Sunday, 30 October 2011
Why should currency be common?
Sunday, 14 August 2011
The Rise and Fall of Free: The week in which FREE finally went up in flames
How shocking it was to see those pictures on TV of rioting, looters helping themselves to trainers, plasma screens and mobile phones: brazenly walking into shops and clearing the shelves of more goods than they could carry. How shocking it must have been for marketers in particular. Haven’t we been telling our clients about the declines in materialism in favour of experiences; how there is an accelerated trend in people buying on the basis of ‘values’ as much as ‘value’: and how people are redefining what makes them happy by making more mindful purchases as they start to live with less and adopt a back-to-basics mindset. Well the events of last week seem to have punctured that theory.
What I saw was something closer to what has been described as ‘shopping with violence’ by groups of people who felt it their right to acquire as much as they could to get something for nothing. Some of the looters when interviewed on Radio 4 admitted that they didn’t need trainers themselves they were just taking the chance to get something for free.
But is it any surprise to us that our society has spawned a certain group who feel it is their right to acquire things for free? For how long have we been peddling the ‘magic of free’? From entering a free draw; enjoying a free drink; downloading content for free; and reading our news for free, to free interest rates, and even free housing. Is it any wonder that if you push the concept of free so far, that not only do you end up with freesumers….but freeloaders?
Now, of course, the reasons behind the riots are truly complex and don’t lie in just one area, but the contributing factor made by the marketing of ‘free’ is one element that has been strangely overlooked by the media, preferring to dwell on the political subject of ‘cuts’ than on the economic subject of ‘costs’. But this was a riot cultivated by a culture of acquisition, not of austerity. The evidence is right there before us in the TV pictures of looters: people who have been described as ‘mindless’, who value nothing but their ability to acquire what is not theirs to take. If this is about politics, it is about the politics of price.
Because if you tell people over a long enough period of time that the things they most desire can be acquired for free, you are eroding the very frameworks for understanding value. We can theorise about the post-recessionary changes that are taking place in the ‘value exchange’ but the unkind truth is that in a market where everything is free, there IS no value exchange.
Many a psychological study has been recorded on the effects of presenting products as ‘free’. Perhaps some of the best by Kristina Shampan’er and Dan Ariely’: ‘How small is zero price? The true value of free products’ in which they show that ‘zero cost’ encourages people to act in a much more irrational manner than if they had to weigh up the opportunity costs of something that came with a price tag.
Interestingly, the digital noughties (which perhaps we should now rename the ‘freebies’) could perhaps be held partly accountable for the ‘mindless mindset’ that fuelled some of last week’s events. When Clay Shirky paraphrases Szabo and others who have written on the idea of ‘mental transaction costs’ (the energy required to weigh up what the cost of something might be) he comes to the conclusion that: “The only business model that delivers money from sender to receiver with no mental transaction costs is theft” – or if you like, something that you don’t own but that you can take for free. In the digital world we have an expectation of ‘free’; and as the digital world and the physical world become one and the same thing, can we really be surprised when people have rising expectations that what they want should be free?
Looting online has been going on for ages, and as a society we have been happy to overlook it. But who pays for the data required to freely enjoy a Youtube clip on an iPhone? Who pays to play Farmville; who pays for the ability to send messages via BBM? The answer seems quite clear now: we all pay.
Free has been used as a mass distribution mechanic. And those looters last week felt that some non-digital distribution should be coming their way. This is not at all to excuse that repugnant behaviour, but it is to raise the possibility that in a world of free, where acquisition is presented as having no consequence, that requires no thought – where no one pays, so there is no cost - we are raising not a generation of free-thinkers, but a generation of non-thinkers.
A generation who do not have to calculate risk and reward. A generation that has grown up with free information, free publishing and free distribution at the heart of many of the products it now consumers. Chris Anderson wrote eloquently and convincingly about the new internet-fuelled freemium models, promising us that £0.00 would be the future of business, and that for businesses to survive they should become two-sided and learn to cross-subsidise. This is all true. But it does of course rely on ‘hiding’ the true cost of something that people might believe themselves to be getting for free.
And here’s the rub: years ago, many of the Platonic philosophers, as Ariely points out, were very suspicious of zero: because zero was seen as ‘void’, and since that was a concept that was impossible, neither was zero possible. As marketers, we have used free to mean zero, and the truth is that it is just not possible. Nothing is ever truly free, nor should something we want people to truly value, be flogged as free. We must redefine free as part of a trade, and not as zero. Like freedom itself, ‘free’ is not a right; but a responsibility. As such, it always comes with consequences and we must be responsible enough to spell those out.
Friday, 17 June 2011
The Accountable Consumer
It's fascinating really because he gives numerous examples of how consumer mindsets and behaviour has changed as a result of the recession; and also how brands and services are responding to this to deliver to a new set of needs.
