The Revolution That’s Transforming Everything

“By one estimate, 90 percent of all of the data in history was created in the last two years. In 2014, International Data Corporation calculated the data universe at 4.4 zettabytes, or 4.4 trillion gigabytes. That much information, in volume, could fill enough slender iPad Air tablets to create a stack two-thirds of the way to the moon. Now, that’s big data.”  Steve Lohr

Steve Lohr has covered technology, business, and economics for the New York Times for more than twenty years and writes for the Times’ Bits blog. In 2013 he was part of the team awarded the Pulitzer Prize for Explanatory Reporting. He was a foreign correspondent for a decade and served as an editor, and has written for national publications such as the New York Times Magazine, the Atlantic, and the Washington Monthly. He is the author of Go To: The Story of the Math Majors, Bridge Players, Engineers, Chess Wizards, Maverick Scientists, and Iconoclasts—the Programmers Who Created the Software Revolution. He lives in New York City.

In his book Data-ism, Lohr makes several claims about the explosion of data:

  • That Big Data is the next phase, in which vast, Internet-scale data sets are used for discovery and prediction in virtually every field.
  • That this new revolution will change the way decisions are made.
  • That relying more on data and analysis, and less on intuition and experience, can transform the nature of leadership and management.

In our upcoming Soundview Live webinar, The Revolution That’s Transforming Everything, Steve Lohr explains how individuals and institutions will need to exploit, protect, and manage their data to stay competitive in the coming years. Filled with rich examples and anecdotes of the various ways in which the rise of Big Data is affecting everyday life, it raises provocative questions about policy and practice that have wide implications for all of our lives.

Join us on April 16th to learn how big data affects your business decision making, and post your questions for Steve during the webinar.

Is There An iPod Equivalent In Yahoo’s Future?

Marissa Mayer knows how to throw a party. The controversial CEO of Yahoo! once threw a flannel-themed Christmas party at her Palo Alto home (she also has a penthouse apartment in the Four Seasons) that featured not only shipped-in snow but also a backyard ice-skating rink almost large enough for NHL games. At some point during the party, as recorded in Nicholas Carlson’s book Marissa Mayer and the Fight to Save Yahoo!, a pajama-clad Mayer climbed aboard a mini Zamboni she had rented for the occasion, and set out to smooth out the ice that had become cut up by her ice-skating guests. “It was a comical, cheerful scene, and another host might have laughed and waved at her guests as she rode the funny-looking Zamboni in her pj’s,” Carlson writes. “Not Mayer. She was very serious. Sitting on top of the big machine, she concentrated on the ice beneath her. She wanted to smooth over every inch. She was going to get the job done herself and be excellent about it.”

As Carlson describes in his book, the Christmas scene reflects the personality of Mayer: hands-on, serious and driven to excellence — which in the minds of many Yahoo employees and former employees translates, writes Carlson, into “micromanaging, bottlenecking and dictatorial.”

In many ways, the cover of this book is misleading. Despite the photograph of Mayer and her name in bigger type than the rest of the title, this is, surprisingly, more a book about Yahoo than about Mayer. After a brief prologue, readers don’t run into Mayer again until more than 130 pages later, when, in part II of his book he describes Mayer’s early life and career at Google. Part III of the book returns to the behind-the-scenes battles between activist shareholders and Yahoo executives that dominate much of the early part of the book. Marissa Mayer finally enters the Yahoo! building for the first time nearly 250 pages in, giving Carlson less than 100 pages to cover Mayer’s two years (so far) at the helm of Yahoo!

In those 100 pages, Carlson narrates in engaging detail the ups and downs of Mayer’s first two years at Yahoo! For example, Mayer sent shock waves in the progressive hi-tech industry when she abolished Yahoo’s work-at-home policy. At the same time, Mayer replaced employees’ Blackberries with more up-to-date smart phones, and, in a bid to introduce transparency, started staff meetings in which she and her executives answered questions from employees. Mayer bet heavily on mobile apps and on digital magazines, hiring Katie Couric and others to create momentum that never materialized. On a more positive note, she acquired Tumblr for $1.1 billion, a record for a social media company at the time and an acquisition that in some ways has helped keep Yahoo! relevant.

