How Many Versions of The Truth Does Your Company Have?
September 11, 2009
Years ago, while at one of my previous employers, I was part of a cross functional team of people from across the organization given the seemingly simple task of identifying our best customers. Seems like this should have been pretty easy right? Define what best means, run a report or two, discuss the findings and cross it off the “to-do” list. Oh how naive I was to believe it would be so smooth.
In reality it took months to determine that there were in fact numerous clusters of our best customers, yet no master list that everyone could agree upon. Marketing had its list, and so did sales, and accounting, and finance, and operations. Everyone was pulling different points of data from different systems, and thus getting radically different results. We had multiple versions of the truth. Sadly, we never did figure it out. A month into the project, the company was bought out and we were pretty much all downsized out within a couple months – this actually ended up being a great thing for me. Still, that experience has stuck with me, and taught me a valuable lesson – to be useful, data needs to present one version of the truth.
Had we been able to create this list quickly and accurately, we could have spent time trying to determine the best ways to serve our best customers. We could have examined ways to get new customers that were similar to our best customers, convert good customers into great ones, and improved the results of the organization. Instead we spent time and money simply trying to figure out whose list was the right list. What a waste!
As the “marketing guy” I am not the utmost authority at LUCRUM on business intelligence and data architecture. Still, having gone through that experience makes me genuinely appreciate the services we provide our customers. I have been in their shoes – seeking the truth, seemingly finding it, wanting to move forward, only to have everything come to a screeching halt because of inconsistent, incomplete information. It is a frustrating situation to be in, and I smile every time we solve such a problem for a Client.
If you are spending more time debating the truth as described by your data than you are determining what to actually do about it, you should talk to us. We can deliver one accurate, actionable, complete, and timely version of the truth for you – saving you time, money, and a whole lot of aggravation.
What is the ROI on Social Media?
June 5, 2009
I am often asked by people “What is the ROI on social media?” To that I typically respond that the question is they are asking is flawed, and thus impossible to intelligently answer. The paradigm is wrong. How can you measure the return prior to making the investment? The ROI is not on social media itself. The return comes from what you do with social media, or more specifically what problem are you trying to use it to solve. Did it help you solve a problem more quickly, more cost effectively, or in a new and better way?
“Social Media” is not the ends it is a means. The question is like asking what is the ROI on a telephone system? Well, it depends who you talk to, what you talk about, what you learn from the call and what you do about the things your conversations uncover? Sure you can concoct ways to measure this generally, but to be useful you have to measure ROI based on the specifics of what you do with social media, not on social media itself.
Well, what about web stats. Can’t I simply measure increases in traffic or number of friends and use that as a gauge? Maybe. If the problem you are trying to solve is getting people to visit your web site, then absolutely that matters. Yes, web stats are important. Hits and views and pagerank and friends and followers matter. They matter a lot. Popularity has its advantages. Still social media has power far beyond sheer volume.
Social media is not just about traffic and awareness, it is about closeness. It is about tightening the relationship you have with the people that are most important to you. Even if you choose to participate passively you can garner valuable insight just by listening. You don’t need 5,000 friends or 10,000 followers to be able to listen and learn from myriad conversations that are taking place all across the web. Conversations about you, your business, your competition, your industry, your suppliers, your city, your state, your elected officials, your biggest customers, your potential customers, strategic partners, etc… If you decide you want to communicate directly with people through social media, listening provides you with the ability to speak to them about what they are interested in as opposed to shouting at them about how awesome you are. This is the nature of good conversation and ultimately conversations are full of rich data and insight. Your ability to convert that data into clear and actionable information and to then make meaningful improvments to your product or service is paramount to your success and is the true measure of return on investment.
Suppose you are trying to drive innovation at your firm. Social media can play a huge role in doing this, but to measure the return, you need to have tangible information on your business. You could start by establishing a baseline for the number of truly successful & innovative ideas that your firm brought to market over the last 18 months. Track the number of ideas, where they came from, the time and resources it took to develop them, the time and resources it took to implement them, the speed and size of the adoption curve in the market, and the amount and type feedback your received from Clients. You now have a baseline, from which you can construct a hypothesis.
