Thursday, February 26, 2009

This is your Brain on Drugs

Anyone growing up in the 1980s should remember this anti-narcotics campaign by the Partnership for a Drug-free America (PDFA). The campaign used the analogy that if a person’s brain is an egg, then using drugs would be like frying it. Now doctors and health advisors are telling us that cell phone use is frying our brains.

Although being addicted to drugs is quite different than being addicted to your cell phone, the comparison seems to fit these days since you hear about how many car crashes and other accidents happen because people couldn’t put their phone down and simply drive.

Luckily, laws in certain states prohibit people from talking on their phones while driving, but texting is another dangerous distraction that should be noted as well. I can’t tell you how many times people walk directly into me simply because they are glued to their phone and texting away. Despite the negativity of texting on cell phones, Christopher Nickson, recently wrote an article called Believe It or Not, Texting Could Improve Language Skills that touts a recent study which says texting actually has benefits. Besides being an instant way to communicate with friends and family, the study from Coventry University in England proclaims that “textisms” or texting improves language skills and positively affects reading development in kids. "Children's use of textisms is not only positively associated with word reading ability, but it may be contributing to reading development," the study reads.

Cell phones are a constant companion for many people today. It has become the must-have device for communicating, finding locations, searching, booking reservations, shopping and of course, instant messaging. Besides adults having cell phones, it is now the norm for children to have them too. It seems far-fetched to say that texting furthers child development, but in this networked society it will be the norm for people of all ages to be tech savvy with their televisions, computers and mobile phones. It will be interesting to see if companies and marketers will alter their marketing messages to the younger generations knowing that they have a mobile device and are early adopters when it comes to new gadgets and technology. It also raises the question to many parents as to what is the appropriate age to give their kid a cell phone and when to say enough is enough! The old saying “my kid has a cell phone for safety reasons” is truly antiquated.


Wednesday, February 25, 2009

Raise your hand if you participate in social networking

In this fast-paced networked society that we now live in, it seems as though you are a lost soul if you are not participating in one way or another.

Just in case you thought that only teenagers and people with ample time on their hands participate, you are wrong. In fact, Forrester recently published a report that explains that buyers in the business-to-business sector are one of the most active groups of people when it comes to social participation.

Josh Bernoff, an active blogger on The Groundswell, published a few important nuggets from the report that everyone should take note of. In The Social Technographics of Business Buyers, a recent Forrester Research study that surveyed more than 1,200 business technology buyers, found that they exceed all previous benchmarks for social participation. Based on methods and tools that Forrester created and uses such as the POST method and the Social Technographics Profile, it is able to ask how people participate in various social technologies and whether they use them to make buying decisions.



Specifically for this chart, which examines the social technology profile for business technology buyers, the results indicate that the audience is involved and engaged in the social networking space. The key points are that 91% were Spectators, 55% were joiners in social networks, 43% are creating media and 58% are critics.

What does this information mean and why is it useful to companies and marketers? Ultimately, it means that these businesspeople are participating by reading blogs, watching user generated videos, joining social network groups, commenting on articles, uploading content and videos, and so on. So companies and marketers must be aware of the levels of audience participation and knowledgeable about what activities work best in order to reach a specific segment or audience. Participating in social networks is not just for teenagers and college students. Mature businesspeople and decision makers are using social technologies and they will continue to do so in the future.

For more information about what these terms mean or to see what your customers, family or friends social profiles are check out Forrester’s Social Technology Profile Tool. This is a free tool that allows you to see how participation varies among different groups of consumers around the world. Ultimately, this information can be used as a guide to figure out what kind of relationship is best to build with customers or the end users.

Tuesday, February 24, 2009

Vicky Else gives her insights on how the face of research has changed

I am very excited that Vicky Else, President of The Market Artist agreed to do a Q&A for my blog. Vicky Else has worked in marketing and relationship marketing for more than twenty years, in both client and agency roles, across a wide range of business-to-business and business-to-consumer industries. Now a consultant, she develops consumer insights and research approaches to support both existing and new business projects. Below you’ll find some key insights on how the face of research has evolved in the digital world.

Although most of us know why research is so important for companies and brands, can you please remind us why conducting research is crucial for brands today?
The consumption of your brand messages, on and offline, can be measured and tracked; in other words, you can use data to describe what is going on. Because there’s so much data nowadays, some people think that’s enough. However, tracking can’t ever tell you why. Why do people like or dislike what you provide? You need to answer that question to figure out what you want to do about the data.

