I was never a huge fan of American Airlines but that’s mainly because I had a few bad experiences a number of years ago that made my shy away from them whenever possible. Today that’s an impractical approach to air travel as trying to avoid an airline only serves to offer the customer fewer options and likely higher prices.

Flying commercial airlines in the U.S. today is akin to getting on a bus or train. Few airlines distinguish themselves and if you are flying economy they all appear to be the same to me. Remember Jet Blue and their original appeal? Leather seats, individual Direct TV in your seat and snacks that were a bit different than other airlines. Jet Blue also tried to be fun with glib flight attendants and pilots. Today Jet Blue (to me) is pretty much just another airline. The leather seats are nice but wearing a bit. The Direct TV thing is pretty good but I’ve been on flights where my individual screen did not work.

Is there any domestic airline that distinguishes itself? Virgin America has made a concerted effort although their fares are notably higher than the competition. Since the airlines have decided to make air travel akin to mass transit it’s a game where the lowest fare wins and damn everything else. In fact I don’t know about you but I’ve noticed that most (not all) flight attendants seem to just be going through the motions and look like they’d rather be someplace else. The airlines constant labor disputes and troubles have taken away flight attendant’s smiles.

There are a host of well-known and not so well-known aggregators and an article in yesterday’s Wall Street Journal highlighted the craziness when it comes to fare shopping – http://on.wsj.com/xJ9qdQ. Also this week in a response to sites like Kayak, Priceline and Travelocity, the several airlines introduced a collective fare buying platform of their own that will launch later this year. This is in response to the airlines dissatisfaction with the aggregators taking too large a portion of the airfares for the airlines’ liking.

The race to offer the lowest price with the least amount of service appears sure to continue.
If you have a favorite airline is it only because of the ability to stockpile miles and rewards? Or do you really have a favorite airline because you perceive that airline to be better?

In my experience QR codes are clumsy, and don’t work as often as they do work. The smartphone QR code readers are not great and I frequently have to shoot a QR code multiple times in order to get it to ‘register’. For marketers and companies that wish to more deeply engage current and potential customers, QR codes can end up being more harmful than helpful. And asking your prospect or customer to make excessive efforts in order to get information on your company or offer is hardly a path to a consumer-friendly experience. I’m not saying QR codes do not work at all – just that they do not work well.

So if QR codes are to meet their demise something has to be there to replace them – and it has to be better. Near Field Communications (NFC) very well could be the answer. From http://www.Wikipedia.com: ‘NFC, allows for simplified transactions, data exchange, and wireless connections between two devices in close proximity to each other, usually by no more than a few centimeters. It is expected to become a widely used system for making payments by smartphone in the United States. Many smartphones currently on the market already contain embedded NFC chips that can send encrypted data a short distance (“near field”) to a reader located, for instance, next to a retail cash register. Shoppers who have their credit card information stored in their NFC smartphones can pay for purchases by waving their smartphones near or tapping them on the reader, rather than bothering with the actual credit card’.

David Pogue in his excellent column Thursday in the New York Times discusses the relationship between NFC and Google Wallet – http://nyti.ms/nPdh7C. It’s interesting that NFC technology is nearly ten years old and is still being finessed. In fact in the U.S. the current generation of NFC technology is only available on Sprint’s Google Nexus – and admittedly this is NFC 1.0.

For those of you that prefer Katie Boehret’s video review (she also has a written column from Thursday’s Wall Street Journal) that can be found here – http://on.wsj.com/oK7we8
But there have to be many people who like me would welcome the day when we could use a digital wallet and have our phone (which is with us all the time anyway) be able to do so much more when it comes to purchasing goods, receiving timely offers, as well as to request information easily and in a timely fashion.

It’s the wave of the near future. Are you ready?

The current field trial of Google+ allows Google to hear the noise and then tweak what they feel needs tweaking. The crash and burn of Google Buzz has learned Google a few things as the saying goes. Katie Boehret of the Wall Street Journal on Wednesday did a nice job of laying out her viewpoint on Google+ and I agree with many of her observations here – http://on.wsj.com/qnCmdR and an accompanying video here http://on.wsj.com/qTnaFB.

One of the most attractive features of Google+ is the ‘Circles’ aspect. I like the way you can organize friends, colleagues, family, enemies, or whatever into their own circles. Nobody can see what circle or circles you’ve put them in but it offers you the categorization of relationships that continues to be lacking on Facebook.