Next, develop a strategy based on what you know to predict how social media will help you drive innovation. Based on our data we believe that if we do x it will impact y by z. This strategy might include using social media to talk to your customers or your employees about what you need to do next. Using social media tools to ask people about the problems they encounter and how you might solve them. Listening to the discussions they have with and without you. Using social media to identify thought leaders on the web, listening to their opinions, and engaging them in discussions. Using social media to find out what your competition is planning to do. Using social media to talk to prospective customers about what they might want. Using social media to build trust, listen, and establish an ongoing channel for information. Then take what you learn and do something with it. As Goethe says ” to know and not to do is not to know.” So if people tell you your product is awful, use their feedback to improve your product – then measure the ROI. If people tell you that your employees are rude, train them to be more hospitable – then measure the ROI.
So how do you measure ROI on social media? ROI on most good investments is something that builds in value over time. Social media is no different. Implemented strategically, managed properly, and utilized fully social media can deliver great value to any organization. Commit to it. Give it time. Then look at how social media and the knowledge it yields has helped you create meaningful change. Measure the impact of that change. Measure the increases or decreases in your key performance indicators. Has social media helped you address key business problems? How? What was the change that resulted? What does the data teach us? If you listen, learn, and innovate based on the information you gather over time, the return on your investment is very likely to be lucrative.
Moderation
May 14, 2009
Yesterday, I was fortunate enough to have been chosen to moderate a panel discussion put on Technology First in Dayton, Ohio. The event was entitled “My Web 2.0 Story,” and featured a diverse and talented panel made up of the following professionals:
- Alan See – Berry Network
- Doug Ross – Western Southern
- Tony Blankemeyer – PicsMatch
- Joshua Smith – NCR
- Neil Arthur – Dayton Business Journal
The panel was great – Alan is a Marketer, Doug is an IT Guru, Tony a young entrepreneur, Joshua is an HR professional, and Neil a newspaper publisher. They provided an excellent mix of viewpoints, backgrounds, and skills. Each panel member contributed unique ideas to the conversation, and they worked surprisingly well with one another to articulate their views. I dropped in my two cents from time to time as well.
Common themes included transparency, service, and innovation. There was considerable discussion around the idea of using web 2.0 as a business tool for listening – both internally to the needs of employees and externally to customers, competitors, and influencers. Finally, just about everyone recommended that the best way to understand web 2.0 was, as Alan See put it “to get in the water and swim.”
Interestingly there was considerable discussion around the measurement of social media. I am fascinated by this concept, and view this as an emerging area of opportunity in the technology space. The ability to measure not just activity on the social web, but to then link it to internal metrics and measures is fascinating. I am currently exploring this space as part of my job here at LUCRUM, so it was good to hear so many questions about it. (I will be discussing this more in upcoming posts, but suffice it to say I am excited about it.)
Andy Hickey, with the Technology First, had the great idea of having the tables construct questions during the lunch portion of the meeting at the begining. I then called on the tables throughout the meeting to ask questions – sort of analog web 2.0 style. We bounced back and forth between my questions and those of the crowd – all of which were exceptional.
I made a number of new connections at the meeting and picked up some great ideas as well. My thanks to Andy, Ann, the panel, the crowd, and everyone who made the event so much fun.
If you were there, I would love to hear your thoughts on the event. What did you like? What didn’t you like? What was the best question / answer you heard? Who was your favorite panelist? Chicken or beef? Please share your comments…
Is Privacy an Anamoly? Collective Intelligence
December 1, 2008
The New York Times recently ran an excellent article by John Markoff about the changing concept of individual privacy in the digital age. The article discusses some of the implications associated with being increasingly connected. GPS enabled devices, online activity, social networks, credit card purchases, and other technologies can paint a vivid profile of an individual, which could be used by numerous sources for activites both good and bad.
