Apple TV – Strategy Review

My golf buddies were asking me about Steve Job’s keynote a few days ago (September 1st, 2010).  Specifically, my take on Apple TV, the next generation.

Before I go on, I’m should declare that we are not an Apple home.  We’re a Windows 7, Xbox 360 home.  I do have a first generation IPod Touch and iPod Nano and yes, I have ordered the new iPod Touch and plan to pick up a new iPod Nano this Christmas.

Apple TV Review

It’s not fair to call this a review since I don’t have one.  They won’t ship for another 4 weeks.  However, I will try to give you a recap of what I told my buddies today. Apple TV is a good choice for a limited group of people.  Here is my take.

 

 

 

Apple TV is a good buy, if:

  • You have a Netflix account and you don’t have a device connect to your TV that supports Netflix streaming.  For $99, with WiFi 802.11n, this is a great way to get access to the movies and TV shows available from Netflix on demand.  I have an XBox 360 and a Samsung BluRay DVD that already has this support.
  • If you enjoy watching YouTube videos and would like to watch them on your TV.
  • If you want to be able to view your photos on your TV and don’t have a device (like an Xbox 360 or DirecTV) that already supports this.
  • If your home is all Apple, that is you own Macs, iPad, iPod, iPhone – this is a good addition and it’s only $99.00.

Why I’ll pass on Apple TV – for now.

Apple TV is a cool device and for $99 one could argue I should just bite the bullet and add it to my home entertainment system.  In many ways it’s better than my Apple AirPort Express since I could control it through my TV.  But, that’s not good enough.  I think the next generation, yes I said NEXT generation may be the game changer.  This new generation of Apple TV is a pass.  Here is why:

  • Apple TV does not support 3rd party apps via the App Store.  If they would have had an App Store strategy in the Apple TV device, it would have rocked the industry.  Imagine apps from Hulu, NBC, CBS, ESPN, etc… It would have been a game changer, it would have disrupted a lot of the media companies.  I would have ordered one immediately.
  • Apple TV has no memory.  It should have had 32/64gb options.  I haven’t taken one apart, so I have no idea how much memory it has.  Having some memory in the device would have made the device a lot more interesting, especially to 3rd party developers.
  • No FaceTime support.  I just don’t get it.  Apple added FaceTime to the new iPod Touch – so I ordered one.  As I previously blogged, I predict Apple will add cameras and FaceTime to the next iPad.  Apple clearly missed an opportunity to add a USB port to Apple TV, so people could have added a camera.  FaceTime on Apple TV would have been a GAME CHANGER. Bring video conferencing to my living room! (note: it does have a Micro-USB for service and support).
  • Doesn’t support 1080p.  Apple TV is 720p.  Xbox 360 streams in 1080p.
  • I’m not going to rent TV shows, even for $0.99 – Sorry, I have a lot of other options.  Hulu via PlayOn, Netflix, etc… Just not going to happen.
  • If I play a game on my iPod Touch or iPad, I can’t stream the video ALSO to my big screen TV so my wife can watch me get annihilated by my son, CJ.
  • Speaking of games, if Apple TV supported the App Store and also had a gamer remote option, I suspect it would become a killer gaming platform.

Apple is so worried about having a defined revenue stream from movies and TV rentals they missed the bigger picture.  They could have taken over the Home Entertainment Center in millions of homes. Think of the money they would have made from selling apps and iAds for Apple TV.  Think of the Apple logo appearing on millions of TV’s for the very first time.  I believe this would have been a huge step in expanding Apple’s brand, especially in homes dominated by Microsoft Windows and Xbox 360.

My guess is, it’s coming.  The next Apple TV will have FaceTime and will support the App Store.  Apple is too smart to not make a course correction on Apple TV.  Till then, I’ll enjoy my new iPod Touch – that one they got right!

Tablet PCs Will Drive Next Round Of Innovation.

Introduction

It’s dangerous to make predictions, especially on the internet. However, I feel comfortable stepping out and placing my stake in the ground. I’m predicting Tablet PCs will drive then next round of innovation in personal computing.

Apple-ItouchI was one of the first customers to purchase an Apple iPod touch on September 5, 2007. After using the device for a few weeks my gut told me this device was a lasting fad. Yes, that’s a contradiction in terms, but my Apple iPod touch quickly became my go-to device I left on my living room end table.

When home, I found myself reaching for the touch to check my email, read news, read Facebook updates, play a game and even manage by Netflix DVD queue. I was no longer forced to sit in my home office or power-up my laptop. Donald Bell, a tech reviewer at CNET feels the same way about the iPad and wrote, “Apple has consolidated your Netbook, e-reader, gaming device, photo frame, and iPod into an elegant, affordable supergadget.”

It’s clear to me now, the iPhone and iPod touch were actually early prototypes of a new breed of Tablet PCs. The past three years has been a warm-up to what I predict will change how many of us will be computing in the coming years. Your next computer purchase for your home will likely not be a desktop, laptop or notebook computer. It will be a Tablet PC.

Developers Love The Apple Platform.

The iPod touch and its bigger brother, the new Apple iPad have lit a fire in the developer community. Over 250,000 applications have been developed for Apple’s iOS Operating System. Because these applications share the same operating system, it means most applications will run on Apple’s iPhone, iPod touch and iPad resulting in the developer’s ability to easily publish their applications to multiple devices. Apple handles selling these applications to consumers via the iTunes Store and also makes it easy for developers to make money by handing ad distribution via their iAd network. Add it all up and you have an extremely enticing proposition for developers to invest massive resources to create applications for Apple.

Apple’s Early Success Reenergizes Tablet Market

Apple sold over 3 million of their iPad Tablet computers in the first 80 days of launch. Impressive indeed, but it is only the beginning. Technology advancements have made it possible for Tablet PCs to gain traction because:

  • Touch screens have gotten really good. Multi-touch and better user controls have made it possible to hand these devices to anyone and they immediately understand how to use it.
  • Better battery life and weight. The iPad boasts a 10 hour battery life and weighs in at a trim 1.5 pounds. You can easily sit on the couch for hours with the Tablet in your lap.
  • These High Definition (HD) screens are just gorgeous. Watching a movie off Netflix is a very positive user experience. You can easily queue up your kid’s favorite Disney movie and hand it to them making it the perfect personal video device.
  • The adoption rate for 802.11n wireless routers in the home is growing. According to International Data Corp., slightly more than 30 percent of U.S. homes are set up for wireless use.
  • Applications have changed the way people look at software programs and distribution. Apple’s iTunes AppStore and Google’s Android Marketplace has changed the way consumers buy programs for their devices. Over 225,000 apps are available for the iPad, while the Android Marketplace just broke through 50,000 applications.
  • More and more consumers are purchasing devices in order to run these applications suggesting applications have become a purchase trigger.
  • A flood of Android based Tablets are right around the corner. Android smartphones are now outselling Apple’s iPhone. Expect Android based Tablets from Dell, Fujitsu, Panasonic and Sony soon.

