Category: Problems (page 1 of 4)

Let’s give some @VRM help to the @CFPB

cfpbThe Consumer Financial Protection Bureau (@CFPB) is looking to help you help them—plus everybody else who uses financial services.

They explain:

Many new financial innovations rely on people choosing to give a company access to their digital financial records held by another company. If you’re using these kinds of services, we’d love to hear from you…

Make your voice heard. Share your comments on Facebook or Twitter . If you want to give us more details, you can share your story with us through our website. To see and respond to the full range of questions we’re interested in learning about, visit our formal Request for Information

For example,

Services that rely on consumers granting access to their financial records include:

  • Budgeting analysis and advice:  Some tools let people set budgets and analyze their spending activity.  The tools organize your purchases across multiple accounts into categories like food, health care, and entertainment so you can see trends. Some services send a text or email notification when a spending category is close to being over-budget.

  • Product recommendations: Some tools may make recommendations for new financial products based on your financial history. For example, if your records show that you have a lot of ATM fees, a tool might recommend other checking accounts with lower or no ATM fees.

  • Account verification: Many companies need you to verify your identity and bank account information. Access to your financial records can speed that process.

  • Loan applications: Some lenders may access your financial records to confirm your income and other information on your loan application.

  • Automatic or motivational savings: Some companies analyze your records to provide you with automatic savings programs and messages to keep you motivated to save.

  • Bill payment: Some services may collect your bills and help you organize your payments in a timely manner.

  • Fraud and identity theft protection: Some services analyze your records across various accounts to alert you about potentially fraudulent transactions.

  • Investment management: Some services use your account records to help you manage your investments.

A little more about the CFPB:

Our job is to put consumers first and help them take more control over their financial lives. We’re the one federal agency with the sole mission of protecting consumers in the financial marketplace. We want to make sure that consumer financial products and services are helping people rather than harming them.

A hat tip to @GeneKoo (an old Berkman Klein colleague) at the CFPB,  who sees our work with ProjectVRM as especially relevant to what they’re doing.  Of course, we agree. So let’s help them help us, and everybody else in the process.

Some additional links:

If it weren’t for retargeting, we might not have ad blocking

jblflip2This is a shopping vs. advertising story that starts with the JBP Flip 2 portable speaker I bought last year, when Radio Shack was going bankrupt and unloading gear in “Everything Must Go!” sales. I got it half-off for $50, choosing it over competing units on the same half-bare shelves, mostly because of the JBL name, which I’ve respected for decades. Before that I’d never even listened to one.

The battery life wasn’t great, but the sound it produced was much better than anything my laptop, phone or tablet put out. It was also small, about the size of a  beer can, so I could easily take it with me on the road. Which I did. A lot.

Alas, like too many other small devices, the Flip 2’s power jack was USB micro-b. That’s the tiny flat one that all but requires a magnifying glass to see which side is up, and tends to damage the socket if you don’t slip it in exactly right, or if you force it somehow. While micro-b jacks are all design-flawed that way, the one in my Flip 2 was so awful that it took great concentration to make sure the plug jacked in without buggering the socket.

Which happened anyway. One day, at an AirBnB in Maine, the Flip 2’s USB socket finally failed. The charger cable would fit into the socket, but the socket was loose, and the speaker wouldn’t take a charge. After efforts at resuscitation failed, I declared the Flip 2 dead.

But I was still open to buying another one. So, to replace it, I did what most of us do: I went to Amazon. Naturally, there were plenty of choices, including JBL Flip 2s and newer Flip 3s, at attractive prices. But Consumer Reports told me the best of the bunch was the Bose Soundlink Color, for $116.

So I bought a white Bose, because my wife liked that better than the red JBL.

The Bose filled Consumer Reports’ promise. While it isn’t stereo, it sounds much better than the JBL (voice quality and bass notes are remarkable). It’s also about the same size (though with a boxy rather than a cylindrical shape), has better battery life, and a better user interface. I hate that it  charges through a micro-b jack, but at least this one is easier to plug and unplug than the Flip 2 had been. So that story had a happy beginning, at least for me and Bose.

It was not happy, however, for me and Amazon.

