Any analysis team would work day and night to justify the reason for their being. There are enough articles being shared on the internet on arriving at a Return on Investment for Analytics (RoIA). However, the main service that any of these teams did was to crunch business data into A-has. This hasn’t changed over the years, and a lot of analysts derive job satisfaction through this very hunt for the A-ha! from their audiences.
The switch to being a core business
Data and business analysis was until now a support function, which needed business data in order to thrive and be effective. Aside from very few models (those that sold business critical data such as ratings, organizational data, etc), the data was never used as the primary product.
There was always a pre-activity and an analysis activity for that data to be useful. However, over the years I am seeing that has changed. Data is now being presented and sold as the main product.
Data as the product
Those of you who know Bloomberg, Hoovers, S&P or CRISIL, would know that data as a product business model works. Now that you know the pattern, let’s take a look at how this business model works.
Data collection as a ancilliary service
There is one function of the business which works with the entire industry it is catering to, to collect data. This more often than not is made available as a freemium or free service.
Some examples of this would be – Alexa Certified metrics, Google Analytics, Walnut app, Swaggerhub, etc.
You get the general idea here. If a good product or service is offering you a free plan, more often than not the data you are entering on that platform would be mused for multiple usecases. Not just for your primary use case.
Data aggregation and visualization
This is akin to the marketing function, and most probably gets a lot of early adopters talking good things about the product.
E.g a blogger singing paeans about Google Analytics, an industry benchmark visualization being shared, data report about a competitor, etc.
This way, the inherent value in the data is presented.
Data access and pricing plans
This is how the business is monetizing the data. By selling access to it. Often on a pay per use basis, or a per data point basis. Note, there might be multiple reports given to the user, however the user has to do the analysis on their own.
E.g SEMRush, SimilarWeb, Alexa, etc.
Wait, these are all old products
Yes. They have been around for quite some time. However, I am seeing that other industry are also copying this model. I recently spoke to someone in the pharma industry who was selling aggregated prescription data to pharma companies.
The credit industry has already been doing this for so many years. TransUnion is a perfect example. In India, most working professionals are familiary with their CIBIL scores. What few people realize that CIBIL is a TransUnion company. Similarily, CRIF score (which is an alternative bureau) belongs to Experian.
What gets my goat in this scenario, is that the firm which is collecting data is based out of another country! This firm now claims to own and know the data of citizens belonging to another country.
Shut up and take my data
Let’s go back 300 years or so. The British killed the Indian textile industry by mutilating the weavers who used to make cloth. Then they bought the cotton and other crops at throwaway prices, that cotton is similar to the data that is being collected. The industry grade cotton which was then imported back in India is similar to the data aggregation and reports that are being sold.
The only difference is that 300 years back, we were scared of the East India Company. This time around, we are welcoming the data traders with open arms. Should we not be a bit more aware of who and how our data is being used?
The reason why EU is taking such a harsh stance with GDPR is a bit more clear. Where is the call for privacy and better data sharing protocols?
The real problem that Google solves, is the problem of availability. When you have a problem and are searching for the solution, Google provides you with a list of most likely content that can address the problem. The problem is created by information asymmetry. You just don’t know and are willing to try out or read about the different solutions.
However, over a period of time this has turned into a problem of plenty. So many content providers are creating content for the average internet user, that the options tend to give all the creators a sliver of traffic. This has led to a bulk of copy-cats and me-too content providers eyeing for their search visibility. So much so that one of the default rules of inbound marketing is to start a content creation cycle and hope that you keep attracting traffic via Search.
What can new brands do?
Stay away from the whole attack of the clones! All marketers would swear on grabbing the attention of the customer as many times as possible in order to drive a higher brand share. However, at the cost of what?
Instead of creating very similar content? How about solving things that matter instead?
How about identifying a niche area where there is a genuine need and people are struggling to find answers?
This might seem contradictory to what I was saying, but once a brand (or a team) starts engaging with the customers, then you start seeing a slew of issues that no content provider is addressing. Talking about these issues and solving them via your product or service is a far better way to get discovered, rather than to keep talking about how your me-too offering is different from the competitor’s me-too offering!
