Yard Sale Segmentation

Toy Getting Kicked Out of the PenAfter vomiting the last room of neglected toys, shrunken clothing, and low-mileage tricycles across my front yard, I inhaled a sip of coffee while a stocky plumber hopped out of his truck and walked purposefully towards my suburban sprawl.

“You have any guns, knives, bows, arrows or other firearms?”

I glanced at the Red Flyer scooter parked next to a bin of baby clothing, and then down towards a massive collection of kindergarten puzzles my neighbor was trying to unload.

“Um.  No.”

John turned out to be an alright guy.  He told stories about riding his motorcycle down our street before it was developed in the ’80s.  He wandered from table to table chatting with my neighbors, wishing us all the best of luck, and quietly organizing our junk into neat little piles.  I don’t remember if he purchased anything, but he had a good time heckling a few local yard sale regulars.

Ten minutes before the sale began, a suburban mom pulled up in a minivan and identified the best quality items with surgical precision.  She didn’t try to haggle, and presumably she already knew that we had priced the larger items to move.  She politely asked if I could help her load up her van, paid the tab from a fresh fold of $20 bills, and walked over to another table.

An older fellow edged his crumbling Buick into the curb, and took his time leaving the driver seat.  He shuffled along the road, Parkinson’s weighting down every step like a sack of sand.  Bill, the name stitched in cursive on his mechanic’s jacket, spoke with softened commands.  “I’ll take that…you want $10?  How about $5?”  He purchased a few items I was happy to discount, asked me to place them on hold, and drove away.  He came back a few hours later in a shiny new pickup, made a few more purchases at discount, and adamantly refused my help loading up the truck.

A mother expecting her second child arrived with husband and kid #1 in tow.  She talked with my wife while purchasing clothing for the baby and a toy kitchen with tea set for the soon-to-be big sister.  The husband was in a good mood, and he rifled through a box of classic video-games while the little girl hung on his leg.

Various older women sifted through our boxes of used books longer than most.  One took a stack from the free pile to share with her charity.  We accumulated a small library over the years, with sufficient quantity and quality to interest almost anyone looking for a good read.  Our visitors lingered over the titles, talking about the authors, asking my wife for her opinions, and sharing recommendations of their own.  I think we only sold one book for a dollar to a woman who actually smelled the pages while her husband pretended not to be bored.

By the numbers, the suburban mom who arrived early spent the most money in the least amount of time.  The older fellow who liked to haggle came in second.  Yard sale professionals…or what I would call Loyal Customers in the online space.

All of our neighbors had a rich assortment of merchandise.  And since we live next to each other, from the customer’s perspective the assortment seemed especially deep.  However my yard had the largest selection of books (and video games).  Visitors spent time rummaging from box to box, talking about books, organizing the stacks, and occasionally taking one out for a closer look.  While we didn’t sell many books, these Visitors (or their spouses) purchased more on average.  In the online space we would call them Highly Engaged based on their browse behavior.

At the end of the day we made a few hundred dollars.  About half of our sales came from a few Loyal Yard Sale Customers.  The rest trickled in from Browsers; grandparents, expectant mothers, and charitable buyers looking to support a church or preschool in need.

At its worst, Personalization quantifies a cardboard cutout of your customer and leaves you throwing beanbag offers at its head.  In any mass commerce, on your lawn or on the Web, fertilize your assortment with explorable content and document how customers self-organize into segments.  You will quickly learn when it makes sense to hurl that horseshoe of an offer, run back to the house for some new junk, or simply sit back and enjoy the small community growing in your yard.

Zombie Analytics: Data Hungry vs. Data Driven

The Walking Dead Want HorseAll is well…in the beginning.  Your leadership team attended schools like MIT and Wharton.  The latest issue of the McKinsey Quarterly lies dog-eared and defeated on the coffee table.  During the interview, you were in awe of a quantitative religion and by-the-numbers decision process.

And then it happens…

You realize that most meetings are requests for data…and more data.  Email scrape your nerves, hinting that horrible things may happen if data isn’t available by Friday.  Your mind-blowing A/B Testing plan is greeted with vacant stares and growls for more measurement of the status quo…Testing is too risky right now…maybe later when Sales improve.

Zombie Analytics feed an insatiable hunger for data.

The Zombie Apocalypse spreads quickly in corporate environments, driving waves of shock and terror into the few analysts that manage to survive.  Here are a few tips inspired by the The Walking Dead to avoid becoming a cranial cookie for your co-workers:

Ditch the Horse and Hide in a Tank

Ride into your next meeting carrying a thick, juicy report with every conceivable metric.  Once the smell of fresh data triggers the Zombie reflex, run to a secure location where you can plan your next move.  Note that this strategy will help you live another day, but will do nothing to cure the Zombie Apocalypse ravaging your office.

