Alexander Chalkidis

Category: Business

  • “The majority of people who stayed in this room are reusing towels at least once during their stay”

    I don’t like Facebook ads. In fact I have played the game of clicking them away and giving Facebook my reasoning (Misleading! Insulting!) just to see if their targeting gets any better. (It doesn’t.) But I see why Facebook advertising can do so well.

    The phrase in the title is famous as producing a 54% compliance rate in a hotel room. All other facets of the experiment were controlled and identical. Only the tagline differed. It had started with the common “Recycle and do it for environment” which was the control message, producing just 38% compliance from the hotel guests in those rooms. Other variants actually did worse, especially those with an emphasis on the hotel’s interest in the economy. Unless you have a cause which people care enough about, they don’t want to know about your running costs or administrative issues! “Cooperate and join us” got only 36% because of this.

    What was missing was the sense of collective behaviour. “The majority of guests are reusing towels at least once during their stay” produced 46% guest compliance. Which is pretty impressive. But double check this article’s title. Spot the difference? “…who stayed in this room…”! Four words, 8% performance difference!

    At first look, the sentence is too long and clumsy. It wouldn’t get past most ad execs. Not catchy enough. It would get stuck at the graphic design level. Too long. But it works. Because we don’t only want to know that many people do something. We want to feel we are similar. Though a pretty long shot, “the majority of people who stayed in this room” is the best connection you will get under the circumstances. And perhaps the intimacy of a hotel room adds some zest to the thought. You are after all about to take your clothes off and have a shower in the same shower with all the guest before you.

    So if they reused their towel, what the hell, I will too!

    Now look at the signs around you, all of them trying to get you to do or not do something. “No Parking”? What you really wonder as you stop to do some quick shopping is how likely you are to get a ticket. So how about a sign saying “95% cars parked here without a valid coupon, got fined after just 4 minutes”? And take a careful look at that next Facebook ad. “Your friends Bob, Sue and Peter liked this product” …shucks maybe I should stop clicking those ad boxes away!

  • Mussolini, the world cup and financial regulation in Greece

    There is a long list of blatantly obvious match fixing scandals during the world cup.  Minor lists of mistakes like the ones compiled for the 2010 games in South Africa pale before them.  Mussolini extended a match’s running time until Italy won!  In fact, I would argue that football is a sport actually designed to encourage match fixing.  After all with such a large playing area, all it takes is a bribe to any one player, anywhere in the field to win.  With only 10 bad runs (ie run to the ball slow enough to let the opponent get there first) any player will be effectively giving the opponents an advantage similar to getting a red card.  The rest of the team will have to work harder, will have to cover the gaps created and sooner or later the opponents will score; especially if they know which player is bribed and have adjusted their strategy.

    I try to learn from my mistakes.  My tenure at PublicWorld taught me a lot about the corporate world.   I welcomed the opportunity to see the other side of things. As an entrepreneur I always tried to figure out why as customers, large corporations very often ‘acted crazy’.  My contacts would vaguely mention a board meeting, the stock exchange or something similar and we would leave it at that.

    But I didn’t spend all that time studying and travelling for nothing.  1200 mainly foreign contacts at LinkedIn are there to teach me stuff!  A lot of reading since and armed with my experience first hand, I kept tab on the company over the past year.   As a learning exercise.  It wasn’t just an ego thing or the curiosity to discover whether my conclusions were more accurate than the managers staying behind.   It became a proper learning exercise.  So when something major happens, like Fnac leaving a market, I decided to revisit in earnest.  Why on earth should Public (a retailer similar to Fnac in many ways) buy two of the three stores Fnac is leaving behind?

    While the Obama administration battles to pass it’s second major bill after healthcare on financial regulation, it is obvious that there is long way to go yet.  Not only is the global playing field completely uneven, but there are still huge loopholes.  I received today a copy of the published accounts of PublicWorld.  At the bottom the chartered accountants boldly state:  “Without any further doubt in our opinion you should take special note of the fact that the company’s own assets are now negative and so call for application of article 48 of law 2190/1920.”  This is a clause which specifies that suppliers can demand immediate payment because the company is deemed uncreditworthy.  It is approximately the same as Maradona using his hand to score a goal.  The entire planet sees it, yet not the player, not FIFA or anybody else does anything about it.   The referee is the only one with an excuse as things happen quickly and he honestly might have missed the cunning move.

