7.5 Surefire Ways to Drive Brand Hatred

deadlysins
Note: Found this cartoon after I wrote my post.

Recognizing that brands have sabotaged themselves since the days of Noah via a host of slowly eroding sins, the purpose of this article is to put the spotlight on the flash faux pas that instantaneously dissolve loyalty and ignite brand hatred. This hatred, often expressed with the exclamatory #EpicFail on social media, is typically motivated by one of the following sinful ineptitudes. Some of these might seem laughable unless, of course, they happen to you.

1. Sloth: “We care about you–your call will be answered in 600 minutes.”
Ignore me at your own risk.  I am not just one customer any more.  I am me AND my social media-empowered army of friends and associates.  Make us wait longer than we think we deserve at your bar or store or so-called hotline and our wrath will be heard faster than you can say, “may I help you.”  68% of us will leave and never comeback, but that’s just a fraction of your problem.  A mighty minority of us will attack you like ninjas on Yelp or TripAdvisor or some other rating service leaving a lingering trail of forewarning rage.  Yes, be afraid of sloth.

2. Avarice: “What exactly do you mean your service doesn’t work as expected?”
This one is as easy as 1-2-3. 1: Over promise. 2: Under-deliver. 3: Duck and cover.  I think I’m safe in saying that everyone hates feeling they’ve been ripped off.  This is less about the feeling that you paid too much for something.  Sure that hurts, but that’s usually on us for not doing our homework.  No, this is paying for what you think is a premium service only to find out it’s unreliable or doesn’t perform as advertised.  That tactic will guarantee recognition, however, on the list of the Most Hated Companies in America!

3. Wrath: “You’re pissed off? How do you think I feel?”
Chances are I wouldn’t last five minutes on a customer service desk especially when the 4th boneheaded caller/yeller in a row refuses to realize that his miniscule problem is, in fact, a user caused error.  Be that as it may, shouting back at your disgruntled customers in person, on the phone, or online is a shortcut up “Schlitz” creek without the proverbial paddle.  Just ask the folks at Amy’s Baking Company how their epic tirade on Facebook worked out (hint: not so well).  Even in the face of “wait until you hear this one” user incompetence, customer service interactions need to start with a bit of empathy AND be driven by the sincere goal of turning each and every detractor into a brand promoter.

4. Gluttony: “We’re so happy you’re our customer. Want fries with that?”
We get it.  Just about every business wants to sell more products especially to its existing customers.  And reaching out to your existing customers in person, via email, direct mail or phone can be beneficial to both parties, especially if the interaction coincides with a need cycle.  But there’s a line here where enough is way more than enough. It’s a line that once crossed, replaces receptivity with fervent animosity followed by a vitriolic tweet decrying the 13th contact by Brand X that particular week.

5. Pride: “Honestly, we’re too busy right now to care about your little problem.”
The flip side of overselling is acting disinterested.  This is especially the case in social media when brands have a presence but consciously or unconsciously ignore relevant conversations.  To label this behavior prideful may be a stretch, though it does send a message that the brand simply can’t be bothered to converse with the hoi polloi.  The big risk here is that you could unwittingly ignore a customer with influence; who responds by turning your cold shoulder into a hot topic.

6. Lust: “Nice to see you again Mr. Jones. You there, get back in line.”
Showing preference for one type of customer over another is tricky business. Airline reward programs come with a sense of fairness: Fly more and enjoy clearly defined perks. But treat one customer better or worse because of who they are and you’re begging for animosity. For example, the cable company that breaks protocol to respond faster to an outage at a celebrity’s house is likely to get an earful from the regular (and ignored) guy around the corner. The extreme case here is when Chick-fil-a’s CEO expressed preference for “traditional” families, generating a firestorm of brand hatred.

7. Envy: “Did I mention, we’re just like Apple only…”
Perhaps this has happened to you.  You’re shopping for something and the sales person says, “This is just like the leading brand, only many dollars cheaper.”  So you buy it, head home, and open the box only to discover that instead of saving money you wasted it on an inferior product.  Yeah, that pisses me off big time, especially since it’s so avoidable.  It’s okay to make cheaper products (in fact, thanks for giving us choices) as long as you manage our expectations and don’t pretend to be something you aren’t.

