It’s no secret - our economy is sick. Unemployment is on the rise, people are at risk of losing their homes, the stock market is down, and people are generally worried about their financial future.
As a result, people are scaling back on their spending -forcefully becoming more thrifty. Still, let’s be honest, we’re Americans. While we might cut back - even a lot - we won’t cut completely out; it’s the American way to be spendthrift-ish.
So for the next several months while the economy shakes things up, what should be your strategy -particularly during the busy, competitive holiday season? People are bound to spend less. So what how do you draw more of this smaller pool of dollars to your brand vs. the competition?
Fundamentally, there is a shift in the way people spend their money. Much more, people need to feel good about the money they’re spending. Value is huge. So if you can’t change your product, what can you change?
How about CUSTOMER SERVICE?
It slipped away when people would buy regardless of the experience, because spending wasn’t an issue. Today, though, a dollar needs to go farther. It isn’t just the pair of shoes a customer buys, but the experience she has doing it. Brands need to make their customers FEEL GOOD about the money they spend. Call it guilt management … with a smile.
Let me give a personal example:
I’ve had some major dental work done over the past 2 years. For anyone that’s been through this kind of ordeal, you know it’s painful and time consuming … but more than that, it’s EXPENSIVE. Bottom line, it’s natural to put these things off - and even more so in tough financial times.
And when it comes to dental work there are always options. Do you get the cheap filling or crown, or the pretty one? Do you pull the tooth, or repair it, etc.
Recently, I wrapped up my dental work - and I bought the pretty options/the more expensive options. Why? His SERVICE sold me. I adore my dentist and his entire staff, and they made me feel good about choosing the pricier options.
And to say that I haven’t cried in his chair would be a lie. Still, I love my dentist - now that’s sayin’ something. Everything about his business is better than any other dental experience I have had. They run the business like your personal experience makes or breaks them. They give frank and honest consultations, fair options, and they learn who you are and deliver based on your needs. I’m now loyal, and will “shop” with him for all my dental needs, period.
This is a huge lesson for businesses right now - online or offline. Actual service improvements will improve your bottom line. That’s a fundamental business change if you’re not already excelling in the area. But the other lesson here is this: Make people feel better about spending with you. What do they get buying from you that they don’t get at your competitor? Sounds simple. But if my experience has shown me anything, the simpiler the answer, the more likely it is to be right.
I’m fairly certain I don’t even need to describe this ad, I think everyone knows it. My 10-year old son will even sigh when he hears it now.
What I learned from the AdFreak post is that there are actually several websites hosting rants about this ad (e.g. Consumerist, Esquire). One quote the post cited: “It makes me want to kill someone/never ever buy a Toyota.”
Now, you know you’ve done something wrong when something like this happens.
I am NOT one to subscribe to “any publicity is good publicity.” I think you need to respect your audience and deliver a message that they actually want to hear - something they can connect with, that will move them to act. Maybe the idea of 0% financing is a good one - but delivery is everything.
Tell me how this ad moves somebody to act? (besides to rant on websites, or declare they’ll never buy a Toyota, or threaten suicide)
“… Imagine that you have a 4 x 4 grid to fill with assets. If it’s a business, it might be location, reputation, staff, offerings that are in high demand and a sector that’s robust… if you’re doing it for yourself, it might include your resume, your network, your skill set, etc. When someone chooses you or your products, they’re considering everything you have to offer. Whether you’re looking for a job or trying to make a sale, there is rarely only one thing that makes the difference.”
“That’s why human nature is so enraging. When something is going wrong, when the economy is out of sync, we panic. We obsess about just one of the sixteen boxes and ignore the others. We talk ourselves into hysteria about how, “none of our customers have any money,” or, “in this bleak economy, we’ll never make a sale.” Instead of using the relative downtime to build up the other 15 boxes, we just sit in the corner, keening, worrying about that one box that’s out of whack.”
It’s common sense right? Sort of businessstrategy meets positive thinking?
Is this just wishful thinking? Maybe. Maybe not. Yes, eventually tough decisions have to made when $$ doesn’t come in. I get that. But, take a minute to consider what could be achieved if we put panic aside. Focus would shift from “money money money” to: building upon category expertise, focusing on new ideas, challenging conventional thinking, building culture ….
