Banks Suck!

Banks Suck, a fact of life for most.  Fees abound, lines grow longer by the day, the banking industry is ripe for change.  The advent of NFC payments brings imminent change closer.  The tipping point for alternatives could be driven by the most basic need .. security of transaction.

APPLE and GOOGLE are launching Near Field Computing (NFC) payment architecture products, only to find opposition, by major retailers.  Banking is in for a shocking realization, much like the RIAA.  Change or Die.

The real battle is happening behind the scenes, away from the common transactions we consumers see daily.  Beyond the ease of payment, a hurdle that should represent the REAL GOAL of payment technology, lies the kickback based architecture of credit card based payments.  Monthly press releases from major retailers, concerning data breaches, show how vulnerable banks and payment systems are to a very aggressive hacking community.  The crooks are not dumb.  Yet the “Banksters” are standing their “old school” ground, hoping the storm will pass.

A lesson can be learned from the recording industry:  The model is changing.  Technology exists, in many different forms, a solution to the very broken payment model we use in the US.  Real time credit card transactions are based on a very simple and (proven) hackable model.  The solution lies in encrypted multi factor authentication.  The specifics are too “technically spicy” to address in this post.

The ability to “swipe pay” has existed for quite some time.  First introduced in Europe in 1982, and in the US in 1986, using a specific (and static) digital key is a long proven.  Since the early eighties the tech has come a long way.  WIth the advent of the Internet and open source encryption, the ability to generate a “use once” payment key is rock solid.  Vendors of all types, and all sizes, refuse to use current tools.  The ROI has not presented itself.  It seems this ship has sailed.

Last year, in 2013, an orchestrated ATM attack .. using stolen ATM data .. resulted in a $45M haul.  One weekend of activity results in a $45M haul, yet the banks decided this was not enough of a loss to result in a call to action to fix the issue at hand.  The basic infrastructure is insecure.  Current tech, when discussing credit cards and ATM transactions, is akin to a yard fence.  No real security at all, when attacked by a semi sophisticated hacker.

Solutions are coming to market, with reference to alternative payments.  In addition to Debit/Credit card payments changing transaction form, actual alternative currencies are also coming into play.  The number of alternative currencies, like BitCoin, are growing by the day.  Banks and traditional currencies must adapt or go away.  Consumers, when challenged with an alternative, will find a new way to do business.  

Traditionally alternative payment models have been spurred by hyperinflation and currency devaluation.  The lack of confidence in payment models could cause new options to be driven to adoption.  Though eCurrencies are less stable they provide alternatives not seen in “traditional” payment models.  The ability to be anonymous, or not linked to a greater portfolio, inserting a firewall of sorts from a total wealth portfolio shows promise.  When engaged in a financial war, a tank ditch is a good thing.

The current battle over who will win the war of payment models lies in the hands of the incumbents, the financial institutions.  My war cry is different.  Make a shout for change, vote with your purchasing dollars.  Supporting your purchasing habits with more secure options will make your voice heard, and deny banking the ability to leverage their old school model, where the purchaser ALWAYS pays.

A secondary “win” lies in wait.  Many vertical markets have realized a reduction in overhead, based on digital efficiency.  Charging retailers and business with a “standard” set of fees, associated with Credit Card based purchases amounts to highway robbery.  Servers do the majority of the heavy lifting, with regards to CC transactions.  This realized reduction in operational cost has yet to meet the consumer and retailers at the point of purchase.

Maybe we, as a buying market, can help realize the savings already seen by the banking and CC industries.  Efficiency in the buying process, combined with increased security, should be a WIN-WIN.  Only through a common voice will the masses grab the golden ring, a secure transaction that does NOT include a payday for the middlemen, heavy lifting that truly lies in digital infrastructure. Ostensibly a zero cost and high profit environment for the CC companies and banks, standing in the middle of virtually every eTransaction.

Vote for Change.  Vote with YOUR Dollars.  Pay in CASH, while it still exists.  Maybe the credit  industry and banks will take notice.