7½. Control: “Press 0 as many times as you want, there are no humans here.”
Want to see unadulterated ire? Piece of cake–just make your customers feel helpless. For example, don’t bother telling the passengers in the terminal that their plane is delayed until an hour after its obvious and too late for them to do anything about it.  Or don’t offer a digital support center that empowers your customers to make adjustments to their accounts at any hour of the day from any device.  Or, my favorite, remove the hit “0” option from your customer service phone tree, setting up the opportunity for fruitless loops of avoidable anger.

Final Note: There is a silver lining within all this talk of hate and sin.  Customers that express brand hatred are a bit like the friend that tells you about the spinach in your teeth.  It’s embarrassing for sure but not as bad as the real enemy here—indifference. Vocally angry customers are creating the opportunity for you to address their issues. You just need to be listening and then try to remedy the situation.  Indifferent consumers are quietly unsalvageable.

 

Negative Ads: Politics versus Products

lincoln_attack_adv_web_copyOvertly negative advertising in which one brand attacks another has always seemed to me to be a failure of imagination. Truly creative people can find a way of telling a brand story without having to punch a competing product in the face.  I’m not saying that a challenger brand with an offering that is superior to the leading brand shouldn’t tout such facts, I’m just saying that in most cases they can do so without naming names.

Jeffrey Katz, a freelancer journalist, recently asked me why this was not the case for political campaigns which are often dominated by negative advertising.  Katz’s story does a great job explaining the fallout of such negativity while featuring some quotes from yours truly on the fundamental differences between political campaigns and product marketing. Here for your reading pleasure is our entire interview:

Katz: My fundamental question is if negative ads are generally (though not entirely) effective in the political realm, why are they avoided when selling goods and services?

Neisser: Let’s start with the fundamental difference between political campaigns and product campaigns. Political campaigns are zero sum gain battles in which there is only won winner. Political campaigns are also finite in that there is a voting day deadline so the pressure to be victorious shapes their approach. Thus politicians are willing to risk going negative even though it brings down the image of their category and this is just one of the many reasons consumers don’t trust politicians. There is a desperate urgency to political campaigns that often forces politicians to go negative and attack their opponents. Interestingly, most political campaigns start with positive ads to establish the candidates credibility and likeableness. The negative/attack ads start when one or the other candidate believes its the only way to make up lost ground and/or when they believe their bone fides have been sufficient established.

Conversely, product campaigns can result in category growth and rarely have deadlines (new movie releases being a notable exception). For example, when JetBlue started flying to Buffalo, NY from NYC and advertising that fact, they didn’t need to go negative against a competing airline like US Air since it turned out JetBlue could dramatically increase the number of passengers flying this route thus helping the category. It wasn’t JetBlue versus US Air, it was JetBlue to Buffalo versus other destinations and forms of transportation.

Also, product campaigns always have a different way of going negative by focusing on a problem that their product & category solves rather than having to single out a direct competitor. Keeping with the transportation analogies, Amtrak can campaign against air travel and all the hassles of getting to/from faraway airports.

Katz: In other words, why are brand fights “rarely positive for either brand,” as you put it, when that’s not generally true in politics?

Neisser: It’s really a question of efficacy and marketshare. On the efficacy front, if overtly competitive ad campaigns for products worked as a rule, then more would consider this approach. Leading brands have nothing to gain by picking on a direct [smaller] competitor so they are more likely to focus on growing their category. Second tiers brands are the ones that are more likely to consider overtly competitive ads. These folks have lots of options in terms of their approaches, a classic being “compared to the leading brand” without actually naming that brand. The risk of going negative for products is that consumers will associate your brand with negativity, the very opposite of the desired result. That’s why a brand like Pepsi will use a tongue in cheek approach versus an overtly negative approach when doing competitive ads versus Coke.

Katz: Are those who sell products and services more respectful of their industry than politicians tend to be of theirs?

Neisser: Not necessarily. If product managers thought overtly competitive advertising worked many more would undoubtedly make this choice.

Katz: Do consumers feel that choosing among candidates is an inherently different process than other choices they make when responding to advertising and marketing?

Yes. Selecting a candidate for office is a more of a considered “purchase” decision then say buying a plane ticket. Brand decisions can be corrected more easily than political decisions. Have a bad flight experience you can simply avoid that airline the next time you fly. Make a bad political choice and you live with the result for a minimum of two years but more often generations given the advantages of incumbency.