Can you give an example of how insights can help create powerful strategies?
If you don’t know what people want, how they use it, and what might turn them off, how can you create a strategy? An example: one of my clients wanted to revitalize an aging car brand without turning off their older drivers. It’s difficult! How could they appeal to 40-somethings and people over 65? They needed to find the lifestyle and demographic intersection points for their brand audiences. They did make it work, by associating their brand with golf. Golf imagery appealed to the younger set without turning the older set off.

People think about research differently now then they might have in the past. What are some of the new ways that people think about research now?
It still comes down to corporate culture, in my experience. Companies that love to be scientific and careful still do tons of research (e.g., pharma, packaged goods), and those which rely on instinct and aggression are impatient with it (e.g., financial services). A good thing about the digital world is that fast online panel surveys make even the instinct crowd more open to doing some basic research before they leap.

Specifically, what has changed over the years in terms of research and the approach?
It used to be phone surveys, mailed surveys, focus groups, and mall intercepts. You still need those, but now we can do more, much faster using online research. Also, sophisticated analytics have been very helpful to brand research—segmentation techniques can link brand perception to lifestage, attitudes, behavior and demographics, very useful for “one-to-one” types of branding efforts. The ability to efficiently ask questions of people as they shop or browse online is very helpful. You also can recruit a proprietary panel of your customers and run raw new ideas past them; they are biased but the early feedback can keep you from wasting valuable resources. The online world has also spawned new types of research, like eye-tracking and usability studies. I’m sure that mobile platforms are going to add to this list.

What are the negative aspects of these changes?
Speed can make people sloppy and uncreative. Both creativity and analysis take time! When I started out, it was very expensive to do any kind of brand communication, so we did our brainstorming and research homework before we printed mail pieces or shot TV ads. Online, though, you can quickly put out an idea and get hard results to see how it works, so you may not think hard enough about the potential impact on your brand. It’s important not to forego good research; just because you can afford the production cost of a mistake, that doesn’t mean you can afford the brand cost.

Can you give a few guidelines or best practices when trying to figure out the best research strategy to use in this fast-paced digital world?
1. Don’t rush! Fast research only works when the research question is simple. If you just want thumbs up or down, an online panel will probably work for you in four weeks. If you want to learn how to refresh a brand it’s going to take full suite of studies, backed by analysis, which will take at least a year. For everything in between, you need to work with your vendors to decide how much research is enough.

2. The steadier you are about research, the more efficient you can be. Develop a methodology to evaluate your brand messages, and then train your marketers to use it consistently. Your past studies serve as benchmarks, making your process faster and cheaper. Companies that adopt this discipline save big bucks and learn much more.

3. Build efficient ways to do qualitative research into your customer touches. You can squeeze attitudinal questions into online profiles if it doesn’t make them too long, or ask website visitors to fill out quick surveys. Start a proprietary customer panel. Put a survey URL on your packaging. Just keep those why insights flowing.


Victoria Else is not only is a twenty-odd year veteran of the marketing and advertising industries, she also has a very entertaining and witty blog. To learn more about Vicky, check out her blog, Behind the Two-Way Mirror, or her website, The Market Artist.

“Come down from your ivory tower!”

Cried the loyal customer’s and employees of Whole Foods to its CEO. In response, John Mackey, CEO of Whole Foods did just that. The economy has deteriorated, the Whole Foods customers seek lower priced but high quality foods and its employee morale is down. In order to combat these problems, Mackey is taking one step at a time and not only putting his ear to the ground, he is taking action and getting his feet wet. A clear and steadfast step—he is back to blogging. When Janet Paskin interviewed the CEO in the February issue of SmartMoney, she asked him why he was back to blogging. “It’s fun. I really do believe that the 21st century CEO is going to be more accessible and transparent. I can’t just live in an ivory tower and expect to understand what’s going on,” said Mackey.

John Mackey is one of the many CEOs that have learned the benefits of participating in the blogosphere. These forward-thinking CEOs get to understand their customers and appreciate the fact that they’re involved and want to share their ideas. Time and time again, people have demonstrated that they want to share their ideas for products and services. These loyal customers can help the company by eliminating the guesswork. Not sure about a new product or feature? When in doubt, just ask your customers. Additionally, the company can also learn what the competition is doing.

If CEOs choose not to participate in the blogosphere, or don’t do a good job of participating, they are missing out on lucrative opportunities. Why would CEOs not want to get in on the fun? At the Forrester's Marketing Forum in 2008, Forrester Research Chairman and CEO George F. Colony shared the five things he's learned after blogging for just two months. His insights explain why CEOs might be frustrated with the process. Furthermore, his observations may help marketers frame the "should the CEO be blogging" discussion within their own organizations.

