Tag: renegade

CMO Insights: The Importance of Innovation

Posted on by Drew Neisser

In October 2008, Barbara Goodstein, Chief Marketing Officer of AXA Equitable was only slightly nervous as her company launched an unprecedented customer retention program called MyRetirementShop.com.  Creating a “retirement portal” more focused on “value add” than lead generation, Ms. Goodstein was moving her company into unchartered territory, delivering a “marketing as service” program that became far more successful than even she had anticipated.

Since its inception, MyRetirementShop.com has attracted over ½ million visitors who spend a whopping 11 minutes browsing highly relevant content from top experts like Kiplingers, Service Magic and MyRecipes.com.  Current customers were quick to thank AXA for this resource with not just words of praise but also by buying more AXA products, generating revenue far beyond the program’s cost. The press responded to this innovative marketing approach with over 200 stories that yielded an equivalent of $4.0mm in paid media coverage.

Since the old proverb “success has many fathers but failure is an orphan” also applies to marketing, it is often difficult to get the real story on what it takes for innovations like MyRetirementShop.com to come into being.  In this case, however, after an extensive interview with Ms. Goodstein in which she reviewed the development process, it became very clear that her journey has provided a textbook case on innovation, yielding the following seven critical elements of success.

1. Innovation Starts at the Top

Ms. Goodstein is no stranger to innovation.   Having guided the highly effective 800-Pound Gorilla advertising campaign for AXA into being four years ago, she knows a big idea when she sees one and she knows how to stretch a budget for maximum impact.  But she is also the first to acknowledge that “innovation more than anything starts at the top” and that if her CEO, Kip Condron, didn’t encourage and support innovation, her efforts would never see the light of day.  With senior management saying, “We should try multiple creative options and see what’s going to work,” and encouraging innovation with financial incentives, the virulent skepticism that typically inhibits new idea development is diffused if not silenced.

2. Listen to Your Customers

The impetus for MyRetirementShop.com sprung from an annual study AXA conducts among its customers. According to Ms. Goodstein, “We built MyRetirementShop.com on years of data that revealed the topics that were most relevant to pre-retirees, so we just had to take all of this content and make it accessible.”  Pre-retirees noted their interest in everything from home and family to health and fitness, from travel to finance, from self-improvement to entertainment.  So it came as no surprise to Ms. Goodstein that these topics gained traction with their target.  The only surprise was divergence between the expressed interest in volunteering and concierge services in the research versus the actual behavior on the site.  Ms. Goodstein speculates that disinterest in these areas may be more a reflection of current economic realities than the ultimate value of the content.

3. Make Sure It’s Truly Innovative

Before developing MyRetirementShop.com, Ms. Goodstein and her team did an extensive review of retirement portals and competitor’s websites.  When it was clear there was nothing like it out there, the AXA team then “did our own screening to find the best possible content providers.” According to Ms. Goodstein, “It took over a year to line up all the partners, and an internal SWAT team dedicated to every area of the site” to pull it all together. To insure relevance, they insisted that all the content had national reach and users could even “drill down by zipcode.”  And though much of MyRetirementShop.com content exists on other sites, AXA is the first to aggregate it all in one place, and is the only retirement portal without highly intrusive advertising.

4. Service First, Then Branding

The intention of MyRetirementShop.com from the beginning was to be a service – not an advertisement, a service that would help retain existing customers, and one that would reflect the deep expertise of AXA Equitable and its sincere commitment to help consumers with retirement planning.  “We wanted the site to be value add” noted Ms. Goodstein, “and we didn’t want it to be a commercial for us.” This commitment to service had a strong influence on the design of the site, which has almost no AXA ID other than their 800-pound gorilla who serves as “branding anchor and host.” The now familiar gorilla sits on top of each section and offers a “pithy audio message” that Ms. Goodstein anticipated “would create more of a connection” with site visitors.

