Tjallamalla.com vs Swedishfresh.com

Comments Off
Posted 04 Nov 2010 — by admin
Category Uncategorized

School has been amazingly hectic. Besides starting our own company and trying to get our own marketing strategy for Swedishfresh.com implemented, we have both been assigned to work on new projects 3 days a week, as part of our new module.

tjallamalla.com index 755x1024 Tjallamalla.com vs Swedishfresh.com

The new client is Tjallamalla.com – a Stockholm Söder hipster brand. The site was built by Hyper Island Digitial Media students a year ago. Although the site is aesthetically pleasing, it is poorly optimized for SEO/SEM marketing. We’re going to have to create a whole lot of new pages/url’s to support our ambitions in this area and come up with a whole new strategy for the site. Plus implement an offsite seo strategy, migrate some of their social profiles & create a campaign surrounding this. And not to mention create a email marketing strategy for their site as well. So much to do in 3 weeks – thank goodness there are 5 other classmates in the project team!

I have responsibility for the PPC  and onsite SEO for the site. I’m quite excited about it, as I feel that this was the area I could definitely improve on, then translate the findings to Swedishfresh.com and other projects I am working on right now. Tjallamalla.com has a lot of potential – especially when looking at the potential of low cost, high traffic keywords… exciting!

t’s exciting to work with a fashion site – as it is such a competitive market. Yet it’s still a difficult task to juggle both our personal company and the clients site. But like with everything in Hyper Island – it is more than just the “What”  of the process, and with a schedule like this – one really does need to think about prioritization of one’s values and time. Which is of course a most valuable lesson for any entrepreneur.

As a side note, for your viewing pleasure – a short clip of our latest announcement from Swedishfresh.com. Enjoy & don’t forget to come and visit us!

A Swedish Fresh Way of Life

Comments Off
Posted 22 Oct 2010 — by admin
Category Uncategorized

The last five weeks has been an intense, sometimes hellish, yet rewarding time. During this period, my business partner Stephanie Rydle and I have conceptualized and released the first version of our business – Swedishfresh.com, a website which promotes up to five Swedish designers every quarter to the international market.

I met Stephanie during my studies at Hyper Island and we quickly bonded over our love of cute, aesthetically pleasing Swedish design. We noticed a lot of the high-end Swedish designers were received well abroad, however there was no good way for local designers to compete on the international market – other than to fight for attention on large design sales platforms, like etsy.com or artfire.com. We wanted to provide the opportunity to promote high quality, locally produced Swedish products abroad, so the designers could focus on the creation process. We chose a 3 month time period for each set of designers – as we saw this as a realistic time-frame to launch the designers brands abroad on our site; before accepting a new batch of Swedish designers.

Both Stephanie and I share very similar values, and the same vision for the site. We want to provide a high level of experience to both our customer and to our designer – that is why we  place a strong focus on sharing the story of Swedishfresh.com, and of our products. We do not see our website as just another e-store, but a place where visitors can come – to learn more about Sweden,  to experience our stories and perhaps to purchase their piece of locally produced Swedish design.

In order to reach this point – we strive to adopt the customer service values of Zappos.com and to consistently test our site for usability, conversion and customer satisfaction. It is a level which we are certain that will take much refining and understanding of customers needs- that’s why we are placing a huge amount of focus on developing our social profiles, in order to engage and enlighten the customer. We have already started a small viral campaign, to find our new logo for our site: the video can be viewed below.

In the coming posts, I would like to share more parts of our process – involving ideation of business idea, procurement of logistics and payment providers, more about the platform Shopify -which we built our site on, and the design & development process. And of course my favorites- Usability testing and techniques to drive traffic to our site.

Our website swedishfresh.com is by no means complete, however we are pleased – given our short time frame, and limited resources with the results to date.

Until the next post, feel free to connect with us on Twitter @Swedishfresh or on our Facebook Fan page.

Below: Current version of landing page

Swedishfresh Local Swedish design made for export. 20101022 499x1024 A Swedish Fresh Way of Life

Interview with Digital Media Influencer – James Squires

Comments Off
Posted 20 Oct 2010 — by admin
Category Uncategorized

james squires Interview with Digital Media Influencer   James Squires

Our latest module at Hyper Island  - Information Society, called for all students to contact “digital media influencers”, – those that stood out for creating/leading ground breaking campaigns that help form our digital future.

