September 2008 Archives

Marketing News Radio recently ran a podcast by Jonathan Salem Baskin,  author of "Branding Only Works on Cattle". He talks about his book and about how brands should think of places other than the marketing department to do branding. I think one of the most insightful things he states in the interview is that it (branding) is not about telling people things, but about experience, is about showing them by action. He has a great example of how Zappos.com doesn't spend any money on marketing, but pours it all into customer service -- again experiencing the brand. The most effective way of influencing one's buying decision is establishing a unique relationship with the customer's experience. In addition, social media is not the savior of marketing.  Content has to be delivered when relevant to the situation, in the right venue and at the right time.

Marketers need to think differently about branding, building affinity, and sparking conversations and more importantly get your customer service department in line. Breakthroughs in marketing can come from various departments within an organization. Please the customer and they will talk about you positively and increase your brands sales. Brands as behavior is an interesting concept.

What are other ways that brands can differentiate themselves through non-traditional branding techniques?

Jonathan also has a blog called Dim bulb. It has some great comments on the business decision of running a Super Bowl Ad.



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Science Fiction and Fantasy publisher Tor.com recently completed an experiment with distributing free e-book downloads.  The publisher used the free downloads to promote a new Science Fiction community complete with blogs, bookmarks, etc.  To encourage engagement, only members connected through the newsletter were provided download access.  Participating author John Scalzi noticed a 20 percent increase in sales of his downloaded title and more importantly a 30% rise in the book's sequel.  LONG LIVE FREE. LONG LIVE FREE.  

Free items - a tactic previously used with success by performing artists Radiohead and NIN - are an effective method for rewarding dedicated customers.  However, there are several important considerations before diving into the "free" model as demonstrated by a minor-backlash to the Tor experiment.  Thanks to TeleRead for a great synopsis of Tor's problems and I hope to accurately generalize the lessons below.

Clarify Free.  We have all heard the adage "nothing is completely free." When providing free products to your customers, readers, or evangelists, express the terms of the transaction.  Tor provided teasers to novels but was not ready to offer sequels to their hungry readers.  

Impress Your Intentions.  Freebies are intrinsically linked to promotion for another revenue generating service or product.  How does the free item remind recipients to continue their relationship with your company?  Overtly? Subliminally?

Respond Politely.  If a recipient misinterprets your message, respond politely.  Remember, the disgruntled person respected your brand enough to engage with the product and is most likely a future customer.  

Summary of this post:  Free enticements are powerful but dangerous.  Be cautious about the precedent created by giveaways.  




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Prior to reading the following statement, please prepare for a mind-blowing revelation.

Trusting relationships are integral to creating Sustainable Word of Mouth.  
Building those foundational relationships requires conversation

Well, the statement may not have shattered your preconceptions about Word of Mouth Marketing, but the emphasis on conversation does help explain why Word of Mouth is currently more prominent in offline, face-to-face relationships.  Conversing through online video and chat rooms is not necessarily less personal than real world engagement, but it does lack the important integer of spontaneity...That same spontaneity that allows you to connect with an old friend at the electronics store and evangelize the 54" LCD you purchased last year. 

A number of web solutions have attempted to provide an environment conducive to spontaneous meetings.  Me.dium allows users to follow friends to different online destinations.  Heavily populated virtual environments create an opportunity to naturally encounter acquaintances.  For the average user, however, downloading Second Life or allowing friends to follow your browsing history is not enticing or likely in the near future. 

An alternative to the full immersion of Me.dium and virtual environments is a forthcoming feature from messaging startup Meebo called Community IM.  As Venture Beat's Eric Eldon reports, Community IM is a "white-label platform where other sites can offer their own web-based IM services."  In other words, sites can chose to integrate Meebo's new feature enabling users to chat with friends with transferring to an external client.  Initial partners are MyYearbook, Piczo, and Flixster which may allow for some spontaneous connections.  The true value for Digital Word of Mouth, however, will occur when messaging communities are integrated into retail sites.  Then you can finally encounter a friend shopping for electronics and remark on the great performance of your own 54" LCD.  

Disclaimer: The author does not own a 54" LCD but does enjoy using the inch notation multiple times during a post.    
 


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Direct connection with customers is desirable for most companies. So why is the term direct marketing often used as a pejorative?  The answer exists in the complexity of relationships between customers, companies, and marketing/PR groups.  Let us examine the historical foundation of direct marketing to discover where "direct" lost its mojo. 

Early direct marketers such as Montgomery Ward and Sears & Roebuck connected with customers through mail-order catalogs beginning in the late 19th century.  The minimal cost of delivering a quarterly or bi-annual catalog to rural Americans established a predictable sales channel for the retailers and also a communication channel for customers.  With early direct mail, even a disconnected rural Illinois resident could enjoy the luxury items available to distant Chicago city dwellers.

The success of mail-order catalogs, however, resulted in greed.  And the influx of greed created an overwhelming amount of mail for the average American prompting the current conception of direct marketing as a negative term.   Direct marketing professionals continued to innovate though and moved online - first through the addition of email and more recently with the explosion of targeted social shopping.  Love it or hate it - direct marketing continues to produce results by connecting personally with customers.  So why is the term used in a negative tone?    

Marketing Gurus like Seth Godin might link the negativity to a breech in permission based marketing standards.  The customer must begin the intimate relationship by accepting personalized and relevant messages. Godin and other experts are correct, but their analysis  excludes further introspection into the complex relationships formed to directly interact with a customer through blogs, social networks or any other online content site.  The diagram below represents a potential path for "direct marketing" online:
liaison.png

To spread direct messages in the blogosphere or social networks, a company contracts a Marketing/PR firm.  The service provider analyzes the product and identifies potential evangelists of the company's product.  Once evangelists are engaged, the message is ready for distribution to average customers.  After the engagement, the marketing term re-enters the picture to provide progress updates to the company.  






Wow! A lot of intermediaries for the supposedly "direct" message.  Here is a streamlined revision of how the relationship could function online:

relations.png
The revision provides a noticeable change by drastically reducing bureaucracy.  Transforming a "conversational" chain into an actual discussion allows each participant to possess an equal voice, which clarifies the overall brand message.  Imagine sending your desired content through a game of telephone.  "Buy our new cheesy doodles" transforms to "Guys like squeezing poodles."  Seems like an absurd example, but convolution is possible (and plausible) when too many people handle your message.  

I would like to leave readers with the following paraphrased advertisement:  How many people does it take to connect with a customer?  The world may never know. 


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Sustainable word of mouth marketing means forming persistent, authentic relationships. It means defining conversation as more than an email exchange. To foster sustainability, a transparent liaison between community and company must demonstrate favorable intentions and consideration for each contact they make - and maintain those relationships through meaningful actions and correspondence.

There is an important distinction between sustainable word of mouth and buzz. While buzz can provide strong impact and visibility for a new product or service in the short-term, it lacks the qualities that earn the long-term trust and advocacy of a community.

Word of mouth isn't free.
Brand evangelists are earned through persistent, meaningful interactions that require time and attention.
 

sob.jpg

When the buzz dies down, do the influencers in your industry have a reason to keep talking?  




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