5. Service First, Then Sales

Once the site was launched, AXA representatives were provided with a number of tools to share it with existing customers.  Direct mail, email and brochures described the content and invited customers to visit the site.  Then the unexpected happened, this so-called retention program started generating sales. “For $40 worth of DM, our reps generated an incremental $60,000 in sales,” added Ms. Goodstein with glee.  Suddenly the sales team that usually put the kibosh on programs considered “non-revenue generating,” embraced the site, acknowledging its power to increase sales among existing customers and even to attract new ones.  By providing a genuine service to its customers and prospects, AXA found a friendly way to break the ice and renew the conversation about retirement with a now receptive target.

6. Innovation Requires Perseverance

MyRetirementShop.com took over two years from conception to launch, with multiple hiccups along the way.  Getting the technology right was challenging and the site, which was developed by internal IT resources, went through several iterations.  “It took us a while to get it right,” acknowledged Ms. Goodstein and of course, she did not have “universal support initially.”  Importantly, AXA Global and top management voiced their confidence in the project, which Ms. Goodstein gained by outlining a clear vision, defining the content with crisp wireframes and by providing prototypes that fueled expectations.  By demonstrating what it would look like and never wavering from the quest, Ms. Goodstein and her team were able to build consensus from top to bottom, setting the stage for its ultimate success.

7. Don’t Rest on Your Laurels

Despite exceeding expectations on every metric, Ms Goodstein and her team continue to seek ways to improve MyRetirementShop.com.  New original content is in the works that will simultaneous enhance the visitor experience and increase the natural page rankings on the search engines. New content partners that could increase consumer appeal are being evaluated.   “We are also going to change the enroll button so interested visitors can reach us more easily” added Ms. Goodstein who marveled at the unexpected benefits of a true “value add” program, “Because we are willing to work so hard, people want to connect with us.”

Bottom line: Marketing innovation is neither easy nor linear, requiring support from the top, a clear vision from the start, steadfast determination along the way and ultimately a desire to do right by the consumer, a consumer that will thank you many times over with not just words of praise but also their pocketbooks.

 


10 Olympic-Sized Ideas for 2010

Posted on by Drew Neisser

As Second City moved down to fourth in their failed bid to host the 2016 Olympics, President Obama elected to use a sports metaphor to soften the blow. Noted the First Chicagoan upon his return from Copenhagen, “You can play a great game and still not win.”

Looking ahead to 2010, marketers will be facing Olympic hurdles that will require steadfast agility just to stay in the game, much less to hit the finish line ahead of the competition. Here are 10 ideas, wrapped in Olympic glory that should deliver the gold.

1. Social Media: A Marathon, Not a Sprint
Hoping to become fast friends with their targets, a lot of brands rushed into Facebook and Twitter in the last 24 months without investing sufficient time or resources. In 2010, savvy marketers will increase their commitment to social media by first listening and then offering up a steady stream of engaging content that their fans actually want. This will be particularly true for B2B brands, only 38% of whom included social media in their 2008 marketing plans (vs. 71% for B2C brands). With one comScore study indicating that branded social media activities can have a multiplier effect on search results, there is even a quantifiable rationale for brands to up the social media ante in 2010.

2. Mash-Ups: Taking Inspiration from Biathlons
A few innovative marketers took a shot at mash-ups in 2009. E.P. Carrillo, a new cigar manufacturer, created a mesmerizing Twitter and Google Maps mash-up for its “coming soon” site that tracks cigar tweets from around the world. In 2010, these kinds of mash-ups will become smoking hot as marketers look to extend the value of their social media activities. Recognizing that tech-savvy consumers glide seamlessly between personal and business, online and offline, mobile and desktop, farsighted marketers will bring together formerly disparate elements into a cohesive and self-perpetuating social media experience.

3. App Happy: On Your Mark, Get Set, Go Crazy
Given the success a handful of marketers enjoyed with their “apps” in 2009, expect a blaze of new entries in 2010. iPhone apps that provide demonstrable utility like Kraft’s iFood Assistant recipe finder, Benjamin Moore’s color matcher and Zipcar’s GPS-based car finder will continue to gain traction. Expect more app’s that integrate with other social media like the Gap StyleMixer that allows you to mix and match clothes and share them with friends on Facebook. And don’t forget the non-iPhone universe. The steakhouse Maloney and Porcelli cooked up a humorous and somewhat deviant web-based app at Expense A Steak that extrudes faux expense reports with stunning verisimilitude.