Remember when Amazon product pages were no longer than they needed to be? Those days are gone. Now pages for every product seem to get longer and longer, and can take forever to load. Worse, Amazon’s index page is now encrusted with promotional jive. Seems like nearly everything “above the fold” (before you scroll down) is now a promo for Amazon Fashion, the latest Kindle, Amazon Prime, or the company credit card—plus rows of stuff “inspired by your shopping trends” and “related to items you’ve viewed.”

But at least that stuff risks being useful. What happens when you leave the site, however, isn’t. That’s because, unless you’re running an ad blocker or tracking protection, Amazon ads for stuff you just viewed, or put in your shopping cart, follow you from one ad-supported site to another, barking at you like a crazed dog. For example:

amazon1

I lost count of how many times, and in how many places, I saw this Amazon ad, or one like it, for one speaker, the other, or both, after I finished shopping and put the Bose speaker in my cart.

Why would Amazon advertise something at me that I’ve already bought, along with a competing product I obviously chose not to buy? Why would Amazon think it’s okay to follow me around when I’m not in their store? And why would they think that kind of harassment is required, or even okay, especially when the target has been a devoted customer for more than two decades, and sure to return and buy all kinds of stuff anyway?  Jeez, they have my business!

And why would they go out of their way to appear both stupid and robotic?

The answers, whatever they are, are sure to be both fully rationalized and psychotic, meaning disconnected from reality, which is the marketplace where real customers live, and get pissed off.

And Amazon is hardly alone at this. In fact the practice is so common that it became an Onion story in October 2018: Woman Stalked Across 8 Websites By Obsessed Shoe Advertisement.

The ad industry’s calls this kind of stalking “retargeting,” and it is the most obvious evidence that we are being tracked on the Net. The manners behind this are completely at odds with those in the physical world, where no store would place a tracking beacon on your body and use it to follow you everywhere you go after you leave. But doing exactly that is pro forma for marketing in the digital world.

When you click on that little triangular symbol in the corner of the ad, you can see how the “interactive” wing of the advertising business, generally called adtech, rationalizes surveillance:

adchoices1The program is called AdChoices, and it’s a creation of those entities in the lower right corner. The delusional conceits behind AdChoices are many:

  1. That Ad Choices is “yours.” It’s not. It’s theirs.
  2. That “right ads” exist, and that we want them to find us, at all times.
  3. That making the choices they provide actually gives us control of advertising online.
  4. That our personal agency—the power to act with full effect in the world—is a grace of marketers, and not of our own independent selves.

Not long after I did that little bit of shopping on Amazon, I also did a friend the favor of looking for clothes washers, since the one in her basement crapped out and she’s one of those few people who don’t use the Internet and never will. Again I consulted Consumer Reports, which recommended a certain LG washer in my friend’s price range. I looked for it on the Web and found the best price was at Home Depot. So I told her about it, and that was that.

For me that should have been the end of it. But it wasn’t, because now I was being followed by Home Depot ads for the same LG washer and other products I wasn’t going to buy, from Home Depot or anybody else. Here’s one:

homedepot1

Needless to say, this didn’t endear me to Home Depot, to LG, or to any of the sites where I got hit with these ads.

All these parties failed not only in their mission to sell me something, but to enhance their own brands. Instead they subtracted value for everybody in the supply chain of unwelcome tracking and unwanted message targeting. They also explain (as Don Marti does here) why ad blocking has grown exactly in pace with growth in retargeting.

I subjected myself to all this by experimentally turning off tracking protection and ad blockers on one of my browsers, so I could see how the commercial Web works for the shrinking percentage of people who don’t protect themselves from this kind of abuse. I do a lot of that, as part of my work with ProjectVRM. I also experiment a lot with different kinds of tracking protection and ad blocking, because the developers of those tools are encouraged by that same work here.

For those new to the project, VRM stands for Vendor Relationship Management, the customer-side counterpart of Customer Relationship Management, the many-$billion business by which companies manage their dealings with customers—or try to.

Our purpose with ProjectVRM is to encourage development of tools that give us both independence from the companies we engage with, and better ways of engaging than CRM alone provides: ways of engaging that we own, and are under our control. And relate to the CRM systems of the world as well. Our goal is VRM+CRM, not VRM vs. CRM.

Ad blocking and tracking protection are today at the leading edge of VRM development, because they are popular and give us independence. Engagement, however, isn’t here yet—at least not at the same level of popularity. And it probably won’t get here until we finish curing business of the brain cancer that adtech has become.

