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Originally Posted by KSig RC
What happens when American Express wants 50% instead of 3? What happens when paper currency is replaced by hugs and handpounds? I'm teasing, but the contingencies you're guarding against aren't really "bad" - they're just awkward ways to end a business relationship (so likely, FB wouldn't do them).
Delta literally controls these decisions, either way, through its Facebook app - in a direct sense, this will be similar to FarmVille or whatever happy crap, but simply a dedicated storefront. The technology is already in use (mostly by games that require you to buy shit), so why not use it for real transactions?
I'd expect zero "joke" transactions because you'll be required to pay with a credit card - how many "joke" transactions go through delta.com or kayak?
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First two paragraphs -- makes sense.
Last paragraph -- there actually is a section that stores credit card information (under the 'accounts' tab). The people who have likely filled that portion in are the same ones who'd create/become victims of 'fake' transaction (young folks using their/Daddy's credit card to buy land for Farmville or something).
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So obv Delta shouldn't reach outside of their demographic?
Then there's this: a massive number (a sizable majority, IIRC) of new Facebook users are 30+. And they use it for jobs/networking (and thus would fit the Delta profile). Maybe we should rethink exactly what the "Facebook demographic" really is - as far as I know, the average Facebook user is an adult, out of college and with a job. I have a pretty rad SkyMiles account, but Delta using Facebook to alert me to deals etc. would be completely within what I'd appreciate as a customer.
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Ideally, you'd want to reach a wider demographic, but Delta has tried -- and failed (see
Song) -- in doing this, thanks to the value airlines. Their business model doesn't seem to fit this. Someone who books through Facebook (or any other social medium) is likely going for convenience and cost (which would fit SW/JB), whereas Delta has promoted itself as a "total flight experience" airline (different classes of travel, SkyMiles, etc).
And yes, I've read statistics that say the the average Facebook user is 30-40ish using the site to reconnect with old friends. The "real" Facebook user (daily usage, interacting with several areas of the site) is the younger demographic. These are the people who are going to go with low-cost airlines because, well, they're cheaper.
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Ha - totally fair, and I'm really really glad that you can provide this information. It's interesting, no doubt - and I haven't spent any time on that issue. Never feel bad about dropping knowledge!
But it still seems like a clear, easy win - the programming time is likely minimal (and probably based on 'sunk-cost' on-staff programmers anyway), it eliminates further overhead by allowing easier online purchases, and etc.
What else am I missing?
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From a consumer standpoint, I can see it being a good thing. I guess I'm just thinking about it from Delta's perspective. It just doesn't seem to make sense to spend resources to go after a demographic that likely won't end up using your product.