Target “Misses” It’s Online Projections. And We Care…why?

Saw this story on RetailWire titled “Does Target have a problem online?” (click here).

The gist is that analysts are worried about Target because they exceeded the national average of 15% online growth. But their online growth at 20% was less than the 30% that had been projected. (Same thing happened at WalMart.)

And we care…exactly why?

The theory of “omnichannel” is that the consumer doesn’t care about our silos. So why should we be reporting and analyzing numbers based on those same silos?
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Steve Jobs & Keeping Silos from Abusing Their Power

I was pondering Steve Jobs’ legacy again recently. And I continue to be fascinated that he showed that integrating less advanced, but more solid, technologies can deliver far more consumer power than exotic technological advancement. In a sense, with much of Apple’s work integration IS the innovation. And in doing so, Jobs showed that being jack of all trades is often the only way to deliver something exceptional.

But Succeeding with Integration isn’t Easy. In the Isaacson biography of Jobs, I was fascinated by how hard he had to work to keep the drive for perfection within silo’s (where, often the product must be perfect according to each silo’s criteria) from destroying good product. And I’d guess some of his well-documented rudeness comes from the frustration of this challenge.

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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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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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