The Apple iOS debacle and PR consequences

iOS 8.0.1 downloading

Whether you’re an iPhone user or not, you can’t have missed the headlines in recent days reporting on the fiasco resulting from Apple’s botched operating system update 8.0.1 for iPhones and iPads, released on September 24.

For the first time in some years, I have an iPhone courtesy of Arena Media, mobile operator Three UK‘s media agency, who sent me an iPhone 6 for review (that review is coming soon) which arrived on the 24th – the day of the 8.0.1 software update.

And so I did: allowed the iPhone to install the update. And, as you do, I tweeted that.

In pretty short order, I started getting tweets from Twitter friends about the problems with the update.

Sure enough, the iPhone 6 had lost its ability to make or receive phone calls and text messages, the problem at the heart of the matter, one that seemed to  affect only the two newest iPhones, the 6 and 6 Plus.

So for the past 36 hours or so, along with thousands of other iPhone 6 users, I’ve had a smartphone with no ability to use it as a phone. Luckily, in my case, it isn’t my primary phone and it otherwise functioned just fine including connectivity via wifi. And so I was able to kick its tyres, as it were, during the Simply SMiLE conference in London yesterday, using many of its features.

And what about fixing the botched update? How hard was Apple on the case?

I imagine this was being treated with the utmost importance by Apple. I visualized their engineers working round the clock to get a fix done in the shortest time possible.  And I guess the shortest time possible was the 36 hours or so from 8.0.1 to the 8.0.2 fix that I saw appear in my iPhone 6 early this morning UK time.

ios802update

iOS 8.0.2 Learn More

And once the installation reached a successful completion, the iPhone 6 had its cellular capability restored and the fixes mentioned in the ‘Learn More’ text applied.

iOS 8.0.2 up to date

And all’s well that ends well, right? Everyone will breathe a sigh of relief. No doubt by this time next week, all this will be just a bad memory, a little one at that (although #BendGate is still ‘an issue’).

And what of Apple the company, one that is the maker of probably the most desirable tech gadgets on the mass market today? Has something gone a bit wrong there where we’ve seen a succession of missteps in recent months: the current issues with the iOS fiasco, for example, and celebrity nude pics in the iCloud a month or so ago?

I expect Apple will continue to feature high up in lists of the world’s best brands. I imagine the rosy glow of success will continue to embrace the company once more news and information emerge about Apple Watch and its launch next year.

So events such as I’ve mentioned may be just a blip on the PR radar to Apple, ones relatively easy to consider and address purely as issues to manage.

Yet I think such events have tarnished Apple’s reputation somewhat. The share price has fallen. The gloss has dimmed a bit on a company which has often in the past said that they make technology that just works.

Not this time, Mr Cook!

Apple share price

I believe there is a cumulative effect over time where things like this add up to a negative sum when it comes to trust and reputation. And, eventually, that will impact you, your products and services and your market position. Not to mention shareholder value.

Not a good place to be, Apple.

Sprinklr adds Branderati advocacy to its ‘social at scale’ offering

Sprinklr + Branderati

Enterprise social media company Sprinklr is certainly making big moves in the enterprise social space with news this week of another acquisition as the firm consolidates a credible position at the leading edge of the emerging business of enterprise-level social relationship infrastructure development.

Sprinklr adds a further dimension to its offering with the acquisition of Branderati, an advocacy influencer marketing firm, to give Sprinklr a major addition to its Social @ Scale product that manages the key and increasingly complex social channels of large companies.

Branderati’s service offering is focused on helping companies build their own advocacy networks on Facebook, Twitter and other social channels by enlisting fans and customers to market those companies, their brands, products and services.

In its news release announcing the deal, Sprinklr CEO Ragy Thomas said with 92 percent of consumers trusting recommendations from friends and family more than any form of advertising, “advocacy now must take a more central role, not only in marketing but also in the overall business strategy.” Thomas added:

Branderati has unlocked the key to sustained brand advocacy at scale and having their technology and know-how on board will mean big things for our clients.