I am sure there have been many times when some obscure professional or work acquaintance ‘friend requested’ you on Facebook. The normal reaction is to shake your head and then click ‘Ignore’. But what if your boss sends a ‘Friend Request’ on Facebook? With Google+ you can share what you want to share with any particular circle. Or not. BIG +.

I haven’t used the Google+ ‘Sparks’ feature as yet, nor have I used the group video chat module called ‘Hangouts’. I can see the value of both and the Hangouts group chat (up to 10 people) could become popular among some users (but probably not me). The Google+ mobile feature offers group texting (it’s called Huddle) and I can see that being useful and another separator from Facebook.

So overall I feel Google+ has done a good job of taking the things I like about Facebook and enhancing them. But unless the people I interact with (my friends and family) on Facebook migrate en masse over to Google+ I personally don’t see myself giving up my Facebook account nor do I anticipate many other people doing that either. And the thought of having to manage two social network profiles will be a non-starter don’t you think?

I will continue to use Google+ for a while at least. If you’d like to be invited to try it, just send me a note and I will invite you to try it as well. But if you do I’d love for you to come back here to my blog and let everyone know what you thought. It’s all about the conversation isn’t it?

In our discussions with Chinese companies we’ve explored the idea of helping them bring LED light bulbs into the United States. So far there has been a great deal of hesitancy on the part of the Chinese companies we have met with to lead with LED light bulbs to be marketed to American consumers. Part of the reason is that sales of building-wide lighting systems are substantially larger and easier than selling individual light bulbs to individual American consumers. However we firmly believe (as the article supports) Americans will be VERY receptive to LED light bulbs once the prices come down which they are predicted to do in a relatively short time. It is our belief that direct-to-consumer marketing of LED light bulbs would allow for lower pricing to happen even more quickly.

Compact Fluorescent Bulbs (CFL’s) have been a step in the right direction but as I have noted before (link to your previous blog post) the trace amounts of mercury found in them is of great concern and for the most part they are not dimmable which is a major drawback. That they are odd-looking unless housed in an outer bulb is more of a minor issue.

The current pricing for LED light bulbs are $20-$55 each. This is in stark contrast to traditional incandescent bulbs which are priced at 25-50 cents each or even CFL’s which average $2 to $5. We are talking 100 times the cost here! The life spans of LED are not 100 times as long as traditional incandescent – more like 25-30 times. The annual operating costs of LED bulbs however are less than 25% per bulb as compared to traditional incandescent bulbs.

Once prices for LED bulbs come down into the $10/bulb or less range the idea that they last 25 times longer and use less energy will have people clamoring to buy them. And they will have to come down in price since I wonder about how people will feel when they drop and break a $20 or even $50 bulb. Dropping and breaking a $ 0.50 bulb is mess. Dropping a $ 20 or even $ 50 bulb is a catastrophe!

What would it take for you to ‘switch’ over to an LED bulb? Is there a price threshold? Would you miss 132-year old technology?

Although my first trip to China last fall was interesting and frantic (as was this one) I felt that I had more of an opportunity this time to spend time interacting with great Chinese people to a much larger degree. Here are four things I learned that I have as a quick takeaway:

1) Chinese people have more variety on their table at every meal than anyplace I’ve ever been I had a series of banquet like events some with more than a dozen courses. There were a number of times I was not sure what I was eating right away. Unusual things I ate – sharkskin soup, honeybees and yes – scorpion. All the meals had a few varieties of steamed greens (even breakfast). Meals in China are at a much slower pace than in the USA. I also will have to get used to drinking the warm water as that’s the way it’s served.

2) Chinese people will consistently go out of their way to help. This was evidenced by so many different people, from driving me around to taking me out for meals (I only paid for 1 meal in China and had to fight to do that). I will keep that in mind when my Chinese friends and associates come to the USA since I will want to pick them up, drive them around and take care of them in the same manner. Not something that is a custom in the U.S. but it really helps grow a personal and then professional relationship.

3) China is under construction and dustier and less hygienic than the USA. I did not notice the amount of construction going on last time I was in Shanghai, Beijing, and Wuxi. Shenzhen is also growing like mad and building goes on 7 days a week. Bathrooms in China are not always all that clean (that is also true in the USA) and there are seldom towels with which to try your hands.