    The media of course do nothing about it.  There seems little demand.  In football the fans want to believe the myth of fair play.   In financial markets, small players who are effectively gambling, want to believe that there is a sense of logic in what they are doing; that it is better than visiting the casino…

  • Why TV companies should give away reputation monitoring

    The field of reputation monitoring seems to be on fire.  By all accounts a hot, hot, hot category to watch.  The reason is simple: most businesses don’t really know what is happening online and they are scared.  So they pay for a company to make sense of the millions of interactions going on globally around their brands.  They monitor products, staff, competitors, slogans, IP… in fact they let the reputation monitoring experts tell them what they should be monitoring!  This is about the same as asking your army’s general what new weapons he needs.  Expect a long, complex and detailed list of very expensive stuff.

    Don’t get me wrong.  You do need to monitor what is going on online. And with the right partner you might even learn a lot about the field.  But it is extremely important not to lose track of the real world of influence.  Which, for most businesses, is not yet completely online.   Traditional media like TV, radio and print exert massive influence.  Heck I have waged fax mailing campaigns that blow the socks of anything online!   The fact that they don’t provide metrics as easy to produce as the online stuff shouldn’t marginalise them.

    It does of course in a twisted Catch 22 scenario:  online metrics are easier, so we spend more time with them, so we disregard older media, so ad spend decreases.  The solution is pretty much what Google did with their Analytics.  TV companies should buy monitoring systems and give them away to customers!  In Greece for example there is a truly excellent company, www.qualia.gr which offers not only solid technology for speech and content recognition, but intelligence in it’s analysis.  And social media is included, so you can get an overall and balanced view.  (If I was the TV company buying Qualia I would tweak the algorythms a bit I think…)

    It is all about interface.  If I get you looking at my monitor of information I control what you think.

  • Follow your bliss: branding is storytelling as an archetype

    Heinrich Zimmer was a man with a mission.  You don’t need a guru, he said, you need to find an archetypal myth that applies to your situation and live it through.  His knowledge of Hindu mythology allowed him to interpret works of art through archetypes.  Very Jung-like of him and he greatly influenced my favourite thinker on the subject, Joseph Campbell.

    It is a fairly straightforward theory: any story can be categorized in a specific archetypal myth.   A myth that is told and retold since the beginning of human storytelling.  Any journey, be it Lord of the Rings or Rocky IV, has twelve stages.  Ordinary World, Call to Adventure, Refusal of the Call, Meeting with the Mentor and so on.  Much like Jung in “Man and his symbols” demonstrated that signs from the swastika to a snake eating it’s tail have followed homo sapiens from his very beginning.  (Great inspiration for logos!)  You can pick a fight with Jung’s last work easily.  Is a lion the same potent symbol today as it was back when I really did fear getting eaten by one daily?  A dragon now that we now all about dinosaurs?  Any symbol in a technologically advanced world which throws any image around the internet and on TV at a breakneck speed?

    But you can’t argue with mythological archetypes.  Why?  Because what makes us human is the search for meaning.  Arguably without that, there are no emotions.  And without emotions, there is no marketing.  So, like Zimmer, I say “don’t look for brand gurus”. Follow your bliss and find the myth that applies to your brand.  And the stage it is at.  Start up?  You have seen it a thousand times in those films where a young person suddenly gets thrown into a big adventure.  It seems impossible at first, daunting.  But we learn about his pedigree.  (Good excuse for our brand’s origins.)  Then he finds allies (other companies we are working with) or mentors (brand endorsers).  We are routing for him.  Then we learn about his nemesis.  You can make it specific (“we hate Microsoft” seems to be popular!) or generic “untidy offices drive me mad!”

    Myth provides a safe, reliable route to follow.  One that consumers can relate to.  Because the biggest enemy of brand building is incongruity.  Our brains just can’t handle information that seems to make no sense.  Just like in film making or book writing, just because you are following an archetype, doesn’t mean you can’t embelish it, or decide where to place emphasis.  But using well known symbols gives the larger than life effect every brand needs to gain mind share.

    Straightfoward stuff.  Now my teaser question: who do you want telling your story?

