Social Networking Grows as a Product Development Tool

Social media has become a bigger issue for a growing number of companies for several reasons. It represents a shift of where audiences are, so outbound messaging has to move that way as well. 

But that's the lesser factor. Social media means consumers are able to easily voice their thoughts about products and services. And most observers would agree that angry and unhappy consumers are more likely to complain than happy users are to praise. 

 

As much as retailers hate "bad press," they now also must contend with "negative buzz" from unhappy customers and users. All of that implies brands have to become more "proactive" about their reputations online. 

Still, even that is superficial in some sense. One thing product development teams have learned over the years is that bulletin boards, online comments and now blog posts and tweets can be sources of information useful for product design, upgrades and repairs. 

At a fundamental level, companies can launch products that have some element of unresolved "beta" elements and then modify products as feedback appears. 

“Naturally occurring conversations will be utilized in product innovation and design, and companies will create incentives for people's attention and engagement while repurposing and analyzing content and engagement in new ways that will deliver valuable input," says Ravit Lichtenberg, founder and chief strategist, Ustrategy.com. 

“The voice of the consumer is only going to get louder and stronger,” said Ms. Williamson. “It will shape what social media is and what it will become. Not too long ago, a company might have made major changes to its products or services based on a few focus groups, some financial planning and a degree of gut instinct," says Debra Williamson, eMarketer senior analyst. "Social media has already changed all that." 

No Way To Tell, Yet, Whether "Buzz" Has Any

Given that Google's "Buzz" application, which, depending on who one talks to is either a "Twitter killer" or a "Facebook killer," has only been live for several days, we probably should give our chattering a rest. Nobody can say whether connecting Buzz to Gmail will result in a viable and large social networking community being created, much less how it might affect Twitter, Facebook or other communities.

There's no question social networking has gone mainstream, and equally no question that "Google" is not one of the names that comes to mind when "social networking" is talked about. I don't know whether Buzz can change that.

In business, incumbency is a powerful thing. There's a reason iTunes owns the music space. You can point to ease of use, elegance or any number of other attributes that have lead to iPod dominance in the music player business, creation of a better way to buy and use music.

One can point to similar advantages for Google in search, Amazon in e-commerce or eBay in auctions. Once such leadership has been established, it is tough to dislodge.

So far, Buzz appears only to be "follower" on the technology front. It has some features of Twitter and some of Facebook, with the potential upside of being able to attract the Gmail audience. I don't know whether it is reasonable to expect people to abandon Facebook or Twitter for Buzz.

Facebook has surpassed 400 million active members. I'd say that is far past the point where switching behavior is "costless." As we like to say, Facebook has something of a moat around it. The ability to easily add third party apps or play games are examples.

Twitter arguably could be a different matter, as that app has gained less mindshare, or users, overall. Perhaps a "fast follower" approach could work there. Still, Buzz likely has most chance of succeeding if its users can uncover some new class of value that neither Facebook nor Twitter yet has done.

Right now, that might be hard to discern. But it's only been several days. We might be looking at years before any pattern emerges. Right now, Buzz does not have the feel of an innovation that creates an entirely-new category of experience. That could change. How it might change is the bigger question.

I'm using the app, but only casually. For me, that's not unusual, though. I use all my social networks quite casually.

iPhones Drive Sausage Sales

Sales of snack sausages are up 40 percent in South Korea thanks to the iPhone, says Silicon Alley Insider.  In the cold of winter, South Koreans are using the sausages as styluses instead of taking off their gloves.

That's one issue lots of iPhone users likely have encountered this winter. Kind of reminds you of the old Palm devices, doesn't it?

App Stores are "iTunes on Steroids"

New data from Flurry suggests that most iPhone and Android applications are disposable or perishable. Most people stop using them within a month and attrition continues to the point that withint two months, less than 15 percent of users still are using the downloaded apps.

That suggests a bias towards perishable content and entertainment or games. Few people watch "news" programming or read news articles more than once, for example.

