January 31, 2006

"Who are you wearing?"

Have you had it up to here with Red Carpets? I know that I have.

It seems to me that they trivialize movies and the incredible impact that movies can have.

The "E!" Entertainment factor of movies is important, to be sure. But what thrills me most is the power of movies to inform, energize, and motivate.

Television multiplied the reach and power of movies by many factors. Decades ago, "Roots" raised the awareness of and dialogue around racism in this country. The series "Holocaust" was seen by one out of every two households in America (and it was telecast in Germany and throughout Europe) with profound effect.

This past year, "Syriana," "Good Night, and Good Luck," and even "Crash" brought to us an awareness of issues that we otherwise simply might never have confronted. They've got "content." And, to be sure, content is king.

Tonight, the major networks - and some other channels - pre-empted their regularly scheduled programs for the State of the Union Address. Why, then, don't they pre-empt programs on a regular basis for other programming that addresses substantial issues? How can we squander the attention of so many American households and not give them the opportunity to be challenged, inspired, informed, and provoked by consequential issues?

"Not good box office?"

I'll tell you what's "not good box office."

It's not good box office when - out of ignorance - we run out of fossil fuels....when the avian bird flu spreads...when Katrina victims are not helped...when we ignore the AIDS epidemic in Africa...when we don't fix our healthcare system...when our educational system continues to fall behind that of other developed nations...and so it goes.

I'm not saying we're the only ones with challenges. I'm saying that communications - movies, television, radio, music, etc. - can help us with our challenges. And the media need to dedicate the time and resources to doing so.

The relevant question isn't "Who are you wearing?" It's "What are you doing to make this a better place?"

It seems to me that those of us with some skills in communications need to be addressing the right question.

Today isn't George Bush's day. It's George Clooney's day.

George Clooney was nominated as best supporting actor in "Syriana," and as director and co-writer of "Good Night, and Good Luck." He can certainly look back on the year and say he made a difference. It's virtually impossible to view those two movies and not be deeply affected.

Interestingly, "Good Night, and Good Luck" has heroes and villains, whereas there are no heroes in "Syriana." Everyone is corrupt in a way. The lines are so much blurrier. Such a clear reflection of how times have changed. Black and white, no longer operable. Everything, more layered, more complex, more multi-faceted. So much more difficult to find one's compass. So much more important to do so.

We are blessed to have the skills that we possess. How, then, shall we use them?

January 28, 2006

clk, Tell me about the Top Shop. I'm intrigued!

Psst, Pass it on!

Inevitably, surveys shows that people make the buying decisions they make because of "word-of-mouth."

Many marketers ignore that information and continue to sell their products and services the old-fashioned way. They figure that if they can convince customers to buy, those customers will automatically sell other customers.

There's some truth to that. But it's kind of like simply putting products on the shelves. They may look good and will sell to those who see them. However, they'll sell a whole lot better with some marketing muscle behind them.

'Word-of-mouth' (or 'buzz marketing', etc.) has been getting increasing attention. The Word-of-Mouth Marketing Association even had its own conference last week in Orlando. More than 440 participants packed into sessions on subjects like "Turning Customers into Evangelists" and "How to Create Brand Converts."

Turning customers into fans increasingly involves either more regular communications with them (using a variety of media such as podcasts) or encouraging more interactive communication with them.

The point is that it's a structured, strategic, pro-active effort...rather than the passive hope-they-like-us-and-will-tell-their-friends attitude of the past.

One interesting aspect of buzz marketing, in my opinion, has been the determination that it's best to be straight with consumers. That is, the good buzz marketers who pay individuals to spread the word about products or services tell their reps to identify themselves as being paid to endorse and proselytize. Full disclosure, transparency...call it what you will. Seems like a good idea and reportedly doesn't impede the reps' results.

I don't suppose James Fry will be applying for one of those jobs.

January 25, 2006

Listen Up

Very cool piece on public radio this afternoon. Unfortunately, I heard only a snippet. It was an interview with a man talking about how to communicate with toddlers.