Social Media and Content Marketing

Every once in a while one’s past and present collide in fun and unexpected ways.  Such was the case when several Duke alums gathered for a conversation on social media in front of a crowd of about 150 fellow Dukies.  With the ambitious title, “Like it Or Not: The Pervasive Influence of Social Media,” representatives from Facebook, Twitter, Google+, The Wild Geese and American Express faced the challenge of connecting their time at Duke with their current careers along with the more daunting task of dealing with yours truly as their moderator.  Happily, it turned out to be a vibrant, informative and thought provoking conversation that concluded with an extensive audience Q+A.

Since many more people wanted to attend than the space allowed, I thought follow up interviews with the panelists would be of interest (to at least some of you). First up is Susan Hammes, Vice President, Digital Brand & Social Media Development at American Express. Susan has been in the middle of some truly noteworthy social campaigns at AmEx, a company that in my humble opinion leads the way in social & content marketing (as you’ve read about before on this blog — see interview with AmEx CMO John Hayes).

Drew: How did your end up in working in social media in content marketing?
Started working at traditional Advertising Agencies and over time discovered a passion for digital marketing.  In particular, I’ve always been passionate about finding right person, right message, right context, something that is critically important to social media and content marketing.

Drew: What role if any did Duke prepare you for your future career?
Duke taught me the importance of curiosity, empathy, and passion – the three keys for just about any career, but particularly essential in marketing.  Duke also taught me importance of working hard and playing hard.  These are ingredients that are necessary as a marketing professional.

Drew: What program or programs that you’ve touched at AmEx are you particularly proud of?
Most recently, I worked on a social content program called #PassionProject.  This was a program designed to put the customer at the center and provide them with a tools to help them realize their dreams.  I’m particularly proud of this as not only did it far exceed our business objectives, we also truly impacted the lives of the participants of the programs.  I regularly received notes from the participants that said we had changed their lives – given them the tools, the compass, and confidence to take their passions to the next level.

Drew: What’s the most exciting part about working in SM/Content marketing right now?
The ability to forge a new path forward and to use technology to create stories and experiences for people.

Drew: What’s the most frustrating part?
Measurement.. and not having enough time to experiment and learn all the things we need to learn.

Drew: Do you see a future for “organic” social media (vs. paid) and if so, what does that look like?
Yes. Influencer marketing and Social influencer marketing will continue to be a critical role.  However, like the past, paid social will continue to play a huge rule (although it will continue to evolve as the platforms and users shift their social platforms to an ever broader set of platforms).

Drew: Zeroing in on content, what are some tips you can provide to others about creating successful programs? Feel free to provide pitfalls as well.
Customer First is the most important aspect.  It is critical that you start with what the customer is looking for – which is to be entertained, informed, inspired.

Identify the emotion that you want to elicit.

And finally, ensure that if you’re doing branded content- that there is a clear and authentic role or enablement role for the brand/product.

Pitfall – don’t think that content will just be discovered- need to think through the owned/earned/paid ecosystem of distribution to help the content be searched/discovered.

Drew: Finally, how import do you think it is for marketers to be active in social media themselves?
It is critical that marketers use and follow social media – this is to understand your consumer.

10 Refreshingly Useful Ideas That Also Sell Wine & Beer

In the world of wine and beer marketing, sexy, clever and or entertaining ads are the headline grabbers. The purpose of this article is to reveal another framework in which the promotional activity of these beverages also provides intrinsic value—an approach we Renegades call “Marketing as Service.” Here are 10 refreshing examples that hopefully will inspire you to bring more utility to your marketing regardless of the product category. (FYI–if this article seems familiar, then you read it first on MediaPost.com).

Packaging that does more than pop

1. Nothing says, “drink me now” like a wine bottle that also doubles as a glass.  Caps off to the folks at Copa Divino or making a re-sealable container called The Copa Glass. Zipz Wine is taking a similarly picnic chic approach and is now available in six-cup-packs at major ballparks.

Copa Glass

2. Heineken has found a way to help its fans light up the night, literally, with its prototype “Ignite” bottles that respond to toasting, drinking and even pulsing music at coolly dim events, the first of which was the Milan Design Fair.

