What next for Alton Towers, Merlin and The Smiler?

What next for Alton Towers, Merlin and The Smiler
What next for Alton Towers, Merlin and The Smiler
What happened in the accident was nothing short of horrific and has wrecked young lives forever.  I can’t imagine how frightening that must have been and it must never happen again, anywhere in the world.

But for a moment, I would like to take a slightly dispassionate look at what I believe will happen to the brands of Alton Towers, Merlin and The Smiler.

Firstly I think the brand of Alton Towers will be fine, it will be damaged for a while, numbers will be down, but in reality, there is never a safer time to visit any attraction than just after an accident. Every early warning system will be on super high alert and the HSE will be crawling all over their every move. Alton Towers is a British superbrand and the way that Merlin CEO Nick Varney has handled himself in the press has been, in my opinion, nothing short of excellent, open and honest. He has allowed all of the bad news to come out, offered refunds to anyone who wants them and generally sounded very distressed by the incident. He has displayed good human values that people will relate to. He has four kids himself and I’m sure they use the park themselves, so of course he would want it to be world class safe – what parent wouldn’t?

Merlin are a world class brand. I saw a presentation from their Head of HR at Blooloop live a few weeks ago and they are delivering standards worldwide. I think this means you can rest assured that they will be running the most stringent safety checks on every one of their rides in every country they operate (which is a lot). Merlin will now get better because of this – everywhere.

But for Smiler, the future is less certain. There is an awful argument that this only adds a new element of danger to the ride for the real risk takers, but I hate this argument. For me, risk in an attraction MUST only ever be perceived. Real risk is just not appropriate in a fun environment.

So I think Smiler is on its way out. I would suggest that it will be removed as quietly as possible (press coverage allowing), maybe with the costs covered by the German manufacturers and it will turn up with totally new branding and maybe a new track layout in another market (The Far East or possibly Eastern Europe). The Smiler brand is busted and if I was in charge, I would bite the financial bullet and get rid of the bad name it could yet deliver.

In the meantime, I can only wish for a speedy recovery for those who have been injured both physically and mentally. And thanks to the London Evening Standard for their image. Here’s the link to their article.

The real health of the Tesco brand

Dave Lewis, Tesco chief executive

 

We saw recently that Tesco announced a quite staggering £6.4bn loss on trading. A huge headline figure, but in reality a total myth to allow the business the time and money to restructure.

The loss was caused by £7bn of one off write downs including a property write down of £4.7bn. Now, I’m no accountant, but if my maths are anywhere near right, this will meant they can reclaim at least £1.4bn in tax on their profits they paid last year and maybe claw some back from previous years too. So rather than lose £6.4bn, they have actually made £2bn in actual cash profit in the last 12 months. With me so far?

On the day that Tesco made the announcement, their share price fell by 5% to 223p. But in reality it had been at a low of only 150p during that same year and it is a huge growth in actual value over the same period. It’s at around 216p today. Hardly the sign of a business in crisis in the eyes of the market.

The disparity in their profit is far stranger when you consider how they got away with such a HUGE property write down when Helical Bar, the (mainly) London based Property Developer announced yesterday that their portfolio had increased in value by 27% in the previous 12 months?

Each of the other supermarkets seems to have followed suit with huge portfolio write downs, which only goes to confirm that it is another corrupt accounting practice each of them is employing to claw back tax.

Jack Welch, the former GE CEO said in a famous interview that with bad news, you have to get it all out fast, as it’s going to come out anyway. This feels to me what Tesco have done. They have painted a picture that is even worse than reality to shock the expectations lower.

This will give them the time, money and opportunity to take stock and rebuild the brand by putting in front line staff. They need to rebuild relationships with suppliers and build trust with customers. They need to listen, adapt and listen some more. And then they need to action their ideas fast, before the market moves again.

The Tesco brand is not dead, it’s just sleeping. It’ll be back and hopefully with a little more grace and a desire to please customers rather than only focus on the profit.

Real engagement for brands is more than just online engagement

I saw this video today by Gary Turk and shared it on Facebook on my personal account. Without any form of promotion, today it has been shared 40 times which is exceptional. If you watch the video it talks about real engagement.

Brand engagement is about more than just likes and shares on facebook Johnny Lyle
Brand engagement is about more than just likes and shares on Facebook

As a brand and social media specialist who shows real brands how to treat their customers and behave online, it is a very, very timely reminder that real engagement is about far more than likes, shares and a few extra follows. You have to be brilliant offline to allow people to get you online.

Real engagement is about getting inside people’s heads. It’s about becoming part of their lives, so they can’t live without you. It’s about building proper relationships where you give things as well as just take them.

Real engagement is real life and that’s what Gary’s film shows us.

The problem with Google Certified Shops Programme

google certified shop badge

When Google started in 1998, they had the aim of ‘organising the world’s information and make it universally accessible and useful’. This was backed up by the mantra or brand value ‘Don’t be Evil’. Over recent years however they seem to have concentrated more on the former and slightly less on the latter.

Their new ‘Certified Shops Programme‘, whilst not evil in concept, does seem to wrestle even more power under their control. So what is it?

On the surface it looks simple. It’s a programme that puts some standards into the sellers so that the buyer can buy with confidence from any online retailer that displays their symbol. It’s free to the seller and free to the buyer. They even offer you £1,000 of buyer protection, in case things go wrong. That’s brilliant. It’s a total win, win right?

