Yet another challenge for publishers: Subscription fatigue.

As if it isn’t enough that newspaper and magazine publishers have to compete with an ever-widening array of information providers, in the effort to migrate subscription revenues from print to digital these publishers are squaring off against an additional challenge: subscription fatigue.

Not every consumer is opposed to paying for media, but with so many fee-based streaming services now being offered — including the ones by powerhouses like Netflix and Spotify — trying to get people to focus on “yet another” resource is proving difficult.

Moreover, when it comes to news information sources it’s even more challenging. According to a recent Digital News Report prepared by Reuters Institute, when given a choice between paying for news or paying for a video streaming service, only ~12% of respondents in the Reuters survey stated that they would pick the news resource.

It seems that with so many time demands on people’s online activities, fewer are willing to pay for access to information that they don’t wish to commit to consuming on a regular basis. Unlike most of the entertainment streaming services, news stories are often available from free sources whenever a consumer might choose to access such news stories. Those alternative news sources may not be as comprehensive, but i’s a tradeoff many consumers appear willing to make.

This is hurting everyone in the news segment, including local newspapers in smaller markets which have faced a major falloff in print advertising revenues.

Underscoring this dynamic, more than 1,800 newspapers in the United States have closed their doors in the past 15 years. Today, fewer than half of the country’s counties have even one newspaper within their borders. This fallout is affecting the availability of some news information, as local media have a history of covering stories that aren’t covered elsewhere.

But it’s yet more collateral damage in the sea change that’s upended the world of newspapers and periodicals in recent years.

More findings from the Reuters Institute report can be accessed here.

The “bystander effect” and how it affects our workplaces.

Here’s an interesting view into human nature: Experience tells us that far more people will pass a disabled motorist on a busy highway without bothering to stop, compared to stopping for a person stranded on a lonely country road.

This phenomenon creeps into the business world, too — and particularly in a situation which some of us have probably experienced at least a few times during our careers: There’s someone at work who is clearly deficient in their job. Worse yet, the deficiencies aren’t due to incompetence, but to undesirable character traits like sloth, a sour attitude, deficient interpersonal skills — or even questionable ethics.

Moreover, the behavior of the individual falls in the “everyone knows” category.

The question is, what happens about it? Too often, the answer is “nothing.”

Social scientists have a name for this: the “bystander effect.”   It means that “what’s everybody’s business is nobody’s business.”

In mid-2019, several researchers at the University of Maryland studied the topic by fielding several pieces of research. In a first one, nearly 140 employees and their managers working at a Fortune 500 electronics company were surveyed.  That survey found that employees were less apt to speak up about problems they perceived to be “open secrets.”

Two other components of the field research – one a survey of 160+ undergraduate students and the other a study involving behavioral experimentation with nearly 450 working adults – found essentially the same dynamics at work.

According to the University of Maryland research study leaders, Subra Tangirala and Insiya Hussain:

“In all three studies our results held even when we statistically controlled for several other factors, such as whether participants felt it was safe to speak, and whether they thought speaking up would make a difference.”

The inevitable conclusion? Tangirala and Hussain reported:

“Our research shows that when multiple individuals know about an issue, each of them experiences a diffusion of responsibility — or the sense that they need not personally take on any costs or burden associated with speaking up.

They feel that others are equally knowledgeable and, hence, capable of raising the issue with top management. As issues become more common knowledge among frontline employees, the willingness of any individual employee to bring those issues to the attention of top management decreases.”

Sadly, the University of Maryland research shows that the “bystander effect” is the perfect recipe for companies to keep loping along without making HR changes — and not realizing their full potential as a result.

There’s another downside as well:  If left unaddressed, festering issues involving “problem” employees can engender feelings of frustration on the part of the other employees — along with the sense that an underlying degree of fairness has been violated because of the efforts the other workers are making to be productive employees. Unfortunately even then, no one wants to be the person to blow the whistle.

More detailed findings from the University of Maryland research can be accessed here.

What about your experiences? Have you ever encountered a similar dynamic in your place of work? Please share your insights with other readers.

A Marketer’s Resolution for the New Year

Note: Those of you who are regular readers of my marketing and culture blog have noticed that it “went dark” for a period of time over the past month or so.  The twin developments of health issues plus a death in the family (my mother, at the age of 96-and-a-half years), meant that I needed to be focused on recuperation and also estate matters.  But I’m back … and hopefully back to my regular schedule of posting.