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Humanizing the Great Ad Machine

This is a comment I couldn’t publish under this post before my laptop died. (Fortunately I sent it to my wife first, so I’m posting it here, from her machine.)

OMMA’s theme is “Humanizing the Great Ad Machine”  Good one. Unfortunately, the agenda and speaker list suggest that industry players are the only ones in a position to do that. They aren’t..

The human targets of the Great Ad Machine are actually taking the lead—by breaking it.

Starting with ad blocking and tracking protection.

I see no evidence of respect for that fact, however, in the posts and tweets (at #MPOMMA) coming out of the conference so far. Maybe we can change that.

Let’s start by answering the question raised by the headline in Ad Blocking and DVRs: How Similar? I can speak as an operator of both technologies, and as a veteran marketer as well. So look at the rest of this post as the speech I’d give if I was there at OMMA…

Ad blocking and DVRs have four main things in common.

1) They are instruments of personal independence;

2) They answer demand for avoiding advertising. That demand exists because most advertising wastes time and space in people’s lives, and people value those two things more than whatever good advertising does for the “content” economy;

3) Advertising agents fail to grok this message; which is why—

4) Advertising agents and the “interactive” ad industry cry foul and blame the messengers (including the makers of ad blockers and other forms of tracking protection), rather than listening to, or respecting, what the market tells them, loudly and clearly.

Wash, rinse and repeat.

The first wash was VCRs. Those got rinsed out by digital TV. The second wash was DVRs. Those are being rinsed out right now by the Internet. The third wash is ad blocking.

The next rinse will happen after ad blocking succeeds as chemo for the cancer of ads that millions on the receiving end don’t want.

The next wash will be companies spending their marketing money on listening for better signals of demand from the marketplace, and better ways of servicing existing customers after the sale.

This can easily happen because damn near everybody is on the Net now, or headed there. Not trapped on TV or any other closed, one-way, top-down, industry-controlled distribution system.

On the Net, everybody has a platform of their own. There is no limit to what can be built on that platform, including much better instruments for expressing demand, and much better control over private personal spaces and the ways personal data are used by others. Ad blocking is just the first step in that direction.

The adtech industry (including dependent publishers) can come up with all the “solutions” they want to the ad blocking “problem.” All will fail, because ad blocking is actually a solution the market—hundreds of millions of real human beings—demands. Every one of adtech’s “solutions” is a losing game of whack-a-mole where the ones with hammers bang their own heads.

For help looking past that game, consider these:

1) The Interent as we know it is 21 years old. Commercial activity on it has only been possible since April 30, 1995. The history of marketing on the Net since then has been a series of formative moments and provisional systems, not a permanent state. In other words, marketing on the Net isn’t turtles all the way down, it’s scaffolding. Facebook, Google and the rest of the online advertising world exist by the grace of provisional models that have been working for only a few years, and can easily collapse if something better comes along. Which it will. Inevitably. Because…

2) When customers can signal demand better than adtech can manipulate it or guess at it, adtech will collapse like a bad soufflé.

3) Plain old brand advertising, which has always been aimed at populations rather than people, isn’t based on surveillance, and has great brand-building value, will carry on, free of adtech, doing what only it can do. (See the Ad Contrarian for more on that.)

In the long run (which may be short) winners will be customers and the companies that serve them  respectfully. Not more clueless and manipulative surveillance-based marketing schemes.

Winning companies will respect customers’ independence and intentions. Among those intentions will be terms that specify what can be done with shared personal data. Those terms will be supplied primarily by customers, and companies will agree to those terms because they will be friendly, work well for both sides, and easily automated.

Having standard ways for signaling demand and controlling use of personal data will give customers the same kind of scale companies have always had across many customers. On the Net, scale can work in both directions.

Companies that continue to rationalize spying on and abusing people, at high costs to everybody other than those still making hay while the sun shines, will lose. The hay-makers will also lose as soon as the light of personal tolerance for abuse goes out, which will come when ad blocking and tracking protection together approach ubiquity.

But the hay-makers can still win if they start listening to high-value signals coming from customers. It won’t be hard, and it will pay off.

