Archive for January 2012

Questions, Questions

How does a retailer decide on a test market? Who serves the best fish tacos? How long is the line at the bar? What shoes go best with with this dress?

Consumers have lots of questions; an endless amount of them in fact. Further to that, where do you get answers and are those answers truthful or reliable? Before the online world there were few options. You could believe in the advertising spewing through the traditional media outlets, consult a store employee, or ask friends and family. It was hard to find expert information without doing a lot of research.

The basic tool of the Internet to help you find the answers to your questions is search engines. The problem with search engines though is that they don’t answer specific questions very well. Some of the big guys have created stopgaps to fill this need. Sites like ask.com or Yahoo Answers let you ask questions about any topic, but it can sometimes be like throwing a stone into a pond and expecting it to float. The sites are full of trolls, waiting to pounce on you or people give you a half-baked answer that don’t really help.

The underlying problem is user authenticity. How can you trust one person over another and how can the average person easily weed out the noise? The companies doing it right have implemented various incentives, requirements, or game-play structures to draw people into creating useful content that will actually help you when you need it. So let’s look back at the four questions at the top of this post and the associated companies that are helping you the best.

Q: How does a retailer decide on a test market?

A: Quora – You can ask any question on Quora just like Yahoo Answers, but the difference is that instead of navigating through a sea of questions, when you sign-up with Quora you only see what’s relevant to you. The system pulls in your connections of social media linked accounts and combines that with the answers you provide in your profile about what topics you’re interested in. Users here are more reliable as you’re profile links you to social sites, groups, and topics outside of Quora which forces users to act like they would in real life.

Q: Who serves the best fish tacos?

A: Yelp - Whether you’re looking for a restaurant, a doctor, a new place to shop, or a tourist attraction in a new city, Yelp provides information written by people just like you. Yelp encourages it’s users to be real people. They want you to upload a real photo of yourself, answer some fun questions, and provide real and accurate accounts of your experiences at businesses. Sure there’s spammers like any other site but Yelp has implemented a few features to weed out the garbage. There’s a spam filter which automatically moves (not deletes) suspicious reviews to a quarantine page. Also, there is a content flagging system which allows anyone so flag a suspicious review or profile. Just flag the questionable content and Yelp headquarters will take a look at it and decide if it’s spam or not. Finally, the best way they make sure that the content is reliable is through the Yelp Elite Squad (Full disclosure: I am a Yelp Elite). These highly engaged users are people who provide large amounts of content, help build the community, and also police the content at the local level. While many business owners describe the Elites as a mafia of sorts, in the end they’re helping to make Yelp’s content reliable and useful for the 63 million unique monthly visitors.

Q: How long is the line at the bar?

A: Localmind – By linking in with Foursquare, Gowalla, and Facebook Places check-ins you can know anything about a place in real time. When someone who is using Localmind checks into a business they pop up on the Localmind system. So if you’re wondering if a place is packed, what the nightly special is, or what might be nearby, just ask the question. Users are rewarded by how quickly they respond and can even answer your question with a photo. But what if there’s no one checked into the place you’re questioning? Not to worry. As users check into places multiple times they become experts. You can ask an expert a question at any time, whether they’re checked-in or not. While the expert might not be able to give you real-time information, they’ll at least be able to tell you what you can expect to encounter.

Q: What shoes go best with with this dress?

A: Buyosphere – This Montreal start-up has recently rebranded as a Q&A for shoppers and gained some venture capital investment to help them out. The idea here is that you can find products or deals that you might not normally. Users build their profiles and enhance them with their expertise in shopping categories. When you ask a question it gets sent out to people who understand the category you’re looking at. It’s like having a personal shopper without investing the time or cost. The reward for users is that you gain points, build credibility, and expertise. Those points can be redeemed towards rewards.

While these companies are only the tip of the iceberg, its shows that consumers are looking for better answers and want to be more informed before they invest in a product or brand.

More Mobile Grocery Shopping

Originally published 12/2011

Back in August we told you about Tesco creating virtual grocery stores on subway platforms in South Korea. Now P&G is doing the same in the Czech Republic by teaming up with mall.cz, the country’s largest online store. The P&G website has more.

