Month: July 2013

Freedom vs. Tracking

In The Mobile Customer as Data vs. Customer Data, Chuck Martin in MediaPost‘s Mobile Shop Talk says this:

The world of data tracking for mobile commerce is getting much more precise.

The phone knows where the phone goes, as we all know. And that knowledge can be used to help provide better services to those carrying them.

Any driver using Google Navigation, for example, gets the benefit of other phones being tracked to identify bottlenecks on roads ahead. The next step was for Navigation to automatically re-route your trip to avoid the traffic jam, so the benefit became seamless.

The tracking of phones at retail also is being used in efforts to provide a better shopping experience.

In these cases, the value comes from the data about the phone being tracked, not information about the person.

This is about the use of customers as data rather than data about the customer.

This data about phone movements already is being used at hundreds of stores ranging from small mom-and-pop shops to national chains and shopping centers.

He goes on to talk about Euclid, “a three-year-old California company that likens what it does to Google analytics but for the physical world.” And he explains what they do:

Rather than tracking phones by apps, sign-ins, GPS or cell tower, Euclid installs sensors at stores to capture MAC addresses, which are part of every smartphone.

The company doesn’t capture any information about the person, just the identification of smartphones that are on with Wi-Fi enabled.

The idea is to map shopper traffic and analyze how stores can become more effective. The large volume of aggregated data of phone traffic patterns is what provides the value.

Here is what I put in the comments below (with paragraph breaks and links added):

I am a customer. I am not data. I do not wish to yield personal data, even if anonymized, to anybody other than those with whom I have a fully consenting, non-coercive and respectful relationship.

I do not wish to receive offers as a matter of course, even if machines following me guess those offers might might be relevant — especially since what I am doing most of the time is not shopping.

I also don’t wish to have a “better experience” with advertising inundation, especially if the “experience” is “delivered” to me rather than something I have for myself.

Familiar with Trader Joes? People love them. Know why? They do none of this tracking jive. They just talk, as human beings, to customers. There’s no way to automate that, and they save the overhead of marketing automation as well.

Now think of the “mobile experience” we call driving a car, or riding a bike. Our phones need to be the same: fully ours. Not tracking devices.

I know mine is a voice in the wilderness here, but I’m not alone. It’s not for no reason that the most popular browser add-ons are ad and tracking blockers. That’s the market talking. Marketers need to listen.

In a commencement speech this past May, former presidential speechwriter @JonLovett says this (around 14:30): I believe we may have reached peak bullshit.

He continues: I believe those who push back against the noise and the nonsense, those who refuse to accept the untruths of politics and commerce and entertainment and government, will be rewarded. And that we are at the beginning of something important. He also pushes back on what he calls “a process that is inauthentic.” (Here’s a transcript.)

Here’s what’s real: For whatever reasons, we blew it by not building browsers to be cars and bikes in the first place. Same with smartphones and tablets. We gave wonderful powers to users, but greater powers to companies that would rather track us than respect us, who would rather “deliver”us the “experience” they want us to have than equip us to operate as fully human beings in the world — beings with independence and agency, able to engage in our own ways, and on our own terms.

So, what we’ve got now, nice as it is in many ways, is a feudal system. Not real freedom.

It’s a feudal system run by advertising money, and it is worse than broken: it looks to its masters like it isn’t working well enough. Those masters include lots of good people trying to do the Right Things. But they aren’t listening, because they are too busy talking to each other. The whole marketing ecosystem is an echo chamber now. And we, the users and customers of the world, are not in it, except as magnets for tracking beacons and MAC addresses sold to marketing mills.

There is now a line in the sand. On one side is industrial control of human beings, and systems that “allow” degrees of freedom. On the other side is freedom itself. On that side also lies the truly free marketplace.

Here’s a bet. A lot more money will be made equipping individual human beings with means for enjoying full agency than there is today in “delivering” better sales “experiences” to them through browsers and phones that aren’t really theirs at all.

And here’s betting we’ll get better social effects too: ones that arise from freedom of association in an open world, rather than inside giant mills built for selling us to advertisers.

