To Be a Marketer, Think like a Customer

I had a refresher in the importance of thinking like a customer yesterday courtesy of my 22-year-old son, Chris. The inspiration for his lesson came from an unlikely location: the motor vehicle inspection station. We took his car for emission testing that is required before license plate renewal. Our arrival found that about 20 other people had the same idea. The wait itself was not unbearable, but it did give Chris time to pose a very valid question: Why is the emission testing location and tag renewal office not located together?

I had never given this any thought- the tag renewal office is downtown with other county services, while the emission testing center is a few miles away in an industrial area. Completing the two-step process is inconvenient, but I suppose that I have always tolerated it because it is a government agency, not a for-profit business. My son’s question came back to the forefront later in the day when I arrived at the County Clerk’s office at 4:01, or 1 minute after it closed. A return trip today would not have been necessary if tag renewal was a one-stop experience.

It goes without saying, or so it seems, that to be a good marketer means to be able to put yourself in your customer’s shoes. But, as the process of license plate renewal reminds us, a well-designed customer experience is often lacking. What are your customers’ needs? What are their problems? What challenges do they face? If you can answer these questions, could you not have the capability to better serve them?

It is tempting sometimes to think we know what is best for customers- after all, we are the “experts” at what we do. The true expert is your customer; learn from the experts and you will have an advantage over competitors that do not have the same mindset.

Marketing Lessons from the Class of 2015

A major life event is taking place now and in the coming weeks for thousands of families across the country as the college Class of 2015 begins their freshmen year. College is more than higher education in an academic sense; it is a phase in one’s life when they are molded intellectually, emotionally, and socially. From a marketing standpoint it is important to understand the characteristics of this segment of the population. After all, they are future customers, employees, and leaders of business.

One firm that has made its work about gaining insight into Millennials is Mr Youth, a New York agency that describes what it does as “decoding the mystery of the new consumer.” Its recent report “5 Ways to Friend the Class of 2015” identifies influences on this group’s lives and how brands should approach marketing to them. They have seen the bad – terrorism has been a constant in their lives since 9/11 and saw (and in many cases felt) the economic meltdown of 2008 first-hand, and the good- tech toys like iPods and tools like Facebook that give unprecedented connectivity. This group is a paradox in that while many suggest that technology can contribute to laziness, they also believe that they can get ahead through hard work.

An important takeaway from the study is how the Class of 2015 differs from their 2010 counterparts. Instead of an interest on brands that convey status, this year’s freshman class is more concerned with brand authenticity and relevance. Brands whose values resonate with Millennials’ personal values are more important today. The challenge that marketers face is two-fold: 1) understanding where Millennials are in terms of their values and beliefs, and 2) connecting with them in a way that brand values can be communicated in a way that builds relationships. Social media is an enabler for reaching this audience, and Millennials expect to have access to your brand. But, the tone of conversation should have less to do with marketing products than it does acting like a trusted friend.

Good luck to the Class of 2015! I look forward to having some of you in my classes one day.

Use Your Head- Engage in Philanthropy Strategically

Businesses of all sizes are hit up daily with requests to support causes, nonprofits, and charities. Many of these requests are from legitimate organizations with laudable aims. However, it is simply impossible for a business to say “yes” to every request. Besides, engaging in corporate philanthropy based on solicitations is a reactive way to practice corporate social responsibility. Instead, a proactive strategy of aligning your brand with causes, issues, or organizations that are relevant to your customers will enhance the likelihood of a favorable return on investment… yes that ROI.

Philanthropic decisions should be made with consideration of how the impact on your brand and business. What is the expected outcome of philanthropic involvement- image enhancement? Brand preference? Customer loyalty? But, before that question can be answered, a more pertinent question to ask is “What matters to our customers?” Aligning support with an issue that is a priority with customers is a key to transforming philanthropy from donations to brand investments.

An example of strategically driven philanthropy is an initiative announced recently by Dick’s Sporting Goods. The retail chain has identified an issue that is very important to many of its customers: concussions. Dick’s program, called Protecting Athletes through Concussion Education (PACE), will provide neurological testing for more than 1 million high school athletes. If tested athletes suffer a concussion, they will receive additional testing to assess the impact of their injury on brain function. The initiative is supported by a website, and NFL Hall of Famer Jerome Bettis will appear in a commercial promoting a cause marketing promotion that links athletic shoe purchase to donations to PACE.

Does Dick’s Sporting Goods want to sell more shoes, apparel, and equipment because of its association with a cause that matters to its customers? Of course it does, but it would have been easier for Dick’s to write a check to an organization than create the PACE program. And, it certainly would have cost less to not go to the lengths of paying for a million neurological tests. But convenience and cost are not the issues- connection with a target audience is the overarching objective.