Sacrifice Your Sidekick

Blame your consultants.  Curse at the data.  Basically give the Zombies someone else to chew on while you run for safety.  You might live another day, but you just fed your strongest allies to a mindless eating machine.  And that will raise a few eyebrows among your remaining friends after you catch your breath.

Shoot ’em in the Head

Don’t bother aiming for a rancid arm or leg.  The fastest way to put down a Zombie is right between the eyes with a “double-tap” decapitation just to be safe.  “Here’s your Page Views report…you want fries with that?”  This strategy might get you out of a tight spot, and nothing feels better than offing the undead, but you will get exhausted or run out of bullets at some point.  And there never seems to be a shortage of Zombies…

Find a Cure

Lock yourself in your secret, high-tech lab (good follow-up to “Ditch the Horse and Hide in a Tank” from above).  Setup your defenses (read: Out of Office Assistant) and focus on saving humankind.  Using your analytical blood and scientific skill, find a cure.  Run a high volume of tests and iterate on promising therapies.  It only takes a small dose to start reversing the Zombie plague.  Encouraging signs include:

  1. Creative Review meetings that end half-way with an executive saying “shouldn’t we just test that?”
  2. Demands for a holdout population on any major redesign decision
  3. Clamoring to quantify the financial value analytics brings to the organization

The only real cure for The Zombie Apocalypse is a steady dose of quantifiable results that build faith in the analytical process.  One shot never does it.  Reversing the plague takes time and persistence.  Never forget that the staggering hoard of undead outside your cube are brilliant people trying to find meaning in data.

Now get going…find that cure and stop throwing meat at data hungry Zombies.  The world depends on data-driven survivors like you.

What Amazon Can’t Do…Yet

Hallway in the MFA BostonAfter reading Isaacson’s biography of Steve Jobs and Ready Player One,  I realized that Amazon invented a behavior that I will simply call “Collaboreading.”  As you read an eBook, you will bump into lines highlighted by other readers including a count to measure popularity.

Reading an eBook is now a shared experience.

But I’m not certain that I care to read other people’s notes.  Buying a used textbook with some highlighting in college wasn’t really helpful…it’s the personal connection with the material, the action of applying the highlight, that really helped the material stick.

I finished the biography of Steve Jobs, and wandered over to Amazon’s Recommendations for my next read.  More books on Jobs were suggested, in addition to a few on Legos from a previous purchase.

And that’s when I realized what Amazon can’t do…yet.

I didn’t want to read another book on Steve Jobs.  I was curious about a few books mentioned in the biography itself, such as Zen Mind, Beginner’s Mind by Suzuki.  Or in actually seeing the famous “1984” ad that announced the Macintosh.  And about a week later I decided to watch a biography of Eames on Netflix.  In terms of content, I purchased  the book on Zen (from Amazon) and rented the Eames film.  You can see the “1984” ad for free on YouTube.

Contextual Recommendations are just another form of buyer intent.  It’s the bundle of content you want to buy because of something you learned in the book…which may not be evident from everyone who purchased the book…and which you want to explore now to keep the mental stream flowing.

A Tale of Two eCommerce Companies

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…”

There were two major eCommerce companies who sold the same wares.  One company was based in an expensive city, outsourced IT and paid its local architects in coal.  Any change to the Web site was met with layers of fear, process, and expensive consultants.

The other company was smaller and grew a team of Software Architects in an area of the US deemed barren of any technical talent.  It never needed to offshore or downsize.  Any change to the Web site was met as an opportunity to build something new.

Five years and a few recessions passed.  Along comes Web Analytics with the ability to identify, quantify and exploit opportunity faster than anything eCommerce has ever seen before…as long as your Web site can be quickly modified for a/b and mulitvariate testing.

Which eCommerce company do you think is chasing tail today?

 

Knights, Beer and Paid Content

Newspapers and books have been under fire lately.   Amazon’s Kindle has created a healthy market, and newspapers are looking more appealing for starting fires either to keep warm or to get the BBQ started.  Over the long weekend I purchased a copy of the Saturday Boston Globe on a whim.  And it was the best dollar I have spent in a long while.

I read about the Higgins Armory and decided to take the kids after learning that the museum was open on President’s Day.  We spent the morning enjoying a guided demonstration of armor and swords, and learning about the styles and evolution of armor around the world.

I read a review of seasonal beers, and decided to try a Samuel Adams Noble Pils this evening at The Met Bar & Grill.  It’s easy to drink and amazing with a burger.  I purchased a six-pack to share with the neighbors when they drop by.

I read most of my news online, using tools such as Feedly to organize the RSS feeds that interest me.  And while I feel well informed, my experience this weekend was a reminder that when buying a paper or a book I’m not simply buying news or information.  I’m also buying someone’s editorial or literary guidance.

And in an era of information overload, I’ll pay for sound guidance.

Can there be an app for that?