Which CRM companies are ready to dance with VRM?

Early on at ProjectVRM, we had a community meeting in at Oracle headquarters in Silicon Valley, where some VRM-friendly Oracle employees had kindly found us some space. During the meeting we got a surprise visit from Anthony Lye, then the Senior VP of Oracle CRM and later VP of Cloud Applications there. (He has since moved on.) We had a good conversation, after which one of the employees who hosted us disclosed that Anthony had earlier said “Whoever wins at VRM wins at CRM.” It was encouraging to hear, but I never got the quote confirmed, so I don’t know if he said it or not. But I still believe it’s true, because CRM needs VRM for the same reason that companies need customers: the market is a dance floor and it takes two to tango.

As CRM companies go, I count Oracle as clueful, mostly because they provided extraordinarily helpful grist for the VRM mill in the form of this graphic here…

Oracle Twist

… which puts at the heart of CRM two verbs — BUY and OWN — that are the customer’s and not the company’s.* It also helps us sort VRM tools and services into two main concerns:

  • BUY — Intentcasting
  • OWN — Personal clouds, plus personal data stores, vaults, lockers and services, including privacy protection

Other VRM development categories (e.g. code bases, trust frameworks, infrastructures, consortia) lie underneath those two, or blur across them.

Still, friendly as Oracle seems, I don’t hear them asking to dance with anybody doing VRM yet.

So I’m looking now at this Louis Columbus piece in Forbes, reporting on this Gartner report (sorry, ya gotta pay), saying, among other things, that the CRM market (all B2B) reached at $18 billion/year in 2012, with a 12.5% growth rate over 2011. The top six companies, in order, are:

  1. Salesforce, 14%
  2. SAP, 12.5%
  3. Oracle, 11.1%
  4. Microsoft, 6.3%
  5. IBM, 3.6%
  6. Adobe, 3.1%
  7. Nice Systems, 2.5%
  8. Verint Systems, 2.4%
  9. Amdocs, 2.3%
  10. SAS, 2.2%

“Others” are 39.7%.

Additional details:

Worldwide CRM software spending by subsegment shows Customer Service and Support leading all categories with 36.8% of all spending in 2012 ($6.6B), followed by CRM Sales (26.3%, $4.7B), Marketing (includes marketing automation) (20%, $3.6B) and e-commerce (16.9%, $3B)…

Ten fastest growing CRM vendors as measured in revenue Annual Growth Rate (AGR) in 2012 include Zoho (81.2%), Hybris (78.6%), Teradata (70.4%), Bazaarvoice (56.2%), Marketo (54.3%), Kana (44.2%), Demandware (43.9%), IBM (39.4%), Technology One (37.1%) and Neolane (36%).

Communications, media and IT services were the biggest spenders on CRM in 2012 due to their call center requirements.  Manufacturing including Consumer Packaged Goods (CPG) was second, and banking & securities were third.

Looking at these, I see a few that might like to dance with VRM. Teradata is big on data warehousing (potentially for personal clouds). Bazaarvoice is into “genuine online conversations.” Zoho does collaboration apps. Neolane does “conversational marketing.” TechnologyOne considers customers “stakeholders.”

If anybody from any of those companies (or the bigger CRM companies on the list above) wants to come out here on the floor (or sit at the table), let us know. We’re patient, and we know you’re coming.

* The original source of the graphic, Ray Wang points out in the comments below, is Esteban Kolsky. And, as I say in my comment below Ray’s, I did hear that from my friend Nitin Badjatia at Oracle (and formerly of Right Now), but didn’t remember it when I wrote this piece and the one before it yesterday. Again, it is the verbs — BUY and OWN — that make the image especially useful for VRM, because they are the customer’s. I don’t yet know if those verbs are Esteban’s or Right Now/Oracle’s. Let me know and I’ll give credit where due.

Turning the customer journey into a virtuous cycle

Traditional CRM typically looks at customers this way:CRM cycleIt’s a cycle. One of the reasons we started ProjectVRM is that actual customers are hard to find in the CRM business. We are “leads” for Sales and Marketing, and  “cases” for Support. At the Orders stage we are destinations to which products and invoices are delivered. That’s it.