Android Is Gaining Market Share.

The Android operating system was developed by Google and is based upon the Linux kernel and GNU software. The reason Android is taking off is because it is a free operating system. This reduces the cost of the unit giving hardware manufactures a greater incentive to develop for Android. Unlike Microsoft Windows or Mobile 7, Google gives the operating system away because Google Search and Google Maps are built into the operating systems. It’s safe to say, Google makes money on every single search.

Developers are also starting to pay attention to Android’s increasing user base. According to Google over 50,000 Android applications have been approved and another 50,000 are in the queue waiting to be reviewed.

The Netbook PC Confirms Market Demand For Internet Only Devices.

In 2007, Netbook computers arrived on scene. Designed primarily as an Internet device, consumers loved its low price and light weight. By the end of 2009 ABI Research reported over 35 Million Netbooks shipped. The NPD Group issued a report in August 2009 stating Netbook computers accounted for 20% of all portable computer shipments. Based on these consumer trends, there should be little doubt consumers are willing to ditch their Desktop PC and Laptop computers for something better.

 

New Technology Will Push Tablet PC Adoption.

Apple’s FaceTime video conferencing technology and Google’s Voice Actions – voice recognition technology will soon find their way to Tablet PCs.

The next iPad and iPod touch will likely have a forward facing camera and Apple’s FaceTime video conferencing technology. This will enable all of these Apple devices to video conference with each other. Since Apple has made FaceTime an open platform, companies like Skype with likely develop Windows, Mobile 7 and Android versions of their products compatible with Apple’s FaceTime technology. Video conferencing will likely go mainstream when FaceTime will work on Apple’s iPhone, iPad, iPod touch, Android Phones, Tablets, and on Skype who has over 40 million active users.

Soon, Grandpa will sit on his couch with an Apple iPad, in a video chat with his grandkids using an Android powered Tablet PC.

 

Google’s Voice Actions technology is simply amazing. Unlike my past experiences with voice recognition, Google has figured it out. It is near perfect right out of the box, without any training. You can send Instant Messages, find a contact in your address book, simply by speaking to the device. As this technology moves to the Tablet PC it will mean you’ll be able to simply speak to your Tablet PC and seldom have a need to use the touch keyboard.

 

Tablet PC’s Future Looks Bright

I’m not suggesting Tablet PCs will replace the desktop computer in the work place in the near future. However, they will find their place. AT&T states it sees an uptake of the iPad in businesses. Apple recently announced that half of the Fortune 100 companies were already using the iPad in some capacity. Craig Kanally, a trends editor for The Huffington Post writes: “I believe in this product, I really do believe it's the future of personal computing, and I believe in its potential as a productivity device. Now owning it, those beliefs have only grown stronger.”

I believe Tablet PCs will become the essential coffee table PC and the preferred PC for most consumers. Hundreds of thousands of applications, voice commands and video conferencing will be hard to resist. Maybe not this Christmas, but Christmas 2011 I bet you’ll want one in your stocking.

Apple SWOT

I was talking to someone about Apple today. Yes, they appear unstoppable and blew the doors off their most recent quarter. I decided to do a SWOT (Strength, Weaknesses, Opportunities and Threats) Analysis for my blog. Please comment on my blog and let me know if you agree or disagree with any of my bullet points. I had a tough time coming up with more weaknesses. I would really like to review this post in two years and see what we got right, and what we may have missed. So please, comment today!

Apple SWOT

Apple Inc. designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players. The company also sells various related software, services, peripherals, and networking solutions.

The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells various third-party Macintosh, iPhone, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores, and digital content and applications through the iTunes Store.

The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative customers. As of August 7, 2010, it had 300 retail stores, including 229 stores in the United States and 71 stores internationally.

The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Apple’s Strengths

  • Steve Jobs, Apple’s CEO and visionary.
  • iTunes Online Store is an excellent source of revenue derived from sales of music and applications for Apple’s iPhone, iPad and iPod touch devices.
  • Excellent brand loyalty by its customers. Many own multiple products (Mac, iPhone, etc.)
  • No debt, excellent cash flow. $3.2bn Net Income in most recent quarter.
  • Excellent Research & Development division that is able to deliver (premium) products that customers will stand in line to buy.
  • Global reach, Apple’s brand is strong around the globe.
  • They own their own Operating System (iOS), which is used across their entire product line allowing them to sell a complete product without paying large royalty payments to their competitors.
  • Apple is an innovator and technology leader.
  • Apple’s first time customers, buying iPhone, iPods and iPads, are buying other Apple products, including Apple’s desktop and laptop computers based on the most recent quarter.

Apple’s Weaknesses

  • Weak integration with Microsoft Office makes their product line less attractive to business enterprises.
  • Google’s Android Operating system is slowing Apple’s growth rate in the mobile phone market.
  • High price. Apple’s products are typically higher in price than its competitors. Price sensitive consumers tend to not consider Apple in buying decisions.
  • Apple tends to lead innovation and then watch other companies control the market once it has reached the tipping point and wider consumer adoption.

Apple’s Opportunities

  • iTunes will continue to generate sales from music and applications, however I believe in the next two years Applications for the iPhone, iPod touch and iPad will generate more revenue than music downloads. Apple receives a 40% gross margin on all application sales.
  • Cross product sales will continue to increase as more and more people choose Apple.
  • Product development cycles have shortened in the mobile phone market, giving Apple a bigger opportunity in upgrade sales. Excellent iPhone 4 sales are an excellent example. Consumers are willing to update their phone hardware every two years.
  • A new release of Apple’s iPod touch, featuring video chat, will likely be a huge revenue generator.
  • A new release of Apple’s iPad, featuring video chat, will also likely be a huge revenue generator.
  • Apple’s direct online sales channel will continue to grow, helping improve their already impressive gross margins.
  • Apple new iAd advertising platform for Applications designed for the iPhone, iPad and iPod touch could be a significant revenue generator.

Apple’s Threats

  • Mobile Phones based on Google’s Android Operating System.
  • Mobile Phones based on Microsoft’s new Mobile 7 Operating System.
  • Cheaper laptop computers from Dell, Toshiba, HP, Sony and IBM.
  • New Tablet computers based on Google’s Android Operating System could hurt their iPad sales.
  • Online Music Stores from Amazon, Yahoo! and Wal-Mart offering music cheaper.
  • New online music models that including renting the entire music library for a low monthly rate could change how consumers pay for music.
  • Technology moves quickly, new threats from new startups are likely.

Feeling bold?  Go on record now, use the comment below (on my blog) and we’ll see how we did in a year or so.