The market is people, folks. Everybody with a computer or a smart mobile device is on the Net now. They are no longer captive “consumers” at the far ends of one-way plumbing systems for “content.” The Net was designed in the first place for everybody, not just for marketers who build scaffolding atop customer dislike and mistake it for solid ground.

It should also help to remember that the only business calling companies “advertisers” is advertising. No company looks in the mirror and sees an advertiser there. That’s because no company goes into business just so they can advertise. They see a car maker, a shoe store, a bank, a brewer, or a grocer. Advertising is just overhead for them. I learned this lesson the hard way as a partner for 20 years in a very successful ad agency. Even if our clients loved us, they could cut their ad budget to nothing in an instant, or on a whim.

There’s a new world of marketing waiting to happen out there in the wide-open customer-driven marketplace. But it won’t grow out of today’s Great Ad Machine. It’ll grow out of new tech built on the customers’ side, with ad blocking and tracking protection as the first examples. Maybe some of that tech is visible at OMMA. Or at least maybe there’s an open door to it. If either is there, let’s see it. Hashtag: #VRM. (For more on that, see https://en.wikipedia.org/wiki/Vendor_relationship_management.)

If not, you can still find developers here .

The Castle Doctrine

home castle

The Castle doctrine has been around a long time. Cicero (106–43 BCE) wrote, “What more sacred, what more strongly guarded by every holy feeling, than a man’s own home?” In Book 4, Chapter 16 of his Commentaries on the Laws of England, William Blackstone (1723–1780 CE) added, “And the law of England has so particular and tender a regard to the immunity of a man’s house, that it stiles it his castle, and will never suffer it to be violated with impunity: agreeing herein with the sentiments of ancient Rome…”

Since you’re reading this online, let me ask, what’s your house here? What sacred space do you strongly guard, and never suffer to be violated with impunity?

At the very least, it should be your browser.

But, unless you’re running tracking protection in the browser you’re using right now, companies you’ve never heard of (and some you have) are watching you read this, and eager to use or sell personal data about you, so you can be delivered the human behavior hack called “interest based advertising.”

Shoshana Zuboff, of Harvard Business School, has a term for this:surveillance capitalism, defined as “a wholly new subspecies of capitalism in which profits derive from the unilateral surveillance and modification of human behavior.”

Almost across the board, advertising-supported publishers have handed their business over to adtech, the surveillance-based (they call it “interactive”) wing of advertising. Adtech doesn’t see your browser as a sacred personal space, but instead as a shopping cart with ad space that you push around from site to site.

So here is a helpful fact: we don’t go anywhere when we use our browsers. Our browser homes are in our computers, laptops and mobile devices. When we “visit” a web page or site with our browsers, we actually just request its contents (using the hypertext protocol called http or https).

In no case do we consciously ask to be spied on, or abused by content we didn’t ask for or expect. That’s why we have every right to field-strip out anything we don’t want when it arrives at our browsers’ doors.

The castle doctrine is what hundreds of millions of us practice when we use tracking protection and ad blockers. It is what called the new Brave browser into the marketplace. It’s why Mozilla has been cranking up privacy protections with every new version of Firefox . It’s why Apple’s new content blocking feature treats adtech the way chemo treats cancer. It’s why respectful publishers will comply with CHEDDAR. It’s why Customer Commons is becoming the place to choose No Trespassing signs potential intruders will obey. And it’s why #NoStalking is a good deal for publishers.

The job of every entity I named in the last paragraph — and every other one in a position to improve personal privacy online — is to bring as much respect to the castle doctrine in the virtual world as we’ve had in the physical one for more than two thousand years.

It should help to remember that it’s still early. We’ve only had commercial activity on the Internet since April 1995. But we’ve also waited long enough. Let’s finish making our homes online the safe places they should have been in the first place.

 

A reading list for online publishers

I’ll be talking to a pile of publishers today at a Meet the Blockers thing hosted by DCN in New York. Here are a few of the many links I’ve accumulated as a background for the conversation I hope ensues. (These are in addition to my own Adblock War Series, now 53 posts long.)

I’ll report more on my exact advice later.

 

Helping publishers and advertisers move past the ad blockade

reader-publisher-advertiser

Those are the three market conversations happening in the digital publishing world. Let’s look into what they’re saying, and then what more they can say that’s not being said yet.

