Future Shop Jumps on Social Networking Bandwagon

Online social networking is a growing trend: more and more people are using the Web to communicate, share, and get information. In recognition of this, Future Shop has jumped on board with its own, online community forum. I doubt Facebook or MySpace is shaking in its Web-networking boots, but from a retail perspective, it’s great to see a Canadian company take a bold step in fostering open, customer communication.

An industry conference I recently attended in NYC alluded to the importance of such open communication. “Invite conversation instead of demanding attention,” recommended John Batelle, founder of Federated Media. He aptly calls the current state of affairs the “Conversation Economy.”

Customers can visit the Future Shop forum (accessible via http://www.futureshop.ca/), and chat with others about products, ask questions, share stories, and throw in their own two cents. Available in both English- and French (there’s a separate forum for each), the conversations are monitored by an Avatar (i.e. a virtual “host” and product expert).

Several topic categories are available, ranging from gaming, to home theatre, and car audio. There’s even a spot for general, “off-topic” feedback. For example, one visitor posted “product suggestions”: stuff she’d like to see stocked on Future Shop shelves. Following the initial post, 10 others chimed in with their own “wish lists”. Sure, it isn’t realistic to think that Future Shop buyers are agonizing over these requests, taking notes, or getting on the phone right away to add SKUs to store shelves. But to allow such an open discussion helps consumers feel like they have a voice.

I took a quick look at the site. Currently, the top question is whether one should choose the PlayStation 3 or the Xbox 360. So far, 23 responses have been posted, each with a clear opinion. The "featured" question is a debate between Blu-ray, HD-DVD, and “standard” DVD. Sure, not all of the opinions are fully educated ones: some are based on fact (via references to legitimate publications like Twice or Marketnews!), some on opinion, and others on sheer misinformation. Many even originate from Future Shop sales associates across the country, who clearly identify themselves. Each comment can also be rated on a scale of 1-5. But every opinion is valuable, whether it prompts someone to pipe in and clarify with facts; or allow someone to play devil's advocate.

The point is: people are talking about technology. And that’s always a good thing for the industry.

Is a Second-Gen iPhone Already in the Works?

Rumour has it that Apple may already be working on its second-generation iPhone. JP Morgan predicts that the next iPhone will be slimmer and, most important, cheaper: pretty much a “nano” version of the smartphone that has captured the U.S. nation by storm (and has had Canadians salivating in anticipation).

The firm’s source for this information, according to Reuters, is a patent application Apple recently filed. The description was for a multifunctional handheld device equipped with a circular touch pad control.

Would a slimmer, smaller iPhone have the same appeal as the sleek and stylish just-released unit? After all, one of the iPhone’s most significant advantages over other “smartphones” is the oversized, touch-screen display that permits easier scrolling through things like web pages, e-mails, and music collections. A nano-like iPhone would have to forego many of the features and benefits of its larger sister due to size restrictions; but on the flip side, it would appeal to a whole new market that wants more affordability. Right now, the iPhone will cost U.S. customers a pretty penny at a hefty $500 for the 4 GB version and $600 for the 8 GB. Either way, if the iPod is any indication, there’s little doubt that a smaller version would be received just as well as the first-generation iPhone.

Of course Apple isn’t talking, so this rumour is still just that: a rumour. Nevertheless, iPhone Nano does have a nice ring to it…

Microsoft Extends Xbox 360 Warranty in Wake of Too Many Returns

It’s always nice to hear about a company taking charge to rectify a product issue. Microsoft says that the number of Xbox 360 returns due to hardware failure has been "too large", and therefore, is extending the product warranty to three years. Additionally, the firm will reimburse customers who have already paid to repair a “three red light flashing error” on the gaming console. According to Reuters, the charge will cost Microsoft upwards of US$1.05-1.15 billion, before taxes.

Microsoft says it has since made improvements to the Xbox 360 to reduce the likelihood of the hardware failure, indicated by three red flashing lights, and the result of "a number of factors".

Given the highly competitive nature of the gaming console market, this is definitely a good move on Microsoft’s part. So many companies focus on grabbing new customers, and not keeping the existing ones happy. Meanwhile, these existing customers are the ones who will recommend one console over another to friends and family; and even spread the word through online means, like social networking 'sites.

What's more, with Nintendo’s Wii leading the market; and Sony having just dropped the price of its PlayStation 3 console to be in line with the Xbox 360 Elite, this is perfect timing for Microsoft to step up. Sure, it’ll cost the company financially. But can you put a price on pleasing your customers?

HD Player Race: Dual-Format Discs, or Dual-Format Players?

During the 2007 International CES, Warner Bros. announced what many anticipated could be the solution to the ongoing high-definition DVD format war: a Total High-Definition Disc (THD) that would consist of a Blu-ray version of a title on one side, and the HD DVD version on the other. These discs were set to hit the market in the second half of 2007, but now Warner is delaying production. Why? Because only two movie studios offer films in both formats: Warner (no surprise there) and Paramount Pictures. Given this fact, the existence of a dual-format disc can't be justified at this point.

According to the Associated Press, Warner has decided not release THD discs until each studio delivers at least 10 titles in both formats. The firm feels this is more likely to happen by early next year, then by the end of 2007.

In an ideal world, the best solution, would be one, unified, high-definition format. But failing that, THD could represent the best of both worlds, and, most importantly, a win-win situation for the customer.

From the player manufacturing end, a few companies have also taken steps to end the format war. LG Electronics announced a dual-format, Blu-ray/HD DVD player at the 2007 International CES in Las Vegas. Although the first-generation player is limited in its ability to accomodate interactive menu features of HD DVD discs (it offers complete playback of Blu-ray), its very existence solidifies a strong point: why should consumers have to choose?