His big point really is that consumers are now looking to buy into Value + Values - looking for brands that will deliver both great value and will do the right thing ( a bit of a Triple Bottom Line theme) but this seems a bit high falutin' to me when people can't afford to buy an extra tin of beans, or are having to feed their family for a fiver!
But i think what is interesting is that he is highlighting the themes of responsibility, accountability and sustainability. And he seems to pick up on an important shift taking place in which consumers are starting to, and having to, take more responsibility for their spending. They are de-risking; being extra resourceful in how they spend and on what they spend, often collaborating with others (as we know from collaborative consumption); and (like in the Depression) wanting to get better educated and skilled so that they can make more informed choices - and therefore, the right decision.
So, building on this thought, we could say that we are entering the age of 'The Accountable Consumer'.
The value exchange is indeed changing, away from consumers just expecting to be rewarded with great value; towards an idea in which the consumer takes some responsibility for the scale and type and even timing of rewards that are due them. The consumer might be empowered - but rather than just bullying brands, he can work with brands, to gain an overall better sense of reward. Think of it as 'buying the right thing + doing the right thing + enjoying the responsible thing'. There must be a sense of satisfaction knowing that you have been more mindful in your spending (ie that is an emotional reward that sits alongside the material reward of whatever it is you have required).
No longer are people being sold to. They are an active part of the purchasing process.
It made me think that maybe we are seeing a journey over time from the Age of Excess (pre-recession) through to the Age of Austerity (which is now in 2010/11) and will in turn soon become The Age of Accountability.
Of course, it's not just the consumer who is having to be more accountable; brands are too. Gerzema talks about brands now paying dividends to their customers (we might say 'rewards') and this seems a lovely mirroring of the consumer and brand sharing the same values - and hence both being equally accountable for purchasing - like a 'we're in this together' kind of mentality.
So, we could go one step further and say that the Accountable Consumer will now choose the Accountable Brand. And the Accountable Brand now seeks an Accountable Consumer (one they can build a sustainable relationship with).
And that could be the new value-exchange: one based on shared accountability. ie a shared accountability for spending, saving, - a sharing of responsibility. Consumers now will only have relationships with the brands, services, products, or other people who share the same values. And a brand only has a relationship with fans rather than random promiscuous purchasers - we are all taking more responsibility for what we attract and what we choose.
So let's not pretend consumers are having it all their own way (i don't think any consumer actually feels that!).... It's far more about an accountable consumer than an empowered consumer. A combination of rights + duties, not just rights per se - because that's what got us into this mess, in the first place.
Saturday, 21 May 2011
The Apple Toy Company
Sunday, 20 March 2011
Subscribers: The new consumers
Friday, 25 February 2011
The new class system: the "knows and know-nots"
I am starting to think that our relationships with technology may well begin to re-draw class boundaries and put in place a "politics of technology".
Smart users of smart devices are accessing all kinds of valuable services that those not on smart devices cannot access or do not want. The irony is that it might be those who cannot afford an iPhone who would most value a 2 for 1 pizza deal on a week night, a free cinema ticket or 10% off high street brands.
If there aren't the right levels of education across the customer base then we could see a class system not of ‘haves and have-nots’ but of ‘knows and know-nots’….which inevitably does lead to a separation between the 'haves and have-nots'
And that makes for friction rather than harmony within society. Not only do those who aren’t ‘smart’ with technology not get the best value; they don’t get a vote. As social media grows and participation in the political and social debates gets more voluble, there could develop a class of technologically-inequipped people who have no voice – or certainly can only whisper when it comes to having their say.
Services that help educate customers in technology are incredibly important in order to share skills and knowledge more widely. One reason why they shouldn’t become a paid for service. The most generous gesture a brand can offer in the emerging world is to offer learning, share knowledge and help transfer skills between people. Otherwise we will be creating a class of people who might be referred to as the informed and therefore 'Influential Elite".
More to come on this I hope, as I think it will be a defining feature of the next few years; whether in mobile; cloud computing, or TV, there will be those who 'know-how' and those who 'know-not' - two classes of people enjoying different levels of access, value and rewards in the post-digital age.
Tweets are news
Tuesday, 22 February 2011
The Value of Aesthetics
Monday, 21 February 2011
In praise of UNLIKE
- know that they will learn less from their friends than their enemies
- value originality over and above acceptability
- aim to debate the strength of an idea rather than just vote for it
- view likeminded-ness merely as a difference rather than a preference
- know beyond doubt that the answer cannot be the thing to which everyone agrees
Saturday, 19 February 2011
The Future of Advertising is a Mystery
Earlier this month, on This Week, Gilbert and George explained to Andrew Neil when asked whether they were conventional or eccentric, that they do not see themselves as either. They said: “we are weird and normal at the same time. We don’t believe in conventional or eccentric”. How refreshing! The idea that complete opposites can live in harmony despite the differences, makes for a much more interesting world. And it makes for a much more interesting ‘team’. And, I would argue, makes for a much more interesting environment, in which one solves more interesting problems in more interesting ways. This should be the future of advertising.