Wrong.

Here’s my thinking – which is only conjecture and my opinion.

For the retailer

  • Signing up will become a necessity if you want to sell via the Google platform and with over 90% of the search market in the UK, you will not be able to trade without it.
  • Mediation of any issues is handled by Google, they decide what is right and wrong in the transaction and act as judge and jury.
  • You cannot deal with the irate or happy customer at all. You are allowing Google to negotiate any issues on your behalf.
  • If you disagree, you lose seller status and in the worst cases, they could put a manual penalty on your search position. This could kill your business overnight.
  • You have to hand over all of the transaction details of your customer to Google. As the customer has to sign in on a Google account to participate in the buyer protection, they are handing over ALL of their previous search behaviour too.
  • Google then have the right to speak to your buyer directly and ask them about their experiences with you and with others online, it’s in their terms and conditions.
  • Google can then build a perfect behavioural picture of ALL of your customers and who else they have shopped with, or ever considered shopping with.
  • With this profile of buyer behaviour they can feed this into their AdWords and PLA advertising algorithms, so all of your precious keywords and hard earned click/conversion behaviour are essentially made available to everyone else in the market if they are prepared to bid more for it than you are.
  • Google focus the seller power into fewer and fewer sellers as not all will have the sales figures to qualify for the Certified Shops Programme, and they control those sellers’ access to market. Maybe not evil, but certainly wielding an enormous amount of power over the market, maybe even monopolistic power.
  • You no longer own any element of your customer relationship, Google do. You signed it over without noticing. They can just cut you out of the deal next time and sell any access to your customers to the highest bidder.

But that’s okay as the buyer is protected right?

  • The £1,000 buyer protection is a lifetime figure. if you make a claim up to this limit, you lose out going forward, you can never be protected again.
  • You have 60 days to claim and they make it very clear that this is no form of warranty.
  • Buying on a credit card offers far greater protection, without any of the data sharing. The retailer pays the transaction fee.
  • By sharing all of the buyer and search behaviour you have ever done over to Google, you are allowing them to read every one of your emails and feed you tailored advertising and promotions.
  • Google now have the power to limit the searches you see. because they know you through studying all of your behaviour online, they can choose what they allow you to see. Maybe this is taking it too far, but they could genuinely only allow you to see sellers THEY approve rather than the ones who may be more up your own ethical or behavioural street.

So in summary, as yet it’s too early to say, where Google may take this, but it’s certainly a huge programme and one that could wreak total havoc on the seller environment and begin to affect all of our buyer behaviour online.

PS, if you ever want to trick the system try the difference between a logged in search in Google Chrome and then one that you do in private browsing mode in Safari or Firefox. You’ll find quite a difference in the results you see in search.

Virgin are still living their brand

Virgin Trains Vs East Midlands Trains

I was in London for a very early meeting last week and chose to travel out of Grantham on the East Coast mainline that is now operated by Virgin trains. It was always a quick route, normally cheaper than East Midlands Trains and in my experience anyway, dead reliable.

I have always have had high expectations of Virgin and their brand. They promise a lot with their values, so they have a lot to live up to.

And they didn’t just live up to them, they completely exceeded them. Perfect service, genuinely chatty, friendly staff and a great choice of breakfast options delivered to your table at no extra cost. (my bacon sarnie was lovely thanks) and free wifi that was fast enough to be usable for work.

On the way home later, they added a choice of hot meals or a selection of (very tasty) sandwiches and wine or beer and teas and coffees, again all included in the price. It just feels like they are being generous in every respect, even though the actual cost must be tiny, the perceived value and the warmth this drives towards the brand is massive.

Today i’m back on the slightly more expensive and slower East Midlands Train to Nottingham. Full priced menu, wifi that doesn’t work properly (It’s so slow that I can’t even load Speedtest.net to test how bad it is). The staff are still very friendly and I did get a glass of wine on the way home, so overall, i’m not particularly inspired to travel on this route again. It’s Grantham and Virgin for me.

So this proves that you can drive your brand values right through to your service standards and you can keep delivering them over and over again and find new ways to win over and delight your customers.

Thanks Sir Richard.

Why I won’t be buying an Apple Watch

This is why you don't need an Apple Watch - The DeTomaso Matera Automatic watch

I am a big fan of Apple. I have been forever and at 49 years old, one of my claims to fame is that I have never owned a PC of any description. I had a few Nokia phones in the early days but that’s about it. I have been Apple through and through since around 1989.

But I won’t be joining the masses in buying the rather overpriced Apple Watch. I simply can’t see the point. It alerts you to what your phone is doing in your pocket and you’ll look like a dick if you talk to it (who really uses Siri other than to make it tell you jokes?). You’ll very quickly give up checking all of the notifications as they are so frequent anyway with five email and even more social media accounts on my phone. What’s compounds the misery is that being on Bluetooth all day will only make the battery life even more useless again. It’s bad enough having to charge my iPhone twice a day, but my watch too?

No, sorry Apple. This is a step too far for me. It’s not making my life easier. I’ll stick with my simple mechanical watch that tells the time. It doesn’t try and multi-task or be my personal assistant and it manages to wind itself just by being on my wrist. No batteries, reliable as you like and it glows in the dark so I can read it at night.

Thanks Apple, but no thanks.

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