A toddler climbs up a jungle gym and gleefully announces, "Mommy, look at me!" You respond with equal giddyness, almost mirroring his enthusiasm.

Natural and appropriate response, says the expert.

A toddler is having trouble opening a box and is just as excited as he was when he climbed up the jungle gym - (but in a negative way). His high-energy voice reflects his agitation and frustration. You could even say he's having a temper tantrum.

Conventional wisdom has been that mommy says in calm, measured tones. "That's OK. Don't be upset. Let me help you. It's going to be all right." Etc.

Wrong response, says the expert.

The kid is agitated. Show you feel his agitation. Respond with just as much energy as he is expressing. And just as much concern. "Oh my gosh...that is SO frustrating! Don't you hate it when that happens?! I can see you're really upset." [You get the idea.] And THEN come down to the measured tone level and help him solve the problem.

That's the expert's advice.

And it makes sense. Advice like that always reminds me of playing catch. When the ball comes towards you, you catch it by moving your glove in the line of the ball. You go with the ball. Then, when the ball is snugly in your mitt, you take it out and throw it.

Language communications are just the same. To be effective, you've got to "go with the ball" that's thrown at you. If the person is agitated, show that you understand their agitation. Then help them resolve it. If (as in marketing) the person has a need, show that you have clearly understood the need by getting into the emotion of it as well as the fact of it....and then help provide them with a solution.

Often during the day I take note of the extent to which I have listened successfully to others and they, to me. The number of disconnects on both sides can really be a bummer. But identifying them helps me recognize and appreciate more the opportunities for connection and provides lessons that are directly relevant to effective marketing communications.

January 23, 2006

Luxury Marketers Now Listen to Customers

Marketers of luxury goods used to listen only to their muses. Now many of them are listening to their customers, and the results are very strong indeed.

Coach, for example, annually spends more than $3 million researching its customers and testing new products. 80% of its products come to the market pre-tested.

Ermenegildo Zegna, the high-end men's clothing design company, interviews about 1,000 customers every month.

And classic brands like Burberry and Louis Vuitton have successfully updated and expanded their product lines after extensive customer research.

What has been so basic to most other industries is now being adopted by key players in the luxury field.

Meanwhile, these product lines are presented in showplaces that are increasingly fantastic in their design (and cost). The shopping experience is heightened for sure.

But along comes the Spanish clothier Zara which brings upscale apparel to the mass market, and wow what a success they have become. Zara customers visit the store an average of 17 times a year, vs. an industry average of 3-4 visits per year. That's because Zara features new designs twice a week! In fact, nothing stays in a Zara store for more than a month.

So we're seeing two important trends in the luxury market: the increasing commitment to consumer research and the mass marketing of luxury through very clever (and fast-paced) merchandising.

Bottom line is there's much more dependence on smart marketing, not just creative design.

And Speaking of the Rich...

The top 20% earners in our country have increased their share of consumer spending. They now do nearly 40% of the nation's consumer spending, according to a new report. They accounted for 57% of consumer spending on "other lodging" (including hotels and vacation homes), 51% of fees and admissions, 40% of apparel...and on it goes.

Meanwhile, the bottom 20% are spending a lower share of total consumer spending than they were 20 years ago. So much for trickle down economics....a complete sham....or "voodoo economics" as Bush I so accurately put it.

January 20, 2006

The Dream Diluted

We've talked a lot about the impact and effectiveness of appealing to all of the senses in marketing and communications. Failure to do so inevitably dilutes the power of the message.

I thought of this again earlier this week when we were once again denied the sound and the sight and the extraordinary power of the speeches of Dr. Martin Luther King, Jr. We are denied them because his divisive family has held them up in some ridiculous copywrite wrangling that ranks right up there with their milking all the money out of the King Center and demanding $20 million for the sale of his papers (no takers yet).

What they've effectively done is dilute the power of this great leader, arguably the greatest American leader of the 20th century.

