Kickstarter Mythology Needs Some Retail Reality


Kickstarter mythology has outgrown reality.

(But let me be very clear. I’m NOT talking about Kickstarter art, music, and movie projects. It was designed for these and they seem to be running pretty well overall.)

I’m talking about Kickstarter campaigns that raise money by Directly Selling new Products that have never been built – and taking orders for lots of them. In the computer business we used to call this selling vaporware and investing in businesses dedicated to vaporware led to the dotcom crash. Segway and Google Glass were both massive vaporware disasters.

Now, by selling vaporware with Kickstarter, we’re seeing amazing train wrecks among the most highly successful money raising campaigns. These train wrecks are all made possible by the mythologies that drive Kickstarter and other crowd funding sites. (Incidentally, a comment below points out this is a far more dramatic version of the direct mail practice of “dry testing”. There is already FTC guidance on dry testing.)

The Mythology of Kickstarter for Inventors. Inventor mythology starts with a belief that it’s enough to come up with a good idea and some money to build it. And Kickstarter appears to “unshackle” inventors so this can happen.
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Big Data Caution…from GK Chesterton

“The real trouble with this world of ours is not that it is an unreasonable world, nor even that it is a reasonable one. The commonest kind of trouble is that it is nearly reasonable, but not quite. Life is not an illogicality; yet it is a trap for logicians. It looks just a little more mathematical and regular than it is; its exactitude is obvious, but its inexactitude is hidden; its wildness lies in wait.”
…GK Chesterton, “Orthodoxy”

It was with great interest I ran across this comment the other day. And it got me thinking about the world of big data today.

The red flag for data abuse comes when people cede their human initiative and let data take over. Listen to how people discuss “big data” and you’ll start getting a sense their vision is to have data run the world. I suppose in a corporate bureaucracy this provides perfect cover for a mistake. (“The data said to do it” or perhaps “The Data Scientists said it would work!”).
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The 24 Hour Fitness Personal Greeting Is Creepy

Some of the worst ideas start when someone means well, but doesn’t think clearly. Or. maybe, just thinks clearly badly. Either way, 24 Hour Fitness’s newly impersonal “personal” greeting just doesn’t work for me.

The Facts. I joined back up with 24 Hour Fitness just over a year ago. It’s a beautiful facility with gorgeous big windows overlooking the Willamette River and Portland’s West Hills. And, I have a great personal trainer, the equipment’s solid, the facility good, etc…

Except, somewhere in the past few months, the front desk team received orders from above to “greet members by name”. To some executive it probably sounded like a warm, personal way to build connections with members. Perhaps it came under the category of “engagement”. Regardless it’s one outstanding example of how “personalized” can mean “creepy”.
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Where There’s New Media Smoke, There’s Usually a Smoke Machine

I modified a JFK attributed quote for this title. But also thought another modification explains a lot about one of the biggest hassles in modern marketing:

Where there’s smoke, there’s usually deep pockets writing a check.

Marketers today are pummeled with smoke — especially about new media, brand love, and about big data. And there’s a reason the smoke is so thick… There’s a set of big companies, venture startups, and VCs that think they can make big money by selling these ideas. And that opens their checkbooks wide.

But just because the checkbook is open doesn’t mean they’re selling anything important. All it means is that a pile of VENDORS stand to make big money if they can only convince you that what they have is important. (Most often they’re the ONLY ones making money through the idea.)
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The Search for Meaning in Big Data

Big Data has been around long enough now that it’s clear that analyzing big data can deliver some sweet benefits. What’s less discussed are the challenges companies face in finding those benefits.

A Key Challenge:  Irrelevant Data. My friend Shahin Khan recently tweeted about one of the key challenges with big data.

@ShahinKhan The ratio of relevant data to irrelevant data will asymptotically approach zero. #BigData

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The Absurdity of Brand Disconnected from Product

Last week I ran into research that presents a strange example of disconnected brand thinking. I found it in a study claiming to tell us what brand attributes are most important to the fabled Millennials. (Link here.)

Problem is the research draws broad brand preference conclusions that are entirely disconnected from product – there’s no product anywhere to be found. And that means the reported findings are entirely meaningless since consumers can’t tell us about brand in the abstract.
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Consumers Buy Products, Not Brands: How This Should Change Your Advertising

“Whenever you can, make the product itself the hero of your advertising.”
– David Ogilvy, Ogilvy on Advertising

We live in a grand age of “brand advertising” – where most ad agencies believe that their role is to directly build brand with advertising. Except they’re wrong.

There are far more advertising options for building a brand than so-called “brand advertising”. Quite often, these options end up building stronger brand, faster and at less cost. Sadly, most agencies never tell their clients about these other options – perhaps because they’ve never thought that deeply about them. (It’s a bit ironic, since one fundamental of creative is that a linear approach to subtle things is often the least effective. So creative teams shouldn’t be surprised that the fastest way to build brand isn’t to directly try to build that brand.) Read more of this post