4. Measure Up: Track Every Second
With more dollars earmarked for social media, marketers will undoubtedly use new tools to monitor the conversations that are happening with or without them. Radian6 and Scout Labs emerged in 2009 as two of the leading social media monitoring tools. MolsonCoors uses Radian6 to stay on top of all the banter about its major brands, allowing them to respond with remarkable speed to one of my blog posts about a Coors Light Twitter account that turned out to be unofficial. And while these tools are great, each requires a sizeable commitment by the marketer in time of staff, a commitment that can and does pay off. Just ask JetBlue who manages to enhance customer loyalty daily by responding to any and every customer Tweet within minutes, following 117,000 on Twitter, and in the process generating over 1.3 million followers.

5. POV Power: Don’t Just Talk the Talk
While lots of brands raced into social media in 2009, few established true connections with their targets. The reality is that consumers engage with brands that they like on a visceral level and that provide a distinct perspective on the world. Aflac’s Duck quacks up a gaggle of quirky content, including charitable requests that appeal to over 161,000 fans on Facebook and 3,000+ followers on Twitter. Meanwhile, Geico’s Gecko has been left in the social media dust due to its surprisingly dry (twitter.com/geico) and unresponsive (facebook.com/geico) online voice. Ironically, a brand by definition is a point-of-view that once clearly defined should guide all communications, social or otherwise.

6. Expose Yourself: Win the Crowd With Honesty
The emergence of several “tell all” consumer-created sites signals the arrival of a new era of honesty and transparency – especially for brands targeting those under 35. Sites like fmylife.com, textsfromlastnight.com and MyParentsJoinedFacebook.com reflect a generation willing to bare and share all without the least trepidation. Even the emergence of “Untag Mondays” speaks to the socially acceptable norm of posting embarrassing content that one might not want a parent or employer to see. Marketers that share this sense of honesty, that admit mistakes and address shortcomings in real-time will find a youthful army of comrades willing to do their bidding. As Comcast discovered, this kind of honesty can even transform a PR nightmare (comcastmustdie.com) into an industry-leading customer service (http://twitter.com/comcastcares.)

7. Hold the Presses: Major Comebacks are Possible
Though a 50% decline in ad pages certifies 2009 as the worst year in its history, don’t write off print as a viable media channel just yet. Over 80% of US consumers still subscribe to at least one magazine and 83% believe newspapers are still relevant. Experimenting with video in print pubs like Entertainment Weekly is but one of the ways certain magazine segments will hold onto their targets and satisfy their advertisers. Fashion magazines and enthusiast pubs continue to offer a visual showcase that is far superior to what most e-pubs can serve up. Models, both human and auto, simply look prettier in print. And while P&G shut down its 72-year-old TV soap opera Guiding Light in 2009, they are cranking up the presses with the custom published glossy, Rouge, which expects to reach a whopping 11 million North American households in 2010.

8. Go to the Video: Separate from the Pack
The emergence of viral video rankings in 2009 reflected the mainstreaming of this approach to audience engagement. While everyone and their branded brother aspired to cut through with a viral hit, surprisingly few found an audience. In 2010, marketers will undoubtedly crank out more of the same while a savvy few will worry less about mass reach and focus more on grass roots appeal, providing content that their core target really wants. B2B marketers in particular will find that using informative videos that transform the complicated into the comprehensible, like Commoncraft’s Plain English videos, will generate quality leads from grateful prospects.

9. Mobile Media: Catching Up at Last
Despite all the hype by this author and others, less than a third of marketers had a budget for mobile in 2009. In 2010, smart phone penetration should rise to at least 25% (from 17% in Q2 ‘09) making it a lot easier to deliver a rich mobile experience worthy of consumer attention. The blending of mobile and social apps like Facebook, Loop’d and Twitter has also created a new openness towards this medium.
Given the desirable demographics (18-34, HH income $75k+) of smartphone owners, at minimum, marketers should give strong consideration to creating a mobile friendly website, thus allowing prospects to engage whenever and wherever they happen to be.