I think we should stop seeing our job as ‘manufacturing’ messages and arguably, stop seeing our jobs as solving problems. Why don’t we start seeing our role as solving mysteries. Problems require ‘solutions’ and solutions tend to be thought of as ‘final’. But what we do, isn’t imbued with that kind of finality, or certainty , or rationality – not in the information age.
Usually, brand problems exist in various guises, they hide amongst things, then reveal themselves, and just when we think they are extinguished pop up again elsewhere as something altogether different. Brand problems move around, they’re social – and in this digital world we live in, they don’t disappear. So I see what we do as much more akin to solving mysteries than solving problems.
If we ‘Re-Imagine’ what we’re doing as solving mysteries, we start asking different questions. We don’t expect to ‘extinguish’ something, we expect to ‘understand’ it’; we don’t expect the solution to reside in one simple action, but in a variety of spaces; and we don’t assume the answer lies only within analysis rather from a combination of analysis and imagination. Like Gilbert and George, a mystery has within it both ‘weird’ and ‘normal’ and therefore requires both weird-ness and normal-ness present together to tackle it.
In summary: We are no longer taking on a brief we are taking on a case!
Like Holmes, Morse, or Columbo, when we take on a case, we start with behaviour; that of the suspect, that of their associates, we look for patterns and anomalies. We assume that what we’re being told is not entirely the ‘truth’ and we search for fragments of gossip, information, and other types of stories that are given from various perspectives …and whilst we do, we tend to believe our eyes more so than our ears.
Imagine the implications for how we approach data. We should be investigating it for patterns and perspectives. Seen through the lens of ‘mystery’ we’re not simply seeing data as a way to ‘analyse’. We see it less as a stream of numbers, and more as a snapshot of behaviour and therefore ultimately, an insight into human nature.
We would look for the human stories within the numbers. Searching not for ‘answers’ but for patterns; approaching it from various perspectives and searching for links with other things we have observed in ‘real’ life. For what we should be doing with data, is exactly the same thing we do when we sit on a park bench or at a pavement cafĂ© – we’re people-watching. If we’re in the business of mystery, our data analysts are merely people-watching, albeit from their desks.
The interesting thing about this is, whilst people sometimes don’t want to pay for ‘data’, because it’s just numbers isn’t it (!), and therefore in some sense a commodity; people do pay for stories. Over thousands and thousands of years, people have paid for access to plays, poetry and pantomimes. Because story-telling around the human condition has universal appeal – unlike problem-solving (your problem isn’t necessarily the same as mine) which is particular and seen as ‘specialist’.
Anyway, in the realms of data if we think we’re solving a problem we’ll look for similarities; if we think we’re solving a mystery we will look for similarities as well as differences – we’ll be looking not only for the normal (the things that seem ‘true’) - but also for the things we don’t understand - the weird. For example, often it appears to no longer be ‘normal’ to be a ‘normal’ weight. What do we now perceive as ‘normal weight? Perhaps a size 8 if you read Vogue, but size 16 if you shop in M&S. so, what is ‘normal’ for someone who reads Vogue and shops in M&S? Again this moves us from framing the task as one of ‘analysis’ to framing the task to one of ‘understanding’. Problems reside in ‘things’; mysteries surround ‘people’.
Which brings me to teams: I hope by now, it’s become clear as to why whilst a ‘collective’ might solve a problem, it will never solve a mystery. It’s for that reason that we might want to re-think not only ‘agency’, but ‘collective’ as the right format for describing the optimum team-dynamic. The team solving a mystery needs to be normal, and weird. Like Gilbert & George it should be a partnership. Which does not necessarily suggest similarity; in fact it could be made up of complete opposites; complete opposites that co-exist.
We are in an era of which I would like to term as ‘co-incidence culture’. Where people are doing lots of seemingly contradictory things at the same time. One in which people are at the same time exercising individual rational choice and being influenced by social norms; transmitting digital data whilst enjoying the physical reality; sharing whilst being completely alone; ‘liking ‘ the things they are at the same time moaning about it; and giving away one thing whilst buying another. In this crazy culture of co-occurrence, of co-existence and synchronicity, how can we isolate and identify things as ‘problems’ – as if something utterly ‘weird’ needs to be utterly ‘normalised’ by us.
To finish where we started, the entymology of ‘mystery’, in addition to meaning ‘truth via divine revelation’, is also explained as ‘handicraft, trade or art’. The sense of craft-skills, intuition, experience and humanity is all there, and a better way of describing what we do in the world of pluralism these days.
After all a leap requires both a ‘left’ and ‘right’ and could never come about without both.
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