A recent campaign which caught my attention and heart was Space150′s Augmented Reality campaign for clothing brand Forever21, at Times Square in June this year. Although I had viewed a similar concept earlier this year, by artist Chris O’Shea, I loved how this campaign extended the idea further – catapulting an otherwise exquisite AR play into full-fledged commercial use.

With this campaign in mind, it gave me much pleasure to contact and interview the creative who focused on the digital  interaction and technical aspects behind the billboard – James Squires, Technology Director at Space150. James worked under the direction of  the CEO of Space150 and Creative lead William Jurewicz for this project.  James kindly took his time to answer each question in detail so I do hope you find as much value from his future trend predictions and professional insights, as we did.

Name: James Squires
Age: 31
Company: space150

1. Creativity is an important trait within this industry, what other traits do you think are needed to become a resilient leader? What is your major source of inspiration?

You have to stay insanely informed in digital in order to lead, you can’t fake it in a shop full of experts like space150.  It may sound cliche, but my co-workers at space150 are my major source of inspiration.  We have every digital discipline under one roof and you can soak up so much information just sitting in a few meetings or casual conversation.  Just follow the twitter trail of the space150 employees from @space150; there are so many smart people there.

2. Which trends have you seen in the digital media industry that has surprised you? Are there any current trends which you think will survive long term and what do you see happening in the digital landscape in the coming years? Do you see any negative impact from this?

I don’t know that it has surprised me but I think the biggest trends by far have been in mobile, whether it’s apps, hardware, or integrated projects.  Everything mobile is progressing rapidly compared to the timeline the web has taken; if you took a vacation for 6 months I cannot imagine trying to catch up.   Mobile application design and development is something that I see shaking up a lot in the next 6 months.  The languages for making applications require a huge investment of time to master (Obj-C/iPhone, Java/Android)  This may always been the case for some things like gaming, but I think we’ll see the landscape change dramatically and higher level dynamic platforms for apps will win out making it easier for designers and developers.  The competitive mobile market has really moved things forward but it has created some interesting decisions for professionals.  It’s difficult to target multiple mobile platforms for apps and campaigns.

3. Since the advent of social media (twitter,etc) how has your approach to consuming information changed and what tips do you have for filtering information? Do you see much use in Micro-trends or do you find it distracting with your creative process?

You definitely have to use technology to aggregate the information.  I could not keep up with every channel individually and still stay on top of the work.  I personally use Google Reader and shove hundreds of RSS feeds in there.  Every social media site has an RSS feed and it’s a time saver to be able to read it all in one place.  It’s amazing how quickly you can skim and scan hundreds of items in Google Reader on the iPhone and pick out the important bits.  You’ll pick out an idea or thought from a tweet going into a meeting and it might help shape an ideation session or add a ton of value.  You have to be informed on all of the latest trends to stay relevant but I don’t necessarily feel that it’s distracting.

4. What is your wildest digital dream you would like realized during your lifetime? And what technology would need to be created /further-developed in order for this to be realized? Go crazy!

I’m a pretty big gamer at heart.  My craziest dream would be to see one of my many game ideas come to full fruition or at least be part of the production of one.  I’ve kept a journal with notes on various ideas over the years, and I’ve taken some to a pretty detailed level.  The largest is probably an evolving dream/vision for a fully immersive virtual gaming world (think Star Trek holodeck).  It’s way out there but you can see things already moving in that direction with movies like Avatar.  I hope to see something like it in my lifetime.

5.What is the greatest failure you experienced during your career and how has this experience positively affected you?

Early in my career I worked for a startup where I was employed as the “Webmaster”.  I designed, programmed and managed everything for the companies online presence.  I reported to the VP of Marketing who was an amazingly driven individual, trusting, but also pushed really hard to get the best work he could out of you.  I was tasked with creating a new website for the corporate site and he directed that I create 3 versions for the board of directors to pick from.  Before the meeting my VP felt good about the designs, but all of the designs were quickly dismissed by the CEO.  At the time I couldn’t handle the rejection of every design and it was a huge low point.  I remember working all of the following weekend without sleep to get the final design out and ultimately we launched the site but it was a stand-out experience in rejection and helped shape me.   You have to stand behind your designs and solutions but rejection is part of the gig.

