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In the last year we’ve done several research projects on mobile money at FACE, as excitement around the possibilities of “mobile wallet” develops. SXSWi was a chance to hear from leading players in the industry – American Express, PayPal, Intuit and more – on where this technology is going.

What is mobile money?


It’s important to think about the category as “mobile money” rather than simply “mobile payment” or “mobile wallet”. What’s at stake is much bigger than just transfering your credit card to your phone, or simply replicating the functions of a wallet (payment, loyalty cards & receipts) on a mobile device. The technologies available – smartphones, geolocation, the development of 4G and widespread wifi, and of course NFC – mean that what’s possible is in fact much greater: re-imagining the whole human-money interface.

What’s this mean? It’s about looking at every way in which we interact with money, and thinking about the transformations in user experience that are possible if we make it mobile. The transactions up for grabs are many and varied:

  • payment in a shop (of course)
  • paying a friend back for the taxi ride last night
  • checking to see if your credit card payment has gone out
  • transferring money immediately before making a big purchase to ensure your account doesn’t go overdrawn
  • adding up your receipts to see how much you’ve spent on eating out this month
  • calculating whether you’ll be able to get a mortgage
  • buying a flight (or just a coffee) with reward points – mobile money encompasses stored value, not just legal currencies
  • getting a discount email like Groupon and redeeming that online
  • searching for the cheapest iPad retailer online
  • or searching for a local restaurant offering a discount 2-for-1 deal
  • …and much, much more.

Making it mobile doesn’t simply mean “available on my mobile phone screen”. The mobile phone is a smart, location-aware computing device, carried almost always within a metre of our bodies, which is always connected to the internet and keeps us always connected to the people we know. Taking full advantage of these properties is what makes mobile money fundamentally transformative. The word “revolutionary” is overused in business, but making money truly mobile is a much bigger deal than the rise of credit cards in the 1960s, the last biggest step-change in payment methods.

Challenges

There are however some substantial challenges in rolling out mobile money to its full potential. Here are five:

1. Money is a difficult sector to innovate in

Regulation is a big hindrance on start-ups in the money space: there is both legal incumbrance and a cultural resistance (aka trust) to companies taking risks, trying something new – and perhaps not succeeding. The big incumbents are also an obstacle – banks own the central customer account (current/checking accounts), and Visa,  Mastercard & Amex control payments.

Building new back-end processing systems is very difficult, and even the big over-the-top players (PayPal, Google Wallet) are essentially innovating on top of existing card payments i infrastructure. Dwolla – a New York peer-to-peer (P2P) money startup – is worth a note here, for one that isn’t.

2. What’s happening with NFC?

NFC stands for near-field communications. It’s a type of radio communications – like wifi or Bluetooth at a different frequency – that allows for short-range (10cm) communciation between devices and tagged objects, other devices, and merchant terminals. It is ultimately the key way contactless payment will be delivered – although it’s worth remembering that mobile money means a lot more than just in-store payment.

Unfortunately NFC uptake is moving extremely slowly. So far there are only a handful of NFC-enabled handsets in the UK, and many of them are unappealing low-spec phones. The big player is of course the Apple iPhone, and so far there’s no news as to when or how NFC will be implemented on this device.

Without a standardised technology, merchants are naturally unwilling to invest in NFC payment terminals so these remain in a few chain stores only – MacDonalds since 2003; Pret A Manger, and so on. We’re 5+ years away yet from “leave your cash & card at home”.

3. UX benefits of mobile payment in-store

One eye-opener for me about our US trip was just how annoying magnetic-stripe payment really is. US banks haven’t been able to agree on a Chip & PIN standard (as in Europe). As such payment requires the merchant taking the card away (a security risk) and two stages of receipts. NFC payment would clearly be much quicker than this, providing a clear driver for consumer uptake. However, it’s got minimal speed and thus user experience benefit in Europe over the faster Chip & PIN.

4. Trust

Many commentators rate the chances of the over-the-top tech players (mainly Google, Apple, Paypal) as ahead of the banks. Despite some bank mobile apps getting rave user reviews (RBS and Natwest’s mobile banking apps) and a strong move from Barclays Pingit on peer-to-peer transfers, there’s a suspicion that banks are likely to stick to “mobilifying” what they already do, rather than really innovating and reinventing the category. That transformative capacity – and also slick UX design – would seem to be more the property of the tech companies.

