Purpose Defines a Brand

As a father of three sons (ages 23, 16, and 12), I realized a long time ago that children have a knack for being able to teach adults… if we can stop long enough to pay attention to what is going on around us. When I allow myself to see the world through the eyes of my children or others that I am around, it inevitably results in a better understanding of what they see and face on a daily basis. I have to remember that I am not a know-it-all adult but rather a person who is committed to continuous learning and development, including obtaining wisdom from children.
The impact that children can have on adults does not include our professional lives – or does it? I have concluded that yes, children can shape our understanding of business. This view was reinforced after reading about how a 9-year-old boy had started a cause and given away a trip to Disneyworld to the family of a fallen soldier. Brendan Haas launched his Soldier for a Soldier Facebook page in February. The idea was to trade items with other people, increasing the value of items traded until he had acquired airfare, hotel, and gift certificates to give to a fallen soldier’s family a trip to Disneyworld. It began with Brendan trading one of his toy soldiers and culminated on Memorial Day with him giving away a trip to the family of a Massachusetts soldier killed in Afghanistan last year. An awesome story of selflessness, taught by a 9-year-old.
What is the takeaway for business, you might be wondering? For me, Brendan Haas and Soldier for a Soldier provide a lesson in branding. Brands are defined by a purpose, a reason for existence. That purpose permeates through every decision, product, advertisement, employee… you get the picture. Brendan Haas’ purpose led to creation of the Soldier for a Soldier cause. Too often, companies undertake cause marketing campaigns as if it is a “flavor of the month” tactic. The supported cause may be worthy, but the execution of the campaign does not demonstrate a direct relationship with the brand’s values.
Job well done, young Brendan Haas! Thank you for the lesson that brands should be directed by a purpose. I have a feeling Brendan is not through yet fulfilling his purpose through Solider for a Soldier or in some other way.

Advertising: When to Play, When to Sit

General Motors made waves in the advertising industry not once, but twice in the past week. First, GM announced that it would no longer buy ads on Facebook. A few days later, GM made perhaps an even more surprising announcement that it did not plan to advertise during Super Bowl XLVII next February. What is going on? One of the biggest spenders on measured media is stepping away from a trendy new medium and a vaunted cultural event at the same time. These moves do not seem like decisions of a company that reported a net income of $1 billion in the most recent quarter. But, just because a company has resources to spend on certain marketing activities does not mean it should. GM has figured this out.
The primary question for GM or any business to consider is not whether it can afford to advertise on Facebook, the Super Bowl, or any other medium. Instead, what really matters is what marketing objective can be achieved as a result of the marketing spend? If a marketing tactic does not deliver against one or more objectives – don’t do it! GM’s reservations with Facebook and Super Bowl advertising may be caused by not establishing a link between the activity and the outcome. Apparently, GM’s competitors feel this way as Ford jabbed at GM for its Facebook decision, suggesting GM does not “get” social media. And, Hyundai felt the need to proclaim its intention to continue as a Super Bowl advertiser.
Did General Motors make good decisions to step away from advertising on Facebook and during the Super Bowl? Yes, if it cannot determine how to use these channels to advance its business. Brands have a multitude of options to choose from when developing marketing communications strategy. Facebook and the Super Bowl are effective communication channels for many brands but not necessarily all brands. And, let’s not forget that GM is not bailing on Facebook, just Facebook advertising. Also, the company says it will have a presence around the Super Bowl, just not in-game commercials.
The advertising game consists of many different ad “plays,” with Facebook and the Super Bowl being but two of them. If you have a game plan, identifying objectives an ad play should achieve, then get in the game. If an ad play does not advance the brand or business, sit on the sidelines even if “everybody” is advertising there.

Who is Driving the Culture Bus?

 