Engage with customers to discover what message and positioning you need to take when it comes to working in a crowded market.
As someone who has been in the area of Digital marketing for the past few years (close to a decade now), it’s interesting to note and see how it has evolved. Right from the open market economics that AdWords grew upon to the game theory dynamics of Search Engine Optimisation, the way the entire industry has been changing is fascinating.
This article on English Tax and building for the next billion Indian users by Sajith Pai makes you stop and think. At this point, all the marketers and brands are busy selling to that sliver of audience who are online and are english speaking, affluent, willing to whip out their credit cards and make a purchase.
The next Billion
However, there is a larger audience out here, 10 times as much. A billion people, who may not be comfortable with English, who may not have approved credit cards and credit lines … but who are online.
Thanks to the launch of Jio, you now have an audience who may not be affluent, but who are there online. The same audience is being targeted by brands in a language that is not native to them.
What is the English Tax? It’s the overhead that a user has to go over to understand what is being said. English is not my mother tongue, however after just under 4 decades of being subjected to both formal and informal education, I have started to think of English as my primary language.
However, that may not be the case of the next Billion. They may not even understand English, and thanks to Google or Apple, they would still be able to browse the web online without even typing a single English letter!
To top it all off, this audience is not being targeted online, not because they do not have a foot print, but because they do not understand the language in which they are being targeted.
This is bad.
Not only would they need re-phrasing of communications, but also a lot of mis-selling and mis-communications would be currently done to them.
Responsibility in Media
Yeah, this section is a joke! However, as digital platforms evolve, can the major players like GAFA take a much more responsible stand on exposing the India2 to the internet?
It’s not as if something is wrong with them. Please note, I am not saying that. However the internet which is most relevant for India2 is in the making and a lot of players are just ignoring this huge blue ocean that needs to be made.
There are content oriented players like BhaDiPa (Bharatiya Digital Party) and TVF (The Viral Fever) who are making content in regional languages, pretty sure there are many more as well. However, one look at the keyword search volumes in Hindi and Marathi, and I know that we have still miles to go.
This audience for instance may not be doing a lot of searches, however, they definitely are there on Facebook, on WhatsApp, etc.
What can we do to engage as brands and marketers with this audience?
One step is always to speak the same language. I always loved the devnagri script, it just looks graceful when in comparison to the English script. Call me biased. However, as a marketer I would love to see some really good creatives, copy and content being pushed out there in regional formats.
I have seen this being done by some organisations, and just going by their data consumption numbers makes one re-think the language in which they are publishing! Similarly, the concepts of marketing wont change, but since the language is changing, so would therefore the format and forms. Just taking a Facebook update and translating it to Marathi won’t do. It has to be not just re-phrased but even re-thought … some of the memes and mental models that one language/culture has may pretty much ensure that the whole line of messaging be irrelevant.
I think as an industry based in a country that’s slowly emerging online, we are barely scratching the surface on these things.
I loved this quote by Tristan Harris in the New York Magazine article The Internet Apologizes … “We cannot afford the advertising business model. The price of free is actually too high. It is literally destroying our society, because it incentivizes automated systems that have these inherent flaws. Cambridge Analytica is the easiest way of explaining…
Brad Feld, the author of the above piece is a VC at the Foundry Group. He is also a regular blogger, and when you do find the time, do read through his thoughts on entrepreneurship and start-ups.
One of the discussions that I keep having with founders of different start-ups is how the free now, pay later model is slowly making users devalue the product.
The price of free
So what is the price of free?
Think about the product which is being offered for free. If you are using the product, and you have paid a cent, then, there is a good chance that the product might be using you!
Hence the reference to Cambridge Analytica and Facebook in the article. We use this social media platform so routinely, similar to Google … it has permeated into our very lives itself.
The amount of data that the free product therefore has to gather goes up. The data is then churned, and out of that valuable insights are generated.
Or else, they could simply sell the data!!
Really? Isn’t this illegal? Who does that?