George’s top observations include:
1. No one is reading my blog.
2. Posting a blog entry is time consuming and I have to run a company.
3. The blog technology and software sucks.
4. It feels like I am talking into a dark vacated house—no one is there.
5. Where the hell is the money in this thing? Why are we giving all these insights and information away for free?

Check out this video for the full scoop.

Sunday, February 22, 2009

It’s not fitness. It’s Life.

Now say it with a straight face. In case you have not heard or seen this tagline before, it belongs to Equinox. If you have ever entered an Equinox, most likely you will agree that it does not feel like a gym. A soothing and calming spa experience is more like it, which is why my serious, muscular boyfriend won’t join. Additionally, the gym is clean, including the showers, which my classmate Kim has also noted on her blog. Nevertheless, it has all the top-notch equipment, personal trainers, classes and after work social events.

Though the gym has a provocative advertising campaign, it has a keen eye to its members’ lifecycle within the renewal process. The gym has done a great job in communicating with me over the years and ultimately, this has caused me to renew year after year. As a 6-year veteran, I have given free passes to my friends and encouraged them to join. Even though the gym is a pretty penny, it’s worth it because I am doing a good deed for my body. It’s the one hour of the day that I set aside just for me.



Keeping the gym fresh in my mind with new tools and widgets is a smart way that Equinox engages with me throughout the year. Often times, brands do not reach out to customers throughout their lifecycle. This is a big mistake. Once you have a customer’s contact information, email address or birthday, it is so important to use that data in a meaningful way. Equinox does just that. Keeping me posted about new gym openings, sending me coupons, saying happy birthday and informing me about new classes are all positive ways to communicate with me via email. One notable feature that I enjoy using on the website is MYEQ. This section allows me to customize my page with my goals, keep track of my workouts and get access to classes at my specific location. Also, the gym syncs my check in time to this site, which is an added bonus.

Recently, the gym added a mobile feature to its campaign. Equinox gives you just about the same options as the MYEQ website. You can find a club, check your MYEQ calendar, search for a class or book a bike all with your mobile device. I have yet to use this feature but it makes me happy that the gym is being innovative and fresh with their tactics.



It is crucial that brands stay focused on their customer’s needs and the ever-changing marketplace. Interacting with customers on the website, inviting customers to participate through their phone, sending e-newsletters and enticing people with a sexy advertising campaign are just some of the reasons why I think Equinox is on top of its game.

Saturday, February 21, 2009

Success amidst the recession

New start-ups may be moves born of necessity, but in tough economic times, thousands of Americans are taking the bold step of starting their own businesses. In fact, some of the biggest companies in America were born during recessions. Many of the companies that make up the Dow Industrial average were started during a recession or depression, these include: General Electric, Hyatt Corporation, Burger King, FedEx, Microsoft and Target. The list goes on.

Since many companies are struggling to stay afloat in this economy, it makes me wonder what steps they are taking to drive consumers to take action and satisfy the ever-demanding requirement to prove positive ROI. Consumers are focusing on the essentials and less on luxuries, so it seems as though traveling would be out of the question. Right? Well, a few hotel chains have a different story to tell. Marriott, Omni Hotels and Hilton are trying to make it easier for consumers to book reservations. So what is the secret sauce? The hotels are encouraging consumers to book through their mobile device. The hotels have reported that mobile hotel bookings show a positive ROI in this recession.

Although Marriot reported an earnings loss for the fourth quarter, Marriott Mobile generated $2 million in gross revenue between its August 2008 launch and the end of the year. And revenue from mobile bookings in January was headed upward fairly quickly, the hotel chain told Ad Age. The other hotels have similar results that they have shared. Omni Hotels’ mobile site has grown 85% in the past six months and Hilton’s mobile channel has generated a 22% return on investment for the brand.

These hotels might be struggling and cutting budgets across the board but they are willing to invest and experiment with new media which is worth noting in this dismal economy. The chains are using their database and loyalty programs to reach out to customers and let them know they are making booking decisions more convenient. Ultimately, this will allow customers to utilize their time more effectively.

If your travel plans change because of flight delays or bad weather, it will be convenient to make any adjustments with just your mobile phone. Furthermore, the hotel chains are one step ahead of consumers when it comes to a hotel experience. Chris LaRose, who directs Hilton’s website strategy, said the hotel is expected to double its mobile spending this year and invest in ways to get consumers onboard beyond just rooms booking by bringing apps and widgets into the fold. Other initiatives include mobilizing some of the services the hotel offers such as check-ins, arranging room service and booking sightseeing trips -- all in advance of arrival. "We're trying to ... incorporate a more holistic view that Hilton Hotels aren't just guest rooms. It's a stay; it's an experience," Mr. LaRose said.


Friday, February 20, 2009

Shame on You!

