Alan See

I recently attended a faculty meeting to kick-off the New Year. One of the presentations disclosed enrollment trends that did not surprise, but none the less disappointed some of my fellow faculty. An increasing number of students are enrolling in online as opposed to on-campus courses. In short, the online modality more closely matches many students desired method for consuming education. Although most of the faculty can teach both online and on-campus, their traditional teaching backgrounds creates a comfort level and natural desire to interact with their students in a class room environment. The shift from a class room setting to online just doesn’t feel right to some, and that can make it difficult to embrace change even when the data states the obvious.

Shifting business environments make change necessary, but it doesn’t mean it will be easy. In my role as VP of Marketing there are always struggles to keep new initiatives on track even when the data indicates that the change is not optional. Strong feelings to revert back to the old status quo are often lurking just below the surface. For example, a shift in our media planning recommendations away from traditional media products and into earned media programs at times creates fear, uncertainty and doubt within parts of our organization. You can just imagine the questions swirling:

·         What will our traditional customers think if we’re recommending media they’ve never tried before?

·         How will our competition, not to mention our media partners, react to our strategy changes?

·         How do we know for sure that these new media channels will deliver results?

Change has no conscience. It doesn’t play favorites, or take prisoners. In fact change ruthlessly destroys organizations that don’t adapt. So, from a leadership perspective here are three traits I intend to embrace this year:

1.       Take the initiative by putting my team in charge of problem-solving. If I make them (or let them) wait for hand-feed directions I’ll slow down the process.

2.       Take more risks and be willing to break with the past. I’ll ask my team to mitigate risk when possible; but make no mistake … both my team and I will need more nerve in 2010 in order to keep our new initiatives on track.

3.       Maintain faith in the new initiatives. As soon as change starts throwing off sparks, people become preoccupied with all the headaches, aggravations, and fears. I know there will be dark days; however, I’ll challenge my team to join me helping our entire organization look beyond the bleakness of the moment, and envision the possibilities of tomorrow.

I’m really looking forward to 2010’s opportunities and challenges. How about you?

I was in Junior High School during the early 1970s recession and I can still remember my parent’s struggle to keep our small family business from closing. In the late 70s I enrolled in college and completed my undergraduate degree just in time to enter the job market during the recession of the early 1980s. According to a study by Yale University’s Lisa Kahn, college graduates who entered the job market during that time period made significantly less money for at least a decade, compared with those who graduated in more prosperous times. I’m really not complaining, although I will add that I went back to school and completed my MBA just in time for the 1987 stock market crash. Is that funny or what? OK, my timing seems to be a little off, and my children have heard all my … “the snow was always deeper” … type of stories. Still, how is your organization listening and learning to what’s important to today’s cautious consumer?

In my post “How to Engage the 2009 Customer Mindset” I mentioned that sensitivity to total price, intolerance of poor customer service responses, and a focus on quality and trust was very important. I still stand by those recommendations, but when your customer’s appear to be hunkering down for the long-haul how do you find out what they really value? Consumer needs and preferences are shifting. That means marketers should take extra care as it relates to adjusting their marketing mix and one of the best ways to know what adjustments are needed is to listen. Is your organization listening? Social networking platforms are valuable listening posts and provide a rare opportunity to quickly learn what consumers really value. While reading their words you have the freedom to focus on what’s truly important to the writer. Whether the dialogues are in a group discussion on LinkedIn or referenced in 140 character tweets on Twitter; take time to listen and understand the conversation.

It’s not just a cliché; when people get lost, they really do tend to walk in circles. According to research by psychologist Jan Souman; only when the sun or moon was visible as a reference could the subjects walk in a straight line. Otherwise, they often traced circles without ever realizing it. Reference points are a good thing because humans are perhaps the greatest wanders on the planet. From below sea level at Death Valley to Mount Everest, the highest point on earth, it seems we have a basic compulsion to see what’s over the hill. Or under the hill as was the case with two young girls in South Australia.