Self-Inflicted Problems

A number of Mayer’s problems seem self-inflicted, including, according to Carlson, her inability to hire effective executives and her unfeeling interactions with her subordinates. The dictatorial, micromanaging style, as many employees see it, can demoralize a workforce whose morale, according to Carlson, is already badly hit by another Mayer initiative, the quarterly performance reviews (QPRs) that have echoes of Jack Welch’s infamous rank-and-yank employee policies at GE. Inevitably pitting employee against employee, the QPRs discourage collaboration and encourage cut-throat competition: it’s better that your colleague looks bad and gets the bad reviews; otherwise it will be you.

Mayer had an enormous advantage as she began her new position as CEO: a guaranteed two years in which the company’s financial health was assured by Yahoo’s prescient stake in the groundbreaking Chinese company, Alibaba, whose anticipated IPO in the fall of 2014 netted Yahoo a cool $8.3 billion windfall. (Yahoo’s stake in Alibaba, now worth $39.5 billion, was spun off into a separate company in January 2015, after the book was published.)

The question remains whether Mayer can make Yahoo! into the dominant Internet player it once was. Marissa Mayer, Carlson writes, points to the five years that Steve Jobs took to revitalize Apple, with the creation of the iPod. Is there an iPod equivalent in Yahoo’s future? For Carlson, the verdict is still out. The outcome depends in large part on the patience of the activist shareholders who pushed out several CEOs prior to Mayer.

How to Use Big Data to Win Customers, Beat Competitors, and Boost Profits

TAKING ADVANTAGE OF BIG DATA

When used car dealer Les Kelley launched the Kelley Blue Book, his target customers were used car dealers (and insurance companies and banks that made car loans). Dealers could consult the book and, based on the information it contained, have an idea of what price tag to put on their merchandise. Today, the target customers for the Kelley Blue Book, now free online, are used car buyers who consult it to have an idea of what they should pay for the used car they are buying.

The customer flip for Kelley’s Blue Book exemplifies the switch in power in the purchasing process from seller to buyer. Buyers are no longer dependent on sellers to give them the information they need to make a purchasing decision. So in this new purchasing paradigm, are sellers completely powerless?

The answer is no, and the reason, in large part, is what is commonly known as “big data.” As explained in The Big Data-Driven Business by LinkedIn marketing executives Russell Glass and Sean Callahan, in today’s world, buyers don’t have to go to sellers in order to find the information they need to make the right decisions. Instead, they can use a variety of digital search channels to gather any information they need and then approach the sellers.

However, write Glass and Callahan, the same digital capability that allows buyers to take the initiative allows sellers to follow what the buyers are doing. They track the websites and pages within those sites that buyers or potential buyers are visiting. They also track purchasing trends, which merchandise is popular at a given time, which items lead to the purchase of other items and a whole host of other customer-related data — so much data, in fact, that we now refer to all of this information as “big data.”

Such extensive tracking takes some sophisticated software, of course. This software, write Glass and Callahan, is what is known as the “marketing stack.”

The marketing stack includes marketing automation software, business intelligence databases, CRM systems, content management systems (which allow marketers to take over updating digital marketing content with minimal IT involvement), blogging and data management platforms, analytics tools, social media management platforms, search engine platforms, and other systems and software that, in essence, enable marketers to manage the accumulation and analysis of big data.

Principles for the Data-Driven Company

It may seem, from the litany of technological systems just cited, that establishing a big data-driven company is complex and expensive. It can indeed be complex. The chief marketing officer and the chief information officer must work closely together if a company is going to have any success at using big data. Some companies have started hiring “chief marketing technologists” solely responsible for the technology side of marketing. The bottom line is that all marketing professionals today must be at least knowledgeable about the technological components of the marketing function.