  • Don’t spend good money on SEO. Start a blog!

    OK, I admit it.  I never liked Flash.  But Apple isn’t killing Flash.  Google is.

    Back when I sold ‘real’ animation software I hated it.  Computer geeks idea of making stuff move on a screen really was the absolute worse way of doing it.  I objected to it as an animation tool.  Then I started getting annoyed at Flash as the cause of all those ridiculously complicated websites which took forever to load and didn’t really tell you anything.

    I felt the need for content. Content isn’t king, it is our bread and butter.   And while corporate websites got FLASHier (pun intended) they got less and less interesting in terms of content.  It was like a one page brochure on nice shiny paper.  Almost useless, you can’t even use it for starting the fireplace in winter.

    Which is why blogs took over.  Google likes blogs better than Flash sites.  And people find content through search.  At least if you are interested in attracting new customers.  Having a flash based website you end up paying for SEO to achieve what? If someone enters your brand name, your official website appears near the top of search results.  Which is like saying that if someone opens the physical copy of yellow pages, when they get to your listing they see you!

    What you really need is to appear next to relevant topics.  And Flash doesn’t do that.  Wordpress does.  Or any other mechanism that puts the emphasis on content.  So rather than spending through the nose to try and make your flash website more SEO friendly, just start a blog next to it!

    Your flash website is like your business card.  Flashy and almost useless but it gives a better (safer) sense of your brand.  And the blog is like your newsletter.  Less aesthetically pleasing but with more juicy content, worth revisiting.  I predicted the demise of Flash back in 2007 but here I am now in some ways backing it.  There is no good reason to go tearing down work already done on the platform 98% of connected computers use!  Just because Steve Jobs and a bunch of iPhone touting fashion maniacs in California say you should?  (Remember than iPhone penetration is much much lower in most of the rest of the planet.)

    I still don’t like flash by the way.

  • Brand building and social media

    I took the time to get to know a superb team of brand builders today, www.yalosquality.com has a sample of their work through sadly not a lot of the more recent stuff.  They know what they are good at and they really focus on those details of a brand that matter, especially in packaging.  It got me thinking about all the social media so called brand building.

    In essence you need to know three things to start with: who do you want to get into your net?(work) What gets onto your customers radars?  (Rather pointless these days to talk about media ‘consumption’.)  And where does the rest of your team fit into this effort?  (Your employees or anyone else you feel is on your side.)

    It seems self evident to say you need a target but with social media this is not an easy task.  It isn’t a box sitting on a shelf, limited in many respects in its effects.  It bridges PR, community, investors and any other partnership in ways so complex it is infuriating to try and explain many times.   In normal brand building, people like the fantastically able people at Yalos make sure that everything is perfect.  The best possible take on all aspects of the brand.  In social media we are battling to achieve a degree of transparency which is almost in opposition with classic testimonials or case studies.  We are looking for a convincing ‘person’ of a brand.

    And this ‘person’ cannot be driven by a single entity.  It has to be the live sum total of customers’ living with the brand.  But as clear as they are conversing with a friend.   Except they aren’t sitting down to share a coffee and a long chat.  They are saying ‘hi’ as they pass each other in the supermarket, ‘how are you’ as they pick up their kids from school and ‘we should get together some time’ as they sit next to each other for five minutes at basketball practice.   That’s life today, even with ‘normal’ regular real people friends!

    Let me be clear about one thing: for most companies I wouldn’t dream of putting up anything on a social network that can be demolished.  I recently witnessed the online bashing of www.getitnow.gr , what seemed a much promising eshop type venture in Greece with serious levels of investment.  Their facebook page had all the right ingredients but once the complaints started, it seems impossible to put a lid on the hell it let loose!  You can’t delete a comment you don’t like, everyone will know instantly.    Server problems?  Delays?  Confusion?  Even if they were perfect from the start they would have been in for it.  When behemoths like P&G are struggling to make sense of it all you know we have a challenge.

    And I have the solution.  Stay tuned!

  • y2k vs swine flu: lessons for two industries

    Everyone in the IT industry pretends it never happened.  One of the most succesful marketing fabrications ever in what is otherwise quite a boring sector.  It generated billions in revenue out of nothing.   The y2k bug was a public relations triumph.  And in many ways, it relied on similar scaremongery as H1N1.  Presidents and prime ministers went on record publicly in order to “raise awareness”.  They authorised massive amounts of public funding in order to counter the potential threat.

