The Daily Telegraph (a UK broad sheet newspaper) recorded a story on 16th June 2008 about a High Court ruling that requires an ex-employee of Hays to hand over his business contacts built up on the social networking website LinkedIn. The story has been picked up in various places including Brand Republic and Computer Weekly but none raise the obvious more expansive question of what does this mean to the rest of us? Computer Weekly does make reference to a legal specialist that advises employers to add clauses to employment contracts and to ask employees to set up business only networks but I think this misses the point.
Social networks are just that - social. The dictionary definition of ’social’ is “living or preferring to live in a community rather than alone.” The networks don’t have boundaries and certainly don’t separate colleagues from friends. In many ways, if they did it would defeat the object. But for many, the level of transparency is unnerving.
I had lunch with a customer recently who talked about her younger sister connecting with her on Facebook. I have a similar scenario where I am connected to my niece and nephew. They have very different interests and circles of friends to me being as they are about 25 years younger but what is my alternative - deny their existence or compartmentalise them?
Only five days earlier (11th June) the Times Online ran a feature that advised people to keep their social and business networks separate. This is an interesting idea and there were various suggestions made by different people - all in recruitment (or Talent Management if there is a difference). One suggested he uses a nickname on Facebook that only his friends know, and uses LinkedIn for business contacts only. I don’t see how this can work. There has to be crossovers and what happens when a family member or close friend is also in business or vice versa? The article finally ends up with a suggestion that soon software will simply track you down by making connections between you, friends and colleagues and bingo - your profiles are connected for all to see.
What this really means is we have to get ready for a time when virtually everything we put up online will be attributable to us. Potential employers will be able to see our connections with dodgy friends and family members and start judging us across a wider set of values. Is this good or bad? I am certain, their will be losers as there always are but I think this is akin to businesses getting used to corporate blogs - which many have yet to do.
There are countless examples of businesses gaining stronger brands as a result of honest information about them going up on blogs. They are measured by how they respond to negative comments about poor performance and people realise that no business is perfect and actually, if you can see them warts and all you tend to trust them more. The same will surely happen to individuals and I think it will be refreshing.
I predict that the transition will be ugly, but when we get there we may see a levelling of the playing field on a scale never seen before.


Will online sales benefit from high oil prices?
14 07 2008The Economist this week (The Economist July 12th 2008 ) reported that driving behaviour had changed as a result of higher fuel prices. Garages report that there has been a 5-10% drop in in fuel sales and this is as a result of fuel prices rising at their highest rate ever in June. The Economist also reports on data from Footfall, a research firm that tracks customer numbers, that indicates visits to out of town shops have fallen and at a higher rate than the drop in visits to town centres.The suggestion is that consumer behaviour is altering as a result of fuel price inflation.
At the same time Internet Retailing, an online retail website, reported increased sales to online grocery websites. Value retailers have experienced growth of between 30 to 40% in the four weeks to June 7th and visitor numbers for both Morrisons and Asda were up by more than 48% for the 3 months March to May 2008.
Meanwhile on June 30th 2008, ASOS, the UK’s largest online retail store attracting over 1 million visitors per week, were reported by Retail Exec, an online publication aimed at Retail Executives, to have achieved a 90% increase in revenues to £81 million and post pre-tax profits of £7.3 million up £3.4 million on last year.
I was asked to contribute to a book recently called “winners and losers in a troubled economy” and to offer my views on whether ‘online’ would be effected by an economic downturn. The answer to me is clear: Not if executives take on board the data available to them about changing consumer behaviour and the benefits the online channel offers. Having done so, they need to determine to make their online property best of breed.
Not everyone will do this of course and it is easy to predict that in 18 months time when the down turn is becoming a recovery there will be a number of high profile casualties that did not make the right investment decisions and were not able to maximise the opportunity that a down turn presented to their business.
We have all learned over the past decade or so, sometimes painfully, that the Internet is not the answer to all of our problems. However, where the case is dropping high street sales due to altering consumer behaviour as a direct result of high fuel prices there does seem to be a strong positive correlation and maybe this time, it is.
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Tags : Economy, Online, Retail
Categories : Customer Experience, Economy, General Comments, Multi channel