…Jim

Customer Loyalty Begins With A Smile

Customer Loyalty Begins With A Smile

It was a cold, dark January morning. The clock on my truck read 5:32am as I pulled out of my garage for a business meeting over to Portland. Two tons of steel was protecting me from the outside elements and I still shivered as the ice mist hit my windshield.

My brain needed a jolt so I headed over to Dutch Brothers Coffee, pulled up to the window, and was greeted with a big smile - “Good morning, what can I make for you this beautiful morning?” I’m charmed by her positive, friendly outlook. The combination of the friendly service and fresh roasted coffee resulted in a great way to start my day.

Can a smile change where you do business? As I drove to Portland I reflected on my own experiences and thought about the businesses I visit often.

Magazines like Entrepreneur, Fast Company and Small Business have been writing articles covering great customer service for years. I love the legendary story of the Nordstrom clerk who accepted a return of automobile tires from a customer, even though Nordstrom doesn’t sell tires. However, most businesses simply can’t relate to that tale, and never focus on what they can do to improve repeat business. Can it be as simple as a smile?

I used to be a fanatic Starbucks fan. There was a time it was the only coffee cup I would hold in my hand, even if the line was out the door. Then one day I was in a hurry and decided to try Dutch Bros. Coffee. When I drove up to the window I was greeted by a cheerful employee, glowing with a smile - “Good morning, how are you today?” She loved her job and it showed through her bright white smile and bubbly approach. We had a nice chat while she fixed my coffee. In short, we connected.

Dutch Bros. CoffeeA simple smile can be a powerful ingredient to creating your customer loyalty program. I tested all five Dutch Bros. Coffee locations near my home and each visit started and ended with a smile. Each was engaging, as if it was an old friend making my coffee. While making your drink they make an effort to connect with you on a personal level by asking how your day is going or to comment on the weather. It’s an enjoyable experience that leads to you looking forward to your next visit.

A smile is just good business. Businessweek’s Carmine Gallo writes about Del Taco, “Walk into almost any Del Taco restaurant and you'll find a counter card promoting the chain's new menu items. On the back of the card, visible to employees, is a reminder to smile and make eye contact with customers.”

Del Taco studied their customers and figured out they do respond differently based on how they’re greeted. Taking the time to make eye contact, greet them and thank them for their business builds customer loyalty. Customers will travel out of their way to do business with people they connection with.

Seventh grade student Mackenzie Westphal from a little town in Missouri tagged along on her mom’s weekly trips to Wal-Mart. On each visit she was greeted to the store by seventy-seven year old Clyde Smith, who prefers to be called “Grandpa” or “Smitty” by the kids and teenagers as they walk into the store. Smitty always took the time to ask Mackenzie how school was going and listened as she caught him up on everything going on in her life. Smitty and Mackenzie connected and as a result Mackenzie never missed the opportunity to go to Wal-Mart, just to see Smitty.

Clyde Smith, Smitty Wal-Mart GreeterOne day, Mackenzie decided to build a Facebook Fan page for Smitty so she could meet other people who also adored Smitty. The fan page quickly took off as word spread through the area. 500, 1,000, 2,500 people signed up and shared stories on how Smitty brightened their day with his contagious smile. So many people told Smitty about his Facebook fan page he had to go out and purchase a personal computer so he could read the messages and see the photos they posted. Today, Smitty’s Facebook Fan page has over 15,000 people.

Successful customer loyalty programs are often built on a solid foundation of good citizenship. Smitty is a great example of this. He takes the time to make his community a better place. He participates in the community he serves and he treats other people, including teenagers, with respect and dignity.

The smile and greeting also has another purpose. It makes you feel welcome to be in their store. For example, I like to shop at Home Depot and always take my dog, Morgan, with me.

As my dusty truck approaches Home Depot she starts barking in excitement and can’t wait to get in the store.

Home Depot Greeter SteveAs we walk into the store we’re greeted with a smile and “Can I help you find anything today?”, followed by a “Can I give your dog a biscuit?” Almost every Home Depot employee has dog biscuits in their orange aprons. I know this because Morgan seeks out each employee as we walk around the store. It’s amazing to watch her and to see her expression change when she sees an orange apron. Do not ignore the power of positive reinforcement!

Consumers want to connect with business owners and staff. This shouldn’t come as a surprise to anyone, just look at the popularity of social networking sites like Facebook. Marketing staff need to pay attention to this social trend and give their staff the tools and training to create a more “human” business environment.

Businesses are finding unique ways to connect more deeply with their customers. My wife works at a local bank and they’ll bake cookies and other treats for a monthly “customer appreciation day”. They’ll tell their customers about it for the preceding two weeks and remind them to stop by, even if they don’t have any banking business. All the goodies are made by the employees: cookies, brownies, cakes, apple pie, etc. which reinforces their social connection with their customers. For example, an apple pie will have a card next to it saying, “Debbie’s Apple Pie”. Customers know the employees made a true effort to appreciate them.

Customer Loyalty ProgramsAs each customer walks into the bank they are greeted by name and a smile. These are not just their customers, but also their neighbors and friends. These monthly customer appreciation days have become a community event. Customers connect with each other and with bank employees. For many of these seniors, it’s the one event they never miss. It’s a small local bank with a big heart. Many of their customers stop by the bank a couple times a week just to say “hello” and exchange a smile.

For the bank, this program is not that expensive. They allow the employees to accrue “comp time” equal to the time they spent creating the “goodies” for the event. It makes the bank a fun place to work and it gives customers and employees a chance to connect on a deeper level.

Customer Loyalty - SmileAs a business owner you probably spend a lot of time thinking about “Customer Service” and how to make the experience great. I want to challenge you to take it to the next level by focusing on “Customer Loyalty” and how to really connect with your customers. Ask yourself these questions:

  • How are your customers greeted? (Smile, eye contact & verbal greeting)
  • Does your staff connect with them on a personal level?
  • Do your customers get excited by the prospect of visiting your business?


Don’t make it harder than it needs to be. Start with a smile and go from there. It worked for Smitty, Home Depot and Dutch Bros. Coffee. Remember, customer loyalty begins with a smile.

...Jim

Getting a handle on the Gulf Oil Spill – What the White House can do.

I normally wouldn’t touch a subject like this, because as a rule I think we need less government, not more.

However, the Gulf Oil Spill has become a national crisis with BP completely dropping the ball. Listening to BP’s CEO and marketing machine, it reminds me of speeches from George W. Bush where he would say, over and over again, “we’re working really, really hard…. this is a really hard problem”.  Clearly, BP just wasn’t prepared for this type of accident.  That is their biggest failure, they didn’t spend any of their $7 billion in net cash flow, each 90 days, on making sure they have back-ups, on back-ups.  They should of hired NASA to review their disaster plan.