End of an Era?

Originally published 12/2011

Guangdong province in China is set to increase the minimum wage by 20% for the second time in a year starting January 1st. With the Chinese government pushing for higher end products and jobs we’re slowly seeing the end of cheap Chinese labour, something the western world has enjoyed, directly or indirectly, for the last 20 years. In an effort to keep costs down, manufacturers are closing up shop in China and moving to other countries in search of cheaper workers. You can read more from an article in the Global Post.

Get on the Slow Track

Originally published 12/2011

Finnish grocery chain K-citymarket, owned by Kesco, is testing a new type of check-out lane for people who want to slow things down a little. Elderly and disabled customers are invited to use the slow lane when checking out. This check-out lane provides chairs to wait in and a higher level of customer service. Kesco has teamed up with Aalto University’s MIND research group to run the study of this experiment.

Read more on the Kesco website.

Walmart.com Gets Physical

Originally published 12/2011

Walmart has opened two brick-and-morter stores for it’s website as a test to see how they can better compete in the consumer electronics market. The stores are located in LA and San Diego and will be open through the holidays. The company has been testing and rolling-out new store concepts like their Walmart Express stores to tackle urban markets they haven’t traditionally been able to access due to the store’s large footprint. This latest concept for Walmart.com specifically, gives consumers the opportunity to look at display models and ask employees about the products before purchase. The benefit of ordering through the store instead of at home is that there are no shipping charges on all orders.

Will the connected world love the idea or are we looking at another Consumers Distributing in the making?

The Next Consumer Generation

Originally published 12/2011

Social Entrepreneurship is the focus of the next generation of consumers a recent New York Times Sunday Review article states. We agree.

Yes, We’ll Take Your Money

Originally published 12/2011

As consumers continue to carry less and less cash in the plastic world we now live in, charities are feeling it on their bottom lines. The Salvation Army is testing the use of accepting credit card donations via mobile devices with their bell ringers this holiday season. The charity is using technology developed by Square. Square’s device connects to a mobile device and can accept payments from the four major credit card companies. The device is free, but currently only available in the United States. The company charges a fee of 2.75% of the sale. Because the technology is free and the transaction fee is relatively cheap, this creates a great way for small merchants or home based businesses to accept credit cards that wouldn’t be able to normally due to the minimums and maintenance costs of traditional POS terminals.

Tagging Makes You Money

Originally published 12/2011

If you’re a blogger, merchant, advertiser, or publisher, you can now make money from all those photos you have on your website. The award-winning start-up, Kiosked, has developed tools which allow you to tag content on your site and make a commission from the purchase of those items. Let’s say you’re a writer with a travel blog. That picture of Paris you’re adding to the article you just wrote can be tagged with a link to a travel agent. If a consumer reading your blog clicks and buys a plane ticket to Paris, you get a commission. Kiosked provides an image bank with pre-tagged photos, or you can use their tools to tag your own.

Loyalty for Independent Restaurants

Originally published 12/2011

Loyalty Programs are very hit and miss. Some are great and others make you wonder why you signed up in the first place. Your wallet is full of punch cards from coffee shops or it isn’t because you have so many loyalty cards you don’t want to carry them. What if you only had to carry one loyalty card? What if that card was a card you already carry? Your credit card!

We had the opportunity to check out MOGL, a Solana Beach (San Diego) start-up, at the San Diego Bay Wine and Food Festival. MOGL, is a mix of loyalty program, charity support, and life gamification. You sign-up on their site and link your credit and/or debit card(s). When you dine at a participating restaurant you get 10% cash back, which is paid out at the end of each month. If you spend at least $20 during your visit, MOGL donates a meal on your behalf to Feeding America. Finally, for every dollar members earn, MOGL puts ten cents into a jackpot. If you’re the top spender at that restaurant, you become the MOGL and win the jackpot for the month. So while it’s great and all being the mayor of a place on FourSquare, it doesn’t mean anything, where being a MOGL gets you cash!

MOGL is currently available in Southern California, but with new venture capital is quickly expanding. Expect to see them in San Francisco and New York in the near future.