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The Social Engagement Rankings of the Top 15 Cosmetic Brands

The Social Engagement Rankings of the Top 15 Cosmetic Brands

Why did Facebook develop EdgeRank?

Are you one of those brands spending hundreds of thousands or millions of dollars on creating content for social media interactions? Facebook themselves admits the average brand page only reaches 16-17% of its fans. Data from PageLever shows that for brands with millions of fans, even less of their fans see the content. They estimate the content only reaches ~3% of their fans. Why is this so? It’s because of an algorithm, EdgeRank, that calculates what posts to filter out.

When Facebook allowed brands to have pages, brands began posting a lot of content. Facebook users felt there was too much content coming at them, almost so much that it felt like spam. As a result, Facebook created a filter that determines who sees particular posts. There are three parts to the filter.

The first part of the equation, affinity, takes into consideration how much time you spend interacting with certain friends, groups and pages. If you are spending a lot of time interacting with them, then your affinity will be stronger. The next piece of the puzzle is about weight. Weight is essentially the level of interaction a piece of content gets. For example how many likes and comments. And the last piece to the puzzle is time. Over time, a post’s relevance decays making it less important, pushing it down the feed.

What are the three big problems around content and engagement?

1. Creating great content so fans will want to interact with it

2. Creating a lot of that great content

3. Promoting the content

The truth is most brands don’t have the budget to create enough great content to be effective at engaging their customers. What makes matters worse, in addition to a content creation budget, you also need a promotion budget. And the cost to promote content can become prohibitive.

cosmetic

How much does it cost a brand to send a Sponsored Posts or Stories?

One sponsored story from Facebook costs $200

• Let’s say the brand posts 2 times per day

• $200 x 2 = $400/day

• 7 days/wk x $400/day = $2,800/wk

• 4 wks/mo x $2,800/wk = $11,200/mo

• 12 mo/yrs x $11,200 = $134,400/yr

• $134,400/ yr just to get your content seen!

And that doesn’t include the cost of the:

• Creative

• Content production

• Content delivery systems (like Buddymedia)

• Community managers

How Do I get EdgeRank to work in my favor and rise above my competitors in the cosmetic industry?

• EdgeRank gives greater exposure (reach) to posts that are more engaging

• Boring posts decrease your reach and thus your bottom line

• The solution is to create more interesting posts

 

What makes a better post in the cosmetic industry?

Here are some hints. It’s the ability to:

Benchmark engagement performance vs. your competitors in the cosmetic industry

Surface the best content and content types to engage your target audiences in the cosmetic industry

Determine how frequently to post

Calculate the best days of the week and hours in the day to post compared to cosmetic industry competitors

Know when to post the right type of content to get the highest engagement in the cosmetic industry

 

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Where is the Justice? Court finds for both Oracle and Rimini Street

Where is the Justice? Court finds for both Oracle and Rimini Street

;Justice

In a case with potentially important financial consequences, Judge Larry Hicks of the U.S. District Court in Las Vegas has found that Rimini Street infringed on some Oracle copyrights but not on others. The distinction was based on the wording of contracts PeopleSoft customers signed when it was still an independent company, and not the wording of contracts J.D. Edwards or Siebel Systems customers signed. In the short run the decision could (and the operative word here is could) have an impact on Rimini Street's upcoming IPO. In the long run the ruling is unlikely to have much effect.

This is in part because the case is not about is the legality of third parties to offer independent enterprise software support. Oracle does not dispute its customer's right to engage third parties to provide support nor Rimini Street's right to offer it. What it does dispute is the way Rimini Street provided that support. The judge upheld Oracle's position in the case of PeopleSoft customers (but not J.D. Edwards or Siebel customers) that Rimini Street violated Oracle's copyright protections by installing software on servers it owned.

Rimini Street acted promptly to conform to the judge's ruling. In a letter to clients CEO Seth Ravin wrote "Rimini Street respects the Court’s decision and will conform its practices in light of the Court’s ruling.”

The company had already completed all JD Edwards and Siebel client migrations from Rimini-Hosted environments, and will work with the PeopleSoft clients to migrate their Rimini-Hosted environments to client-hosted environments as well.

It is also important to note the ruling is a motion for summary judgment. Although the case was first filed in 2010, it has not yet come up for trial. The summary judgment was made based on a plea from Oracle to decide the issue before the trial began.