For your brand to matter to customers, it is essential to first understand what matters to them. That understanding goes beyond what they want from a product to what is relevant in their lives. Strategic philanthropy is a strategy for connecting your brand to their values.

The New York Times – “Sporting Goods Chain Supports Concussion Testing in Schools”

Leash and Muzzle: Social Media Program Tools?

One of the great characteristics of social media is that it gives a voice to brands. Interaction with customers and other people enables brands to shed their impersonal, aloof nature. Rather than talk at people using mass media channels, social media lets brands and people talk with each other. The unbridled communication exchanges bring transparency to business relationships. But, are there limits to how personal and frank brand representatives should be in social media?

This question has arisen again after a vice president with the New York Giants engaged in candid exchanges with fans upset with the team’s offseason personnel moves. Pat Hanlon did not pull punches in his replies to fans’ criticism of the Giants. Some of his tweets this week (@giantspathanlon) include:

“We don’t play on paper. You know what you can do w/ that paper?” His reply to a fan’s tweet: “on paper they ARE worse. no matter who signs your checks”

“This is great. We usually get to play two regular season games before people tell us we aren’t worth a shit.”

“Can you say we’re worse, knucklehead?” His reply to a fan’s tweet: ”can you say definitively the Giants are better than last year?”

Entertaining banter between Hanlon and Giants fans (and probably some Giants haters), but is this the best use of social media to engage people and build a brand? Can you imagine what would happen if this were the vice president of communications for Walmart getting into it with customers or special interest advocates criticizing the company? The executive would likely be reprimanded or even fired. No signs of either happening to Pat Hanlon.

Would it be better if Pat Hanlon bit his lip (or put his hands in his pockets) and refrain from responding to criticisms of his employer? Let the team’s performance on the field do the talking, with the ideal being Hanlon having the opportunity to gloat when the Giants have a great season. Social media provides a forum for listening to what people have to say about your brand- good, bad, and otherwise. But, listening can be difficult if social media is used as a platform for challenging people who are critical or oppose you.

When it comes to social media communication strategy, a figurative leash and muzzle can be valuable tools for resisting the urge to “discuss” issues in public. Listen and learn, but avoid the urge to lash out.

The Past is Never Dead

I was not very productive last week. Fortunately, I know the source of the problem and can address it. But, it really was not my fault that I was distracted from my work. I was attracted to a trend that seems to be sweeping Facebook recently- group pages related to one’s hometown. For me, the page “You might be from West Point, MS if u remember…” was the lure. I noticed the page for a couple of days but did not bother to visit, but when I did I found myself watching a virtual highlight reel of my childhood.

Memories flooded my mind of people, places, and events that made up life in our small town. I eagerly anticipated reading others’ thoughts about their experiences. One of the first thoughts I had as I read posts from others in the group was wondering how long this would last. After all, West Point is a small town- will the group complete its collective historical compilation in a few days or weeks and the group page slowly die? Upon further reflection, I realized this page will not die anytime soon. I thought of the William Faulkner quote from Requiem for a Nun: “The past is never dead. It’s not even past.”

We hold onto the past- the good and sometimes even the bad, but we hold on. There are a variety of reasons for our affinity with the past: simpler times, youthfulness, relationships, and certainty, to name a few. Given the turmoil of the day, looking back for something positive as an anchor is an understandable tendency.

This longing for the past extends to the relationships we have with brands. Many comments on my hometown’s Facebook group page relayed people’s fond memories of a restaurant, store, or other business in town. Many of the businesses we reminisced about are gone today, but the impact they had on our lives remains.

The power possessed by nostalgia should not be overlooked by marketers. While so much emphasis is placed on innovation, “new and improved,” and technological advances, appealing to consumers’ feelings of nostalgia can be a powerful connector. Proven ideas, products, and campaigns often run their course or evolve, but that does not mean they have to be mothballed never to be seen again.

What do you know, do, or sell that would resonate with your customers’ associations with the past? It is a question worth exploring from time to time because “the past never is never dead- it’s not even past.”

Don’t be Seduced by the Data

As a college professor who has watched textbook prices increase at rates greater than inflation for several years, I am very interested in alternatives to delivering vital content without costing a small fortune. Digital textbooks in particular seem to hold great potential as technology improves to deliver content to tablets and smartphones and prices of e-readers decrease. The combination of high prices for print books and development of digital formats would appear to set the stage for a textbook revolution. In fact, there are data to suggest that is the case.

A recent survey of college students sponsored by Kno Inc., an educational software firm, provided an eye-popping statistic about their willingness to adopt digital textbooks: 25% said they would give up sex for a year in exchange for never having to carry bulky textbooks around campus. Whoa! Time to usher in the era of digital textbooks; a significant segment of the textbook buying market has indicated a high level of interest in being able to shift to digital books. Not so fast- all we know at this point is that some students would rather exert less effort on carrying textbooks than having sex.