I’d venture to guess that the companies who chose this path will come out stronger in the end.
Ok, so I WAS going to blog on one of my favorite topics - the desperate survival tactics of Starbucks, most recently with their new and surprisingly successful Oatmeal product launch. BUT, I decided to table this rant for a more timely and irresistible topic: JOE THE PLUMBER.
“Joe” (actually Samuel J. Wurzelbacher - whose personal story has taken an interesting political/media twist) took center stage at the third and final presidential debate when Obama referenced a conversation he had with Joe about his small business and the taxes he might face under Obama’s tax plan.
Right, so what does this have to do with interactive marketing?
Well, perhaps not surprisingly, Joe the Plumber has fueled yet another opportunistic marketing frenzy. Shortly after the debate, there was a lively bidding war on Joe the Plumber keywords. According to a recent ClickZ article, regional plumbing company Mr. Rooter topped the sponsored listings on Yahoo with “Joe Plumber.” Cafe Press also joined the madness with a “Joe the Plumber” T-shirt. (Of course. Nothing these days escapes the grip of the screen print tee.)
ClickZ also reported: “Over at Google, the Obama-Biden campaign purchased the keywords that link to a Web site that includes a calculator.” Here taxpayers can use the microsite to calculate the personal impact of Obama’s tax plan by simply entering their salary.
And this is where opportunistic marketing meets interactive best practices.
The Obama-Biden campaign didn’t just purchase the keywords and walk away. They approached this like seasoned online marketers. They linked them to a relevant destination: a microsite that addresses the very topic that surrounded the idea of Joe the Plumber: how each candidates tax plan will impact small businesses and individuals. If McCain’s camp doesn’t respond, Obama will end up with the final word on this topic.
Purely looking at the marketing play here - this was a very smart reaction on the part of the Obama camp. Online has been a very good friend to this campaign. And make no mistake, it has happened very deliberately by a group of extemely savvy digital and social media marketers.
Like most people in marketing and communications, I’m captivated by the election season. The time, money and STRATEGY thrown into creating an image for a presidential campaign is unparalleled by any other marketing and communications endeavor.
My friend and colleague Shannon Delaney is totally immersed. Of the election season she says “THIS IS MY FOOTBALL.” I couldn’t agree more. (Note: look for a guest editorial from Shannon in the upcoming issue of Direct Magazine; she discusses the good and bad about digital marketing in political campaigns.)
Like every other election, the candidates and their teams hungrily utilize every medium at their disposal to reach the masses. But, in my opinion, the candidates in this election season have done an exceptional job of incorporating emerging marketing into their campaigns - LinkedIn, YouTube, Facebook and even mobile marketing. These are now heavily leveraged alongside other more commonplace digital mediums such as websites, blogs and email marketing.
We all know how powerful social media can be in building reputation. As business and consumer marketers, we see this pretty much every day in campaigns created online for well known brands (and even lesser known brands – which is what makes this medium so powerful). Political marketers understand that these same tactics can be used very successfully to build community, encourage conversation and build relationships that support their campaigns. Both pro and anti candidate messages are fueling an election season like we’ve never seen before.
I could blog for pages about the marketing and PR strategies used to build the images of these candidates, and to deliver and shape their messages. Instead, I’ll just say – take the time to make this election season your football. You just might take away a few tricks to use in your own marketing and communications plans.
As the election heats up … check out these blogs for some political and marketing commentary:
How often is too often to receive email marketing from a trusted company? I get an average of 2-3 emails a week from Books-A-Million. I get nearly one a day from Performance Bicycle. I am tempted to complain. But I do, for the most part, like the emails; I just can’t possibly read them all.
Check it out: The Yellow lines are Performance emails, and the Pink are BAM emails over just the last 6 days.
And here is where I rant …
I am a part of both BAM and Performance Bicycle’s Member Programs, which I think are excellent - they offer great discounts and deals, exclusive offers and even money-back.
For both of these companies I have been a member for over two years. So for two years I’ve received literally HUNDREDS of emails and have opened way less than half of them. In fact, I am getting increasingly annoyed by their messages because they are so often the same.
There is almost never a NEW incentive for me to open the email message and thus build a relationship with their brand and ultimately purchase more of their product. I’ve learned over the years that it’s going to be “Bargain Prices” at BAM and a “$10 off coupon”, or a discount on Joe Muggs coffee beans.