Since part of the plea was granted and part was rejected the trial will still take place. The summary judgment will also be held inappropriate if the jury decides the case in favor of Rimini Street. Summary judgments are also subject to appeal which is almost certain to happen no matter who wins. Depending on how the appellate court then rules in that case, it is very likely the losing party will also appeal that decision. Then it will be up to the Supreme Court to decide if it wants to hear the case or ask a lower court to try the case again. Such a process could easily last over a decade.

So this judgment is just one skirmish in a legal battle that has already lasted for 4 years and promises to continue on for many more years to come. Legal sources tell the Observer the judge's ruling may be a sign from the court that he wants the parties to settle. This is not very likely to happen for reasons I am not prepared to discuss here. For the same reasons the smart money sees the case as a plus for Rimini Street's IPO which is why it is called the smart money.

The take away for Rimini Street's current clients, and any customers considering third party support, is that they need to evaluate legal risk the same as any other risk. There is a risk next quarters plans will be disrupted by a giant comet hitting the earth. It’s a real risk, but customers don't need to consult with an astronomer to assess it. By the same token the worst people to assess legal risks are often attorneys. What customer need to evaluate is:

  • How long will the case be expected to last?
  • How likely is either party to appeal?
  • How likely is Rimini Street to win?
  • What will happen to the customer if Oracle prevails in the end?

Since the difference in the ruling had to do with "magic language" in PeopleSoft agreement that was not in the J.D. Edwards or Siebel agreement it is reasonable to expect Oracle (and every other software company) to include that very language in future contacts and to amend existing contracts. It will be up to customers to review their contracts carefully and negotiate on any terms that they think might limit their future options.

The reason most attorneys are poor at assessing legal risk is because they are schooled in a concept developed during medieval times called legal precedence. Precedence holds a rule established in a previous legal case is binding on a court when deciding subsequent cases. The idea at the time was laws should have some consistency and not be subject to some spur-of-the-moment decision by a lord or bannum. The problem is events moved much more slowly in 1250 than they do today. Even though it was only a decade ago, no one involved could have anticipated how much innovation would change enterprise software support. The legal documents were drawn up considering the limits of the technology of the time. Yet precedence assumes that the parties did know what they were agreeing to and where is justice in that?

Tech Optimization rimini street Oracle Chief Information Officer

Bitcoin coming to an ATM by you…

Bitcoin coming to an ATM by you…

Bitcoin, the leading P2P currency, is coming to an ATM near you. There is an ATM right here in Boston now! At least Boston keeps its place as a high tech center…barely. Anyways, first what really is Bitcoin, other than being linked to the infamous Winklevoss twins? Click here for a good crash video on what it is.

Coming to an ATM near you...better get your digital wallet ready

Coming to an ATM near you…better get your digital wallet ready

Basically it is an online generated form of currency, no banks, no physical currency is created. It allows the online community to have a form of money to empower eCommerce – not that your credit cards doesn’t still work. Online commerce could function and not have to pay some of the fees associated with credit cards and other forms of traditional brick and mortar payment methods. So what does it mean that you can now go to the ATM machine and “get” Bitcoins?

For the most part it feels like a marketing scheme, to make the every day user comfortable with this form of currency. Consumers are becoming more comfortable with eCommerce both via their smart phones, tablets or computers. They have become comfortable using their credit cards online. Bitcoin has to hope they start feeling comfortable seeing Bitcoin as a viable payment option. Showing consumers how to leverage Bitcoin in a format they are used to – aka the ATM machine – should allow for an ease of association with the medium. I get that the ATM gives me $20 bills (in New York sometimes $100 bills!), I get how to use my phone for more than phone calls….now I can somewhat better grasp how this all mixes together with Bitcoin. From a marketing and education perspective this makes a lot of sense. It is also interesting when it comes to the timing – with many highly publicized credit card theft issues from Target to Neiman Marcus could Bitcoin find away to offer a “safer” alternative for online commerce?

It will be interesting to see what the reaction is to these Bitcoin ATMs, will it uptick the usage of the currency? Will the curiosity fade after a few days? Regardless it will be interesting to watch and I believe the impact will reach further than we might expect today…think supply chain. A discussion for another post!