Many wonderful films were made with exerpts of Dr. King's speeches. They drove home his message with such force and finality. And now young people are denied any inkling of that message (as relevant today as it was when Dr. King was alive)...and, for those of us who do remember him, the memories become dimmer.

I've always admired the people who fight to keep the memory of the Holocaust alive. There was a time when I foolishly thought "enough already." But now - seeing what has happened with the memories of Dr. King - I recognize and appreciate more than ever how important it is to remind ourselves in the most vivid sensory way possible of these extraordinary people and times in our history. The Holocaust Museum in Washington certainly appeals to all of the senses. And that helps it be so powerfully effective.

Taylor Branch has just released the third book of his trilogy on the King years. I commend all three to anyone who wants to get close to the experience of that time and that remarkable man. They are "Parting the Waters," "Pillar of Fire," and - most recently - "At Canaan's Edge."

An Atmosphere of Trust

I was thinking today of how important an atmosphere of trust is in the customer experience.

I went to get an MRI. Anticipating that I would be uncomfortable remaining in the same position for a very long time, I asked for a sedative. They told me I would need to have someone drive me home. "No problem," I said, "I'll call someone to get me when you're through."

"How do we know you won't just walk out?" they said. "You need to have someone waiting for you right here right now.


"No way," I said. "Why should I tie up someone's time? They are five minutes away. I'll call them when we're done."

"No," they said, "We need to see the person now."

I told them, "That would be tantamount to you saying you need to see the cash I'm going to pay the bill with right now. You're saying, in effect, that you don't trust me. And I don't want to be here receiving medical services (or any other kind of services) from people who don't trust me."

(I was getting upset and could really use that sedative!!)

Supervisors were called and I was finally allowed to have it my way. That is, to be trusted as a customer.

I had been so relaxed when I came in. Their distrust had upset me. And it made me realize how very important it is to provide a trusting environment....or at least the appearance of a trusting environment.

By "appearance" I mean things like greeters in stores. Are the greeters or security people simply there to keep you honest. Perhaps they're simply there for security, but if we think they're there to be friendly (which we naturally want to believe), then they contribute to an environment of trust.

January 17, 2006

Keeping Customer...REAL Customers

Barry Kalinsky tells me that the average mass retailer gets 30-35% returns. That's astounding. That means that one-third of the merchandise that's bought is returned. What a lot of work!

Returning merchandise is a pain in the neck. But, for many consumers, the act of shopping must be so satisfying that it is more important to them than their need or want for any product itself. So, returns are simply part of their shopping process. Kind of a bulimic mind set, in my opinion.

At Barry's store - Bob Ellis - the returns are only about 5%. I think that's because Bob Ellis sales personnel treat each customer individually and really get to understand what they want and provide it in the most graceful way. It's a treat to watch. And it is so different from the cookie cutter customer treatment one sees at most mass retailers. The Bob Ellis staff focuses on relationships, not transactions. But, believe me, the cash register never stops ringing!

We do a lot of secret shopping and have done so for years. Heck, I almost ended up having to buy a time share condominium once because of the over enthusiasm of my associate during a secret shopping adventure. (But that's a story for another time.)

Typically, secret shopping helps you understand how well customers are handled by your client and their competitors. Are they covering all the key bases...and how well? We typically go that extra step of identifying the extent to which the staff listens to us, picks up on what is most meaningful to us, and treats us individually. And that can make the difference between returns of 35% and 5%.

Breaking the Geek Barrier

There are more and more cool gadgets out there, but the real prize is always going to go to the producer who can make us regular folks feel in control of the gadgets we use. And I think we're going to see much more of that.

Until recently, too much has been geek friendly but regular person intimidating.

Consumers now - more than ever - want to be in control. We want to be treated as individuals (as Bob Ellis so wisely appreciates) and we don't want to be intimidated...by people or by gadgets.

