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April 2008

April 29, 2008

Very Truly Yours

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A lawyer for Marvel Entertainment has decided it's in the best interest of his client to send a letter to Michael Arrington demanding  TechCrunch shut down their Iron Man screening. As a thank-you to readers, TechCrunch bought 600 tickets to an early showing of the movie at full price by calling the group sales phone number on the official Iron Man movie site.

Marvel's PR people can't move fast enough to dress up Dave Althoff in an Iron Man costume to hand over free tickets to TechCrunch readers at the screening, rather than threatening further legal action against one of the most popular websites in the country. News of the insanity is spreading through blogs, Twitter, FriendFeed, and other social media sites faster than risque Miley Cyrus photos crashed Vanity Fair's website.

The best part of all this, however, has to be how the associate counsel signs his cease and desist email: "Very Truly Yours."

Classic.

Update at 8:02PM April 29: Check out the link in the first comment on this post and you'll quickly learn why it's better to work with your fans than against them whenever possible.

Update at 12:11PM April 30: Good triumphs over evil. Marvel is in Arrington's good graces. Oracle is not. Read the ever-twisting tale here.

April 28, 2008

To Share, or Not to Share...

Read an interesting CNN piece this morning on the potential perils of social networking. Good food for thought as millions of lemmings rush headlong toward what may be a cliff. In our desire to be perceived as the "coolest new kid on the Facebook block," we may in fact be enabling identity theft. 

On Facebook, I can only download applications if I check a box allowing the developers to "know who I am and access my information," which means EVERYTHING on my profile, except my contact info. Hmmm, how do I know what they're going to do with my information...or even who THEY are associated with?  Oh wait a minute, that's right, I don't have any idea.

Don't get me wrong; I'm all for the honor system as long as I can have a reasonable expectation that I'm surrounded by honorable people. And I don't even mind "targeted advertising" as long as it's not too creepy. I also think that social networking has enormous benefits. It's just that the devil is in the details and we should all take a good hard look at the fine print before we agree to terms so that we know what we're signing up for. 

Not the fun part of social networking perhaps, but important nonetheless.

April 25, 2008

Web 2.0 - Just do it!

I think the biggest downfall of social media tools is the planning. Really, Web 2.0 should be called JDI -- Just Do It! The very nature of these tools is about moving quickly. As you sit here planning and strategizing, your competitors and colleagues are going going. That's not to say don't plan at all and just tell your employees to have at it and have fun. Start by putting together some guidelines the company can stand behind, such as not competitor or company bashing, being informal yet still professional, being cognizant of the fact that you are still representing the company and brand (not yourself), and ultimately, have a goal of what your social media communications is meant to do and who it's meant to reach.

Social media is a lot more informal and shouldn't require the same amount of red tape as other more traditional communication methods. The last thing the social media audiences want is "formal" Web 2.0 communication (really an oxymoron). It's all about showing your voice, being honest, losing spin, and ultimately just connecting with your audience.

So, just set up a Facebook account, just try Twittering, just try bookmarking an article as opposed to sending it via e-mail. Get your feet wet. I think we can all agree that Internet communication has been an industry boon, however, it's impersonal. The Internet is trying to get some personality, personal connections, emotion. Businesses need to think about generating some emotions from their customers, partners and other key constituents. Inspire them to have a voice about your company and respond to your social media communication. Make them want to post a comment.

Whether you set up a formal company social media policy or not, chances are your employees will continue to move on without you...especially the younger employees who "get" where communication is going. So, get ahead of them, brainstorm your social media goals, get some guidelines in place, and have fun!

From the smallest acorn...

... grows the mightiest oak. Or something like that. Marc Andreesen, who co-developed the original browser that sparked the Web revolution, didn't think it was that big of a deal at first. But he quickly grasped its implications and formed Netscape to commercialize the concept.

It's an interesting contrast to entrepreneurs and inventors who talk in grandiose terms about their latest "disruptive technology." Most die on the vine. But some of the greatest innovations in the history of the world had humble beginnings and were not completely understood, even by the people who created them.

April 24, 2008

A Tale of Two Trade Shows

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Ah, springtime – for the technology industry, that means only one thing – tradeshows! And this April was most definitely a doozy. RSA, CTIA, Web 2.0, NAB, Interop and a bunch more were all scheduled one after the other. Elke and I have managed to hit all of them, so we thought we would provide a brief report on what we saw.

First, CTIA. For those of you unfamiliar with the organization, this acronym stands for the Cellular Telecommunications Internet Association and is dedicated almost exclusively to wireless operators. The website will say different, including consumers and enterprises in that mix, but anyone perusing the hundreds of booths will quickly determine otherwise. In terms of content, 90 percent of this show was split between infrastructure vendors and handset/device manufacturers showcasing their latest wares.

Although nothing compared to a CES, this show still managed to deliver some flash, with booths providing onsite gelato vendors, oxygen bars, mechanical bulls, live bands, life-size Iron Man figures and, on occasion, actual product demonstrations to view. In an industry as diverse as wireless, there were certainly a lot of different aspects to focus on, but I’ll try to narrow down the field to those that kept my attention.