The findings on college students’ views on print and digital textbooks do not quite match with reality. Despite being available for several years, digital textbooks have yet to be adopted on a wide scale. Digital books’ share of the textbook market is below 10%. Furthermore, only about 2 in 10 college students currently own an e-reader, which is a limitation on mass adoption of digital books. It is possible that digital textbook sales will take off. Personally, I am hopeful that the quality of the digital product will continue to improve and be able to offer students an enhanced learning experience at a good value.

Don’t be seduced by the data; examine research findings critically to evaluate the extent to which consumers’ intentions mirror reality. A gap often exists between what people say they will do and their actions. In the case of the textbook study, I can understand why students would express a desire to not have to tote clunky textbooks on their backs if alternatives were available. But, realities such as inferior digital offerings and lack of owning needed hardware like a tablet or e-reader means that most students will maintain status quo. When data give great hope, cautiously embrace the opportunity. However, seeing is believing; so watch out for data that portrays a mismatch between stated intentions and actual behavior.

eCampus News: “‘Sex vs. Textbooks’ Survey Doesn’t Jibe with Student Preferences”

Managing the Inevitable: Price Increases

We all know about the two things that are inevitable in life: death and taxes. If you operate a business, there is a third inevitability: price increases. Whether it is due to rising costs for transportation, materials, or other expenses thttp://www.blogger.com/img/blank.gified creation of a product or service, passing along price increases to customers is a reality. The decision to raise prices may be rather easy; communicating price increases to customers may not go so smoothly. Just ask Netflix.

Earlier this month, Netflix created a firestorm among its subscribers when it announced that it was unbundling the DVD by mail and online streaming options for receiving movies. Customers who pay $7.99 for mail delivery plus an additional $2 for online streaming will have to pay $7.99 for each plan beginning in September. The 60% price increase for affected customers did not sit well with many of them. The result is not surprising- many customers say they will drop Netflix service rather than be forced to decide if they want to spend $6 a month more for both services. With 25 million subscribers, it will be interesting to see: 1) how many customers follow through and cancel their subscription,and 2) if their departure will have a noticeable impact on Netflix’s profitability.

The problem Netflix created was not that it raised prices, but it did a very poor job of communicating why prices were raised. Do customers deserve an explanation when prices go up? Absolutely! If we are going to talk about being in relationship with customers, part of being in a relationship includes working through rough times such as when prices must rise. In this case, Netflix is dealing with rising costs of home delivery as well as licensing fees paid to movie studios and must stem the tide by changing its pricing models.

When prices must increase, it is imperative that the marketer communicate how the product remains a good value. Otherwise, why should a customer pay more just to help cover costs? Netflix could defuse some of the sting of its price increase by comparing its value proposition (e.g., selection, convenience, and cost) to Blockbuster, Redbox, and other options for movies and entertainment. Never feel that you have to apologize for your price, but make certain that the value offered is never in doubt.

Sell Solutions, not Products

Marketers are constantly on the lookout for the “next big thing,” aspiring to hit a home run with a new product that contributes to profitability and strengthens the brand in the marketplace. Unfortunately, most new product development does very little to meet these aims. Why? Think about most new products you encounter – they are not very new at all. Instead, they are minor modifications of existing offerings- new colors, flavors, or sizes- not new in the sense that one would expect.

Another reason why most new products struggle to overcome the odds of failing in the market (80 to 90% of new products do not stick on the market long term) is because of an incorrect marketing focus. People want solutions to their problems, not new products. Yet, a tendency exists to focus on a product’s features and benefits. Oh sure, most products tout their point of difference, how they are better or different than competition. But, that still misses the mark of relating a product to how it adds value for users.

One example of a product that understands that marketing is an enterprise of offering solutions instead of products is Keurig. The coffee machine and single-serve beverage unit of Green Mountain Coffee Roasters got it right with its K-cup concept. The K-cup brewers and single cup varieties of coffees, teas, and other beverages make it easy and cost effective for consumers to brew drinks. And, while customers can order products directly from Keurig, they are not held captive and forced to buy from a single source. K-cups are also available at supermarkets, specialty stores, and department stores.

The impact of Keurig’s K-cup brewers is evident in that it has quickly captured a 6% market share of the home-brew market, a market that has grown during the economic downturn. An alliance with Starbucks will bring K-cup offerings of Starbucks coffees to stores this fall, further entrenching Keurig as a force in the single-cup coffee market. Its ease of use and ability to sample a wide variety of coffee products through product assortments has definitely increased this blogger’s coffee consumption. While I wanted the product (the brewing machine), what I came to experience was the solution of making beverages quickly and at a lower cost than visiting a coffeehouse.