For my final blog post of 2019, it comes in the form of a resolution for us marketers. It’s to finally acknowledge how little “upside potential” there actually is for social media to build or maintain a brand presence … and instead to place renewed focus on tactics that’ll actually deliver a more measurable ROI.

Most of my business clients have put a degree of effort into social media over the years – some with more focus and fortitude than others. But whether the campaigns have been “full speed ahead” or only half-hearted, invariably the end-result seems to be the same:  a sales needle that hardly moves, if at all.

Moreover, social media takes a deceptively significant amount of effort for that little bit of payoff. Companies that put in the effort devote human capital and in some cases substantive dollar resources to tap outside support, but frequently the results aren’t any more impactful than for our clients who merrily go on ignoring social medial platforms, year after year.  At least when looking at bottom-line sales.

Plus, in our highly sensitized world, these days it seems that when social media actually has an impact, more often than not it’s a negative one.  Too often it’s the sorry end-result of some sort of faux pas where even the best-laid plans for departmental or legal review aren’t carried out fully and the brand gets into trouble. (Sometimes that happens even with all of the checks and balances in place and being carried out religiously.)

So for 2020, we marketers could well be better off acknowledging how thin the promise of social media actually is.  We should ignore the siren calls of “likes” and “engagement” and stop chasing the phantom pot of gold at the end of the phantom rainbow. Chances are, your company’s bottom line will look just as strong, even as you focus more of your time and budget on marketing activities that’ll actually make a positive difference.

What are your thoughts on social media for brands? Please share them with other readers here.

When it comes to smartphone capabilities … buyers want the basics.

With the plethora of smartphone models that seem to be released with ever-increasing frequently these days, one might think that the innovative features being added to the new smartphone models would be in high demand.

After all, the demand for smartphones looks as though it’s unquenchable; quarterly shipments of smartphones numbered some 366 million devices during the 3rd quarter of 2019 alone, according to data compiled by business consulting firm Strategy Analytics.

But the reality appears to be quite different. Recently, technology market research firm Global Web Index studied the popularity of various smartphone features, looking at a large sample of more than 550,000 consumers in the USA and UK.

As it turns out, the most desired smartphone feature is long battery life. And in fact, the top four smartphone features in terms of consumer importance don’t look like anything particularly jazzy:

  • Battery life: ~77% consider it the most desired smartphone feature
  • Storage capability: ~65%
  • Camera picture quality: ~62%
  • Screen resolution: ~48%

At the other end of the scale are four features which aren’t animating the market in any great way:

  • 5G compatibility: ~27%
  • Biometric security features: ~27%
  • Digital wellness features: ~16%
  • Virtual reality capabilities: ~10%

There’s no question that the newest smartphone models can do a lot more than their earlier iterations. But users want them to do the basics — and to do them well. Other capabilities are simply ornaments on the tree.

For more findings from the Global Web Index study, click here.

Amazon is poised to become America’s single biggest retailer, outpacing Walmart.

It’s a measure of how much the American retail landscape has changed in the past decade that Amazon is poised to overtake Walmart as the largest U.S. retailed by 2022.

That prediction comes from a recently published report from market research firm Packaged Facts.

As of today, Packaged Facts estimates that Amazon makes up ~43% of all U.S. e-commerce sales, which is dramatically higher than its ~28% share just four years ago. Continuing its growth trajectory, by 2022 Amazon is expected to make up nearly half of all U.S. e-commerce sales.

That degree of concentration will make it bigger than Walmart — even considering the latter’s huge brick-and-mortar presence which Amazon lacks.

Of course, Walmart continues to possess additional advantages that Amazon cannot match, despite the latter’s acquisition of supermarket chain Whole Foods in 2017. Not only does Walmart have a huge physical footprint in retail, it also offers a wide range of in-store services which entice foot traffic — things like an onsite pharmacy, financial services, and photo processing.

Also working in Walmart’s favor is its dominance in so-called “click-and-collect” shopping orders. According to recent surveys, ~43% of respondents identified Walmart as the pickup location for their last click-and-collect order — three times the share percentage of runner-up Target.

Still, the emergence of Amazon atop the retail industry heap says volumes about the seismic shifts brought about by online retail. The channel hasn’t been around all that long in the grand scheme of things, but its impact has been nothing short of seismic.

How have your shopping habits changed during this time? Do they reflect what has happened in the larger market? Please share your thoughts with other readers here.

A Strong Job Market and the “Gig” Economy

The two don’t go together very well.

