Offer Consumers a Meaningful Service: Understand What Your Target Needs, Deliver It and Stick With It

Published: July 28, 2008 in AdAge

It’s just common sense that if you give a little, you’ll usually get a little in return. But to paraphrase President Harry S. Truman, that (inadvertent) font of marketing wisdom, “If common sense were so common, more [marketers] would have it.” Marketing is nothing more or less than an exchange of value. The better the value the marketer provides, the more time and attention they’ll usually get back from their target. If the value delivered by the marketer is exceptional, then the consumer will pay back the marketer with loyalty and brand evangelism in good times and bad.

Marketing as service is about transforming your communications from mere messaging into an exceptional value that consumers will seek out. To quote Ad Age Editor Jonah Bloom, “Marketing as service is where brands actually give consumers something they want or need,” as opposed to hitting them over the head with messaging they’d rather zap or ignore. While Ad Age and others have chronicled examples of this savvy approach, no one to my knowledge has put forth a how-to guide for marketing as service, so let’s just say, the buck starts here.

Because of our relentless desire to cut through, we are an industry that always likes to focus on the latest and greatest. Ironically, much could be learned from the past. As President Truman put it, “There is nothing new in the world except the history [of marketing] you do not know.” Ad Age recently reported on a “new path” being pursued by Crocs to help pedestrian explorers with online walking guides. And while Cities by Foot is indeed a fine example of marketing as service, it is by no means a true innovation.

Threadless

Perhaps you’ve heard of the Michelin Guide. Way back in 1900, André Michelin created a driver’s guidebook to France to help drivers see the best restaurants of the country while keeping their cars in good shape. It included addresses of places such as gas stations, garages, tire repair shops, and public toilets. Set up 108 years before Cities by Foot, the Michelin Guide remains a quintessential example of marketing as service, educating customers, enhancing their lives and doing so in a highly relevant manner.

It’s hard to create a meaningful service for your customers and prospects if you don’t know all that much about them. And while some might choose to follow President Truman’s advice to “Always be sincere, even if you don’t mean it,” it is essential to have a genuine insight when pursuing marketing as service. Find that insight somewhere within the passions and miseries, the days and nights, the aspirations and disappointments, and the loves and hates of your target universe. Genuine insight will uncover a service that matters, a service the target will truly appreciate.

Street cred
Nike spent years hangin’ with action sports enthusiasts before it launched a social network on Loop’d to target them. After struggling to crack the code, Nike learned the hard way that this group is keenly sensitive to “posers” and will call out a false note faster than you can say “backside 360 ollie.” According to a Nike 6.0 spokesperson, “we reach out to our athletes for insight and validation. They are a crucial part of our brand, and we would not be where we are at without them.”

Some marketers have expressed concern about losing control of their brand in this newfangled Web 2.0 world. I urge them to consider these prescient words from the first president to address the American people from the White House, “It is amazing what you can accomplish if you do not care who gets the credit.” My advice to marketers is to just let go, because you aren’t in control anyway. Offer your customers a way to inspire subversive comic books, and reward their creativity with outrageous parties like Colt 45. “The Tales of Colt 45” program, now in its second year, celebrates “the most notable [customer] adventures involving the famed malt liquor” in a four-booklet series that also promote a five-market nightclub tour where new adventures will undoubtedly unfold. Or, like Jones Soda, maintain your cult following by letting your customers design your product labels.

Similarly, T-shirt company Threadless has built a reportedly multimillion-dollar business in eight years by encouraging its customers to submit designs and choose the shirts it will print. Best yet is Etsy, an online marketplace for handmade goods. Etsy has over 1 million registered users that it supports creatively with online classes and resource locations and conversationally with forums, blogs and chat rooms. They have also created a request-based marketplace where buyers can post what they want and sellers can bid on the job. In a recommendation economy, all of these represent powerful ways to drive positive word of mouth and build brand loyalty.