10. Be Positive: Attitude is Everything
While honesty is a worthy friend to marketers, don’t forget that almost no one wants to date a Debbie Downer. A recent poll by Adweek/Harris found “relative little enthusiasm and lots of indifference for ads that refer to the downturn.” Even if the economy is slow to recover in 2010, find the silver lining for your customers and prospects with both words and actions. Like the athletes whose positive outlooks and superior skills propel them to victory, so, too, can marketers find success with an upbeat message and an unimpeachable value proposition.

May 2010 Serve You Well
While 2009 hasn’t been much fun for most marketers, there are many reasons to be optimistic about the approaching year. There are more ways than ever to engage with consumers and a new willingness from consumers to engage with brands. Marketers are showing a renewed desire to listen to their customers and offer “marketing as service” that favors the dissemination of meaningful value over disruptive messaging. So here’s to serving your customers but serving up some great marketing in 2010!

Timely Tips on Experiential Marketing

Posted on by Drew Neisser

BRANDWEEK ran an expansive special section on Experiential Marketing this week that included some pithy quotes from yours truly. Since this is a topic I tend to think a lot about, here are extensive notes from my conversation with BRANDWEEK reporter Michael Applebaum a couple of months ago.

Great experiential marketing programs

Experiential marketing comes in a lot of flavors which makes it tough to generalize what makes a program great. For some clients, it is enough to have created an engaging trial-focused experience during which the consumer consumes the product or service in a reasonably memorable fashion. For others, the ultimate goal is buzz, as measured by PR coverage, word of mouth or on occasion trade reactions. Still others seek to establish a continuing relationship with the target, so online registration becomes the ultimate measure of effectiveness. A truly great program, in my opinion, does all of the above and then some.

A truly great experiential program first and foremost is so appealing the consumer wants to engage with the brand. It is the opposite of disruptive advertising which like an unwanted door-to-door salesman intrudes into the home. Great experiential marketing is not shoving a donut in someone’s face on the street and then saying “try our bank.” To be appealing, marketers need to offer a reasonable exchange of value, during which the consumer gives up his/her time while the brand provides the experience and usually some free stuff!

Done correctly these experiences can have exponential impact which is important since 1:1 experiences can be pricey. If an experience is targeted at the right influencers, then these influencers will undoubtedly share their experiences. If the physical experience has an online component, then there is an opportunity for both WOM and a deeper relationship with that consumer. If an experience is sufficiently newsworthy, millions of other interested parties can be influenced by the event(s).

Renegade’s rules of thumb for a great experience are as follows:

  • the experience is fresh enough that the press wants to write about it;
  • the experience is relevant to the story you want to tell about the brand;
  • the experience has legs well beyond one single event and/or one single communication channel;
  • the experience is entertaining and enlightening;
  • the experience is so engaging that the consumer wants tell his/her friends about it.

This is not about just getting attention. There is an old adage in our business, “If you want attention, put a gorilla in a jockstrap and stand him on a street corner.” This is about engagement. Mutually beneficial engagement.

Lots of industries are turning to experiential marketing

Food and beverage companies are old hands at this since sampling is essential to growing their businesses. Brands like Pepsi AMP go to extreme lengths to sample their product to the right target–they handed out as many as 5 million samples this summer. Alcohol brands are creating mini-experiences in bars, clubs and restaurants with extraordinary frequency across the US. Entertainment companies like to include experiential programs in the mix often with the hope of creating a “must see” buzz prior to launch. B2B brands are also crafting experiences with greater frequency (examples available if you need them).

Lately, we’ve been noticing a lot of brands pulling from the Experiential 101 Playbook:

  • The World Record—Wise potato chips set the world record for most chips crunched at the same time at a Mets game this summer. Not exactly New York Times material but surely some pub out there besides the Guinness Book was interested.
  • The Pop-Up Store–Southwest Airline is the latest airlines to set up a pop-up in Manhattan theirs being a café-like setting in Bryant Park. Now defunct Song tried a pop-up store in 2004—unfortunately the store experience was better than the airline itself.
  • User Generated Content—a lot of experiential programs start by asking the consumer to create some kind of content. HSBC’s Soap Box and JetBlue’s Story Booth (both by JWT) ask the man on the street to provide their points-of-view. This “content” was then turned into ads and online communications. A smaller scale example comes from a small Canadian Beer Company called Okanagan Beer that challenged consumers to tell them why the brand should sponsor their events/parties. This content was then repurposed into a 360° campaign and sales jumped 30% — this is definitely on my list of “wish we’d done that.”