How is this national disaster different than 911? With 911, Mayor  Rudy Giuliani TOOK charge and coordinated all the efforts on the ground. Was he perfect? No. Did he lead, hell yes. Mayor Giuliani didn’t focus on his speeches, he focused on his action plan, what assets he had on the ground, what he needed and then went to work. There was no question Mayor Giuliani was the leader on the ground. Obama, has once again failed to lead. I, like many of you, give him an “F” in his handling of this national environmental disaster. I keep waiting to see an action plan from the white house and all I see is political finger pointing.  Obama can use his LOUD VOICE all he wants, it isn’t going to help solve the problem.  So I’m going to give him one suggestion, which would really help…

Put Vice President Joe Biden in charge of the recovery.

Golf Oil Spill, Joe Biden and the WhitehouseEven though he lacks any experience or leadership, he does have the ability to cut through the red tape. He should be acting as the full time Spill Recovery Chief.  His office should be moved to ground zero and he should bring the full weight of the white house with him.  What can he do? He can cut through all of the red tape. If you listen to the five state governors, house and senate representatives of the gulf, they all share a common message – they can’t coordinate all of the federal and state agencies to get on the same page. BP comes up with a plan, then must get it approved by the  U.S. Coast Guard,U.S. Environmental Protection Agency, Fish & Wildlife, FEMA and 20 other state and federal agencies. Each has veto authority.  As Alabama’s Governor Bob Riley has said, “We have no idea who is in control…there is absolutely no point where we ever have a resolution to any problem.” It’s truly a mess since any agency can say, “no you can’t do that” forcing them start the entire process over. That is why nothing is getting done. That is why they are not trying solutions like using hay to soak the oil, or testing the 32 centrifuge machines manufactured by Ocean Therapy Solutions (the company Kevin Costner funded). He could clear the way to get more booms, skimmers, create more barriers and try other solutions.

If VP Joe Biden just solved this problem and created a proper chain of command to bring focus and leadership to an action plan, it would be a step in the right direction. Give the Governors the air support they need and get all the agencies working together. Nothing could be more important for VP Joe Biden, or the white house for that matter.

…Jim

The digital home should be 100% wireless, period!

It’s 2010, I going to officially announce the time for wireless home networking is now. 

So, to cable companies, stop selling cable modems that don’t combine 802.11n.  Sure, the wireless spec will continue to improve as all technology products do, so quit being scared to help your customers go wireless.  With great devices like the Apple iPAD and the new XBOX 360 slim, the home has gone wireless.  WiFi Digital Home and AppleAdd the Apple AirPort Express next to your home theater receiver and you can seamlessly play your iTunes music through your home entertainment equipment.  In order for your customers to improve their lives with these products, they need WiFi in their home.  They shouldn’t have to go out and purchase a wireless router to get it – that is so yesterday!

XBox 360 Wifi 802.11n Digital HomeMicrosoft’s move to add 802.11n to the new XBOX is exactly the right move. Critics will say it should have been there from the beginning, I say, “better late than never”. As an example, look at DirecTV, they have been working on video on demand (over the internet) and whole house media strategies for the past two years, yet their latest DVR, the HR24-500 lacks 802.11n.  Whoever is running their Product Management should be fired.  All of the DirecTV DVR’s and Receivers should be networked in the home.  You should be able to watch any program, on any TV with a DirecTV receiver. You should be able to watch your programs on your iPad, iTouch or PC.  Frankly, you should be able to also watch it in your hotel room while you travel.  You should be able to do ALL of this without a single wire connecting the DirecTV receivers and you shouldn’t need a SlingBox. Slingbox allows you to watch your TV on PC/Laptop, mobile phone, iTouch and iPad – from anywhere via the web.

DirecTV product development is a mess and from reading the comments on the DirecTV Message Forums it’s clear the HR24-500 is a buggy device that lacks any imagination. Come on DirectTV, join the wireless world, add 802.11n to your DVR and Receiver lineup.

HP Photosmart Printer 802.11n WiFiMoving on the Hewlett Packard, I have to hand it to them. Most of their printers now have 802.11n built right in. I recently purchased an HP Photosmart Plus All-in-One Printer with WiFi built right in. It joined my wireless home network in less than 5 minutes out of the box. We can print documents and photos from any computer in the home. With their iPhone/iTouch app I can send photos directly to my printer. What is very, very cool is the fact their software supports wireless scanning, meaning I can scan photos or documents from any wireless PC in the house.  This means I don’t have to do all the scanning in the house anymore, the printer is TRULY a device for all members in the home.  What’s next for HP? Soon these wireless printers will be accessible via the internet.  This means, you’ll be able to send your favorite photo directly to Grandma’s printer, if that printer is connected to her home network and configured for remote printing.  You can read the release here, as there is a lot more to the release, especially as more and more applications move to the cloud.

So, I want Samsung and LG to add 802.11n to their TV’s. I also think Sony and Marantz should be adding 802.11n to their audio receivers – then I should be able to send any auto file directly to these devices using DNLA – The spec for the Digital Living Network Alliance.

What other devices in the home should also have built in WiFi? The list could be endless, how about:

  • Washers and Dryers so you could get updates when the cycles are done.
  • Honeywell Thermostats so you can control the upstairs from your iTouch.
  • Comcast, Charter, Cox Cable – all of your receivers should have WiFi built in.

Those are some of my thoughts, do you agree?  What device do you want WiFi enabled?  Add your feedback below.

…Jim

How businesses should be using Twitter.

Admittedly, Twitter is an application that most business people never understand. You need to live the Twitter experience and study how other people are using Twitter successfully to connect with existing customers while finding new sales prospects. My goal in this blog post is to highlight how businesses should be using Twitter. I also plan to give you some examples of how businesses in different sectors should be taking advantage of Twitter.
Business and Twitter GuideFirst, if you own a business and you’re new to Twitter or still, just don’t “get it”, let me give you a quick overview.  Twitter is a micro-blogging application designed to send updates or notices to a group of followers. The founders picked 140 characters because that was the limit on most SMS phones for text messaging. The application quickly found a home beyond cell phones where 140 characters could have easily been expanded. However, something interesting happened by accident, the 140 characters made people “get to the point” by using their 140 characters wisely.
If you own a small business and wonder how many people in your local area are potential customers, check out a site called LocalTweeps (http://bit.ly/6Sl16o) and do a search by zip code.  LocalTweeps represents less than 1% of the people in your area using Twitter, but it’s a good place to find the people in your area that have established followers.  You should add your Twitter account to their free directory while you’re on their site.
Why businesses should use Twitter.
For the purpose of this blog post, I’m only going to focus on two reasons you should create an active Twitter social media program. Obviously, there are more, but let’s stay focused on these two:
1.       Find new customers, sell more products and services.
2.       Improve your relationship with your current customers and stay connected with them.
Every message (known at Tweets) you send via Twitter should keep the two reasons in mind. If you feel compelled to share messages off-topic, then create a personal Twitter account and use that for friends, family and colleagues who might want to hear about such things. Your Twitter account represents your business brand and should stay on point; before you send a Tweet, you should make sure it meets our two goals (1&2 above).
Why is staying “on message” important?  Because businesses that use their Twitter accounts to post irrelevant content reduces the attention rate of those people following you. Most social media ad agencies suggest that the average Tweet is read by 1% to 3% of the followers. This is about the same rate for direct mail. So, if you have 1,000 followers, a high read rate would be considered 30 reads, the low end is 10 people seeing your message. If you have 200 followers, we’re talking about 2 to 6 people seeing your Tweet.
I think you’ll agree with me, those are discouraging numbers. However, if you follow my advice and make sure ALL of your Tweets meet our two stated goals, you can significantly improve your statistics.
You need to be able to measure every Tweet you send, so I recommend you set up an account on bit.ly (http://bit.ly) which will allow you to create tiny URLs  (web destinations) that you can track. You’ll be able to measure how many people click on your links within your Tweets.
Learn from a great example.
My favorite example to use is Trent Reznor, the front man for the rock band Nine Inch Nails (NIN). I don’t want to get caught up in the current gossip of the band, what I want to discuss is the fact Trent’s Twitter (@trent_reznor) account currently has 636,648 followers. Look at this chart:

Trent Reznor, Nine Inch Nails

On March 8th, 2009 he had 13,000 followers, April 1st 191,000, May 1st 417,000 – you get the picture. This is extremely impressive. You don’t see this type of explosive follower growth on many new Twitter accounts (On January 1, 2009 he had 31 followers).
So, what happen? Trent connected with his fans. His Tweets were relevant to what his fans wanted to read. Trent used Twitter to get personal with his fans. It was as if each Tweet was a personal message directly to a friend’s cell phone. His fans (customers) we’re reading his Tweets and taking a personal interest in his products and services (music and events).
Then as they geared up their concert tour in March & April 2009, Trent started sending Tweets like “Giving away free tickets for our concert in West Palm Beach, get ready!” Ten minutes later, he would Tweet “First 10 people to visit http://www.nin.com – get free tickets”. The traffic nearly shut his website down. He would continue to Tweet about the concert tour, how they came up with pricing and other things about the band. Then you would see another Tweet, “Giving away 10 free tickets to our concert in Phoenix, stand by”. A few minutes later, another Tweet, “First 5 people to send me a DM gets two free tickets.” A DM is a Direct Message you can send via Twitter. A few seconds later, he would Tweet, “Got the Winners, thank you for trying. Winners are….” And he would include the five people’s Twitter usernames in the Tweet so we could all congratulate them.
Word spread throughout the NIN fan base that Trent was giving tickets away via Twitter. People would RT (ReTweet) Trent’s message announcing the winners.  More and more people started following Trent, as you can see from the graph.
However, besides building a quick following of fans, unlike most celebrities on Twitter, Trent’s messages were being read by way more than 3% of his followers. People were glued to Trent’s Twitter page (http://www.Twitter.com/trent_reznor)  and read each and every message he posted.  Why? 1) They were trying to win some free passes to his concerts and 2) his messages were relevant to his fans (customers).
Radio stations have used these methods since they first went on the air. However, most people don’t call all their friends and tell them to listen to a station giving away concert tickets. Twitter takes viral marketing to the next level by allowing people to easily ReTweet (RT) a message thus repeating the message to everyone following them.
The power of ReTweetDon’t underestimate the power of people forwarding your message on to their friends by using the Twitter’s RT feature. You can improve your chances of people repeating your offer, simply by asking people to RT when you send your message.  Each time someone ReTweets your message, all of their followers see the message and can also ReTweet it.  This is why Trent’s follower count grew so fast, friends were telling their friends about Trent’s free tickets resulting in over 600,000 people reading each and every one of Trent’s messages.
Trent would also Tweet about things that happened backstage or would comment on the location or the fans in attendance.  His Tweets were written in single person as if he was talking to you as a friend.  They’re insightful and real.  He also doesn’t go crazy with the number of Tweets he sends. For example, he’s around 500 Tweets for the year while Ashton Kutcher has sent over 4,000. My guess is, more people actually READ Trent Reznor, even though Ashton has an impressive 4 million followers.
Examples of how small businesses should use Twitter.
Many of my comments so far have been “big picture” ideas, what I want to do now is talk about specifics. I’m going to use “small business” examples so I can be laser focused. If your company is bigger you can easily scale these ideas up.
Local Restaurant
For goal #1 – Tweet about SPECIAL coupons only available via Twitter. Have the weekly coupons go out once a week. Then when business is slow, Tweet a special offer – first 5 people to DM get a buy 1, get 1 free or other compelling offer.  Make it big enough, if you’re afraid it’s too big of an offer; limit it to the next person who DM’s you. Need larger parties at your restaurant? Simply create a program to support that.  Free bottle of wine for a table of six or more is a great example. It’s important when you ask people to DM you that you send another Tweet that a winner has been named.  I like naming the winners by their Tweeter username just to keep it all on the up and up.  You can also Tweet about coupons that are going to appear in the paper or mailbox to make them aware of it.
For goal #2 – Hand out business cards with your Twitter name and ask people to send you a DM about the service or food. Put a coupon on the back of the card and they won’t throw it away. Ask people to Tweet about their meal and to include your @TwitterName – reward one person a week with a free cocktail or glass of wine. Catch your employees doing something right and Tweet about it, things like “I’m so proud of the great service Helen gave the Johnson party of 6 last night.  Great job Helen!” then watch your customers come in and congratulate Helen as well, or ask for her by name.
Local Golf Club
For goal #1 – Give away a free round of golf, after 2pm. You can place limits like, must not have won in the last 30 days, if needed.  You can modify it as needed, like free round with a full price round. Is the restaurant slow? Offer a free round of golf with a lunch meal of $25.00 or more. Pro shop needs more traffic? Offer a free towel with the purchase of $50 dollars or more.  Do your pros need more private or group lessons? Make some incredible deals for immediate bookings and don’t let a block of time go unused. Again, as in the previous example, make the offers unique to Twitter so you can track and measure.
For goal #2 – Tell people about any hole in ones. Announce the top place finishers in the weekly men’s and woman’s league and tell people how to join those leagues. Tweet about all charity events at the club.  Surprise people with TwitPics (http://TwitPics.com) of best dressed and pictures from any theme events you had. Someone buys a new set of clubs, take their picture and post it on Twitter. Keep it social and fun.
I hope some of these examples help bring you some clarity on how to use Twitter for your business. I think it’s also helpful to discuss what I perceive as “half baked” implementations by companies who should know better.
@IZODOutlet : Active inspired casual sportswear and accessories, for use on or off the course.
IZOD has 704 followers. They consistently make two mistakes: 1) their offers are not special. Anyone with their rewards card gets the deal. All they are doing is remarketing their current programs via Twitter. There is no incentive to follow them, let alone read their Tweets. 2) They seldom use any link tracking with their offers, they drive everyone to http://www.izodrewards.com instead of using a tracking url like bit.ly – this forces them to rely on their website analytical tools to measure their Twitter hit rate. Recommendation: track everything with bit.ly, make offers on Twitter only available via Twitter and make the offers so good, people want to ReTweet them.
@mtbachelor : Oregon's largest ski area.
Mt. Bachelor has 2,300 followers and seldom makes any offers, let alone unique offers on Twitter. I believe this is more of a personal Twitter account, I doubt it is run by their marketing department. Recommendation: On extremely slow days on the mountain offer $20 ski passes to the first 10 people to send a DM – good for that day only. When the ski shop is slow, offer special deals on Demo’s to the first 10 people to mention the special in the ski shop.  When you have a Host working the lodge, and the lodge is slow, offer 10 free coffees to the first people to DM. Offer a free fountain drink with the purchase of any food item to the first 10 people to post pictures on Twitter, using TwitPic. Look at areas of your business that need more foot traffic and use Twitter to make special offers to drive traffic to that area of the resort on that day. Reward people for reading your Tweets.
So there you have it.  If you need specific advice for your business please feel free to contact me.  If you would like me to work with your sales and marketing staff to build a social media program for your business, I would be happy to do so.
Twitter can be an extremely useful sales and marketing tool for your business.  Just remember, business uses are different than the way people use it to communicate with their friends.  Keep it relevant, on point and make sure each Tweet meets either goal 1 or 2 and you’ll be on your way to a successful social media campaign.
Happy Twittering and let me know if you have examples for your business that has worked well.

