Friday, April 24, 2009

The Allure Of Action Sports


The Allure Of Action Sports
Gen Y is drawn to action sports. According to America Sports Data (2007), in the U.S. alone there are 11.6 million skateboarders, 6.88 million snowboarders and 3 million BMX participants, and, of these numbers, the majority is between the ages of 18 and 30. The action sports allure comes not only from the fun, but also from the freedom. Whether it's skateboarding, riding a BMX, surfing or snowboarding, it comes down to you and the elements.

In action sports there are no rules, only technique. The way two people arrive at learning a trick can be completely different from each other, and each will develop their own style in the process; and in action sports style is everything.

This process of personal expression usually leads practitioners of action sports to explore other ways to express their individuality and creativity. Skaters and surfers often become musicians, painters, actors or artists of some type -- no other sport is so tied to a broader youth culture. In action sports, young people find a community that not only encourages but celebrates their natural creativity and individuality.

Action Sports in Mainstream Culture

It's difficult not to notice the immense popularity action sports has gained over the last 10 years. TV's bastion of youth culture, MTV, can credit some of its most popular shows to action sports. "The Life of Ryan," "Viva La Bam," "Jack Ass," "Rob and Big," "Rob's Fantasy Factory" and "Nitro Circus" all are shows based on action sports and the lifestyle.

Action sports events like the Dew Tour and X Games pack traditional sports venues and receive coveted broadcast coverage. Skaters like Jason Lee and Dave Chappelle have become famous actors, skateboard legend Mark Gonzales has become a famous artist, professional surfer Jack Johnson has become a renowned musician. TV networks like "Fuel TV" broadcast only action sports, XM radio station "The Faction" only plays "the music of action sports." Woodward has a camp catered to action sports and an increasing number of schools have surf PE, skateboard PE and snowboard week. For decades, its impact was slow and steady, but over the last decade, action sports has become woven into the fabric of youth culture.

Corporations Join the Fold

As endemic companies like DC, Billabong and Volcom become household names, it's little surprise that riding the coattails of this popularity are many corporations, including Nike, Gatorade, Converse, Adidas and Toyota, to name a few of that have created action sports programs.

The amount of money spent on traditional sports marketing far exceeds what is spent on action sports, yet action sports continue to replace traditional sports in popularity -- with participation numbers in action sports rising at the expense of traditional sports.

The power of the action sports market has yet to be completely realized. For non-endemic corporations, breaking into this market isn't as easy as it may seem. Skaters, surfers and snowboarders traditionally are leery of non-endemic brands.

Here are some tips for marketing to the action sports demographic:

  • Before the start of your project, speak with young people who are invested in action sports culture to educate yourself and your staff
  • Whether they are pro athletes, amateur athletes or other respected personalities in action sports, get well-respected "ambassadors" to help be the face and voice of your brand when trying to reach young people
  • Sponsor grassroots action sports events and competitions, not just the large, made-for-TV events
  • Advertise in endemic print and online outlets
  • Hire photographers who specialize in the respective action sport to photograph anything you are doing in the sports

Wednesday, April 22, 2009

Talking Twitter....

Talking Twitter!

It seems that in the past month or so alone -- with headlines about The Real Shaq, Jon Stewart's Comedy Central critique, and addicted-to-it admissions by major news anchors and, especially, Oprah's April 17 segment on the subject -- the entire world has discovered Twitter.

For those of you who have been focusing on less pressing matters -- say, the economy -- Twitter is a microblog through which people communicate within a maximum of 140 characters. The real-time result, as others have suggested, is much like a large cocktail party with many unrelated conversations occurring at the same time. Twitter can be perplexing, disorienting, even overwhelming.

In comparison to social networks such as Facebook, with its 200 million active users, Twitter is a social neophyte, with 14 million users (pre-Oprah), according to Compete.com. What makes Twitter newsworthy, however, is that this figure indicates a significant spike -- an increase of 76.8% in the past month alone.

Is Twitter a great way to market to moms?

The jury is still out -- but the possibilities are intriguing. Moms are certainly tweeting in droves. Of the core group of 100 or so mom bloggers we work with on an ongoing basis, for example, roughly 80% have Twitter accounts. The Twitter format itself -- short bursts -- may particularly appeal to busy moms, as a way to stay in touch between myriad parenting tasks. The influential TwitterMoms network includes numerous subcategories for different areas of interest, from "Online Marketing Moms" to "Twitter Newbies." March saw the launch of independent microblogging variations on Twitter, designed to appeal directly to moms.

