Friday 3 September 2010

Social Media - Case Study Update - Lessons for Business

Last week we looked at how music festivals are using social media. After this last week’s updates, I promised to take a further look.

What makes a festival succeed? What lessons can be learned about using social media?

How can this experience be applied to other types of businesses?


This last weekend were two contrasting festivals. Reading is a rock festival that has been going for years, whereas Serenata is a classical music festival in its first year. Reading was sold out completely before the weekend, whereas Serenata had only sold some 2000 out of an expected 9000 by half-way, but hopefully sold some more before the close. Pleased to see Serenata announced "thousands" attended (two?) and it will take place again next year.

So what can be learned? What makes a festival succeed? How can social media be used, not just for festivals but other businesses?

Why Do People Pay Good Money?

Music must be very powerful for normally sane people to pay to camp over a weekend in mud with broken sleep and probably filthy loos. Or in the case of the BBC Proms, to stand queuing for hours only to stand another few hours for the performance (I’ve been there, done that!)

First point of call was Graham Jones, Internet Psychologist. His reply “It's all to do with identity and the construction of self.” Deep, man. “Or the people who go to festivals just like the music...! And their love of the music outweighs the mud, broken sleep and dodgy toilets...!” That’s more likely. Why?

The music that we like tends to be of two kinds, what we hear in the womb and music which has the same rhythm as our mother's heartbeat. We’ll also like the music our friends like when we are trying to establish our self-identity during our teenage years.” That certainly explains the success of the 80s Rewind Festival.

Either way, the fact is that people love music. Rather like food and water, they will move heaven and earth to get it. People also like to party, and festivals can provide a giant, exciting party atmosphere. A welcome, exciting release from the weekly grind! People will also tend to get a group of friends together to go to events like this.

So is partying the real driver? I’ve mentioned the BBC proms. Most people will have seen the Last Night, with flags and balloons and silly noises. Other concerts in the series are far more refined, so partying isn’t necessarily the driver by comparison to a normal sit-down concert. What about Henley Festival, which is an outdoor classical music festival that often requires welly boots? It's different from Serenata and rock festivals in that people attend for individual days, going home each night. Nonetheless let's take a look ...

A Look At Henley Festival

The Henley Festival took place in early July, using  the Regatta site and facilities. Interestingly Henley's website is titled “The Summer’s Greatest Party”, and they ask “Who came to the party”. Artists ranged from Nigel Kennedy to Ronan Keating. This is a black-tie and long dresses party with posh sit-down restaurants rather than burger vans. The event is always well attended, with some days’ tickets selling out well in advance

The Henley website has links to two social media sites, but positioned oddly such that I missed them initially:
  1. Twitter. Only started this year, a couple of weeks before the event. Well utilised. Retweeted where people had said positive things about the festival before the event, neatly building on “word of mouth”. Then tweeted during the festival as to what was going on. Not sure about relevance of the tweets made afterwards though (I suspect they're trying to continue engagement and build a following pending the build-up to next year's event). Certainly a good foundation
  2. Facebook. An initial flurry in May to post photos from last year and headliners for this year. Otherwise apparently forgotten and under-utilised. So not surprising that virtually no festival-goers posts or discussions. Where's the photos from this year?
Lesson Learned for Festivals

So how does an event like Seranata help to get people along using social media?:
  1. It helps to create a party atmosphere, both at the venue and in publicity. Social media provides the opportunity for words, photos and videos
  2. It helps to talk about the headlining artists and the music they will be playing, and social media can help spread the word and engage with potential festival-goers
  3. As people like to come along in groups, social media is ideal to help them do it – it’s a matter of making it easier for them. None of the festivals used Apps to encourage people to spread the word to their friends, but like we saw for the general election, these can be very powerful

Unlike festivals such as  Henley, Serenata have made a point of updating their website and the social media streams to talk about the event and post testimonial comments.. They are really keen to hold it again next year, and are starting now!

Applicability To Other Types Of Business

Whilst these ideas aren’t directly applicable to marketing other forms of business, the underlying principles are:
  1. Have something interesting to say, especially by the use of events or time-limited specials
  2. Use that to generate involvement and that magic word “engagement”
  3. Make it easy for people to spread the word. “Word of mouth” is always the most powerful form of marketing!
  4. Testimonials are so important as part of this process
Doesn't it all take too much time?  Actually once you get in to it, it can be a  few minutes each day. That can produce an incredible return on  investment!

For "local" businesses, such as shops, pubs and entertainment venues, it's also worth looking at the "location-based" services such as Foursquare, Gowalla and Facebook Places which I'll look at next week ....

Stop Press – Apple’s new Ping service

Apple have just launched a new social media service apparently to rival MySpace called “Ping.com”. Here’s 5 reasons not to use Ping, which actually gives a good insight into how Ping works. I’ll take a closer look later too …

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Thursday 2 September 2010

Escaping Excel Hell - Budgeting

Budgeting. A word that strikes horror into every finance department and every corporate manager.

For smaller businesses budgeting is often a totally alien concept. So sadly is cash flow forecasting. For them a simple Excel spreadsheet could transform their business, giving them forward visibility of issues and the time to avoid therm.  But as they grow ....