How I got my employees to embrace change and give me more feedback.

I’m from the camp: If your company is not growing, it ** by definition ** is dead. You just haven’t been pronounced dead yet!

Change management is a critical skill every CEO must have in there tool kit. Inviting change in an organization you founded is different than walking in the door as a new CEO, with a turnaround plan in your briefcase.  The later was the case at Web Associates and Starbase where I was recruited by the BOD with a mandate to get the companies on a road to profitability, immediately. Failure would mean bankruptcy for the company, loss of jobs for all the employees and a zero return on investment for the people who invested real money to get these companies going.

Now, I want to step back a second and say that the process of change is constantly going on within any good company and the processes I am going to talk about should be a part of any good manager’s regular routine.  During times of major change, such as a major company turnaround, these skills are even more critical.  You can use MBWA as a tool after you have announced a major change to walk around and find out how the employees perceive the announced change.  Are they supportive and excited about it or are they reluctant and feel that it is going to cause them more work and thus fight the change that was just announced.

You must realize that change can and should happen from both the top down and from the bottom up.  Here I will discuss some ideas for soliciting change from the bottoms up.

You’ll never know exactly what is going on in the company if you spend your days in meetings, on the phone or in your office staring at your computer. In addition, change won’t happen simply because you ask for it. If change is not embraced by the employees of the company, it will fail, meaning you will fail. I see it time and time again, a turnaround CEO comes in and 2 years later is shown the door with little evidence he/she was ever there but maybe a new marketing plan. Change was not embraced by those within the comany and the most common reason for failure was that the employees were never engaged in the change process or asked to take part in the company's turnaround.

Here is the strategy I used:

Change Management By Walking Around (MBWA)

Management by walking aroundI scheduled time in the morning and afternoon where I would get out of my office and go walk around and talk to my employees, mixing up when I would wonder around. I planned my walk around time so I would hit each department before I started over making sure I didn't just hang out in one or two departments. I would introduce myself as if they didn’t know me and I would take some time to find something out about them. Things like how long they had been with the company and why they picked this company to work. I thought of it as fishing. Random questions with no right/wrong answers just to get a feel for what people were thinking and hopefully to allow them a little time to relax and be him or herself. I would always finish the conversation with, “Tell me about what programs or processes are going well and why?” and then “What changes can we make that would improve the way we do things?”  I always asked both questions to better understand what was going well in the organization from their perspective as well as what they felt needed to be fixed.

Now I must admit, I had a lot of people respond with, “Huh?” They thought it was a trick question or couldn’t believe that their CEO was asking them their opinion. 99% of the time they just said, “Nothing.” and I moved on to the next department. I had a lot of people tell me they never met the CEO before. When my allotted time was up for the morning or afternoon I would go back to my office and write down all of my notes from walking around. I would check people off the organization chart and think about any comments made to me. The first couple of weeks people were in shock or scared when I came around because this was a new process and they had a lot of apprehension about what was happening and can they trust me if they were truly honest. I knew trust was a two-way street and that I had to earn their trust as well. I was committed to giving this process some time to work.

I got feedback from my management team that people we’re talking. “I was different.” That is a big first step with introducing change; people need to know “something is different.” As people would tell me about problems they had doing their job, it gave me a chance to work with my management team to engage them to solve these problems.  I got to assess my direct reports, figure out their strengths and weaknesses and also coach them to be better leaders. By teaching them, I was changing them and the organization was changing. 

Asking employees about what is working and what is not is a double edged sword.  If they tell you something that is not working and you do nothing, how likely are they to tell you something the next time you are in the area, not very.  This is why it is important that you follow up with employees on what you heard and what changes you are willing to support or not support and why.  This at least tells the employees that you heard them and are willing to change, or that you heard them but for a specific reason this problem will not be addressed now because…….

People started talking about the changes and now when I walked the halls people would get out of their chairs to say hello to me. Employees stopped hiding the truth and started telling me what was really going on. Now I had the information I need to work on improving processes, communication and identify where more training was needed.

When you have offices around the globe like Starbase Corp, you must manage your time when you’re visiting the office in order to walk around and talk with employees. They know you’re there and if you fly in, attend a meeting and fly out without a single “hello” you are sending the wrong message. I seldom popped in/out of a remote location. If I did, I would just send a note to all the staff in that remote office usually  telling them why my visit would be a short one. Unless I was firing someone in person, I told them I was there to work on a process or problem and was on a tight flight schedule.  The fact is, these people know what the problems are before you do, so trying to hide or dodge them is a joke and they’ll be the first one to say so behind your back.
 
When I visited one remote office the staff had told me the previous CEO had only visited once, when they purchased the company four years ago and had never been back. However he came to their city every time the Lakers were in town. They felt like unloved step-children which resulted in an office that just did the minimum to get by.

Also, when you go to visit a remote office  invite one of your direct reports who has never been to that office and take them with you. Let them walk around while you do your meetings. I guarantee you’ll have something to talk about on the flight back! In addition, when that office calls them about a problem they will be more engaged in getting it solved.

If you haven’t walked around lately, get it on your schedule. Even if it’s just every other day or once a week, get out and do it on a regular basis. Encourage your direct staff to do it and to send you and the other direct reports a short write-up on what they found and what, if any, actions they are going to take or assistance they need.   After you do, leave me a comment and tell me if you noticed any difference.