But PayPal has a trust problem: we see consistent and frequent stories of how it freezes people’s accounts for months without explanation or recourse. That’s infuriating when it’s your tool for P2P and small-merchant payments – it’s completely untenable if they’re operating your current account. There’s also increasing consumer suspicion of just how much Google knows about us – so giving them access to our finances may be a step too far.

5. Who’s actually thinking big enough?

This was the core insight from a fantastic solo SXSW presentation by Omar Green, Director of Strategic Mobile Initiatives at Intuit, the payment technology firm. He talked about “creating a mobile wallet worth having”, and said he thought the company who would “win” mobile money would be the one offering every transaction listed above and more.

As suggested above, the risk is that too many of the mobile money launches we can see on the horizon are thinking too small. Credit cards on your phone and no additional functionality – so what’s in it for me the user? A couple of dozen big-brand partners rather than available everywhere – so why use? There will certainly be some early adopters who’ll take-up simply to be first and look ahead, but they’re a minority. Strategically banks, MNOs and tech firms need to recognise that these standalone offers must only be stepping stones to something much bigger if they’re going to get any real traction. (Barclaycard have had an NFC credit card since 2003. No-one cares.)

Omar Green had a vision of what mobile money could be that I’ve not seen from anywhere else in the industry. The goal is a seamless money experience addressing our fundamental financial and emotional needs – balancing the books, saving for the future, feeling in control and feeling like we’ve spent our money wisely.

Question is, how seriously will the various mobile payment and wallet apps launching this year will really address these?

An underrated skill in social media research is simply knowing what to search for.

Really? You’re interested in a particular brand, so surely you search for that word or phrase, right?

For brands such as Three, Apple, or the AA? Go ahead, give it a go!  Just don’t be surprised when you get back a lot of content about “Three ways to boost your Twitter profile”, apple crumble recipes, and AA rated sovereign debt.

Searching the internet

We often describe setting up a social media research search for a brand as like doing a Google search.  This is loosely accurate – like Google, a social media research tool ‘crawls’ news, blogs and forums for instances of your keywords. The research tool will also filter social media APIs (e.g. Twitter, Facebook) for instances of these words or phrases.

The problem is that the internet contains a lot more content than you think it does. Normally you never see it, and much of it isn’t even designed for human readers.  Here are a few forms this takes:

Challenge 1: SEO spam

Being at the top of Google’s search results is a very valuable place to be if you want to get visitors to your website or online shop. This has made gaming Google results an industry in itself, called SEO: search engine optimisation.

SEO aims to guess Google’s search algorithms to manipulate clients‘ websites to the top of search listings. Google basically rates sites more highly the more in-bound links they have – i.e. the more popular they appear to be. So gaming Google results entails generating a lot of false links and content, with methods including:

  • Fake news sites reprinting press releases and “content farms”, e.g. Demand Media or Articlesbase
  • Promo blogs with high numbers of links to the client’s site, with random or copy-pasted text to make Google believe they are legitimate blogs rather than spam
  • Legions of Twitter bots (automated accounts with an algorithm rather than a person generating their content) posting links to websites
  • Using bots or real people (incentivized by micropayments) to post high volumes of blog comments with links to the client’s site

This gives rise to a lot of misleading digital data, all of it only designed to be “read” by Google’s algorithm rather than human eyes. To a reader – or anyone tracking a brand – it is useless.  The problem is that it’s got your brand name in it, so any generic brand-name social media search will bring back this “noise” too.

Challenge 2: unexpected content

Do a Google search these days and the internet seems an ordered and relevant place. Even when you search for an ambiguous word with several meanings – let’s say “Orange”, the results are sensible – Orange the mobile company and the Wikipedia page on the fruit.

This is because Google have spent years refining their algorithms to ensure it brings back the most relevant content possible.  This doesn’t just mean putting the most popular links at the top of results. Instead Google uses everything it knows about you – your previous searches, your Google profile and Gmail, your stored cookies and more – to deliver personally tailored results.

Social media research tools don’t however work this way. The APIs and scrapers collecting content return all keyword mentions, relevant or not. In searches we’ve run, some of the most unexpected things we’ve found have been:

1. Searching for banks will bring back posts on “carder forums” – the sites where credit card fraudsters sell the card details they have stolen from databases.

2. Almost everything is a word in Indonesian. You thought you were searching a specific and unambiguous acronym? No, it also means something in Indonesian – and volumes can be enormous because Indonesians are one of the most active populations in the world on Twitter.