Marketers have a tendency to get tired of their successes far sooner than most consumers. The reality is that when you hit upon a really good marketing as service program, you need to stick with it for a while. Maybe you can’t foresee a 100-year-plus commitment such as Michelin, but how about more than a decade such as Camp Jeep? American Express has offered exclusives for gold- and platinum-card members for more than 20 years, and the BankCab has been driving customers to HSBC for more than six years. And lest we fall victim to the Truman proverb, “Being too good is apt to be uninteresting,” keep things fresh with periodic upgrades, ensuring that your marketing buck never stops working for you.

Savvy Marketers Deliver Service That Sells

this article was published by iMediaConnection on July 25th, 2008:

Recent Nike and Visa campaigns provide true value to customers and prospects. Learn how to boost your brand through similar online strategies.

Leading brands can maintain their competitive edge by transforming their communications from mere messaging to campaigns that provide genuine value to customers and prospects alike. Although a number of smaller brands have embraced the concept of “marketing as service” to expand their customer base and increase loyalty within their niches, it is even more telling when two savvy marketers like Nike and Visa shift ad dollars in this direction.

The notion of providing what some call “brand utility” via marketing communications is not necessarily new. (Consider Michelin guides, for example.) However, the ubiquity of the web and social media has created extraordinary opportunities in this area for big and small companies. And while neither Nike nor Visa is a newcomer to this pursuit, they have recently upped the ante with their respective online efforts.

Nike Boot Camp is a veritable tour de force that no aspiring soccer player should miss. Aiming to provide a “world-class training program,” Nike immodestly boasts that it can “turn you into a high-performance soccer player.” The company attempts to demonstrate its promise of “30 percent improvement in your power, speed and stamina” through action-packed, handheld video and inspirational comments from top players.

As one blogger described it, “It’s basically a digital soccer class you can take for either 4 or 6 weeks. Genius.” By providing this so-called class, Nike is demonstrating that it truly appreciates the ambitions of serious young soccer players. (Keep in mind that soccer is now the single largest participation sport in the U.S.) I’m personally not a fan of the company’s emphasis on the phrase “next level” (see my rant). However, after watching the site’s videos of men running with parachutes on their backs for resistance, I have to admit that Nike is setting new standards here.

Nike is hardly a newbie when it comes to using the web to provide valuable content to its targets. Earlier NikeFootball.com renditions included soccer trick video clips from all over the world that viewers could rate. This feature was both entertaining and useful, especially since kids could attempt the tricks they saw at home. Indeed, the utility of the old site was indisputable. Further, soccer isn’t the only sport for which Nike is allocating more marketing dollars and spending less on traditional advertising — the Nike+ program has been keeping pace with runners’ needs for the past two years.Just a few weeks ago, Nike 6.0 — which focuses on action sports products — launched a branded community for skaters, bikers and surfers on Loop’d. With its profiles and photo sharing, this community offers the usual functionality of a social network, but its users are also given the opportunity to compete for commercial partnerships — a pretty darn cool feature for enthusiasts. This program provides further utility with a mix-and-match mashup that can be ported over to other social networks like Facebook and MySpace.

Like Nike, Visa is an overall market leader — but not necessarily in every market segment. In order to gain currency with small business owners who have many other options, including both MasterCard and American Express, Visa recently launched the Visa Business Network on Facebook. Rather than simply running more ads (Visa spends a whopping $675 million or so annually), the company elected to provide real utility in multiple ways for the small office–home office, or SOHO, crowd.

Recognizing that small business owners might not have discovered the power of Facebook, Visa provides a series of pleasantly digestible bite-sized videos. Each video includes a real-life business, such as a cheese shop and an eyeglasses store, and demonstrates how the company tapped into Facebook’s highly viral network. Additionally, to make it easy for small businesses to get started, Visa is offering a $100 advertising credit to the first 20,000 that sign up. Talk about putting your money where your mouth is.

Visa is not just dipping its toes into this effort — it is diving in head first. Partners including AllBusiness, Entrepreneur, Forbes.com and the Wall Street Journal will provide relevant news and commentary to network subscribers. Google will provide support with mashups and online software, while Microsoft will bring its software heft to the party. All in all, Visa has arranged a veritable armada of content, tool kits and savvy that no small business would want to be without.