Eat Your Lunch In The Break Room.

If you’re going to have lunch at the office, eat in the break room.  Sit next to someone you don’t know. If you see someone getting ready to each lunch at their desk, ask them to join you in the break room. Same goes for breaks. Know when people take breaks and hit the break room at the same time.  And please, if you have an executive coffee room, don’t use it every day, go where your people are. If you Eat lunch with your staffspend every minute, break and lunch with your direct reports, you’ll never get the pulse of the company.

Once a month I would actually invite people to lunch. I usually invited 5 people at a time and no, we did not go to the conference (executive dinning) room to eat. I took them off site, usually some place we could walk to. I like to mix the group up with people from different departments when I could. I’m not against taking people from one department if I really needed to get them to open up about what is holding back progress in their team. However in these situations you usually need to have your direct report with you, which is why I like to mix it up and leave the direct report off the invite. Plus I like to see the dynamics of how people interact with each other over a meal. There is something about “breaking bread” that gets people to open up. 

I require each of my direct reports to have lunch with someone in their department each month. Again, I would prefer they were not their direct reports and if possible, “skip a level”. I would ask them to email me a summary of how lunch went. I’m interested in how the employee responded to the manager’s question, “Is there anything I can help you with today?”

All Hands Meetings.

all hands meetingsThese are meetings with the entire company in attendance.  I held them each quarter.  I would give them my report on the health of the company, and then I would give each of my direct reports a couple of minutes to report how their department did. We had a small set of metrics that measured the health of our business and I wanted all employees to know these metrics, how they were measured and how they contributed to them,  Then we opened it up to Q&A. We also allowed people to submit questions via 3x5 cards. It’s a candid session and not all of my answers are popular. My policy is to be honest and truthful with my responses and always made sure to let people know what I expecting of them.

Often in dysfunctional organization they need to be reminded what good performance/behavior looks like. I remember having one heated debate in front of 200 employees about the importance of getting to work on time and that I expected people to be at work by 8:30am. We had some people showing up whenever and leaving whenever feeling if they just got their 40 hours in each week, all was good. The fact no one could ever count on anyone being at their desk at any specific time didn’t seem inconsiderate to them even though the rest of the workforce had no idea when a co-worker was going to be at work each day.  Again, if the company was healthy, productive and profitable I can be as open as the next CEO. But when it’s on life support holding on for dear life, the turnaround CEO must focus on process improvement, structure, goals and accountability. Culture comes later.

All Hands Meetings can be held with multiple offices. I like to move around and have difference offices “Host” the All Hands Meeting by having all my direct reports go with me to the office who is hosting. You can use conference calling and streaming video to get everyone involved. It’s affordable if you plan and execute it correctly. Make it a priority to be accountable to your employees every 90 days and they will in turn, be accountable to you. Tell them your goals, what you hit, what you missed and why. Ask them to do the same. They will respect you for it. Most companies have never had an All Hands Meeting. Please leave me a comment and let me know if your company has them and if so, how often.

Use of Social Media Technology

Take a look at your company Intranet and see if you’re keeping up with tools to empower your employees to share their ideas and comments with you. You and each of your direct reports should write a Corporate Intranets and Social Mediamonthly blog where you discuss important, relevant items to help improve the company or department. Allow people to comment anonymously to these blog entries. If people do comment make sure you reply to some of the comments personally. Don’t have your admin do it! People need to know you read your own blog!

Create messages forums for each department, add polls and surveys and ask questions. Be bold, ask questions like: “What changes are not working?” and “What are we doing right?” You can do other things as well like allow employees to comment on your Products, Services, Marketing Materials and Press Releases. Create the tools where they can voice their views. I would tell employees it doesn’t bother me if you want to stand around the water cooler and bitch about Management as long as you’ve written to management and voiced your complaint first. Set the expectation and give them the tools to communicate with you. If you do that and do something about their complaints, the water cooler will never have a crowd.

Thanks for reading.

....Jim 

Adding “fun” back into a golf lesson, Tetherow’s Bob Duncan takes “On-Course Lessons” to a new level.

Forward: As a Change Management Executive I’m always interested in businesses that break away from traditional business methods. I applaud businesses that don’t get caught up in “it’s always done this way” and “you can’t do this and that”. I find it takes a lot of courage for management to ask “why not” and say “lets give it a try”. Tetherow Golf Club Management Martin Chuck and Teaching Pro Bob Duncan are examples of men who are working to change the way people learn the game of golf while building a business where people choose them over others in a highly competitive business.

This is my third season playing golf. I, like most of my friends in the technology business, didn’t play golf while we were building our high tech businesses. I simply couldn’t fit in the 4-5 hours to play a round of golf, let alone find time to practice to improve our game. Sixty hour work weeks were not uncommon for me and I always set aside Sunday for my family. Golf wasn’t an option. When I moved to Bend, Oregon three years ago, Debbie and I decided to join a  local private golf club as a way to meet new people and find something we could do together.

The Rules of GolfI  must admit, I was a bit put off by golf at the get go. You have to dress a certain way, they hand you a pocket book on the “rules of golf”, its expensive and it seemed like every round of golf I played with other members, people were telling me what I couldn’t do. I found it to be a very stressful and frustrating game. Here I was new at the game and fellow members were telling me I couldn’t move my ball, I had to keep hitting balls from the T-box until I got one inbounds (even though I just hit 3 balls into the woods and I wanted to go drop a ball somewhere). As a new golfer, I enjoyed the difficult challenge of improving my game, but I didn’t enjoy the game all that much.

The first two years I singed up for every clinic and took private lessons from each of our three pros. It seemed each pro changed something the previous pro taught me which often made my results worse, not better. The joke around the club was, never take a golf lesson before the weekly Men’s game because it will screw you up. In each case, all of my private lessons were taught from the driving range and lasted about 35 minutes. We have a 5 hole, par 3 loop course at our club touted as a “Learning Center” but none of my private lessons were taught there. None of my pros ever asked if I wanted to play a few holes on the course, let alone nine holes. It wasn’t how they taught golf, therefore they don’t offer it as an option.

Then, late last year I was playing (or should I say struggling) in the Wednesday’s Men’s game when a fellow member asked why I was using a nine degree driver from each tee box, since I wasn’t having any success with it. I think he was getting tired helping me look for my ball all the time. I started each and every hole in trouble. He suggested I use my 3 wood instead and leave the driver in my bag in order to reduce some of my risk from the tee box. That little adjustment helped and we didn’t spend the rest of the afternoon searching for balls. He asked if I was taking lessons and from who. I told him I tried to take a private lesson each week from one of our pros and then he suggested it might be time to try a different pro.