WIN10 - a WINner - So Far (day 5)

Windows has not seen wide adoption of a “New and Improved” operating system since Windows 7. My history with Windows goes back to the beginning. The elation surrounding Windows 3.11SP2, the first real adoptable Windows OS, might be matched with the pending release of WIN10.

Today marks my fifth day, working solely with the WIN10 Tech Preview. Though I was hesitant to take the plunge, the gamble has paid off. All of the functionality that has made WIN7 a rock solid OS may be found in WIN10. My programs work (with no configuration changes). With deference to expected regular and lengthy reboot sequences (I normally reboot twice a month) I have found no flaws in the “not ready for prime time” version of the OS.

A nine minute video of the Tech Preview build may be found here. Cortana, as the video explains, is not yet supported by WIN10 Tech Preview. Cortana promises to compete with Google Now and SIRI, as a voice interactive digital assistant, but has yet to be activated in the current WIN10 release. When SIRI and Google Now voice interactive services released, a training curve for new users met adoption. No such hurdle will exist for cortana, users already expect a competent assistant, hiding in their computer or phone.

Microsoft’s goal, a line of Operating Systems REV’s, usable across all devices, has been stymied by lackluster adoption. Vista and WIN8 have not stormed the market (see chart above). Previous versions of Microsoft products have found much more success (WIN95/98, WINXP, WIN7). Slow adoption could be due to the rapidly changing way we use and access the tools technology provides us. Previous successfully adopted MS offerings met a user base tied to the desktop, and products that maximized the tools available through a 3 point interface (monitor, keyboard and mouse). We use our tools, whatever form they may take (phone, phablet, tablet, laptop, pc) with high expectations. No longer are we stuck at a PC.

Starnes Consulting services a wide variety of clients, ranging from solopreneur single computer offices to national firms. We still see WIN XP, despite its EOL (end of life) status, the majority of users are sticking with WIN7. As PC’s expire many users have been forced to upgrade to WIN8, due to lack of WIN7 machines available for purchase.

Spending the hours and dollars to roll back to WIN7, a process made even tougher by Microsoft, presents a hurdle most will not cross. Corporate users looking for increased productivity in an “upgraded” computer, running WIN8, are often met with a desktop they do not know how to use. The missing START button is only the beginning of the frustration cycle.

WIN10 addresses this need head on. The START button is located where the users expect to find it, in the lower left hand corner of the screen. Programs represent and load in the expected manner. Software that has traditionally run well on WIN7 runs with no issues in WIN10 (so far). The software load on my primary PC includes three browsers, MS Office, STEAM (gaming) and SWTOR (gaming). All is well, even in the tech build. In fact my PC is running well, with a better experience and performance metrics than the previous load (WIN7 Ult 64).

Companies drowning in frustrated users, attempting to adopt WIN8, should look forward to the newest MS offering. Traditionally every OTHER Microsoft operating system has flourished, finding widespread adoption. WIN10 seems to be a WINner, regardless of pre release build.

2014 Holiday Season - Post update from January

2014 Holiday Season - eTail versus Retail. Why not have both?

Oct 20 2014

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A nightmare -- a dream of sorts -- comes to mind for most retailers when confronted with a buying public empowered with loads of real-time competitive information. Price comparing in the aisles is rampant. Too much information in a buyer's hand is not always a good thing from a seller's standpoint. The real fear, the buyer that never leaves the house! How can the brick and mortar crowd compete?

In truth, well-informed buyers make predictable choices. As we look to the 2014 Holiday Shopping Season, we should know that buyers are changing in real-time. This shopping season holds promise for all three layers of business. eTail, Retail and brick to click.

What questions can you ask your leaders about changes in buyer tactics?

How can we draw from our past successes and grow with the new market challenges?