Take places in this world where privacy laws are so draconian, or take countries where the common man is discovering the beauty of the internet (and its dark sides as well), or take areas where the sheer size and volume of the nation makes it difficult to really control … well anything and everything!
Does that ring a bell?
In India, the IT Act of 2000 has been reigning supreme for the past 18 years. Even then, the average joe out here barely even knows what kind of activity makes him liable for a case under the IT Act. Where the laws are not understood, how do you think the population is going to work react?
They are going to react as per their own personal code of ethics and morality. For some, it would be inline with the IT Act, for some it would be a far cry. Sending corporate data over email to a friend … sure! Email spamming a bunch of email-ids … why not!
A lot of times, since the target (or to use a nobler word – purpose) is known to people, the code of ethics is often kept aside. Let the purpose be achieved, no matter what.
In such a “purpose” driven environment, do you think that cyber crimes and leakage of data is going to be noticed?
Think about the product’s purpose
Now, think about the product.
and it’s purpose.
The initial purpose was to solve a problem. However, now we are giving it for free. The purpose shifts to getting these free users to convert. The problem changes. So does the product.
Remarketing campaigns are launched, I already spoke about this. Conversion Rate optimization is taken up … not to solve the users problem, but to get the user to pay.
I am not saying this should not be done. However, if that’s what’s kept at the center of the product, then the product’s very nature changes. That’s the real price of free.
As far as visiting Social Media sites is concerned, I have slowly veered off Facebook and Twitter and gravitated towards LinkedIn and Medium. One of the interesting features that I noticed LinkedIn launch, is its Career Advice services. I am attaching a screenshot of what I saw, this was a promoted post that I saw in my feed.
Curious to see where this rabbit hole leads to, I signed up for the service. Interestingly enough, the link led me to a place where I had to sign up as a mentor and choose the areas on which I could help others out.
This seems like a me-too of Clarity.fm and similar other services. What LinkedIn definitely has is the wide professional network (and thus the social credibility of the influencers). It’d be interesting to see how Microsoft and the LinkedIn team build this further.
One of the major problems in corporate India is the lack of coaches available in the middle management tiers. Perhaps, if played properly, LinkedIn can address this huge coaching and leadership gap.
Stayzilla, an Airbnb for homestays in India, is closing down its service. The company was founded six years ago and had raised $34 million from investors, including a $20 million Series B in 2015. Now is the time to pause and “reboot” however, CEO and co-founder Yogendra Vasupal explained in a blog post. The company reached a…
Another one bites the dust, as start-ups and investors start rethinking their approach to creating unicorns. One of the largest ones being discussed (and also a poster child for Indian e-commerce) is Snapdeal, who in a recent email announced a lay-off of more than 1000 employees.
So why do it in the first place?
Well, it was good while it lasted, and at least the team that started it knows that they gave it their best and things did not work out – due to whichever reasons … be it a bad business model or unbalanced promotions, or whatever.
Over the years, investors have also become much more skeptical on which businesses would they put their money in.
One of the things that peeves me off is that the investor success stories which have 1000% gains and great exits had the investors not just invest money, but also time and efforts in different capacities.
As someone who works with multiple ideas, one of the key components that I myself do not have much is time. Money is a transient thing, sometimes you are floating in it, sometimes you do not have much to spare. However, as time goes by … one of the key assets that people should look at is the time required to nurture that unicorn.
If that time is not there, then its best that you don’t put in the money – thinking that some smart people will grow that money and give you handsome returns. Somewhere in that dynamic, people are forgetting to create sustainable value.
What is Sustainable Value?
Any transaction happens because of both the parties seeing a certain economic value in that transaction. A buyer gets a good or a service for a price that he can afford. A seller gets a reasonable price for goods/services that he/she are providing.
For a time being, the buyer or seller can extract more value from the market. This could work due to information asymmetry (or third degree arbitrage). However, as information is made available to every user and as customer discovery becomes faster and smoother, this arbitrage is being worn down.
So, how does sustainable value come from … simple, it comes from fair play, it comes from co-operation and knowing that co-operation is the winning strategy when it comes to game theory.
