1) The private person in me shutters to think that Big Brother is not only watching but he’s storing, tracking, cross referencing and analyzing too. This is taking place at and unimaginable level of granularity.

2) The business side of my brain also appreciates the fact that Guests are people. They are not just data points on a graph or cells in a spreadsheet. Analysis is certainly essential but one would bet there are plenty of companies over-valuing this new found power. They are forgetting that they are in business to serve people, not just respond to ones and zeros. As a matter of fact, read this article first: “Superhighway to Hell” by Stephen Saunders (InformationWeek.com via InternetEvolution.com, 19 June 2010).

Back to the first article by Kim Nash. There are some bits to this article (pull out of the context of the whole article) that beg to be addressed AU style:

As Kilcoyne and Coyne learned, modern business intelligence and analytics tools can extract data from enterprise software, populate pre-built statistical models and quickly produce insights that used to take weeks. “In the past, doing predictive analytics needed a PhD in statistics to build a model and interpret results,” says Aberdeen’s White. But newer analytics tools “hide the underlying statistical nerd details,” he says. “Business people don’t have to worry about how the sausage gets made.”

One word: Derivatives. No one needed to understand those either, correct? Information is only as good as the understanding the business people have of the data that was used to compile it. A report without caveats and context is no report at all. If BI is about removing assumption then that thoroughness should be part of the end to end approach.

Key to game-changing decision making is the ability to detect and respond to market changes, taking into account historical knowledge. DirecTV uses analytics to save customers who want to cancel their television service. The company started the program two years ago when it sought to cut churn rates.

What’s interesting is that the examples sited are all reactive. There is some action and then analysis is used to define the appropriate way to respond. Maybe this should be supplemented with a proactive approach as well? That is, avoid upfront engaging customers who don’t meet the good customer profile. For example, for a fitness club, membership retention would be less of an issue if the right customers were attracted in the first place. Waiting to see who leaves seems archaic, no?

How hard agents press depends on how valuable the customer has been to DirecTV, Gustafson says. “There are some people we just do not want to lose.” About 60 percent of customers who want to depart are deemed worth trying to save, he says. The company uses tools from Teradata and SAS to analyze past behavior, evaluating data such as the average annual revenue the customer represents, her payment history and how many pay-per-view shows she buys.

This is a perfect example of forgetting that we’re dealing with real people here. Maybe I am a marginal customer. But if I have 500 Facebook friends and 1,000 Twitter follows then that should be a factor too. To simply place a value on an account (notice I did not say guest or customer) is at best dangerous if the evaluation is this superficial.

Every customer saved is one less customer the company has to try to win back weeks or months later—an expensive process, Gustafson says, that can involve mailings, e-mail and telephone calls as well as sending someone out to reinstall the service. “When the customer first calls, they have a certain mind-set: They want to cancel,” he says. “When we call back, they’re unprepared. It’s a little psychological advantage we have.”

Oh no he didn’t! Forgive me if this sounds insulting but only an idiot would go on record saying such a thing. But again, Mr. Gustafson’s statement is another example of forgetting that guests are real people, not rats to be manipulated.

Now, though, the My Coke Rewards program has helped the company develop more in-depth knowledge about loyal customers. The inside of every bottle cap is printed with a 12-digit code that customers can text or type into a website or desktop widget to accumulate points that can be exchanged for prizes and other awards. Those who opt in to e-mail marketing receive regular offers to gain more points, as well as other marketing pitches. Each is customized based on segments created from demographic information and behavior collected by the site. On average, 285,000 customers visit per day, entering an average of seven codes per second. Information embedded in the codes may include a region or location where the bottle was sold and whether it had special packaging, such as an Olympics logo, that Coca-Cola uses to tailor its pitches.

Read that again… It’s not a 12 digit number, it’s a code. In other words, you can’t drink a soda in peace without wondering when and how Coca-Cola is going to watch you. Scary, right?

After four years, My Coke Rewards is among the longest-running marketing programs in Coca-Cola’s history. And as the program has grown, the company has changed the way it runs in response to insight from analytics, Rollins says.

First, of all the programs Coke has ever had four years constitutes “among the longest-running”? MyGawd, has their marketing department been thinking or just rolling the dice and hoping to find something that sticks. Must be nice to have that type of budget. Furthermore, this reads as if they are responding to analysis, not guests. Not good.

Coca-Cola uses the FICO Precision Marketing Manager suite of statistical analysis tools to study data from its websites. Marketers look at which come-ons elicit the most and best responses, says Thomas Stubbs, Coca-Cola’s interactive marketing director in global IT. Coca-Cola also exchanges data with companies that supply prizes, including Nascar, Nike (NKE) and Sony. “As technology has evolved, we’re able to do more and have a relevant dialog with customers, not just push our ideas out there,” he says.