It wasn’t so long ago that the so-called “gig” economy was all the rage. In the early 2010s, with a sizable portion of companies being skittish to commit to hiring full-time workers due to fresh memories of the economic downturn, many workers found opportunities to make money through various different gig economy service firms — companies like Uber, Lift, Postmates and others.

What those jobs offered workers were flexible schedules, reasonably decent pay, and the ability to cobble together a livelihood based on holding several such positions (while still being able to hunt around for full-time employment).

For employers, it was the ability to build a workforce for which they didn’t have to cover things like office expenses and various employee benefits — not to mentioning paying for payroll taxes like the employer social security contribution.

In the past few years, the environment has changed dramatically. With national unemployment hovering around 3.5% — and lower still in many larger urban areas — “gig” companies have found it more difficult to find workers.

What’s more, those workers who are hired are churning through the companies more even more quickly than before — many staying with these jobs for just a few months.

Tis is driving up worker recruitment costs to their highest levels ever.

In a May 2019 interview with The Wall Street Journal, Micah Rowland, COO of Fountain, a company that helps gig companies acquire new workers by streamlining the hiring process, puts it this way:

“It [strikes] me that in some of these markets, they’re processing thousands of job applicants every month — and these are not large cities.”

In Rowland’s view, gig companies in some markets may be burning through the entire available labor market of people willing to work in roles of this kind.

It isn’t as though turnover rates aren’t high in other service sectors in the more “traditional” economy. In the fast-food industry, for example, turnover is running as much as 150% annually these days. But in the case of gig employment markets, it’s even higher — sometimes dramatically so.

With the tight labor market showing little sign of loosening anytime soon, it may be that we see some firms looking at “regularizing” employment for at least some of their workers. If it makes economic sense to hire some actual employees in order to curb recruitment costs, some will likely go that route .

There’s another factor at work as well. More of these gig economy workers are becoming more vocal about pushing back on pay and working conditions. Noteworthy examples have been recent protests by rideshare company workers in cities like Los Angeles and San Francisco.  Others have done the envelope math and have determined that once driver-owned vehicle costs of gasoline and depreciation are calculated against declining fares that have dropped below $1 per mile in some markets like Los Angeles and Minneapolis-St. Paul, workers’ effective wages are significantly less than even $10 per hour.

Picking up on these worker concerns, a number of activist groups are making gig economy companies like Lyft and Uber into a “cause célèbre” (not in a good way), but loud, polarizing detractors such as these tend to muddy the water rather than bring fresh new insights to the debate.

As well, one wonders if the activism is even needed; I suspect what we’re seeing now is a pendulum swing which happens so often in economics — where an equilibrium is re-established as things come back into balance after going a bit too far in one direction. In the case of the gig economy, the low unemployment rate in many regions of the country appears to be helping that along.

Alternative communications tools abound, but email’s popularity remains undimmed.

Email has been with us for decades now — for such a long time that email could be considered as “mature” a communications tool as the conventional telephone.

And yet, even as some older tools decline in use as new communications techniques emerge, email continues to be as popular as ever.

The latest confirmation of this comes from a study of ~1,000 U.S. workers conducted in September 2019 by survey research firm Propeller Insights for app developer Spike. The topline result: of the respondents who use both email and messaging apps, nearly 80% prefer email, as compared to only around 20% who prefer the messaging apps.

Not surprisingly, older workers embrace e-mail more than younger ones do — both in terms of preference and usage. Even so, e-mail reigns supreme in terms of usage across all age groups, with messaging apps, the telephone, in-person conversations and video conferencing (in that order) lagging behind.

As for male versus female respondents; their usage and preferences are roughly similar, with perhaps a feather on the scale for males in favor of email communications.

Furthermore, what comes through loud and clear from the study is that people are tired of juggling multiple channels of communication, with nearly nine in ten respondents stating that switching between apps affects their productivity adversely in one or more ways.

The following reasons were cited as contributing to their reluctance to switch between various communication and collaboration tools:

  • Makes it harder to find information: ~21%
  • Creates too many mixed communications: ~21%
  • Slows down productivity: ~18%
  • Wastes time: ~17%
  • Is a major distraction: ~13%

Related to these downsides, more than two-thirds reported that they would welcome having an app that combines all emails and messaging.

Whether or not a combo app is something that becomes available, anyone expecting email to decline precipitously as a preferred method of communications in the coming years is likely to be disappointed.

What are your practices regarding email, messaging apps and other communications methods? Are they substantially different from the Propeller survey results? Please share your thoughts with other readers.