Meanwhile, Samsung Electronics has also announced that it will debut a dual-format player in time for this year's holiday season, although there has been no confirmation if the player will be available in Canada or not.

Assuming that a unified format is far from existence, the HD format war will likely become a chicken-and-egg race going forward: will more dual-format players come out of the woodwork, eliminating the need for a THD disc altogether? Or will single-format players continue to dominate, encouraging studios to back both formats?

Work While Commuting, says Survey

If Canadians just worked through the commute to the office, we’d be one step closer to closing the supposed productivity gap between us and our neighbours to the south. This is according to a recent survey conducted by Decima Research on behalf of Intel of Canada.

The survey reports that Canadians spend, on average, 240 hours per year traveling to and from work. For those who travel via public transportation (approx. 12%), this time could be used to catch up on work. Of course this would require high-tech devices like notebook PCs, and mobile devices, which Intel says only 11 per cent of companies provide to their employees.

“It’s not about working longer,” says Intel of Canada’s Country Manager Doug Cooper, “It’s about Canadian commuters making better use of their time.”

Cooper says using commuting time or, better yet, adding work-from-home options to a business, will help reduce the need for employees to work overtime at the office. Twenty-six per cent of respondents said their employers have a work-from-home policy, compared to 40% of private sector companies; and 100% of public sector agencies in the U.S. The survey cites interesting Institute for Competitiveness and Prosperity data that says Americans work 164 more hours per year than Canadians. (Although, in all fairness, no definition was provided for the term “work”, so this could be subject to interpretation!).

The Institute also claims that closing the work gap between Canada and the U.S. could potentially lead to an increase of almost $12,000 in disposable income to an average household.
Perhaps such initiatives will also help boost Canada’s reputation with our own Conference Board (see related story).

Although I personally don’t commute to work via public transportation, I can’t imagine wanting to use a one-hour morning and afternoon trip home to log on to my PC and start penning an article; or write follow-up e-mails. Nor can I imagine working on a Toronto subway or crowded bus as an even remote possibility during the rush hours. This time is all-important un-wind time. But for those who struggle with extra-long commutes into the office, it’s a no-brainer that work-at-home schedules can only increase productivity rather than reduce it.

The results are based on a total of 4,292 surveys completed online between April 9 and May 31, 2007.

Photo: Toronto Mayor David Miller and Toronto Hydro Telecom President, David Dobbin.

CBC Tests Power of Social Networking

CBC has really taken the reigns when it comes to technological innovation, partnering with mobile phone companies and Websites, alike to offer its content through various means of distribution. But the broadcaster is receiving some flak as of late for its attempt to use a popular social networking Website to “poll” Canadians on their wishes for the country. The project, in celebration of Canada Day, was aptly named the Great Canadian Wish List, and could be found on widely popular site Facebook.com. Was this an innovative approach to reaching an audience; or rife with issues?

Many argue the obvious: how can you confirm that legitimate people are submitting responses, and not fake accounts set-up by lobbyists to promote their own cause? What’s more, how can you confirm that the people responding are even Canadian? Not to mention: how many people are actually taking the poll seriously? One of the most “recently created” wish lists was to “bring back the McDeal”. Need I say more?

On a more serious level, the top “wish” on the list is to abolish abortion in Canada (9,753 respondents); followed by (ironically) for Canada to remain pro-choice (8,302). Rounding out the top five are a spiritual revival in our nation (4,608); to restore the traditional definition of marriage (4,590); and to lower or altogether eliminate tuition fees (3,507).

CBC says that the exercise was not meant to be an actual poll, but rather an experiment to gauge how social networking Websites could be used to reach an audience, and to help build support for a cause that one believes in.

Some journalists have called the experiment “embarrassing” for the CBC; while others have commended the broadcaster on its innovative tactics. I agree with the latter: whether the experiment worked or not is irrelevant. After all, that's why it’s called an experiment. The Great Canadian Wish List represented a fresh, creative approach to expression, and deserves some applause in my opinion.

The final CBC report on the Great Canadian Wish List, for those who are interested, can be viewed here: http://www.youtube.com/watch?v=BhZJgZfsGW8

Do Not Call is Coming

Hi, my name is Christine from Company XYZ, and you have been demographically selected to….(*click*). Ever experienced such a scenario? It’s highly likely that you have, with telemarketing running rampant in Canada. Well, your hopes and prayers to stop being bothered during dinner time, or while your favourite TV show is on might be answered. Today, the CRTC is one step closer to the creation of a National Do Not Call List. If your number is on this list, telemarketers can’t call you.

I’m skeptical as to how well such a list would work: according to a prepared CRTC press release, some callers would be exempt from the list due to the Telecommunications Act. These include: registered charities; political parties; nomination contestants, leadership contestants or candidates of a political party; opinion polling firms; general circulation newspapers; organizations that have an existing business relationship with a consumer; and organizations to business consumers. Pardon my asking, but who exactly is left? Can't pretty much any company find a loophole that would slot them in one of these categories?

For example, my cell phone and cable TV is from Rogers making me an existing Rogers customer. Does this mean one of Rogers Publishing magazines can call me? After all, it is technically the same company when you reach the top of the organizational chart, right? Note: this is just an example: I do not, as it stands, receive any unsolicited phone calls from Rogers!

Nevertheless, if you hate late night calls and prodding tele-sales tactics, I’d advise you get on this list as soon as the opportunity becomes available. The CRTC says that once it has located an independent operator to manage the list, Canadians will be able to add their number to the database at no charge.

I hope whatever company is found to operate this list understands the importance of high security: can you imagine what would happen if such a list was hacked?