Heineken lights up
Heineken Ignite bottle

3. In a bid to attract millennials away from cocktails and craft beers, Uproot Wines is trying a whole new type of labeling system that describes its “Flavor Palette” with a color coded guides versus traditional grape-type descriptors.

Encouraging social and antisocial media behavior

4.Brazil’s AmBev offered Rio carnival partiers a free train ride home simply by scanning their Antarctica beer and then handing in the can at a specially designed turnstile, simultaneously limiting drunk driving and freeing the grounds from the usual post-revelry rubbish piles. What’s not to love?

5. New Castle Brown, a brand distinguished by ads with attitude, brought its tongue in cheeky approach to Twitter, offering $1 for its first 50,000 followers. While one buck won’t buy brand love, it does start the conversation, one that New Castle can continue online and offline with its new address book (the checks are sent by mail!).

Camera blocker
Norte photo blocker

6. Norte beer recognized that every night out need not be recorded for posterity and thusly created a beer cooler that doubles as a Photoblocker , providing both utility and distinctive on-premise signage.

7. Another clever brand, Sol beer set up a recycling bin for neck ties next to the ones for paper & cans at commuter stations, offering a free beer to anyone who got into the spirit, which I guess we could call “tying one off.”

 

Tie recycle bin
Sol Tie Recycling Bin

Inspiring online, offline and mobile

8. From the savvy folks who created a Book of World Records as a means of inspiring fun pub conversations, comes the Guinness pub finder app, which is another quintessential example of Marketing as Service. The app does exactly what you’d expect helping even Android users find the nearest pints of their beloved Irish dry stout.

9. At a music festival in South Africa, beer sponsor Windhoek delighted attendees by enabling them to order a free beer via their smartphones, which was then promptly delivered via specially designed drones to their GPS-identified location. Now that’s service with a smile.

Beer drone

10. Surrounding brand marketers are a number of apps designed to help connect consumers with the right place or product. The TastingRoom.com offers a personalized wine finder based on your preferences while the TapHunter helps you locate the nearest Craft Beer venue.

Final Note: Admittedly some of these ideas seem more like PR-chasing stunts than genuine efforts to deliver a service of value but hey, you’ve got to start somewhere.  For more thought-provoking ideas, join me for a panel discussion on innovative marketing at the upcoming Wine/Beer Technology Symposium in Napa on June 30th.

Why CPA is a Horrific Metric and Must Perish

Author’s note: a significantly shorter version of this post ran on MediaPost.com today, so read on…

CPA (Cost Per Acquisition) is a monster.  In slavish devotion, 41% of businesses consider CPA their top metric (according to recent DMA study) thus making ill-advised marketing decisions that further nourish the CPA beast.  Fiendish is an understatement when you consider the hypnotic power of CPA. After all, who wouldn’t, on first blush, want to determine how much it costs to acquire customers and then figure out how to minimize these costs?

Before providing proof to this thesis and suggesting an alternative metric, let me stop and pay homage to the monster’s creator.  Thanks a lot Google.  Before your arrival, businesses had a somewhat vague notion of what it cost to acquire a customer and even if they could make these calculations, it often took weeks or months.  Now the smallest of businesses can spend a dollar via Google and just about instantaneously know if that dollar resulted in a sale.

But herein lies the true villainy.  Because CPA is so easy to calculate, especially in the case of digital media spending, business leaders have become obsessed with this number and critical decisions are made in an effort to achieve the lowest possible CPA.  This seeming no-brainer for marketing then wreaks havoc across the organization as complaints, returns and churn rates rise while lifetime customer value averages drop.

CPA is Destroying Businesses
Lest you think I’m being melodramatic, let me provide two representative real world examples with the names changed to protect the innocent.  Company A is a tech company that when it first launched a decade ago had a game changing value proposition that helped them acquire several million customers who heaped praise on their service and served as willing brand evangelists.  But in the last 2-3 years, their competitive advantage slipped and the market stopped growing.

At weekly staff meetings, “new customers acquired” was the predominant metric determining not just the mood in the room but the actions for the subsequent week.  If one media type or promotional program was achieving a lower CPA than another, then dollars were shifted accordingly.  Meanwhile, the weekly lost customer count was completely ignored even if it exceeded the newly acquired figure that particular period.