The news release also includes some interesting metrics about Sprinklr as it now is:

Sprinklr now employs more than 500 employees in five countries and serves more than 650 enterprise brands worldwide, including:

  • Four of the top five U.S. banks
  • Three of the top six insurance companies
  • Three of the top seven hotel chains
  • Four of the top six retailers
  • Tech titans such as Microsoft, Intel, Cisco, and Dell

With Branderati marking the firm’s third acquisition this year, Sprinklr has doubled in size in numbers of people. Sprinklr raised $40 million investment capital in April. Now there’s more speculation about a potential IPO sometime very soon, even this year according to some opinions.

Whether an IPO is on the close horizon for Sprinklr or not, this acquisition looks a logical step for Sprinklr if you believe that social media will become an increasingly important element in the business strategies of large companies.

If you look at many large companies and what they’re doing with social media and social channels – just check the four names mentioned above – it seem quite clear to me that a firm that can offer a holistic approach to social at scale – two very key words – is in a pretty good place today.

Defining Twitter by more than the numbers

Twitter user growth

Twitter reported its financial results for the second quarter 2014 this week:

  • Q2 revenue of $312 million, up 124% year-over-year
  • Q2 net loss of $145 million and non-GAAP net income of $15 million
  • Q2 GAAP EPS of ($0.24) and non-GAAP EPS of $0.02
  • Q2 adjusted EBITDA of $54 million, representing an adjusted EBITDA margin of 17%

Depending on which media report or commentary you read, it’s either an unimpressive financial performance, or a strong performance to silence critics.

Either way, a common view in mainstream media reports is that the results exceeded financial analysts’ expectations.

One other significant element in the earnings announcement is growth in the number of users, as the Financial Times chart above shows – a consistent increase every quarter since mid 2010 to arrive at today’s number of 271 million average monthly active users, an increase of 24 per cent over the same period last year.

The combination of financial results that exceed expectations and continuing user growth are facts that the stock market and investors like. Indeed, the FT’s report includes a bottom-line statement:

[…] Shares rose to $51.25 in after-hours trading, the highest price since Twitter reported its first results as a public company in February, prompting the stock to plummet. The stock is almost double the price at which Twitter listed last year.

One other aspect I find interesting relates to what Twitter is, ie, how people now describe Twitter.

In media reports, you’ll see it described variously as a “micro-blogging service” – that moniker arose in the very early days of Twitter – or a “social-networking service,” both labels used in a BBC News report. It’s a “social network,” says the Telegraph. The FT calls it a “messaging platform” while The Wall Street Journal says it’s a “social media company.”

And Twitter? How does the company describe itself? From the ‘About’ paragraph in the earnings report:

Twitter (NYSE: TWTR) is a global platform for public self-expression and conversation in real time. By developing a fundamentally new way for people to create, distribute and discover content, we have democratized content creation and distribution, enabling any voice to echo around the world instantly and unfiltered. The service can be accessed at Twitter.com, via the Twitter mobile application and via text message. Available in more than 35 languages, Twitter has 271 million monthly active users. For more information, visit discover.twitter.com or follow @twitter.

Compare that to the mission statement on the Twitter corporate page:

Our mission: To give everyone the power to create and share ideas and information instantly, without barriers.

And note the latest user metrics on that page:

  • 271 million monthly active users
  • 500 million Tweets are sent per day
  • 78 percent of Twitter active users are on mobile
  • 77 percent of accounts are outside the U.S.
  • Twitter supports 35+ languages
  • Vine: More than 40 million users

Clear?

The future looks mobile for Facebook

Facebook mobile

Facebook posted its financial report on July 23 for the second quarter of its 2014 financial year.

The report shows financial pluses across the board for the mega social network in significant areas:

  1. Overall revenue for the second quarter of 2014 was $2.91 billion, an increase of 61 percent compared to the same period last year.
  2. Revenue from advertising was $2.68 billion, a 67 percent increase over the same quarter last year – and around 92 percent of overall revenue reported for the second quarter 2014.
  3. Mobile advertising revenue represented about 62 percent of advertising revenue for the second quarter of 2014, an increase of 41 percent compared to the same period last year.
  4. GAAP net income for Q2 2014 was $791 million, up 138 percent compared to the same period last year.
  5. GAAP diluted earnings per share was $0.30, up 131 percent compared to the same period last year.