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Keeping it Dynamic

Keeping it Dynamic

Microsoft-intern-talent-show

Source: Flickr JSchementi

“Innovators create value by working on things that are not yet fully known. Periods of technological change have always involved numerous creative experiments followed by shakeouts and establishment of an industry standard.”

Professor Rosabeth Moss Kanter, Harvard Business School

Microsoft's announcement of new marketing, customer care and social listening features added to its Microsoft Dynamics CRM product reveals some true creativity and innovation. Not so much in terms of product features (although there are some). What the announcement really highlights is a creative business and go-to-market strategy.

First the announcement. Sometime next quarter Microsoft will release new marketing features based on its MarketingPilot acquisition, new service features to complement its recent acquisition of Parature, and new social listening features  based on its Netbreeze acquistion. Innovating from typical industry practice, the release will bring social listening capabilities to every sales, service and marketing person in the organization and the new release is expected in the second quarter of 2014.

Now for the innovative part.

The original model for CRM was based on sales as an internal and predictable process like manufacturing and to be controlled by IT. Since then customers have embraced social media and revoluionized marketing.  As much CRM now takes place a much outside the walls of organizations as inside.  Soon marketing may soon be spending as much on technology as IT.   At the same time we are experiencing a re-platforming as field workers become unteathered from their desktop and even laptop computers in favor of mobile devices. Data centers are also moving into the cloud.

Despite being almost 100% saturated, everything in CRM marketplace is up for grabs as organizations are going to have to spend big to stay current with new business processes, new customers, and new platforms.

How will vendors adapt to these turbulent market conditions? Each of the major vendors is experimenting with a different approach and here is where the true innovation in CRM rests, not in products but in business strategy. Traditionally Microsoft has been known as a fast follower preferring to be the second company to introduce features and not the first, but this is different. Microsoft is not following the market leader as much as it is dancing around it. Some of things we see Microsoft doing differently include:

  • Embracing on-premise and well as cloud versions of its products,
  • Looking for monopolies in local markets where it is the only vendor to offer native language support in say Danish or Turkish,
  • Building applications to sell to end users as well as IT,
  • Selling some products, such as Microsoft Dynamics Marketing standalone, but coupling with other products so the Microsoft footprint in an account can be extended if the opportunity arises,
  • Leveraging its expertise in consumer markets to build apps with a mass market look and feel.

Will this strategy prove to be a winner? The market has not made up its mind, yet at the heart of every successful business are the people who make things happen. Clearly Microsoft Dynamics has some heart.

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Technology – The prime mega-trend that drives society

Technology – The prime mega-trend that drives society

1

Every defined era of economic history is characterized by waves of disruption. From the agricultural revolution to the current information and digital revolution, innovation and change is results in continual disruption.

The drivers and outcomes of these eras of economic history have several common themes. The attached figure below highlights common themes that have accompanied each era of economic and social disruption from the Middle Ages. From the explosive growth of trade in resources that accompanied the Middle Ages, through to the shift toward urbanization in the Agricultural revolution; these factors are universal and drive development.

The information or digital revolution is no different. Demographic transition (urbanisation) in developing markets continues unabated. According to the United Nations, by 2025, over 900 million Chinese people will live in cities, and Indonesia’s urban population will exceed 50% of its total.[1] As the information and digital age has evolved, economic development has been a defining event for a number of economies. In the 8 years from 2004-2012 the Philippines GDP almost tripled, Australian GDP per capita increased 50% during the same period. [2]

Whilst the benefits and in particular, social and environmental costs of globalisation can, and should be, argued for months at end, it has created a globally integrated world with the ability for Thomas Friedman’s “Dell Theory of Conflict Resolution”[3] to have real applicability. (For a recent note on the value of an innovative supply chain please see “Innovation can come from history – HP uses the Silk Road to improve supply chain outcomes”) Organisations and consumers can get the benefits of scale and suppliers of various resources can have access to a range of markets globally.

Whilst organisations globally have historically benefited from the combination of all these Mega Trends, in terms of business benefits, Technology is pre-eminent. Technology drives a fundamental transformation in all spheres of society from consumers, through small business, Fortune 500 enterprises and all levels of government. The scale of technology impact is virtually impossible to measure. It ranges from micro-lending in emerging markets, and mobile banking platforms in rural Indian villages to optimised oil and gas exploration, and the ability to have instantaneous global news feeds.