So now we get closer to the real problem with a CPA obsession.  Company A drove down its CPA by running price promotions that attracted “switchers,” those savvy seekers of special deals who abandon ship once a better deal comes along.  These folks were also the first to complain, sucking up expensive customer service time, driving down sentiment on social channels and depressing employee morale.  This particular case does not have a happy ending so let’s move on to Company B.

Company B is a young digital services company that is growing leaps and bounds thanks to a ferocious sales culture.  Dialing for dollars, the sales team calls upon prospects, offering their services with one solitary goal—close the sale.  Management and marketing are all aligned behind this singular obsession, rewarding top sellers for their efforts and spending marketing dollars on lead generation that results in the highest close rate.  And though this goes well beyond CPA as a metric, the menace is parallel.

For Company B, the trouble emerged online as their reputation began to suffer.  Complaints about the ineffectiveness of their services bubbled up on organic Google searches as hundreds of newly acquired customers ranted on Yelp and other social channels.  Undaunted, Company B hired a reputation consultant hoping to drown out the negativity online rather than address the fundamental problem—as an organization, they were focused on the wrong metric (sales closed) leading to the acquisition of a consistent percentage of customers they couldn’t satisfy.

It’s Time for a New Metric: Cost Per Satisfied Customer
Here’s a fundamental truth: what you measure defines your organization.  Company A’s fanatical focus on short-term CPA meant ignoring churn, creating a customer service nightmare and diverting resources from new product development to fill the pipeline.  Company B’s dedication to acquiring any and all new customers as quickly as possible spawned a reputation problem that still dogs them to this day.

Having established the villainy of CPA, we can now turn our attention to a radically new yet simple metric solution: Cost per Satisfied Customer or CSPC (because an acronym is essential here!).  In this calculation, we seek to differentiate between all customers acquired and those that are actually satisfied with your product or service.  By isolating the characteristics of your happy customers and how you came to acquire them, you can then replicate this in future acquisition efforts.

Practically speaking, this is a bit more complicated than I make it sound but fortunately in the world of big data, not beyond the reach of most companies.  The key is the willingness to recognize the problem (not all customers are of equal value and some are even of negative value) and the solution requires more than changes in media buying and data monitoring, including an entire organizational shift from gaining customers to satisfying them on an epic scale.

For Company A, calculating Cost Per Satisfied Customer is not a stretch since their CRM system already tracks means of acquisition and length of service.  These two data points alone can root out the “switchers” who can then be further profiled against the rest of the customer base acquired in a similar timeframe, allowing for the isolation of problematic promotions and preferred prospect characteristics.  This data could deliver a rudimentary CPSC by dividing the marketing spend by the total of non-switchers acquired.

For Company B, getting to Cost Per Satisfied Customer is also doable.  First they would need to look at their customer satisfaction data and isolate both promoters and detractors.  Then they would need to model both groups looking for trends in terms of how they were acquired (lead source, sales person, pitch process) and business characteristics (size, ownership structure, vertical, location, years in business, etc.).  With this info in hand, it would then be possible to concentrate sales efforts on those types of prospects most likely to be satisfied and divide the costs of these efforts by the number of promoters acquired.

A slightly more sophisticated CPSC calculation requires the ability to bring together marketing spend (M), customer satisfaction data in the form of total satisfied customers (SC) and lifetime customer value (LTV). The formula looks like this:  M ÷ (SC x LTV) = CPSC.  And I have no doubt that data geeks out there could refine this more by factoring in the additional costs of servicing unhappy customers as well as a reputational quotient that blends in recruitment and retention savings when complaints decline.

Here’s the bottom line—Cost Per Acquisition is the wrong bottom line and leads to organizational problems that can indeed be disastrous.  All customers are not equal; some can help you grow and others might just put you out of business.  By focusing on Cost Per Satisfied Customer, you can shift marketing/promotional/sales efforts towards those programs that deliver customers you actually want today and for the long haul, thus extinguishing the CPA monster once and for all.

