Author Archive
The Norm of Normality Goes Out the Window: Most Of Us Aren’t ‘Average’
Human performance … does not often fit the bell curve or what scientists call a normal distribution. Rather, it is more likely to fit what scientists call a power distribution. “Paretian or power law distributions, are typified by unstable means, infinite variance, and a greater proportion of extreme events.“
Studying the performance of 633,263 people (from entertainers to politicians to academics to collegiate as well as professional athletes), researchers Ernest O’Boyle Jr., of Longwood University’s College of Business and Economics, and Herman Aguinis at Indiana University’s Kelley School of Business “found that a small minority of superstar performers contribute a disproportionate amount of the output.“
“More than 80 percent of all Emmy-nominated entertainers, for example, fell below the mean in terms of the number of nominations they received. A small but sizable minority, meanwhile, enjoyed outsize success and accounted for a disproportionately large number of Emmy nominations.“
“If you unconstrain the situation and allow people to perform as best as they can, you will see the emergence of a small minority of superstars who contribute a disproportionate amount of the output.“
This challenges both research and policy making and has implications for equality and merit and similarly fairness and bias.
Last I saw, marks at Universities are fitted to a normal distribution …. hmm shall we discuss that result again?!
Let’s Hear From The ‘Godfather’ of Data Visualisation
You gotta love Hans Rosling, this guy makes data interesting, if not fun!
A more ‘normal’ discussion of data next post.
Customer Journeys Revolving Around Loyalty and Price
The notion of treating the customer journey as an ongoing cycle resonates for me in Why Experience is Key to Customer Loyalty. The cycle puts wheels (oops sorry) on the notion of maintaining and building ongoing loyalty. The more times successfully around the journey cycle imbues a momentum of loyalty and that great human trait of habit can take hold. (By the way, I am not sure what Lego has to do with it.)
I have touched on the journey idea before in Mapping The Customer Journey.
It is interesting the concept of ‘fairness’ that is introduced by Valeria which is put in context in her linked post re: Lufthansa as “transparency”. This reminds me of an article Tim Baker of Baker Richards and The Pricing Institute recommended written by yet another Tim, Tim Hartford The Undercover Economist, Enough Whingeing About Price Gouging. Tim discussed the concept of dynamic pricing which is the darling of many an airline’s Revenue Management strategies. After mooting dynamic pricing as a way of better managing the finite supply of Easter Eggs to less garden watering bans to the need for a lottery to allocate Olympics tickets, one of the comments by a reader raised a very interesting extension of dynamic pricing that highlights the question of fairness. We are used to passengers paying very different prices for an airline seat depending when it was bought in response to demand and the finite supply. Just imagine the extension of dynamic pricing to the equally scarce commodity of storage for hand luggage, yes you can take on that hatbox madam, but it will cost you $100 extra. Whoohoo, that would cause some air rage (well ground rage ) and accusations of price gouging, before they got airborne. BUT it would help solve the problem of luggage locker hogs on planes and provide space for the rest.
Another poster, Joanna mentioned an application of dynamic pricing that was new to me, street parking in San Francisco. At peak times around special events parking charges on meters are raised in response to the increased demand and finite supply. The result is that if you want a car park you can find one … but you will pay a premium for the privilege. That reminds me of the car park outside a tax office somewhere in Scandinavia (I think) that wanted to ensure that the bays were only used for dropping off tax returns, not parking. Rather than higher charges and fines, they used the Nudge: you could park as long as you liked as long as your car lights were left on, otherwise you would be towed away. Guess what problem solved.
Is CRM Really a Wolf in Sheep’s Clothing?
No I don’t necessarily think so, but to keep mixin’ up the metaphors it is not unlike Field of Dreams with the oft-used mantra “build it and they will come“. Just because you build or buy a CRM at great expense and turn it on does not mean that “… they will come”, let alone continue to come again, more often, with increasing loyalty across the various constituent lifecycles.
As many other suggest CRM is but infomation enabled Relationship Marketing that requires equal investments in strategy, people AND technology.
The reason for my initial question is a recent blog post from Lisa Baxter of The Experience Business Customer Relationship Management: Pulling the wool over our own eyes.
Lisa, I suspect you and I are singing from the same hymnsheet (oops analogy three and counting), but I worry about your vilification of CRM at the start or am I getting the wrong end of the stick (oh oh four).
I think an essential element of a CRM in assisting Audience Development is initiating and then building an ongoing relationship, but an important part of that is trust. Trust is based on mutual respect and organisational actions and tactics must align with that as part of a sustainable long term strategy. The tactics that you mentions may be useful components, but as you suggest, on their own with out the coordinated organisational committment that builds trust each and every contact, they are just cheap tricks (and are perceived as such).
