Category Archives: marketing

Targeted Advertising While You Fly

It has been four years since I first wrote this article for my personal blog and because not many people saw it and because not much has changed I thought I would update it a bit and share it on Innovation Excellence.

Flying to Hawaii four years ago, I was reminded of the phrase, “You may be talking but nobody is listening.” Hawaiian Airlines had seen fit to pollute the cabin with an endless stream of un-targeted advertising on the plane’s set of televisions (no fancy seatback units here).

Now, at least on American Airlines the “advertising” mostly masquerades as entertainment (CBS sitcoms or clips of Letterman and 60 minutes) to try and keep the shows’ viewer base loyal or to pull in new viewers, but it’s still advertising. American Airlines has traditional advertising as well, but less than what I saw on Hawaiian Airlines four years ago. Since then I’ve flown all around the world delivering innovation speeches and innovation training, using a variety of carriers (Korean Air, Air France, Delta, etc.) and even on seatback inflight entertainment units I have yet to see any targeted advertising, and I’ve flown on a lot of flights without seatback entertainment units (although more and more airlines are updating their fleets).

Broadcast networks have at least some justification for spamming people over the airwaves (it’s their only revenue source and they are only able to target based on dominant audience profiles). The availability of on-demand, seatback entertainment systems, leaves airlines with no excuse, and in fact advertisers would be willingly to pay more for targeted impressions.

For targeting purposes, the airlines know who purchased the ticket (likely their age (senior/adult/child), phone number, e-mail, address, zip code, how much they paid, the credit card they paid with, etc.). About frequent fliers they will also know how frequently they fly, their home airport, and maybe even whether they are traveling on business and for which company. So it would definitely be possible to design a system to target advertising in-flight. And properly designed you could roll it out across a whole range of airlines to help airlines increase their revenue and advertisers reach their target audiences. So why haven’t airlines implemented such a system yet?

At its simplest, airlines could define the programming schedule as a mixture of content blocks and advertising blocks (interstitial advertising) and target the advertising by seat, using passenger data. Passenger data could be loaded up at the beginning of each flight by a gate agent using a USB key, smartcard, or other portable data storage device. Every seat could potentially receive a different combination of commercials during the flight.

Airlines wishing to avoid interstitial advertising could design a more complex system to support advertising that would appear during the programming (as banners, or whatever). Whichever way the airlines went, they have the opportunity to create a system that would likely attract the highest rates for video advertising on the planet to help them pay for the increasingly expensive fuel to fly the plane.

So why haven’t they done it?

P.S. I also thought it was interesting that Hawaiian Airlines had chosen four years ago to go “cash-free” and only accept debit and credit cards (which many other airlines have since copied). I agree with offering credit and debit cards as an option, but I’m not sure I agree with abandoning cash. Why would you want to do anything to make it more difficult for people to give you their money?

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Following the Line to Innovation

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Following the Line to Innovation OK, it may not really be an innovation, but I appreciated the following operational efficiency anyway:

Going to check out of the Hilton New York City, there was a queue in spite of the several available kiosks and multiple employees staffing the counter to help customers with various requests. Hilton had obviously invested in some business process consulting (or possibly listened to an employee suggestion) because in addition to the kiosks and the employees staffing the counter, they had an employee staffing the line to identify the needs of guests while they waited in line.

In my case, she asked how my stay was and I told her the story about how I had difficulty with the WiFi not allowing me back into my work e-mail after the connection went down and came back up again. I told her that the first night it worked fine and that I expected not to pay for the second night because it didn’t work properly (leaving important time-critical messages stuck in my outbox). She was sympathetic, but I halfway expected to have to tell the story all over again when I got up to the counter (as this is the typical bad customer experience on the phone or in person). I was surprised and impressed when she told the counter person to take off the second night’s WiFi and that I was ready to check out. Thankfully, I didn’t have to tell the story again.

This is good operational practice for a couple of reasons:

It gave them a way of increasing throughput during busy times when they would otherwise be limited by the number of computer workstations.
It provided a good customer experience. I only had to tell the story once.
I was on my way much more quickly as a result, and the counter person was on to their next customer more quickly as well
The poor person behind me didn’t have to wait while I told my story again, and potentially argued with the counter person because this had already been taken care of while we were both waiting in line (except no arguing was necessary).
If the customer has no special needs, the employee can direct the customer to an available kiosk.

