Apple is famously and profitably successful because of their attention to design detail and simplicity and consistency of their user interface. And while they’ve made more than a few mistakes along the way, the replacement of the Google maps application which has been a part of the iOS operating system from day 1, may become a classic business case study in what not to do.
Taking away benefits/functionality from your customers without their consent is a very dangerous move.
To summarize what happened- Apple and Google are no longer friends because the open source Android mobile operating system has gone head-to-head with the proprietary and highly regulated Apple iOS. Apple deleted the Google Maps application in favor of their own mapping software with iOS6- despite it not being either an improvement or even a good replacement for the original software. When you start making the New York Times about your product changes, it should be a bit of a worry.
Missing are the highly useful public transit details- a system that is invaluable in NYC, and much of the data that has been tweaked and refined over the years by millions of users. Frankly, Apples map program is being forced on users as an “upgrade” when it isn’t. This isn’t what the customer bought when they bought their iOS devices.
The right to take away a purchase after it’s been bought is a slippery slope, that smacks of “Big Brother” – the very same one that Apple so famously rallied against in their classic Superbowl ad 1984 that launched the Macintosh. What’s next- publishers having the right to come to your home and take back books that you bought because they were too useful? (Textbook manufacturers are becoming guilty of this- but that’s another matter).
Rumors abound that Google is going to release a version of Maps via the Apple store- however, that would and could possibly sink the chances of the Apple maps app from ever reaching parity. Digital maps data is improved by the size of the user base, a primary reason Google was probably willing to allow Apple to use their data when the iPhone launched before they had an Android OS.
Google could probably rake in millions by selling their app on the iTunes store now, but the shopkeeper, Apple, despite a chance to gain 30% of sales may still block it from happening (debate is raging on this subject).
But this is a lesson for all marketers. The restaurant that used to offer free bread that now charges, the gas station that stops offering free air both risk alienating customers by taking away something that was previously accepted. Once one fast food chain began offering free refills on soda for dine in, going back is nearly impossible as is not offering the same option.
Apple may be getting cocky at the wrong time and place as the newest king of corporate monopoly, but we’ve seen companies make potentially fatal flaws before: thinking they know what’s best for their customers and trying to force a reset. Quikster anyone?
Facebook stock is being hammered. Wall Street and even Facebook itself, doesn’t understand the value of the business. It’s not an ad platform- it’s a social site, a private party. When advertisers stop thinking they have the right to interject themselves in everything, they may start having some real success. The key for businesses on Facebook is to be invited to the party. The secret to that is better market research- and that’s where Facebook is the holy grail of consumer data. We know who your friends are, where they are, what they are doing- all from the aimless chatter.
Facebook needs to monetize data, not users.
Reading in the New York Times:
For its stock price to go up, Facebook has to convince Wall Street analysts and investors that the personal data its 955 million users share about themselves can be better used to make money. Despite the fact that Facebook has information about a user’s friends, habits and photos, advertisers are not convinced that Facebook ads are more effective than online ads appearing elsewhere.
So far, its revenue comes largely from advertising and from proceeds of virtual games that people pay to play on the Facebook platform. On both counts, Facebook has struggled, as the company reported slower sales in its earnings report in late July. Its users are increasingly logging in to their accounts on mobile devices, where Facebook has only recently — and cautiously — started selling advertisements.
Facebook has to be careful about intruding with ads in the limited screen environment. With customers facing data caps on mobile devices, the only way advertising will be welcome is if those advertisers subsidize their data plans, or offer real services or additional value in return for their interruption. If you need a case study of an internet behemoth failing because they refused to respect their users and community, just study the fall of AOL.
While advertisers still believe they should have the right to engage for supporting “free content” they have to realize that now, more than ever, you can only earn that right by offering a premium service in return. Look what the iPod did to CD sales, or what online music services have now done to the iTunes store. Is it becoming clear?
Facebook is social media- stop trying to turn it into commercial media.
Bio Foundation was a fun energy drink brand that we were involved with all the way from the naming stage. We designed several packaging ideas for what would have been the company’s first product, the Melon Mash flavor of Bio Elixir. The packaging was unique and eye-catching, and the labels we designed looked great on the foil cartons. The packaging captured the brand perfectly.