3. Pharmaceutical searches are near-impossible. Dubious medication sellers will include hundreds or thousands of drugs as keywords on their pages, whether or not they’re selling those products.

Challenge 3: not all relevant content is indexed

So far we’ve described some ways that irrelevant content or “noise” can get into your social media search. There’s also the opposite problem, however – not being able to ‘see’ certain types of social media content, particularly forums:

Message boards are part of the Internet known as the ‘Invisible Web’ and pose many problems to traditional search engine spiders. The dynamic content is usually very deep and hard to search. In addition, many of these sites change their locations, servers, or URLs almost daily presenting special searching challenges [Boardreader]

This makes it essential to use a social media research tool that allows you to check which forums are tracked, and customize the panel of sources as needed.

Impact on social media research

What this means for social media research is that if you’re using an off-the-shelf monitoring package, you’re probably getting a lot of junk in your results. Brands are often keen on easy usability – type your brand name into the search, and get a volume figure and sentiment stats out. But without tailormade search syntax, those figures are almost certainly meaningless.

So how do you make your social media research search relevant?

1. Specific is better

Using broad search terms and then excluding keywords you’re not interested in doesn’t usually work very well. You’ll never be able to filter out all irrelevant content – language is too varied and dynamic. E.g. if you’re after the mobile brand, search for Orange AND mobile, not just “Orange”.

2. But you can filter irrelevant websites

Not that many big content farms exist – so we exclude everything from them by URL.

3. Also filter particularly spammy keywords

e.g. “Viagra” for anything medical.

4. Boolean search syntax

This is the logic that enables you to search for content including A and B, A or B, or including A but not B.  It’s essential not only for designing your social media search strings, but for also searching within the dataset.

5. Test your search terms on Twitter

Enter your search phrases into Twitter Search to see whether you’ve got them right, or if they’re bring back unexpected or irrelevant content instead. Twitter search also helps you understand the volumes of content that’ll come back (is it multiple posts a second, or a couple per day?)

6. Get personal

If you’re specifically interested in what consumers are saying, searching  with personal pronouns – e.g.“my iPhone” – will bring back a much more relevant dataset than “iPhone” on its own.

Which is to say, designing a relevant and accurate social media search can involve a surprising amount of time, thinking and ongoing refinement. Few brands have the time or expertise to do this in-house using an off-the-shelf monitoring tool.  This is why our clients have come to us instead for our expertise in locating what matters in social media – the signal amongst the noise.

Blog, Research Communities, SMinR

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Performing Identity in Social Media

  • Date September 22 2011
  • Posted by Jess
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As we develop our online community research platform here at Face, we’ve been asking a deceptively simple-looking question. Should people have usernames, or real names, or some mixture of both?

It sounds trivial, but in fact design decisions such as this can have substantial impacts on how people contribute to online communities. Should participants use real names, as clients choose this kind of research to get in touch with “real consumers”? Or – as danah boyd and Skud (note names!) have argued – can real name policies be oppressive, as in the case of Google Plus? Might pseudonyms (a) help people talk more openly about difficult topics, and (b) be a more authentic representation of social media use in the wild, outside market research?

The bigger question here is one of identity.

Social media and social networks foreground this issue by the way that identities literally have to be written and created whenever we join a new group or network. Companies such as Facebook invite us to describe our identities within pre-defined categories – age, gender, location, favourite bands, favourite brands. Others such as Twitter, offer a 140-character blank box. Our updates and public messages then continue this process of producing an image of a certain kind of person – we tweet much more about things that make us look good than anything naff or mundane.

In an excellent blog post about this “identity work”, Jenny Davis (a PhD researcher in sociology at Texas A&M / @Jup83) concludes:

1) the social construction of identity is a laborious process;
2) the labor of identity construction must remain unseen; and
3) the architecture of social media asks us to present ourselves in explicit ways.
A tension is therefore created between the prevalence of interaction media which facilitate explicit self construction, and the appearance of a self, constructed through such media, that must appear to have organically emerged.

Jenny Davis, ‘Identity Work and the Authentic Cyborg Self’

A very interesting argument – but one potentially resting on two implications that need to be questioned:

1. How hidden is identity construction?
2. Are identity construction and authenticity really diametrically opposed?

Two distinctive features of digital life in 2011 are Lady Gaga, and self-branding blogs. Both seek to project a certain image in order to produce a particular reaction from people – fame and career success respectively. This method – “fake it to make it”, if you will – is backed up by the sociological concept of performativity.

