Group items tagged

choosing to snack on an apple rather than a piece of cake

or larger projects like volunteering your time to a non-profit

users start to build a social identity based on their actions.

where users flesh out profiles based on their philanthropic interests.

This concept of a charitable social layer has taken off on other online platforms like Jumo or Causes.com. People are becoming more conscientious of how they’re perceived online. This social layer based on philanthropic interests is both an easy way to track causes and a positive way to self identify.

It must have mattered. Look how bad it was. Not only were the pages just ugly, they were peppered with database errors and CSS blowups

. It doesn’t prove design doesn’t matter, but it does suggest design may not be the deciding factor.

Can you see at what point in time we changed design?  No?  Must not have made a difference. Let’s look at time-on-site:

Nothing. But this is all superficial — what Really Matters is the Conversion Rate: are more or fewer people signing up each week:

Hmm. Looks like everything objective is saying “it doesn’t matter.” But as much as I respect and follow Lean Startup theory, objective measurements aren’t the only things that matter. Those customer emails matter too.

The other day we landed a large customer who said they could tell from our website that among our competitors we’re more mature and ready to handle a bigger customer like them. I can tell you — objectively — that we’re among the youngest of our competitors, and although I have a list of reasons why “we’re better,” the truth is that particular customer would probably be served just fine by several of those competitors. Was it the design that gave us that edge? Could be. Didn’t hurt, anyway.

Still, the more I look at the importance of design in the startups in my little career, the less it seems to matter.

Modern Lean Startup theory blares out from the red-tiled rooftops of Stanford: Seek the Data and Ye Shall Find! First the bounce-rate. If our website design was repulsive — literally — the bounce rate should now diminish. Here’s the data:

An even more extreme example comes from my second company ITWatchDogs. I displayed its old homepage at the magnificent Webstock design conference in Wellington earlier this year; the crowd whooped at our violent assault on the visual arts, complete with calliope menubar colors, two broken images tag above the fold, and a layout model that could be seen as a “grid” only after consuming a pillowcase of mushrooms:

But you’re anticipating the punch-line — ITWatchDogs grew every month, made millions of dollars, stole business from competitors with billion-dollar market caps (and professional-looking websites), and had a successful exit.

Of course it’s only fair to also point out some of the many instructive counter-examples: Hipmunk is the same thing as Orbitz or Travelocity — the only difference is amazing design, not just because it looks good but because it’s so useable. In the words of Joel Spoksly — the design “affords usability.” (P.S. Early Hipmunk team member Alexis Ohanian is so cool and smart and rich and funny and successful and good-looking that really he doesn’t deserve to be alive. (P.P.S. Hey flamers, for God’s sake it’s a joke! Don’t you realize I’m just sore from losing the Pecha Kucha competition to him?)) I always use and recommend Amy Hoy’s time zone tool only because it’s just nice to use and look at. (P.S. she also authors a terrific blog aimed at the solo entrepreneur.) Many people credit Mint’s smash success with their terrific design. Considering how many features were broken for how long, it’s hard to argue. 37signals documented — with data — how design changes results directly in more credit-card-swiping customers. It doesn’t get more “business value” than that. So where does that leave us in the “matters / doesn’t matter” question of design?

I think you can go either way, but you must decide whether or not you’re going to value design as core to your startup’s identity, and then act consistently. Here’s what I mean.

It’s clear from the outset that design is the only competitive advantage Hipmunk has over its competition. Specifically, by making the flight-search problem pleasurable and useable instead of feeling like you’re navigating pivot tables from Excel ’98.

They don’t have better data, better branding, better name, better SEO, or more money. Just better design, and not just easily-copyable incremental improvement, but a quantum leap better.

When design is that fundamental to the business — how it acquires and retains customers, garners attention and referrals, and distinguishes itself in the market — obviously design can be the most important thing.

Conversely, at ITWatchDogs the company’s internal and external culture was that we’re low-cost, friendly, approachable, regular guys, who understand exactly what you worry about, exactly what your budget is, and we nail it. The site might have looked bad, but our message couldn’t have been clearer.

But it is useful to decide where you come down on the question of design in your startup, because if it’s important you’d better work on that right now and develop a consistent culture of valuing design through-and-through, and if it’s not important you’d better decide what is important and nail those things all the harder, because you’ll be competing with people who are using superior design to cover up their lack of competency in those same areas.

So if brands aren’t necessarily going by their EA network score to judge their return on investment, how do they know if their time is well spent? Robert Scoble thinks it’s too early to say whether brands will see a major return on their EA investment. “It’s something fun to play around with, but that’s all I’d be doing right now if I were a company,” Scoble said. “That said, you could get a lot of PR by playing around with services in early stages of the game. Everyone remembers [the companies that were early to] blogging and Twitter. No one cares about the 3,000th one there.”