My guess is that we'll see a lot more well designed, smooth functioning, and VERY easy to operate gadgets - even those that converge several media (the big new thing) - and then the boom will truly be a boom.

iPod is the icon. It is the standard. Perhaps it's only the beginning.

January 16, 2006

Products that Tell a Story

As consumers, we want to associate a story with the products we buy...and we want to believe that story. That's how we establish a relationship with the product.

Good bookstores sometimes display hand-written recommendations from staff members. And, when they do, don't you always gravitate to the books that accompany those recommendations?

There was a piece on public radio this weekend about a woman who has a vintage clothing store. She attaches a tag - with a story - onto every garment. She thinks clothes have a distinct energy and distinct personality. That's how she is building powerful customer relationships and fast-growing sales.

Someone gave me some Fiji water for Christmas. I hadn't thought much about Fiji water before. But the bottle is different; the name, exotic; the label, enticing; and it tells a story...of pure water from "an aquifer deep beneath volcanic highlands and pristine tropical forests."

All of this makes for a strong connection with customers....so strong that Fiji sales have soared 61%, while Evian's have declined by 23%.

It's all in the story.

Why Newspapers Matter

There are lots of reasons...even in this Internet world in which we live.

First of all, content matters. And newspapers have the content...hands down.

Second of all, newspapers can address issues in greater depth. The Times' series on diabetes has been brilliant and comprehensive at a level not possible in any other medium.

Third, a certain kind of convenience well articulated by Richard Parsons, CEO of AOL Time Warner. Parsons defines what he calls "The Three B's" of why print will remain: beach, bathroom, and bedroom - places where technology and gadgets have yet to gain a foothold.

January 10, 2006

Integrity...Authenticity...We See a Pattern Here

Apparently, the number one word looked up in Merriam-Webster's online dictionary last year was "integrity." It was looked up 7 million times.

Could be there's a heightened interest and concern with integrity, because of the shameless lack of it in some very high places.

This boxes with the concerns for community that Rev. Gomes has written about and our frequent mentions of the importance of authenticity in products and marketing.

Phonies need not apply.

I'd say that even GM is victim to this interest in straight talk. The company was trying to bop along with extra high prices and extra deep discounts...kind of a phony way to do business, because it treats customers like dopes or pigeons or whatever. Now, on the edge of bankruptcy, the big auto maker has decided to reduce sticker prices and provide less deep discounts.

Uh, have you thought of improving the quality and look of the cars and selling them at a fair price with only modest negotiating room?

Have you thought of providing cars that people really want? Have you thought of getting rid of discursive line extensions?

"As GM goes, so goes the US economy," they used to say. Maybe then. Certainly not now.

Think about a car with integrity and authenticity.

What are you thinking of?

I'll bet it isn't made by GM.

January 9, 2006

"Surprise Your Customers!"

As I recall, that's one of the admonitions in Selling the Invisible, a very good book that I haven't read in some time.

West Hereford was discussing with me today that well-known consumer journey from awareness to loyalty. We all seek to address successfully every step along that journey, so that we can ultimately earn the loyalty of our customers.

"Surprising" customers is a great way to move more quickly toward loyalty.

On Saturday, I had a personal experience with surprise.

For many, many years one of Charleston's finest antique stores - named for its legendary founder, Jack Patla - has had a small coach and eight horses in the front window. They were made a very long time ago by Britains, the famous manufacturer of toy lead soldiers.

Mr. Patla considered this coach and horses to be a good luck charm, so he never wanted to sell it, even though I tried many times to buy it, since I have a small collection of Britains from my childhood.

His successor at the shop - Peter Loda - also has viewed the coach and horses as a good luck charm, especially since they were so viewed by dear Mr. Patla.

Nevertheless, from time to time, I have asked Peter if he would sell them. He has very nicely said "No," adding that if he ever did sell them he would sell them to me.

Saturday, I noticed that one horseman had lost his head and some of the horses were lying on their side. So I went into the store and joked with Peter that maybe it was time to sell them. He looked carefully at them, remarked that they were indeed dusty, and took them out of the window.