Performace is perhaps a little less predictable, they’ll often annouce their sales and I’ve found some great deals. They just come SO OFTEN that they stop feeling “special.” Can they really have a “Blowout Sale” every week?
WHAT COULD MAKE THIS BETTER?
I’ve had many conversations with people on this topic, including Shannon Delaney, Engauge Digital’s VP of Client Services. The point she often makes is that so many companies collect information from their members (preferences, if you will). But they do nothing with that information. Both of these companies have the potential to make me more loyal (and to buy more of their product) by simply talking to me like an individual, not a group email list.
Let’s use Performance as an example. They could collect information on how frequently I like to receive emails (once every two weeks is plenty), what my cycling interests are (road biking, mountain biking), and what I’m most interested in hearing about from them (special events, big sales, info/sales on products that fit my cycling needs). They could then turn that information into action by delivering me only the content that is meaningful to me.
Sounds simple, right? Everyone’s doing this right? No (obviously not - and BAM and Performace are only two examples, I could go on and on). Shannon tells me it isn’t always that easy, especially when dealing with large companies. Sometimes that data is spread over several systems. Or, large companies have a hard time changing process to turn collected data into an actionable strategy.
Still, how long can I excuse BAM and Performance? After years of email marketing - and at a time when social marketing is making targeted email messages even more important - it’s time to get smart about how to use this medium.
I have officially noticed something about the way I use Facebook since I started using the “new Facebook.” I’m wondering if anyone else is experiencing what I am.
First things first, I think the new design is aesthetically very pleasing. That’s not my issue.
What I’ve noticed is the way I use it now. With the “old Facebook” I’d regularly glance at the consolidated list of Status Updates on the main page, and actually found that I kept up with friends far more than I would normally, just by looking at those updates. Now, though, I never click on the Status Updates tab where that consolidated list lives. For some reason, that extra click is one step too much for me.
Another thing I noticed is that I have virtually stopped using my applications. I have all kinds of applications that I used to visit fairly regularly (Pieces of Flair!). But, I noticed today that I haven’t looked at any of them in weeks. And I have no desire to click around to use them.
How I use the new Facebook: Primarily, I log onto the main page and click on any interesting updates from my friends under the News Feed, such as new pictures, comments on pictures, or if I’m feeling ambitious - locating status updates in the long News Feed list.
As a marketer, the first thing that springs to mind is – if I’m not the only one, and this is a trend for Facebook usage, how will this design impact the way that brands market through custom applications?
How do you make a purchase? If you’re anything like me, sometimes you have an idea of what you’re looking for, and other times you’re simply shopping with friends/family for the sheer joy of the experience. This pattern of buying isn’t really much different than it was 10 years ago - you buy what you need, and sometimes you indulge.
What IS different is how we make our final purchases today. The Internet plays a huge role. We’re highly informed consumers, researching our purchases heavily. We review forums, blogs and product reviews, and we comparison shop. Then, we refine our final purchase by locating the best place, on or offline, to make our purchase. More and more frequently, though, these final purchases are occurring online.
But something is still missing from the ecommerce experience.
ENTER SOCIAL COMMERCE
Engauge’s VP of Strategy, Raghu Kakarala, and Andrew Knight, the Director of Ecommerce at Astral Brands (the company behind Aloette cosmetics and Pür Minerals) recently spoke at an event on the topic of “Social Commerce.” I’d like to share some of the great information that came from this presentation, titled “Social Commerce: The Changing Face of Online Shopping.”
It began like this: the Internet has done an excellent job of allowing us to buy online. But in many cases, websites are missing the part that allows you the shop online. Important and powerful emotional motivators are absent - such as being around others while you shop, asking for advice from your friends, seeing your purchases as they are in the real world, and just plain having fun - the SOCIAL elements of shopping.
Engage with Your Audience
In the presentation, Raghu and Andrew each shared trends taking hold in ecommerce that are finally beginning to catering to the way consumers like to shop. Andrew shared how he was able to tap into the power of niche blogs to promote new products from Aloette cosmetics. He went where his audience was - popular cosmetics and beauty blogs with passionate people behind them. He shared Aloette products with them and hoped they would review them. And they did.