Intel is seeing results from being an early adopter. “As one of the first Fortune 50 brands on EA, we got first-mover credit,” explained Rhoads. “People noticed we were participating and were able to interact directly through the game with a very active, pre-existing community. It’s very satisfying to invest in that community and I think gratifying and perhaps surprising when a brand re-invests back in you. As far as results are concerned, it’s hard to tell.”

While larger companies are always among first adopters for new social networking sites because they have more resources and staff, the true test will be if smaller companies will flock to EA as they have to Facebook and Twitter. Most companies will likely need harder evidence of return on investment in order to justify getting into the game

Current Dollar Fair Market Valuation Pro bono work should be valued at Fair Market Value (FMV) and recorded as non-cash giving in CECP Survey Question 9.  FMV is the hourly or project cost that a paying client would incur for the same service. Companies are encouraged to use the three scenarios below to assist in determining the FMV of services rendered.  The dollar values in the scenarios below are based upon current U.S. salary data adjusted to account for geographic differences and typical fee-discounting practices.  CECP is currently unable to provide dollar-value assistance for non-U.S. pro bono service. Paid-release-time service that does not meet the pro bono criteria should be recorded at a dollar value that is appropriate to the skills involved in CECP Survey Question 22 (do not include pro bono hours in Question 22, as that would be double counting hours recorded in Question 9). When in doubt, the current Independent Sector rate is appropriate.

For companies with minimal pro bono tracking capabilities In the absence of employee skill area data and internal billing rates, CECP recommends using an estimate of $120 per hour for pro bono service projects. This is based on a rounded average billing rate for mid-level employees across disciplines, highlighted below. For companies with moderate pro bono tracking capabilities Companies that track the seniority level or skills deployed in pro bono projects should use the following chart to value pro bono hours if internal rates are not available.

For companies with robust pro bono tracking capabilities Companies should use their best internal billing information to determine the FMV of services rendered. These valuations should be adjusted to reflect billing differences by: geography, seniority level, rate discounting, employee skill area, etc. To do this, companies must track project metrics that affect billing rates so that an accurate, defensible valuation for pro bono contributions can be recorded. CECP strongly encourages companies to track pro bono to this level of specificity whenever possible.

“A lot of people said, ‘I didn’t want to appear to be bragging, I see volunteering as something that I do on a very personal level and I don’t expect to be rewarded for it on a professional level,’”

“There are a lot of people that keep it private because they do it for themselves and i respect that,” Williams says. “But at the same time, I think there’s something to be proud of with your commitment to causes.”

ow did this come about? In large part, it is because the payoff for corporate engagement with customers has risen dramatically as a result of social media.

As the brand’s customers become loyal fans, they use their social networks to spread the word about that brand, driving even more new fans to join in. This dynamic may have its initial upfront costs, but it pays off in the end through an extended global audience of buyers and fans.

Transforming a brand into a socially responsible leader doesn’t happen overnight by simply writing new marketing and advertising strategies. It takes effort to identify a vision that your customers will find credible and aligned with their values.

The Seven StagesThe process of becoming a brand leader in the next decades will be an evolutionary one involving at least seven stages.

Unsustainable corporate self-interest

Self-directed engagement

C-suite reflection

Consumer facing self-interest:

Self-directed reform:

Brand leader:

Brand visionary:

Indeed, if we consider the online reach of companies like Facebook and Twitter, the offline reach of companies like Proctor & Gamble, Unilever, Coca-Cola and Walmart, and the fervent consumer loyalty that companies like Apple, Nike and Patagonia inspire, it’s easy to imagine how a web- and social-savvy population could coerce these companies — and any others who want to follow their example — into becoming the leading global brand visionaries of the future.

4. Optional: Determine which outlet gets the scoop In today’s media landscape, a story covered 15 minutes ago by another blog can already be considered old news. Therefore depending on the type of news and the market you’re in it might be wise to give one specific media channel the scoop.

5. Send personalized emails to journalists, under embargo If you decided not to give the scoop to a certain blog you can still let journalists know about your announcement before you actually make it public.

6. Write draft emails In the previous step you have probably only sent out the news to a handful of contacts on your contact list.

7. Make the announcement When the day finally comes, you can publish your press release (or have it published automatically if you’re using the schedule option).

8. Distribute your press release In a previous step you set up draft emails for all your PR contacts, now is the time to send them.

9. Thank the people that covered your story Congratulations! Now that your press release is out in the open you should see some coverage happening. Be sure to enjoy all the free publicity your company receives and thank the people that cover your story via a personal email so you can start building a relationship with them for your future press releases.