CRM like marketing is about managing an exchange of value and that means providing value for both sides, the customer and the vendor. Lisa, the examples you give do seem to be framed to sound “predatory”, but the language does not include the value that such actions may have for the customer (whether prospective, first time, recent or frequent, lapsed or refused and so-on)
Maybe our perspectives are very similar, I agree with you that maybe it is the people and strategy components at fault. A selling orientation is increasingly out of place in this day and age and push marketing is limited by its short term perspective.
I don’t disagree with your ‘platitudes’ that Relationship Marketing may deliver via a CRM: gratitude, helpfulness & empathy, inform, delight, connect and value. In fact, they sound like worthwhile values to aspire to in any initiative.
Yes, retention is the way forward. Retention in all its guises from return attendance to frequency recency and monetary value to upselling, cross-selling and value adds and so-on. But it is a two-way exchange of value that ensures longer term success.
Ticketmaster May Not Be What Arthur C. Clarke Had In Mind?
Interesting post and question raised by Drew McManus in is blog Adaptistration. In this interview from the ABC in 1974, Arthur C. Clarke was certainly prescient, albeit an unabashed enthusiast.
He does describe a more democratic business model and adds a then utopian dream of SOHO or satellite working. Some of it does not seem so far fetched 37 years on?
Like Drew, I am sure that monopolies/duopolies and intermediaries imposing legal barriers that restrain trade were not part of Arthur C. Clarke’s vision.
Wouldn’t you just have loved to pull an iPhone out of your pocket and see the look on his face?!
Does Social Media have a role in CRM?
I don’t know, what do you think?
I was asked by a client the other day whether Social Media should have been documented more in a CRM specification. I said that I had presumed so, but when I tried to define tasks or information requirements that overlapped CRM to Social Media a short paragraph seemed to do the job.
I am not diminishing the value of Social Media. But Social Media is about a conversation and the extension of Customer Relationship Management is not Customer Conversation Management.
Listening is more important than talking, preaching or promoting. The latter does not encourage or enhance engagement, listening does.
So back to CRM. I guess you could record a customer’s FB page, twitter account, Linked in page and so-on. But that is just like recording phone numbers, it does not mean you are or will listen to them or learn from them what interests them, excites them, annoys them, even what they think about you and what you do.
I think the missing link is legwork. Sorry for the mixed analogies, but the legwork of listening is essential, whether automated or manual. Listening to Social Media channels may result in learning and provide the trigger for activity. That trigger may be a complaint, compliment, indication of a prospect or a warning of a defector (maybe lapsing subscriber is less inflamatory). Various Social media channels need to be monitored for triggers and when a trigger is identified, a CRM may then assist in managing the customer incident, communication, activity, induction, loyalty, upgrade, re-attraction and other stages of an ongoing, developing and evolving relationship.
Therein lies the challenge, identifying triggers by the action of listening to the multitude of conversations. A CRM can record Social Media identifiers, integration will eventually enable the monitoring of the social media channels for individuals. However, intelligence will be required to be added to that listening to accurately identify triggers for the proactive (even just reactive) management of the relationship.
Then we get to the issue of privacy … oh boy – let’s leave that for another day.
Does this indicate that people prefer to book at the source? Hotels provide some clues.
I always find it valuable to watch other industries for clues to trends and innovations.
The hotel industry may hold some clues regarding the changing role of intermediaries. Yes, it is a different industry, as is airlines. But that does not mean that there may be enough similarities to provide valuable insight. After all entertainment, hotels and airlines all sell or licence the right for a person to occupy a specific location for a specified time period. Agreed, there may be some differences in where the booking takes you physically and metaphorically. But there is one overriding similarity – it is a perishable inventory. Once the curtain goes up or the planes takes off, that seat is gone forever and has no value.
“room nights booked through hotel websites last year grew consistently in each quarter, growing 6.8 percent in the fourth quarter compared to the same time in 2010.“
Consumers are increasingly buying direct from the hotel, rather than travel agents or online travel agencies.
“Overall in the transient segment, the OTAs (Online Travel Agencies like Expedia and Hotels.com) accounted for 11.4 percent of all hotel rooms booked for the fourth quarter; GDS (Global Disctribution Systems used by Travel agencies) accounted for 19.3 percent; hotel websites (e.g. hilton.com) accounted for 26.5 percent; direct bookings accounted for 25.0 percent; and voice, or 1-800 numbers, accounted for 16.7 percent.“
“Hotel companies have been focusing on educating customers about the value and benefits of booking direct on their websites. These companies have been investing in improving their websites and web value proposition to ensure hotels and customers understand and believe in the value of booking direct with them online.“
That sounds like a good strategy for entertainment as well, the event owner selling directly to consumers without the need for intermediaries. At the very least, the benefits of control over the service ‘promise’ made, the service delivered and the reduction of additional service fees and commissions all makes sense. As suggested, it is important to educate and inform customers and for the not for profit entertainment sector a major, related issue is transparency.