Moms who tweet comment on everything from potty training to politics. Granted, there are numerous posts along the lines of, "What shall I make for lunch?" and "Just dropped Jimmy off at practice." Earlier this month, there was much lively debate on a TV segment on "the secret life of moms" as well as a major fundraising effort for a mom in need.

Though clearly not a direct opportunity for marketers, these activities offer insight into a mom's world. More relevant to corporations, there is also a great deal of news and knowledge shared, mom to mom, about product giveaways, coupon offers, special events, and more. Many of the conversations that started online have evolved to off-line -- the "meet ups" or in-person meetings originated by bloggers have evolved into "tweet ups" for Twitter fans.

Small and large businesses alike have tiptoed into Twitter waters in an effort to reach moms. Graco and Johnson & Johnson have a presence, as do Nickelodeon and Disney, among others. Companies such as Whole Foods, Starbucks, Zappos and JetBlue use Twitter to target a broader audience.

For those marketing in Twitter space for the first time, there is a distinct learning curve. Some basic lessons:

  • Identify your objectives carefully. What do you want to achieve through a Twitter presence? Create visibility? Improve your customer service? Move a particular product? Develop greater awareness of an online or offline promotion?
  • Allocate the time to do it right. For a channel known for its word limit, Twitter can be incredibly time consuming if you want to convey a specific marketing message effectively. For originating posts and reading and responding to others, expect to devote one to two full hours a day.
  • Pursue followers aggressively, but selectively. Full disclosure: This is counter to traditional thinking. Many Twitter experts will tell you that the best way to establish expertise and relationships is to generate a massive following -- by following the masses, who in return will most likely follow you. But what if your real audience is a lot more specific than broad? If you're reaching foreign real estate brokers and your target is American moms of young children, what is the point, aside from big-number bragging rights? And, realistically, how can you possibly read and interact with -- which is the whole point -- posts from a huge list?
  • Make a contribution. Don't become one of those companies whose updates consist of constant repetition of the same message, "Here's my product." Share value: answer questions, address concerns, provide unique opportunities and interesting updates on activities at your company, but also volunteer helpful information on relevant subjects. For example, if you're promoting a family travel destination, post links to third-party tips for traveling with kids.

Despite the fact that it's been around for three years, Twitter is only now really taking off when it comes to corporate involvement. Readers, what have your experiences been with Twitter? Marketers, what have you done that's effective? Moms, what should companies on Twitter do to make themselves more appealing?

Monday, March 23, 2009

Why Sponsorship is Growing even in this Economy!

Changes in the economy, demographic shifts and the fragmentation of media have all contributed to sponsorship’s growth. Some of the largest factors behind sponsorship’s rise are:

Decreasing efficiency of measured media
Costs for traditional advertising continue to increase, while ratings and readership decline. On top of that is an even more basic problem: consumers are not paying attention to ads.

The situation is particularly acute in television. Where once the VCR’s fast-forward button was the greatest enemy faced by TV ads, the popularity of personal video recorders such as TiVo and ReplayTV has made viewers’ ability to avoid commercial messages even easier and more automatic.

Sponsorship, on the other hand, provides opportunities for embedded advertising, a fail-safe delivery system where messages are incorporated right into the action.

Changing social priorities
As issues such as poverty, the environment and AIDS loom larger, there is a growing realization that the needs of society and the interests of business overlap. Buyers are demanding to know where a company stands before they purchase its products. Making the world a more livable place is a prerequisite to achieving consumer affinity. Sponsorship, which allies companies with community responsibility and improved quality of life, is precisely the kind of statement consumers will respond to. When a company sponsors, it is providing something for its customers – not making some media conglomerate richer, but saving a high school sports program or underwriting a symphony performance.

Shifting personal values
Conspicuous consumption has been replaced by cashing out. Shopping for shopping’s sake has become déclassé. Tapping into today’s consumers’ elusive will to spend requires turning the buying experience into something larger than just acquisition. Sponsorship provides companies this opportunity. It says to the potential customer: “Buy this product not to indulge yourself, but to help make the world a better place.”

