I attend the Online Marketing Summit (OMS) in Chicago this week and discovered something interesting. Not surprising, but a theme. And that theme was numbers. Math, measurement, and analytics.

The first year of OMS in Chicago three years ago, the theme focused on the user experience. Web usability, email marketability, engagement...etc. Some discussions of measurement. This year, every session, and every speaker discussed applications for measurement, scoring, segmentation, even cohorts. I felt like I was back at The NPD Group discussing research operations.

This theme has been widely supported for those keeping up with marketing news. C-level's demanding ...<< MORE >>

I am compelled to comment on an article in Marketing Charts ‘Social Media Generates Hype; Fails to Deliver Marketing Punch’ because comments in the article underscore the problems organizations have harnessing the power of social media.

Some excerpts:

* Despite its popularity, socnet platforms - including Facebook, Twitter and the like - have failed to demonstrate prowess as marketing tools, and possibly never will.
* “Obviously, a lot of people are using social media, but they are not explicitly turning to it for marketing purposes, or for finding out what products to buy.
* “[Twitter is] more of a media ...<< MORE >>

“So, I’m not sure I get all this blog, Twitter, and Facebook stuff. How do I use it?” is a question I have been asked very often lately, to which I respond “well isn’t that the question of the day”. You’re in a cave if you have not heard enough and too much about Twitter, especially as a marketer. (As a side-note, should Web 2.0 at this point be Web 2.5?)

If you are in my shoes, how do you respond to the question? The first question back should ALWAYS be 'What are your objectives'. Then, how can social media tools help you as part of your integrated marketing plan.  Many people miss that first part. If you do not start there you’ll end up chasing tactics with no purpose. Then later your company thinks ‘Gee, that didn’t really do anything. Did we measure it’? How can you measure something that didn’t have an objective to start?

In a prior post I discuss how marketing is too tactical; and, I read with interest articles about companies scrambling to get into social media only to claim ‘it’s not working’. Chase tactics, you’ll chase your tail. Chase objectives and you’ll move the organization. So here are some suggestions for incorporating social media:

One: Ask yourself, what am I trying to achieve? Feedback? Word of mouth? Referrals? Top-of-mind? Lead-Gen?

Second: Can social media help you in your marketing ‘toolkit’ to get there?

Third: Shape your social media tactic to get there. For instance, if an objective is to stay Top-of-Mind, write a blog and push it out to your network/prospects. But don’t cry if people don’t start calling. A blog for purposes of staying top-of-mind is not lead generation. However, if your goal is lead gen then your blog and/social media tactics would take different variation including some type of offer. But if you do that, don’t cry if people say you’re ‘too salesy’. Well, that is the subtle purpose of lead generation.

Fourth: Rome wasn’t built in a day (but it is one of my favorite cities). It takes time to build a relationship. Social media is basically one big relationship (and helps word of mouth marketing).  

What do you think?
Jackie

        

A follow-up to a prior post about Abercrombie & Fitch’s brand pricing strategy for the holiday season: In a nut-shell, Abercrombie was not going to play the game of deep discounting like their competitors. They were hoping to gain long-term brand impact by maintaining their prices. I had many comments on that blog-post. Most agreed the short-term hit would help their long-term brand image.

In the Wall Street Journal on February 14^th (happy belated Valentines’ day) is the article ‘Abercrombie Profit Drops 68%’. They had to reduce prices as much as 90% in January to clear inventory’. That isn't really a surprise. Unless they were really obtuse, they had to know that would happen in this economy. The WSJ article goes on to say Abercrombie’s CEO referred to the fourth quarter as ‘a nightmare that included unprecedented promotional activity by other retailers’.  HUH? While I applauded his guts to hold firm, what planet was he on not to expect this short-term hit? When managing for long-term profit, you can expect a hit in volume.

This will sound so text-bookie, but a review of three factors that influence the demand curve, or shifts in demand, simplifies the issue: 1) Consumer Tastes. Let’s assume that didn’t change. 2) Available substitutes. They were beat here with many choices. 3) Consumer Income. Hmmmm. This is a no-brainer as consumers traded down.

I’m no financial genius but I'm sure they realized when managing for long-term profit, you can expect a hit in volume. The long-term strategy makes sense if consumers find  value in the brand. I wonder if they considered that before stocking the shelves with holiday inventory. Maybe they were hopeful. Maybe they had their head in the sand. Maybe it’s just the ‘Brand Bubble’…(more on that later).

Would love to hear your comments.