6. E Commerce Management is a new program at Hyper Island – which focuses on developing and leading online business. Is this a profile which you foresee a growing demand for and what trends do you think will influence the development of this field?

Demand in e-commerce for mobile continues grow and is one trend to consider. At space150 we are already working with our clients to offer applications that expand their existing e-commerce business through mobile devices; both for running the business and expanding the way customers complete transactions.

Another shift in the industry is the advent of curated e-commerce sites run by larger entities that focus their efforts on the small business owners with specialities.  The Apple App store is an obvious example but there are many others starting up, some succeeding and some failing; Etsy and Makers Market are two of the larger ones that come to mind.

After reviewing the eCommerce Manager program description that Hyper Island offers I am intrigued to find out more details behind the sessions and workshops offered for the students.

7. For the final question we’d like you to take out your crystal ball in order to make a prediction on what the next years of digital media have in store for us? It’s always better to be a few steps ahead!

In the next few years I see a huge increase in the amount of integrated media and campaigns.  The toolsets have certainly evolved beyond the hobbyists and have enabled designers and developers to complete projects on realistic timelines.  For example it’s great to see projects with the Arduino and Processing making headlines (Nike Chalkbot is a great example despite any controversy it may have caused)

Creating Success – RSS Graffiti

Posted 11 Oct 2010 — by admin
Category Uncategorized

DSC 5252 300x199 Creating Success   RSS Graffiti RSS Graffiti has doubled in the last three months and now serves over 170.000 feeds to approximately 100.000 profile and fan page walls on Facebook. A great milestone, for a small side project started by it’s two founders Yannis Roussochatzakis and Dimitris Komis 20 months ago.

I have personally followed Yannis (@Rousso) for nearly 2 years, and he has quickly become an inspiration to persist with a concept, to allow the evolution from idea to reality. I am certain RSS Graffiti is just a small taste of what is to come, as I am sure you will discover yourself after reading the interview below.

I suggest following Yannis here and Dimitris here on Twitter. You are also welcome view Yannis and Dimitris profile on Linkedin.