Where is Fox 5's Arnold Diaz when you need him?! Apparently he missed an opportunity to interrogate Fortunoff employees to find out why the bankrupt chain won’t accept gift cards. While the store has many locations throughout the Northeast and is the popular “go-to” store for many newlyweds and families, the store filed for bankruptcy protection two weeks ago and just laid off 300 workers. There is still hope for the chain to keep its doors open since its awaiting bids from potential buyers.

Recently, The Daily News reported that Vicki Georgiou, a newlywed, tried to use $1,500 worth of Fortunoff gift cards that she received as wedding gifts. She attempted to use the gift cards at the Westbury, L.I. flagship store but was given the runaround by employees that she could not use them at that time. "They said something about a court order but they wouldn't really explain it to me," she said. The article also stated that a Fortunoff employee told the media the company had "no comment" on the plight of Georgiou and other customers, and the company no longer has a public relations representative.

Customers are outraged at the company. Not only are they upset because they can’t use their gifts cards, but at the fact that the company is not communicating with them. "What bothers me the most is that there is no 'going out of business' sign on the store," Georgiou said, "So unless you know someone who works for Fortunoff, you never would have been aware of what's going on." A longtime customer who even has a Fortunoff credit card, Georgiou said she never received any notice that gift cards were no longer being honored. "I'm a valued customer," she said. "I just don't understand."

Another customer said the Fortunoff at Woodbridge Center in New Jersey also was turning away gift cards. Her parents couldn't use a $60 voucher she got them for Christmas. "Two or three managers came over and said, 'As of today, we're not honoring gift cards,'" said the woman, who gave her name as Colette, "They should have posted something.”

As I have mentioned in previous blogs, customers want to hear from companies and brands in the good times and the bad. Customers get angry and frustrated when they don’t. This is crucial especially when the customers have a credit card for that particular store and are a longtime valued customer. Customers usually have to give up valuable information when they sign up for the credit card, including an email address. Would it have been so hard for the chain to blast an email out to their customers explaining that they wouldn’t be able to use gifts cards until further notice? This seems like a simple task to keep customers at ease and informed as to what they can expect the next time they enter the store.

There is still hope for the chain to survive financially if potential buyers step up to the plate. But at the rate Fortunoff is going, customers are perturbed, likely to remember the bad experience and ultimately, shop at other stores in the future. Often times, your customers are your lifeline to survival.


Thursday, February 19, 2009

Facebook upsets its users. But are the users forgiving them again?

If you logged into Facebook today, it was hard to miss the “Terms of use update” on the homepage. What is even harder to avoid is the multiple requests I got from friends to join the “People Against the new Terms of Service (TOS).” I figured it was in my best interest and duty to learn what the ruckus was about. An article on TechCrunch had an interesting spin on the whole issue and has been following this “news.”

Mark Zuckerberg, founder of Facebook, and team revised Facebook’s term of use hoping to clarify various parts for its users. They had received countless questions and comments about the changes and what they meant for people and their information. Mark told his follwers that it’s a language thing and they did a poor job in explaining the changes. He indicated that those changes will still be coming in the next few weeks, which will inlcude the Facebook user community to make sure it jives with everyone. On Facebook, he says “ Our next version will be a substantial revision from where we are now. It will reflect the principles I described yesterday around how people share and control their information, and it will be written clearly in language everyone can understand. Since this will be the governing document that we’ll all live by, Facebook users will have a lot of input in crafting these terms.” Additionally, the company polled some of its users in news feeds asking them if they should go back to their previous TOS.

Today, Mark invites users to share their thoughts on what should be in the new term in the group called Facebook Bill of Rights and Responsibilties. By the end of Wednesday, this group had 56,517 members who were complaining about all sorts of issues, such as privacy rights, the nature of social apps, legal issues and so on.

This is not the first time Facebook has upset its users. Users definitely recall the Beacon incident which didn’t happen too long ago. Followers of the network seem to forgive the company and use it again and again. Perhaps it is because the company has noted their misakes and are communicating with their audience. Mark and team say they are dedicated to finding a solution to this problem and they intend on leveraging their users to help them get there. Not only does the company have a dialogue with the users, they plan to use that information to proceed. According to Charlene Li and Josh Bernoff in their book Groundswell: Winning in a World Transformed by Social Technologies, Facebook is on target with their thinking and actions. Their strategy is the wave of the future for other companies that are looking to succeed with social networks. Facebook is reaching out to their customers, asking for their input, listening to the concerns and then, promising to deliver. These are the successful steps in building a relationship with consumer that are connected on the web with social networks.

Friday, February 13, 2009

If Twenty-somethings ‘Twitter,’ why are thirty-somethings bitter?