A: Publisher-Reader

Publishing has mostly been a push medium from the start. One has always been able to write back to The Editor, and in the digital world one can tweet and post in other places, including one’s own blog. But the flow and power asymmetry is still push-dominated, and the conversation remains mostly a one-way thing, centered on editorial content. (There is also far more blocking of ads than talk about them.)

An important distinction to make here is between subscription-based pubs and free ones. The business model of subscription-supported pubs is (or at least includes) B2C: business-to-customer. The business model of free pubs is B2B: business-to-business. In the free pub case, the consumer (who is not a customer, because she isn’t paying anything) is the product sold to the pub’s customer, the advertiser.

Publishers with paying subscribers have a greater stake — and therefore interest — in opening up conversation with customers. I believe they are also less interested in fighting with customers blocking ads than are the free pubs. (It would be interesting to see research on that.)

B. Publisher-Advertiser

In the offline world, this was an uncomplicated thing. Advertisers or their agencies placed ads in publications, and paid directly for it. In the online world, ads come to publishers through a tangle of intermediaries:

displaylumascape:

Thus publishers may have no idea at any given time what ads get placed in front of what readers, or for what reason. In service to this same complex system, they also serve up far more than the pages of editorial content that attracts readers to the site. Sight unseen, they plant tracking cookies and beacons in readers’ browsers, to follow those readers around and report their doings back to third parties that help advertisers aim ads back at those readers, either on the publisher’s site or elsewhere.

We could explore the four-dimensional shell game that comprises this system, but for our purposes here let’s just say it’s a B2B conversation. That it’s a big one now doesn’t mean it has to be the only one. Many others are possible.

C. Reader-Advertiser

In traditional offline advertising, there was little if any conversation between readers and advertisers, because the main purpose of advertising was to increase awareness. (Or, as Don Marti puts it, to send an economic signal.) If there was a call to action, it usually wasn’t to do something that involved the publisher.

A lot of online advertising is still that way. But much of it is direct response advertising. This kind of advertising (as I explain in Separating Advertising’s Wheat and Chaff) is descended not from Madison Avenue, but from direct mail (aka junk mail). And (as I explain in Debugging adtech’s assumptions) it’s hard to tell the difference.

Today readers are speaking to advertisers a number of ways:

  1. Responding to ads with a click or some other gesture. (This tens to happen at percentages to the right of the decimal point.)
  2. Talking back, one way or another, over social media or their own blogs.
  3. Blocking ads, and the tracking that aims them.

Lately the rate of ad and tracking blocking by readers has gone so high that publishers and advertisers have been freaking out. This is characterized as a “war” between ad-blocking readers and publishers. At the individual level it’s just prophylaxis. At the group level it’s a boycott. Both ways it sends a message to both publishers and advertisers that much of advertising and the methods used for aiming it are not welcome.

This does not mean, however, that making those ads or their methods more welcome is the job only of advertisers and publishers. Nor does it mean that the interactions between all three parties need to be confined to the ones we have now. We’re on the Internet here.

The Internet as we know it today is only twenty years old: dating from the end of the NSFnet (on 30 April 1995) and the opening of the whole Internet to commercial activity. There are sand dunes older than Facebook, Twitter — even Google — and more durable as well. There is no reason to confine the scope of our invention to incremental adaptations of what we have. So let’s get creative here, and start by looking at, then past, the immediate crisis.

People started blocking ads for two reasons: 1) too many got icky (see the Acceptable Ads Manifesto for a list of unwanted types); 2) unwelcome tracking. Both arise from the publisher-advertiser conversation, which to the reader (aka consumer) looks like this:

rotated

Thus the non-conversation between readers blocking ads and both publishers and advertisers (A and C) looks like this:

stophandsignal

So far.

Readers also have an interest in the persistence of the publishers they read. And they have an interest in at least some advertisers’ goods and services, or the marketplace wouldn’t exist.

Thus A and C are conversational frontiers — while B is a mess in desperate need of cleaning up.

VRM is about A and C, and it can help with B. It also goes beyond conversation to include the two other activities that comprise markets: transaction and relationship. You might visualize it as this:

Handshake_icon_GREEN-BLUE.svg

From Turning the customer journey into a virtuous 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, “cases” in Support, “leads” again in Marketing. 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 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

In the OWN loop we have a $0trillion 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?

