Corporate Culture Embraces Digital

Many world class brands are doing everything in their power to adapt to the digital world and various technologies. Additionally, many corporate organizations are doing their best to implement digital initiatives such as blogs, wikis and social networks. This seems like a no brainer. However, getting used to and embracing a digital mind-set is a different story for more traditional companies and upper management. Recently, at Ad Age’s Digital Conference in New York, top executives participated in a panel moderated by Nielsen Online's Pete Blackshaw to discuss the ways in which technology has changed their companies from both an internal and external standpoint.

According to Ad Age, the “How Technology Changes Your Company, Inside and Out” panel consisted of Josh Weiss, Managing Director, Delta.com, Self Service; Bob Kraut, VP Marketing Communications, Pizza Hut, Inc.; Pete Blackshaw, EVP Digital Strategic Services, Nielsen; and Michele Azar, VP, Emerging Channels, Best Buy. Each executive went into detail about how they have embraced various technologies, the steps to get approval and the outcomes.

Each executive had compelling ideas to share, which are worth noting. If traditional companies and top executives are not willing to adjust their mindset, then they are setting themselves up for failure. Case in point, Mr. Weiss was trying to help Delta move forward by creating a strong online presence. "That meant having a totally unconstrained area on the site where consumers could come and talk about our product good and bad and hopefully make helpful suggestions about our product," he said. For his efforts Mr. Weiss met with senior counsel and the head of communications and marketing, who were concerned that consumers could say anything they wanted about the airline. His retort: They already are, so why not be part of the conversation? "At that point we were just not ready for it from a corporate culture standpoint to have unfettered social media on delta.com," Mr. Weiss said. "So we ended up with a blog where we talk about our services and offerings. And we do have customer-posted feedback. So we got [management] there eventually but definitely not without hitting some bumps along the way."

In addition to listening to customers, it is crucial to listen to employees. Employees are also concerned about the overall success of the organization. As such, if they’re educated on new policies and digital initiatives, they can be your best cheerleaders. There are benefits to employees and senior executives if they are involved in an internal digital platform. Company leaders can be in contact with employees on the most local level so they can share best practices and real-time information about internal and consumer interactions. However, in order for brands and companies to interact via digital technologies there must be active participation and meaningful involvement. Ultimately, this means not only listening to customers and employees but taking action.

Check out Ad Age for more details on the other executive’s strategies and outcomes.

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!"

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.