This example, while more about good operational practice and customer service than innovation, does provide the opportunity to identify process innovation opportunities if we look at our own business through a lens of separating the customer experience into the following parts:

Information Gathering
Information Evaluation
Information Processing

Are there times in your business when your customers are waiting? Why are they waiting?

Do you have certain resources that reach capacity quickly or for sustained periods during busy times that you can’t expand easily?

Is there a way to utilize that waiting time to separate out the information gathering or information evaluation components of a customer interaction, to allow for a division of labor that can be more easily flexed to accommodate demand spikes?

In a phone scenario, could you not implement an interactive voice response phone system that notifies the customer how long they can expect to wait and then transitions to a “While you are waiting…” message and then asks the customer for their name, account number, and phone number to either be played for the agent before transferring the call, or maybe even trying to do some kind of speech to text and facilitate a record-lookup using that information?

Maybe you need to allow your skilled people to focus on information evaluation and processing, while lower skilled people focus on information gathering. Or, maybe in your industry the skilled people are at the front end, focusing on information gathering and evaluation and need to be separated from the information processing tasks.

In a manufacturing environment, while we don’t talk about information gathering, evaluation, or processing, we still use the same logic to evaluate the overall system throughput. Then, break it down into components so that we can identify and manage critical constraints and manage them in a way that maximizes throughput.

So whether you are in a manufacturing or a service environment, are you constantly looking for ways to optimize throughput and maximize profits or customer service (or maybe even both)?

What are your favorite stories of process innovations that have led to improved customer service or manufacturing efficiencies?

P.S. Continue reading on this topic by reading – Followup – Following the Line to Innovation at Costco

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World’s Worst Logo?

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Every time I see this logo I cringe.

If there is one logo in the world that is definitely in desperate need of updating, it is the logo of Sherwin Williams.

My stomach turns at the site of the earth dripping with paint and the slogan “Cover the Earth” only makes it worse.

Is there anyone out there that would actually like to see the earth covered in paint?

Especially paint that looks like blood?

Sherwin Williams, I implore you, please update your logo as soon as possible to reflect the changing world we live in, where people are concerned about toxicity and where sustainability and being green are increasingly important.

If you could do it before Earth Day on April 22, 2012 that would be even better.

You may not realize the negative logo your logo is having on your business because your stock price is moving up and to the right, but imagine how much better it might be doing if you updated your image to reflect your surroundings?

Come on Sherwin Williams, you can do it!

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Guest Innovation Blogger in the Language of Your Choice

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Are you looking for a way to increase the innovation knowledge in your organization?

Looking for a way to begin installing a common innovation language in your organization?

Well then, why not have me (Braden Kelley) as a guest blogger on your site or otherwise republish any of my own personal stash of 650+ articles from Human-Centered Change & Innovation directly as articles onto your web site or enterprise portal, you are more than welcome to do so as long you preserve proper attribution using this HTML snippet at the bottom of the article:

Braden Kelley is a Human-Centered Experience, Innovation and Transformation consultant at HCL Technologies, a popular innovation speaker, workshop leader, and creator of the Human-Centered Change™ methodology. He is the author of Stoking Your Innovation Bonfire from John Wiley & Sons and Charting Change from Palgrave Macmillan. Braden has been advising companies since 1996, while living and working in England, Germany, and the United States. Braden is a US Navy veteran and earned his MBA from top-rated London Business School. Follow him on Linkedin, Twitter, Facebook, or Instagram.

Go ahead, integrate some of my 650+ articles into your corporate portal, innovation management system, or open innovation community and I’m sure you will experience not only more informed conversations and contributions, but also possibly greater innovation success.

Happy innovating!

