Marketing Darwinism - by Paul Dunay
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Marketing Darwinism - by Paul Dunay
QR Codes

9 Reasons QR Codes are Bad for Your Brand

QR-code

The tale of the QR code is a sordid story. The QR (Quick Response) code was originally the trademark name for a two-dimensional barcode system. It was invented in 1994 by Denso Wave, a Toyota subsidiary, as a way to track vehicles as they were assembled, and to scan components at high speeds. While Denso Wave holds the patent on the technology, they granted free license on it, going so far as to publish the specs online, and allowing anyone to use it.

Unfortunately, as we all know, free doesn’t always mean good and I think QR Codes take that assertion to a whole new level. Many brands initially diverted QR Codes from its initial purpose by jumping on the bandwagon as something new and exciting that allowed them to leverage the exploding mobile market to interact with real world products. However they quickly realized many of the technology’s inherent limitations.

It is not that QR Codes are dead or evil or anything hyperbolic like that – they are just horribly misused. There are benefits and useful applications for them, either technical or industrial for the most part. At the marketing level, for example, they already stand for something for a lot of consumers (implicitly telling the user “click here”). Also, they are the perfect tool for very specific actions, namely, initiating a commerce transaction on a specific item or acting as a coupon code and they will be continued to be used in this context for the foreseeable future.

One place, however, that we are seeing increasing aversion to QR Code use is among consumer-oriented brand marketing. What are the reasons behind the demise of such technology? Well here are 9 of them:

1)       QR codes and 2D Tags in general are ugly, generic and mess with a brand’s aesthetic, destroying much of the investment made by brands to develop distinct brand identities.

2)       The codes have limited uses and are only capable of translating into a text string that sends users to a website, phone number or SMS.

3)       Since they can only generate a text string they do not offer the possibility of advanced, connected content (for instance it is very difficult to connect Facebook ID with the end user through a QR Code and therefore track or provide relevant content).

4)       Since a unique 2D code must be displayed on everything they augment, the implementation is difficult to scale and lack the ability to be used retroactively across existing campaigns or inventories without extremely onerous and expensive efforts.

5)       In addition to needing to be placed on everything, ad agencies and Fortune 500 CMOs have found that managing the creative assets needed for implementing anything beyond a very limited QR Code-based campaign is incredibly difficult and inefficient.

6)       Because anyone can make them, the user experience (UX) is incredibly varied and frequently very low engagement.

7)       Consumers (especially women) do not seem inclined to use them resulting in very low click-through rates, unless it is something incredibly compelling to the target, like downloading the latest Lady GaGa song for free.

8)       Because consumers do not click on codes often and UX is generally of low quality, QR Codes have entered a vicious circle where brands expect low response rate and at the same time, most end users expect low quality content. This will continue to drive usage down.

9)       Many alternate technologies like Near Field Communications (NFC) and Visual Recognition (VR) are becoming commercially viable without the above issues faced by QR.

Through the multiple attempts to make QR Codes work in brand marketing, they have demonstrated a real demand for augmenting media assets but, at the same time, that they are not the solution and have faced extreme resistance from numerous segments of the population. Unfortunately, for a long time there were no other options so marketers were forced to try to work with them if they wanted to use mobile to interact with real world objects and images. This has led to abysmal adoption rates despite being on the market for almost two decades. If they were a marketing product instead of a free to use technology QR codes would have been forgotten a long time ago. Instead they have lingered until something better comes along. It takes a while to kill anything that is available for free, but this one has been circling the bowl for a while.

It is said that a technology has been mass market adopted when it becomes synonymous with its use. And while QR Codes have shown their limitations, I believe Visual Recognition has the potential to become that mass-market technology. It is a natural and seamless process, as easy as taking a picture, and now that we are starting to see a proliferation of powerful Visual Recognition solutions I believe Visual Recognition is poised to become a pillar of mobile and Visual Discovery of the objects around us (including Advertising and Product Discovery).

