CRM to the Rescue

Due to declining readership and revenue, many media companies have been struggling to stay relevant and ultimately, stay in the game. With so many eyeballs gravitating to the Web, many print publications have lost their fan base and have been forced to build engaging websites with fresh content. As a result, Time Warner, Disney and other media companies are experimenting with customer relationship management programs in an effort to retain their relevance. However, traditional media lag behind their online counterparts in collecting customer data.

Media companies are trying to figure out the best strategy to keep their consumers happy. They are also trying to package the content in a way that will provide the most value to their loyal customers. “Newspapers, magazines and media companies in general have to start thinking about what con­tent they reserve and what they don't,” said David Rosen, SVP at San Francisco-based Loyalty Lab, a provider of on-demand customer loyalty technology. “By asking people to sign up for digital con­tent, for example, and to be part of the brand, it creates a deeper sense of engagement. That then becomes a marketing platform as opposed to an advertising plat­form, which is what media com­panies have now.”

Creating a relationship with its best cusomters is a strategy that rings true for Disney, the world renound company that children and even adults adore. According to a recent article in the DM news, Disney has launched a comprehensive membership program called D23 that includes a subscription to a new quarterly publication, offers to attend special events and purchase exclusive merchandise, access to exclusive online content and a membership certificate and card. Additionally, the Disney.com/D23 fan site will feature Disney news, exclusive feature stories, blogs, a collectibles boutique, special event information, and other content. A statement form the company explains that D23 refers to the year 1923, which is when Walt Disney opened his studio in Hollywood. The program is the first official community for Disney fans and a one-year membership costs $74.99 according to a statement from the company.

The driving reason why companies are willing to invest in these loyalty programs is because they want to continue the conversation with their loyal consumers. Ultimately, subscribers have to feel that a relationship with the brand is really worth paying for. Rosen agrees and says, “Here's a case where a media company is taking a lesson from the direct marketing industry. By providing structured value [to its cus­tomers], Disney will ultimately see higher levels of conversion and engagement across the entire franchise.” With this sophisticated communications program and community, Disney is able to understand what their customers are willing to pay for and reward with items that are of interest to them. As the infamous character Donald Duck would say, "Nothin' to it!"

Social Media and the Workplace

It has become the norm today for people of all ages to participate in social networking. I’ve become accustomed to reading status updates on Facebook and each time I wonder why certain people feel the need to tell everyone that they are tired, hungry, thirsty or ready to party. As a member of Facebook, I can honestly say that I’ve only added one status update and that was to tell my family and friends that I had the best weekend ever—I got engaged to my boyfriend of five years. I thought that special moment deserved a mention. It was the one stop shop for everyone to find out, including my coworkers.

Posting friendly messages to these social networks is harmless and sometimes comical. But what happens when someone posts status updates to Facebook or “tweets” about client meetings and goals? Heather Rast, an avid member of the social networking space describes her real-life story of how social media involvement affected her corporate career. As a follower of Joe Pulizzi’s blog Junta42Match, I came across his interview with her and was shocked. Since social networking is a hot topic these days, I felt this interview was worth blogging about and passing along to friends. Additionally, I learned a few things and have made a mental note for any future use of social networks. You might want to do the same.

According to the interview, Heather explains that the company she was working for didn’t have a social media policy. She says,”Because of my level of responsibility, I thought it within my purview to choose methods for generating interest among outside parties about what my team did, and what we had to offer. I used Twitter to share ideas like ‘Just had a great client meeting. I think they’re understanding what a SEM campaign can do for their short-term search goals.” However she also stated that she never mentioned a client by name and never detailed any client project.

Apparently, people at the company didn’t agree with her approach and decided to selectively cull certain Tweets and Facebook status updates and presented them to executive management. They claimed that she was sharing confidential client information and using poor judgment.

While Heather is no longer with the company that questioned her social networking activities, she is proud to say it was worth the fight and she would do it all over again. She now works for a company that has full disclosure of her blogging and Twittering and they support her writing and sharing with others openly.

At the end of the interview Heather give some lessons that will stay with her forever:

Heather’s Lessons Learned:

• “Be very intentional about what I write anywhere. Have awareness about if the first and the fourth (example) sentences were stripped away, could my idea be misinterpreted, or used against me?”
• “Have a healthy respect for dissenters. Threatened people will resort to surprising behaviors. Take actions to preempt their plans by being as transparent as possible.”
• “You are replaceable, and your achievements are only as noteworthy as your weaknesses are few. Bad things can happen to good people.”
• “Isolate what is really important to your career/professional happiness. Then make sure you’re working at a place that truly allows you do those things. Life’s too short to just work somewhere; find that career that offers fulfillment.”

Check out Joe’s blog for the full detailed interview.

Many companies do have workers that participate in the social networking space for the good of the company, but the important point is that they’ve also made an effort to have guidelines in place. IBM and Edelman are some of the companies that have such policies. People have to be aware of what their own company guidelines are and think twice before they publish information for the world to read in the social networking space.

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.

“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.

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.