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Innovate Yourself – Becoming Overpaid

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Innovate Yourself - Becoming Overpaid A fun one from the archive (2007)

I came across this article from MarketWatch on the Ten most overpaid jobs in the U.S. and thought it was worthy of discussing. I don’t want to focus on whether these occupations are overpaid or not (I’m sure the people working in these roles would disagree with the author), but instead on what we can all learn from this article. First here is a list of the ten occupations:

Wedding photographers
Major airline pilots
West Coast longshoremen
Skycaps at major airports
Real estate agents selling high end homes
Motivational speakers and ex-politicians on the lecture circuit
Orthodontists
CEOs of poorly performing companies
Washed-up pro athletes in long-term contracts
Mutual-fund managers

Next, here is my list of some of the common threads amongst the ten occupations chosen by Chris Pummer of CBS MarketWatch with the input from anonymous compensation experts, and an academic examination of how someone might approach the “problem” of increasing their income by looking at these common threads:

Power

Create a situation where meeting your demands becomes an extremely attractive alternative to not meeting them. Some people would refer to this as identifying points of leverage.
Banding together with other highly skilled co-workers into a union is one approach that people take.
Another is to take create sufficient revenue for an organization so that the company doesn’t want to risk interruption of that cashflow.

Fear

People are afraid of someone messing up their wedding photos, their investments, or their safe journey.
Put yourself in a position to directly protect a customer’s memories, finances, or their life itself.

Establish a “tradition”

Pro-actively create the perception that it is the usual way of doing things for a customer to tip you or pay you a percentage of their bill (regardless how big).
The people at the airport taking your bags at the check-in counter do the same job as curbside check-in (they give you a ticket and check your bag), but we all believe it is accepted practice to tip the curbside check-in person and not the person at the check-in counter inside. We tip a “waiter” for taking our order and giving us food and drink, but we don’t do the same for the “cashier” at McDonald’s do we?

Create a shortage

Organize the people in your “profession” and work to create barriers to entry that can be used to control supply.
Trade unions do this to some extent with apprenticeship programs and the like.
In addition to Orthodonists, Pharmacists and Veterinarians have been accused of this.

Turning garbage into gold

Identifying a job that most people wouldn’t want to take, but where a highly qualified person is desired, can result in a job that might pay quite well.
If you are a supervisor, try to position yourself to supervise the group of people in your organization that makes more money than the group you supervise now (usually a supervisor will make more than the people he/she supervises).
Most talented managers won’t take on a position at a struggling company, and as a result the company will either have to over-pay to get good talent to join or be satisfied with hiring people who want to stay in the local area or couldn’t get hired by a better performing company in the industry. If you have a tolerance for risk, seek out opportunities at underperforming companies in your industry and play up the career risk about moving from your successful company to their unsuccessful one in the compensation discussions.

Would it be wrong for an individual or a group of employees to look to game these common threads consciously?

Organizations are constantly looking for ways to put downward pressure on wages, so would it be wrong for individuals to look after their own self-interests and attempt to maximize their ability to take care of their family?

I would argue that it is the responsibility of the individual to protect their own self-interests and look to maximize their wages in the same way it is the responsibility of the organization to look to minimize wages for the self-interest of the shareholders.

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Growing Demand for a Third Place

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Growing Demand for a Third Place I’ve been meaning to write this post for some time, and am finally getting around to it, so hear goes…

As I look around the economic landscape in the United States and see a climate where not only home prices but also rents are falling in many geographies, especially as the results of an all-advised rental property construction boom become available. I find myself thinking that we are in the middle of a profound shift in the American reality.

I think we are in the middle of an unexpected regression back to more multi-generational housing and a return to increasing levels of co-habitation amongst the young. Now when I speak about co-habitation here, I’m not talking about couples living out of wedlock, but instead I’m talking about more people living with roommates – and not just the young. In the future I believer we’ll see not just the young co-habitating, but older people too.

So, two housing demand destroying events coming together at the same time. But besides a decline in home prices and rents, there is another important impact of this changing American reality that I don’t see being addressed…

As more people live with roommates or in multi-generational housing situations and seek to get to get out more for some thinking and breathing room, there is going to be an increasing demand for more third places.

Starbucks and the Third Place For those of you not familiar with the third place concept, coffee shops like Starbucks are one of the most famous examples, but there are other third places in the United States. There is the shopping mall (you know it’s true), the convenience store (see Bill & Ted’s Excellence Adventure), the YMCA, the Boys and Girls Clubs, and the Public Library. It seems like the latchkey kid phenomenon has become the library kid phenomenon. Kids leave school and go to the library and hang out there until their parents get off work and come by to pick them up.