“A man might not want to admit that he’s a Diet Coke drinker. He will say in a survey that he prefers Coke. But we see he enters only Diet Coke PINs and market accordingly.”

Danger Will Robinson! While it’s true that Coca-Cola might want to know more about who consumes their products, Coke is treading on thin ice if they believe that their definition of the guest is better than the guest’s himself/herself. Do such details constitute useful information? Yes, of course. Might they also be making over-confident decision, and possibly insulting the guest? Yes, that’s very true too.

The idea is not just to save business but to create new business. Successful projects spark new ones. Analytics tools help companies create more money-generating interactions with customers and shave costs from internal operations. CIOs should connect analytics technologies with ideas about refining business processes, says Aberdeen’s White. “Meld them together and that’s very powerful.”

Bottom line… it’s about The Guests, not data and analysis. This shouldn’t be about “refining business process” but about improving The Guest Experience. Same ends? Maybe (but probably not). Different means? Yes, very different means. One puts The Guest first and one does not. If you could analyze the two approaches which would you bet to be the winner? Of the companies you deal with which try to improve The Guest Experience and which are more concerned about their processes and their bottom line?

And finally, to help get it all back into perspective: “It’s Not Your Relationship to Manage” by Lauren McKay (CRM Magazine via DestinationCRM.com, May 2010).

1) While Kim gathers plenty of good points, the best and often most overlooked is the one about limiting a PPC campaign geographically. I wish I had a buck for every time I saw an AdWords ad in search results that was obviously for a local based business well out of my area. Wasted impression add up. In turn, CTR (click throught rate) effects ad placement and bid price.

2) Keep in mind, (typically) PPC is *not* like old media. It’s not about impressions and trying to be everywhere all the time. PPC is about quality. That is, ads and keywords that draw in quality leads and customers. CTR is a handy guide but ultimately it’s about conversions and the quality of the lead/customer there of. In short, PCC isn’t a shotgun, it’s sniper fire. However, you have to take the time to draw the right bullets to your target, else you’ll be spending more than you should.

Have you ever been the victim of click fraud? And what are your PPC tips and secrets?

A trillion hours is a lot of hours, eh?

As it was once said:

No man is an Island, entire of itself; every man is a piece of the Continent, a part of the main; if a clod be washed away by the sea, Europe is the less, as well as if a promontory were, as well as if a manor of thy friends or of thine own were; any man’s death diminishes me, because I am involved in Mankind; And therefore never send to know for whom the bell tolls; It tolls for thee.

John Donne, Meditation XVII
English clergyman & poet (1572 – 1631)

Here are three intriguing perspectives on technology, islands and life as we know it in 2010:

— “Interview: Jaron Lanier – Why Crowdsourcing Isn’t Always Wise” by Kim S. Nash (CIO.com, 25 March 2010)

Your book, You Are Not a Gadget: A Manifesto, challenges the value of crowdsourcing. What’s wrong with the hive mind on the Internet?

It does work sometimes: A crowd of buyers sets a price in a marketplace. But it only works if you want output of a single result. Otherwise, you get design by committee. You get features added to services without anyone looking at the whole complex picture of what you’re trying to build.

— “The Grill: Andrew McAfee” by Sharon Gaudin (ComputerWorld.com, 5 April 2010)

What are the best ways that businesses are taking advantage of Web 2.0 technology?

They’re taking advantage of it in a few different ways. They’re using it to let people broadcast their expertise: I’m going to tell the organization what I’m doing, what I know and what I’m good at. I’m not filling out fields in a database. I’m doing this by blogging. That lets me narrate my work.

— “Build Up Your Influence” by CIO Executive Council (CIO.com, 17 March 2010)

Cora Carmody, Jacobs Engineering, “Whether you want to influence your own team or an external partner, you must show them they are important to you.”

And what tools and approaches do you use to make you work life and your home life a better place?

In short, successful donor engagement is no longer a once a year push, but an ongoing process. Resources are of course tight so management must embed the push in the day to day process, which in turn needs to align closer to the day the day lives of the target audience(s).

Mira and Laura (from www.IdealWare.org in Maine), cover many of the highlights in how to best to eat the donation elephant.

“As for any campaign, it’s important to formulate a plan before rushing out to ask for money. Start by developing a compelling message to inspire people to donate. Tell supporters a story — not just about why it’s important to support your organization, but specifically what the donations will support. Maybe the goal is a scholarship fund to help more people take advantage of your programs or a new piece of equipment. When possible, put names or faces to the people the campaign will help, or paint a vivid picture of what the hoped-for results will look like.”

Actually, for best results the story should be ongoing. It’s something that should reflect the mission and be constantly reinforced with every “blurb” that your org puts into circulation. Marketing in the 21st century is about a two-way conversation and not just traditional one-way messaging. It’ s a walk the talk world so be prepared to show them what you got. And then keep showing them! Additionally, it’s getting to be more difficult to meet fund raising goals when the marketing machine only gets ramped up once or twice a year. How do you think it makes your donors feel when you only come looking for them when you want money? While that might not be entirely true, if that’s their perception then consider it written in stone.