Bob Duncan, Tetherow Golf, Bend, Oregon Bob Duncan is a Teaching Professional at Tetherow Golf Club in Bend, Oregon.  You may have heard of Tetherow, designed by acclaimed Scotsman David McLay Kidd, who also designed Bandon Dunes on the Oregon Coast. When I called Bob to set-up an appointment he told me to plan on an hour and spent every bit of it writing notes about my swing, game and talking about my short and long term goals. Our first lesson went a little long and for the first time, I felt like I had a Golf Pro who was truly investing in making me a better golfer. He had me hitting the ball better than I’d ever hit it in the previous two years. Bob has an easy teaching style and made small adjustments to my golf swing to accommodate my body type, abilities and hand grip that was comfortable for me. The next week we had another lesson, not rushed which was a refreshing change from previous private lessons I had taken.

When I arrived for my next lesson Bob said, “hit 20 or so balls and warm up”. I did, he responded with “great, how much time do you have today?” I told him I had an hour or so and he responded with “great, jump in this cart”. We drove out to the course and found a gap between groups. We walked over to a green and he had me toss a couple of balls toward the pin from every direction, watching how the ball broke. Then we drove out on the fairway to about 130 yards out and dropped a few balls on the ground. He explained why balls go left, right, up, down, shorter, farther based on the ball’s lie. He then had me hit a few balls and we talked about each shot, collected our balls and headed back to the club house. For me it was a fresh teaching style. It wasn’t just about the golf swing. Bob talked about club selection, lies, the target and if I was going to miss, analyzing the best and worse places for your ball to end up.

I’ve taken 15 or so private lessons from Bob. We often use the driving range to warm up, then we head out on the course and play a hole or two. We pick days and late afternoon’s when he can find an open slot and not disrupt any players. If the course is busy, we practice on their loop course. Bob finds the driving range limiting and would rather be on the cut grass with real target and goals. I couldn’t agree with him more. He has changed my attitude about golf. When I approach each shot I have a better idea of what the ball is going to want to do, based on the lie. When I hit a bad shot I have a better idea of what my correction should be. Bob Duncan’s business card says “Teaching Professional” but for me, he’s my coach.

Tetherow Golf Review Most of our lessons finish with playing a hole of golf on the course if we can. He truly enjoys “playing lessons” because it gives him a chance to see how I play and what corrections I need to make. The golf course offers an unlimited amount of variables for him to show me. The Driving Range just can’t compete with that. I have to give the management at Tetherow kudos for supporting Bob’s teach style. Most golf courses are just too uptight to allow their teaching pro's on the course to teach.  As I stated earlier, I think golf as a sport is pretty uptight already, which is why so many people don’t play it. Tetherow’s attitude seems to be: Enjoy our beautiful course, thank you for spending time here, have fun, and come back.

I realize this approach isn’t for everyone. However, golf as a recreational sport is suffering, especially in the younger, working class. In order to reach a wider demographic, private golf clubs need to offer different products. Before loop courses, driving ranges and learning centers, teaching pros would teach on the course. Most of the pros I have met only want to play a round (or even 9 holes) with the good golfers, people with low handicaps. That is ok, as long as private clubs have their own Bob Duncan who has the skills and patience to work with us newbie, high handicap golfers. Bob has actually added himself to my tee time twice which speaks volumes to his interest in helping me become a better golfer.

I know I spend more on lessons then the better golfers, so it makes good business sense to have services for golfers like me. If I give up on the game, then I give up on paying for lessons, buying equipment and paying dues so it’s in the private club’s best interest to recruit new members like me and then have a program to keep me engaged.

Yes my game is getting better, my handicap is improving, I’m in more control of my game. More importantly, I’m spending less time looking for my ball and more time helping others find theirs.

If you’ve given up on golf lessons or find them boring and a waste of time and money as I did, I encourage you to reach out to Bob Duncan. He can be reached at 541.388.2582 or via email at bduncan@tetherow.com 

Will Twitter ever make money?

Twitter is everywhere, as I write this blog entry Ashton Kutcher (@aplusk) is approaching 2 million followers. @TheEllenShow has moved into 2nd place with 1.6mil and @cnnbrk is in 3rd with 1.5mil followers. According to TweetRush, about 8-9 million Tweets are sent each day.

When I explain Twitter to my family and friends, the question always leads to: “How does Twitter make money?” Currently Twitter is working on managing the user experience, keeping the site up and running and learning how people and companies are using Twitter as it evolves before they announce their revenue model.  I must admit, each week I see a new revenue model for Twitter, its overwhelming, so I kind of understand their reasons to not jump to soon.

It doesn’t mean I can’t stick my neck out and write what I would do. So here I go.

#1 – Ask your Followers.

Evan Williams @ev is the CEO of Twitter. My advice is, use Twitter to get advice from your followers. Engage your followers to give you a top ten list on what they would be willing to pay for. You might be surprised by some of answers you get. Sure, you’re going to get a ton of messages from people that want it all FREE. You’ll have to weed out all those responses to get to the really good ideas. If you engage your future customers in developing premium features, they will embrace the change as their own.

#2 – Allow people to opt-in, for an ad a day.

Create categories (Technology, Fashion, Travel, etc…) and allow people to opt-in to get an ad delivered to their Twitter account each day. Label the category, Please support Twitter by opting in to get one ad, per category, each day. If you really want to dial it in, allow people to also opt-in and provide their gender and age. Don’t make this information available via your API. With an estimated 32 million users (CNBC), they could easily become the king of permission based direct mail.

#3 – Advanced Search Options.

Currently, Twitter Search returns results for about 3-4 weeks, then the content disappears. I’m not sure if the content is purged by Twitter or simply not returned in the search results any longer. Businesses would like access to this content to find new customers, see what people are saying about their brands and for market research. You could create a premium service for people who want access to this content. Another premium service could be to allow people to search for content based on a specific date/time range. Search for Obama while he was giving a keynote address is an example of returning relevant results based on a specific event.

#4 – Create a Premium Twitter Platform.

As you come up with new features to add to Twitter, consider adding them to a Premium Account type. Some of the ideas that I’ve kicked around are: Auto Introductions, give me a digest of tweets based on keywords or phrases and allow me to check a box on the people I want to introduce myself to. Allow me to introduce myself to hundreds of people a day and keep track of the people I have already introduced myself to and don’t repeat. Hide @replies and other ideas you’ve come up with. My point is, put all of the new features in the Twitter Premium or Pro version. Give people an upgrade path and let them decide if they need the new features.

#5 – License the API.

License the API and the API key. Twitter has a lot of software companies making apps for Twitter and embedding ads in these apps. Twitter should consider making money from these apps. They should be paid by the cell phone companies to have Twitter added to their phones. Its like Bluetooth. It’s a selling feature and Twitter should benefit.

Those are my top five ideas. Let me know what you think via the feedback link.

…Jim

DV Jim at sea on the USS Lincoln

JimHarrer.com

(949) 607-0980

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