CMO Insights: Leading and Believing in Your Brand

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A few months back, Mary Kay’s CMO Sheryl Adkins-Green won The 2013 CMO Award for Officers given by The CMO Club.  This award, according to Pete Krainik, founder of The CMO Club,”was based on a marketing executive’s demonstrated leadership in leading the brand beyond the marketing department and leading the growth agenda for the company.”  When you read the interview below I think you will understand not only why Sheryl won this award but also why Mary Kay represents such a distinctive marketing challenge.

Founded just over 50 years ago, Mary Kay depends on independent army of beauty consultants that is now 3 million strong.  For Sheryl, marketing is less about driving demand from end users and more about motivating their consultants to champion Mary Kay products all over the world. Doing this requires genuine insights into the dreams and aspirations of these women who have the potential to transform their own lives AND to make a huge difference in the lives of others.  Connecting with their beauty consultants on a highly emotional and personal level has created a culture that’s become the lifeblood of the company. Read on as Adkins-Green highlights Mary Kay’s unique marketing strategy and her most successful campaigns:

Drew: A challenge that a lot of CMOs face is: where do you spend your time? How do you know where to spend it, and has that changed at all over the last couple years?
I find that my time is best spent with our customers and my team. Ideas and the success of their implementation come from that time spent. I don’t feel like that has changed substantially. I’m also spending more time exploring all the new developments that are expanding digital marketing options – and the trends regarding how consumers are using social media channels and mobile apps. These are areas where, out of necessity, I have been investing more time.

Drew: Let’s break down the time that you spend with customers. Your first round of customers, we could say, are the folks that your 3 million Independent Beauty Consultants. The Mary Kay Independent Beauty Consultants really define the brand for many customers. Do you spend time with both them and the end user?
Actually, the Mary Kay Independent Sales Force is our only customer, and to your point, they in turn have a customer base. I connect with the independent sales force in larger forums such as our annual Leadership and Seminar events. When I travel to international markets, I also attend sales events and solicit suggestions from the Independent Sales Force. We also include the Independent Sales Force in any research that we’re doing on major new products and new promotion concepts. I’m also “listening” to the independent sales force via our social media channels. In addition, we have an intranet where we’re receiving input from the independent sales force. Certainly, on the public social channels such as Twitter, Instagram, and Pinterest, we’re in touch with what they’re interested in, what they are talking about, etc.

Drew: You brought up social media; in one case on your Facebook page, there were more shares than likes, which is very unusual for a particular post. Would you say that a large percentage of those fans are your consultants?
Certainly a large percentage are Mary Kay Independent Beauty Consultants, but the total metrics and the types of engagement indicate that it is a combination of both Independent Beauty Consultants AND their customers who love the products. Our fan base is made up of women who love Mary Kay products, what the company is doing in the community, and also women love their Mary Kay beauty consultants! It’s definitely a combination.

Drew: For other brands, the concept of employees-as-brand-ambassadors has been very difficult to manage. At Mary Kay, the Independent Sales Force are the brand ambassadors. The role that social media plays for them is somewhat different; it’s an educational channel as well as a marketing channel for them, because they can share your content with their friends who presumably are also their customers. How do you manage that?
That is exactly our goal: to make it easy for them to access and share relevant brand content that supports the success of their business. We definitely provide a best practices example and make sure that the content we provide is timely to new product launches—we incorporate what’s trending in the beauty world, whether it’s the holiday season, the Oscars, how-to tips, etc.—and then we make it very easy for them to share. We have what we internally refer to as a “digital zone,” where we aggregate the digital content so that it’s easy to access and share.

Drew: One of the issues other companies have is compliance. In this case, it’s getting the Mary Kay Independent Beauty Consultants to actually use this intranet, so you end up having to market the marketing. How do you make sure that your consultants spend a little time on marketing versus spending all their time in the field?
We work to make sure the content is easily accessible. The goal is not to encourage them to spend a lot of time at their desk, but to have it available, as they need it, when they need it.

Drew: How do you manage your overall marketing, recognizing that success and failure are almost always determined by that Independent Beauty Consultant?
It really ties back to the strong values that Mary Kay Ash herself built into the company and into the culture. It’s something that’s literally been embraced by the Independent Beauty Consultants who’ve decided to start a Mary Kay business. Those values are around the Golden Rule, and treating people the way you want to be treated. It’s what we call “Golden Rule Service,” providing the kind of service that we would want for ourselves. When you ask how we manage the customer experience that individuals might have, I really credit the value system and the Independent Beauty Consultants’ commitment to those values. It’s something that’s shared and reinforced in how the company interacts with the Independent Sales Force, and then reflected in how they interact with their customer base.