4) If you want to do business in China you have to be there. My second trip has demonstrated that even more clearly to me. I left with a number excellent business opportunities and will be following up with some proposals but in order to have a chance to make those deals happen I will have to present in person on my next trip which I expect will be in 3-4 months. Our company can really help Chinese companies in marketing to the west and the USA in particular. I felt the many CEO’s at the companies I met understood that (for example I met with the CEO of the largest television manufacturer in China – Skyworth) but also encouraged me to come back which told me that they need to see my commitment to China by returning again soon.

There are many other observations I have on my trip and I will detail things to a larger degree once I have had a chance for the experience to settle in a bit more. I really like going to China and look forward to exploring more of its culture, its people and its history.

By the way I read an interesting book on my Kindle on the way to China – ‘Big in China’ by Wall Street Journal writer Alan Paul. He and his wife Rebecca who works for the WSJ moved their young family to Beijing in 2005 for 3 ½ years and he describes the experience. Worth reading if you want to get a sense of what it is and was like living in China for an American.

The idea itself is both interesting and perhaps even overdue. What surprised me is the small difference between the price for a Kindle with and without ads. Keep in mind that the Kindle owner can turn off the Wi-Fi so that ads will not be served and you can read on your Kindle without ads except when you go the Kindle store to buy something.

I take it as some type of return salvo against Apple’s iPad 2 which still has A T & T Wireless customers still lining up in the streets in order to try to get one. From the article in the Wall Street Journal from April 12th by Stu Wood – ‘Some in publishing suggested that the new lower price is a savvy move.’ “People won’t hesitate to buy the cheaper device because advertising is everywhere we look,” said Richard Curtis, a New York literary agent and digital book publisher. “People will think it’s a good trade-off.” And if they actually look at the ads, so much the better for the advertisers and Amazon”.

But only a $ 25 discount? Amazon is said to have sold more than 5 million Kindles in 2010 alone. If half that universe purchased an ad supported Kindle in 2011 that would mean a universe of 2,500,000 for which ads could be served. It seems to me that even with modest projections the lifetime value of the purchasing consumer would be worth far more than a measly $ 25 discount.

If Amazon truly wants to make makers of other E-readers and tablets take notice, the price of an advertising-supported Kindle should come down even more – how about $ 49? How about free with the purchase of 10 or more books from the Kindle Store?

Or how about a free Kindle if the customer buys an advertising-supported Kindle and also agrees to purchase 10 books from the Kindle store over a defined time period? That’s how Columbia House Record Clubs, BMG Records and Book of the Month did it for years. Only this time the books are delivered electronically so there is no cost for shipping and handling.

How about it – would you like a free Amazon Kindle with ads and a promise to buy a certain number of books over a certain period of time?

Recently I checked on my own projected SSA benefit at the .gov website http://1.usa.gov/fC1VlM that shows what one would take out on a monthly basis. For me the amount would not be insubstantial but it’s still a very long time before I could qualify to take the maximum benefit (most people will defer to that number in the hope they won’t need to reduce their ‘benefit’ by taking it earlier with penalties).

I realize that the minimum age for social security will continue to increase. The intellectual part of me knows that this has to happen in order for the system to remain solvent as long as possible. But that does very little for those people who are counting on Social Security as a substantial part of their ‘retirement’ income.

My particular generation may well have the distinction of paying into the Social Security system longer than any previous generation (since the minimum age is continually rising) and then have nothing left to take out when our time comes.

United States politicians are ‘aware’ of the problems and issues. President Obama and all of his recent predecessors have talked about problems with the future of the Social Security program. All would like you to believe that they will figure out a way for Social Security to be there for Americans. Given the current national debt problems I don’t see how Social Security can last twenty years without dramatic changes – changes that heretofore have been deemed anathema.

I don’t wish to be the dark cloud of doom on a spring Monday morning. But being a realist, has me thinking that my wife and I had best not plan for Social Security to ‘supplement’ (wasn’t that the original idea behind it in the first place?), our retirement income.

Of course I’m not even thinking about retirement. And while that does not bother me it’s a good thing since I think we’ll be working for many years to come. It’s also a good thing that I like what I do and generally enjoy working. But that’s hardly the case for many other people and there is bound to be some serious resentment on the part of people counting on Social Security when they realize it either is not going to be there until age 77+ if at all.