How could such data be used for good? Suppose a company possessed information about where you are, what you are doing, and why; they could offer you real time incentives to purchase specific products. It would be analogous to virtual haggling to get consumers to behave a certain way. Need a pair of dress shoes? Are you at the mall? You wear a size 11 right? Well suppose a retailer within the mall knew you were there looking for a size 11 dress shoe, which they just so happen to have an abundance of in stock. They could text you a message stating that for the next 3 hours you could redeem the text on a new set of black loafers – size 11. Not only that, they also know that your spouse has a birthday coming up, and will offer you buy one get one 1/2 off to incent you to purchase more footwear. They know the correct size, and have the ability to make suggestions based on past purchases and the purchases of similar consumers.
Now suppose that this offer is passed up repeatedly by consumers within a period of time. Just like that, the deal could be modified until the desired consumer behavior occurs. Hyperefficient capitalism at its best.
How could such data be used for not so good? Well, that retailer or perhaps the credit card company, may note that you are buying special shoes designed for people with circulatory issues as well as special clothing to help improve circulation in extremities. They may also note that you are purchasing sugar free candy at the counter, and that you bought a sugar-free latte. Later, their video might capture footage of you sitting on a bench eating a cookie and drinking juice you bought in the store. Now suppose an insurance company is concerned about the cost of covering people with diabetes, and wanted to obtain data regarding consumers of specific items that those with diabetes might purchase. They could follow your activities thorough data purchased from the retailer and make judgements about your risk profile. This data could then be used to deny coverage to consumers. Hyperefficient capitalism at its worst.
Both of these scenarios are hypothetical in nature and admittedly oversimplified. One involves the use of data to help a consumer get something they desire. The other involves the use of similar data to deny a consumer from something they desire. Both involve the elimination of privacy as more and more data is collected about us – sometimes knowingly and sometimes not.
Still, it seems that people overall are not particularly concerned with the collection of personal data. The attitude toward the loss of privacy in exchange for convenience is overwhelmingly laissez faire. As Markoff ponders, in an age of Google, iphones, GPS, and Facebook, has privacy “become an anomaly?”
The question becomes what is your company doing with its data? For most, the reality of today is likely nothing, or at best very little. For all of the hype surrounding the potential use of data, much of this valuable information sits fallow within the servers, computers, and files of firms. The big ideas are out there, and now it is a question of who will capitalize on them – good, bad, or otherwise.
Is your company formally gathering, processing and utilizing data to influence consumer behavior? Could you? Are you adequately protecting the privacy of your Clients? Should you be? Are individuals within your firm potentially accessing sensitive information for their own interests? Is your competition doing a better job of mining the collective intelligence provided by data than you are?
The reality of today is that you have an amazing opportunity to impact the lives of those whom you serve through data. How you do so is largely up to you. For the record, I am a huge fan of size 10 Adidas Gazelles, and I would love a red pair. The next time I am near your store, text me and let me know if you have a great deal for me.
You’re Leaving a Digital Trail. What About Privacy? – NYTimes.com
LUCRUM Radio – Episode 11, Daniel Johnson Jr.
September 25, 2008
Daniel Johnson Jr. is one of the most prolific users of social media in the Cincinnati region. Daniel is the founder of New Media Cincinnati, an avid blogger, podcaster, Facebook member, Twitter user, and participant in numerous other web platforms.
Daniel is successfully utilizing social media to make human connections – using the web to amplify his traditional networking activities. In doing so, Daniel has built a loyal and large following of friends and colleagues both locally and nationally.
In this episode of LUCRUM radio, Daniel shares his thoughts on the value of social media. He discusses how he got started blogging, and why he has continued to stay engaged in the process of creating and participating in conversations on the web. Daniel also offers some great tips for managing time and creating content on the web, as well as his strategy for maintaining multiple sites and platforms. (He has multiple blogs and 5 Twitter accounts and keeps them all on track)
Thanks to Daniel for taking the time to share his thoughts with us. It was great fun and very enlightening.