I had the pleasure of spending yesterday morning listening to two dynamic speakers: Dan Heath and Chris LoCurto. I was familiar with Dan Heath as one-half of the Heath Brothers duo that has written two outstanding books, Made to Stick and Switch. Chris LoCurto is a vice president in the organization of personal finance expert Dave Ramsey. Heath’s presentation was full of salient points from his books and informative as expected. I was unsure about what to expect from LoCurto’s presentation, but he knocked it out of the park with a theme of “Culture Can’t Wait.”
Creating a culture committed to customers and employees requires leaders make a commitment in five areas:
1.      Force It – Establish the culture that is desired; create change if needed
2.      Teach It – Employees must learn what norms and behaviors are consistent with the desired culture
3.      Recognize It – We are quick to admonish behavior or performance that does not meet expectations. Do we praise employees when positive actions are observed?
4.      Attack It – Employees will fall short of meeting expectations, if not outright challenge expectations. To create the desired culture, leaders must take on the bad stuff and clearly communicate expectations that comprise the culture.
5.      Repeat It – Creating an organization culture is not a one-time project. Rather, it is an ongoing process of managing expectations and leading employees.
Your organization’s culture is a in building customer relationships, improving employee retention, and the firm’s overall success. For me, the most powerful message of LoCurto’s presentation came in his discussion of “Force It.” He said “you are either going to force culture or other people will force it for you.” Who is driving the culture bus in your organization? Is it the people with the map that understand where you are going, or is it other people who would rather take side trips than get to the intended destination?

Words are not enough to Change Behavior

An interesting example of a tactic to influence consumer behavior can be found along the interstates in Tennessee. The Tennessee Department of Transportation is using digital signs on the interstates in a new, and for some people unsettling, way. The numbers of vehicle and motorcycle fatalities in the state are being displayed on the signs when not in use to communicate usual information like lane closures and blockages. The messaging maintains the same end that TDOT has always had – be safe while driving. However, the means to that end are a departure from usual tactics, and it bothers some motorists.
What are the objections to the signs? Some people believe reporting of traffic deaths has been reduced to a game, with the signs becoming a scoreboard for fatalities. Others see the signs as one more distraction on the roadways, having an unintended effect of possibly contributing to an accident than preventing one. For opponents of the signs, more police presence and enforcement of laws are preferred to the digital signs.
If TDOT’s goal is to reduce the number of traffic fatalities, then the challenge is to change behaviors that contribute to accidents. Creating a shift in behavior requires challenging people’s beliefs and changing attitudes. In this situation, general messages like “stay safe” are likely to have little impact. They are merely words that become one of hundreds of messages we are exposed to daily.
To cut through the message clutter, ideas have to be presented in ways that force us to process information. Only then is there a chance that our beliefs and attitudes can be influenced, setting the stage for behavior modification. TDOT’s use of a concrete message such as the number of fatalities has the “stay safe” theme as an undertone, but it can be a jolt to the beliefs held by people about the importance of driving safely. Perhaps some people do not like the messages on highway fatalities because they work. Rather than being able to ignore the message like most of the others that they pass along the road, this message has the desired effect of getting their attention and causing them to think about driving safety.
If you want to change behavior among your customers, employees, children, whoever your target audience may be, consider the presentation of your messaging. There may be important points that you wish to communicate, but a straightforward presentation of facts and information may fall on deaf ears. It is not because your value proposition is weak; your messaging is not resonating with the intended audience. Words are powerful because they can shake our beliefs and influence how we feel. But, words alone are not enough to change behavior. The strategy behind the message is to persuade people to care.

You Call that “Spirit”?

 

If you subscribe to the view that bad publicity is better than no publicity at all, then you would probably say that last week was great for Spirit Airlines. The air carrier raised eyebrows not once, but twice in a few days’ time. First, Spirit announced new fees for checked baggage that could result in a passenger paying as much as $100 per bag. While the typical rate paid would more likely be on the order of $35-$45, the fact that a $100 fee is on the books outraged many fliers, even people who do not fly Spirit.
Second, Spirit was at the center of a controversy with a dying Marine who requested a fare refund after he was told by doctors not to fly because he was too sick. Spirit initially rejected the request and made a very public case that its policy prevented a refund from being issued. The company eventually relented and issued a refund and made a donation to a veteran’s charity, but not before the public railed against Spirit’s callousness.
The pricing, customer service, and PR tactics displayed by Spirit Airlines lead many to question how the company stays in business. The answer is simple: In many industries, there is a space for a low-priced, no frills seller. Spirit occupies that space in the airline industry. Its model is to offer low base fares and unbundle virtually all services associated with air travel and charge separately for them. There is actually an advantage to consumers for this à la carte pricing approach in that you only have to pay for services you want. Most airlines use some form of this pricing approach; Spirit has taken it to the extreme.
Many people are incredulous at the lack of concern some of Spirit’s actions project. Spirit’s practices are far from textbook examples of good customer service. There is good news for those of us who do not like the brand values displayed by Spirit Airlines – we can use the power of our wallets and fly with other carriers. It seems that executives at Spirit Airlines have overlooked that customer value is determined by more than benefits received for the price paid. Many people factor in a company’s reputation and commitment to concern for customers, employees, and society in general when making buying decisions. Spirit Airlines will continue to serve a customer niche that finds the company’s value proposition palatable. But brands with true spirit aspire to go beyond making money to making a difference.