I had never seen them out of the window, and that was quite an event in and of itself.

But then he began to wrap them up. "Are you selling them to me?" I asked in astonishment. "If so, what is the price?"

"No," he said. "I am giving them to you. You have always wanted them. I think they should have a good home. And I know you will give them a good home."

I was speechless. This was such an extraordinary gesture. Such a grand surprise. Such an affirmation that there are wonderfully generous souls in this world even today. And such a tribute not only to Peter but also to Jack Patla who I think would smile with pride that he had passed his store on to someone of such remarkable character.

January 6, 2006

What's Up with Teens

Matt Mantey passed along a great article from iMedia Connection. Stella Grizont profiles today's teen market, showing how it is the same as it always was, AND how it's different. And, it's different in some important - and encouraging - ways.

One of my favorite books is Peter Gomes' "The Good Book," in which he reviews what the Bible really says about issues like the role of women, slavery, and homosexuality. He intelligently, rationally, and totally debunks the myths perpetrated by the so-called Christian right. (Rev. Gomes is an Episcopalian minister.)

After 9/11, Rev. Gomes wrote another book called "The Good Life," in which he described numerous conversations with young people in America. Most were college students. He was tremendously impressed and optimistic about their sense of responsibility in our world and their commitment to make our world a better place.

I thought of that as I read Stella Grizont's piece. She wrote, "What particularly explains how this generation of teens differs are their core values, creativity, global citizenship and responsibility, and control. It's these values that will endure and continue to affect marketing as they grow up." I find that wonderfully encouraging.

Grizant goes on to tout the importance of authenticity to teens. And, of course, this is something we've been talking about vis a vis all market segments. Authenticity has never been more relevant. Says Grizont about teens, "Their BS meter is a result of formal operational thinking and their social development. As they're struggling to figure it all out, and experimenting with new experiences, teens just need your brand to be straight-up."

Good advice for any brand seeking any market.

January 5, 2006

With $2.5 Million, You Get Eggroll

Apparently, ABC is selling 30-second Super Bowl spots for $2.5 million and more. (Who says the 30-second spot is dead!!)

Naturally, you get a lot more than a spot for that money. You get people talking about the spot.

All those TV/cable/Internet features on Super Bowl spots...print media converage...and endless blogs, chatrooms, etc. add so much muscle and staying power to Super Bowl spots that the actual air time is relatively insignificant. There are fewer and fewer venues in which an advertiser can make a big splash. The Super Bowl is still one of them.

Internet Sales Records Over Holidays

There's lots of interesting take-aways from this year's boom in holiday sales over the Internet.

It was a record year. Online consumer spending topped the 2004 holiday season by 25-30%, depending upon your research resource. In fact, online purchases accounted for 27% of holiday spending.

I find four aspects of this year's online sales especially interesting:

First, people shopped later both online and offline. That's a harbinger of even closer-in decision-making periods for vacation travel and other purchasing decisions...so that affects virtually everyone's media planning.

Second, many major retail sites were significantly improved this year, resulting in much stronger sales. Wal-Mart did an especially good job improving their site and ended up the number three best selling site of the season (behind Amazon and eBay). Raising the bar in site design and functionality means that those who don't stay competitive will fall way behind.

Third, free shipping is a major incentive offered by online retailers. L.L. Bean, for example, credits free shipping with the fact that - for the first time - their site generated more revenue than was generated by phone orders to their catalogue. (79% of online retailers offered free shipping.)

Fourth, I think that the increase in online sales is, in part attributable to people feeling increasingly time-starved. Convenience means more today than it meant last year. And that means we all need to think of ways in which our product or service responds to this trend.

January 4, 2006

Not Since Dewey Beat Truman

The horrible snafu in many morning papers today reported that all but one of the trapped miners was alive.

Go to the web or turn on any broadcast media, and you found out that - in fact - all but one had died.