    “Potential” the operative word.  Nobody guaranteed that air control, traffic lights and bank systems would crumble as the Millenium dawned.  But everyone happilly got paid overtime to miss the New Year party.  “Just in case”.

    Swine flu, though also grossly overhyped at least had some actual victims!   y2k managed to capitalize on the planet’s fear of robots taking over.  A generation of decision makers seeing technology taking over but at the same time not really understanding how it works.

    I must admit that I did not personally mastermind y2k hysteria.  In fact I am one of the very few who publicly, clearly and often stated that it is all complete nonsense.  But now older and wiser I am more interested in the hysteria than the truth.  I want to do a Steve Jobs on the planet by actually causing such irrationality!

    It is the Holy Grail of marketing.  Selling services for a non existent threat with all the marketing created by terrified, responsibility fearing civil servants.  Anybody with a passion for serious social engineering please contact me;  with the increased pace of technological adoption and dependence, combined with social media we can do better than y2k and swine flu combined!

  • Web friendly new art technique using Pantone pens

    illustration made with pantone marker pens
    Click on the image to zoom in and see more like it

    The web enabled world makes us all very choosy in terms of eye candy.  We just see too much good stuff to take notice of a striking visual.  Which makes it all the more interesting when someone actually does something new.   A children’s book, just out, is possibly opening a whole new stylistic category and one that is very web friendly.

    Dimitris Fousekis executed it entirely using Pantone marker pens!  (I would link to the relevant product page but at http://www.pantone.com it is impossible to find anything.)  It isn’t just the textures that are interesting.  For sure the artist’s view on even something as simple as a fish is fascinating and with unique levels of detail and character.  But it is the richness of the image based on something as simple and standard as Pantone colors which opens up whole new worlds for images going around the web enabled world that is fascinating.

    Apparently the artist is working on an exhibition of oil paintings for the Fall of 2010; it will be interesting to see how the colours are used in relation to this technique.  I personally think that this is so original it merits being made into a type of brush for Illustrator or Corel Painter like they have Van Gogh or other master brushes.

  • The politics of software piracy statistics

    Working with software in the Balkans, piracy has always been a prominent issue.  Whether it was during an initial meeting with a new vendor trying to figure out which parts of the market to first aim at, or with an old partner looking to squeeze out some particular segment.  “Nah, we can’t do that.  Too much piracy.”  Discussion ends.  For people in technology as long as me, a big part of us is resigned to the situation.  Everything can be copied.  Change your business model.

    But then BSA (the Business Software Alliance is the most polite version of the acronym) came along.  Sure it was only backed by a few companies but they were the big ones that matter.  And their PR, well, I don’t need to tell you how many millions piracy costs the software industry because everyone else does.  OK, it sort of makes sense to accept a number like this from an organization that represents software companies.  Not!  Why on earth should we not assume that they are greatly exaggerating?  It is like accepting the data from McDonald’s about the nutritional value of their food!  “Ultimately, determining the global PC software piracy rate includes collecting 182 discrete data inputs and evaluating PC and software trends and data in each of 111 economies.”  No mention of the exact data inputs…no wonder Pearson is selling of IDC with shoddy work like that.

    And it gets worse.  “Worse” as in “worrying that most people/journalists/politicians take them at face value”.  You read a title like “Piracy down in Canada”.  Based on what numbers?  BSA.  Well, actually a mish mash of pseudo proper looking numbers from IDC and whatever else they can combine to make it look scientific.  In Canada’s case even IDC and BSA admitted they overdid it.  Their numbers were wild guesstimates!   Now this sort of megahoax gets people like me interested.  Why should BSA want Canada to appear like a low piracy country?   A good example.

    It seems that the main purpose of BSA is to get legislation passed so the companies involved can sell more while doing less.  To achieve this:

    1. Statistics are fabricated and presented in such a way so as to apply pressure when and where needed.  Yeah, let’s change around the top ranking so as to get different countries in the spot light.