We’ve all been paying into the Social Security system. Are you counting on Social Security to be there when your turn comes?

In the digits column in last Wednesday’s Wall Street Journal http://on.wsj.com/hCUilw Michael Hickins wonders if Google is planning to get into the airline business. Apparently OnePass is also the name of a system developed by ThomsonReuters to allow customers to access TR professional websites. But what I am really wondering is if OnePass is really that good of a name in the first place?

The new Google concept allows consumers to view content they have purchased on a number of different viewing platforms – eReaders, mobile phones, non Apple tablets i.e.,. This is a very good idea and serves customers well while at the same time being a direct shot across the bow at Apple which (rightly so I might add) has taken heat for skimming 30% off the top on subscription revenue from publishers using the Apple iTunes App Store.

The plan for the merged United Airlines and Continental Airlines is for a ‘new’ reward program to be unveiled with a new name. While that opens the door for Google I am surprised at the lack of creativity in choosing One Pass. It does not explain what it is and at best is evocative of another popular (there are more than 50 million Continental One Pass members) product that has nothing to do with Google or this service.
Good concept by Google but as far as I am concerned they have blown it with the bad name. My bet is Google will change it before they consider getting in the airline business.

Of course it’s possible that people did not even notice. Did you?

Other social influence measuring sites exist like www.Peerindex.com and www.Topvoice.com as well. (Full disclosure – I have met the CEO of Top Voice and the Chairwoman is a business associate and friend).
In an article in Tuesday’s Wall Street Journal http://on.wsj.com/hZoFDb a 25 year old woman was given access to a ‘swanky holiday party’ on the basis of her tweets being ‘influential’. The woman was surprised. That would not have been my reaction but I’m far from being 25 years old.

I became aware of Klout several months ago and signed up for an account (my Klout score is a lowly 32 – even Hosni Mubarak has me beat at a 43). 70 is considered a pretty good Klout score and Justin Bieber has a Klout score of 100 (Bill Gates has a score of 76 BTW – I myself don’t find Bill Gates to be less influential than Justin Bieber but hey that’s me).

So the next question is (at least for this marketer) – “Where’s the revenue model?” While the WSJ article does not outline the revenue model , theoretically by using Klout consumer brands could reach out to top influencers by having them talk about the brand – positive or (dare it be), negative. Maybe it could work and I am probably missing something so help me out if you have a better idea.

Top Voice is also a new entry and they are working through the challenges of being a start up with regard to interface and site usability. I understand the Top Voice revenue model much better than that of Klout. People Tweet or post about their favorite brands and are rewarded with points which can then lead to them receiving merchandise for becoming a Top Voice influencer. So both the brands and the individual can benefit.

Social media influence is here to stay whether people want to accept that is important or not. Even if you personally feel it is a waste of time (as I often do) we marketers should be very aware and watchful of trends and developments. The authenticity of conversations from consumers will continue to gain traction.

So have you checked out your Klout? Will you?

Yet at its core, the prospect of people cutting spending on things like apparel and inessential big purchases – like automobiles and giant flat screen televisions, should not be seen as a bad thing. Weren’t we told that Americans HAD to increase their savings rate? That rate is now up to 6.4% from the latest report about three times greater than 2 years ago. An article in today’s NY Times highlights the challenges of retailers and the economy in general – http://nyti.ms/9ylhPl

Economists never agree but there does seem to be consensus that consumer spending which represents 70% of the American economy has to move forward in order to enable a real recovery to take place. Since retail sales were so bad a year ago, John Long, a retail strategist at Kurt Salmon Associates noted “that should have made this July’s comp a layup”.

An article in the Wall Street Journal earlier this week http://bit.ly/ayAGVe noted that sales of technology and electronics are bright spots but those sales appear to be coming at the expense of items like clothing and appliances.

I cannot for a moment imagine that returning to the ways of the recent past – profligate spending and people spending money they did not have in the first place – will result in economic salvation.

We run a marketing agency and our primary focus is helping our clients gain and retain customers. Consequently consumer (and business for that matter) spending is critical to our mutual success. However I am not disappointed that Americans are being more careful about how much they are spending while at the same time increasing their savings.

The big problem for businesses like ours is getting banks to loosen up their purse strings and actually lend money for expansion and growth for small businesses. But if a return to spending money one does not really have is the answer we are in a lot more trouble than I ever could have imagined.

Agree? Disagree?