Andrew also discussed the tremendous strides reviews have made - such as with NewEgg.com. This little known website has a large an loyal following - raking in $1.9 Billion in online sales in 2007! Not only are they’re sales strong, their service is impecible - 20,000 service reviews equate to a lifetime review score of 9.8! NewEgg capitalized on this popularity by launching a community - Eggxpert (cute right?) that already has 60,000 users and 300,000 posts.
In addition, several brands are now offering Q&A, which allows them to actively respond to customer questions about products. Such as Answers Depot from The Home Depot Canada.
What Does the Future of Social Commerce Look Like?
Raghu discussed powerful new trends taking hold in some industries, which could - and possibly should - represent the future of online shopping. The fashion industry, for example, is an early adopter of many of these trends. Raghu shared several websites that showcase exactly what social commerce is all about.
ShopStyle represents a trend that many brands would be wise to consider. They developed a community that allows people to create “looks” based on their interests or the look of a celebrity. Then, people who like their looks can “follow” them. It’s not unusual for a ShopStyle user to have HUNDREDS of looks and an equal amount of followers.
Simply mouseover an accessory on a user’s “look” and you’ll get a snapshot view of where the product is for sale. Click on it and you’ll be taken there.
Raghu also shared a nifty application called Clavardon that allows for collaborative shopping. Simply, you go to their website, key in the URL of the website where you wish to shop, invite your friends, and you’re there - with a chat window above the webpage that allows you to collaborate on the shopping excursion with the friend or friends of your choice.
GRAVY
Just for gravy, I also wanted to share a website that Raghu covered that highlights the many aspects of Social Commerce. It’s not all about the interaction with others, it’s also about trying to mimic a real-life shopping experience. How many times have you looked online for an article of clothing only to find it, lifeless on the page? Then end up leaving and thinking “I have no idea how that would look on me!”?
Without too much complication, Martin + Osa have managed to give you an idea. If you “Shop by Outfit” models actually WEARING the article of clothing turn into video, moving and turning, to give you an idea of how the outfit will sit on the body, how the fabrics lay together, etc.
(Click the image to see what it looks like in motion)
Now, if they could only find models who don’t look so hungry, we’d really be onto something!
I just read a post on The Influencial Marketing Blog called “The 3 Philosophies of Word of Mouth Marketing.” The writer had attended WOMM-U 2008, an event dedicated to the fast-growing branch of marketing, and picked up on some common themes about how WOM was defined. These included:
WOM is a Channel
WOM is an Outcome
WOM is Viral / Buzz
He says “WOM as a channel” would be an excellent way to to describe WOM to traditional marketers who are accustomed to media channels, while”WOM as an outcome” suggests that ultimately WOM is an outcome to all forms of marketing. So in some ways, everything we do stimulates WOM.
The final idea is probably the most common description. “WOM is Viral” suggests that the ultimate purpose of WOM is for messages to go viral. The writer agrues that while this is perhaps the most popular thought, it isn’t necessarily true. He says that viral tends to describe one person passing something to another person, regardless of quality, while in its purest form, WOM is intended to create positive buzz.
Somewhere (I can’t remember where) pointed me to a marketing campaign posted on Ads of the World that is insanely brilliant. It was done in Germany - which should be no surprise, this would never be passable in the US - to promote an action and suspense channel called “13th Street.”
I get the impression you either love or hate this idea. Obviously I think it’s awesome, and so does Jeff Hilimire. But, one of my friends/coworkers pointed out that she would likely have a panic attack if she was exposed to this campaign unknowingly.
They placed a substance that would luminesce in black light on the walls, sink and mirror in a nightclub bathroom in Hamburg. The manner it was applied mimicked that of a crime scene.
Then they timed the traditional lighting in the room to replace with blacklight after a subject entered the room; exposing the “bloodbath” as well as the logo, tagline - See What Others Don’t See - and the web address of the television station.
Check out more pictures here. Talk about thinking outside the box; this is experiential marketing at its best. Maybe not passable in the US, but it definitely makes you think about what’s possible.
At Spunlogic, we have a lot of great experience and unique ideas to share. From work with clients to new approaches and trends, in this award winning blog you'll find Spunlogic experts sharing their opinions and ideas on all aspects of interactive marketing.