So here are two questions for the VRM community:

  1. What are we already doing in those areas that can help move forward in A and B?
  2. What can we do that isn’t being done now?

Among things we’re already doing are:

  • Maintaining personal clouds (aka vaults, lockers, personal information management systems, et.al.) from which data we control can be shared on a permitted basis with publishers and companies that want to sell us stuff, or with which we already enjoy relationships.
  • Employing intelligent personal assistants of our own.
  • Intentcasting, in which we advertise our intentions to buy (or seek services of some kind).
  • Terms individuals can assert, to start basing interactions and relationships on equal power, rather than the defaulted one-way take-it-or-leave-it non-agreements we have today.

The main challenge for publishers and advertisers is to look outside the box in which their B2B conversation happens — and the threats to that box they see in ad blocking — and to start looking at new ways of interacting with readers. And look for leadership coming from tool and service providers representing those readers. (For example, Mozilla.)

The main challenge for VRM developers is to provide more of those tools and services.

Bonus links for starters (again, I’ll add more):

Of vaults and honey pots

Personal Blackbox (pbb.me) is a new #VRM company — or so I gather, based on what they say they offer to users: “CONTROL YOUR DATA & UNLOCK ITS VALUE.”

So you’ll find them listed now on our developers list.

Here is the rest of the text on their index page:

pbbWheel

PBB is a technology platform that gives you control of the data you produce every day.

PBB lets you gain insights into your own behaviors, and make money when you choose to give companies access to your data. The result? A new and meaningful relationship between you and your brands.

At PBB, we believe people have a right to own their data and unlock its benefits without loss of privacy, control and value. That’s why we created the Personal Data Independence Trust. Take a look and learn more about how you can own your data and its benefits.

In the meantime we are hard at work to provide you a service and a company that will make a difference. Join us to participate and we will keep you posted when we are ready to launch.

That graphic, and what seems to be said between the lines, tells me Personal Blackbox’s customers are marketers, not users.  And, as we so often hear, “If the service is free, you’re the product being sold.”

But, between the last paragraph and this one, I ran into Patrick Deegan, the Chief Technology Officer of Personal Blackbox, at the PDNYC meetup. When I asked him if the company’s customers are marketers, he said no — and that PBB (as it’s known) is doing something much different that’s not fully explained by the graphic and text above, and is tied with the Personal Data Independence Trust, about which not much is said at the link to it. (At least not yet. Keep checking back.) So I’ll withhold judgement about it until I know more, and instead pivot to the subject of VRM business models, which that graphic brings up for me.

I see two broad ones, which I’ll call vault and honey pot.

The vault model gives the individual full control over their personal data and what’s done with it, which could be anything, for any purpose. That data primarily has use value rather than sale value.

The honey pot model also gives the individual control over their personal data, but mostly toward providing a way to derive sale value for that data (or something similar, such as bargains and offers from marketers).

The context for the vault model is the individual’s whole life, and selective sharing of data with others.

The context for the honey pot model is the marketplace for qualified leads.

The vault model goes after the whole world of individuals. Being customers, or consumers, is just one of the many roles we play in that world. Who we are and what we do — embodied in our data — is infinitely larger that what’s valuable to marketers. But there’s not much money in that yet.

But there is in the honey pot model, at least for now. Simply put, the path to market success is a lot faster in the short run if you find new ways to help sellers sell.  $zillions are being spent on that, all the time. (Just look at the advertising coming along with that last link, to a search).

FWIW, I think the heart of VRM is in the vault model. But we have a big tent here, and many paths to explore. (And many metaphors to mix.)

Preparing for the 3D/VR future

Look in the direction that meerkatMeerkat and periscopeappPeriscope both point.

If you’ve witnessed the output of either, several things become clear about their evolutionary path:

  1. Stereo sound is coming. So is binaural sound, with its you-are-there qualities.
  2. 3D will come too, of course, especially as mobile devices start to include two microphones and two cameras.
  3. The end state of both those developments is VR, or virtual reality. At least on the receiving end.

The production end is a different animal. Or herd of animals, eventually. Expect professional gear from all the usual sources, showing up at CES starting next year and on store shelves shortly thereafter. Walking around like a dork holding a mobile in front of you will look in 2018 like holding a dial-phone handset to your head looks today.