Increasing need for two-way communication
In response to the fragmentation of the mass market and mass media, companies are looking for alternative methods to communicate sales messages. The idea is to find delivery systems that allow companies to deepen their relationship with customers.

Sponsorship, which is the most direct channel of communication, is tailor-made for this environment. It reaches people in an environment that matches their lifestyle rather than intrudes upon it. It is not a passive monologue that interrupts a TV show, or comes as a piece of mail that needs to be dealt with. Sponsorship speaks to the public, not at them, creating opportunities for two-way dialogue.

High consumer acceptance
While traditional media is less effective than ever, much of the new media alienates consumers. For example, 75 percent of Americans view phone solicitation as an invasion of privacy, while 81 percent find ads in stores to be distasteful, according to a Brandweek study. In addition, 69 percent of consumers who buy or rent movies on video are annoyed by advertising before the film, according to a Gallup survey conducted for Advertising Age.

On the other hand, public response to sponsorship has been overwhelmingly positive. Sponsorship is viewed favorably because it is seen as a form of marketing that gives something back, that benefits someone else in addition to the marketer. It implies a degree of altruism absent from more commercial types of marketing.

For example, eight out of ten respondents to a survey conducted in Britain said sponsorship makes “a positive contribution to society.”

The following is a sampling of recent market research regarding sponsorship’s acceptance and ability to influence what and where people buy.

Cause marketing. Eighty-four percent of U.S. adults said they would be likely to switch brands to support a product that associated with a cause they cared about, according to the 2002 Cone/Roper Corporate Citizenship Study. According to Cone/Roper’s latest Cause-Related Trends Report, cause marketing had the strongest impact on people who Roper classifies as “Influentials.” This group – about 20 million strong – are opinion makers and group leaders. By a two to one margin (41 percent to 20 percent), Influentials are more likely to have made a cause marketing purchase than consumers at large.

Festival sponsorship. Eighty-five percent of attendees surveyed at the city of Chicago’s Gospel Festival could name one or more of the event’s sponsors, according to a survey conducted by research firm McKeon & Assoc. of Joliet, Ill. When surveyed one month later, 70 percent could still recall a sponsor. Eighty-two percent attested they would be more likely to purchase a product made by a company that sponsored Gospel Fest. The figures held across all age and earning categories, with sponsor loyalty actually increasing with income level.

Arts sponsorship. British Petroleum found a positive relationship between arts sponsorship and a company’s image and reputation. BP also examined public reaction to the BP logo built into the set of a performing arts event. Eighty-one percent of respondents thought the logo was noticeable. Of those, 88 percent said it was very acceptable or quite acceptable. Only two percent thought it was quite unacceptable; no one found it very unacceptable.

Sports marketing. Given the choice between two products of equal cost, 72 percent of NASCAR fans would “almost always” or “frequently” choose the brand they associate with NASCAR over one that is not associated with NASCAR, according to Newport, R.I.-based Performance Research.

Friday, March 20, 2009

Check out Jacks new Office Space!

New site from Jack in the Box allows you to have Jack call your friends wit a message....Classic!

http://office.jackinthebox.com/

Thursday, March 19, 2009

Starbucks: Not as Expensive as You Think....Really?

CEO Sets Campaign to Combat Image Coffee Chain Is 'Poster Child for Excess'

Distressed that Starbucks has become the "poster child for excess," CEO Howard Schultz said the coffee company plans to run an ad campaign proving its coffee isn't expensive.

Howard Schultz

"There's a myth out there that there's this $4 cup of coffee at Starbucks," Mr. Schultz told shareholders at the company's annual investor meeting earlier today. "For whatever reason, Starbucks Coffee Co. has become the poster child for excess, and if you want to be really smart, you should cut out that $4 cup of coffee."

Not going to stay silent
Mr. Schultz, noting that half of the chain's beverages cost less than $3 and one-third are priced less than $2, admitted that Starbucks has been defined by its competitors. "Don't let anyone tell you their coffee is the same as Starbucks because it's not," he said. "We've been silent about these issues, but I can assure you we're not going to be silent for too long." Starbucks has also launched "value pairings," such as a breakfast sandwich or muffin and a drink, for $3.95.

Forthcoming advertising will attempt to convince consumers that Starbucks products aren't as expensive as they are perceived. Mr. Schultz said to expect social-media efforts, internet advertising, and more and sporadic TV ad buys he refers to as "brand sparks."

