flash-mobs or climb mountains? Because it can be fun and interesting. One of the things that really interests me and that I frequently research is fads and trends. How do they start? How are people influenced? What makes some things work and others not? How can you get people to do things that are good for the community (such as pay attention to recommendations about real time traffic and helping avoid congestion).
So here’s your task. Leave a comment or post a tweet with the hashtag #gruntled. RT or share this post and lets see if we can’t get people using the word. It could be a great conversation starter for you. I’m feeling gruntled today, how about you? If you think it’s a cool idea, tell him so on Twitter. Let him know you’re pretty gruntled about it.
I’m just finishing the book Socialized by Mark Fidelman. It is one of the better books I have read of late about harnessing social media. Many of these books date very quickly, but the information in this 2012 book is still very relevant and I recommend you read a copy.
Towards the end Mark relates the story of a girl who suffers from Congenital Insensitivity to Pain, aka CIPA. It was an analogy to businesses who are heading down the gurgler at a rate of knots and don’t even realize it. Those of you who read my blogs will know about how frustrated I was to see Borders self implode, when they didn’t need to. As I mentioned earlier this week, many businesses are being hurt but not realizing it, or not knowing what to do about it. It’s that frog in the pot of simmering water. We all know the story, but many of us are sitting in that pot, enjoying the warmth and then getting severely cooked.
In my experience, it is people who aren’t institutionalized in your business who you need to talk to. If it’s not consultants like myself, at least talk to your customers, the ones you have left. Ask them why they come to your business. What is it that drew them in and how can you give them what they want and stay profitable?. I had loads of answers for the book industry, but they ‘knew what they were doing”. They focused on best sellers, general merchandise goodies and even fluffy toys. The questions you need to ask have to be qualitative, don’t give them choices you think they should answer, have conversations with them. Or get out quick and sell your business to someone while it still has some value. I still maintain if I had been on the management team or board of Borders in NZ, they wouldn’t have floundered, they would have risen like a phoenix out of the ashes of the past and their stores would be full of people, in many cases still buying paper.
Do does your business have CIPA? Are your margins declining, is your stock-turn going down? Are people buying similar products online instead of from you? Are your customers slowly churning to other sources or evolutions of the goods and services you offer? What have you done to future proof your business? As I said in my other blog earlier this week, people are reading more, listening to more music and taking more photos daily than ever before.
Got any questions? Feel free to leave them as comments and maybe we can have a discussion about this.
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?
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).
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.
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:)