Using big data does not have to be expensive, however. In one of the most insightful chapters, Glass and Callahan offer 11 principles for successfully making a business more data-driven. Among the principles are, determine what you want to know about your customers and prospects; start small; don’t bet everything on technology (figure out first what you need, not what technology you want to use); and hire the right people — forget the art schools, and think about Star Trek conventions instead.

Glass, who heads B2B marketing at LinkedIn, and Callahan, LinkedIn’s senior manager for content marketing, present a guide for marketers in companies of all sizes.

Work, Progress, and Prosperity in a Time of Brilliant Technologies

THE SECOND MACHINE AGE A New Era Going Full Steam

For most of us, the Industrial Age refers to the late 19th-century explosion of large companies with large factories that fundamentally changed the way we live and work. Yet, as authors Erik Brynjolfsson and Andrew McAfee explain in the opening pages of The Second Machine Age, their brilliant study of digital technologies, the Industrial Age was actually launched in 1775 — an era that for most Americans evokes colonial leaders with white wigs and tri-corned hats, not dirty factories belching dark smoke into the skies and thousands of smudge-faced children working dawn to dusk. What happened in 1775, of course, was James Watt’s invention (or, more accurately, the refinement) of the steam engine. The full impact of Watt’s steam engine on our society would not be felt until much later.

For the authors, humanity has reached a similar “inflection point” for the computer age. Companies have been buying computers for more than 50 years. Time declared the personal computer the “Machine of the Year” in 1982. But it is now, in the second decade of the 21st century, that “The full force of these technologies has recently been achieved,” the authors explain. “By ‘full force,’ we mean simply that the key building blocks are already in place for digital technologies to be as important and transformational to society and the economy as the steam engine.”

What Computers Can Do and Can’t Do

In a wide-ranging discussion of the joys and challenges of this “second machine age” — when, in the words of the authors, “computers and other digital advances are doing for mental power… what the steam engine and its descendants did for muscle power” — the authors give numerous examples of the opportunities created by digitization.

A GPS-based app called Waze is one example. A standard GPS will give you the standard route to your office based on its downloaded maps. However, Waze sends back to the company’s servers information transmitted by sensors on the smart phones of its members already on the road; this information can then relay to the person about to leave for work that, for example, an accident has closed down the main road on his usual route. Waze is one illustration of how technological capabilities only now available can truly make life better.

At the same time, the authors dismiss the notion that computers will be ruling the world. In an eloquent chapter called “Learning to Race With Machines,” the authors argue that ideation is out of the reach of computers. “Scientists come up with new hypotheses,” the authors write. “Chefs add a new dish to the menu. Engineers on a factory floor figure out why a machine is no longer working properly. Steve Jobs and his colleagues at Apple figure out what kind of tablet computer we actually want. Many of these activities are supported and accelerated by computers, but none are driven by them.”

The Good and the Bad

The Second Machine Age is a celebration of the “bounty” that the exponential digitization capacity offers. However, Brynjolfsson and McAfee are also not afraid to point out the potential downsides to digitization, notably what the authors term “spread,” which is the “ever-bigger differences among people in economic success — in wealth, income, mobility and other important measures.”

But the Industrial Revolution also brought serious, unacceptable consequences — widespread pollution and the scourge of child labor, to name just two, that a combination of democratic government and technological progress were able to overcome. The authors are convinced that the same combination of technology and the right policies can effectuate a similar result: a better life for all of us.

How to Create Strong Relationships with Consumers

Romancing the Brand. It sounds like the sequel to Romancing the Stone, the movie. But actually it’s a new book by author Tim Halloran. Here is how he begins the book.

“It wasn’t a particularly dramatic moment. The eight women sat around the overflowing table of colored cans and bottles of soft drinks. They has just completed what we call a ‘sorting’ exercise, in which participants arranged soft drink brands in groups based on some organizing principle that they were to develop themselves. I don’t remember how they organized the forty-plus brands that day, but what happened next stuck with me. A petite woman in her late twenties, picked up one of the cans and said to the focus group moderator, ‘I drink eight of these a day. It is always with me, no matter what happens. I was there when my boss gave me my promotion last week. It was at my side two months ago when my cat died. It got me through it. I start and end my day with it. It’s never let me down. I can always count on it. To sum it up, it’s my boyfriend . . . Diet Coke.’”