The Lost Art of Conversation

Some people say that customer service is not what it used to be. That point registered with me recently through an observation made by my 12-year-old son. We were shopping at a local department store, taking advantage of great deals on men’s clothing. As we checked out, the sales associate was very pleasant and talkative. She told us about other sale items and even about purse snatchings that had taken place at area stores.
We walked away and my son remarked “she sure was full of herself, wasn’t she!” When I asked what he meant, he said that she talked a lot. I paused momentarily and it hit me why he made that observation: That level of personal touch has become the exception rather than the rule in customer service. “That is how it is supposed to be” was my response. Traditionally, department stores have been known for delivering a personal touch. Sadly, that experience is delivered less frequently today. My professional career in marketing began in retail management for a department store. Our associates were required to write 10 thank-you notes to customers weekly. Timely approach of customers was expected. Sales associates were to be more than cashiers and serve as a resource to customers.
My son’s perceptions of what customer service is (and is not) have been shaped by mostly unremarkable interactions with service providers. Not necessarily bad service, but not the kind of experiences that you walk away from and go “wow – that was great.” A generation is being acclimated to “service” being driven by technologies such as self-checkout and online ordering. Measures of service quality are based more on the reliability of the technology than the personal attention given. 
It almost sounds funny to say that conversation can be a brand differentiator. But, my son’s take on what is extraordinary customer service suggests that a personal touch has the ability to stand out in an environment that is often more concerned with transaction efficiency. Embrace the art of conversation – show customers that you value their business and more importantly that you value them.

Do You Need a Brand?

An interesting question arose during our department’s annual strategic planning meeting yesterday. The department chair asked the faculty about the need to develop branding elements, namely a logo. It was obvious by the reaction of many faculty members that they had never thought about this question. To stir discussion, our chairperson asked the question “why would we need a brand?” It is a fair question that any organization should ask, and it is one that in typical cases should be answered with an unequivocal “yes.”

What would a brand do for an organization like the Department of Management and Marketing at Middle Tennessee State University? After all, we are associated with two brands already – the University brand and the College of Business brand. Brands serve three vital purposes:

  1. Bring mission and values to life – Brand names and logos are meaningless unless they relate to fundamental purposes for existence. We started the process by reviewing our department’s mission statement. In 12 years, I had never seen it, and after reading it I realized I had not missed anything! We will work on refining and shortening it. Once the mission is defined and the values we hold articulated, then (and only then) can we begin to think about branding our department.
  2.  Give direction to what we should be doing – One colleague answered the question of why we need a brand by saying that it would help us make decisions. What are our priorities? How can we better serve students? Are the needs of the business community being met? What courses are needed in our curriculum? These are questions that cannot be answered adequately until brand meaning is defined.
  3. Creates an identity – Oh yeah, brands are an outward expression of identity. Brand name and marks like a logo create awareness, aid in brand recall, and shape perceptions that form brand image. However, starting here is risky at best and can result in bad branding strategy. You cannot forge an identity until investing time in defining mission, values, and benefits provided to stakeholders.

I am excited about the possibilities of a branding initiative for our department, and not because we may end up with a nice logo. Rather, the clarity of purpose that could arise from the process will guide future strategic planning. Like many organizations, we sometimes are mired in day-to-day operational tasks and lose sight of long-range goals. Brands are like a compass that allow us to navigate the turbulent paths that an organization encounters. 

Who Are You Chasing?

I had the pleasure of attending the Nashville Business Journal Best in Business Awards luncheon yesterday. As a judge in two of five categories, it is rewarding to be in a room full of talented entrepreneurs and managers. In a video presentation featuring one of the winners, cj Advertising, I could not help but notice a sign taped to a wall in the agency’s office. It said “Chase your customers, not your competitors.” It resonated with me instantly. I cannot tell you any other image I saw in any video at that event yesterday, but I will be able to tell you about that sign years from now.

The statement is simple but powerful. If you chase your customers with a dogged focus on their needs and wants, competitors will be chasing you. Yet, we get bogged down analyzing what competition is doing and plans to do next. We worry that we might be undersold and pledge to match any competitor’s price. New products are introduced that mimic the best sellers of the competition. In other words, we spend too much time chasing competition.