Walking through storm drains is known as “urban exploring” and has a popular sub-culture following in many major cities. As reported by the Adelaide Metropolitan Fire Service two young girls found themselves lost in a drain system while on such an exploring adventure. Underground the girls lost their frame of reference … they did have their cell phones though. However; rather than call their parents or 000 (911 in the U.S.) they used their mobile devices to send a message for help out to their friends via Facebook. Glenn Benham from the MFS said it was fortunate a young friend was online at the time and was able to call help for them; although the youth’s fixation on Facebook actually delayed their rescue by hours.

“If they were able to access Facebook from their mobile phones, they could have called triple-0, so the point being they could have called us directly and we could have got there quicker than relying on someone being online and replying to them and eventually having to call us via triple-0 anyway.”

Why did they choose to reach out to their friends on Facebook rather than just call for help? My guess is because they didn’t want mom, dad or any authority figure to hear directly from them that they were exploring areas that were off-limits to begin with. You can imagine how that conversation might have sounded:

Ring … Ring … Ring

Father: Hello

Daughter: Dad, I’m lost… help me!

Father: What do you mean you’re lost? You’re calling on your cell phone … where are you calling from?

Daughter: Well, you know that storm drain you told me never to play around? I went inside to explore and now I don’t really know where I am … or how to get out.

Father: I’ll get help … but when this is done … you are so grounded!

OK, the “grounded” part of the conversation might actually wait until after the rescue, but I think you get my meaning. But what if the fear of getting in trouble really wasn’t the motivating factor for not making a direct call to an authority figure? It’s interesting to consider that social media may have become such a pervasive part of their lives that it was the natural first line of response for communicating a message to others. It’s something to think about as you consider your marketing communication channels.

My post “Using Marketing Booth Babes” sparked some lively discussion. The original post asked marketer’s for their opinion on the practice of using booth babes (scantily clad women … or men) to attract attention to their organizations booth at conferences and trade-shows. The use of sexual tension to create a direction for a movie plot or to sell products is an age-old strategy. However, many readers agreed that using sex as a way to suggest product “sizzle” was no longer very original, and in fact could be risky if it actually alienated potential purchasers.

So what is your opinion of the practice of using “Twitter Babes” to promote and draw in page followers? I’m not talking about spam accounts that are pornographic in nature. You can hit the block function on spammers easily enough. And I’m not talking about the properties where you might actually expect to see scantily clad women; for example, individuals who follow pages selling Victoria’s Secret like brands and products probably expect to see women in lingerie. What I’m thinking about are those Twitter pages where the bio, homepage URL and even the customized background suggest a professional intention that in no way requires a string bikini woman or ripped abs man as the picture icon. The “June 2009 State of the Twittersphere” report from the folks at HubSpot lists some interesting Twitter factoids:

• 79.79% fail to provide a homepage URL
• 75.86% of users have not entered a bio in their profile
• 68.68% have not specified a location
• 54.88% have never tweeted

Why are these factoids important? Because, when people are deciding whether to follow your page they look at your recent updates, bio, URL, location and picture icon to get a sense of who you really are. In short, Twitter is an extension of your brand. For that reason you should make sure your profile details, including your picture, supports your strategic goals and objectives.

The September 2009 issue of Inc. magazine showcases the 500 fastest-growing private companies. Forty-eight advertising and marketing companies are listed and a recurring theme among those organizations is a performance-based business model. In other words, the client only pays when customers take action. Pay-for-Call, Cost-per-Action, Pay-per-Sale, Revenue-Sharing, Profit-Sharing; make no mistake, performance-based business models contain elements of risk, and are taking center-stage in our current economy.

Well, “taking center-stage” may be overstated as the need to measure marketing performance has been a hot topic for several years now. Case studies that document marketing-return-on-investment (MROI) and articles covering the short tenure of marketing leaders who do not quickly deliver measurable results are numerous. So what’s different about the current trend? Traditionally, one might view the agency business model as low risk-low reward. This means that the advertiser pays 100% for all goods and services and then owns 100% of the resulting efforts. However, I’m sure there are several agencies who would argue that they have always been held accountable for measurable results no matter how the business model is defined. I’m also sure there are advertisers who would counter with agency invoices that they felt did not reflect a low reward trade-off.

