Naturally, the phenomenon has drawn much commentary about what this means for marketing, but I am more interested in what it teaches us about making money.
It’s not easy to make money in an ecosystem from unrelated parties. In spite of all the press purporting that Pokémon Go offers local businesses unique marketing opportunities, there are, in fact, many limitations. The claim is that small businesses can gain new customers from being a Pokémon “Gym” or “Pokéstop” — physical locations that players visit to collect rewards or battle virtual monsters.
Donald Trump’s campaign appears to be a test case in whether this old adage is true or not. His business interests are intricately linked to the Trump brand, which has been taking a hit as a result of his more extreme statements and proposals on the campaign trail.
At least in terms of political support, his comments have appeared only to improve his numbers. He’s dominated the polls since July, and repeated predictions that the latest remark would send his numbers tanking have all been wrong.
But how long can Trump continue to alienate and disparage various groups without harming his own brand and broader business deals?
Making marketing decisions based on an analysis of Big Data can be risky if not done properly, because data seldom reveal the causal links between correlated events. Take the case of one large retailer we studied. The company noticed that customers who purchased perishables also tended to purchase large-screen TVs. Based on this observation, the company made a significant investment in marketing activities directed at increasing purchases of perishables, in the hope that this would trigger more TV purchases. But while they sold more perishables, they didn’t manage to shift any more TVs, and the profits from selling extra perishables weren’t enough to cover the marketing investment.
In an era when marketers spend billions on managing social media, is that investment worthwhile? Should firms actively guide, promote and shape online conversations, or leave them to grow organically?
To investigate this, my colleague Amalia Miller from the University of Virginia and I recently studied what happens when hospitals started to actively manage their profiles on Facebook. We focused on Facebook because it’s the most visited media site in the U.S., accounting for 20% of all time spent on the Internet. We also chose it because the Facebook Places initiative created a page for every single hospital in the U.S., allowing organizations to choose whether to actively manage their pages or not.
In the digital age, it’s critical for retailers to collect and manage customer data. This information is the key to providing personalization for any kind of shopping experience, as it allows retailers to understand customer preferences and analyze shopping histories.
Smartphone payment systems like Apple Pay are an important method of obtaining this data since they allow data collection across different retailers for the same individual. However, when the data is collected and controlled by a third party like Apple, it is risky for retailers. Read More »