It has now been over a year since you first started RSS Graffiti. What first inspired you take on the project and how did you come up with the name “RSS Graffiti”? Tell us the story.
The story starts 1999, with a guitar at hand in front of  a computer. I wanted to get in touch with other people that played Blues, so back then, I decided to start a web community about Blues in my home country, Greece. Fast forward 10 years later, January 2009, I have a small social network focused on Blues music in Greece and I’m looking for ways to promote it through Facebook. Everybody goes on Facebook every day so the idea was quite common: bring the content form my site to a wider (and more loyal) Facebook audience and get more exposure (and more users) for my site. The fundamental means to do that were quite common too: RSS Feeds!
I did some research to see what tools were available for monitoring RSS Feeds and automatically posting stories to a Facebook Fan Page. My conclusion from that research was that the tools available in Facebook at that time, were disproportionately inadequate to my perceived importance of (and potential demand for) the service. So I felt there was a gap in an unexploited market. During those same days I was also evaluating ideas for starting a web project with my friend Dimitris (@dkomis). Although we were aiming quite higher than an RSS tool for Facebook, this idea managed to get first in line very quickly because we (foolishly) thought that this would be a fairly easy thing to do in decent way.  So we started working on RSS Graffiti in late January 2009.
The project was initially codenamed RSS Minifeeder because back in early 2009, the Facebook stream was not invented yet and the name for it was the Facebook Mini-Feed. I came up with the name “RSS Graffiti” a few days before launching it, in August 2009, as a metaphor for writing on a wall. It’s not such an exiting name and not everyone sees the connection between the application’s name and it’s function right away, but it has worked quite well so far.
Have you been surprised by the huge amount of users it has attracted during this time period? What sort of interaction do you have with your users – and how do you monitor any customer service issues they may have?
We always smile to remember  how excited we were when we got our first 100 users sometime in September 2009 (a few weeks after we launched).  Today (a year later) RSS Graffiti writes actively on 100.000 Facebook walls (and we are just as excited about it of course). RSS Graffiti has grown much bigger and much faster than we initially anticipated, so when we first realized that this project could potentially turn out to be a success we were pleasantly surprised yes!
Since the first day we tried to talk to every single one of our users. If they were happy we would thank them, if they were unhappy we tried to make them happy and correct our mistakes. We still try to keep up but it is getting more and more difficult every month.  It seems “impossible” for a team of two to keep up the pace and give immediate and adequate answers to everyone. So we know we need to work more on fostering our community and trying to get support more organized and better oriented to a large user base. We learn as we grow and we know there are specific adjustments we need to make on how we deal with user interaction in order to be able to achieve the impossible and talk to everyone!
Keeping in touch with the users is not an easy task, especially because it has to happen where your users are; which is everywhere! We try to talk to our users wherever they are, but to help centralize the conversation to some extent, we created a user support community at Get Satisfaction. We don’t require our users to come there for asking their questions but we try to point people that way, so that we have a more central location for gathering all this information and managing all this interaction. One of my personal favorites for talking to users is our own Facebook wall (on the Application’s Profile Page). It is not organized at all like Get Satisfaction, but it has a spontaneity that is thrilling. I really plan to invest on this type of interaction especially as a part of our own product and we do plan to add features to make this interaction over a Facebook Wall more manageable.
Given the overwhelming support of the application from the online community, do you have any future plans monetize RSS Graffiti, and if so – would you adopt the popular Freemium model, to retain users?
So far, what we’ve done was kick start RSS Graffiti. Our main priority now is to release our first premium services. We have been working on them during the past month and we are moving ahead at full speed. The model we plan to use is indeed the well established freemium model.
In our first iteration we plan to provide a premium service for the higher end of the market. We aim there because we don’t want to reduce the features that our users already have in order to make room for our paid plans. Instead we are working on providing a service that does not currently exist on the market and that is targeted mainly to businesses and professionals. This will narrow down the market segment that we will be initially targeting, but it will result in a more manageable paid user base, which we will be able to keep happy and supported. Later down the line we will evaluate more options on monetizing the application and furthering our premium offerings.
During your last 12 month journey with RSS Graffiti, what has your biggest challenge been, and how have you overcome this? Is there anything you would have done differently with RSS Graffiti- during this time period?
I think the toughest part of this deal was that we started RSS Graffiti as a side project. It still is a side project. We are now trying to breath some life of its own into it, so that it takes off. Building launching, running, supporting and growing a service like RSS Graffiti as a side project, takes a lot of devotion, discipline and hard work from a small team of two persons like us. This is not the tough part though. The tough part comes when you combine this with a platform like the Facebook Platform. Facebook is notorious for its rapid evolution and change. It’s a huge living, evolving and moving system and you really need to be determined to keep up with it.