Entering your 20s is a very exciting time. Specifically, turning 21 years old is liberating because you’re finally allowed to enter a bar and smirk at the bouncer on the way in. Likely, you’re away at college and off the parental dole. But entering the twenty-something era allows you to encounter a whole set of new experiences, such as attending weddings, paying a mortgage, having children, climbing the corporate ladder and so on. Since this is my last year as a twenty-something year old, I wanted to share a few situations that have in fact made me feel excited to leave the 20s.

While in my 20s, I kept realizing that there were a few one liners that I kept hearing over and over again. It is quite possible that you’ve heard these too, so bear with me. Doting bride-to-be’s love to say this to their bridesmaids: “I love that bridesmaid dress on you and the best part about it is that you can wear it again!” I am definitely not alone in cringing when I heard this sentence since 27 dresses came out in theatres not too long ago and Katherine Heigl, the main actress felt my pain. However, she got lucky and made all her bridesmaids wear their own special creations to her wedding.

Next up, is when people find out that I am still in my 20s. They either think that I am extremely tech savvy or a die-hard member of all the social network sites. They expect me to know all the features, how brands interact within the network and what opportunities exist for them to get involved. While I do consider myself knowledgeable about technology in this networked society that we live in and belong to a few social network sites, I am by all means not an expert nor an enthusiastic.

This brings me to all the chatter and articles regarding Twitter. I have been avoiding the whole notion of Twitter, simply because I just don’t have the time to belong to yet another social networking site. Isn’t Friendster and Facbook enough?! Apparently not. So I decided to read the articles and even check out the intro video on Twitter. Recently, I read an eye-opening article in The New York Times, and as a result, I am re-thinking my negative thoughts towards the site. Although I completely agree with the author David Pogue when he says Twitter is “yet another one of those trendy Internet time drains,” I was surprised when I read his examples of Twitter in action. David explains that he was serving on a grant proposal committee, and watched as a fellow judge asked his Twitter followers if a certain project had been tried before. In 15 seconds, his followers replied with Web links to the information he needed. Again, I agree with David when he notes that the reality is that no email message, phone call or website could have achieved the same effect. I didn’t even realize the power that this site could have. This example changed my mind in thinking that the site was a teenage time-killer.

While many twenty-something year olds are active users of social networking sites, the reality is that many older generations are also hooked. There is no age limit to signing up for a site and participating. While turning 30 evokes a different set of feelings and stereotypes all together, the truth is that even though I might not be in the “know-it-all-age-range for social networks” once I turn 30; I will be required to stay up-to-date and sharp with digital trends and the ever-changing media landscape. Maybe it won’t be necessary for me to change my status six times a day though.



P.S. Although, I have not signed up for a Twitter account, I am definitely going to consider doing so. I might just feel over-the-hill if I don’t.

Thursday, February 12, 2009

What does it take to create brand champions?

We all know that there are so many media outlets today and brand messages are more cluttered than ever. Ultimately, all this noise makes it harder for consumers to actually pay attention and engage with a brand. So what does it take for consumers to love and champion a brand? In a previous blog post, I listed a few tips that brands and companies should pay attention to in order to keep their best customers. The third tip I recommended was to reward customers. Rewards not only create a sense of belonging, but it also makes the consumer content and feel appreciated. Ultimately, this leads to a zealous consumer who will sing your praises and will tell the world (and fellow bloggers) about the wonderful experience. Luckily, I am not alone in praising the concept of rewarding.

In The New Champion Customers: Measuring Word-of-Mouth Activity Among Reward Program Members, a recent COLLOQUY study explains that members that participate in a loyalty-building effort, like rewards programs, are 70%more likely to actively recommend a product, service, or brand than the general population. Some of the more notable rewards programs are MyMarriot Rewards, MyCokeRewards and the Best Buy Reward Zone. The study was designed to “explore the intersection between consumers who participate in loyalty and reward programs and their Word-of-Mouth (WOM) activity regarding brands, Reward Programs and specific product categories.” The study polled more than 7,000 consumers in the U.S. and Canada. Of those who participated in rewards programs, 55% described themselves as brand champions. The majority of this group (68%) said they would recommend a program sponsor’s brand during the course of the next year. When asked why they are motivated to participate in W-O-M activity, respondents said: to tell manufacturers what I think (73%), to get smart about products and services (68%), to be the first to discover new items (68%), to get free product samples (63%) and to share my opinion with others (61%). (Check out the COLLOQUY study here.)