Drew: Mary Kay as a company does not recruit or hire the Independent Beauty Consultants. Because the Mary Kay brand is in their hands, it is important that Independent Beauty Consultants share the company’s values. Is there a screening process that ensures a higher likelihood of signing an agreement with someone who has those shared values?
The culture is so strong, and this might be an oversimplification, but as it relates to the value system, like attracts like. In other words, the women who typically have interacted with an Independent Mary Kay Beauty Consultant have learned about more than the great products. They have learned about what the company is doing in the community. There are core values that resonate in regards to how the Mary Kay brand and opportunity are really about more than just cosmetics. It’s about empowering women, helping them discover their inner beauty, their confidence, their passion and their special gifts through the opportunity. There are typically meetings and discussions that the Independent Beauty Consultants and Directors would have with someone as they are considering this opportunity. It’s not a screening process per se, but there are conversations that help women understand the company’s culture and values as they are considering the Mary Kay opportunity.

Drew: Let’s get to specific marketing programs that you’ve done over the last three years where you were really proud of the results.
There have been a couple; the first took place in 2013. It was a campaign that was developed to commemorate our 50th anniversary, and our mantra for the anniversary year was “One Woman Can.” It not only paid homage to the accomplishments of Mary Kay Ash, but it also represented our empowerment message. One woman can do amazing things, and one woman can do anything that she sets her desires on. The marketing program, specifically, was centered on a global makeover contest. It kicked off on March 8th, which was International Women’s Day. Our goal was to complete the highest number of makeovers ever, and we did complete 44,000 makeovers within a 24-hour period. Earlier this month, Mary Kay Independent Beauty Consultants and their customers actually beat this record by completing 58,808 makeovers!

By engaging the Independent Sales Force all around the world, it kicked off a global contest where women not only participated in makeovers and agreed to have their picture posted in a gallery, but more importantly they had an opportunity to tell a story about a cause that they cared about. The winners of the contest also had an opportunity to win a grant for the charity or not-for-profit of their choice. The specifics varied a little bit, but in the United States, the company awarded 50 5,000 grants on behalf of the 50 women who received the most votes in the “One Woman Can” makeover contest. Mary Kay Ash started her company with her life’s savings of $5,000. This anniversary marketing initiative, therefore, celebrated what Mary Kay is about—inner beauty showing through as outer beauty. It was an opportunity to engage the Independent Sales Force not only with their current customers but also to connect with potential new customers. A lot of women shared that they typically wouldn’t be interested in a makeover, but because there was an opportunity to support a cause that they care about and possibly earn a grant, then they would be willing to lend their faces.

Drew: How did you promote this program?
We promoted it via social media. The Independent Sales Force outreach and PR coverage was a great way to tell the story to the media. We did get some great offline and online TV coverage that provided the opportunity to share our “One Woman Can” anniversary message and convey why we were celebrating with a makeover contest that was anchored by inner beauty.

Drew: Other than posts on Facebook and Twitter, could you enter via social channels?
Yes. The information on how to enter you could access through social channels, but you needed to enter through an Independent Beauty Consultant. If you didn’t have a consultant, we directed women to the consultant locator on www.marykay.com—you could enter your zip code and find an Independent Beauty Consultant in your area. That’s the way new customers were able to connect to the sales force.

Drew: How do you evaluate the success of your marketing?
We used several metrics. As a leading indicator, we were able to track our sales to the Independent Sales Force; that’s just one element. We were also able to track our social media metrics. We also have annual surveys of the Independent Sales Force to understand not only this type of marketing program, but in general how well our initiatives are supporting their businesses, and if there are any gaps or opportunities, what those are so that we can address them.

Drew: When you sit down with your CEO, how do you frame the role of marketing?
I frame it in the context of supporting the success of the Independent Sales Force. For example, when I talk to the CEO about social media initiatives, I don’t talk in terms of likes or fans but in the context of how social media engagement is driving awareness, consideration and trial of brand, since these activities support the Independent Sales Force. Just as you noticed some of our engagement numbers—we look at how the social media programs drive traffic to the website, to shopping pages, and the consultant locator. Our most compelling metrics are the ones that tie to the success of the Independent Sales Force.