Although we have been working on this project for 20 months now, we still feel we are very early in this effort to have any regrets. There are a lot of things I would like to have done better in the process but I know that what we have done so far was the best we could. We have learned a lot of lessons but luckily we didn’t have to endure any disasters so far. Time will tell if we manage to make something of real value out of this effort.
Besides RSS Graffiti being a superior product to itʼs competitors – how have you marketed your application to the community?
We don’t really market RSS Graffiti. What we do is try to make it worthy as a tool and also be there for it whenever and however we are needed. We let RSS Graffiti spread initially through Facebook’s Application Catalog and later through its own users.
I wouldn’t really see (or market) RSS Graffiti as superior to its competitors. What we did from day one in RSS Graffiti (and that’s precisely the reason why we started building it) was to implement features that were missing from other solutions in the market. That is exactly what we are still doing. We try to look at the big picture, find the missing pieces and put them together in RSS Graffiti. As a result, RSS Graffiti does a lot stuff that you cannot find in other applications. At least not yet. But that doesn’t make it really superior. It makes it a bit smarter maybe; or makes it a bit more exciting or groundbreaking. But not superior.
Everybody has something that others don’t. One thing I “envy” in other teams is that they have more social media marketing know-how available to them and this enables them to offer -for instance- consulting to their customers. I’d like to have that in RSS Graffiti; not because I want to sell consulting services but because I think I could put it to good use in better understanding our most demanding customers and better providing them with high-end solutions. We like RSS Graffiti to be a pioneering tool. We would like our users to know that RSS Graffiti will keep exploring new ways for making more things possible. I can’t find the proper word for this now, but when I will, I will probably base a campaign on it.
Where would you like to see RSS Graffiti in the next 12 months? What would you like to have achieved, and do you have any benchmarks in place – to achieve these goals?
RSS Graffiti is actually three products; but we only have so far unfolded just one of them. We like to see it as a product spanning three axis. One of them is bringing content to Facebook. That’s what RSS Graffiti mainly does now; it brings content from external sources into Facebook. Another axis that we are only starting to unfold with our “Wall Paper” feature, is about consuming Facebook content. So there is more than feed publishing that we are working on. If life permits, I would like to see all three axis of RSS Graffiti to have unfolded and evolved after one year. I would also like to see RSS Graffiti to have a viable business model in place and be able to fund its operations and foster its growth.
Internet, as we all know, is far from static. Likewise, Facebook as a leader and a catalyst for innovation on today’s web, is rapidly evolving and changing the social landscape. We would be foolish to assume that a project like RSS Graffiti will even have a context for existence one year from now, but as long as we can see a next step, we are going to be taking it. Even if we can’t see the next step we will probably be taking a leap of faith.
We don’t have any complicated benchmarks for monitoring this progress, but we do follow some indicators of growth, usage and user satisfaction. As a part of the process of designing and launching our first premium services we are also trying different classifications of our audiences in an effort to better understand and identify our target groups and be able to later evaluate our initial assumptions about them.  We do have short-term and long-term goals and we do have mid-term check-points. We are a team of two at the moment but our work is governed using disciplines that you would expect in larger teams.
Do you have any other big projects on the horizon? If so, how do you see the learning experience from RSS Graffiti positively impacting the development of these.
As I mentioned earlier, we see RSS Graffiti as a project spanning three axis, only one of which is currently unfolded. So there are two more child-projects that we will be focusing on in the coming months. We plan to launch them as part of RSS Graffiti because of the synergies we identify in them, but these could very well be three independent Facebook projects altogether.
We started RSS Graffiti because we had to start from somewhere. It seemed like an easy door to open. But we had much broader visions and ideas for things to do on the web and somehow we manage to find links between this project and those other things we wanted to do. So it’s like entering a maze and then keep making choices hoping that the path you follow will lead you closer to where you want to be. That’s how we evolve RSS Graffiti. We try to adjust our vision to our current abilities and options, we take our next step and hope something good will come out.
Finally, what top three tips do you have to developers on how to create a successful application?
I’m not really sure about the value of advice as opposed to the value of experience. Even more so, if the advice comes from me.
One of the things that troubled me while working on RSS Graffiti was the inherent dependence on the Facebook Platform.There has been lots of discussion around the web about Twitter apps and the (un)certainty of their future in view of Twitter’s own expansion into areas of the market that were previously dominated by third party offerings. Practically everyone invests on someone else’s platform (be it Windows, iPhone, Facebook, Twitter, you name it). Web platforms, being generally less mature than desktop ones, tend to evolve very quickly and often change violently. To make things worst, the business landscape of the web is like a huge chess-board where it is hard to predict where the next queen will show up. So game-changing moves are as huge a threat for some, as they are a potential for others. I don’t have any good tips on how to survive this situation, but my attitude towards this is a) keep evolving with the environment and b) be realistic about the application’s lifetime. Tip: (a) extends (b) (or in a more Darwinian context, evolution increases life expectancy). I think that that’s three tips in one so I won’t try to get any wiser than that!
Thank you for hosting me!