Oracle CRM, however, has a nice twist on this (and thanks to @nitinbadjatia of Oracle for sharing it*):

Oracle Twist

Here we see the “customer journey” as a path that loops between buying and owning. The blue part — OWN, on the right — is literally the customer’s own space. As the text on the OWN loop shows, the company’s job in that space is to support and serve. As we see here…

… the place where that happens is typically the call center.

Now let’s look at how this journey looks in our lives, in terms of how much of the time we own stuff and how much of the time we shop for it. The real ratio is closer to this:

kolskycyce1

And that’s not an exaggeration, since we own everything 100% of the time and shop only a small % of the time.

Now let’s pause to consider the curb weight of “solutions” in the world of interactivity between company and customer today. In the BUY loop of the customer journey, we have:

  1. All of advertising, which Magna Global expects to pass $.5 trillion this year
  2. All of CRM, which Gartner pegs at $18b)
  3. All the rest of marketing, which has too many segments for me to bother looking up

So, in the OWN loop we have a $0 trillion greenfield. This is where VRM started, with personal data lockers, stores, vaults, services and (just in the last few months) clouds.

Now look around your home. What you see is mostly stuff you own. Meaning you’ve bought it already. How about basing your relationships with companies on those things, rather than over on the BUY side of the loop, where you are forced to stand under a Niagara of advertising and sales-pitching, by companies and agencies trying to “target” and “acquire” you. From marketing’s traditional point of view (the headwaters of that Niagara), the OWN loop is where they can “manage” you, “control” you, “own” you and “lock” you in. To see one way this works, check your wallets, purses, glove compartments and kitchen junk drawers for “loyalty” cards that have little if anything to do with genuine loyalty.

But what if the OWN loop actually belonged to the customer, and not to the CRM system? What if you had VRM going there, working together with CRM, at any number of touch points, including the call center?

This is more than a simple dream. One of the coolest things to happen in the VRM development world is this insight, based on actual technology: everything you own can have its own cloud, and each can live inside your personal cloud. Your stuff doesn’t need to have embedded smarts. You can put your things’ smarts inside clouds of their own. Manufacturers can also include clouds along with everything they sell. Inside that cloud can go all the touchpoint contact data required for a genuine relationship, plus useful extras such as service manuals and shortcuts to product updates.

This means the product itself becomes the platform for relationship between the customer and everybody on the sell side, from manufacturer to distributor to retailer to service company. As I explained in this HBR post, that platform — the product’s cloud — is the level table where all those parties sit, at the grace of the customer. Because it’s the customer’s space.

One tablecloth for that platform is the TalkTag. It’s a simple QR code, like the one on the right. The pioneering company here is Kynetx, through its SquareTag service. It’s a simple way to give anything you have a cloud of its own. Scanning a TalkTag is one way to visit a thing’s cloud, which is also a programmable space. If your thing is lost, you can program it to provide contact information through somebody’s smartphone when they scan it. (Which I have done, and it works.)

You can also program it to, say, notify the call center when you scan it. For example, I want the TalkTag I just put on my cable modem to notify Time Warner Cable when I scan it. If Time Warner Cable’s CRM system is listening (which should be easy enough to make happen), it can send back a message to my phone, telling me there is an outage in my neighborhood. Or, in the event that there isn’t an outage, the “I’ve been scanned” message from me to Time Warner Cable can jump past stages in the company’s IVR (Interactive Voice Response) system and get me straight to the right person or automated response. That might be, “You need to download new firmware,” or “We have three new service tiers you might want to know about,” or “We see you haven’t paid your bill.”

I have shared this kind of scenario with two call center companies recently, and they liked it a lot. In fact they like the whole idea of VRM systems on the customers’ side that can lighten the burdens of relationship (and open opportunities) for both sides.

The customer journey — his or her experiences of owning and buying — will include more than just interacting with call centers. We use the things we own in countless ways that might be useful to share with others, including the companies that make and sell stuff — and not just through “social” systems like Facebook and Twitter, over which we have little or no control.