[1] http://esa.un.org/unup/Wallcharts/urban-rural-areas.pdf – United Nations Department of Economic and Social Affairs

[2]http://databank.worldbank.org

[3] The World is Flat (ISBN 1-59397-668-2), Thomas L. Friedman, pg 421

 

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ANZ Bank Retains Most Valuable Banking Brand for 2014

ANZ Bank Retains Most Valuable Banking Brand for 2014

1
Rankings. I can take them or leave them.

But Brand Directory’s evaluation of banking brands for 2014, in association with The Banker, does an interesting job of placing a monetary value on the intangible asset that is an organisation’s brand. And this year, as shown below, ANZ pips CommBank at the post, to take out first place in the Australian rankings.

BankBrandValue2014

In simple terms, brand valuation calculates the difference between book value and market capitalisation. But Brand Directory use a range of calculations in an attempt to get a handle on what a brand may actually be worth. Their methodology is called the Royalty Relief Method.

RoyaltyRelief

Now, I prefer more straight up calculations – less opinion and more fact – but there is something quite appealing in the brand strength index. The use of a balanced scorecard across a range of business indicators sounds great. But I digress.

The real reason these kinds of rankings are useful is that they allow those within the business to get a sense of whether the brand is resonating in the marketplace. Not with analysts, but with potential and existing customers. It marks you out as a player or a stayer. And because leaderboards shift and change over time, it helps to determine, relative to your peers, whether your brand/marketing efforts are shifting the dial.

And if I was on the brand side trying to go deeper with these statistics – I’d bring my own, internal knowledge into play. I’d look to assess, year over year, what my spend and resourcing commitment was – so that I had an even better insight into what works or doesn’t. And then maybe, just maybe, there’d be an ROI figure that I could apply to my efforts. But this would be my own little secret. Another intangible that I’d add to my brand value.

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Quips: Dachis Group Acquired by Sprinklr

Quips: Dachis Group Acquired by Sprinklr

Deal Is First Of Many As Digital Business Providers Consolidates

On February 19th, Sprinklr announced the acquisition of Dachis Group.  The acquisition will make Sprinklr the largest independent end-to-end Social Relationship platform in the market. While many will see this deal as a services play, the acquisition is significant in the for a few key reasons:

  • Dachis brings key product sets to the Sprinklr portfolio. While known for pioneering social business consulting, over the past 24 months, Dachis Group had built out a portfolio of products from brand analytics via the Social Business Index, Content Optimization (which supports the push to native advertising), and employee advocacy (which can be seen on the Sprinklr Content Creator).
  • Sprinklr augments its services capabilities. Partnerships with Accenture and Deloitte have given Sprinklr the range and reach to deliver on global deployments.  The services arm of Dachis will add to this capability and augment existing partnerships.  Customers should not expect Dachis Group service folks to compete with Accenture and Deloitte.

The Bottom Line: Spinklr and Dachis Group Customers Gain a Win Win

In this rapidly consolidating market, mergers and acquisitions provide the scale and critical mass to compete in the market. As the market shifts away from social business and more towards digital, expect new models to emerge among the social leaders who see the vision to move forward.  Services and software will be key to competing in a world of networks and mass personalization at scale.

Your POV.

Are you still seeing the world through the lens of Social, Mobile, Cloud, Analytics, and UC/Video?  Does this help you take the bigger perspective? Ready for digital disruption?  Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

Please let us know if you need help with your Digital Business transformation efforts.  Here’s how we can assist:

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Chinese Tier 2 and 3 cities need to do a much better job to promote foreign investment

Chinese Tier 2 and 3 cities need to do a much better job to promote foreign investment

1

I have visited China for business repeatedly over the last 15 years. As most would be more than aware, the growth on any econometric variable has been sustained and typically staggering. As someone who studied economic and regional development as an undergrad student the demographics of China is equally of interest and impressive.

The size and scale of cities and metropolitan areas in China is staggering. It has 15 cities with over five million residents and approximately 140 more with over a million residents. It is a market and level of potential consumers that any other country (particularly one like my home country of Australia) can only dream of.

The challenge for these 15 cities with over 5 million people, let alone the 140 with over one million is standing out in a competitive environment. The largest cities (Beijing, Shanghai, Shenzhen et al) clearly stand out and have defined roles and investment attractiveness with which to differentiate themselves.