Holders of Facebook stock will no doubt be quite happy, like Mark Zuckerberg, Facebook founder and CEO, who remarks drily:

“We had a good second quarter,” [Zuckerberg] said. “Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”

What struck me most about the numbers as shown in the concise earnings announcement is the advertising revenue growth and the high proportion of that growth  – nearly two-thirds – that comes from mobile.

Facebook mobile advertising growth /via FT

Indeed, the FT reports on Facebook’s earnings with two interesting charts – the one above showing the growing shift to mobile of Facebook’s user base since the start of 2013; and the one below, showing a clear growth trend since mid 2012 of mobile advertising sales.

Facebook mobile advertising growth /via FT

As for the opportunity Zuckerberg refers to, to “connect the rest of the world,” put that in the context of the latest user metrics included in the company’s earnings report:

  • Daily active users (DAUs) were 829 million on average for June 2014, an increase of 19 percent year-over-year.
  • Mobile DAUs were 654 million on average for June 2014, an increase of 39 percent year-over-year.
  • Monthly active users (MAUs) were 1.32 billion as of June 30, 2014, an increase of 14 percent year-over-year.
  • Mobile MAUs were 1.07 billion as of June 30, 2014, an increase of 31 percent year-over-year.

Plenty of room for growth.

(Picture at top via DigitalTrends.)

The big idea from Sprinklr

Social ad spending trends to 2015 - eMarketer

Less than three months after its acquisition of social business pioneer Dachis Group, social media SaaS vendor Sprinklr launches the next stage in its drive to bring greater integrated ‘social at scale’ ability to large enterprises with the introduction of paid social media to its modular infrastructure software platform.

In its announcement today, Sprinklr says the new paid-media capability tightly connects the platform that Forrester Research described as “the most powerful technology on the market” to the $7.8 billion market for paid social advertising.

This new capability enables brands and their agencies to plan, execute, measure and optimize their paid activities on Facebook and Twitter in the same environment as their owned and earned engagement. Combining integrated brand analytics (added via Sprinklr’s recent acquisition of Dachis Group), integrated listening (launched in January 2014), and automation to optimize paid media spend is a breakthrough for brand and direct response marketers. Early clients have reported over 25% increase in ROI as a result of increased effectiveness and efficiency.

In tandem with its enhanced-solution announcement, Sprinklr said it has raised $40 million in Series D funding from Iconiq Capital, Battery Ventures and Intel Capital. Sprinklr says the capital injection will enable the firm to attain a projected growth target of 300 percent year over year.

“Sprinklr has a bold vision for integrated experience management for the enterprise,” said Carey Lai of Intel Capital. “$100 billion of deployed enterprise software is at risk of becoming obsolete because of fundamental changes in consumer behavior and Sprinklr has the capability to capitalize. This is a big idea whose time has come.”

For the full story, read today’s press release – here’s the text:

Sprinklr Launches Paid Social Media Solution and Announces $40M Series D Funding Led by Iconiq Capital

Funding fuels the growth of industry’s first social relationship management infrastructure with integrated owned, earned, and paid capabilities

New York, NY — April 22, 2014 – Sprinklr, the largest independent enterprise social relationship platform provider, today announced the launch of its integrated paid social media capability as well as a $40 million Series D investment from Iconiq Capital, Battery Ventures, and Intel Capital. This new round of funding fuels Sprinklr’s projected growth of 300% year over year, as it enables end-to-end social experience management for large enterprises.