Jackie

        

 I feel compelled to comment on one of the misses of the Superbowl. That expensive, glitzy, funny, SoBe half-time commercial. Remember it? The guys dancing around in boxers and turning into lizards. Makes one want to run out and grab a SoBe? Not really. I still don't know why I should buy SoBe. What makes it better than Naked Juice (that's a plug for John) or just water for gosh sakes. I asked my college students about it.  Reaction: It was hilarious. So funny. Great commercial. So, I ask, "Do you drink SoBe"? A resounding "No, it's terrible". I prod, "Will that commercial make you want to try it again"? Again 100% said "No way". Classic example of a blown opportunity where a myopic marketing department would have been better served explaining what makes SoBe different or great or just why someone would want to try it. Differentiation.

I teach differentiation in Marketing 301 (aka 101). It should be the foundation of ANY company or brand marketing and communication. And it's not a new concept, right? I think classic CPG companies get it. Most others, maybe not so much. Try this: Go to your company's website. Then go to a handful of your competitor's websites. On the homepage, do you see how you are different? Does everyone say the same thing? Can you even find a solid positioning or differentiation on the homepage? And an you figure it out in 12 to 15 seconds? Don't think a customer or prospect will waste time trying to figure it out. If you can say, "Yes, we do this well, you may be in the minority".

I realize how difficult it is to get inside the head of a customer and discover why they buy from your organization or why they buy your product. Clients I work with easily discuss their features and what they think to be benefits. But it's difficult to get their arms around the one unique "Whats in it for me" factor for customers. The WIFM. I helped a client do inexpensive research to figure this out and what clients said was different than what the company thought to be their differentiation.

When you realize the one thing that is relevant with customers, get a great writer to put it in words and communicate it all the time. Be consistent and make sure your customers and prospects know it. Make sure your employees know it. Push back on your web firm or the creative department who would rather make this subtle. Then measure it please. And continually validate that you are delivering.

I'm passionate about this topic and process. Would love to know your thoughts or help if you need it.

Jackie

        

I made an observation this holiday season which I’m sure many others have as well. Email special offers GALORE. Lots of them. Often. And they get better everyday. First 20% off. Then 30% off. Then 50% off. And today…60% off. Wow. The interesting thing to me is how it has been the same story across many retailers, these three being ones I shop regularly: Banana Republic, J. Crew, New York and Company, and Victoria Secret. (Being somewhat clothing obsessed this is focused on clothing retailers).

This situation is not a surprise this year. The media told us to expect deep discounting. Retailers announced it themselves. All retailers but one: Abercrombie & Fitch. I was surprised to read in the Wall Street Journal a while ago:  Abercrombie Fights Discount Tide Clothing Retailer Accepts Lower Sales in Its Strategy to Protect Margins and Hip Reputation. This is a rather bold move when the economy suggests otherwise. Imagine being the CEO making the call. The economy is down, consumer discretionary income is shrinking, and our competition will be out in full force discounting to drive sales. Short-term decision making would scream the need to follow-suite to maintain share and move inventory. I applaud Abercrombie for holding ground on the profit line. We know the business principal that in the short-term, you cannot grow market share and profit at the same time (not including a decline in CGS). At Frito-Lay I had to know which ‘mode’ we were in: Profit mode, or share mode and determine my pricing/promotion strategy.

I will be very interested to see the long-term impact on the Abercrombie Brand. Consumers become accustomed to promotional discount strategies which decreases brand value over time. I no longer pay full price at J. Crew or Banana Republic, two of my favorite stores. I know their clothes will ALWAYS go on sale. I had this discussion with some friends who do the same. Abercrombie surely is taking a hit in sales in the short-term; but this will be a great case study over time to see if the strategy pays-off in profit and strength of the brand. How well do they know their customers? Naturally, hindsight will make the CEO lauded or chastised. And the only unfortunate issue for me is that my niece wants Abercrombie clothes for Christmas. So of course I paid…full price.

What do you think of the Abercrombie & Fitch strategy?

 

        

Most people I talk to agree given the media hammering of pre and post election coverage and the doom-and-gloom economic coverage. Is there a silver lining? Maybe not for Financial Advisors, Investment Bankers, or Automotive Executives:), but I’m going to look on the bright side. << MORE >>

Whether you're a Stephen Colbert fan or not, marketers have to love his interview with Lucas Conley, the author of 'Obsessive Branding Disorder'. I have not read his book, but his point about branding gone wild is valid. And the interview is very entertaining (like a marketing private joke). View the Colbert Report clip at http://www.comedycentral.com/colbertreport/videos.jhtml?videoId=178712

While the examples in the interview are exaggerated, what I gather from the interview is that Conley argues the problem with many brands today, or co-brands, is they don't make a lot of strategic sense. Brands need to get back to basics, remember what they stand for, who is the target audience, and strategically move forward with that in mind. Be relevant to your audience and relevant to your positioning.