All forms of advertising pose some risk, and no agency can afford to work for free - so we can’t hope to eliminate risk or reward in advertising. However, advertisers and agencies can negotiate with one another to find business models that represent acceptable levels of risk and reward for both parties. Performance based advertising isn’t for everyone and it’s not right for every situation; but given the current economic climate it’s worth exploring.

Are you friending, linking, tweeting and blogging? Social media is driving a wave of human interaction around the world. In fact, I find myself approaching the triple 3K mark on twitter; 3,000 tweets, 3,000 followers and 3,000 connections. Those are fairly low numbers when compared to many avid twitter users; although high enough to rank in the top one percent of users, at least according to Twitter Grader . But what does it all mean? Do social media sites encourage people to concentrate on their number of connections rather than build actual relationships? Is social media best used by individuals; or will it really change the way organizations engage their customers? And what about the ROI; is the return on relationships something that can (or should) be measured?

Some marketer’s are still eager to list the reasons why they don’t believe in social media platforms.

• It’s for self-promoters or the unemployed.
• It’s for teenagers.
• It’s just over-sharing too much trivial babble.
• It doesn’t directly drive sales leads.
• I can’t control the marketing message.
• There is no measurable ROI.

While all those may be true in some cases, you’re not doing your organization any favors by dismissing the game changing power behind the new social media applications. At a high-level social media marketing is about influencing the customer experience by engaging in dialogue with the customer in order to build a trusted relationship over time. The customer experience refers to all touch points people have from the moment they are aware of a need until they have fulfilled the need or reached a certain goal. To make the social-ready transformation an organization may need to adopt a new mindset. Most transformations involve strategy, technology and processes and a social media transformation is no different in that respect.

1. Strategy: How well does your social media plan support your overall marketing strategy?

2. Technology: Do you have the technology and infrastructure to support your social media goals and objectives?

3. Processes: Do you have the operational processes in place to support your social media goals and objectives?

In the last few months we’ve noticed that many organizations tend to fall in the following broad categories as it relates to the key transformation areas above:

The Broadcaster:
The Broadcaster is typically focused on one way communications and is most comfortable in the traditional media world of mass marketing. Leveraging typical “push marketing” tools and tactics the Broadcaster pushes their product towards the audience which may or may not be aware of it. The Broadcaster largely focuses on the features of their product or service and seeks a direct response from the mass audience. Often times the Broadcaster is focused on a short-term strategy that involves a specific event or time-based campaign (Christmas deals, Back-to-School, etc).

The Listener:
The Listener tends to focus on push marketing tactics; but also considers customer feedback. The Listener may have customer listening posts established in the form of brand monitoring initiatives, although those initiatives may be fairly informal.

The Conversationalist:
The Conversationalist is more in the “pull marketing” camp. The Conversationalist is typically interested in interacting with their target market at a deeper level of engagement through tighter relevance, content and stronger brand identification. The Conversationalist is focused on the development of trust and perceived value.

The Community Builder:
The Community Builder is fully in the pull marketing camp. The Community Builder looks for ways to engage their customers and prospects in two-way conversations, and is comfortable with the concepts of user created content and co-creation. The Community Builder is focused on influencing and involving vs. educating and controlling their audience.

Building a social-ready organization is an on-going journey. And that journey as well as an organizations position on the social media continuum is determined by several factors, including; overall marketing strategy, desired customer experience, business model, and the competitive environment. Social media isn’t going away so you need to set a course that’s right for your corporate goals and objectives.

“Only the Employed Need Apply.” According to a recent article in the Wall Street Journal many employers are bypassing the jobless to target those still working, reasoning that those still working are really the top performers. Other strategy guru’s are pointing out that because of record layoffs; the job market is actually flooded with qualified applicants and this presents an opportunity to hire talented employees – at a discount - who would not have normally been available.

An economic downturn can present an opportunity to reposition your team for the future. However; both hiring strategies have drawbacks. Those still working at other firms are not guaranteed to be top performers under your corporate culture. And if you pay a salary below market value, your employees may be less satisfied, and you risk a higher turnover. In the long run, this can cost your company a good deal in lost productivity and time hiring and training.

Do you consider your employees one of your most valuable investments? If so, the current economic environment could provide the cover to build a competitive “employee-based” advantage. What are you doing to plan your hiring so that you receive an optimal return on your investment in terms of productivity, customer satisfaction and the satisfaction of your employees?