I expect the most handy way to produce 3D and VR streams will be with  glasses like these:

srlzglasses

(That’s my placeholder design, which is in the public domain. That’s so it has no IP drag, other than whatever submarine patents already exist, and I am sure there are some.)

Now pause to dig @ctrlzee‘s Fast Company report on Facebook’s 10-year plan to trap us inside The Matrix. How long before Facebook buys Meerkat and builds it into Occulus Rift? Or buys Twitter, just to get Periscope and do the same?

Whatever else happens, the rights clearing question gets very personal. Do you want to be broadcast and/or recorded by others or not? What are the social and device protocols for that? (The VRM dev community has designed one for the glasses above. See the ⊂ ⊃ in the glasses? That’s one. Each corner light is another.)

We should start zero-basing the answers today, while the inevitable is in sight but isn’t here yet. Empathy is the first requirement. (Take the time to dig Dave Winer’s 12-minute podcast on the topic. It matters.) Getting permission is another.

As for the relevance of standing law, almost none of it applies at the technical level. Simply put, all copyright laws were created in times when digital life was unimaginable (e.g. Stature of Anne, ASCAP), barely known (Act of 1976), or highly feared (WIPO, CTEA, DMCA).

How would we write new laws for an age that has barely started? Or why start with laws at all? (Nearly all regulation protects yesterday from last Thursday. And too often its crafted by know-nothings.)

We’ve only been living the networked life since graphical browsers and ISPs arrived in the mid-90’s. Meanwhile we’ve had thousands of years to develop civilization in the physical world. Which means that, relatively speaking, networked life is Eden. It’s brand new here, and we’re all naked. That’s why it’s so easy anybody to see everything about us online.

How will we create the digital equivalents of the privacy technologies we call clothing and shelter? Is the first answer a technical one, a policy one, or both? Which should come first? (In Europe and Australia, policy already has.)

Protecting the need for artists to make money is part of the picture. But it’s not the only part. And laws are only one way to protect artists, or anybody.

Manners come first, and we barely have those yet, if at all. None of the big companies that currently dominate our digital lives have fully thought out how to protect anybody’s privacy. Those that come closest are ones we pay directly, and are financially accountable to us.

Apple, for example, is doing more and more to isolate personal data to spaces the individual controls and the company can’t see. Google and Facebook both seem to regard personal privacy as a bug in online life, rather than a feature of it. (Note that, at least for their most popular services, we pay those two companies nothing. We are mere consumers whose lives are sold to the company’s actual customers, which are advertisers.)

Bottom line: the legal slate is covered in chalk, but the technical one is close to clean. What do we want to write there?

We’ll be talking about this, and many other things, at VRM Day (6 April) and IIW (7-9 April) in the Computer History Museum in downtown Silicon Valley (101 & Shoreline, Mountain View).

How do you maximize the help that companies and customers give each other?

I’m not talking just about what companies and customers learn from each other through the sales, service and surveys — the Three S’s. Nor am I talking only about improving the “customer experience,” (a topic that has been buzzing upward over the last few years). I’m talking about how companies and customers help each other out. I mean really help. Constantly.

One way, of course, is by talking to each other. There are exemplars of this. Among big companies, Apple leads the way, gathering intelligence though its responsive call center and the Genius bars at its retail stores. Among small companies, my favorite example is Ting, a U.S. mobile phone carrier.  According to Consumer Reports, Ting is tops in customer satisfaction, while Sprint is dead last. Here’s what’s interesting about that: Ting runs on the Sprint network. Meaning the actual performance of the network is the same for both. This gives us a kind of a controlled study: one network, two vastly different levels of customer satisfaction. Here are two reasons for that difference:

  1. Ting’s offerings are simple. They have rates, not plans. You only pay for what you use. That’s it. And usage is low in cost. Sprint, Verizon and AT&T, on the other hand, all comprise a confusopoly. They offer complex, confusing and changing plans, on purpose. In confusopolies, the cognitive overhead for both companies and customers is high. So are marketing, operational and administrative overheads. That’s why they are all more expensive than Ting, and unloved as well — even as, no doubt, they have CRM systems that pay close attention to the customer service performance of their website and call center.
  2. Ting actually talks to customers. They are fanatical about person-to-person service, which means both sides learn from each other. Directly. Ting’s products and services are constantly improved by intelligence coming directly from customers. And customers can sense it. Directly.