For the remaining 150 or so cities the differentiation is difficult. From my experience city or provincial level executives and officials regularly make the rounds of global cities to promote their city as being the optimum place to invest in China. To be frank they do a poor job. I do not think that they realize the level of competition that each city has for investment. When the competition internally (let alone from Indian, Vietnam etc) is so tight everything needs to be beyond reproach. Too often it isn’t. Marketing is poor, presenters can be tangled up in hyperbole and as a result, loose with facts, language skills need to be improved (if you are selling to a foreign entity, English or other language proficiency is a core requirement).

To highlight the challenge, the following are “must have” attributes, not differentiators. Too many cities believe that naming these attributes gives them instant access and street credibility.

  • Population over 2,000,000
  • Access to a new International airport
  • Access to high speed rail
  • Provincial level political support (overt or covert) –this is a post on its own!!!!
  • Development of business centers (occupied or otherwise).
  • A university (of some description)

To put it into context, if you have the attributes mentioned above, you are not differentiated. You have only reached the starting gates. Attributes such as network and telco connectivity are often overlooked (alongside power supply consistency, and other utilities).

Exceptional performance in the “must have” attributes alongside exceptional performance for connectivity et al is essential if Chinese cities want to successfully compete. Failing to do this will mean that cities will fall back to the pack and not have any differentiation. If you are looking to invest in China, you need to understand the real capabilities of the city, get through the hype and ensure that you have the opportunity to maximize your investment in a city or province that stands out. It is not easy, but it is also not impossible.

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When Big and Data got together, it was love at first Like

When Big and Data got together, it was love at first Like

1
 

Breathless. Heart beating. We all know the feeling. It’s all heart, feeling, emotion. We’re waiting for the brain to kick in – but there is no relief. It’s really a sign of madness.

Love is merely a madness: and, I tell you, deserves as
as well a dark house and a whip, as madmen do: and the
reason why they are not so punished and cured, is, that
the lunacy is so ordinary, that the whippers are in love too.
– Shakespeare, As You Like It, 3.2

But these days, meeting and falling in love is not just a physical thing. It’s virtual … and played out on social networks.

Facebook-Love

The Facebook data science team has been digging through the mountains of interactions that take place between people before, during and after they fall in love. They looked in detail at the number of posts exchanged going back to 100 days before the “couple” changed their relationship status from “single”. What they found was that social media interaction plays an important role in the formation of the relationship:

When the relationship starts (“day 0?), posts begin to decrease. We observe a peak of 1.67 posts per day 12 days before the relationship begins, and a lowest point of 1.53 posts per day 85 days into the relationship. Presumably, couples decide to spend more time together, courtship is off, and online interactions give way to more interactions in the physical world.

And this is where big data gets interesting. We are now starting to see digital traces of behaviours that have real world impacts. The things that we do and say online can be correlated across thousands of data points to reveal actions that take place in our so-called “real lives”. But where does it go from here?

  • Social lifestyle mapping: Facebook (and other collectors of big data) can map and improve personas, track shifts and changes in community trends and lifestyles over time
  • Predictive targeting: With social lifestyle mapping in place, algorithms can be used to predictively target individuals and groups with relevant information. This could take the form of advertising, public health messaging/recommendations, career suggestions and so on. In fact, the possibilities are endless
  • Location awareness: As a large number of Facebook interactions take place on mobile devices, location awareness can add a greater degree of relevance to any of these predictive or realtime offers.

High level barriers:

There are some immediate barriers to usefulness that spring to mind:

  • Brands are slow to catch and embrace technology innovation: Facebook (and indeed Google) have a great deal of work ahead to prepare brands and governments for the power and opportunity that this presents. Thus far we’ve seen precious little in the way of focused education and leadership in this area and without it, organisations simply won’t be prepared (or interested) in this
  • Organisations lag in digital transformation: For these opportunities to be embraced, most organisations have to undertake digital transformation activities. Ranging from change management and education to strategy, business system overhauls and process improvement, digital transformation is the only way to unlock organisation-wide value – but few are seriously committed to such a program
  • Privacy is shaping up as a contested business battleground: Many governments, corporations and individuals fervently hang on to notions of pre-internet era privacy. Laws and regulations have struggled to keep pace with the changes taking place in our online behaviours. Meanwhile public and private organisations are conflicted in their use of, protection and interest in privacy. We’ll need to work through this to understand whether privacy really is dead.

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