Wouldn’t we all like to have this kind of loyalty from our customers? They are engaging in a rich, complex, ever-changing relationship, and they’ll stay loyal, resisting marketing gimmicks from competitors and influencing others to try the brand they love.

Halloran reveals what it takes to make consumers fall in love with your brand. Drawing on exclusive, in-depth interviews with managers of some of the world’s most iconic brands, he arms you with an arsenal of classic and emerging marketing tools—such as benefit laddering and word-of-mouth marketing—that make best-in-class brands so successful.

We’ve invited Tim Halloran to join us on April 30th to reveal to us How to Create Strong Relationships with Consumers. This Soundview Live webinar with give you the chance to learn first-hand about these emerging marketing tools, and to ask your most challenging questions. Join us for the sequel and bring your popcorn.

Know Your Talent Better Than You Know Your Customers

THE DECODED COMPANY

Using Big Data in Human Resources

What if companies knew as much about their employees as they knew about their customers? That is the provocative question at the heart of The Decoded Company — a book written by a group of entrepreneurs connected to a technology-driven health care marketing agency called Klick Health. Klick Health CEO Leerom Segal and his co-authors are great believers in the potential of big data — the myriad of information that is quietly and continuously collected from you as you go about your business as a consumer. Surprisingly, while companies have near-unanimously embraced the use of big data technology for their customers, very few attempt to find out more about their employees.

Three Principles

Using their own experiences as leaders of a fast-growing technology company, the authors describe in their book three fundamental principles for decoding your organization — that is, truly understanding in real time the individual skills, motivations and successes of employees, recognizing the challenges they face, and supporting each individual or groups of individuals as needed.

  • Principle 1: Technology as a Coach and a Trainer. According to the authors, most organizations use technology as a referee rather than as a coach. Technology allows companies to monitor what employees are doing and to whistle the fouls when they fall behind or fail. In decoded companies, technology is a      trainer and coach — preparing employees for the game (to continue the metaphor), then watching from the sidelines and jumping in to coach as      needed. One coaching idea proposed by the authors is the hiring of a “concierge” — someone who might use some of the traditional HR tools, such as career counseling or performance reviews, but whose one and only goal is to design a customized solution for each employee that helps them perform and grow. Technology as a trainer, the authors explain, means using “data and systems to watch blind spots, identify teachable moments, and proactively intervene with just-in-time training.”

 

  • Principle 2: Informed Intuition. The second principle is that technology does not replace but rather augments the intuition of leaders born from their      experience and knowledge, thus allowing them to make better decisions. The      capture of ambient data — ongoing information about what employees are doing or saying — is vital. (One example of the creation of ambient data is your Facebook activity. Facebook tracks with whom you communicate on their site, how often, from where and through which method, such as posting or chat message. This ambient data determines which Facebook friends end up on your newsfeed.) After analyzing a combination of ambient data and selected self-reported data, such as performance self-evaluations or monthly results, managers in decoded companies use their intuition to seek solutions to employee challenges. Bank of America discovered that the performance of call-center employees improved based on whom they talked to  during overlapping lunches. The bank thus decided to create more opportunities for employee conversations by changing a policy that had restricted overlapping breaks.

 

  • Principle 3: Engineered Ecosystems. The third principle is to use data to set up the culture and the environment that enables employees to work at their highest levels. Engineered ecosystems are both data-driven and talent-centric. For example, the authors describe how Google — which, as the company that tested 41 shades of blue for one of its toolbars, is notoriously data-driven — launched a major initiative to identify the most important traits for its managers. The results seemed at first less than earth-shattering: The eight identified traits included not micromanaging, expressing interest in employees’ success, having a vision and a strategy, and having the technical skills to advise the team. The data, however, not only identified the traits but also ranked their importance, and this is where Google’s leaders uncovered a truth about its culture that was contrary to everything they believed: technical expertise, once thought to be the keystone of a great Google manager, is the least important trait that a manager can have. Everything else comes first.