Listen in on this episode of LUCRUM Radio…
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RYZing Trend
August 21, 2008
When I was in grade school, I used to spend a lot of time drawing pictures. I would draw my name in various font styles. I would draw airplanes ( usually F-16’s) streaking across the sky. I would draw bugs and trees, people and monsters, mountains and rivers… and shoes.
I remember being in 1st grade trying to draw a picture of my John McEnroe style NIke’s, sometimes altering the color of the swoosh – which we could only get in red and light blue back in those days. I later gravitated toward doodling Adidas logos in differing color schemes. Then came Air Jordan’s, which I must have drawn and redrawn 1,000 times – usually in Carolina blue and white. I remember imaging how great it would be if I could just make my own shoes. Surely they would have been sweet kicks. I would have made a million dollars, bought an island, opened a skate park, hung out with Dan Marino and had my own show with Alyssa Milano. Alas, no such luck…
However there may be hope for the doodling, daydreaming, youth of today…
NPR featured a great story this morning about Oregon based shoe manufacturer RYZ. Similar to the T-Shirt company Threadless, RYZ relies on “the crowd” to design its shoes. No big marketing department. No R&D. No long design cycles. No focus groups. No big advertising budget. Oh… and none of the overhead that comes along with those things.
Nope, instead of all that, the company relies on the community of visitors to its site to create its products and then to vote on which designs should be produced. The winning designer receives $1,000 and a 1% royalty based on sales – a fraction of what it would typically cost to design and produce a pair of shoes. Better still, the process – which would take up to 12 months in a traditional shoe company – is as short as 6 weeks.
RYZ is succeeding by using technology to involve consumers in the process – an important trend for all businesses to embrace. The company is successfully leveraging the internet to generate interest in its products, engage consumers in the the design process, and tap into the collective wisdom of the crowd to pick the right products to produce.
More and more businesses are utilizing community based design as a strategy for success. Because of the global reach of the web, innovation can now be driven in large part by the user community. Consumers want to be in control. They want to be engaged, and they want companies to listen to them. Technology makes this all possible.
As this trend begins to permeate into other segments of the economy, this will create new and exciting opportunites for collaboration between companies and clients. From what is on television, to what is in the grocery store, to which concerts come to your city, to what your kids get for Christmas. The world is more and more about the wants and needs of the consumer.
Do you think your business is just too complicated to embrace this model? Think again. In a global economy with seemingly infinite options, engaging the consumer is no longer an afterthougth. Rather it will become the central thought for business success.
How could you begin to tap into the collective wisdom of your clients and that of the world to transform your business?
Crowd Sourcing Turns Business On Its Head : NPR
My 9 secrets of successful leadership
August 12, 2008
I have lead many teams over the years and have had a good measure of success. Early on in life I have found what I consider is the key to leadership. According to Ayn Rand’s “The Virtue of Selfishness”, she asserts that being selfish is a real virtue (thus the fancy title)…that everyone acts in their own, best self interest. While her conclusions from there are suspect to me, I do see some value in what she is stating.
If I apply this principle to the problems I see with many leaders today, I would have to say that they are very short sighted. A leader must realize that it’s not about them. Really, please get over yourself. It’s about the team, it’s about the client and it’s about providing value. A position of leadership is as glorious as a position of a servant. All the glory should be focused on the team and not the leader. The leader accesses the landscape, navigates through the murky waters of business while identifying and removing obstacles. If you want to be selfish, then do so through your team’s development and success.
My 9 secrets of successful leadership. (Hint: Number 9 is the most important)
- 1. It’s not about me; understand from the beginning that it’s about the team, the client and the value that the team delivers to the client.
- 2. Maintain the highest degree of character; determine principles and do as you say.
- 3. Spark the team to gain momentum; be the visionary, create excitement, paint the picture of success.