Some shopping malls have installed free wifi, giant chess boards, and tables for people to use laptops or play games. Cities and YMCA’s have created teen centers. But one thing I have yet to see that I am waiting to see is a transformation in the mindset of the companies that run fast food chains like McDonald’s, Burger King, Taco Bell and others. When you go into a Starbucks it is very inviting and it is a happening place with old friends meeting up, kids sitting around doing homework, small business people working, and job interviews taking place. But when you go into a McDonald’s or other fast food chain, most of the time they are empty places designed purposely with uncomfortable seating, harsh lighting and other touches to make people get in and out as fast as possible. Most fast food chains do a booming drive-thru and carryout business, but not a lot of people stay and sit down. Nobody wants to hang out in an uncomfortable place.

But what would happen if McDonald’s or some other fast food retailer changed their thinking to create a third place environment to fill their empty seats?

How many more customers would they attract and engage?

How much more loyalty would they build?

How much more of their customers’ fast food spend would they achieve?

In my mind these are questions worth asking, and the biggest one is which major chain will move first?

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Are you good enough?

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Are you good enough? Unless you have invented a completely new product or service, it is very likely that there are large competitors already in your marketplace, established competitors that you will be trying to outwit and outmaneuver. Even if you do have a completely new product or service, customers still have alternatives. For example, the Segway entered the marketplace with a “revolutionary product with no competition”, but the truth is that it entered a marketplace with a smorgasbord of alternative competition (walking, bicycling, roller-skating, skateboarding, etc.). This alternative or substitute competition has proven far stronger than any direct competitor ever could. So what can a small firm do to outmaneuver the big guys or outwit the sneaky substitute competition that is easy to overlook in the passion of the startup process?

The key to any startup outwitting or outmaneuvering the established players begins with strategic innovation. To create a strategic innovation you must first truly understand competition in your industry. Competition amongst firms in any marketplace is typically defined by a few key product or service features (value dimensions). In microprocessors the defining competitive feature in the minds of 90′s consumers was megahertz, while in assembled computers the keys were megahertz and megabytes. These two industries had yet to be fully commoditized so the arms race was along these dimensions of value. In a fully commoditized industry however, firms end up competing mostly on the value dimension of price. Why is this true?

The answer is that in a fully commoditized industry, consumers find the alternatives to be “good enough” on the value dimensions that matter to them and so the consumer generally selects the alternative with the lowest price. This behavior drives price competition and lower margins, and makes commodity industries generally not a nice place to be. So how do you avoid product commoditization or how do you create a strategic innovation in a commoditized industry?

Strategic innovations allow your organization to avoid or rise above commoditization. In addition to an in-depth understanding of your industry’s competitive environment, strategic innovation requires an intimate understanding of the customers. From this intimate understanding you are hoping to identify a value dimension that is incredibly important to the customer but woefully under served. This value dimension could be price, as Southwest Airlines proved in the airline industry, but most likely will be something else. Starbucks‘ strategic innovation was developed along the value dimensions of:

A consistent and repeatable exceptional coffee experience
A network of convenient locations

Strategic innovation requires that your product or service is “good enough” across the value dimensions that currently matter to customers, and creates “customer delight” on a value dimension that you identify through your extensive customer research as being incredibly important but woefully underserved (see Figure 1). Once you identify such a value dimension the difficult work truly begins. Now you must ask yourself how easy would it be for my competition (direct or substitute) to begin competing on this value dimension instead?

If it would be relatively easy for your competition to replicate your insights and the resulting product or service, then you have discovered a sustaining innovation – an innovation that takes the product or service to a higher level of value for the customer, but not capable of transforming your position in the industry. A true strategic innovation is powerful precisely because it will be incredibly difficult for the established competition to replicate. How did Southwest Airlines succeed by competing on price?