While Segal and his co-authors use Google and numerous other companies in a variety of industries as examples, it is their own success at Klick Healthcare that make The Decoded Company an authoritative, balanced and real-world exploration of the human resources potential of big data.

Jeff Bezos and the Age of Amazon

THE EVERYTHING STORE

Jeff Bezos’ Dream Come True

While the face may be somewhat familiar and everyone knows his company well, Amazon founder Jeff Bezos has not enjoyed the iconic status of a Bill Gates or the ubiquitous (at least in business literature) Steve Jobs. And yet the Amazon story, as told in a new book from Bloomberg BusinessWeek writer Brad Stone called The Everything Store, reflects foresight, courage, vision, hard work and innovation that matches the story of any other major Internet or Information Age startup.

The company was started in a garage, although it stayed in the garage only for about three months. And it was not fresh, just-out-of-school whiz kids who started the company but a Wall Street veteran who decided that he, rather than the hedge fund company he worked for, should control his dream: to sell books over the Internet.

Bezos’ New York employer, a technology-driven hedge fund firm called D. E. Shaw, had already invested in several Internet ventures, and it would have been ready to finance an online retailer. But Stone describes how Bezos’ growing desire to strike out on his own was confirmed by his reading of the bestseller Remains of the Day — a brilliantly subtle but ultimately devastating novel of regret.

Much of the outline of the Amazon story is well-known, from its first focus on books and then a few other categories (e.g., movies and toys) to its current status as the behemoth of online retailing for just about any product, a giant in the e-reader space, and more recently, a major player in cloud computing with Amazon Web Services. Today, the company is headquartered in a campus of a dozen buildings and reached $61 billion in sales in 2012. Most people watched as new initiatives came online — Search Inside This Book, Super Saver Shipping and, more recently, Amazon Prime are three examples — and quickly became expected features. In fact, it is almost surprising to learn that Amazon is only 18 years old. The first book ordered on Amazon was Fluid Concepts and Creative Analogies by Douglas Hofstadter; the date was April 3, 1995. The buyer was a former colleague of Shel Kaphan, a founding employee of Amazon.

The Stories Behind the Story

Although the overall plot of the story might be well known, The Everything Store is filled with the unknown stories and the vital but often anonymous people who made the Amazon success possible. Kaphan is an example. A veteran programmer when he was hired, Kaphan, who Stone calls Amazon’s “primary technical steward,” was responsible for turning the dream into a functional reality. Promised that he could stay with the company for as long as he wanted, Kaphan lasted five years before, as described by Stone, he was made less than welcome by Bezos.

Bezos, of course, is the star of the story. The portrait offered by Stone is of a complex, driven, hands-on, creative entrepreneur, which is no less than expected. It seems that there is an archetype for the successful entrepreneur and one that seems to run counter to the generally accepted view that respectful, team-oriented leadership works best.

According to Stone, one mention of work-life balance in a job interview at Amazon during the early growth years would kill your chances. Bezos, however, has had some formidable sparring partners, including Barnes & Noble and the New York publishers, not to mention the challenge of a dot-com bust, all of which would have conquered a less confident — and visionary — opponent.

The Everything Store is a fascinating exploration of a unique company and its equally unique founder.

Who Needs an Office These Days?

REMOTE

Office Not Required

How am I going to know my employees are really working? Won’t those in the office be jealous? What if I need an answer now? These are just some of the excuses that opponents of remote work advance as they resist what Jason Fried and David Heinemeier Hansson argue is the most effective and promising way to manage people. Fried and Hansson should know: As co-founders of software company 37Signals, they have 36 partners spread around the world serving millions of users. In their new book, Remote, they clearly advance the advantages of a virtual workforce while forcefully responding to those who can’t let go of the traditional office.

Are They Really Working?