How many start-ups get the sustainable value creation point is something that I am most interested in.
This is a narrative to highlight how we somehow miss the element of human engagement in our day to day interactions. In an economy such as India, where 56% of GDP comes from services – missing human engagement seems like a big concern for me.
In the month of December 2016, my parents and I decided to go to Gwalior. The reason was to attend a friend’s wedding. I figured that we would get some time to look around the city – as well as some time off from work. I did not wish to travel via train (since its a 20 hour journey). Thankfully we had enough time to plan ahead, so we bought tickets off Cleartrip.com (this being one of my favored sites purchase travel tickets – both air and rail).
Flash forward to December 9th, the date of the flight. We huddled up to the T2 terminal in early morning – hoping to reach Gwalior just before lunch. It’s not as if we had planned this in detail – it’s just that there is just one flight that goes from Mumbai to Gwalior. That flight being an Air India one, and that too once a day. So much for choice!
1 hour before the flight, we are checked-in and sitting at the boarding gate. Most of the other passengers have started showing up. My initial suspicion of this flight being empty are quickly put to rest as I count around 50 odd passengers at our boarding gate. Just then, Air India announces that the flight might get delayed by an hour or so – since there is fog at the Gwalior airport. Some folks have started grumbling, and the elderly lady sitting next to me is concerned that she may not reach the hospital in time.
An hour later, the flight is promptly announced cancelled and the hapless attendant at the boarding gate points the irritated passengers towards the Air India desk. Fortunately, I am quickly able to figure out the next steps in flight cancellation and I was able to get the entire PNR of both the flights cancelled (since it was a round trip – this was done de-facto by Air India when they cancelled my onwards journey!).
At this juncture, I realize that reaching by flight is impossible for my parents. I could have gone via Delhi or via Bhopal, unfortunately Air India was not willing to transfer my ticket to another firm’s flight and wanted me to wait for their next empty flight. Somewhere, the Air India helpdesk just stopped being customer friendly (who wouldn’t when faced with 50 angry customers all shouting for alternative flights), and started quoting the policies.
Cancellations and refund
Having my flight cancelled, I got on a call with Cleartrip.com and confirmed the refund amount we would be getting. So for spending roughly 35k for the tickets and wasting so much time, we would be getting most of that amount back. The attendant was super friendly and seemed to grasp the situation – he promptly had an Air India customer care operator on conference call and asked for the full refund. This process amongst the chaos took 5 hours or so. The customer care operator from Air India – Manoj, seemed diffident at first, however he agreed that I would be refunded in full when he learnt that it was a single PNR. The Cleartripper must have been trained for such situations – so he verified this twice on the call. Then he assured me of the refund and asked me to return back home and proceeded to cancel the tickets. We reached home in the evening, having deemed that some time and money had lost and we would be missing my friend’s wedding (sorry Jay!).
After the customary vows of not using Air India ever, and praising Cleartrip for their super awesome service, I went on with life. I was informed by Cleartrip that this refund would be processed in 25 odd days – since I did not have an endorsement copy ready.
Since, I did not have this aforementioned endorsement copy, I replied back stating that I’d rather wait for Cleartrip to do the same for me.
The Engagement Gap
Now, starts the real story. On the 5th Jan (almost a month after the flight was scheduled), I receive this email from Cleartrip.com.
I remember a cold dread going through this email. Fortunately, I remember that there was a recorded conversation between the three parties (Cleartrip, Air India and I) – where the Air India operator had confirmed and mentioned on record that the refund would be processed in full. So how can they go back on their word?
I picked up the phone and spoke to a Cleartripper about the same. The Cleartripper took some time understanding the issue, went and verified that such a conversation existed, and then asked me about the endorsement copy. I do not know how this looks like so I asked them to arrange it at their side (they claimed they could take care of this, however, it would take their 20-25 more days).
At this juncture, I trusted Cleartrip and said that the wait would be fine (since I have already waited month, another 20 days may not matter).
