The Bankwatch

Tracking the consumer evolution of financial services

Posts Tagged ‘RWW

On VRM, Facebook, and being misunderstood for long periods of time

I simply love this post at RWW.  The post is about how FaceBook could turn on the power of their userbase to the benefit of consumer power.  I have long been a fan of VRM and at the same time at something of a loss to see how it could be initiated.  Then I read this post, and new lights went on.

The post is about FaceBook, but it is less about them, than it is about business models for companies with large userbases who insist on following tradigital advertising models. The whole ‘We have lots of eyeballs so lets monetise’ thing.

[disclaimer]  I have long believed that adwords, adsense, and any such interruptive advertising model has only a limited online lifespan, and represent a termproary interlude that keeps SEO types busy in these formative internet times, until we get to the next level whereby the consumer is truly in charge.  Only then will I accept a Web X.0 increment.

I look at myself and my online behaviours, and maybe I am in the minority, but maybe thats because the tools I use are not well understood.  My online experience sees almost no ads except when I choose to do so, and I do so choose.  I see them in emails I deliberately subscribe to, I see them when I seek them out, but my standard web experience is protected by pop up blockers and AdBlock Plus.  If in doubt how many have PVR’s at home, and skip tv ads?

Its not that I don’t want to lknow about products and services.  I just don’t want to know when I am reading, listening and watching things on the web.  This is the power and the promise of the internet medium;  it has the power to be better.  I listen to Sirius Radio for similar reasons; I want to hear music not ads.

Enter Vendor Relationship Marketing (VRM).  Terrible title, but in essence VRM says you will decide when a merchant (vendor) may contact you, ie advertise to you.  Until then stay away. Here is one of the more provocative catchphrases from “The ClueTrain Manifesto” which forsaw this problem and solution 10 years ago.


The challenge is how to move from an interruptive model in radio, television, phone, mail, and now internet to VRM which would require a seismic and complete shift.

“be prepared to be misunderstood for long periods of time.” – Jeff Besos

Back to the RWW post.  Bernard does a nice job of pointing out that FaceBook is taking too long to develop a business model, and is taking longer than Google did.  He notes that it will take a radical shift in order to do that, and that shift will be misunderstood, but give it time.

I agree with Bernard.  The reason FaceBook and traditional advertising doesn’t work is because no-one wants to hear an ad in the middle of a conversation.  However FaceBook has the other benefit (some say weakness) of being a walled garden and Google cannot see inside.  He notes this is the perfect oportunity to turn that walled garden into a powerful tool on behalf of the consumer.  When they feel the need for a product, service or information on them, FB users could, through an RFP (Request for Purchase) process make it known to vendors, even to the point of naming their price or price range.  Vendors could respond.

This turns the ad model on its head.  The playing field is levelled between the merchant and the consumer.  If the merchant comes on stronger than the consumer wishes, or tries to return to old ways, the consumer can ignore them.

Relevance to Bankwatch:

Consider banking – every day thousands of RFI’s emanating from VRM services, and the banks can compete on them, all electronically.  Clearly this requires formats, standards, and defined processes but it makes an interesting future world view, and one that FaceBook could kick off.

Written by Colin Henderson

June 26, 2009 at 12:47

Real-time search – fact and fiction, and why?

One of the latest trends in ‘the valley’ is the notion of real time search.  This has been brought to highlight by twitter search.  While I understand the idea of real-time, the idea of applying the concept to the entire internet seems like a big job, and so it is with some scepticism that I hear people believe Twitter have solved that riddle.

An example elsewhere in the text was of banks – their information is not real time.  Consider ATM deposits that appear on the next days date, or payroll electronic funds transfer which are deposited in batch mode overnight.  Batch mode is the opposite of real-time.  Like everything, there is a reason, and while its not optimal, real-time is a long way off in many respects.  It will be dependent on computing power, data storage, disk access speeds, bandwidth, standardisation of data standards and messaging standards, amongst other things I am sure to have missed.

I came across this in the comments on RWW.  They are doing a series of posts on new ‘net trends, and did a piece on real-time, which produced this comment from Falafulu Fisi, who I am sure if he does not work for Google yet, he might soon.

Anyhow the distinction he draws is this;  you can have real time search of raw data, or real time search of cleansed data.  [warning – lots of mathematics here]

Here is an attempted summary that does no justice of the Fisi comment on real-time search.

Raw data search: clumsy, inefficient, duplicative, and requires the user to sift through enormous amounts of results to locate what he needs.

Cleansed data search: using techniques such as feature computation or feature decomposition results can be indexed and computations performed on the data that allow qualified and targeted results.

He notes that twitter use raw data search, and the results while seconds old, are what you might expect – very much a kitchen sink approach, and not elegant.

In summary my conclusion on this is that real time search is a much different animal than twitter search.  Twitter search is just that … a keyword search of twitter.  There is nothing for nothing even in computational matters, although the promise of real-time remains interesting I am not sure it is the appropriate target.

Relevance to Bankwatch:

As a side note, I was involved in one situation at a Bank whereby we wanted to purchase a search tool for our web site.  The general consensus of many is that search is a commodity, and therefore the cheapest ought to be enough.  That cannot be further from the truth.  The algorithms and calculations involved in search are what make it useful, and there is much disparity between the tools.

In fact I would be ok with 24 hour old search, if it meant the quality and targetting of the results were better.  Once we have solved the targetting and accuracy of results, which mean the results that I expect, or that you expect, which are not the same; once we have solved that, then real-time could be the next target but not before.  Unfortunately by the time the ‘real-timers’ will get what are asking for, they might realise that is not what they wanted.

Written by Colin Henderson

May 25, 2009 at 12:25

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