By helping these businesses connect with their customers online, Visa is providing a truly valuable service that should help the cash registers ring all the way around. We can certainly expect MasterCard and American Express to watch this social networking experiment very carefully and to serve up their own iterations at some point. Undoubtedly, they won’t be giving credit where credit is due.Even to the trained skeptic, the logic of befriending your best customers on Facebook is inescapable. Small business owners are particularly susceptible to word of mouth; positive WOM can drive customer acquisition, and negative WOM can send sales into a tailspin. A 2007 study by McKinsey found that 27 percent of all one-on-one conversations included some serious discussion of products or services.

The formula being employed by Nike and Visa is reasonably simple: create a service that prospects and customers can use, make it easy for them to share this service with their friends, and use advertising to jumpstart initial interest in the program. If the utility is there, prospects will inevitably become customers, customers will become brand evangelists, and neither will consider zapping the companies’ efforts.

This approach is not just for the big guys. Smaller companies can establish leadership within their niches by delivering genuine utility through their marketing activities. Constant Contact, a leading email marketing service, has managed to build a customer base of more than 100,000 small and medium-size businesses. About a year and a half ago, the company built a social network, ConnectUp!, for its customer base. ConnectUp brings together thousands of small business owners and entrepreneurs who help each other solve real business problems, as well as share and gain insights on marketing and other topics of interest. To date, more than 8,000 members have joined ConnectUp. As a result, Constant Contact has expanded its leadership position and increased its market share.

So whether you are a global giant or just hoping to be the largest fish in your pond, you can maintain and enhance your position by using your marketing dollars to deliver real and ongoing utility to your customers and prospects. The web has opened a number of ways to transform your marketing into service — service that will boost word of mouth, increase conversation rates and keep the cash register ringing all the way through this sluggish economy.

4 Tips for Brand Experiences that Stick

This article appeared on iMediaConnection on July 7, 2008.

Check out these simple ways to convert prospects into customers and then into card-carrying brand evangelists.

#1. Consider marketing as service

Brand experiences, whether physical or virtual, if done correctly can convert prospects into customers and then customers into card-carrying brand evangelists. These experiences are by definition interactive, encouraging dialogue and ideally an intimate and unforgettable dance between brand and consumer. Here are four thoughts on how to turn your brand experiences into dances of a lifetime.

When brands create experiences that provide a real service, magical things happen. Because “marketing as service” provides a real value, the brand pulls customers and prospects into it, rather than pushing a message at them. This natural engagement deepens relationships with existing customers, forms strong bonds with new ones and helps generate favorable word of mouth.

Charmin showed its get-up-and-go when it installed restrooms in Times Square, providing welcome relief for more than a half million holiday tourists. The service was unexpected, memorable, relevant and good clean fun. Samsung has electrified road warriors by installing mobile device charging stations in five major U.S. airports. Given the annoying paucity of outlets in terminals, this service is pumping up Samsung’s image as a friend indeed to the mobile world.

#2. It all starts with an insight — even chotchkes!

In order to cut through effectively, the experience must derive from a sound strategic insight relevant to the brand. While handing out fun premiums might drive traffic, it rarely builds brand loyalty unless it extends the conversation and reinforces what the brand stands for. When my company’s client, Panasonic, wanted to engage action sports enthusiasts, they needed an insight that gave them permission to “hang” with this otherwise skeptical crowd. The insight they found was that capturing and sharing tricks was an inherent part of the action sports lifestyle. Since Panasonic made the video and still cameras that captured the tricks, and the TVs to see them on, they had a legitimate reason to “Share the Air” with this community.

Panasonic’s Share the Air program featured a camera loaner program at each of the five stops of the AST Dew Tour. With the swipe of a driver’s license, attendees got their hands on a new video or digital still camera to record the cool tricks that they saw during the day’s competition. And to make the experience memorable, participants could take a Panasonic-branded SD card home containing all of their pictures. The Share the Air microsite kept the experience alive, allowing attendees to blog with their favorite athletes on a daily basis, and deliver incentives to purchase Panasonic products at local dealers. All of these elements combined to make Panasonic a brand of choice among action sports enthusiasts.