There are lots of ways to measure experiential marketing

As for research, there are so many different kinds of experiences and a corresponding amount of measurement tools depending on the objectives. We like to use Net Promoter Score on a pre/post basis as a measure of the experience itself. We have seen 30-40 point swings in likeliness to recommend a brand to a friend after exceptional experiences. In theory, every brand can measure the value per customer gained and/or the value of increased loyalty per customer. For example, if a brand experience makes you twice as likely to buy and/or recommend a brand, then one can compute the increase in lifetime value of that customer. That said, the math can get fuzzy pretty quickly. That’s why PR coverage is so important. Great press coverage can extend the reach of a program, making it more comparable to measuring the effectiveness of a media or PR program.

Latest trends in experiential marketing

First, mobile devices are becoming integral parts of brand experiences. An iPhone app can start an experience. An in-bar trivia contest answered via text messages can start an engagement. Mobile is part of a bigger trend to integrate technology into the experience and extend beyond the physical into the virtual world. Event experiences are often extended via Facebook and Twitter programs. Event experiences can be used to introduce on online extension, like Frito/NFL’s hunt for the most “fanatical football family.” And of course, social media is playing an ever increasing role in starting and extending brand experiences. An experiential program Renegade created for Toasted Head wine has evolved into an on-going Facebook program that keeps the faithful engaged.

Second, microevents are starting to get big. Royal Caribbean held 1000+ “Cruisitude” parties at homes of former cruisers. As I mentioned earlier, alcohol brands are hosting small events at bars almost nightly to engage their targets.

Where to start

Marketers are best to start with “the why,” not “the how.” If they know why they want to create experiences then it is much easier to figure out the how. If trial is key, then the experience can be built around that. If they are doing it to stretch marketing dollars, then getting buzz & PR should probably be the top priority. From there, we recommend marketers focus on “the do,” not “the say.” What is it that you can do for your target that will make them want to engage with you? Sometimes “the do” is just free stuff but often “the do” can be more substantial. Sports car owners like to drive fast but rarely get to do it legally. “The do” for BMW was a Performance Driving School for its customers. Road warriors scamper about airports looking for places to charge their gear. “The do” for Samsung was charging stations in airport terminals.

Shaky Shack?

Posted on by Drew Neisser

The Dallas Morning News carried an interesting story on Radio Shack’s new marketing campaign. The reporter, Maria Halkias included a lot of commentary from yours truly so I thought I just post the whole story. Enjoy.

RadioShack to launch rebranding effort as The Shack

RadioShack is trying to turn up the volume on its image by turning off the “Radio” and calling itself “The Shack.” Not to be confused with the Shaq who’s famous in basketball circles, The Shack apparently is a nickname that employees, customers and investors have used for RadioShack.

The Fort Worth-based consumer electronics chain’s rebranding effort begins Thursday with a national television, print and digital campaign and the start of a three-day launch event in New York’s Times Square and San Francisco’s Justin Herman Plaza.

The bicoastal hoopla will include 14-foot laptops hooked up to webcams for live video and audio exchanges. The company isn’t changing the name of its stores. Chief marketing officer Lee Applbaum said the nickname is an attempt at “contemporizing the way we want people to think about our brand.”

“The Shack speaks to consumers in a fresh, new voice and distinctive creative look that reinforces RadioShack’s authority in innovative products, leading brands and knowledgeable, helpful associates,” he said. The company believes it has “tremendous equity in consumers’ minds around cables, parts and batteries,” Applbaum said. Now it needs to get consumers thinking about its ability to keep them “connected in this highly mobile world.”

Ads in the campaign will focus on mobility and wireless products from AT&T, Sprint, T-Mobile, Apple, BlackBerry and Samsung. “Radio Shack is in a desperate battle to remain relevant,” said Drew Neisser, chief executive of Renegade, a New York-based brand marketing agency.