    2. PR and advertising focuses on either general wishy washy “principles” or specific cases (for intimidational purposes – it is cheaper than actually suing every culprit)

    3. Position the lobbying effort as high as possible with as many vaguely relevant organisations as possible.  Then get them to regurgitate the rubbish data, or – better still – to simply take action based on the false information.

    So why has piracy dropped in Greece?  I would love to take the credit through the increased retail presence of ProgramA.  It has been a truly massive change in retail indeed.  But let’s be honest.  Not even GfK monitors most retail sales!   So it must be, because the Greek government bowed to the pressure and passed the laws BSA asked for.  Bill Gates shook hands with our prime minister, got his top level deal, threw in a bone with a Microsoft research centre in Greece.  Guess what?  We are no longer top of their list!

    The list of countries on this year’s BSA report read like a US terrorist suspect roll call!  Georgia    95% Zimbabwe  92% bangladesh  91% Moldova    91% armenia    90% yemen    90% sri lanka   89% azerbaijan  88% libya    88%  belarus    87% Venezuela  87%  Indonesia   86% Vietnam    85%  Ukraine    85%  Iraq    85%  Pakistan    84% algeria    84%  cameroon   83% nigeria    83%  Paraguay   82%  Zambia    82%  Montenegro  81%  bolivia    80%  el salvador  80%  Guatemala  80%  botswana   79%  china    79%  Ivory coast   79% Kenya    79%  nicaragua  79%   On the other hand “Serbia is one of a handful of economies, including Italy, Greece and Colombia, where tax audits also include software license compliance. This is one of the reasons piracy has dropped six points from 2005 to 2008.”  Great work guys, you got government agencies working for you in these countries!

    You know what the initials BS stand for.  Now you know what BSA stands for.  Only believe statistics you have made up yourself!

  • Social CRM is better than flossing

    A long time ago I helped develop what was at the time the cutting edge of CRM.  My gripe with traditional CRM systems, even the really big, fancy, expensive ones, was that they made you do double work.  Keep your contact details in one system and then remember to fill in all the details in another one.  Finish a meeting and then don’t forget to open up a different system, find the contact and write what happened.  It is too much like a visit to the dentist for me: yeah I know I should floss every day, it just never finds its way into my schedule!

    So my CRM system made sure all the inputs where automatic.  Send an email through Outlook if you want but with the press of a button it gets attached to your contact’s activity record.  Incoming emails can even be tagged automatically based on rules.  They can even autogenerate actions like being considered a lead.  Same with phone calls or any other action.  The CRM is integrated with the ERP system so all products, knowledge base items, prices and customer or company information is in one single database.  Even setting up a meeting is better as it can link to a touch screen enabled monitor at your entrance or meeting room door.  “Enter your invitation number to enter” it says to the visitor.  When you finish your meeting and get back to your desk there is an open window showing that your guest left two minutes ago (he checked out using the same touch screen) and asking what happened at the meeting.  Like everything else in this CRM you can generate next actions easily from any item.

    It was cool.  It still is cool and you can buy it as a finished product, complete with a web front end that seamlessly allows you to make any of this information available to the customers themselves as any self respecting company needs to do in 2010 in order to be transparent and online.

    Enter sCRM.  Yet another acronym, but this one makes sense as it solves many new problems in one.  What it gives you is a way to very quickly “touch” many contacts.  Open up a project and see all the people involved in the decision.  It shows you how long since you “touched” them in some way.  A “touch” is a contact, but in this day and age it doesn’t have to be an email, phone call or visit.   It could be a comment on their status on LinkedIn or a discussion in a group.  You are in “touch” and in a way that is much more meaningful than calling up out of the blue.

    In many ways, the “S”(social) in front of CRM is not necessary.  Customer Relationship Management is one acronym which will always be around as business and life itself will always be about our contacts, the people around us.  We can call it People Relationship Management or whatever else in the future but that is what it is about.  Who are my friends and what can I do for them?  So, if you haven’t tried out Flights, I thoroughly recommend it.  If there are other similar systems out there, I am not aware of them yet.  (Please tell me!)

    You can use the free version of Flights (up to 5 objectives and a few other limitations) even for personal goals.  Heck, most people have turned to professional networking tools like Xing, Plaxo, Viadeo and LinkedIn in order to find a job in this climate, they might as well be a bit more systematic about it!