June sales are leaving many retailers anxious about the approaching back-to-school shopping season. Consumers continue to buy less and they are more discriminating than ever. However; many brand consultants argue that the recession has not created a pricing shift but a higher degree of awareness regarding the value of products and brands. Today’s discount shopper is clearly reluctant to spend on premium brands if the value is missing.

I recently pulled out C. Britt Beemer and Robert L. Shook’s book “It Takes a Prophet to Make a Profit … 15 Trends that are Reshaping American Business.” Published in 2001, trend #6 reads:

“Consumers Are Reluctant to Pay Full Retail Price”

Their research showed the number one reason Americans dislike paying full retail price is that they think prices are too high. Fifty-seven percent of discount shoppers expressed that opinion. In addition, they reported:

• 82 percent said they knew the item would be on sale someday.
• 82 percent also said that somebody always has it on sale.
• 79 percent said they normally wait for sales because they don’t need an item right away.
• 46 percent felt that quality has suffered.
• 34 percent said that service has declined.

It’s difficult to read consumers because they are not always consistent. But when your customers are skittish about spending it’s not hard to see that both quality and value for the dollar are important.

Grocery store’s who tried to attract customer’s by influencing the customer shopping experience via coffee bars, fancy bakeries and the availability of exotic products are going back to the basics. Major players such as Kroger, Stop & Shop, Publix and other big food chains are now refocusing efforts on the middle aisles where as much as 70% of their weekly profits are generated. In fact, many retailers are also expected to slice the assortment of products in their stores by at least 15%. According to a recent article in the Wall Street Journal (“Retailers Cut Back on Variety, Once the Spice of Marketing”) retailers are trying to cater to budget-conscious shoppers who want to simplify shopping trips and stick to familiar products.

Incremental variations on popular products can be confusing since some 47,113 new products, variations or sizes were launched last year, more than twice as many as in 1998. For example, a typical Target store has 88 kinds of Pantene shampoo, conditioner and styling products. How many hair products do you need? I don’t need any; but then again, I’m nearly bald. If your favorite grocery retailer stops carrying a specific product in the size, flavor or fragrance you prefer are you likely to defect to another store? I’m not; however, if they change my experience by closing more check-out lanes that could make a difference because I hate to wait.

The current economy is forcing changes that may impact the customer experience. What is a show-stopper for you?

Some 18% of small-business owners surveyed in April said they are working a second job, according to the latest findings from the American Express Open Small Business Monitor. It’s an indicator that many business owners are experiencing challenges in an economic environment that they haven’t faced before. It also sheds a new light on the lead generation process. The media landscape has expanded with a proliferation of channels touting more eyeballs and deeper customer engagement. More eyeballs and deeper engagement are both great. But when sales are down and you are forced to stop drawing a salary in order to deal with reduced cash flow you’ve got to be asking yourself;

“Where are the local customers who are ready to buy right now?”

According to research from comScore, Knowledge Networks/SRI, and other leading consumer media usage organizations; technology has dramatically improved the ability for consumers to research and shop before purchasing, causing previously used benchmarks like circulation to become weak indicators of expected sales. So, without relying on circulation numbers to derive a semi-accurate measure of expected sales how does an advertiser know where to spend their advertising dollars in today’s mix of print and online local business directories?

The key is to understand how online vs. offline media behavior differs between shoppers and buyers. Though online and offline behavior are not mutually exclusive of each other, each follows a different progression through the four primary phases of the buying cycle according to research from comScore and TMP.

                                                            Online             Offline

Need Definition                                   42%                 16%

Research & Consideration                  23%                 23%

Intent / Shop                                       17%                 21%

Local Business Selection                     19%                 41%

So, how does this data translate for the advertiser? TMP expresses it as, “When it comes to researching and purchasing, offline search is used overwhelmingly when a business has already been identified and consumers are ready to purchase. Online search, on the other hand, is used earlier in the buying process.” That means when putting together your directory ad, know that most consumers already know what they are looking for. They’ve decided to buy; now it’s more about informing and educating them quickly and making it easy for them to contact and do business with you.