Sprinklr’s launch of paid media tightly connects the platform that Forrester Research named “The most powerful technology on the market,” to the $7.8 billion market for social paid advertising. This new capability enables brands and their agencies to plan, execute, measure and optimize their paid activities on Facebook and Twitter in the same environment as their owned and earned engagement. Combining integrated brand analytics (added via Sprinklr’s recent acquisition of Dachis Group), integrated listening (launched in January 2014), and automation to optimize paid media spend is a breakthrough for brand and direct response marketers. Early clients have reported over 25% increase in ROI as a result of increased effectiveness and efficiency. The module is expected to be generally available to all clients in six weeks.

“The social age demands that brands manage experiences across every touchpoint – every team, department, division and location. Paid media is at the core and is the most expensive part of creating brand experiences” said Ragy Thomas, CEO of Sprinklr. “The launch of paid and a 40MM series D, led by the smartest source of money on the planet, sets Sprinklr up to continue on our tremendous growth path.”

Iconiq Capital, a global multi-family wealth management company, led the round with participation from existing investors Battery Ventures and Intel Capital.

“Very few companies have ever been on Sprinklr’s current trajectory,” said Neeraj Agrawal of Battery Ventures. “The introduction of an integrated paid media module ahead of schedule positions Sprinklr as the go to provider to replace existing point solutions in social for large businesses tired of playing the role of a system integrator.”

“Sprinklr has a bold vision for integrated experience management for the enterprise,” said Carey Lai of Intel Capital. “$100 billion of deployed enterprise software is at risk of becoming obsolete because of fundamental changes in consumer behavior and Sprinklr has the capability to capitalize. This is a big idea whose time has come.”

Enterprises interested in learning more about this integrated capability can contact Sprinklr for a demonstration immediately. Existing clients can gain access to the integrated paid module by contacting their success manager.

Sprinklr is also hiring around the globe. Explore opportunities in Sprinklr’s New York, Austin, Delhi, Bangalore or Kiev offices here.

About Sprinklr

Sprinklr’s infrastructure software is how brands manage social experiences across every touchpoint. Unlike tools and platforms, Sprinklr is the only true integrated social relationship infrastructure. Called “The most powerful technology in the market” by Forrester Research, Sprinklr accelerates the social maturity of a brand, from just ‘doing social’ to being social, at scale. Sprinklr’s cloud software and strategic and analytic services enable the enterprise to innovate faster, grow revenue, manage risk and reduce operational costs. Founded in 2009, Sprinklr is headquartered in New York City and serves more than 450 brands worldwide including Microsoft, Intel, Virgin America, IHG, and 4 of the top 5 US banks. Visit www.sprinklr.com @sprinklr #SocialAtScale.

The thrill and heartache of BlackBerry: employee perspectives

BlackBerrys

Whether Canadian mobile technology company BlackBerry has a viable future or not is still a big unknown.

The company fell from grace during this year as sales of its smartphones plummeted in the face of competition from Apple and Android devices, plus a collapse in confidence in the company,  in the brand and in its leadership, and a knock-on effect on its lucrative software and services business.

The cost was catastrophic. Calling BlackBerry “a company in crisis” would be an understatement.

While some reports now talk about success with its BBM messaging service, others paint a dire picture of a company whose market share in hardware devices had all but collapsed by the end of the third quarter 2013 in key markets – to near zero in the US, China, Spain and Japan, for example, as the Guardian reports, also highlighting one ray of sunshine in one market: the UK.

Meanwhile, interim CEO John Chen affirmed in an open letter last week that BlackBerry Ltd is “very much alive, thank you” as it rebuilds itself as a niche player concentrating on the enterprise market.

Whatever the future for Blackberry, its past is a rich library of compelling memories and stories told by employees, former employees and others with strong connections to the company from its founding as RIM in 1984 to the present day.

You’ve heard the massaged and nuanced PR stuff from company leaders past and present: now hear the unfiltered stories of employees.

Such stories have been captured by Bloomberg Businessweek magazine in a feature report that paints a picture of the people of BlackBerry and their perspectives of their lives and connection to BlackBerry:

Over the last two months, Bloomberg Businessweek spoke to dozens of current and former BlackBerry employees, vendors, and associates. Here is their account of the thrill of BlackBerry’s ascension – and the heartache of watching its demise.