Based on findings from this study, and my own feelings on this topic, its seems obvious that people want to belong, desire a deeper relationship with brands and want to share their opinions with those brands and others around them. The companies and brands that want to hold on to their customers should listen to their needs, wants and comments in various places such as call centers, social networks, blogs and You Tube. People that feel compelled to share their opinions will in a major way. It’s happened in the past, and it will continue to happen. Rather than have disgruntled or disengaged customers, brands have an opportunity to make strong connections with their cusotmers and ultimately, build a relationship that could last a lifetime.

Wednesday, February 11, 2009

“You’re on Facebook?!”

This is the question that my 21-year-old brother asked me when he found out that I was on Facebook. I asked him to be my “friend” and a few hours later I got the frantic phone call. I could tell by the tone of his voice that he was not pleased. I explained to him that I was introduced to the social network by a coworker and felt compelled to see what it was all about. Since I am in the advertising industry, I wanted to learn how brands were interacting with consumers, what the ads looked like and what possibilities were out there for other brands. I promised that I would not check out his pictures and not ask to be “friends” with any of his college buddies at Emory University. I lied. Checking out his pictures and learning about how he spends his weekends at the frat house and bars was truly entertaining. As his older and wiser sister, I felt it was important to tell him that the employed-folks, such as hiring managers and bosses also belong to these social networking sites and they’re out to find out information about prospective candidates. A person on an interview can tell one side of the story, but a profile on Facebook or MySpace can truly tell the other side of the story. That one piece of advice hit home with my brother. The next day all the pictures were off and a lovely, smiling, clean shaved face was the new profile picture. Needless to say, I was relieved.

Besides the “friending” aspect of Facebook, there is a long list of activities to participate in. Spending more time on the social network and reading about the new trends for the future enticed my appetite to get more involved. In a previous blog, I mentioned the various applications that Gillette has for their fan base. However, the reality is that there are many brands on Facebook and more people are getting hooked. Additionally, in Social Networks: Five Consumer Trends for 2009, a recent eMarketer report explains that the social networking audience is growing rapidly. According to the study, “In 2008, 79.5 million people, or 41% of the US Internet user population, visited social network sites at least once a month, an 11% increase from 2007. By 2013, an estimated 52% of Internet users will be regular social network visitors.”


While there is steady growth in the number of people getting hooked to these social networking sites, there has to be something in it for the brands. Are they actually making money? Are they satisfied with consumers just interacting with their brand? Do they think that consumers will try their product simply because they put a fun interactive game on Facebook?

I recently read an article in Ad Age Digital that answered some of my questions at best. I thought it was worth sharing since I am sure many people have similar questions. The article explains that Facebook’s strategy has been focused on growth at the expense of advertising. However, Facebook is testing new models to gauge consumer interaction.

I don’t know about other people, but I like going on the site to check out what my friends are up to. I stay within my own community of friends and love to read their updates and see new pictures of their family and children. To date, I have a Friendster account and a Facebook account. I am on the verge of cancelling my Friendster account and have no interest in signing up for a MySpace account. Ask me in a few months if my account status has changed.

Tuesday, February 10, 2009

Conversing with customers makes all the difference

During the financial downturn in 2008, the Boston Consulting Group (BCG) conducted a study of about 6,000 people in six countries to explore recent and planned financial behavior, perceptions of financial services providers, and recent experiences. The study revealed that 30% of the consumers were contacted by their financial institutions about the crisis. According to the study, “In the United States, for example, only 53 percent of consumers who received no contact from their primary bank about the crisis said they were satisfied with the bank's overall service level, whereas 83 percent of those who were contacted reported satisfaction. Check out a summary of the study here.

Although not many bank names were mentioned in the study, it was noted that three financial institutions had updated their print advertising messages to reflect the times. On the other hand, most of the ads lacked relevance to the financial crisis or basic concerns of many consumers. From a recent article in Adweek, Kilian Berz, a partner in BCG’s Toronto office and head of its retail banking practice in the Americas offers this piece of advice for the major financial players out there: "In 2009, financial institutions should adapt their marketing and sales strategies to reflect the current situation much more directly than many have to date. If you're not appropriately responsive, then you're at risk here of losing market share. The banks that are more nimble and more able to use those more interactive channels of advertising . . . and can fill that and update it with current content are going to be advantaged."

Berz explains that JP Morgan Chase is one firm that stands out above the din. JPMorgan Chase has created a Web-based series of opinion papers about topics such as lending and mortgage management called "The Way Forward." JP Morgan Chase launched “The Way Forward” to highlight the things that the firm is doing to harness its resources to help their customers and communities.