The company's presentation ended with a music video (rather than the usual live musical performance) of street musicians from around the world performing "Stand By Me." Mr. Schultz said the song would be incorporated into upcoming marketing efforts.

Starbucks has long eschewed traditional advertising, but has placed a number of TV ads since moving its business from Wieden & Kennedy to Omnicom Group's BBDO, New York, in October. Mr. Schultz said that these ad buys have generated strong response with consumers. The chain gave away 2 million cups of coffee on Election Day, with a promotion by way of an ad during "Saturday Night Live." He said that the spike in traffic also resulted in incremental sales and the chain was profitable for the day.

Starbucks later partnered with Oprah Winfrey on an Inauguration Day-related volunteerism push. The chain did a limited ad buy, encouraging Americans to stop by Starbucks and get a free coffee in exchange for pledging five hours of community service before the end of the year. The day after President Barack Obama's Inauguration, Ms. Winfrey plugged the promotion on her show. Mr. Schultz said that the chain had racked up 1.25 million hours in pledged community service during the promotions two-week window.

Plans for Via instant coffee
Mr. Schultz also gave some insight into Via, the company's foray in instant coffee, as first reported by AdAge.com. While the global instant-coffee market is valued at $17 billion, he said only about $1 billion of that is in the U.S. And Via, he hopes, will lure some people to convert from brewed coffee. Of the 65 billion cups of coffee brewed in the U.S. every year, Starbucks has only about 4% of the market. The company will attempt to change consumer behaviors at home, where 25% to 30% of coffee is wasted, and at work, where many people don't like the coffee that is sometimes offered free of charge in company kitchens.

Starbucks is testing Via in Seattle, without advertising, and in Chicago, with TV ads, in-store displays, and an outdoor push that has included on-the-street sample distribution, bus and shelter ads, and a fleet of hybrid cars marked with the Via logo. BBDO has anchored the Chicago effort. Mr. Schultz said that Starbucks would use the pilot period to determine the efficacy of the advertising. Via will launch nationwide this fall and internationally next year.

Starbucks is, of course, attempting a complicated turnaround. In January, the company reported earnings were down 69% to $74 million, due largely to restructuring charges and same-store sales down 10% in the U.S. alone. At the time, Mr. Schultz said the company was beginning to see improvement in its business. Starbucks reports earnings again next month.

Friday, March 6, 2009

Pepsi Throwback and Mountain Dew Throwback

Pepsi Bets on Soda With All-Natural Ingredients


PepsiCo is adding three new soft drinks to its portfolio as part of the company’s “Refresh Everything” strategy.

The lineup includes a premium all-natural cola, called Pepsi Natural, to be released this month in 10 select markets, along with limited-time throwback versions in April of Pepsi and Mountain Dew. All three products will be made with all-natural sugar, and aim to take customers in a different taste direction.

Pepsi has been prepping this “natural” launch since 2006 as an answer to consumers' concerns about high fructose corn syrup.

Pepsi Natural is packaged in a sleek 12-oz. glass bottle and will be available in retailers’ premium or natural food aisles as single-serve or four-pack offerings. The cola is amber hued due to natural caramel, kola nut and apple extracts, and is made with “lightly sparkling water.”

Distribution includes Chicago, Cleveland, Pittsburgh, Los Angeles, San Diego, San Francisco, Seattle, Portland, Ore., Las Vegas and New York.

The two memory-lane beverages, Pepsi Throwback and Mountain Dew Throwback, will have 1960s and ’70s inspired retro packaging and a flavor distinct from the current beverages. The retro soft drinks will be available for eight weeks starting April 20.

“Pepsi Natural and the ‘Throwback’ duo give consumers the opportunity to refresh how they experience soft drinks,” said Frank Cooper, vp of portfolio brands, Pepsi-Cola North America Beverages, in a statement. “We’re continuing to offer a variety of products across different beverage categories, with a splash of nostalgia and entirely new experiences.”

PepsiCo spent $214 million on U.S. media for its soft drinks in 2007 and $177 million last year (not including online initiatives), per Nielsen Monitor-Plus.

Wednesday, March 4, 2009

Cereal going Old School

NEW YORK (AdAge.com) -- If food can be comforting, how about packaging? With consumers embracing old-world classics such as casserole, some marketers are trying to get on the bandwagon by trotting out some old-school style.