Inspiration from Jonathan Briggs

Comments Off
Posted 31 Aug 2010 — by admin
Category Uncategorized

Today’s lecture by Jonathan Briggs, was inspiring, motivating and captivating. In short, all of what I have been looking for at Hyper Island. His breadth of experience and his ease to jump from heavy technical to savvy marketing all left us spell-bound, at one of the founder’s of the school.

It was difficult to hold a critical eye to this particular futuristic sermon. The way in which he tests new techniques on his personal enterprise and creates case studies from these tests to sell to his more orthodox clients, is simple, effective and something to adopt immediately (unless you do already, in which case – bravo to you).

Two favorite topics were “app thinking” – the deconstruction of the websites as we know it, and the implementation of multiple mobile app-like solutions i.e. separate site (“app”) for customer service, location, and e-commerce solution. (A topic which Zynga founder Mark Pincus discusses in more detail as an “app economy”.)

The continual rise of Ad Networks and the dominance of the 4 big players – Google, Facebook, Apple and Twitter. The first three are obvious, and it will be interesting to see how Twitter roles out a favorable monetary solution in this arena.

Other topics of note can be viewed below:

photo 4 e1283288571990 300x201 Inspiration from Jonathan Briggs

On a side note, my favorite quotes were “Spend 50% out of your comfort zone” and ”Eat your own dog food” – two sound activities which I resolve to participate in, with a vengeance icon smile Inspiration from Jonathan Briggs

Effective Team Building

Posted 17 Aug 2010 — by admin
Category Uncategorized

It’s day 2 of the intensive Hyper Island way week, based on the infamous UGL courses – to learn about yourself, team dynamics and the role you play in this.

Most of our exercises are based upon the effective team leadership/membership principals by Dr. Susan Wheelan.  It is Wheelan’s  belief that it takes 6-8 months to create an efficient team – and through concentrated effect, perhaps we will reach this nirvana at an earlier stage. Although, as Wheelan states groups often do not develop past Level 1/2 and I can agree from past experience that it can be very difficult to move forward from this stage – when a group vision/understanding is not shared. Below is a quick breakdown of the 5 stages.

Stage 1: Depency and Inclusion

  • Conformity is high
  • A lack of group structure is evident
  • Members fear rejection

Stage 2: Counterdepency and Fighting

  • Conflicts about values emerge
  • Subgroups and coalitons begin
  • Goal clarification begins

Stage 3: Trust and Structure:

  • Roles  and structure are adjusted so likelihood of achievement is possible
  • Cooperation is more evident
  • Leaders role becomes more consultative than directive

Stage 4: Work

  • Role assignments match members abilities
  • Members are clear/agree about teams goals
  • Team is highly cohesive

Termination

  • Reflection of how the work/group performed

To learn more about Wheelan’s methodology I reccomend reading “Creating Effective Teams”  and/or watching her lecture below. (Do note the audio/visual quality is not superb, and that Wheelan often digresses – yet the content is overall very good.)

Hyper also place great importance to reflect upon each task/day and one finds oneself considering their actions/reactions at a far greater level than experienced before. Personally, as I am by nature quite reserved in new group situations – it has been of great insight how I can improve my interaction with the team to better serve the group and ultimately quicken my learning experience.  Yet, it is only Day 2 – and I am certain there are far more joys and frustrations for the year at hand.

Soft Introduction to (a projected) One Hell of a Year

Comments Off
Posted 06 Aug 2010 — by admin
Category Uncategorized

The last two days marked our induction program for Diploma students. The highlight of the induction was the Scavenger hunt – which transformed 7 individuals to a single entity – set on winning the task at hand.

The hunt took place in Gamla Stan, Stockholm and included fun activities, such as getting autographs from street musicians, counting the buttons on the National Guards uniform, Taking group photo’s in Stora Kyrkan – standing in mime for 1 minute at the Riksdag and creating a human pyramid at Järntorget. Most tasks weren’t for the faint-hearted, yet one didn’t have time to consider the boundaries of the comfort zone as there were 30 activities to be completed during 2.5hours. All in all, loads of fun and a great kick-start to bond with fellow classmates.

photo 2 Soft Introduction to (a projected) One Hell of a Year

Incentivized Collaborative Design For The Common Good

Comments Off
Posted 04 Aug 2010 — by admin
Category Uncategorized

I absolutely love the concept of openIDEO – a collaborative open online tool for creating design solutions for social good.

Each Challenge (Big Question) is broken up in a four step process. Insipration. Concepting. Evaluation. Winning idea. Whether it be business acumen, creative or code – each user can contribute at different steps of the process.

One of the most compelling aspects of this, is the introduction of DQ or Design Quotent. Each community member earns DQ for each contribution they make to a challenge, earning a hirer status within the community. Although this will not be the only driving force for participation, it certainly incentives great minds to share their ideas freely.

One current challenge “How can we raise kid’s awareness of fresh food so they make better choices” is sponsored by Jamie Oliver – last year’s TED Prize winner. The challenge is barely a week old and has already received over 170 Inspirational ideas.

To learn more about this challenge – watch the film below.