Chase your customers, not your competitors is neither groundbreaking nor original. A quick search online found that others have written about the difference between the two. Doesn’t matter- it is a strong signal as to what a marketer’s priorities ought to be. Understand who you should be chasing, then align your priorities and activities in the pursuit of creating better customer experiences and healthier customer relationships.

Showrooming: Threat or Opportunity?

Much is being made of a trend in retailing known as “showrooming.” Department stores and big box specialty stores have become product galleries. Shoppers come into the showroom, browse available options, gather information from salespeople (if they can), and often begin their online research on the spot. Smartphones with Internet access and apps that deliver instant price comparisons by scanning a product’s bar code have taken “just looking” to another level.

This trend does not bode well for brick and mortar retailers. Even historically strong retailers like Best Buy cite showrooming as a factor in their struggling performance. E-commerce giants Amazon and Walmart have the ability to beat most retailers (online and offline) on price. And, online specialty retailers can beat brick and mortar stores on assortments because they do not have to carry inventory for store locations. Given all of these reasons, it appears that showrooming is a threat to the viability of traditional retailers… or is it?

Is opportunity available in the trend toward showrooming? If you subscribe to the belief that when you are given lemons you make lemonade, the answer is “yes.” Granted, a segment of shoppers are influenced heavily by price in their buying decisions. For other shoppers, serving them can be accomplished by transforming the product showroom to a brand showcase. For example, when you walk through the doors at an Apple store, it is a playground for hands-on experimentation with Apple products. And, knowledgeable employees are available to answer questions and provide assistance. The atmosphere is electric; you want to go into an Apple store even if you are not in the market to buy a product. Apple stores provide an outlet for us to be immersed in the Apple brand.

Unfortunately, most brands do not stir passion like Apple. The challenge is how to take advantage of the trend of showrooming instead of falling victim to it. Yes, certain defensive responses can be taken like downsizing square footage and increasing product assortments online. But, play offense, too. Three areas of focus for retailers should be:
1. Define your brand – Understand why people would want to do business with you, and it does not have to be about price! What are the values that guide your business?
2. Create the culture – Once the brand is defined it has to be spread through the organization. One knock on brick and mortar stores is that employees are indifferent and unknowledgeable. They must know their critical role in customer satisfaction and the store’s success.
3. Build an experience – Transform shopping from something one has to do to something one wants to do. Think about retailers you enjoy visiting – what is the attraction? It rarely has anything to do with price. It is the experience of being in that environment that draws you in and brings you back.

Do not write the obituary for brick and mortar retailers yet. Yes, the showrooming trend requires retailers to rethink the role of the physical store in their marketing strategy. But, opportunity exists for retailers that use their stores as the connector between their brand and customers.

WSJ.com – Can Retailers Halt ‘Showrooming’?

Best Buy – "It’s the Experience, Stupid"

If Bill Clinton were asked to give advice to Best Buy on how to energize its business, he may very well dust off a line from the 1992 Presidential campaign. The famous line chided George H.W. Bush for being out of touch with voters’ needs when Clinton said “it’s the economy, stupid.” In the case of Best Buy, Clinton’s suggestion would likely be “it’s the experience, stupid.” Best Buy announced this week that it was closing 50 big box stores and opening 100 smaller locations. I hope the strategy works for Best Buy, but the problem is much deeper.

My trips to Best Buy in recent months and accounts of others’ current perceptions that I have heard and read reveal great dissatisfaction with the shopping experience. Need help from a knowledgeable salesperson? Good luck with that. For that matter, good luck getting help at all unless you are fortunate that salespeople will take a timeout from their personal conversations to acknowledge you. Product knowledge for the typical salesperson is limited to basic features and benefits. However, they are well schooled in pitching service plans and product coverage plans. One is left with the feeling that the aim is to extract as much money as possible from customers’ wallets.

The above commentary on Best Buy and its employees is painted with broad strokes. I know that there are many dedicated, exceptional employees working for the company. But, there are too many instances in which the experience does not add value for customers. Personally, I have gone from looking forward to going to a Best Buy store to it being an option of last resort.

Perhaps a shift toward smaller stores will create a more interactive environment. The quality of employees on the sales floor may be higher if smaller stores mean fewer positions, creating more competition. Take Bill’s advice, fix the experience, and make Best Buy an awesome shopping environment again.

NPR – “Best Buy Rethinks the Big Box Model”