Cuckoo for Cocoa Puffs: General Mills has given Target a month-long exclusive on retro box designs for some of its best-selling cereals.
Cuckoo for Cocoa Puffs: General Mills has given Target a month-long exclusive on retro box designs for some of its best-selling cereals.

General Mills has given Target a month-long exclusive on retro box designs for some of its best-selling cereals, Cheerios, Honey Nut Cheerios, Lucky Charms, Cocoa Puffs and Trix. The package-food company is giving away T-shirts with the old designs as part of the deal. Consumers with five proof-of-purchase labels will be entitled to a free shirt at cerealwear.com. Consumers who would rather just buy one can go to the site and spend $5 to don a defunct Mills design.

Taken from the archives
The promotion, which began in stores Feb. 15, runs through March 21. The box designs were taken from General Mills archives and given minor tweaks, such as updated product shots. But for the most part, the designs are the same, with original games and activities.

Target did not immediately respond to requests for comment.

"Our brands have a history that spans many young adults' childhoods," Kerry DeLaney, associate marketing manager-Big G Cereals, said in a statement. "The retro-box concept is a fun and unique way to create a package design that appeals to Target's guests."

Although the promotion is still running, General Mills spokeswoman Shelly Dvorak said the company is very pleased with initial results. "We have even seen blog posts by consumers talking about the retro boxes," she added.

General Mills has avoided direct marketing, leaving promotion to bloggers. Andrew Gibbs at TheDieLine wrote, "My initial reaction was one of refreshing surprise -- what a pleasant treat for someone like me, who appreciates the aesthetics of yesteryear." He added, however, that such designs may have limited appeal to children, the products' ostensible consumers. "Perhaps the obvious conclusion is that these retro designs are aimed at adults who would otherwise not buy anything promoted by a cartoon rabbit," he said.

Deals have cachet
Dan Ochwat, editor of Shopper Marketing Magazine, said General Mills and Target are likely looking for a short spike in business, because the promotional window is so small. But exclusive deals certainly have cachet.

"Exclusivity is what they're all looking for now," he said. "That in these times is how you strike gold." One potential problem, he said is that many private-label packages have a retro look, and marketers may risk looking more like one of their lower-priced imitators.

Virginia Valkenburgh, senior VP of Cannondale Associates, a Wilton, Conn.-based marketing consultancy, noted that Target is known for seeking out exclusive deals. She described the retro promotion as particularly current. Consumers want to be comforted, and they are cooking and eating more at home, she said.

"It's going to make the moms and the kids feel good," she said.

Monday, February 23, 2009

As Social Media Grows....

Social media continues to grow globally in terms of adoption, usage, interest and impact in a massive way. It’s undeniably changing the way that content and information work particularly in terms of the publishing of consumer opinion. This has transformed the way that consumers relate to brands and the way that brands should operate, driving direct interaction, transparency and a more consultative approach.

However, we still operate in a system defined by the old media world and consequently big brand involvement is still in the main tentative and sporadic. From my experience of trying to get big brands to embrace the social revolution, there are a number of reasons why they have yet to embrace the real opportunities that involvement can deliver:

1. Social Media is often viewed as just another marketing channel: It is of course so much more; it is a completely different approach to interacting with consumers and customers. Of course, you can advertise in a social media environment, but the true return on investment comes from developing communities, creating content to be shared, and talking and listening directly with consumers.

2. It does not fit into current structures: True social media falls somewhere between marketing, PR, communications, content production and web development. No one is quite sure whose responsibility it is and who should ultimately deliver their organisation’s social media strategy.

3. Communities and content are global: Users of social media connect, consume, and share content globally with little care for international borders. Marketing and PR departments and objectives are set up nationally or regionally. Very few organisations have a truly international structure and perspective.

4. Social media needs a long term approach: To build community, distribute content, or get people actively involved in an application takes time. Marketing and PR work on short time frames and are wedded to sets of individual campaigns or short term objectives. Social media is not a campaign, it’s a permanent approach.

5. No guaranteed results: You book advertising and it’s guaranteed to work. For, example you book a web campaign on page views and you keep going until you reach your goal. This is what advertisers call a push medium, i.e. you choose when people see it. Social media is a pull medium; usage and interaction is totally dependent on the user choosing to do so. If it’s not relevant or lacks creative brilliance it will not work. This makes it hard.