In times like these, it is crucial that companies and brands reach out to their customers and nurture the relationships. A print ad that speaks to the financial concerns does not do enough. Personal contact like a phone call or a personalized email from a financial advisor goes a long way. After reading this study, it is obvious that consumers want honest and open communications during the good times and the bad times. As a member of Citibank, I can tell you that the bank has done nothing to communicate with me about any financial concerns. I have lost trust in many financial institutions and I know that I am not alone. How hard is it to reach out to your customers and reassure them that their money is safe or offer sage advice about next steps? Unfortunately, it seems like silence and irrelevant marketing messages are the route that many financial firms are taking.

Curious to see what various banks were doing with their print campaign, I did some investigating. Here are a few examples of print ads that I found from 2008 that addressed the financial downturn. The Bank of America ad appeared in Time magazine in December 2008. The Wells Fargo ad appeared in Fortune magazine and The Economist in December 2008.






Do these ads make you feel like these banks understand your financial needs and concerns?

Sunday, February 8, 2009

What have you done for me lately?

A day in the life of a “Manhattanite” can make your head spin when it comes comprehending every brand message. While in grad school, a professor asked the class to track the number of brand messages we encountered in the course of one day. Tracking this one day was an eye opening experience for me. There were an infinite amount of touch points such as billboards, magazine stands, bus advertisements, television, radio, subway advertisements and many more. On a cold Monday morning, I encountered all these touch points before I stepped foot into my office building. As I turned on my computer to begin a normal work day, the frenzy continued. Other touch points I came across were emails, e-newsletters, websites, magazines and word-of-mouth.

The end result of the exercise was obvious. There are a ton of companies and brands sending out messages to consumers in a variety of ways. Although I was aware of my surroundings and the brand messages, there were times when I simply did not care to pay attention because they were irrelevant to me or the timing was inconvenient. So how do the worthy messages stay put in your brain and then encourage you to take action? My findings lead me to believe that brands need to do a better job of reaching consumers and more importantly, inspiring them. Ultimately, the key ingredients that increase the impact and satisfaction of the media messages are timing, placement, personalization and targeting.

There are some companies and brands that do an excellent job of targeting their consumers, as well as communicating the right message at the right time. My favorite company that does a great job of all of the above is Banana Republic. In 2008, the brand celebrated its 30th anniversary and made sure to let consumers know that they are listening to their needs and wants in the fashion industry. From an urban, chic safari feel, to adventurous and classy in the big city, Banana offers fun, flirty, affordable and sophisticated clothes. I find all my work clothes and evening attire in this one store as well as on their website. That being said, when I was asked to sign up for their credit card and receive wonderful benefits and perks, I gladly signed up. Banana welcomed me to their store with a letter and various coupons. Additionally, I got coupons to their sister stores such as Old Navy and the Gap. In fact, they were so excited to get me as a customer that they make sure to send me emails on a weekly basis about all the new trends and styles. Getting a coupon is only part of the excuse for a shopping spree.

For a glimpse of how Banana celebrated the 30th anniversary, check out this video:


Since I’ve become a brand loyalist to a distinct selection of stores and brands, I thought I would take the time to give my opinion on what the basic necessities are for retaining a customer and ultimately, making them a best customer.

My three tips for retaining best customers:
1. Welcome me to the “family.” Since there are plenty of similar stores, companies and brands out there, tell me the benefits of being part of this family.
2. Say ‘thanks’ for spending my hard-earned money at your store. Also keep me informed about new items, sales and store openings.
3. Reward me. Send me coupons via email and mail. The store knows what I bought so other suggestions based on my previous selections would be helpful.

Likewise, there are also brands that do not do a good job of communicating with their customers. First up on the chopping block is Citibank. But that explanation and rant is for a different day. Stay tuned.

Saturday, February 7, 2009

How lucky can you get? Lucky magazine sure did with this shopping trend.

Young adults who read Lucky magazine head to the Internet to search for the latest clothing, shoes, handbags, sunglasses and makeup that were featured in the latest issue. NearbyNow, an online business of locating the closest retail outlet that stocks merchandise shoppers are searching for is benefitting from this spike in shopping searches. The article explains that the mission is to, "enable anyone, anywhere to find the nearest place to buy anything."

Browsing and shopping on the Web is a weekly and sometimes daily ritual for me. Often, I am too busy to visit a store and try to find most items online. It’s easy and convenient, which is what many consumers, including myself, are looking for today. In fact, I do the same thing that this article refers to. I read a magazine and either fold down the top corner or rip out the page. Then, I head to my computer, search for the item to check it out and finally decide if I am ready to purchase. Recently, I read the Style section of People magazine and saw a chic, cheap dress from Target (or Targee΄ as my friends call it with a French accent, of course). I read the reviews from other people that purchased the dress to find out what they thought as well as their suggestions on sizing. After a few positive and convincing reviews, I was on my way to the checkout section.