We should also be able to integrate data from products that don’t relate but should. In the Quantified Self world, for example, there is a standing need to synthesize data from many devices and databases. This need  cannot be solved by asking Nike, Fitbit, Withings, RunKeeper and the rest of them to all make their data un-silo’d and combine-able. And doing it in “social media,” whose only business is advertising at us, won’t work either. We need means of our own.

In the VRM world we’ve been saying the user needs to be the point of integration for his or her own data since Joe Andrieu first expressed that insight in 2007. Now, with personal clouds, in 2013, it’s starting to look possible. In fact the personal cloud, and the whole OWN loop, can also be a platform for intentcasting toward the BUY side.

The OWN side is also where all the privacy technology also sits, chiefly because it is distributed. It is here also that we hold the terms, preferences and policies we express when dealing with companies sitting across the tables set between us.

An interesting case that lies between buying and owning is relationships with service organizations, such as utilities. What we own here is own side of an ongoing relationship. Equipment of our own may be in there, or may not be. Either way, the use of a service — in our homes, cars and pockets — is what we at least control, even if we don’t own it.

So clearly we need a common platform for personal clouds, and for the things we put in them. That platform needs to be small, lightweight, distributed and open source. Right now I see one candidate for that: CloudOS, which is the brainbaby of Phil Windley. (Here’s a search for CloudOS and Windley. Lots of stuff there.) If you’ve got some other hacks, point them out in the comments below.

If we look at the customer experience from the company’s side again, this graphic from Joe Pine and Jim Gilmore does a nice job of framing the possibilities:

Across the table set in a personal cloud, customers can feed back good intelligence to every one of the loops in that graphic. And, because that data arrives directly and voluntarily, it has far higher quality than inferential data gathered by marketing’s many surveillance methods.

It also re-frames relationship and loyalty, as real things rather than as words marketing recites inside its own echo chambers. It will reduce marketing’s urge to manipulate, and advertising’s urge to personalize in the absence of conscious and voluntary signals welcoming it. The customer journey will thus turn into a virtuous cycle rather than the arduous one it is today.

It can also create a demand chain that can work in tandem with the supply chain, providing far better feedback at every stage. I could go on, but I want to get this up before the latest in the series of Important Calls that punctuate my life. (And they are all Good Things, trust me.)

Bonus link.

* In the comments below the post that follows this one, Ray Wang points to Esteban Kolsky as the original author of this graphic. As I say in my comment below Ray’s, I did hear that from Nitin Badjatia (of Oracle and formerly of Right Now), but I didn’t remember it when I wrote both posts in a hurry. Again, it is the verbs — BUY and OWN — that make the image especially useful for VRM, because they are the customer’s. I don’t yet know if those verbs are Esteban’s or Right Now/Oracle’s. Let me know and I’ll give credit where due.

Save

Loose links

Midata Innovation Lab Launches. By Alan Mitchell at  Ctrl-Shift. Pull-quotage:

The Lab is a world first in three ways.

  • It’s the first time individuals will be empowered as the point of integration of data about their own lives. Financial transactions, energy consumption data, phone data and lots of other data sets including previously uncollected data such as individuals’ plans, preferences and intentions will be gathered and orchestrated by individuals, around those individuals.
  • It’s the first time that some of the infrastructure individuals can use to protect, manage and control the sharing of this data will be tested in anger: personal data stores.
  • And, for the first time, organisations will be able to play with the data, on a permissioned and controlled basis – data that gives them a genuine single customer view, a view that spans many aspects of the individual’s life, not just relating to their dealings with that organisation – to innovate new services.

Follow the Midata project at @midataBIS, and visit Midatalab.org.uk.

Also by Alan and Ctrl-Shift: How to value personal data.

Personal Cloud London Meet-up: Thursday, July 11, 2013 from 6:00 PM to 9:00 PM (BST). Hosted by Iain Henderson and Peter Stepman.