“The name RadioShack is a quaint artifact in a rapidly evolving marketplace in which mobile devices have become the CE [consumer electronics] portal. Using The Shack as a nickname is a bid to update its image and represent the passion loyalists have for the brand,” he said.

However, company leaders may be “hedging their bets,” he said.

When Federal Express decided to become FedEx, consumers had already been calling the company that, and using the shortened name was a no-brainer, Neisser said.

“If consumers are really already using The Shack, then why not commit fully?” he said. “The only reason I can think of is that they are worried about abandoning the awareness and any positive equity remaining with their old name.” Using The Shack in ads only, “the whole thing could come across as forced at best and confusing at worst,” Neisser said.

The creative campaign was developed by Butler, Shine, Stern and Partners of Sausalito, Calif., which was named RadioShack’s creative agency of record in April.

Evolving from Chief Miracle Officer

Posted on by Drew Neisser

A few weeks ago I had an interesting conversation with Todd Wasserman of BRANDWEEK about the evolving role of the CMO. Todd’s insightful article appeared this week in both ADWEEK and BRANDWEEK and included a few quotes from yours truly which he interpreted as complaints. Since my thoughts were more observations than laments, I figured I’d post my notes from our conversation:

The CMO has evolved from Chief Miracle Officer to Chief Minutia Officer. The CMO used to be charged with creating a marketing miracle, finding that magical ad campaign that would have a multiplier effect on awareness, excite the trades and ultimately drive sales. If the CMO couldn’t deliver such a campaign either he/she or the agency lost their jobs and replacements were found. Just about every CMO wanted a mass media brand-building campaign like the Aflac Duck or the Geico Gecko.

Then along came Google complete with truly measurable results and tectonic plates of marketing started to shift. Suddenly CMO’s were emboldened to say “I only want to do what produces measurable results” and the super savvy ones had a dashboard with real time information from search clicks to web traffic to online buzz to 800# calls to retail sales. Jim Garrity, the former CMO of Wachovia was on the forefront of this trend, studying all the data points with unrelenting passion. Business Week profiled Garrity back in 2006 and noted he “sounds like a man who never met a data point he didn’t like” and “Garrity and those like him are quietly reworking the advertising mix of the American corporation.”

This new kind of CMO is less interested in the monumental and more in the incremental, seeking a steady diet of singles and doubles over the infrequent but more showy grand slam. This is not necessarily a bad thing either. The more metrics that a client has in place the more likely that an agency can prove that what it does for the client actually works. It also means that the CMO has a better chance of keeping his/her job for more than 24 months. CFO’s are far more likely to increase the budget if the business case is there to justify such an increase. This methodical approach also dovetails nicely with the current “make more out of less” economy.

For the record, I applaud this new kind of CMO since they make sure marketing aligns with sales and the metrics for success are clear from the beginning.  Without these two factors in place, it will take more than a miracle for even the best of agencies to build a successful partnership.

AmEx Open for Service

Posted on by Drew Neisser

American Express has been committed to the notion of Marketing as Service for a long long time and their programs have been featured in this blog (many, many times). This commitment continues even in the current economy as reported by fellow Renegade, Trip Hunter:

Yesterday at the B-B breakfast I saw Marcella Shinder, the VP of Brand Strategy for Open from American Express speak about their marketing efforts during these troubled times. Aside from the fact that she was the only optimist of the group, what appealed to me most was how Open is using Marketing as Service to deepen their relationship with their customers. Marci explained that their mission is to provide tangible ways to help small business manage and grow that are appropriate to the times.

Sounds like a bunch of marketing speak until you visit openforum.com, a social networking/resource site designed to facilitate information sharing among small business owners. Besides the wealth of information that many small business sites have, Open Forum seems to go a step farther by creating a robust social network where members can engage with the best small business bloggers, or join forums concentrated around their topic of choice.

Home page of American Express Open Forum
Seems like a good time to me to be charged about Marketing as Service. Assuming small businesses continue to use this service and find ways to survive now, surely they will be that much more loyal to American Express when its time to thrive.