As I sip the final few drops a cup of Green Mountain Coffee Dark Magic, the takeaway is this: strive to offer customers solutions to problems or situations. They will reward you with greater purchase frequency and brand loyalty. Products are interchangeable; solutions eliminate the need to seek out products.

Be Careful What You Ask For…

Last Saturday, my family made a trek from Nashville to Cincinnati. While planning for the trip, I realized that there would be a NASCAR Sprint Cup Series race at Kentucky Speedway that day. The track is located just off I-71 about 40 miles south of Cincinnati. With a 7:30 pm start, I knew that there would likely be traffic near the exits for the track that would delay us for a while. Well, “a while” took on a whole new meaning as it took us more than 4 hours to move approximately 18 miles past the track.

As the length of time increased sitting in what became a parking lot on I-71, my thoughts turned from our travel schedule to the plight of thousands of racing fans. It became evident that many people stranded on the interstate would be late for the race. For many people, the delay turned into completely missing the race. Investments of time and money had gone down the drain. For those who did manage to get to the track for the race, many of them had to endure another traffic nightmare after the race. On top of the major traffic problems, fans voiced complaints with many aspects of the customer experience such as inadequate parking, insufficient toilet facilities, rude employees, and a chaotic situation overall.

What made the epic service failure at Kentucky Speedway surprising were the struggles the track went through to get a NASCAR Sprint Cup Series race in the first place. For more than 10 years, Kentucky Speedway lobbied, begged, and even sued NASCAR in an effort to get a race on the schedule. Finally, persistence was rewarded with the inaugural Quaker State 400. Time for Kentucky Speedway to shine and put on a show that would show NASCAR that it should have been awarded a race a long time ago… didn’t happen! Poor planning and execution left Kentucky Speedway unable to deliver the promised experience of a NASCAR Sprint Cup Series race.

The lesson for marketers from this unpleasant experience is: Be careful what you ask for because if you get it, you may not be able to handle it. If you are looking to stimulate demand, boost sales, or draw an audience, are you prepared for a scenario of tremendous customer response? Kentucky Speedway is not the first business to fall on its face when trying to make a good impression. Some businesses that have made offers via Groupon have struggled to meet surges in customer demand. Thus, quality suffers and the aim of initiating relationships with new customers by drawing them in with a coupon incentive is negated. If you are planning a unique event or promotion, are you prepared to handle the spike in business it may bring? Is there a recovery plan in place in case service failure occurs?

The customer chaos that transpired at Kentucky Speedway was more than service failure- it was a service disaster. It was inexcusable and should have never happened. Protect the most valuable asset you have: customer trust in your brand.

A Toaster’s Perspective on Customer Experience

I returned recently from another memorable family vacation in Canada. We visited Niagara Falls and Toronto as well as made our first trip to Ottawa. All three cities offered fun and entertainment, but those stops were merely warm-ups for the highlight of the trip: a visit with my 87-year-old aunt in Granby, Quebec, located 50 miles southeast of Montreal. Aunt Marcelle truly is inspirational- she possesses a combination of beauty, grace, charm, and intellect that makes her one of a kind.

Aunt Marcelle has something else that is unique: A toaster that gives a refresher course in designing customer experience. It is not just any toaster; it is a shiny, silver 50-year-old Sunbeam model that I am pretty sure could be used as an anchor for a small boat when its toasting days are over. Yes, I said a 50-year-old toaster. Marcelle said it has needed only one repair during that time which cost $20. Each morning, I found myself marveling at the toaster as it performed its sole function. What made the toaster even more remarkable was its simplicity- there were no buttons, levers, or switches. Plug it in, drop in bread, and let the magic begin! The finished product was nearly perfect toast- browned but not burned.

The toaster did more than make breakfast; it was a reminder about the importance of simplicity when designing customer experience. Inclusion of features in a product or service often occurs because the capability exists to develop them along with a belief that customers would value the features. The result sometimes is over-engineered products that may be less convenient to use and more prone to failure compared to a product with a more simplistic design. Also, a trend toward developing products that multi-task leads to the possibility of negatively impacting customer experience if customers perceive that tradeoffs in quality or ease of use exist.

The familiar KISS method (Keep It Simple, Stupid!) comes to mind as I reflect on Aunt Marcelle’s classic toaster. Customers do not want to be dazzled with the capability of a product or service as much as they want to enjoy the benefits of how it adds value to their lives. For some people, simplicity has a connotation with being unsophisticated. If that is the case, I am content to have unsophisticated interactions with companies and brands that can simplify the experience of using their products or services.