“… consumers are spending an increasing amount of time shopping and comparing hotel options online, often visiting between 8-15 different websites to make an informed decision.” Consumers are getting cleverer at comparing options and they are more and more skilled at accessing AND sharing information on options.
“While a hotel’s website continues to drive more and more bookings for hotels, it is important to recognise that different channels cater to different types of customers, and having an appropriately diversified and optimal mix will drive improved revenue and profit outcomes,”
Different strokes for different folks at different times and different situations.
Selling directly to customers is not the only option, but it looks like it increasingly must be one option and an important one at that.
Do I have a dream job for you @viagogo
This job may now be a bit of a nightmare on the back of the ‘Dispatches’ exposé of The Great Ticket Scandal.
“It’s really ####ing shady!“ Viagogo employee in The Great Ticket Scandal.
“at viagogo you’ll work with fun people who are committed to helping fans gain access to tickets to the best live events in the world!“
One of the required Skills and Attributes is “A sense of humour” 
The Great Ticket Scandal in summary:
Viagogo takes the most flack (not surprisingly they attempted to block the broadcast with an injunction), but Seatwave and others named are not without blame. Promoters LiveNation and SJM are also incriminated for duping fans with a 90/10 split (in their favour) on the markup on tickets withheld from the primary marketplace and allocated to resellers like Viagogo.
1. SECONDARY MARKET COMPETITION WITH PRIMARY MARKET
“Viagogo staff compete directly with real fans to buy tickets from primary ticket sellers, like Ticketmaster, for in demand events as soon as they go on sale. To get around systems put in place to prevent bulk buying of tickets, Viagogo staff use multiple credit cards registered to different addresses.“
2. PRIMARY MARKET SHORTCHANGED
“major promoters allocate hundreds or even thousands of tickets to be sold through their (Viagogo) website at well above the face value. Tickets for recent gigs and tours by Coldplay, Rihanna, Westlife, Take That, and V Festival have been allocated by the promoters in this way.“
The Dispatches episode on the Channel 4 website:
The Great Ticket Scandal (not available online outside the UK)
Outside the UK watch the exposé on YouTube (in 4 parts):
The Great Ticket Scandal (outside the UK)
Various recent articles:
Are Ticketing system providers ever going to facilitate integration with a stand-alone CRM?
Roger spotted this research conducted by Turnkey Intelligence.
For the second time, Turnkey has surveyed 141 sports teams in the: US MLB, MLS, the NBA, the NFL, and the NHL. The findings are summarised in the report The State of Data Systems in Sports & Entertainment.
The study focused on four areas:
- CRM/database management
- Ticketing
- Sponsorship
- Market research
A major issue here and a common refrain in marketing, is the lack of integration between ticketing and CRM, let alone real-time integration.
“The ability to integrate CRM with other systems (ticketing, etc.) is a critical driver of CRM manager satisfaction (or, in many cases, dissatisfaction).“
“Users of both systems identified “uptime”, customization capabilities, and access to an open API as the platform features most important to them/their organizations …Ticketmaster users expressed dissatisfaction with their system’s lack of integration and customization capabilities“
So am I correct that there are no published API’s for Ticketmaster to facilitate integration?
“a consistent theme among respondents was the importance of system integration. Today’s users expect all systems – CRM, ticketing, lead-scoring, merchandise databases, web forms, etc. – to integrate with each other easily and seamlessly, and to enable the clean, simple exportation of data.“
The use of the term ‘exportation’ worries me. Surely these days we are after real two way integration and beyond the ferrying of batches of data between stand-alone systems?
It was interesting to see how well Microsoft CRM rated:
“Microsoft scored relatively well on CRM users’ biggest satisfaction drivers (ease of use, reporting capabilities, and integration with other systems), whereas Archtics performed markedly worse, especially with regard to integration potential.“
Over 70% of respondents use Ticketmaster and Archtics is a Ticketmaster product that they say is an “integrated solution” , yet it appears that users have another opinion. OW!
The article concludes reinforcing the importance of integration:
“Overall system integration, seen as having a direct relationship with increased efficiency and better business, is becoming more important every day. The systems that can continue to adapt to this reality quickly and cost-effectively will gain market share, while more rigid, stand-alone platforms will suffer.“