Southwest Airlines achieved strategic innovation not because they recognized that price was important to customers, but because they created an organization from the ground up that was capable of delivering low fares with great service. Their ground up organizational focus on people and cost ensured success where previous low fare carriers had failed. Established competitors have been unable to replicate their success. Delta with Song and United with Ted both crashed and burned in dramatic fashion. To get a better idea of what goes into a strategic innovation, look at Figure 2 to see a few of the key components of Southwest’s success:

Let’s shift back to you now. Once you’ve got that great product or service idea and possibly even a value dimension to build your company’s strategic innovation around, how do you get traction on that steep road to success?

Even if you have the greatest widget known to mankind, the likes of which nobody has ever seen before, you can’t just open a storefront and wait for the customers to walk in. You have to go out and effectively market your widget by first selecting who to sell to. Refuse to make this decision and you are doomed. Make the wrong decision and you will burn through valuable cash and potentially burn up any chance of creating success (no matter how good your product or service is). The key to gaining traction is identifying where the greatest customer pain solvable by you is, and for which customers are willing to pay a relative unknown to solve the pain for them (see Figure 3).

Encountering companies or consumers not willing to buy from an unknown is a key hurdle that some entrepreneurs never overcome, sentiment embodied in the popular phrase “Nobody ever got fired for hiring IBM.” This resistance may require you to seed your market by entering less than ideal arrangements with leading influencers in your target market. Being first is daunting for buyers and may require financial encouragement and hand holding, so that you have the opportunity to turn them into passionate advocates for your product or service in the future.

If you have created a truly valuable product or service, and ideally some level of strategic innovation to go with it, now hopefully you will have the time and opportunity to gain a foothold in your market and expand into other niches before the established competitors are able to replicate your success.

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Seth Godin and Amazon – The Domino Project

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Will the Innovation Dominoes Fall and Disrupt the Book Publishing Industry?

Seth Godin and Amazon - The Domino Project “The enemy is not piracy, the enemy is obscurity.” – Tim O’Reilly

I came across a TechCrunch TV interview with Seth Godin today about his future publishing plans.

I’ve been wondering what Seth meant when he told me last year at the World Innovation Forum that he would never publish another traditional book. Here is the video:

Now, he has made it clear what he meant, and just what his future plans are in the below video from Tech Crunch. His plans have a name, The Domino Project, and it is a publishing house venture he is undertaking with Amazon and it starts with a simple question:

How do you make a book spreadable?

Right now books work very hard against being spreadable, and in Amazon’s continuing quest to evolve the book business beyond just selling ebooks and blogs on Kindle, they apparently approached Seth Godin, gave him a blank sheet of paper to envision a new way of approaching book publishing. He described this collaboration with Amazon – The Domino Project – through a series of questions:

What happens if we allowed you to buy a 5-pack for only slightly more than one book? Wouldn’t you then give four of them away to people who would be interested in reading them?

What happens if we allowed people to share a Kindle book for free for a certain period of time and then try to figure out how to make money from it?

Can you dream big enough?

Can you do something that is worth doing, or will you hold back and play it safe?

Amazon will be working directly with authors – including Ralph Waldo Emerson. Godin’s new book will of course be included (and will be on initiative). He also mentioned that the trend of these new books will be towards the spectrum of manifestos. Traditional book publishers can’t do 96 page books, but The Domino Project can. Godin says that the success of the effort will be measured on whether or not the first 10,000 people who get the book, actually share it.

So, what was the most depressing part of the interview?

“The average American buys one book a year.”

Will The Domino Project successfully disintermediate the traditional publishing houses and transform how authors go about publishing book? Is there anything here that is actually new? What do you think?

Here’s the video interview if you would like to watch it for yourself:

Seth Godin’s new book Poke the Box will be The Domino Project’s first title and it will come as a limited edition, a hardcover, a Kindle ebook, an audiobook, a 5-pack, and a 52-pack.

Oh, and if you don’t have my a copy of my book Stoking Your Innovation Bonfire already, it’s available on Amazon as a hardcover or a Kindle eBook, or from other great physical and online booksellers:

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Introducing Snack-Sized Innovation Consulting

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As many of you know, Human-Centered Change & Innovation is a sideline for me, and a way of giving back by bringing together the best human-centered innovation, change, transformation, design thinking and experience insights I can get access to and then make them accessible for the greater good.

To pay the bills and keep Human-Centered Change & Innovation going, I do consulting, speaking and writing.