6. The metrics are new: Companies are used to the big numbers of advertising, but these numbers are different. Advertising is measured in booked exposures, i.e. page views, while social media is measured in direct interactions, i.e. number of friends, number of views or number of users. These numbers will always be smaller, but not necessarily any less measure of success.

Tuesday, December 30, 2008

Thank you and Happy Holidays!

Happy Holidays and thanks for following my blog. I am looking forward to 2009! Here is a great video to end the year on!

http://www.youtube.com/watch?v=n_w4MV_LwMw



Tuesday, December 23, 2008

Wrapping Up The Love: Cause-Related Marketing During The Holiday Season

Wrapping Up The Love: Cause-Related Marketing During The Holiday Season

Not only do foundations get much-needed support during a time of high need, but positive brand relationships are fostered by the partnership between companies and their customers.

Several retailers encourage subscribers to give during the holiday season, using email messaging to invite donations or participation. Each of the brands mentioned below takes a unique and admirable approach to holiday giving.

•Macy's: Rather than asking for dollar donations, Macy's invites its subscribers to drop off Santa letters, and pledges to donate $1 to the Make-A-Wish-Foundation for every letter received, up to $1 million. This allows subscribers to feel like they're participating in the giving, but also establishes an image of generosity for the donor, Macy's.

•Petco and PetSmart: Everyone wants to be home for the holidays, right? PetSmart and Petco try to find adoptive homes for homeless pets over the holiday season. Both brands use email to advertise opportunities to adopt animals -- or donate to programs if subscribers want to help without taking home a new family member.

•Sears: Sears encourages subscribers to join it in supporting U.S. troops with its Heroes at Home Gift Registry. A strong CTA in the email links to a landing page with video and program details.

•Williams-Sonoma: Across its brands, Williams-Sonoma, Inc. uses email to encourage donations to St. Jude Children's Research Hospital, and then follows up by sharing its successes with subscribers. This Pottery Barn Kids email features a prominent banner that encourages giving. Customers are more likely to trust in the sincerity of brands that are upfront about where money goes and how much money is going there. This thank-you note sent out last holiday by Pottery Barn solidifies the trust of subscribers who donate, encouraging the longevity of the program.

Wednesday, December 17, 2008


Burger King’s scent of love now flame broiled!



I am not kidding:)

http://www.bostonherald.com/business/general/view.bg?articleid=1139319&srvc=home&position=1

Tuesday, December 16, 2008

Inside the Entrepreneurial Mind" series

Take a look great stuff on Social Media from one of my favorites and a great guy Seth Godin.


NEW!! FEATURED VIDEO
Facebook and Wikipedia co-founders: what they've learned
Seth Godin hosts a conversation with Facebook co-founder Sean Parker and Wikipedia founder Jimmy Wales to find out what they know about social networking, branding and online marketing on OPENForum.com's "Inside the Entrepreneurial Mind" series. The takeaway — your business doesn't need to reach the entire world online, just those that want to buy your product. CLICK TO VIEW

Monday, December 1, 2008

Retail email over reaching?


WHILE MANY OF US COOKED....... a Thanksgiving turkey last week, there are signs that many retailers have already started cooking the golden goose -- the email goose. Email is a wonderful tool -- measurable, cost-effective, easily deployable and convenient -- all gold in the marketing world. My guess is you agree, or you wouldn't be reading this. However, as the economy falters it is easy to lose track of the fact that while email is a wonderful relationship-building tool, it can do major damage when used incorrectly.

I already see many retailers overburdening in-boxes with what I call RAM (retail spam). RAM messages are from retailers I have either subscribed to or placed orders with, whose approach to using email is to ram so many messages into my inbox that I hate the appearance of their names in the "from" line.

If these retailers are savvy, they have done some testing and have determined that they are driving incremental orders with these messages. However, my guess is that they are not thinking about the collateral damage these messages may be causing.

First, there is the damage to their brand. Every company that sends out a message is communicating with someone who has a perception of their brand. When you RAM, every message that the recipient views as an intrusion rather than a welcome communication negatively tears at that brand perception.

Second, many people you want to communicate with in the future tune you out now. While you may get an additional $22 sale now from one recipient, the mailing was a failure if three potential $500 orders in March were lost because purchasers tuned out your future messages -- either mentally or using email filters -- because of your email RAM qualities.