It’s a series of powerful vignettes of people and their experiences. It brings BlackBerry into life – it’s about ordinary people, not inanimate objects like phones – as it presents a timeline of events in the mobile-device marketplace, from its early days and, especially, over the past decade, as seen from the perspective of people who made up the once-12,000-member workforce.

Two handfuls of those experiences:

Gary Mousseau, eighth employee at RIM and software developer and manager, 1991-2007: I first met [founder and ex-CEO] Mike Lazaridis when he interviewed me. Mike is a very good orator and communicator of technology. He was a convincing-enough soul that I ended up taking a 13 percent pay cut to join RIM. I started in 1991. My first job was to build my own desk. There was no more room for me. They put me in the fax reception area. I was the guy receiving packages. I sat beside the fax machine, which was not fun. It was a small place. It was crowded. We were above a pizza joint.

Jim Estill, member of the board, 1997-2010: In the early days at RIM, people had no idea what a smartphone was. People had no idea what two-way pagers were. But they had such a cool factor. You’d take one out, and everybody would want to touch it and play with it and see what it was.

Chris Key, global account manager and carrier sales and relationship manager, 2001-09: In 2004, I shipped off to India. I became very active in feeding devices to Bollywood celebrities. I recall going to Bombay fashion week, and I took a box-load of BlackBerrys. A friend of mine is an editor for Vogue. She put me in the VIP section, and I drank Champagne and ate strawberries and handed out BlackBerrys to all the celebrities.

Lidia Feraco, senior marketing manager for Latin America, 2005-11: In the Jamaica/Trinidad launch, we did an exclusive campaign where people would come into a discotheque. We would give them temporary henna bar code tattoos, and people could use their BlackBerrys to scan the tattoos to get people’s [personal identification] numbers. People would say, “Scan me, scan me.” And as the evening went on, people would get more risqué and put the tattoos on different parts of their body. So instead of asking, “Hey, can I get your number,” the conventional line in a nightclub, it was more, “Hey, can I get your PIN?”

Brendan Kenalty, customer base management, 2007-10: I was in the loyalty and retention group. People would be, like, “You’re in BlackBerry retention? Why would anyone need that?”

Jesse Boudreau, vice president, BlackBerry software excellence, 2004-08: In four years we went from [approximately] 2,000 to 12,000 people. Having been at Nortel, the politics that get played is exponential. I was starting to see it be like Nortel. There was bureaucracy. There was pointless process. You were getting decisions by committee.

Vincent Washington, senior business development manager, 2001-11: One thing we missed out on was that Justin Bieber wanted to rep BlackBerry. He said, “Give me $200,000 and 20 devices, and I’m your brand ambassador,” basically. And we pitched that to marketing: Here’s a Canadian kid, he grew up here, all the teeny-boppers will love that. They basically threw us out of the room. They said, “This kid is a fad. He’s not going to last.” I said at the meeting: “This kid might outlive RIM.” Everyone laughed.

Ray Gillenwater, managing director, 2007-12: If BlackBerry was going to be serious about consumers, they needed to make a fundamental shift in the way products were thought about, created, iterated, marketed, and sold. This was done but never to the extent necessary. It was always a partial effort. There was a period of time when this could have been corrected, but when it became apparent that HQ and senior leadership were not addressing systemic issues, people like myself left.

Jeff Gadway, current senior manager for product marketing: When you go into the focus groups, and you talk to customers about brands in the technology space, there are brands that don’t come up at all anymore. And then there’s BlackBerry. People have fond sentiments about BlackBerry. If people didn’t have that affinity toward the brand, I would be challenged to really believe in what we’re doing. People want to see BlackBerry succeed.

‘Thrill’ and ‘heartache’ are indeed the sum total of much of these experiences:

Much more at Bloomberg Businessweek: The Rise and Fall of BlackBerry: An Oral History.

I was never a BlackBerry user. I never bought into the “doing my email wherever I am” culture. Yet, today, reading those emotive snapshots, I say: Good luck, BlackBerry.

(Photo at top via the Guardian.)

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