Wednesday, April 15, 2015

Trust has greatest value where choice is highest and price sensitivity lowest

Trust - the output of the 10 Principles of Open Business - is essential for success in today's open economy.
But we should note that its value varies across market segments. Trust will attract the right staff, keep the organisation honest and true to its beliefs and inspire people to perform at their best. But its impact on consumer action varies depending on choice/ease of switching and price sensitivity.
This may explain why even when we lose trust in something we don't always stop using it.
The graph included here illustrates my plotting of some market segments and institutions which shows us which should put the greatest efforts into building trust for the purpose of impacting consumer behaviour.

Where it's very difficult to switch (ie your daily commute by train) trust has some value but building it won't encourage more commuters to use a rail company. They just may feel a little better about the next price hike, a little safer while on board.
While there is no option when it comes to your police service you could argue there is little requirement to build trust to change user behaviour (though trusting the service does of course encourage people to be more open with it, even if we can't go and share our intel with an alternative organisation).
The key area for trust as an investment in behavioural change seems to be where both the cost of both switching and the price sensitivity is low (the top right quadrant).
Here we find the banks, the media, transport. Most retail vendors would fall here. Topically - politically parties appear a standout. Trust should be everything to them.
My positioning of supermarkets on this grid may explain why - despite the repeated crises of trust in our supermarket giants (even Open Business advocates Tesco) - there hasn't been a mass exodus of customers. Tesco's market share is down less than 2% year on year according to Kantar (Oct 2014). But that's based on spend, not numbers of customers. Customers are less likely to have left Tesco for Aldi or Lidl over issues of trust than they are over issues of price. They have added an Aldi run to their routine Tesco buys, not abandoned it completely.
These positions aren't fixed. IF through Open Business or other investment in building trust (and blockchain is being advocated as one such tool by The 10 Principles Co-author Jamie Burke) organisations can make trust a competitive advantage they can become more resistant to start-ups and new-comers who do not have a trust bank already established.

Tuesday, January 20, 2015

Open Access research journal launches today

The publisher of The 10 Principles of Open Business,  Palgrave-Macmillan, has launched its open access, online-only research journal today. I'm pleased to say I'm among those on the Editorial Board,

Here's the official blurb and links:

Open Access journal Palgrave Communications publishes first papers.

High quality, multidisciplinary journal across the humanities and social sciences launches today.

Palgrave Communications, the new high quality open access (OA) online-only,
multidisciplinary and interdisciplinary journal will publish its first articles today.
The papers, which are all free to access, span a wide range of disciplines including international studies, political science, theatre and performance studies, and operational research.
The first edition of the journal includes a commentary by Dr W. James Jacob, Institute for International Studies in Education, University of Pittsburgh, on interdisciplinary research trends in higher education. This is the first of several articles that will discuss interdisciplinary research, which is much needed to help tackle global challenges such as migration and water scarcity but can be
difficult within the traditional culture of academia.
Iain Hrynaszkiewicz, Head of Data and HSS Publishing, Open Research at Nature Publishing Group/Palgrave Macmillan said: “Palgrave Communications was launched in response to demand from academics in the humanities and social sciences and business for a high quality journal that operates a fully open access publishing model, and which promotes interdisciplinary research.
We believe that this first batch of papers reflects these goals excellently.”
Palgrave Communications was launched after a global survey of academics in the humanities and social sciences, where 82% said that they would publish OA if the best or most appropriate journal were OA. 68% thought that their specific area of interest would benefit from journals that publish peer-reviewed OA.
Dr Michele Acuto, Senior Lecturer in Global Networks & Diplomacy, Science, Technology, Engineering and Public Policy at University College London said: “As well as being a multi-disciplinary journal, Palgrave Communications is seeking to offer a space for more in-depth and professionalized interdisciplinarity to flourish. The journal offers a venue for different scholarly arenas to connect.
“Developing truly collaborative research takes time and dialogue, but is something we hope Palgrave Communications can help with.”
Palgrave Communications offers immediate, free online dissemination of all published articles via a CC BY license1 and is committed to speedy peer review and publication.
The journal is led by a large international, cross-disciplinary Editorial Board of leading researchers.
The full list of editorial board members can be found here. The in-house Managing Editor, who oversees the editorial process, is Gino D’Oca.
Palgrave Communications offers authors an enhanced digital publishing experience with industryleading features such as article-level metrics, including data from Altmetric, and enhanced article layout and navigation. Palgrave Communications is the first Palgrave Macmillan title to launch on a new publishing platform created by Palgrave Macmillan’s sister company Nature Publishing Group. There are no restrictions on word limits: all articles that conform to the required editorial standards of the journal will be published regardless of length.


Friday, December 19, 2014

Enterprise Collaboration: Where the answers find you

My good buddy Jack Crawford talks about enterprise collaboration - as a tool of improving both customer experience and business process.
"In email and voice you have to know who you want to talk to, in enterprise collaboration who you need to talk to becomes made aware to you."
Nicely put.


Thursday, December 11, 2014

2015: The Year of Micro Private Networks - and a new threat to mass comms

Snapchat has just been valued at $12bn. PRISM and other forms of state surveillance of our social communications are driving a retreat to privacy.

The omnipresence of brands in our social streams is pushing some folk to do the equivalent of hitting the mute button when the ads are on TV – they are looking for ways NOT to be interrupted - not to be targeted or otherwise 'engaged' by ham-fisted, dads-dancing-at-weddings brands.

This preference for the private, for the small social groups of communication – six-person social networks, sms-based one-to-few interactions, all of these is piling on the agony for mass communication.

