Business - Written by Brian Gillooly on Tuesday, January 22, 2008 7:41 - 5 Comments
Facebook, Data Portability, and Stickiness
Live and learn. After my recent post musing about who owns Facebook — the college students who were the original targets or the businesspeople who’ve started to swarm the site — I heard from some people who clued me in on the work of the Data Portability Workgroup, which would allow social-network visitors to migrate their personal data among — and connect to audiences in — many different sites. It maintains my faith in the concept that, if I sense a need for something, there’s a darn good chance someone’s already been working on it. I’ll never be mistaken for a brilliant entrepreneur…
John Battelle took Facebook to task in a recent blog posting for presumably fighting the efforts of the Data Portability Workgroup. Facebook responded saying it’s committed to giving users control of their data on Facebook, but stopped short of committing to a completely open approach to portability. In fact, Facebook announced on Jan. 8 that it’s joining the workgroup. Some seem not to believe in Facebook’s commitment.
But the data portability situation brings up another issue: customer loyalty and “stickiness,” that overused term referring to the ability of a site or platform — or for that matter, a brick-and-mortar retail outlet — to maintain customers once they acquire them. With the ability to transport your profiles and experiences from one site to another with relative ease, a whole new concern arises for social networks and Web sites. If MySpace was concerned about losing audience to Facebook because of image, imagine the landscape when people can pack their bags and move on to the flavor of the month (or day, or hour) with relative ease. Salespeople say that the cost of acquisition (or reacquistion) of a customer is higher than the cost of retention; the same logic likely holds for retaining audiences on social networking sites. It’ll be interesting to see what these companies do to attract and retain fickle audiences once data portability becomes a standard. It was sad to see reputable news organizations pander to the common denominator with stories about celebutantes and video of stupid pet tricks when they began to battle for audience (because of the asinine business model based on pageviews, but that’s a blog for another day). Will social networking sites stoop to a lowbrow approach in an effort to build and maintain audiences? If so, I’ll be looking for other venues.
Hmm, maybe that’s a need someone isn’t working on right now…
5 Comments
Brian Gillooly
I agree with you, Kin, that the networks that embrace openness will rise to the top (although look how long it’s taken open-source software to gain a more mainstream acceptance), but I don’t think it’ll be because new players step up and users will follow. I think users will force the issue and then networks will adopt the platforms, designs, and usability that users demand — that seems to be exactly what’s happening with Facebook and the Data Portability Workgroup. They’ve reluctantly stepped to the table because they’ve heard the groundswell of demand from their user base, but they continue to hedge their bets waiting to see if they will offer true personal-data portability until the hordes are at the gates carrying torches.
Another important question to ask is what is the incentive for companies like Facebook to share data?
You’re saying it’s either share or lost users to better more open alternatives, right? What about network size though? I wonder if Facebook (unfortunately) has a lot stronger position in this than we think.
I think the incentive for Facebook and friends is that they stand to gain a smaller piece of a much bigger pie. Don’t you agree?
Interesting set of articles. While I agree with your point of view for the most part, I am uncertain I can agree with the notion that open networks will rise to the top.
Stickiness of clientèle will be maintained by delivering the product that keeps the most customers happy. In the instance of any social network, being “happy” is finding the easiest way to maintain contact with others while projecting your own persona. If Facebook/Myspace, others can do this in their own proprietary fashion, which is entirely possible, then they will win.
Remember, people have other choices that are entirely open, (i.e. the WWW, with fully open and customizable CSS, HTML, Flash) and no limit on creativity..it’s just do they have the time/energy/desire to learn how to do it?
Brian Gillooly
Matthew’s right: a blanket statement that open networks will rise to the top dismisses the importance of brand, product quality, usability, etc. (although I don’t think Kin was saying that openness equals victory). It’s a terrific point that Facebook can still be successful without providing true personal data portability, but I’ll stick to my previous comment that user demand will ultimately drive which direction Facebook goes on the scale of proprietary to fully open. Since they did join the Data Portability Workgroup, I suspect they’ll at least conform to some level of openness.
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I just can’t see how these market leaders can stick to their closed stances on portability and openness.
It just seems that people can move the next great social network that fully embraces data portability and platform development openness.
I think we’ll see new players step up and do it right soon enough and the users will follow.