Whatever your medium, make sure you create compelling hooks to encourage people to donate. A simple “Help support our organization” might not get the same response as a “Help add 100 books to the library by midnight!” Almost any online message — whether ad, email, or status update — should be crafted to grab attention. Entice your constituents with intriguing and motivating calls to action.

At the risk of sounding like a broken mp3, do realize that the hook is for the donors, not for you. It’s not what those on the inside should find engaging and only have time for. What’s most important is what do those on the outside of the .org hear and/or expect to hear. How many times have we all seen an advertisement – not just from a nonprofit – that is about what the sender wants to say, and not about what the receiver is expecting to hear as well as how they are wanting to hear it. A product/service benefit isn’t a benefit unless the receiver thinks it is.  For example, the sender say,”Been around for 50 years…” While the receiver thinks, “Big deal! What are you going to do for me today?” That’s not to say tradition and established aren’t important to some, but hey are certainly further a way from the benefit target than “saves you time” or “saves you money”.

Btw, as a rule any “sales pitch” should avoid “cute” and don’t over think “creative”. If it’s not reinforcing the idea(s) then it’s probably a distraction. Nine of out of ten time KISS is will get the job done. Do you have the time to wrestle with unraveling a “cute” message? Don’t be that sender.

It’s more difficult to tell how many people are responding to your social networking appeals, but you can look for spikes in donations when you post something to Twitter or Facebook. It’s also possible to collect donations inside Facebook (using the Causes application), making it very clear how much is coming from Facebook users.

Actually, and this goes for you for profits as well, there’s a tool from Google called URL Builder that is an extension of their free website Analytics offering.  In short, you can add parameters to each of the links you post and Analytics will be able to better track that incoming traffic for you. And not to worry, the URLs generated with URL Builder still work with URL shortening services like TinyURL, Bit.ly, etc. Yes, URL Builder adds 120 seconds extra step but it’s time well invested if your .org want to analyze and understand what worked and what did not.

As you’re walking, chew on this:

The cult of multitasking would have us believe that compulsive message-checking is the behavior of an always-on, hyper-productive worker. But it’s not. It’s the sign of a distracted employee who misguidedly believes he can do multiple tasks at one time. Science disagrees. People may be able to chew gum and walk at the same time, but they can’t do two or more thinking tasks simultaneously.

In short, it’s a quality issue. Focusing on less and completing those tasks before moving on will actually yield more.  Trying to do it all at once is a mistake. The human brain is wired to have a limited span of control. Overstep that bound and output and quality actually drop.

You should find this useful as well:

E-mail multiplies like rabbits, each new message generating more and more replies. Want fewer distractions? Send fewer e-mails. Here are some helpful rules.

— Turn off all visual and sound alerts that announce new mail.

— Check e-mail two to four times a day at designated times and never more often than every 45 minutes.

— Don’t let e-mail be the default communication device. Communicating by phone or face-to-face saves time and builds relationships.

— Respond immediately only to urgent issues. Just because a message can be delivered instantly does not mean you must reply instantly.

— Severely restrict use of the reply-all function.

— Put “no reply necessary” in the subject line when you can. No one knows when an e-conversation is over without an explicit signal.

— Resist your reply reflex. Don’t send e-mails that say “Got it” or “Thanks.”

— Use automatic out-of-office messages to carve out focused work time, such as: “I’m on deadline with a project and will be back online after 4 p.m.”

On the other hand there are a fair number of best practices, free tools and other reasonably priced resources that readily available yet too often ignored. So maybe the issue isn’t so much profit vs. non, but must adapt vs. adapting isn’t so important when all that’s needed is another grant and some more volunteers?

But does it have to be that way? From the outside (i.e., guests) looking in (at the brand) is there really a difference in perception and expectations? In  saying, “But we’re different…” are non-profits actually doing themselves a disservice? Does the fear of competing create an organizational environment that is unable to compete?

Also be sure to check out the sidebar bit, “From Credit Card to PayPal: 3 Ways to Move Money”, as well as, “The New Ways to Pay” (scroll down to the bottom of the page).

For the most part Mr. Gates’ perspective is global. He does however mention during the inteview that s in the United States the two biggest issue his foundation is  addressing are helping teachers and online learning. Contrast this with the fact that Uncle Sam’s approach has lead to a system where only 60% of the students who start high school actually graduate.  The irony comes when one considers how many massive corporations jump through tax loopholes to avoid paying into the system and then those same outfits also expect to have a well educated work force available so they can be even more profitable.

Is the system just dented and bent, or broken and in need of a complete makeover?