Flurry tracks over 20,000 live applications and over two billion user sessions each month, and so far show either that "content is king" or that applications are becoming the dominant delivery mechanism for content, entertainment and tools on smartphones.

The most frequently-used downloaded apps are games, entertainment, social networking, news and other "lifestyle" apps.

Retention curves (the percentage of people using an app at varying times after download) for iPhone and Android applications were nearly identical. After just a month, 60 percent of people have stopped using the typical downloaded app.

That suggests a high degree of sampling. Users seem to be downloading and using many apps, but generally are not finding them sticky enough to continue using after two to three months.

That usage profile has not proven to be the case for some other foundational apps such as text messaging, social networking or email.

In some ways, app stores are becoming publishers of content in the same way newspapers, cable TV or the Web have been; "iTunes on steroids." That doesn't mean there is no room for other apps that prove more foundational. It just means we haven't created them, yet.

Social Networking is King on Android and iPhone

A new analysis by Flurry of smartphone application use confirms what earlier data had been suggesting: social networking is the smartphone "killer app."

The February 2010 data shows social networking sessions on either the Apple iPhone or Android devices approach or hit 20 sessions a month.

That compares with seven to 10 news app sessions, about five gaming sessions and three to seven entertainment sessions.

The other notable trend here is that Android users appear to use smartphone applications at a higher rate than iPhone users do. One might have thought that most of the early adopters already had opted for iPhone, and one clear characteristic of iPhone users is that they make use of the mobile Web and Internet at much-higher rates than other smartphone users.

Until the Android, that is. Android users appear to behave as iPhone users do, only more so. One might have hypothesized that Android users might be more mainstream, and tend to use entertainment apps more than iPhone users. The Flurry data does not necessarily confirm that thesis.

Aside from the fact of being heavier users, Android and iPhone usage patterns, across applications, appear to be identical. To the extent that Android devices, perhaps especially the Verizon Droid, have been seen as competing directly with the iPhone, the data suggests that early adoption fits the appellation.

Native Twitter App for BlackBerry Coming

Historically, the ability to make and receive telephone calls from a device in your pocket or purse, anytime, has been the killer application for mobile phones. Recently, other killer apps have emerged. For many smartphone users, the killer app was email in the pocket or purse.

Recently, access to the mobile Web, or perhaps the App Store could be seen as the key driver of iPhone adoption, while now social networking has emerged as the first consumer killer app for smartphones.

You could get a debate about whether users prefer to have a discrete application to get to their social networking sites, or are just as happy using their mobile browsers. But lots of people, and lots of suppliers, might vote for the application approach.

Now BlackBerry seems to be close to getting its own RIM-supplied Twitter app. There are other Twitter apps available for Blackberries. UberTwitter and TwitterBerry, SocialScope and Tweetcaster, are examples.

But the BlackBerry blog "CrackBerry" says an official RIM Twitter app is under development as well.

Apparently the RIM versiion will be integrated with other core BlackBerry applications and be tied in to the address book, browser and device setup wizard.

If one wanted to know why an official RIM version might get traction, as opposed to any other app, it likely is the degree of integration with other BlackBerry apps. We'll know soon enough.

Twitter Usage Exploding

By available measures, Twitter growth has flattened, although some say the data does not include all Twitter usage from third party sites.

Usage, though, is another matter. It keeps growing, suggesting that Twitter has an established base of users that find it useful. In December 2009 Twitter processed more than one billion tweets per month, according to Pingdom.

January passed 1.2 billion, averaging almost 40 million tweets per day. This is significantly more than Twitter was processing just a few months ago.

Pingdom's data does include all tweets made using Twitter's own sites and third-party sites and applications as well.

December 2009 was the first month Twitter processed more than one billion tweets (with 1.036 billion tweets). But January 2010 had 16 times as many tweets as January 2009.

Activity on Twitter has doubled since August 2009.

Pingdom has no data on the total number of active users.

http://royal.pingdom.com/2010/02/10/twitter-now-more-than-1-billion-tweets-per-month/