In media terms, it glaringly demonstrated the plight of newspapers trying to stay relevant in terms of being current. Personally, I see that as a lost battle; the great value of newspapers can and should be in the depth of their reporting and the intelligence of their opinion pieces. What has traditionally been the 'back of the paper' now needs to take center stage.

Unfortunately, some papers are facing their economic woes by cutting costs and reducing the quality of their product...which only makes them even less relevant.

Can You Hear Me Now?

New York Magazine recently highlighted some of the non-traditional ways advertisers can reach their targets. They included sidewalk chalking ($150 to $350 per image per day), mobile billboard trucks ($5,000 per 50-hour week), subway cars ($44,000 to cover 25% of a train's interior ad spaces), digital subway-entrance ads ($274,000 for six ten-second spots every minute on each of the city's 80 digital displays), and naming rights to the new Jets-Giants stadium (at least a $12 million one-time cost).

These are just tip-of-the-iceberg alternative media vehicles. Wanna get real creative, check out things with our media director Michelle Evans. The endless ideas astound and envigorate me.

Super Luxury on Its Way

Sally Horchow's article on shopping in Las Vegas talks about all the wall-to-wall luxury (multiple Vuitton stores, Gucci stores, Prada stores, etc.). Trend spotters say that super luxury will really break out this year.

After all, if the masses are basking in what we have all come to think of as "luxury," then the bar needs to be raised higher.

And it will be.

Look for even more expensive fashion, travel, and resort products and services, as well as much higher-end cars, watches and other 'toys.'

I heard a couple in Italy saying how fortunate they were to have found a room in a particular luxury hotel for only $2,500. Were they kidding? No.

The high end is getting much, much higher. A real opportunity for luxury marketers.

January 3, 2006

We're back from Palau where we had a first-hand experience with great customer service. We had chartered a boat for several days, but there were some problems and we cancelled that part of the trip after paying for it in full. When we explained the situation to the general manager of the tour company the next day, he offered to refund the entire payment, including a deposit made almost one year ago.

By doing so, he chose to ignore a strict cancellation policy. But he made an advocate for his company, and he wisely recognized that advocates are worth gold especially in today's media-cluttered world.

After preaching great customer service all year long, it feels wonderful to take a vacation and actually be the recipient of it.

Shopping Sense

Sally Horchow knows a thing or three about shopping. After all, her father is the legendary Roger Horchow. Her Times article about shopping in Las Vegas reminds me how important all of the senses are to the shopping experience.

Having traipsed through many a Vegas shopping spot (and there are LOTS of them), she ends up at Steve Wynn's new Wynn Resort. She was tired and her feet ached. So, what did that master marketer Steve Wynn greet her with? "The comfort of the plush, parasol-patterned carpet." Sally was in heaven. And, why did she make a major purchase at Wynn's Louis Vuitton Shop, having passed by two other Vuitton shops in other locales? "Because of these serene surroundings, the perfectly controlled mild temperature, and the relative comfort of th the carpeted floor."

It seems as though products - no matter what they are - almost become commodities. What we all buy is the sensory experience that surrounds them.

Book Smarts

I was interested to read that the sales of business books have been declining. And many of today's best-selling business books are titles that have been around for some time (like Good to Great and Who Moved My Cheese?).

There are still a bunch of helpful reads out there for marketing insights. The latest one I've read was touted by the Booz Allen publication as the best marketing book of 2005. It's ProfitBrand by Nick Wreden. And, like so many other business books, it has a plain-vanilla subtitle: How to Increase the Profitability, Accountability & Sustainability of Brands.

Most of this book is about analyzing the profitability (or potential profitability) of your various customer segments and then marketing to those segments in ways that will resonate most powerfully with them. Saying we've moved from a customer economy to a demand economy, Wreden presents a coherent picture of today's marketing landscape. He says that our target is no longer market segments, but profitable customers; that customer insight is no longer databases and analysis, but customer collaboration.

Indeed, we do not define our brands. Our customers do.