Now, what about the times when you and the company are not talking to each other? For example, when you just want something to work, or to work better?. Or when you think of a way a product or a service can be improved somehow, but don’t want to go through the hassle of trying to get in touch with the company?

I answer that in the next post.

How music lovers can fix the broken music business and stop screwing artists

In Taylor Swift, Spotify and the Musical Food Chain Myth, musician Doria Roberts (@DoriaRoberts) details a problem that we’ve been hearing about for the duration:  artists have been getting screwed by the music industry, which now includes streaming services such as Spotify, paying tiny fractions of a penny for every tune everybody hears through them. She writes,

…not only have physical CD sales been down, but also the digital money I used to get from legal downloads all but disappeared. Instead of getting weekly payments ranging between $200-$750 from my distributor, I started getting an average $11.36, once a month from all streaming services combined. Yes, $11.36/month is what I get from all of them. That is not a sustainable business model for a truly independent artist.

And it will get worse as streams gradually become the main source for music. Signs and portents in that direction:

Doria also offers some answers:

HOW CONSUMERS CAN HELP REVERSE THE COURSE

As a consumer and a fan, you are at the top of this food chain, not the bottom. You are not subject to the whims of popular culture; you are the arbiter of it. If you want to see less “fluff” in the music industry, if you want to see your artists remain authentic, creative and prolific beings and, if you want them to come back to your hometowns:

1. Start buying our music again. Digital, hard copy, doesn’t matter, just pay for it. If you can pay $4 for a coffee, you can pay $9.99 for something meaningful that you’ll enjoy forever.

2. Stop using streaming services that only pay us $.0006 per listen if you don’t already own our music either via a legal download or a hard copy. Educate yourself. If you think the profits that oil companies make are obscene, I urge you to do some digging about what some of these streaming companies are really about. [Editor’s note: Spotify claims to have paid Taylor Swift over $2 million dollars in streaming royalties. Her label says that’s not even close to the truth.]

3. And, this is important: Set your DVRs on your favorite show nights and go to our concerts. If I had a dime for every time a person told me they weren’t able to make my show because it was the finals of DWTS or The Voice, I wouldn’t be writing this post. I’d be sitting in a bungalow in Costa Rica sipping something fruity and delicious.

Simple solutions sometimes require difficult choices. Oh, and this goes for independent movies, books, indie/feminist bookstores, small venues and small businesses, too. Just know this: you have the power to change the cultural landscape around you. Use that power wisely.

In reply below, I wrote,

All the course-reversing suggestions are good, but also assume that the only possible choices are the ones we have now. This has never been the case. We can invent new choices — new solutions for this already-old problem.

I believe the best solutions are those that make it very easy for consumers to pay whatever they want for whatever they like (and not just music).

One outline for this is EmanciPay, at ProjectVRM: . My own idea for an expression of EmanciPay is a user-side system set up to automatically pay (or pledge to pay) a penny per listen to any song heard anywhere, including one’s own music collection. That’s a high multiple of whatever coercive rates are being extracted on the supply side of the marketplace today — and in the whole future, which will suck.

Way back in ’98, when the DMCA birthed the ancestor of today streamed music royalty regime, it framed coercive rates with this context: “in the absence of a willing buyer and a willing seller.”

So let’s quit working only the seller-side of the marketplace. Let’s equip the willing buyer.

If anybody wants to work on the code for that, contact me (I’m not hard to find). We’ll get a posse together and go do it. Given the sum of existing code in the world already, it shouldn’t be too hard.

If we really are at the top of the food chain, we need better ways to pay for what we eat. If we don’t come up with those, all we will have are government-regulated ways to screw both the artists and the media. (Ask Spotify and Pandora how much they’re profiting in the current system.)

What we have today with streaming is guided by language like this (from the last link above):

…rates for the statutory licenses for webcasting and for ephemeral recordings must be the rates that most clearly represent the rates that would have been negotiated in the marketplace between a willing buyer and a willing seller. — http://www.copyright.gov/carp/webcasting_rates_final.html

The boldface is mine. Here’s my point: Regulators and their captors in the record industry have believed from the start that listeners to streams cannot be willing buyers.

I want to prove them wrong.

The time wasn’t right when we started writing about this back in the late ’00s.  But now it is. Let’s do something about it.

 

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