In recognition of the changing economic realities and the increasingly global market for our services, we are pleased to offer snack-sized innovation and marketing consulting services by Skype video conference as well as traditional on-site consulting. Now you can rent Braden’s brain for even the smallest need or budget. Here are our three main packages:

Silver

Gold

Platinum

Skype video call
Up to 90 minutes of preparation and consulting services
Additional hours available for purchase

Skype video call
Up to 180 minutes of preparation and consulting services
Additional hours available for purchase

Travel expenses
Custom on-site consulting solution
Purchased by the day or week
Scheduled in advance

Business Strategy Innovation delivers workshops and consulting services that focus on three areas:

Getting Started with Innovation
Creating a Culture of Continuous Innovation
Building Stronger Customer and Employee Relationships

Founded by Braden Kelley, Business Strategy Innovation has been advising companies since 1996 in industries ranging from medical equipment, software, and internet advertising to real estate, retail, defense, and more.

Based in Seattle, Washington we are just a short flight away from anywhere in the United States and available to work with companies in Europe, Asia, and beyond. But, now with these new snack-size consulting options, you don’t have to have a budget big enough to bring us to you, and can instead get some really good feedback or advice on the issues you are wrestling with at a much lower cost.

I look forward to helping out however I can.

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Joy is BMW – Marketing Innovation or Marketing Failure?

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I came across the following video of a BMW advertising installation thanks to a tweet from Blogging Innovation contributor @RowanGibson and I think it serves as a perfect case study of how one firm – in this case BMW – can succeed and fail in utilizing some of the modern incremental innovations in the traditional marketing methods (including social media) to bond itself to an emotion – in this case ‘joy’.

First, watch the video, then we’ll examine where BMW has done well and where they have failed to harness the power of social media in creating the perception that ‘Joy is BMW’.

Successes:

1. BMW attempts to stake a claim to an emotion (joy) that no other car company is pursuing
2. The video has already had 115,000 views in one week
3. Lots of people are re-tweeting the video and including ‘BMW’ and ‘joy’ in their tweets on Twitter

Failures:

1. If you do a search on Google, Bing, or Yahoo! for “joy” – BMW is not in the top ten search results
2. Compounding this failure is that BMW is not doing any search engine marketing on the term “joy”
3. The startup video was herky-jerky after waiting a long time for it to load on the Joy is BMW page
4. The ‘Joy is BMW’ page is boring, not search engine friendly, and not social – there is no way for people to participate – no real value to the page
5. The 3D building projection event from Singapore is not featured on the ‘Joy is BMW’ page
6. There is no way for people to have conversations about the video (other than on YouTube)
7. BMW is not active on Twitter and makes no mention of Singapore event or ‘Joy is BMW’ campaign
8. No videos or photos related to ‘Joy is BMW’ on Facebook or mention of it by any of their 679,000+ fans
9. http://www.joyisbmw.com not purchased by BMW before launching the campaign
10. http://www.miseryisbmw.com also not purchased by BMW before launching the campaign

Unfortunately the failures list could be much longer, but I will stop here in the interest of brevity. The really sad thing about the ‘Joy is BMW’ campaign is that people want to be more social with BMW, they crave it, but they are not really being provided the opportunity.

To be honest, after watching the video of the experiential event I was expecting BMW to have created this forward-thinking integrated conversational marketing campaign to go with it, so imagine my surprise when the emperor’s new clothes fell off when I started looking around the social media universe.

BMW, there is still time to save the campaign. If you need some help (which it looks like you do), let me know and I’ll be happy to jump in, line up some great creative teams around the world, and knock out a great conversational marketing strategy to salvage the campaign.

What do you think? Has BMW blown a golden opportunity to go social with ‘Joy is BMW’?

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Human-Centered Change and Innovation

Innovation, change and transformation thought leadership, lovingly curated by Braden Kelley

Category Archives: marketing

Targeted Advertising While You Fly

Following the Line to Innovation

World’s Worst Logo?

Innovate Yourself – Becoming Overpaid

Growing Demand for a Third Place

Are you good enough?

Seth Godin and Amazon – The Domino Project

Will the Innovation Dominoes Fall and Disrupt the Book Publishing Industry?