How does an advertiser slap banner ads into our private conversations – by their very nature we want to switch off anything that might reveal our preferences (key word matching of ad to content of conversation, in the style of G-mail or twitter ads, for example, even this will be unwanted by those headed for the small-private-network future).

It’s a fear-led place. It’s not something I want to see. But (and I say this is an As-Well rather than Instead Of scenario, it may be the dawning of a cultural lock-down. Sharing for some folk is less caring, more scaring.

Facebook active use is actually down at the end of this year (by 0.5% over all granted, though much more pronounced among younger segments) The way people are using it is changing too – much more voyeurism, much less sharing of their own input (images, video etc).

And the problem for mass comms?  How to get your message into those private conversations when they don’t want you to  know anything about them.
Relationship marketing remains the key. Create an easy and ‘right’ experience and the result isn’t a banner ad – it’s a heart won and a mind  made up.  We may want to switch off anything that would give an advertiser a clue when we go micro-social, but try as we might we won’t switch our beliefs off when we make our private connections.

You’ll recommend based on your experience just as heartily in private (perhaps more so) than you would have done in public.

This of course means the building of advocacy is even more important. It’s pretty much all that can work in this emerging micro-social world.


The challenge facing digital marketers now then is, how can you apply the rules of advocacy creation to any marketing activities beyond that delivered by their one-to-one- social media activities. And if you can't, where should you focus your spend instead?

This charge to privacy is, in my view, a road bump on the journey to Open (as in The 10 Principles of Open Business) which I think we will come to look back on as the time when a lot of people came to the realisation that they didn't NEED control from the centre.

It's an important learning, but something of a cul-de-sac in my view unless the outputs for all improve (and that is a road that always leads us back to collaboration, an Open road).

But for all that - it is happening - and marketeers must adapt to cope.

Monday, December 08, 2014

Give to receive

The 10Principles of Open Business provide a framework for rebuilding the trust so many brands and organisations have thrown away in the over-zealous pursuit of profit/cost.
What we know is when they destroyed the trust they had (through exploited suppliers, one-size-fits-all marketing and anti-customer service) they also destroyed the shareholder value they thought they were creating.
Today’s businesses are waking to the advantages of treating their customers better – of becoming customer-led Open Businesses. They do this because they know without trust their brands have little value.
Those that are most successful at this have recognised something you will find defined in the chapter on Trust in The 10 Principles – that trust is a reciprocal thing. We don’t want trust of the ‘you can trust us to be the cheapest’ kind. We want trust of the ‘we have your best interest at heart’ kind.
To be trusted you have to trust.
Amazon and John Lewis – about the most trusted names in retail these days in the UK – both provide a similar case study when it comes to refunds (an ever more critical part of the retail mix in an increasingly online environment in which distance selling regulations apply to everything bought online in the UK).
Both companies give you your money back. Take John Lewis. I took a six month old leather bag back. The zip had broken and the strap had all but snapped. I had no receipt. But I knew it was a John Lewis bag. I took it back and had the current list price of the bag (£145) zapped straight back on to my credit card.
Trust.
Which I immediately reciprocated. I went straight to the bag department and bought another bag. I know that if I have a similar problem, I’ll get similar treatment in future.
Amazon: Got a problem? They will refund you and THEN ask you to return the item. They trust you. So you trust them.
Both have thought about the problem not from an ‘efficiency’ perspective – but from a customer effectiveness one.
Today you must either offer wow or easy. If you are really good you wow by being easy (Amazon, John Lewis).
You can wow through really low price, or really high quality. Do this and you may get away with not being the easiest in the market to trade with. But if you can’t differentiate yourself significantly through price or quality then easy is where you have to aim – and where you have to win.
I wonder how many high street retailers can really argue they are as easy to trade with as Amazon? They don’t offer higher quality. They rarely offer lower price.
How can they restore the trust and make themselves easier – the first step may be to start trusting their customers more. For many that will require them to know their customers better.
I’ve had a few run-ins with one famous High Street retailer in the last few months. It’s becoming a bit of a running joke in our house. Mrs C laughed after I recounted my latest call with The M&S executive office and said: “They must hate it when they know it’s you,”
I only wish they had the customer systems in place to know my past record when I do contact them. I’d love it if they hated to see me coming. They’d know how much in debit with me they already are and might make an effort not to make things worse.

Sadly, every new issue I have with them is like starting from scratch. 

For M&S watchers - here's my latest complaint. I bought some trousers online. Colour wasn't quite what I was expecting (Less 'neutral' more, pensioner beige). So I returned them to a store. Thinking M&S was the bastion of easy exchange, I took nothing more than my order number with me. That should access everything they have on record about the transaction, I figured.
Nope, in store they can't check your online order number against anything, it seems. Now, instead of trusting their customer and just giving me the money back (as they would have done had they had the receipt) they could only give me a credit voucher. There was nothing in store that day that caught my eye so I took the voucher home to use at my leisure online.
When I did go to buy something online with it I discovered it could ONLY be used in store. In other words a purchase I had made online had been converted into a voucher I could not use online.
I rang and asked for it to be converted to an e-voucher. Computer said no. Even though I have all the reference numbers this could only happen if I sent the voucher back to them first. Funnily enough, if they don't trust me, I'm disinclined to trust them.
So I was left with a useless voucher (as least until the next time I went into one of their stores) instead of the goods I had paid for online.
That is how not to wow, how not to be easy - and how to illustrate the decline of a once great customer service brand...

FasterFuture.blogspot.com

The rate of change is so rapid it's difficult for one person to keep up to speed. Let's pool our thoughts, share our reactions and, who knows, even reach some shared conclusions worth arriving at?