Many larger businesses still use Excel. Imagine running 300 cost centres across a £250m business that had changed from manufacturing to product/service projects in just a few short years. I've seen it and helped replace it:
  • Forecasting cycles that are far too long and laborious
  • Spreadsheets that are probably riddled with errors but management's worried they don't know where or how big
  • Integrated spreadsheets held together in their own words "with sticking plaster"
  • Where is the final version when we want to compare actual to budget?
  • What, no drill down?
That's Excel hell!

The FD's vision when we first met was a system that allowed them to compile a budget and more regular forecasts, in equivalent detail to the spreadsheets. He then wanted to be able to easily compare actual to budget/forecast with drill down to detail for both actuals and budgets

The first step was to reconsider the whole reporting structure. Revenue from products and now an increasing number of services, some in-house and some bought in. Projects involving both projects and services, and far fewer than 300 real cost centres. How should this be rationalised? Should the "profit centres" concept be used, with an internal market? If so, how?

The next step was to fully understand what was in the existing spreadsheets, how they linked together, and the issues involved in collecting information from budget holders. Mind-boggling!

The third step was to bring everything together into a "User Requirements Specification" (URS) that simplified all the needs and issues as concisely as possible, for management to review and sign off. This also contained enough to brief potential suppliers, and to be used for demos and system testing. As they say, the rest is history....

With  solutions available on-premise and in the cloud, it's important to be aware of the risks both ways, and keep an open mind of the opportunities. It's also important to follow a selection process that caters for both on-premise and cloud SaaS...



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Wednesday 1 September 2010

Performance Management - Gauges in Excel Dashboards

Just a reminder that if you've been hunting for gauges to add to your Excel dashboard, then here they are!

There are a wide set of different styles configurable, one of which is as in the diagram.

We've arranged a free trial if you'd like to try the gauges out


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Tuesday 31 August 2010

Cloud Computing - Implementation Process for SaaS - How Different from On-Premise?

A week ago we looked at how the selection process needs to be tweaked to choose a cloud SaaS (Software as a Service) solution, compared to traditional on-premise software.

Here is a quick summary of a typical on-premise implementation process for a mid-market solution, and how this needs to be changed for SaaS. The same principles also apply to small and corporate systems, simply adjusting the level of work required.

Actually very little changes for a system of equivalent scope and complexity. For example it is still important to get the configuration right, to get reporting right, and to make sure users are sufficiently familiar with how to use the system.

In addition to overall project management and change management, the key steps are typically as follows:

. STEP CHANGE FOR SaaS
1 Project Initiation & Planning No difference
2 Software Installation Software already available online
3 Physical Design Preparation Only if integration
4 Pilot/Prototype Design & Build
e.g. Expand Reporting Requirements,
Design Configuration Options, etc
Access Security & Disaster Recovery
5 Build Pilot System No difference (except it's online)
6 Test The Pilot System No difference
7 End-User Training No difference
8 Build Live System No difference
9 Data Conversion No difference
10 Live Running No difference
11 Continue To Develop Reports No difference
12 Post-Implementation Review
(After 3-6 Months)
Carry Out Remedial Action
No difference

In practice, for larger systems the implementation may be phased, in which case much of the process is repeated for each phase.

If you would like to know what is involved in each stage, such as developing workflow and suitable security, or how the process needs to be adapted to apply to your specific situation, do contact me on +44(0)1628 632914, or by email at challisc @ camwells.co.uk (please remove gaps first). I look forward to talking to you.

Or do feel free to leave a comment ...

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Monday 30 August 2010

News Review - Successful UK eSite Lessons

This email arrived today: "Moonpig.com specialise in cards with personalised pictures and messages and have nearly doubled their pre-tax profits to £11.2m for the year to April, up from £6.7m the previous financial year."

It's good to see a UK success story, with figures that are more down to earth than the likes of Facebook. There really is space for all sorts of internet businesses, provided they capture the public's imagination with both name and offering.

Founded in 2000, and named after the founder's school nickname, their history makes interesting reading. They "moved to Guernsey in 2006 in order to benefit from the island's VAT exemption on UK-bound goods costing less than £18". Worth remembering!

Now as it happens Camwells has its 17th birthday tomorrow, 31st August. In fact the work started on Bank Holiday Monday, implementing a system to double client's profits. On our tenth birthday a whole host of stuff arrived congratulating us for reaching that milestone. Nothing since. So what a good chance to test Moonpig out sending a birthday card to myself. (how Beanish!). Pity the email that can optionally be sent in parallel won't be sent until the 2nd September, with no apparent way of sending it now or tomorrow.


With a fee of only £3.49, including postage, this poses a real challenge for handling the payment, as transaction fees can make this size of charge uneconomic. As I mentioned in a recent article, PayPal are just launching a new micropayments service. It will be interesting to see if Moonpig uses it.

The history also includes the phrase "shows a typical curve for a successful start-up — a big, £1 million loss establishing it in its first year, negligible losses edging into negligible earnings over the next six years, and thereafter a seven-figure profit"


So how can this be short-cutted to reach 7 figures profit by boot-strapping, without the earlier losses? I had my own "lightbulb" moment when I woke this morning, but any suggestions gratefully received ...do leave a comment....

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