I believe this problem can get out of hand for the same reason marketing gets tactical (per an earlier blog article). Lets think 'out of the box'. New ideas. Capitalize on new media. Get the brand 'out-there'. And the problem is reinforced when creative ideas are rewarded without making sure the creative idea will help achieve objectives. Here is my favorite example:

I love Sephora (www.sephora.com ). I haven't met a woman who doesn't (sorry guys...but keep in mind as a gift for the ladies). Sephora has a deal with JC Penny and has Sephora stores in the JC Penny stores. I'm sure JC Penny was looking for a way to improve their cosmetic section and drive women to their stores. And for Sephora, a new distribution channel. But it isn't 'on-brand' in my opinion.

Sephora's strength is the huge, huge, huge selection of premium brand cosmetics. And the employees are always so friendly. However, their stores in JC Penny carry a limited selection (I was told only 20% of their items). And JC Penny is NOT a premium retailer. Ulta would make more sense in JC Penny. I never buy cosmetics at the JC Penny near my house because that Sephora doesn't stock the items I like or need. I end up going elsewhere because I do not have a Sephora close to my house. (Please Sephora, open a store at the 'Shops in Burr Ridge').   

Perhaps Sephora gets a bump from JC Penny customers; but at their prices, it seems limiting. And certainly not 'on-brand'.

Same concept has implications for your brand online. This means ensuring your web alliances and partnerships match-up to the essence of your brand. If the goal of your website is to be a ‘portal’ or destination, make sure you have thought through your objective and the positioning of the site. Do your partners, alliances, and links sync-up? Any disconnects? Does the content on your site support your brand’s objective and positioning? What content is filler and taking up space (and someone’s time)? Make sure every piece of real estate on your website has a purpose: A critical purpose versus just nice-to-have. Chance is those ‘nice to have’ items are leading your customers and prospects down the wrong path. It may be difficult to get them back.

Always be relevant to your brand, your target audience, and your marketing objectives.

I'd like to hear comments on similar experiences.

P.S.: I told my husband I would give credit to him for finding this interview and sharing it with me.

        

This weekend, I had a really extraordinary experience at the Starbucks in my little town of Lemont, IL. I may be going a bit off topic here, but I have to tell everyone. I love the Starbucks in Lemont. The people seem to genuinely enjoy working there and are always a pleasure. So much so, that a few months ago, the Chicago Tribune published my quote in the Thursday ‘At Play’ section in the ‘Love/Hate’ column.<< MORE >>

This has been a really busy summer. So, instead of my usual 'business book' reading, I've embarked on a guilty pleasure...reading the 'Twilight' book series. My experience getting caught up in this vampire soap opera made me think of how the success of this book has been perfectly viral. And a nice example of remembering to find your customer enthusiasts and help them refer your product or service. Even reward them.

I've been talking all about this book to my friends and family so now most of them are reading the books and are hooked. (I think I created our own Edward Cullen fan club...but I regress). Perfect example of what customer enthusiasts can do to expand your business. And granted it's probably easier with a product so engaging (and passionate like the Cullen family of vampires...and don't even get me started on the Goo Goo Dolls). What about a business that might not be so engaging, especially in B2B.   What about those enthusiasts who are not so open, or confident, to share? You may need to work harder to help these people pass the word. They need more incentive to think about your company.

It isn't enough to just ask to 'refer a friend'. I haven't found that to be successful for clients unless linked to an incentive. Perhaps you do have a program to incent customers to refer friends. If not, why not pass along a special incentive that they can send to their friends or co-workers. Don't forget the part about the incentive for the friend to make a purchase or set a meeting. You'll need offers on both sides to maximize results. For marketers, we know this stuff. But not many are actually doing it. Thus the fuss about word of mouth and viral marketing. Referral programs are something we can develop to assist the WOM and viral marketing efforts.

And a suggestion on the offer: Try not to use dollars off as an incentive for new business (for the 'referees' in this case). Dollars off might work with current customers who are committed to your product or company, but they rarely work for someone not convinced yet. Think of building trial and minimizing risk with that group.

Marketing Sherpa has a nice case about a successful referral program. I want to share because it's simple, gets at marketing basics, and is completely relevant to the target customer: http://www.marketingsherpa.com/article.php?ident=30752&pop=no

If something like this doesn't work, well perhaps your own customers are not totally convinced. Then you may have a product or service problem. That's another issue.

Let me know if you have similar examples of what worked or doesn't. My DePaul students love to hear real stories.
Jackie