#3. Extend the experience seamlessly

Ideally, an event will accomplish a variety of goals beyond informing and engaging an audience and generating buzz/PR. One essential function of an event is to drive prospects and customers to a complimentary online experience. Not only will this help amortize the high cost-per-touch of an event, but also it will lead to a long-term customer relationship by extending the experience.

In a perfect world, a single agency should have the capabilities to execute these complimentary event and online experiences. This approach is the most cost effective and ensures consistency of look and tonality across all channels of communication.

#4. Measure, measure and measure again

The goal should always be to cut through the first time. To accomplish this, metrics for success must be established upfront. Marketers need to set benchmarks via pre-event research to compare with post-event data.

In addition to tracking event attendance; time with brand and perceptual changes and sell-in and sell-through, consider adding Net Promoter Score to your measurement arsenal. NPS is a simple and reliable way to measure the likelihood of someone recommending your brand to a friend (i.e., word of mouth). Since NPS can be measured online as well, it will also help you understand if your online experience is as strong as the offline one.

Additional online metrics, including unique visitors, time-on-site, pre/post NPS and online commerce data (if relevant), will help complete the tally, ensuring you know which elements should be cut and which cut through.

4 Ways To Get The Most Out of Your Brand Experiences

as appeared on TheCMOclub.com 5/28/08:

#1. EMBRACE MARKETING AS SERVICE
Because “marketing as service” provides a real value, magical things happen, prospects turn into customers and customers turn into brand evangelists. When HSBC wanted to bring their position “The World’s Local Bank” to life in New York City, Renegade developed the HSBC BankCab. The iconic Checker Cab, wrapped in HSBC red and white, drives the streets of New York five days a week, offering free rides to existing customers. Research has shown that customers exposed to the BankCab recommend HSBC to at least 5 of their friends and are twice as likely to stay loyal to HSBC for years to come. For more examples, see Marketing as Service.com.

#2. EXECUTE STRATEGY, NOT TACTICS
In order to cut through, effective brand experiences must be borne of relevant strategic insights. Handing out free stuff might drive booth traffic but the end result is rarely lasting. Since the goal is engagement, the marketer must truly understand their prospects. At the AST Dew Tour, Panasonic understood the target’s desire to get closer to the athletes. So, Panasonic set up a free camera loaner program that let fans zoom in and record the cool tricks that they saw during the day’s competition. At days end, they got to take home a Panasonic SD card saving all their memories that they could then enter into a photo contest at the complementary online experience–ShareTheAir.net.

#3. SEAMLESSLY INTEGRATE YOUR EVENT AND ONLINE EXPERIENCE
One essential function of an event is to start a conversation that can be continued online long after the event. Not only will this defer the high cost-per-touch of the event, but also, it will extend the brand experience leading to a long-term customer relationship. For the most impact, the event and the online experiences should be planned at the same time supporting each other (event drives to online, online drives to event) and complementing each other. Consider hiring one agency that is equally adept at creating both event and online experiences. This approach is more cost effective and assures consistency across all channels of communication.

#4. MEASURE TWICE, CUT ONCE
The goal must be to cut through the first time. To do this, metrics for success must be established upfront. Marketers need to set benchmarks via pre-event research to compare with post-event data. In addition to tracking event attendance, time with brand and perceptual changes, sell-in and sell-through, consider adding Net Promoter Score to your measurement arsenal. NPS is a simple and reliable way word of mouth. Offline line metrics should be compared and tracked to online data including unique visitors, time on site, pre/post NPS and online commerce data (if relevant.)

Tweaking brands mid-stream

This is the second of two columns on nonprofit branding (first appeared 5/13/08 on PhilanthropyJournal.com)

Branding began with cows, as a way to keep ranchers’ herds distinct. But in the nonprofit world, brands play an equally important role in helping donors and constituents determine which herd to join and which to steer away from.

