The Blog

  • February 19, 2019
  • Teetering social empire

    Disruptive innovations are only disruptive for as long as it takes competition to develop and thus create a market. Worse, for the disruptor, the niche it created can also spawn other niches. Social networking provides a vivid example.

    First, there were networking sites that could help you find a job or a sales lead, then there were social sites whose purpose was simply, well, networking. Sites like Facebook and Twitter had no trouble achieving explosive growth, in large part because they were free. But lately the user/consumer has come to realize that free ain’t exactly free. The strings attached cause users to give up privacy and submit to psychological manipulation most often without their consent—a high price to pay for somewhat glorified email.

    Social media’s problems have been well documented so there’s no reason to review them here. But hidden in the headlines are some nervous technology companies that jumped on the bandwagon early to make their wares all social, all the time. Exhibit A in all this is CRM. There’s no CRM company that doesn’t leverage social media to support customer centric business processes. From sales to service and marketing, CRM’s benefits include a lot of value from providing significantly lower cost business processes.

    Social CRM

    But now the vehicle for all that goodness is in trouble and while no vendors that I’ve spoken to think they’ll be abandoning their links to social media, some are getting nervous. A recent story in the New York Times documents how consumers in Illinois filed a suit against Facebook for violating a state privacy law. The suit alleges that Facebook used facial recognition software on users’ photographs without permission. In response, the social media giant is trying to invalidate the action saying that no harm was done and harm beyond simple law breaking is needed to enable a consumer to sue. Seriously.

    Meanwhile, Facebook is in freefall. Grassroots movements encouraging people to quit Facebook, and other social networks, are gaining traction—enough that the company has doubled the waiting period for people to actually leave and have their accounts expunged from 2 to 4 weeks.

    A new niche

    Leaving the law suits aside, this ongoing drama is opening a new social media niche and there are vendors queuing up to enter. The new niche attempts to provide the goodness of social media including—the immediacy, bi-directional communication, low cost and broad distribution—without the vendor shenanigans. Actually, there may be two potential niches, call them Facebook lite or Facebook nice, and notifications.

    The first option would strip away Facebook’s propensity to mine other people’s data but from a commercial standpoint omitting data gathering and analysis would leave Facebook looking bloated and silly. The second option might be a Goldilocks solution because it admits users fairly easily and offers a communications regimen that’s not too much, not too little, but just right. That’s notifications but they aren’t for everyone.

    People using notifications dispense with the small talk—no baby pictures, cats or dogs or birthday reminders. With notifications people are always in the middle of a conversation not trying to hit the reset button because thousands of followers need reminding.

    Social scientists tell us that typical people can maintain between 150 and 200 or so relationships; it’s called the Dunbar number and more than that leads to confusion. Common social networking makes it possible to go way beyond Dunbar though the relationships maintained often look not much different than what you get with broadcast advertising.

    I think there’s a future for notifications and it’s possible that notification technologies will disrupt social networking. As with most disruptions the older technologies won’t necessarily go away but their market reach and importance would decline. Notifications in CRM would give you a just the facts ma’am vendor customer communications stream.

    Testing the idea

    Right now, I’m part of a beta test of a notification product in stealth mode. Compared to Facebook, you might say it’s bare-bones. There are no apps, no profile database for the unscrupulous to mine, just a list of my peeps, what I’ve called their attention to and what they’ve sent me (along with our comments). Sometimes I ignore the incoming flow for lack of time and it’s a good indication that I’ve reached my personal Dunbar number.

    If there were ads and offers in the stream, I’d ignore them too because I’m good at understanding my needs. With so little data emanating from the user you might logically ask how a vendor is supposed to train an algorithm. The simple answer is that you hire people, perhaps subscribers for a time to share their data. That would be more than enough to ethically capture use data and train algorithms.

    Not long ago, Esteban Kolsky and I ran a survey. As with most market research studies the hard part is getting people to take the survey. Ten years ago, it was relatively easy, you just bought a list and invited people and there were usually enough responses for statistical reliability. But lately no one wants to be bothered and market research has taken a hit.

    The good news, though, is that the situation has opened a niche. Database vendors compile lists of people with specific attributes and pay them to take surveys. We researchers pay a fee to the consolidators and we get our answers. Most importantly, the responses come from people with the exact attributes we specify.

    My two bits

    There will be people who say that social media can’t or won’t be effective with a payment model to which I say that’s not my experience. Social media has tapped into a rich vein of information and access shouldn’t rely on subterfuge. It generates huge profits and there’s no longer a reason (if there ever was one) for sneaking around the user database for insights.

    So those are some of the niches opening up in the shadow of social media. Notifications and a pay as you go model for research that’s above board and gives consumers what they need. I think CRM vendors are paying close attention and the current war room mentality companies like Facebook are exhibiting is not helpful and could lead to an unnecessary crisis in social and maybe CRM. We don’t need this.

     

     

    Published: 2 months ago


    Discussion

    • March 15th, 2019 at 2:18 pm    

      With so much still integrated into that platform, do you think it’s realistic for it to go away? What would it take for Facebook to be replaced with another platform?

      • April 2nd, 2019 at 10:08 am    

        Facebook has lost the trust of a wide swath of the public. The worst thing that could happen, which is at least possible, is that FB will be deserted by people who spend money there or use the platform for business. it could leave FB with a younger demographic and they don’t spend as much so what will advertisers think?

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