Third, if you are lucky recipients will unsubscribe because you have damaged the relationship. However, if your messages have really bugged them, they may click the "SPAM" button provided by one of the major email clients, which will damage your digital reputation in the process.

If you are in retail marketing, or send email in any capacity, avoid sending RAM by taking several steps:

  • Set up a mailing plan in advance that you know is acceptable from your recipients' perspective. If you are going to deviate from it (for example, add one more message because sales are down), seriously examine your motives and determine if doing so makes sense to the overall long-term business plan (not just this week's sales). Make sure that the additional message delivers incredible value and is highly relevant. Sending just another "buy now because it's the holidays" email is neither.
  • Make it easy for consumers to tell you "I like you... just send me fewer messages" in a preference panel. This way if you RAM, at least you have an opportunity to retain them as subscribers.
  • When recipients unsubscribe, provide them with an optional area to give you a reason why they are leaving (make this free-form rather than radio buttons and you will get a better view of what your customer is saying). Make sure you periodically review the reasons. If your unsubscribe rate is sky-high and you are in RAM mode, it's probably time to reconsider what you are doing.
  • Ask customers when they sign up how often they would like to receive messages from you. In some cases, you may find that you could be sending more messages if your base is loyal and your messages are important.
  • Don't try to hide your RAM in a cute concept. Last year I received email from three separate retailers who decided that by running a "12 Days of Christmas" campaign they could get away with sending messages every day (I unsubscribed from all of them).

    So as the holidays approach, don't forget that email is about relationships. One of the best ways you can thank the people who have signed up for your messages is by making sure that what you send them is relevant to them and doesn't RAM their inbox.

  • Wednesday, November 19, 2008

    What Will Citi Stop Doing?

    Citi's announcement that it'll fire 52,000 people begs a basic question: what will it do to its brand?

    No, I don't mean the impact of the bad news. Every business other than Wal-Mart and your local pawnshop seems to be in trouble these days. I doubt that anybody will switch their checking account because their emotional attachment to Citi has been damaged by the bad news.

    However, there may well be customer defections based on what Citi has chosen to stop doing.

    That's 52,000 (and 17,000 already dismissed this year) less to do the account transfers, count the cash, or do whatever else banking industry personnel are supposed to do. Approximately 1/10th fewer people will work for Citi when this blood-letting is over.

    So what will it do differently?

    I mean, that's the real question about the brand, isn't it? Its experts can label the moves however they choose, and I bet there's more than one glossy, highly creative ad campaign somewhere in its near future. The nonsense they've been running this year can only run so far before somebody looks up and notices that Citi's brand has very little to do with what it says about itself (or fantasizes about its customers in a Joe the Plumber sort of lifestyle marketing way). Their answer will be to run different nonsense, I'm sure.

    So the real impacts on the company's brand won't come from the marketing department. Customer relationships with Citi will change. 52,000 fewer employees mean 104,000 fewer hands to answer phones, click computer buttons, or whatever. So I wonder what new fees will get charged, or services reconfigured to be "customer-directed" (a great code word for "outsourcing work to your clients")? What services or insights will simply disappear entirely?

    I read that the company will "jettison" some companies that aren't "core to its strategy," whatever that strategy might be...but the rest, well, for all we know, the company is going to try to keep on doing the same things it does now. Only with far fewer people.

    However it plays out, it'll be these activities -- or the lack thereof -- that'll impact its brand far more than any narrative coming out of its communications department, or from its agencies. So it's these changes that will define Citi's branding going forward. Not its Wall Street valuation (its stock price tanked today), nor its ranking on any branding agency favorites list.

    If it were really forward-looking, Citi would define and express these changes, and make them the substance of its outbound marketing.

    Tell people what'll change, so they're not disappointed or surprised. Promise them the good things that'll happen, presuming there are any.

    We wonder why corporations rank so low on matters of authenticity and trustworthiness. I think it has something to do with making utterly incomprehensible announcements (and business decisions) like this one.

    We customers aren't totally crazy, are we? We know that a company can't fire a tenth of its work force and continue on with business as usual. Things will change, and they most likely won't be good for us. But Citi isn't telling us what, who, or when.

    I suspect we'll get to discover those answers on our own. And in doing so, we'll define the Citi brand.