Drew: You mentioned you have a global audience and it’s growing. As a CMO, how do you get to know these international markets?
My team and I spend as much time as possible with our international markets through our organizational structure, working with regional- and country-level marketing teams. It starts with a clear and consistent strategy from which the different marketing teams are able to develop their plans. They start with corporate strategy and programs but have leeway to be locally relevant.

Drew: Have you had to make product adjustments for markets outside the U.S.?
Yes. First and foremost, any regulatory requirements are going to be factored in. For example, in the Asia Pacific market, the skincare category is larger for beauty brands, so we do offer more skincare regimens in this market than in other parts of the world. In Latin America, where fragrances are a very highly developed beauty category, we offer more fragrances that have been specifically developed to deliver against preferences in Mexico and Brazil.

Drew: I love the 50th anniversary story—is there another initiative you would like to call to my attention from your portfolio as a CMO?
Another initiative is our college campus tours, which is actually in its third year. We call it “Fall Into Beauty,” and it’s been in partnership with Cosmopolitan and Seventeen Magazine. Importantly, beyond being an introductory beauty experience on college campuses, we have also partnered with a not-for-profit, LoveisRespect.org. Mary Kay has been the lead sponsor for their text support line. “Love is Respect” educates young women—more broadly, young adults—about healthy relationships. In a nutshell, the goal is to head off domestic violence before it begins. This organization targets younger women, and the text support line provides them with a confidential channel to ask questions either for themselves or on behalf of someone they care about and get advice on how to handle a situation, hopefully before it becomes abusive. They just need to text “loveis” to 77054. Our message on campus is about more than beauty—it’s about creating awareness about this service and about domestic violence in the hopes that young women who are away from home for the first time have the confidence to recognize and avoid unhealthy relationships, and help other young women do the same thing.

Drew: How do you evaluate the success of a program like that?
Specifically with “Love is Respect,” it is one of those things where, on the one hand, if you get a lot of comments and questions coming through that channel, you feel it’s good that those women had a place to go, but at the same time, part of you doesn’t want to see a high number because you feel like that might be indicative of a high number of women in a difficult situation. Our primary goal with “Love is Respect” is to create awareness and to disseminate that this help is available. The campus tour gave us an opportunity to get the word out about the text support line, leveraging the fact that college students are highly connected and can then pass that information on to those who would benefit from it.

Drew: I’ve read that interest in the Mary Kay opportunity is somewhat counter-cyclical—if the economy is bad, then more people are interested in running their own businesses. Does the cyclical nature of your business come into play as you think about your own marketing?
Yes, certainly. When economic times are challenging and when career opportunities are limited, we definitely see more people interested in the opportunity. Those who had a Mary Kay business part-time may decide to invest more time into it or even make it a full-time option. Having said that, the flip side is that when the economy is a little stronger and women are spending more money, it’s also good for the Independent Mary Kay sales force. When they are selling a great product and are part of a brand that’s doing great things in the community, that’s also appealing. From my vantage point, it’s always a good day to start a Mary Kay business. That’s how we approach the marketing. We always treat it as a new and exciting, rewarding opportunity.

Drew: Does content marketing play a role? Did you have any new initiatives in that area? Is that even relevant to your business?
On one level, I am more of an old-school marketer and I feel marketing has always been about the brand messages – not simply the advertising. Everything speaks –  I’ve always marketed with that in mind. But more importantly, brands should always be about discovery. Content marketing is about creating and keeping a fresh face on your brand – everyday! Content marketing is about all levels of the customer experience with your brand—all touch points, telling a relevant and consistent story. I’ve always tried to do that on any brand or portfolio I was responsible for.

Drew: As the CMO, have you been able to address the entire customer experience?
I’ve been able to influence and impact a number of dimensions, but it is shared with other team members in Mary Kay that have a more direct responsibility in terms of customer service and the Independent Sales Force. The ultimate influencer is the Independent Beauty Consultant herself, and this is consistent with how Mary Kay began this business. We use our company principles and education to make the brand experience as relevant and consistent as possible around the world. I believe my team and I have been successful in leading the evolution of the overall Mary Kay Brand experience, but I have to say it does take a village!