Showing posts with label Amazon. Show all posts
Showing posts with label Amazon. Show all posts

Friday, February 28, 2014

Digital Footprints - stealing your identity or saving you money?


Do online security settings actually help your privacy – at what cost to you?

 A person’s digital footprint is developed and grown exponentially as we turn to digital means for commerce, communication, entertainment.  Digital footprints as noted by Wikipedia are typically classified as active and passive. Active footprints are created where we have an account. A passive footprint is when your browser or device is remembered, without explicit direction from you.   As consumers, we should control what is recorded about us whether active or passive. However, will this actually help or hinder what we want to accomplish online.
The seemingly small changes in our practices are being capitalized on by marketers using digital media trackers and tools for analysis.  Eventually we hear on the news (if you still watch broadcast tv) or read on your favorite news site that your privacy may be at risk with the social media app update.  Just as the print media and propaganda of old, it is meant to elicit a reaction.  So hordes of people rush to their various accounts and do their best to lock down their private information.  We change settings, opt-out of offers, reduce our risk – or so we think.   Tracking our activity online has been around as long as the World Wide Web has been around. Almost all electronic devices have logs; the difference now is companies are finding ways to make those logs of our seemingly random activities.  Whether we are trying to see the weather, buying diapers or emailing our grandmother – that information is useful to someone.  For me, the scary part is someone is willing to pay for that information.  But what is the actual risk?  If we are shopping online for diapers is it a bad thing that the site search engine we used to find Pampers keeps a record of that.  When we look at product reviews on Amazon, do we care that diapers show up 2 weeks later as a suggested product perhaps because the cost has actually dropped?

Companies want to sell you something be it goods or services, and we go to companies because we want something. Yet, we consider information gathering online as being victimized by those companies.  The EU has said that some of this type of tracking is indeed wrong and forcing companies to put a notice to all website visitors[i] – we want to know who you are and want to track your activities.  When you visit your regular gas station, the market closest to your home or favorite restaurant you surely notice patterns of employees and likely have favorite servers or checkers who in turn get to know you and how you like to do business with them.  So why do people worry that the personalization you get from your local service providers is trying to be mimicked by your circle of online providers[ii]?  The issue seems to be in the sharing. If my favorite server at my neighborhood cafe knows how I like my eggs and what beverage I’m likely to order, that server isn't going to tell the gas station attendant.  But online, we can look up a new car and ads for that brand or perhaps even that exact car down to the color we spent the most time looking at may show up in banner ads on several different sites we visit afterwards.  Is it a detriment that the web can get to know us quicker, maybe better, than the people we interact with?  We want privacy, but we are also consumers and most of us have limited means.  Do we want to hunt for the best price by driving to multiple stores in a car or on public transit - or have a company offer up their best price while we do other random things online and have that shipped to us for free within 2 days? 
In reality, we are in control of our data.  For those paranoid about truly personal information being gleaned to allow hacks into their various accounts for devious purposes, no amount of protection seems enough.  If you don’t want to register your full name, DOB, mother’s maiden name with a  company – then don’t.  Could this limit your access to some online resources, absolutely.  It is not any sites fault that you posted you were on vacation, hints to your passwords or answers to common security questions on social media[i]. Computers can only regurgitate the inputs we give them.  Otherwise, this posting would have written itself and been better.  In the meantime, I’ll allow Ikea to remember the size of light bulb I needed. I may not tip the tracking cookie, but they’ll likely keep my business – and loyalty is all any company really wants from us.


Wednesday, February 13, 2013

Online Customer Reviews: Sitting on a Goldmine

Online Customer Reviews

Prior to 1995, you would have been hard pressed to find any customer reviews online.  Companies considered this a disaster waiting to happen; how could you seriously allow customers a public forum when they could complain about the product or service you provide?  In 1995, Amazon became the first company to try this.  In 2009, more than 5 million of Amazons customers had posted tens of millions of review online. [1]  This is now a competitive advantage.


"By amassing one of the world's largest collections of consumer opinions, the site has become a leading source of product reviews.  And those reviews are a valuable magnet that lures more consumers to its Web site." [2]

Today the customer reviews are so common that a "...website that does not have feedback loops is considered passé or irrelevant." [3]  And yet there are still a lot of companies, (especially the health care community) that are afraid or unwilling to give consumers an online voice.  These same companies openly talk about ways to encourage and promote their product or service via word-of-mouth.  They want their customers to share their experience with friend and neighbors.  Why not provide an outlet for this?  Consumers will share their opinion; if you provide the avenue you can gain an advantage.


Why Use Online Reviews?

 1.  Real Time Feedback Can Help Your Business Improve Faster


Here is how online review helped L.L. Bean in 2012:

L.L Bean Inc. noticed earlier this year [2012] that one of its top-selling products Supima Cotton Fitted Sheets, was being slammed on online customer reviews.

The company, which pulled the sheets from its website, found that a wrinkle-resistance treatment mistakenly added by a contractor was causing the cotton fabric to unravel.  It offered new sheets to the 6,300 customers who had purchased the set and destroyed the rest of the faulty batch.

"Before, it would have taken us months and months to figure out if something was wrong with a product through returns, if we ever would have know at all," said Steve Fuller, L.L Bean's chief marketing office. [4]

 
courtesy of www.dilbert.com


 2.  Improve Your SEO

There are several online review products, like PowerReviews that have the ability to put new information from a customer's review directly on your products pages.  The allow search engines to see your products and helps customer find your product. [5]


To say PowerReviews is a game-changer is an understatement.  Within a month of launching PowerReviews, Diapers.co, raised its conversion rate by 14%, and I    attribute that entire increase to the integration of PowerReviews."
                                                                                    -Josh Himwich
                                                                                  VP, eCommerce Solutions

3.  Additional Analytic's to Push the Business Strategy

Consumers, sometimes with a little encouragement are willing to share their opinion about a product.  In the past, the only way to obtain this information was through a survey or focus group.  Both methods can be expensive and time consuming.  Online reviews can be built to gather data a company wants to see.  This data can be used to improve your marketing strategy, product segmentation, and process improvement, etc.


I was not able to find any academic research to support or not support customers online reviews.  I am sure you have either tried to use a review to assist your purchase or wrote your own review on a product.  Could the process not be better?

Companies need not wait for the academic research.  They would be wise to test customer reviews and see if these can help their bottom line.  Consumers will give their review on a product or service whether or not the company listens.  Can your business hear the consumer?









[1]  Ante, Spencer E.  "Amazon: Turning Consumer Opinions into gold."  www.businessweek.com.  October 15, 2009

[2]  Ante, Spencer E.  "Amazon: Turning Consumer Opinions into gold."  www.businessweek.com.  October 15, 2009

[3]  Ante, Spencer E.  "Amazon: Turning Consumer Opinions into gold."  www.businessweek.com.  October 15, 2009

[4] Banjo, Shelly.  "Firms Take Online Reviews to Heart."  The Wall Street Journal. July 29, 2012

[5] www.PowerReviews.com