Written with Arnaud Saint-Paul, CEO of smartsy

January 30, 2013by Paul Dunay
Advertising, Applications, Branding, Content Marketing, Customer Experience, Facebook, Inbound Marketing, Listening, Personalization, Social Media

Don’t Blame Facebook: 10 Reasons Low Conversion Rates Are YOUR Fault

So, you’re one of the seemingly millions of brands out there using Facebook to lure people over to your website. Chances are you’ve viewed recent reports about Facebook’s surprisingly low activity rates (“Only 1% of people who like a Facebook page ever go back to that page”) as vindication of what you’ve always suspected: marketing on Facebook just doesn’t work.

You’re not alone. The following are the 10 top reasons brands fail to tap into the real potential of Facebook. (Hint: zero of them are Facebook’s fault.)

1.     Failure to make a great first impression

Most fans won’t ever come back to a brand’s page unless they feel they have good reason to. This is not totally different from how they interact with their friends’ pages when you think about it. Unless the new friend has great content to go back to, there’s not much of a reason to go directly to their page very often, if at all.

2.     Poor text and visuals

A successful Facebook page must have concise, engaging text that’s relevant to both the brand and the fans’ interests. Overly long, humdrum copy will fail to capture fans’ attention. Crisp, eye-catching, high-resolution visuals (photos, videos, illustrations) that clearly speak to those things visitors like about the brand in the first place will draw them in for more.

3.     Stagnant page content

If fans stop by more than once only to find the same old Facebook page, they might assume the page is outdated — or worse, abandoned. It’s important for marketers to give fans new ways to connect and advance their relationship with the brand or product being promoted. Keep to a consistent schedule with fresh content and ever-improving offers, and be sure to test what works with your audience.

4.     Inconsistent or lazy branding

If there’s no stylistic connection between a company’s Facebook page and its main website, visitors may not trust that the page is legit. Brands often spend a disproportionate amount of time, money and effort on website branding efforts, in comparison to the relative pittance reserved for complementary Facebook efforts. Keep branding consistent across all channels, so that visitors know exactly where they’re going and whom they’re dealing with.

5.     Confusing calls to action

Once fans arrive at a brand’s Facebook page, they should have a clear idea of what to do and what’s available to them. Offers and calls-to-action should be prominently displayed, and any associated instructions should be easy to follow. Be aware, however, that Facebook has guidelines concerning calls-to-actions, offers and anything else resembling blatant advertising on company pages, so it’s important to make sure you’re current on usage guidelines.

6.     Too many clicks

People are impatient—and want immediate gratification—especially on Facebook. If you have to use forms to give visitors access to the content they want, they’re likely to click away. Make sure the desired destination can be reached in the fewest amount of clicks possible. Also, if you have to use a form to capture data, keep it short and simple.

7.     Mysterious visitors

All fans are not alike – so why treat them all the same? With the right tools, marketers can compile profiles using Facebook data authorized by the user (age, gender, location, name, relationship status, etc.) as well as previous site behaviors, to get a better sense of the type of people they’re reaching on Facebook. Those profiles can then be used to present offers, content and/or experiences that are the most effective in attracting fans, “Likes”, website traffic or any other relevant conversion metrics.

8.     Preconceived notions

As excited as marketers may get about shiny new objects—especially social media objects—they‘re often reluctant to spend the time and money to truly develop new efforts for them. Why not step out of your comfort zone and try to develop specific content based on customer segments? An even crazier idea—consider developing Facebook-specific campaigns rather than repurposing ones created with a different platform in mind.

9.     Ineffective plugin use

If Facebook plugins aren’t integrated into the main company website, a great deal of potential traffic—and revenue—is being lost. Plugin tools turn consumers into brand advocates, making it easy to share site information with Facebook friends. Let visitors like or share website pages back to their Facebook profile with one click. Better yet, provide personalized suggestions to your website visitors, based on what other people are sharing as well as their own click behavior.