NearbyNow and Lucky are set to launch an iPhone application that brings the geo-locating concierge service to the mobile handset. The article explains that every product featured in the magazine will have a corollary in the iPhone app, which means iPhone-toting fashionistas can dial into the Lucky app and see if their nearby retail outlet has their object of their desire in stock, in their size and in the color that matches their favorite nail color. This technology will eventually be accessible on all cellular phone networks, which I know I will certainly use.

Can retailers make it any easier for me? Companies and brands are making it easier for us to connect with them and spend money. Reading a magazine not only drives people to the Web, it will ultimately drive people to their mobile device. I think this is a very smart and innovative way to get users to try a different shopping route. While I do think that sending coupons to consumers through a mobile device is a great way to get them into the store, this new trend of getting users to shop with their phone is simple and convenient.



Friday, February 6, 2009

Fun Interactive Digital Platforms

Brands are connecting with people on Facebook, the popular social-networking site in various ways. There are simple advertisements, and then there are “engagement ads,” which focus on directing users to pages or applications with activities that trigger an action that is a broadcast through the users’ news feed. Additionally, there are tons of applications, games, widgets, polls, discussion boards and contests that foster participation. OK you get the idea. Brands are vying for our attention on Facebook. It is actually overwhelming when you search and see how many companies and brands have a Facebook page. Almost every popular brand has a profile or page and encourages the user to join the fun. Although people might not be focusing on the advertisements, they are certainly are participating in other ways. For example, my 21-year-old brother tipped me off that Gillette has some pretty cool applications, games and videos. By doing a quick search for Gillette, there are a few interesting pages that come up.

Not only does Gillette have a profile, discussion board and an active Wall, they also have a whole section dedicated to videos. Gillette Champions, such as Tiger Woods, Roger Federer and Thierry Henry are the main attractions in these videos. The athletes give tips to the art of shaving and show men how they too can put their best face forward.
http://www.facebook.com/home.php?ref=home#/video/video.php?v=16533304855

Additionally, there are umpteen videos on You Tube and Gillette’s website to learn more about the athletes as well as the campaign.


My favorite application so far is trying on a new look with the Gillette Facial Styler. This widget invites the user to upload a photo and “try on a new look.” After you upload the photo and adjust the settings, you are supposed to share with friends. Then, they are asked to vote: Should they save it or shave it? Although, I don’t usually sport facial hair, I thought I would try on the handlebar look for kicks. Any thoughts on my game face?



Interacting, posting, commenting and sharing are all actions that Gillette wants you to do while visiting their Facebook page. After spending some time on Gillette’s page and playing around with their applications and widgets, I think the brand does a great job in attracting young men’s attention, capitalizes on viral marketing and social sharing and most of all, its fun and entertaining.

Thursday, February 5, 2009

Is Print dead?

But is it really? The answer may depend on who you ask. If you ask any account manager at People magazine, you might get a reassuring and positive answer that print is alive. However, media strategists and analysts beg to differ and insist that print is a dying medium. I am on the fence about this issue. Although I go on the Internet on a daily basis for information, I truly look forward to checking my mailbox on Friday to get my weekly issue of People magazine. A smile always comes to my face when I get it because it means that the work week is done. I can sit on my couch, forget my worries and catch up on my entertainment news. The same goes for me when it comes to high fashion magazines, such as Vogue. While both magazines have a robust website with various new articles on them, I still think there is something special and unique, even luxurious, about reading a big, high-end glossy magazine. A guilty pleasure you might ask? Whatever you want to call it works for me. I just don’t get the same feeling of excitement and relaxation when I read similar people-oriented or fashion-based articles on the Web. You just can’t curl up and relax with a computer screen and an internet-based article.

However, one benefit of the Web is speed. Since I am time-starved and busy with work and school, I turn to the Web for most of my daily news and other information such as advertising and media trends. Searching for news on the Internet is quick and easy and I get all the information with a few clicks of the mouse.

After reading an article by Jeff Jarvis, former print editor, now a consultant and blogger at BuzzMachine.com and John Griffin, President of the National Geographic Society's magazine group regarding the demise of print, I feel confident that the strong magazines will survive. I take the side of Griffin especially when he says “there is tremendous value in passionate, knowledgeable, talented editors who can assign stories and photographs with budgets to do them better and more authoritatively than any individual can. The reader of a magazine like National Geographic can depend on the information being accurate, coherent, concise, beautiful and created by the by most talented writers and photographers in the world. And readers may learn about something that they didn't know they were interested in.”

Spending quality time with engaging content and entertaining visuals truly makes for a luxurious experience that readers can’t recreate on the Internet.