Personal Data and CloudOS, by Phil Windley. Pull-quote: “You could imagine things like openPDS or personal.com serving as a foundational store for the CloudOS PDS without applications needing to understand or know their specific APIs. I recently demonstrated how Dropbox can be linked into CloudOS. The PDS could provide a consistent API for some or all of these.” Also by Phil: Facebook for my stuff.

Start controlling your data, by Jay Deragon. Pull-quotage:

…our medical records are stuck in silos and difficult for different providers to access. Yet patients do have rights to their records and because of technology you can collect and store your records (medications, health history, treating physicians, hospitals, recent lab reports etc. etc. on a wristband or a necklace in a tiny USB Medical Alert Drive. Think about downloading this kind of data to a cloud and having it accessible through a device you wear.

There are other tools in the marketplace for users to begin to gather their own data but it is still far from what should be made available if only the suppliers understood the value they could create by unleashing data from their silos. Anytime you create more value for buyers and value that saves them time, money and enhances their life you are do so by enabling them to do it with their own data.

That is the opposite of using the buyer’s data to create more value for limited selfish gains and calling it competitive advantage.  By empowering the buyer with their own data you are in fact creating more value for your business by expanding your marketplace.

That is called creating intangible value. Of course that is something you can’t see but know it is real and must believe it is so in order to see and make it tangible.

Lunch with Alibaba: If C2B Replaces B2C, Then What Happens to B2B?. By Michael Cole in Mingtiandi. Pull-quote: “According to Zeng’s vision, e-commerce in China, and around the world, is moving toward a Dell-style model, which he terms C2B because it is driven by the consumer, wherein the buyer makes the decisions about what is on offer, and companies will compete to supply these products in the fastest time and at the lowest price.”

Centrify CEO on Dropbox, KNOX, Microsoft, and the future of identity, by Matt Rosoff in CiteWorld. Pull-quote: “Soon, we’ll have to add another ‘BYO’ to the list — BYO Identity.”

Exchange Rate: Want someone’s data? Then what are you going to offer them in return? Colin Strong examines the quid pro quos of the Intention Economy. By Colin Strong in Research. Pull-quote: “Will the emerging personal data ecosystem make people less likely to simply give away their information to research firms?”

CVS App Brings Home Hard-To-Get CRM Data, by Evan Schuman in StoreforntBacktalk. @tdotrob calls it “an article straight from The Twilight Zone “.

What can people do with data that companies can’t? By Cheryl Snapp Connor in Forbes. Pull-quote: “Think about how much better we could be as customers if we — and companies we hire to help us — had access to all the data collected from us. We could look not only at how we spend our money, but at how we can spend it better. We could get a lot smarter, and so would the companies with which we have genuine rather than coerced relationships. And we could do betterintentcasting: that is, advertising exactly what we want, to the open marketplace, favoring companies we know will respect us. This would eliminate a huge amount of guesswork on the marketing side. I mean, who better to qualify us as a lead than each of us ourselves?”

 

VRM videos

First Retail

Here is a collection of videos about VRM and related subjects, in roughly reverse chronological order.

First, a series of well-edited excerpts from Disrupting Retail 2013, which was hosted by First Retail in New York City. Here’s an outline:

  1. What is Disrupting Retail?
  2. Amazon’s Product Recommender Systems
  3. Big Data Enabled Intention Management and the Customer Experience
  4. Moving from Personal Data to Individual Intention

The sessions were led by Gam Dias (@gammydodger) of First Retail, with Andreas Weigend (@weigend) and myself serving as sounding boards for the collection of forward-looking retailers gathered around the table. (That’s the two of us in the shot above.) Lots of excellent grist for retailers, VRooMers and everybody else who cares about the future of business (which, let’s face it, wouldn’t be business without retail). Bonus link.

Second, Phil Windley on building trillion-node networks. Within those might be your network, with your own Internet of Things in your own cloud. Bonus video: The cloud needs an operating system.

Third, from the State of the Net (#SOTN) conference in Trieste last month, four videos:

There were a number of others as well, which I’ll put up when I find them (or they find me).

Fourth, some others from the last year and more:

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