I look forward to following/contributing to this and future challenges closely to see what winning solutions are chosen, and how these are implemented to solve very real issues.

When The Digital Experience Far Surpasses The Reality

Comments Off
Posted 03 Aug 2010 — by admin
Category Uncategorized

The Story

I am a fool for a fun, sexy website and a good deal, as much as the next person. Usually I can remain satisfied, as long as the experience ends there. However, we decided to take an offer from the well publicized collective buying site groupon.com for a, well, ahem “All you can eat meat buffet” (okay, I know. Shoot me later) at Rodizio, Stockholm. Of course, the price was good (50% off – 245kr per person) and the imagery presented on the site was quite overwhelming:

Screen shot 2010 08 03 at 2.04.05 PM 300x229 When The Digital Experience Far Surpasses The Reality

Home page

Screen shot 2010 08 03 at 2.11.55 PM 300x258 When The Digital Experience Far Surpasses The Reality

food/atmosphere

So off we went, dragging a (non coupon carrying) friend along for the promising experience. The location was quite solid, although the interior suggested it had experienced  better days. The staff were nice, before we announced that we were (yet another) set of customers sent by Groupon – then the experience went downhill from there.

The “buffet” was infact non existent albeit leftover potatoes and soggy leaves, which could’ve been salad in a past life. Once we sat down, we were provided with a plate of mush (read tzatziki, bulgur, yesterday’s mushrooms). When we asked for a spoon – the reply ” No, use your fork”. Humph. Meat was… dry and of questionable origin (later I went downstairs to the bathroom, and saw piles of empty Lidl bags – so I guess that answered the question). We quickly ate the food, kind of pissed that we had spent 122kr on such a terrible experience, and feeling sorry for the friend who was going to have to fork out 245kr for his share.

Yet somehow, the begrudging staff and awful food all made sense, once we started to see other diners paying for their dinners with Groupon codes. Yes, you guessed it. I don’t think one of the guests, of this half full restaurant used real money to pay for the meal (besides our friend), and I can only imagine this was devastating for their obviously failing economy.

The Money

Let’s have a quick look at a few numbers:

  • 245kr (full price of “All you can eat)
  • 122kr (discounted “All you can eat” price offered by Rodizio, through Groupon)
  • 25% (supposed comission taken by Groupon for each sale).
  • 200 (Approximately the amount of Rodizio deals bought through Groupon).
  • 91.50kr (the amount earned by Rodizio from each sale from Groupon).

And now let’s put that into an equation:

91.50 (Rodizio earnings)  x 200 (amount of deals bought) = 18300 kronor (final winnings from Groupon customers -not including any charges for drinks with meals)

Considering the possible winnings from the same amount of non-Groupon customers for Rodizio would be 49 000kr. That is a gross loss of 30 700kr. I wonder if the 18300kr even covered the costs for food, staff and general restaurant costs for 200 customers?

The Sell

The next obvious question, is why would a business like Rodizio consider using collective buying sites like Groupon? A common pitch by Collective-buying companies, is that they provide exposure to their large customer base through discounted rates on client services. It is quite a popular sell to luxury based businesses (such as beauty therapists, adventure sports, restaurants) which would have felt the pinch during last year’s downturn.

In terms of Rodizio’s example, a possible conclusion is that it is a failing resturant, in dire need of new customers fast – so saw this as an easy PR stunt to gain exposure to the web-savvy crowd. Possible issues they did not expect?

1) There would such a huge interest in this deal, which they would need to cover costs for.

2) The profile of a Groupon customer is “deal hungry” and perhaps not their usual target clientele.

3)A further tarnished reputation, by providing poor service/ sloppy food. (As groupon deals are web based, a high percentage of their users are engaged in social networks/blogs and often share experiences on these platforms).

The Moral

Only engage your organization in group buying sites, if you are able/willing to provide whatever high quality service you would provide to normal customers. As this is primarily a brand buiding/PR  exercise, if you are unable to hold your service high you will not only lose short term profits, but also suffer negative brand engagement.


Inspiration from DM10

Posted 02 Aug 2010 — by admin
Category Uncategorized

Rather excited by this video by a group of Digital Media 2010 students from Hyper Island. Lots of insight as to thoughts/feedback from the time during their internship in NY.