Changing cows mid-stream

A lot of non-profits start out with a core group of supporters that are well attuned to the group’s initial mission. These special friends have contributed the blood, sweat and cash that has sustained and nurtured the organization. They often live and breathe your brand and have a proprietary feeling about the cause.

And this is all goodness until the organization starts to grow and the services offered expand, often beyond the original mission and interests of the early supporters. This is the point at which you will wish you had a name that wasn’t so restrictive, and there may be a temptation among some to change the name to address this expanded purview. My advice-don’t do it. Don’t change cows mid stream. It is far more dangerous than you think and could set the organization back for years. Awareness takes time and money to build, time and money that you can put to better purposes.

Blazing new trails

Just because I suggested you shouldn’t change your name doesn’t mean you can’t expand your mission. The trick is to do this and not completely alienate your early supporters. Part of the trick is not trying to do everything at once. Pick your new trails carefully and don’t overreach. Invite the core group of supporters into the process and ask them both to trouble-shoot and lead one of the new expeditions.

At the same time, start to mix in a fresh group of supporters that are truly enthusiastic about the new path forward. Their enthusiasm will be infectious and many of the old guard will see the light. For those that don’t, it might be time to create an “emeritus board of advisors” that focuses on the old mission and provides a place for them to remain comfortable with the organization.

Divide the herd

If you are truly concerned about losing the financial support of your early supporters, you may need to think about dividing your communications into two segments, one for the old guard and one for the new. This assumes you have a database of your constituents and can segment your email and mailing lists. If you don’t know how to do this, reach out to any number of organizations like Charity Focus that can help you set up the required technical infrastructure.

Once you have the lists divided, you can send customized communications and solicitations that promote the interests of that particular segment. It’s a little more work but it will pay off very quickly since you won’t have to replace your old fans with a bunch of new ones. Don’t panic if your new course frightens the herd. While there are unknown dangers in uncharted courses, going backwards is rarely a good alternative.

You must be brave, holding the reins of your brand with steadfast determination.

Good Brands Don’t Hurt

This article was written in two parts for Philanthropy Journal, the first appearing May 6, 2008:

Good Brands Don’t Hurt (part 1)
The first brands were burned into the hides of cows. This was painful for the cow but good for the rancher who wanted to keep track of his herd. Later on, certain brands began to be known for the quality of the beef and this helped that rancher get more money per pound than his lesser-known competitors. Other brands become known for always being on time to market, while still others found a position as the low-cost, high volume offering. In the nonprofit world, brands play an equally important role, helping donors and constituents determine which herd to join and which to steer away from.

Start off on the right hoof
Choose your name wisely since you’ll be living with the implications for years to come. Brand names that have a specific meaning are helpful at the beginning by providing some context for your various constituents. “Make a Wish” is such a name as it clearly defines the end benefit of the organization. “Children for Children” is another such name identifying the operational “playground” of that charity. “Doctors without Borders” is another example of a name that encapsulates the mission quite succinctly.

All that said, because of the specific nature of these names, at some point in their growth cycles they may find it difficult to evolve past their original tactically-focused mission. Names like Red Cross and United Way, while less specific, have the advantage of being easy to remember and general enough to encompass many forms of charitable activities.

Careful grooming pays off
With a carefully crafted name in hand, take some time to get your logo right. Run a contest at a local design school or online to collect some options to review with your board of directors/advisors. A great logo will set the tone for the brand and all subsequent communications. A boring logo will be lost in the sea of sameness.

One example of a great logo is Children for Children’s. It is sophisticated yet simple, appealing to both kids and adults, a move that is essential for this particular charity. The Children for Children logo has inspired the graphic look and feel of its website, and all other communications. The logo even plays a prominent role in the invitation to their annual benefit, which has an art theme and features variations of the logo inspired by famous artists like Van Gogh and Chagall.

Getting the right name and logo are essential in the early stages of brand development. These will force you to define your mission, values and target audience since without these prerequisites, you’ll just have a cow.