10.   Sticking to stand-alone metrics

Getting just one side of the story isn’t enough. Marketing programs need to be set up so that Facebook stats and user profiles are fully integrated with all other online and offline ecommerce channels’ information to create rich, detailed and fully comprehensive user profiles. Profile reports should be updated on a regular basis, so the most recent user information is always available.

With the proper attention to detail and willingness to dedicate the same energy to Facebook efforts as they do to other initiatives, online marketers will no doubt find that their 1% conversion rate is something they can control—and that it’s not Facebook’s fault their customers aren’t more engaged.

January 23, 2013by Paul Dunay
Behavioral Targeting, Customer Experience, eCommerce, Mobile, Social Media

10 Ecommerce Predictions for 2013

Thanks to smarter marketing, better technology and consumers speaking out, 2013 just might be the year we see a real shift in how close customers and companies can really get.

We know the deal—people are spending, and continuing to spend, more and more online. Every year, Cyber Monday will beat out the last. Mobile and tablet revenues will continue to increase. And bricks-and-mortar retailers will scramble to keep pace with a digitally driven world.

The truth is, consumers are demanding optimized and personalized sites to offer them a richer, more relevant online experience. It’s no longer an option for marketers—it’s a must-have. In 2013, expect to see:

  1. Testing (Finally) Becomes a Must-Have – Companies big and small have dabbled in this for a decade. But now, everyone has to get serious about it. Companies that don’t test won’t get anywhere near providing the best online experiences for their audience.
  2. True, Real-Time Personalization, for Everyone – Now that this complex technology is made easily available to the masses, we’re going to see major industries like finance, travel and media lead the charge—but also expect businesses in other industries, such as gaming and charity, to take advantage of personalization solutions to offer more custom experiences.
  3. Consumers Get Over the Privacy Debate – Because consumers are getting on board with personalization, they should expect to see more of the general information they share online used by companies. Everything from age, geography and life stage, incorporating social profiles (e.g., married versus single) will play a part in offering a more relevant, more valuable ecommerce experience.
  4. Retailers Start to Love Loyalty Programs – It’s not just for frequent fliers anymore. Now businesses across industries (retail, finance, etc.) are launching loyalty programs—and integrating data into comprehensive customer profiles—to offer the next level of personalization and service.
  5. Mobile Gets Personal Too – As consumers adapt to living their lives from their mobile phones and tablets, they’ll expect platform-specific offerings that offer a better shopping experience, geo-specific content, special offers and other elements that complement and enhance life on the go.
  6. Responsive Design as the Rule – A site that’s designed for optimal viewing no matter which mobile or tablet device is being used is the new norm. Gone are the days of resizing, scrolling and otherwise struggling to view a site depending on the size of your computer or device screen.
  7. The Rise of Cross-Channel Experiences – Consumers don’t think in channels, they think in brands. So a completely seamless ecommerce experience no matter where they are —at their desktops, on their smartphones and tablets, or on social pages and sites—is a must-have.
  8. Companies Get a Handle on Big Data – Most businesses have an abundance of useful data, however, very few are using this data to provide targeted individual experiences at the right time to respond to savvy consumers’ needs. In the coming year, expect to see more brands getting a handle on this to offer customers more targeted offers across all channels in real time.
  9. Social Media Grows Up – For far too long, marketers have treated social media as an island from the rest of their strategy—and, in turn, have not reaped any benefits of it being a useful sales tool. Going forward, we’ll see more brands using social data to personalize experiences on their websites, as well as applying testing and personalization to their own Facebook pages.
  10. B2B Catches Up to B2C  – When it comes to testing and personalization, consumer-facing businesses aren’t the only ones catching on. B2B companies—and their customers—crave a great online experience too.  More and more B2B sites will use testing and personalization to create well-optimized and targeted sites based on user behaviors.

As a consumer and a marketer, I’m looking forward to getting online in 2013.

 

January 16, 2013by Paul Dunay

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Welcome to my blog, my name is Paul Dunay and I lead Red Hat's Financial Services Marketing team Globally, I am also a Certified Professional Coach, Author and Award-Winning B2B Marketing Expert. Any views expressed are my own.

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