The front counter has moved
As mobile adoption grows, the interface that makes people most comfortable is changing. No longer are we tied to the traditional three-point interface: monitor, keyboard, and mouse. As more wearable technology hits the steep part of the adoption curve, a shift in initial client interaction is taking place. We are encountering clients and prospects wirelessly and dynamically, based on their location and store proximity. In essence, the front counter of your business has shifted into concentric rings, with your brick-and-mortar location at the center.

The presentation of your store/brand digital presence is the new front counter for clients armed with layover technology. Google Glass is the most advanced and widely known example of this emerging technology, but actual Glass users represent only a small percentage of your potential client pool. The technology itself (the ability to see a store digitally) will should ported to cellphones and tablets as soon as Christmas 2014.

Be competitive
Your business exists because you believe you bring value to the market. Your products and services represent more than your best effort. Excellence is your goal. Repeat business is the lowest-cost source of revenue. Representing your market-facing wins behind your new digital front counter is the key to retaining your relationship with possibly distracted users.

If your goal is to engage every client who graces your door, a click-to-chat capability during store hours would mirror your in-store experience digitally. Don't have the time to respond, the "cloud" has responded with low cost options, for a 24/7 digital customer service counter.

Competing for new and repeat clients is nothing new. A more connected client is an opportunity to engage in a different way. A good use of tools and information allows for personalized updates, social networking and user generated content retention, and a greater number of touches with your client base. Informing a return client of a sale or offering product shipment information is a real value add, engaging the client at their point of need, and their moment of need.

Embrace change (WiFi and access)
Digitally enabled buyers need access. Offering WiFi at your retail location is helpful. Free WiFi within your store increases foot traffic and in-store time. Registering your location as a WiFi hot zone is also an option. Sites such as WeFi use a mapping interface to guide searchers to available wireless web access.

Using a walled garden tactic (as opposed to unfettered Internet access) allows retailers to retain brand presence and ensure eyeball time with prospects taking advantage of the store's Internet resources. Challenging the user with user terms, filtering (no adult content), bandwidth monitoring, and time limits helps you control the environment. A little scarcity of resource goes a long way in building the value of your "free" offering. The landing page for the walled garden is also a marketing opportunity. Coupon of the day?

Fools rush in
It's better to be tardy than foolish. The digital representation of your business should closely mirror your brick-and-mortar model. Any retailer that has survived the last five years is solid. Lessons learned in the past, from a a client interaction standpoint, should be applied to your digital model. Just because you get an order on the web, does not mean it is a "good deal".

Reaching out to clients and prospects with a new set of tools can be challenging. Observe and emulate your company's strengths. The true change lies in adopting a CRM approach to retail business. Social networking, user-generated content (reviews), and customer bonus/retention cards -- all these tools provide a stream of information about your clients and how to meet and predict their needs.

Earned Media and Going Viral

Earned Media, a new term for many, refers to a tipping point beyond Owned and Paid Media. Owned Media, content published and controlled by the company, differs from Paid Media. Purchased in many forms, Paid Media, constitutes a portion of any “modern” marketing strategy.

Earned media may also be viewed as user generated content. The opportunity to engage with prospects, clients, and vendors - through the use of social media - represents a boon for business of all size. The tools employed to adopt this strategy may be built by IT and Web professionals, but the people behind the chat or IM window should be closely tied to the business in question. Ideally the sales department takes on these digitally engaged users.

Web based conversations should be handled by staff equipped to handle real time commerce. The ability to give a refund, provide an RMA (returned merchandise authorization), or status of an order - these are CSR (customer service representative) related tasks. In many cases the online engagement tools, should they exist, resolve to the IT department. The separation of engagement tools, and people that engage the users of the tools, must be made.

Earned media is driven by the conversations others are having about YOUR business. Discussions about product quality, satisfaction ratings, buzz about new or pending products. Fostering these discussions provides the gas in the tank of the “going viral” engine. This is not all honey and roses. The “viral” road goes both ways. Unfavorable discussions may ensue, the digital mob driving viewership, can be fickle.