I’ll start with some folks that certainly commanded attention, but didn’t really deliver on the promise of a new Mobile Internet - the handset vendors. While Ericcson, Nokia, LG, Kyocera, Samsung and the rest most definitely had the biggest impact visually, with enormous booths that contained sparkly and relevant attractions such as a nude, rotating chromed angel, the handsets that were displayed were almost all models that anyone visiting a store had already seen. Even those that purported to be the newest thing were, for the most part, incremental improvements on existing designs. The one exception to this was Nokia’s WiMAX handset, which was essentially more of a mini-tablet computer, but one that sported a significant feature set. This should be a promising beginning to a real WiMAX service.

Of course, there really aren’t any mobile WiMAX services deployed just yet (and only a few pockets of fixed WiMAX), but that didn’t stop most of the vendors at CTIA from acting as if this technology was already mass deployed. Sprint/Clearwire even had a XOHM booth set up (this is the WiMAX service that Sprint/Clearwire have announced), although the future of this service is in doubt. That said, there was a lot of positive talk around WiMAX, with the general feeling that even if the Sprint/Clearwire deal had serious issues, there were too many interested vendors to allow the technology to fail without seeing at least some deployment. Broadband wireless, whether via WiMAX or its more cellular-oriented sibling, LTE (short for Long-Term Evolution and championed by Qualcomm among others), was the talk of the town, with every piece of the puzzle focused on getting this service deployed. From backhaul to power generation to content development, broadband wireless is clearly the most significant variable driving this industry.

Which brings us to my biggest surprise of the show – the focus and interest in most of the infrastructure vendors. I remember going to CTIA in New Orleans 4 years ago with some infrastructure vendors and most of their booths had tumbleweeds drifting through them with a soundtrack of crickets (not our client’s booth of course – we kept that one hopping). This year, one of the most crowded booths I found was a semiconductor company. Other companies also focused on technologies like backhaul, FMC, power generation had good crowds. For my part, I think this answers the “chicken or the egg” portion of the broadband wireless question – carriers are focusing on infrastructure now while making handsets a lower priority. After all, many chipsets for those devices are done, but the additional intelligence and capacity required for the network still needs to be put in place.

RSA was our next stop. As quick background, RSA is North America’s most important security conference and is usually held here in San Francisco. We had a number of clients – old and new – there this year, including Juniper and NETGEAR. RSA had nothing of the flash of CTIA (the best Lisa and I saw was an Ozzy Osbourne look-a-like), but had a lot more consistency in terms of theme – almost every booth we saw focused on NAC, compliance or management. This speaks to a couple of trends that have become clear in recent months. First, a lot of companies feel strongly that they have the necessary security infrastructure in place, but don’t have the visibility required to manage their events properly. As one of our old clients used to say, “Security is now an adjective, not a noun. You have secure networks, secure routers, etc. – not just security functions.”

Additionally, policy compliance is still a big issue for IT. Which makes sense since they’re on the hook to validate the millions spent on third-party auditors. I can’t imagine explaining to my boss that they would have to re-do a security audit because I couldn’t ensure compliance!

Overall, both shows gave us a great opportunity to sit down with some of our key media contacts and visit with friends new and old. It was impressive for me to see the great relationships Liam and Lisa Eskey had developed. Liam was able to ensure Jim Carroll of Converge! Network Digest made his flight by pulling him out of the back of the taxi line and bringing him up with us. Meantime Lisa had me stopping every 5 minutes to chat with a colleague, including folks from SC Magazine, TechTarget and various analyst firms.

Elke has also been busy on the trade show circuit, so I’m sure her experiences with NAB, Web 2.0 and Interop will be interesting. Stay tuned for more!

April 23, 2008

Clear: Cutting in Line (Legally) at Airport Security

I don't know about you, but cutting in line has always held a certain appeal to me...especially when I can do it guilt-free.  I now get a regular "cutting" fix at both San Jose and San Francisco airports, and I'm told it's made me a kinder, gentler traveling companion. 

I signed up for Clear about a year ago. I wasn't sure whether it would be "worth it," but have to say it's reduced the hassle of airport security significantly.  Sure, they have scads of my personal information...but who out there doesn't these days? 

By dint of having this little card (which costs $128/year and takes several weeks to process), I — and my children under 12 — get escorted to the VERY FRONT of the security checkpoint line, saving dozens of hours of my life each year...and reducing my stress level enormously.  I also get the curious looks of infrequent airline travelers who assume that I'm some sort of VIP, so it confers a bit of "celebrity" status as well! 

When they first started out, it was only helpful at a handful of airports.  Now, however, they have about 18 airports online so if one of them is your home airport and you're a regular flier, I strongly suggest looking into it.

You can also get a discount on your enrollment fee — and reward me for bringing this to your attention — by entering promotional discount code SCA68288.  

So, if you like to cut in line, check it out.  And I'll seeya at the front of the line!

Deja Vu All Over Again? Not So Fast.

The San Francisco Chronicle reports that the economic slowdown is affecting VC funding for Web 2.0 companies, but attempts to cushion the blow by stating:

No one expects startups to suffer the wave of troubles that steamrolled the industry starting in mid-2000.      

