Your Mom Buys More Online Than You

There is some interesting findings in a new study of how consumers use mobile devices.

In a study by JiWire, a location-based online media company, we learn that more are using location-based content to find a business versus connect with others. Even fewer are checking in at locations. However, a majority are willing to reveal their location to gain more information about a business or to gain an offer. In a big leap from previous studies, a full 53% of those surveyed say that they plan to use their mobile device for their holiday shopping this season. All great trends for social media marketing and mobile marketing.

The most surprising statistics are when you look at the data by generations. The infographic below from JiWire summarizes the results well. Simply put, Generation X, and those up to age 54, are much more likely to make purchases via their mobile device. They are also almost twice as likely to research using their mobile device and then purchase in store. Granted the spending power of those aged 35-54 is greater than those 18-34, but the results seem to confirm the comfort level that older mobile users have has increased dramatically. This makes sense considering that most people over the age of 35 have been using mobile devices and shopping online for up to 20 years. 

As marketers, what does this mean for us?

1. Location-based information is a must for your business. Even if it is passive, businesses must have online location presence with details and links to their other social media and online presence.

2. Retailers must align their social media and online brand with their bricks-and-mortar presence. It is clear that consumers view your brand as your brand,. If one does not relate to the other you are in trouble and they will question their potential purchase.

3. Active engagement and response in social media is crucial. With a near majority researching items online before buying, having an active engagement and response protocol is crucial. View social media engagement as sales staff in your store.

4. Monitoring your third-party product reviews and earned media is vital. Tracking and reporting of online product evaluations, reviews and blog commentary is vital. Develop a plan for engagement as response.     

Ultimately, this simply reinforces the convergence of channels as it relates to your brand. You cannot neglect one outlet anymore.  

Dying a Qwikster Death

Article first published as Dying a Qwikster Death on Technorati.

Reed Hastings, CEO

It was a death that most everyone knew was inevitable. The ill-conceived direct mail spin-off of Netflix, Qwikster, has been declared dead only a month after its creation. Brian Stelter of the New York Times covers it deftly in his Media Decoder column. While this is a catastrophic and high-profile failure, we see this same type of mistake daily in companies big and small. Reed Hastings, CEO of Netflix is attributing it in his press release to moving too quickly,

“Consumers value the simplicity Netflix has always offered and we respect that. There is a difference between moving quickly — which Netflix has done very well for years — and moving too fast, which is what we did in this case.”

There is no doubt that they moved to quickly, but speed doesn't kill, if you don't make the other mistakes they made. Hidden in the multiple missteps of bad naming, terrible branding, bad launch strategy, poor planning and unsatisfying public relations management are two key failures.

Failure #1:   They lost sight of their company vision in making this decision.

Mr. Hastings stated in the 2003 Netflix Annual Report that the vision of the company was to create "the best movie experience.  Period." A laudable goal and a worthy one. The company abandoned this vision in an attempt to advance the company to what future customers will demand. The problem with that is that their customers are not future customers, they are current customers. Anyone who uses Netflix will tell you that the online streaming library is far from "The best movie experience." It lacks many current films and TV shows as well as many classics and art house films. The consumer does not want to hear excuses. There are valid ones about licensing, Hollywood studios being difficult and cost-revenue factors. It is not the consumer’s responsibility to understand your company’s challenges. All they are required to do is determine if your company vision matches the experience.

Failure #2: They forgot that the customer comes first.

It’s an old adage, but a very important one. Simply put, they placed revenue and expense at the forefront of boardroom decision making. Evert decision should start with the questions "what will make our most loyal customers love us even more? What will make our former customers love us? What will convert new customers over to us?" Those questions are the first litmus test. Once those ideas are on the table is when you sharpen the pencil and determine what makes the most financial sense for the current landscape and into the future.

Failure to Launch. Now on Netflix

So what should have Netflix done? I guess the better question is, what should Netflix do now? The reality is that the mail order DVD business is dying. No doubt. They need to exit it. Perhaps they felt that a quickie (pun intended) rebrand and spin-off would allow them to make a value sale of that portion of their business. This was not the way to do it. The value of their DVD business was in the brand of Netflix which they are not willing to sell and the infrastructure. Most possible buyers would have bit on a sale as-is, without a spin-off business. Netflix should invest in more streaming films, better software and distribution services, better search and viewing features and so on. They should make streaming the best it can possibly be.

Second, Netflix should consider a tiered Premium service for streaming customers. Offer exclusive content, preview viewings of new releases and even live streamed content. Make it a real and worthwhile premium product. At the same time, they should slowly continue to ramp up the pricing of the DVD mail order product. Over the course of a year or two the price will have steadily climbed to a point in which a smaller user base is paying a premium for the service. It will then become an "exclusive" service versus a lag service.

The Qwikster death should certainly be a reminder to all businesses that they need to reflect on their vision and customers before making any decision.   

The Most Important Infographic Ever

After many months of extensive research and study, I have compiled a comprehensive Quadrant Analysis outlining where most industries fall in service and product quality.
Additionally, I have highlighted where there is a "white space" of opportunity.

For ease of use, I have bundled the companies by industry. The ones who fall within the "Opportunity" section I have listed by name.

Now, hopefully industry CEOs and CMOs will read and understand this chart.

The conclusion is that most companies need to adopt a mantra of "Don't Make Shit and Don't Be An Asshole."