For years we have accepted the “800 support” line, as (hopefully) expert advice, when faced with a problem. Providing a common resource, away from the actual location of the business, is a fairly recent change. Not many years ago if help was needed, and the store you purchased from was closed, you waited until the business opened the next day. Phone support changed this expectation.

The web resources available today up the ante once again. Hold times are not acceptable, we want a chat window, with a live person available in seconds. Eighty percent of buyers look to their circle of influence for advice and reviews. Eight out of ten, a staggering number. This “trusted” review base has high value, advice from a friend, rather than the info provided by the corporate web presence.

Overcoming objections, the back and forth of the sales process, increases revenue and sales retention. The fickle web based buyer needs to be engaged. The answer here is not social media. Using current tools to engage buyers, during the buying cycle, actual people responding to real time chat, online reviews, entering discussions in the web based community. These are traditional sales and marketing tasks, using current tools.

The tools needed to engage in the “Earned Media” race are available to businesses of all size. The advent of cloud based providers, with the correlating competition in pricing, scales the tools needed. Solopreneur to Fortune 500, there is no reason not to get in the game.

Partner to Strengths, Ally to Weaknesses

Partner to Strengths, Ally to Weakness

Recently while stranded in Paradise, overlooking the waters surrounding Tampa, a truth in the new economy came to light.  My business brings me in front of all types.  From the seasoned business pro to the brightest eyed startup, there is an interesting denominator.  Fear of losing IP (intellectual property) keeps great new products from a larger adoption rate.One of my mantras as a business coach, when approaching markets with unique or “better mousetrap” products - Partner to your strengths, Ally to your weaknesses.  This approach challenges business stakeholders fears and courage.  Regardless of business tenure.

Approaching the market incumbent, truly a competitor, with partnership agreement is the first step.  The existing marketing material used to show the “unfair advantage”, against the larger competitor, holds the keys to the winning play.  The risk lies in giving away this unfair advantage.  The risk of giving away the game is real.  

You never get the right answer without the right question, a tenant my Father drilled into me.  Gathering the stakeholders in your company and discussing this approach is an important step.  This is not a five minute meeting, rather a phones - door closed event.  Plan some time off site, gather the team, and make a plan.  

The questions the C suite should be asking, when considering this approach:

• What are our greatest strengths?
• What weaknesses do we have?
• Who does my perfect partner look like?

The approach to this carefully qualified partner/prospect list, a list of five prospects, ranked like draft picks - should be the product of honest and open discussion.  Whether or not your company is capable of frank discussions about strengths and weaknesses -  a topic for another post.  A few good discussion points:

Present your “unfair advantage”

Your presentation should be based on your marketing materials.  If you have slipped any of your IP into your marketing stock, the competition has access to it.  Ask Mr. Google, he will tell you all you want to know about the game, and who you are playing against.

A proposal to partner

Offering your fellow market competitor the ability to swiftly bring your product to market, as a component of THEIR solution, might be a tough message to deliver.  This seemingly unnatural event should be a Win/Win.  You are in essence signing your star player to the other team.  A clone of your most successful scorer, but you get a percentage of his contract.

Gotta nail the workflow.

Sequestering data, establishment of who has the ball, tiered partner support.  The components of the actual delivery of product to the new partner is key.  Examine your current process and engage your new partner.  You just might learn something about delivering to a known client type.  The culture of every company differs, don’t be afraid to learn from your former competitor.

This strategy is not for the faint of heart.  Boldly marching into the other teams locker room and discussing the playbook seems like sheer insanity.  If done well the results will be seen quickly.  In essence the play results in a licensing deal.  

Wholesale level relabeling is not new.  The structure of the deal, when seen as licensure, is well known.  Every great relationship is defined by a great contract.  Drawing the rules of engagement with your new partner can prove challenging.  Resist the urge to get caught up in technicalities, the goal is to increase profit revenue for both parties.

Gather the team and add some pages to the playbook.  You might just have some bench players that are star recruits for your “competitors”.