Still, even that sounds too pessimistic to me. I saw a lot of enthusiasm at the Web Mission Brunch hosted by Jim Buckmaster this past Sunday. Twenty U.K. Web 2.0 companies met to explore new opportunities for growth with key people (investors, media, analysts, partners, etc) in Silicon Valley. If the Europeans are meeting with potential U.S. investors, there must be enough money to go around for compelling U.S. Web 2.0 companies.

Additionally, two Sterling Communications clients, Clickability and Reality Digital, just got second rounds of funding in Q1 2008. Investors liked the fact each had positive cash flow, a solid and growing base of customers, and a viable value proposition. Far from being all "doom and gloom," the economy still has plenty of room to welcome smart startups, which is why we'll be at the Web 2.0 Expo through Friday.

Recommended Reading: The Ultimate Question

Fred Reichheld, an ex-director at Bain & Company, has spent decades studying customer loyalty. “The Ultimate Question," his 2006 book, introduces the concept of the Net Promoter© Score (NPS) for gauging customer relationships in much the way companies use net profit to judge financial performance.

The NPS is a customer relationship metric derived from a supremely easy customer survey based on The Golden Rule: How likely is it that you would recommend this company to a friend or colleague? Respondents give a 0-10 rating which classifies them as “detractors,” “passives” or “promoters.” The final NPS is determined by subtracting the percentage of detractors from the percentage of promoters. What’s frightening is that the average company has an NPS of only 5 to 10 percent, meaning that there are nearly as many customers who are classified as detractors as there are promoters! Big surprise, many firms and industries have high negative NPS (think cable companies and airlines). Reichheld cites many company examples for improving NPS, with the most detailed being those of Enterprise Rent-a-Car, Intuit (financial software), Chick-fil-A (fast food), HomeBanc, Four Seasons, USAA (military insurance), Harley Davidson, and Superquinn (Irish grocery chain).

He also recommends that companies survey customers to calculate their NPS on at least a monthly basis, just as they evaluate their financials. Companies that are serious about improving customer relationships will establish procedures for follow-up to get to the root causes of detractor scores. If you wait too long, the core reasons a customer might have moved from promoter status to passive (or even detractor) will have been forgotten.

BTW, Bain research shows that for every negative comment made about a product or service, a prospective purchaser would have to find 5 positive comments to balance out that single negative!

Our client Attensity helps companies address their NPS issues through use of Attensity's "Voice of the Customer" (VoC) platform built on its text analytics software technology for transforming unstructured customer feedback into actionable first-person intelligence. Whirlpool and Travelocity are two of the companies using Attensity VoC.

April 18, 2008

Bingo Night at Laguna Honda Hospital

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Last Thursday, some of my fellow Sterling co-workers and I helped out at Laguna Honda Hospital with the monthly Bingo Night that's organized by Hands on Bay Area. Let me tell you, what a fun and interesting evening we had! We arrived to the hospital, equipped with prizes and ready to play. After receiving a quick orientation from the Hands on Bay Area project leader, we each joined a table or picked a certain resident to sit with and keep company. Unfortunately, I didn't  bring much luck to the people at my table since there wasn't a single resident who was able to call out Bingo! Actually, one woman did, but it was a false alarm. In any case, I still like to think I brought them great company.

The hospital had a pretty cool Bingo room with their giant Bingo "score board" lit up on the wall. They also had a big box that held and spun all the numbered Bingo balls, which I have to say, made me feel like I was on TV watching the drawing of the California Super Lotto.  Fun times indeed. 

Overall, the night was a wonderful opportunity to visit the residents, keep them company and cheer them on. It turned out to be a much more fulfilling and enjoyable experience than I think any of us anticipated. It was great getting to interact with the residents, see their smiles when they won and especially how much joy the "simple things" brought them. We all agreed that this was something we'd definitely do again!

April 14, 2008

"TV Learning the Importance of Targeting"

Although targeted advertising has been present on the Internet for years, television is behind the curve.

The Wall Street Journal details  a study from Comcast and media firm Starcom MediaVest that confirms, once and for all, that targeted television advertising is indeed effective — viewers are approximately one-third less likely to change the channel when an ad is targeted specifically to them (their location/market/etc) than when they are shown a traditional ad.

The study is particularly relevant considering that the current $70 billion U.S. television-ad market is rapidly decreasing as advertisers look to the Web as a more effective platform. Furthermore, this kind of targeted advertising is becoming increasingly important as the spread of VOD and DVR technologies make it easier for viewers to skip commercials. For television advertising to compete with the lucrative online ad market, it must be able to target ads in the same way they can online – with “real-time” insertion opportunities and geographic segmentation and targeting.

This presents an opportunity for technology companies like Harmonic, Inc. (a Sterling client) to develop ad insertion solutions that are less tedious and complex than current processes and that don't negatively impact the quality of the video -- common roadblocks to mass adoption. Should be an interesting space to watch as Comcast and Starcom MediaVest expand their study and more operators begin to play around with targeting.