For many leaders and business owners afraid of remote work, the main objection is that workers will “slack off” if not supervised. According to the authors, this fear reveals a much bigger problem. Specifically, it reveals that the manager sees him- or herself as not much more than a babysitter – which does not portend well for the organization. To put it bluntly, if managers act like babysitters, employees will respond in kind, the authors write. “People have an amazing ability to live down to low expectations. If you run your ship with the conviction that everyone’s a slacker, your employees will put all their ingenuity into proving you right. If you view those who work under you as capable adults who will push themselves to excel even when you’re not breathing down their necks, they’ll delight you in return.”

In fact, as the authors argue in a later chapter, managing remote employees increases the focus of the employee’s performance on the actual work for which he or she is responsible. Performance measurement in traditional work environments can be diverted by factors that don’t involve the true productivity of the employee. Did the employee arrive at 9:00 or 9:30 a.m.? Is he wearing appropriate attire for the office? These are not the questions that managers of remote employees ask. Instead, they are focused on the employee’s work results: Did he finish the report on time? Is her sales team improving their closing ratios? Remote work doesn’t enable slacking off – you can’t disguise lack of productivity; but it does refocus the manager’s attention on what’s important.

Some Trade-offs

The authors aren’t starry-eyed zealots about remote work, nor are they academics examining the virtual workplace as a theoretical construct. They recognize the advantages and potential of remote work but also recognize that there can be some trade-offs. Sometimes it’s nice to talk to your manager in person or sit in a room with your colleagues brainstorming on the next big idea.

Discipline is a big commitment, more than you realize. And interruptions are going to happen – it’s hard to say no to your child showing you the “A” on his homework.

But with technology and the right management – for example, holding weekly virtual meetings where people can give an informal report on their week – the tradeoffs can be mitigated, and the full benefits of virtual work can be enjoyed by employees and organizations alike.

Of course, there will always be some bosses who steadfastly believe remote employees means total loss of control. In such cases, the employee looking for virtual work employment has but one choice: to look elsewhere. In the end, it’s the company that loses.

Transforming Business at the Intersection of Marketing and Technology

CONVERGE

MARKETING AND TECHNOLOGY JOIN FORCES AT LAST

In the past, marketing and technology were considered two vastly different functions. Nothing could be more different today, argue Bob Lord and Ray Velez, CEO and chief technology officer (CTO), respectively, of the global digital marketing group Razorfish. Marketing is about creating a customer experience, the authors write. And in today’s world of customers enabled by the Internet and the smartphone to be both engaged and demanding, creating a customer experience requires what the authors call the “convergence” of the disciplines and skills related to both marketing and technology.

More specifically, convergence is the coming together of media, technology and creativity. All three of these areas have dramatically changed in the past few decades, the authors write. Media is not about one-way communication such as TV ads, but about engaging with customers who control your brand’s reputation. Technology is not about infrastructure, but about identifying customer segments and helping to tell the stories that will bring them to the brand. And creativity is no longer a topdown process. Today, creativity comes from everywhere, including your customers.

It’s All About the Customer

One of the core themes of Converge is that business has never been more customer-driven than it is today. In this new customer-centric world, marketing, the authors write, “is no longer about throwing a message out into the world and hoping that you interrupt the right person at the right time. Marketing has become about service and utility, and much of it is technology enabled.” In other words, successful marketing requires using technology to help customers achieve their goals.

This is a lesson that Jeff Bezos and Amazon understood from day one, and technology-driven features such as their recommendation systems and readers’ reviews are the reason that no company – not even Barnes and Noble – has been able to knock the pioneer of online book sales off its perch. Customer-centricity is the first of the authors’ five principles of convergence that are required for success. The other four are:

  • Reject silos. Collaboration across functions is an absolute prerequisite for      convergence.
  • Act like a startup. Go for cheap, fast and flexible.
  • Adopt a cross-disciplinary mindset. “Get a wide variety of expertise around the      table,” write the authors.
  • Think of your brand as a service. You’re not selling stuff; you’re fulfilling a need.