- 4. Identify obstacles to progress; what’s real, what’s big, what’s critical.
- 5. Determine impact of obstacles on providing value; phase it in or phase it out then manage expectations.
- 6. Serve as the rudder to adjust course; the littlest part of the ship controls the direction of the ship and the leader is no different.
- 7. Eliminate obstacles; go over, under, around or through them, if necessary blow them up, either way they need to be removed.
- 8. Promote the team; appreciate and acknowledge contributions, direct praise back to the team, provide insulation from noise and politics, ensure avenues of growth and development for everyone.
- 9. Loop back through and start at point number 1
If you are not taking the arrows, then you are not leading! Get out there in front, take all the crap and give all the glory to the team!
~ Scott Felten
LUCRUM Radio: Episode 5, Craig Jolley Part 2
August 1, 2008
Listen as Craig Jolley, Web Marketing Manager with National City Mortgage, and I continue our discussion of emerging technology and how it will impact the future of business.
Craig has some great takes on how the “journey is as important as the destination” in terms of making technology that has an impact. He shares his thoughts on where technology has come from and where it is headed.
Thanks for Craig for taking time to speak with me, and for sharing his insights.
Enjoy!
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On Sales…
July 23, 2008
I recently attended two sales calls where disparaging remarks were made (in gest) about the Sales profession. I took these in stride – laughed with the group – but walked way questioning why, sometimes, my chosen profession gets such a bad wrap. Sales is an integral part of business. Without sales – businesses would cease to exist. Have you ever stopped to think – what would happen if no one in your company sold the product or service your company produces or represents? What would happen to your job?
In reality – everything gets sold and bought. It’s part of free enterprise – of which our country is based.
Stop to think – a “salesperson” sold the ink to the company that manufactured the pen you are writing with. Someone sold the material to the furniture manufacturer for the chair you are sitting in. Someone sold you the Starbucks coffee you are drinking this morning, or the flour to the baker for the danish you are eating. Let’s face it – the selling and purchasing of goods is an essential part of life.
To many people the sales person is either some schmuck in a poor suit, using tactics and techniques to get you to buy something you don’t need or would rather not purchase…..or the person in the expensive suit, driving an expensive car, whose main “trick” is manipulation.
The fact – is that no one likes to be sold…..me included.
I do, however like to purchase items/services that make mine and my family’s lives easier, safer, healthier, and more enjoyable.
Sales is not, and should not be a craft of deception and manipulation. Instead it should be the ability to question, listen, consult and determine if your product or service will benefit the client. One of the most important traits of a good sales person is the ability to *listen*. It is also the job of the salesperson to educate and advise the client – this includes educating the client on the product/service the salesperson represents – and being honest with the client if his/her product/service is not a good fit.
While the remarks made were in no way directed towards me personally, (in fact they were directed at some of my competitors), they did make me pause.
Here’s hoping the next sales call in which you participate, your sales person listens, educates and advises you correctly – whether that involves his/her product/service or not. If he/she does her job correctly, it will solve a problem, reduce some pain, and make your job/life easier. When that happens – and at the risk of sounding too cliché’ – everybody wins.
LUCRUM Radio, Episode 2: Joel Suggs
July 3, 2008
Christy Rollyson, one of our Account Executives recently wrote about her first experiences on the golf course and how golf relates to business. I asked PGA member Joel Suggs to join me and Christy in a discussion about conducting business on the golf course, how to approach the game as a novice, and how to ensure a lifetime of continued improvement.
Joel is Southern Ohio’s only PGA Master Teaching professional. Golf Range Magazine has rated Joel one of the Top 50 Instructors in America, US Kids Golf recognized Joel as one of america’s Top 50 Kids Instructors, and Golf Digest ranks Joel as one of the Top 5 instructors in Ohio. Joes teaches at the Meadow Links & Golf Academy and can be reached at JoelSuggsGolfSuccess.com.
Listen in and let us know what you think.
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