The Engagement Gap widens
On the 14th of Jan, I receive this email –
This is where I lost all hope of getting any money back. A cool 30k down the drain. Thankfully, it was a Saturday – and I had some free time on my hands to get into the heart of the matter.
I got onto a call with Cleartrip and 15 minutes later had explained the matter to one more Cleartripper (so now at least 3 of them know about my issue). In classic textbook style script, she proceeds to assure me that they will look into it and will get back to me in some time.
This is where I lost all trust that Cleartrip would indeed solve the problem. Please note, I am not bitching about Cleartrip or Air India – at least not yet! So, I decided to push for a turn around time. I was informed that the concerned person would contact me in an hour’s time.
An hour and a half later, I call Cleartrip to follow-up. A separate person this time, another round of explanations go and this chap also placates, re-assures and promises to get back. I refuse to hang-up, and call him on this point that everyone promises to get back – but no one does. At this juncture, the fine chap that he is informs me that it would be simpler if I had the endorsement copy in place.
Wait, what? So I waited 35 days for Cleartrip to get something which I am not supposed to get. Why did they not say the same in the first place? Why offer to do this if they do not really engage with the problem.
Look who’s talking!
At this point, I realized that screaming or ranting this won’t solve my problem. If I do not chose to do something about this state of issues, then my money is most certainly lost. Grumbling obscenities with Air India, I head on to T2.
I reach Air India’s office and explain that I need an endorsement copy for the flight number. The officer asks me the PNR number which I provide. She looks at the date for a minute and goes to the senior officer. He proceeds to process this (while handling 2-3 other emergencies), he asks me why did I not get this on the day of the flight itself. I narrate the entire incident to him and he gives me the copy in 10 minutes flat. My impression of Air India stands changed.
While this was happening, the Cleartripper (the last one) calls me and suggests me to get the endorsement copy to process the refunds. I email him the required photographs of the copy and there ends the matter.
As I was typing this post, I thought it might make sense to double check with Cleartrip. True enough, they haven’t yet received the endorsement copy from me. It seems that their CRM (which is Salesforce) is not configured to receive attachment to replies, and expects me to send a separate mail (not as part of the mail chain) to them. I send this, and receive acknowledgement of this. I have been told to wait for 2 days on this for any further update. There is a trust deficit in my mind when I talk about Cleartrip … a site which I have been using for around a decade now.
So who is not engaging here?
I don’t know! Is it Cleartrip or was it Air India that f**ked up?
Or was it me who simply did not chase these matters?
Does it have to be this hard? In this mess of exchanges, there were so many opportunities for one human to go the additional distance and close the gaps.
Air India could have given the endorsement copies the minute the cancellation was announced.
Cleartrip could have fetched this themselves and not kept buying time
I could have chased after both Air India and Cleartrip and addressed this matter. I certainly plan to do so now.
The Engagement Glue
If I have not lost you by now, most certainly you are piqued by what I mean by The Engagement Glue.
There are 4 basic interchanges happening here –
Purchasing the ticket on Cleartrip. I think they have nailed this experience.
The actual flight. Air India could not help here, the Gwalior airport is controlled by the army base and it shuts down operations after 3pm. The fog was a natural act, and could not be helped.
The cancellation process. This is where a clear engagement failure happened. Air India officials should feel more concerned about the emotions that a passenger goes through, and not cite policy.
The refund process. Another engagement failure, Cleartrippers should look further than providing text book responses. The user should also actively track this (I am the user), it’s his money after all!
In the last two points, there was a need to bridge the engagement gap with some understanding. With some Engagement glue. Human empathy could have been that glue.
At the end of this fiasco (when it ends!), all I want to say is that the trust with which I used to operate is lost and that could have been saved simply by being a bit more human-centric.
I see this in a lot of services, the great service providers go that bit extra and ensure that everyone around them feel customer delight.
The damn thing doesn’t end here!
26th January 2017. This addendum after 10 days.
After waiting for Cleartrip to respond, I called their Customer Care team up. It seems that their representative had forwarded the matter to the wrong team! I am being told to wait for 2-3 days more, guess I will keep this updated and see what comes of it.