Applying the Buzz Words

Much of the terminology covered in this text – such as cloud computing and data-mining – will be familiar. Through its explanations and examples, however, Converge transforms these often vague buzzwords into meaningful concepts with clear applications. Cloud computing, for example, allows companies that don’t have the resources of an Amazon to replicate Amazon’s data processing at a much lower cost than through traditional servers.

How to make the most of big data, what ubiquitous computing means to your company and its clients, and how to change your processes to take full advantage of today’s “marketing eco-system” are just a few of the critical business topics covered in Converge. Ending each chapter with a convergence to-do list called “Convergence Catalysts,” the authors – consultants responsible for results and not white papers – have produced a clearly written guide to marketing in the 21st century directly aimed at the business practitioner.

The New Power of the Consumer

MOBILE INFLUENCE

MASTER THE MOBILE SHOPPING LIFE CYCLE

In his new book, Mobile Influence, digital pioneer Chuck Martin quotes a vice president of one of the largest food brand companies in the world, who tells him, “There are 7 billion people in the world, and 5.1 billion of them have a cell phone, and 4 billion have a toothbrush.” With dramatic figures such as these, it’s hard to argue with Martin’s contention that “mobile is a complete game changer that alters consumer shopping like nothing before it.”

Specifically, Martin argues that mobile has killed the traditional sales funnel and replaced it with a new sixphase process that he calls the Mobile Shopping Life Cycle. The traditional sales funnel dealt with a stationary customer who moved step-by-step closer to the purchase. The mobile shopping cycle phases are not sequential but instead represent opportunities for influencing the customer that could happen at any time.

The Sale That Got Away

For example, Martin describes an experience at a Dick’s Sporting Goods store in which he saw an item for sale. On his mobile, he found the same item 30 percent cheaper at another retailer. Since the manager at Dick’s refused to match the price, the author bought the item from the second retailer.

Notice that the other retailer had not moved the author from awareness to consideration to purchase. Instead, the other retailer became engaged with the author for the first time when the author was about to make the purchase at another store! “During the six distinct moments of the Mobile Shopping Life Cycle,” Martin explains, “marketers have the potential to steer the mobile consumer toward their product and influence shopping behaviors.”

The Six Influence Points

The six influence points of the Mobile Shopping Life Cycle are identified by Martin as follows:

1. The Set Up (Pre-buy). In this phase, the mobile shopper is doing research, Martin writes. This phase is similar to the traditional search phase of the pre-mobile age, except, of course, the technology used for the search is digital and mobile.

2. The Move (The transit). The consumer is on the way to the store or is running errands. The retailer locks in to the location and sends targeted messages to the consumer. For example, a customer is at a mall tweeting “I’m buying a new pair of jeans.” Alert marketers can contact the tweeting customer and use an offer to get them into their store in the mall.

3. The Push (On location). The consumer is at a brick-and-mortar store. There are a variety of uses for mobile in the store, from accessing coupons for redemption at the store to reading product reviews or looking at the retailer’s website for product info.

4. The Play (Selection process). The consumer is near the actual product being considered for purchase. One example: Consumers are scanning prices and comparing them on the spot with prices at other stores. As the example described above demonstrates, retailers need to pay attention to “the play.”

5. The Wrap (Point of purchase). This is a chance to connect with the consumer … while they are buying your product. For example, offers and counteroffers can be sent to the mobile device as the consumer is using a mobile self-checkout option.

6. The Takeaway (Post-purchase). As a buyer excitedly sends a picture of his car via his mobile, how can the auto manufacturer or dealer become part of the conversation? This is an example of the challenge for marketers at this phase.

Consumer interest in mobile shopping is so high that sometimes businesses are caught unaware. In the chapter on the pre-buy phase, Martin tells the story of a consumer loan company that put its loan application online. When a majority of online consumers unexpectedly started filling out the long and detailed application using their mobile devices instead of their laptops, the company realized that they needed to take specific steps to address the needs of mobile prospects and customers.

Written by the CEO of the Mobile Future Institute, Mobile Influence is an invaluable tool for businesses that are looking to take full advantage of the mobile revolution.