Social theorist Judith Butler argues that our speech and actions (performance) produce what people understand as our identities and social norms:

“Butler [explores] the ways that linguistic constructions create our reality in general through the speech acts we participate in every day. By endlessly citing the conventions and ideologies of the social world around us, we enact that reality; in the performative act of speaking, we “incorporate” that reality by enacting it with our bodies, but that “reality” nonetheless remains a social construction. […]
In the act of performing the conventions of reality, by embodying those fictions in our actions, we make those artificial conventions appear to be natural and necessary. By enacting conventions, we do make them “real” to some extent (after all, our ideologies have “real” consequences for people) but that does not make them any less artificial.”

Dino Felluga, “Modules on Butler: On Performativity” in Introductory Guide to Critical Theory.

Butler makes the post-structuralist argument that the distinction between “real” and “constructed” identities is a misnomer – the ‘real us’ is something we perform and construct. Bringing this back to social media research, the question is how far might our research participants agree that the same is true for their online identities?

We can start by asking people what choices they have made in (a) setting up their social media profiles, and (b) in deciding what content to share on a daily basis. What may be most revealing is asking people what they choose not to mention – e.g. only mentioning your activity or location if it’s interesting and a bit braggable; not sharing links to the Daily Mail horoscopes (which you’ve actually been reading for the last 10 minutes) but rather a breaking piece of news about some new Silicon Valley start-up.

Every professional on Twitter, in particular, is making daily choices about the balance of personal and industry-relevant content they want to present. This is seen as normal and good practice, counter to the idea that the work of identity construction is supposed to remain hidden. This “conscious performativity” is most visible in the case of Lady Gaga – and legions of fame-hungry contestants on reality TV shows – who take calculated self-construction to an extreme, presenting conceptualised, mediatised packages where artifice becomes very much the point.

If people acknowledge the effort they put into presenting their online identities, what does this mean for authenticity? Empirically we can see that authenticity is still valued in people’s online identities – “self-branding” is fairly widely mocked (at least in the UK) for encouraging fake and pushy personas online. But how can identity be authentic and yet also constructed and performed? Why does Lady Gaga insist that she was “born this way”?

The issue is what we mean by “being authentic”. Being “made” is acceptable – what is at stake is the sincerity of our identities. Erving Goffman’s classic text on performed identities, The Construction Of Self in Everyday Life (1959), makes this point clearly:

“When an individual plays a part he implicitly requests his observers to take seriously the impression that is fostered before them. They are asked to believe that the character they see actually possesses the attributes he appears to possess, that the task he performs will have the consequences that are implicitly claimed for it, and that, in general, matters are what they appear to be.”
(Goffman 1959)

An insincere or cynical performance violates the trust required for social interaction, hence its taboo nature.

Finally, it is important to note that we can be authentic in different ways in different contexts. For example, James is an honest man and also kind. At the funeral of his wicked uncle, he will not be honest about his thoughts about the deceased, in order to be kind to the feelings of the rest of his family. As Erving Goffman highlights, the performance is specific to the stage where it occurs – our identities are not socially universal.

To sum up, this results in a conception of identity departing from Davis’s:
1) the social construction of identity is a laborious process;
2) we are aware that this labour of construction occurs, and do not demand self-making to be invisible
3) nonetheless authenticity is still required, specifically in the sense of sincerity
4) authenticity depends on context

So what are the implications for online research communities? A few suggestions:

1. Participants need a space where they can determine the social context for their community and construct the appropriate identities. Researchers do this with initial getting-to-know-you tasks, asking people to introduce themselves to the community, but research communities don’t tend to offer much more than this – which potentially results in ‘thinner’, less fleshed-out identities and interactions between the group. Allowing people spaces to share “irrelevant” content, e.g. in status updates, general chat or personal blogs, provides the necessary space for people to build ‘thicker’, deeper identities – and also provides more interpersonal information to help participants come together as a community.

2. Should your community use an external ID provider, e.g. Facebook? No, as this will bringswith it a pre-determined social context that may not be appropriate for the community you’re trying to build. (e.g. LinkedIn IDs won’t get people in the right frame of mind for a community about parenting.)

3. In an ongoing community, let people choose and change their userIDs, display names and avatars between projects, as a way of helping them foreground the relevant social identity (e.g. as student, or mum, or twentysomething, or Italian) for the project at hand.

4. Clients may want to see “real names”, but this may not necessarily be the most appropriate and relevant identity to foreground – some social groups (e.g. video gamers, sports teams) are strongly nickname-based.