davidpoulos.com

Category: Management

  • Brand Loyalty Is More Fragile Than You Think

    Brand Loyalty Is More Fragile Than You Think

    Marketing and sales pros know that people don’t really buy features and benefits, they buy feelings and stories. Your brand (hopefully) tells your buying audience a compelling story, one that gets retold each time they interact with your brand, which makes them feel a certain way, under a variety of circumstances. For retailers this means that each time customers shop your store, whether brick and mortar or online, they have certain expectations of that experience, and if you don’t live up to them, you may be doing damage to your brand. This makes customer service a key component to brand loyalty.

    I was speaking with a friend of ours the other day and we were comparing the stores where we buy wine. I buy at a small, boutique, one-off adult beverage emporium, one that specializes in having a large selection of micro-brews, and a strong selection of more esoteric Bourbons and Scotches, and a terrific selection of wines from around the world. She shops at a chain store, owned by a major grocery retailer, with a huge inventory of all the top brands, great pricing due to volume buys, and a no-frills approach to store design and displays.

    The reason she was asking me where I buy is because she had recently experienced three separate instances of poor customer service by store sales staff. She swore that after three strikes, she would never patronize that store again. Her brand loyalty to that brand, which had been off-the-charts strong before, based on it’s affiliation with the larger grocery chain, had been eroded to zero in just three perceived poor incidences of inattentive, rude, or unpleasant behavior. The selection, pricing, hours, decor and layout hadn’t changed one bit, but her perception of the store and its contents changed dramatically, for the worse.

    Now I’m pretty sure the large chain won’t really miss her business, and will likely never make positive changes to the sales staff’s training or behavior guidelines, probably because they will never know they have a problem, and she has no reason to tell them about it. But if you multiply her experience by a hundred, or several hundred, or several thousand chain-wide, you start to see some negative effects on the balance sheet. If you disappoint your target audience badly enough, or often enough, then your brand is no longer what it was.

    Ongoing feedback from customers, becoming more customer-centric in your operations as well as your marketing, can help stem this downward spiral and if caught early enough can give you a start on reversing it. Some companies are acutely aware of this, and take great pains to listen carefully to their customers. This customer brand monitoring takes several forms – feedback cards, social media monitoring, ongoing survey research, continual customer service call monitoring and review, and a host of technological solutions that track and measure customer attitude and preferences.

    One of the more diligent brands in this regard is Hilton. They religiously guard their premium brand, listening carefully to all customer feedback, and taking swift, effective steps to satisfy customer complaints. They do it so well that most complainers are turned into brand evangelists! They have an overwhelmingly positive customer rating in a variety of categories by organizations like J.D. Power, Zogby Analytics, and media outlet lists like MSN, List25, and Wall St. 24/7. They have realized that their customer interactions are a driving force in their brand loyalty, and take iron-clad, positive steps to protect it and bolster it with each customer experience they deliver.

    The real message is that while a single customer may not contribute much to your bottom line on their own, the symptoms and actions that lead to that customer losing their loyalty to the brand need to be addressed before they “go viral” among your customers and degrade the brand. As Barney Fife once said, “we can’t have that kind of behavior, we gotta nip it in the bud” when you fail to deliver the highest level customer experience each and every time.

  • Make Your Marketing Dollars Work As Hard As You Do

    Make Your Marketing Dollars Work As Hard As You Do

    Marketers are typically asked to justify their expenditures, to craft a nearly inviolate budget often as much as two years ahead of time, and to stick to it to control spending. Rarely are they asked if those expenditures are the most cost-efficient solutions, or if allocating more resources to a particular item might improve its resulting gains over above the spend, by scale or efficiency. Corporations with a culture of control focus more on the outflow than the value of the resulting inflow when discussing marketing expenditure. Based on years of experience with both winners and losers in the corporate and non-profit world, I can honestly say that this might be a losing approach to marketing.

    Corporate leaders often assume that marketing is ALWAYS doing the most cost-effective thing to achieve results, based on a cost-conscious culture and the nature of marketing as an accountable function. Spend “X”, and you can usually count on “Y” coming back. But what if you doubled “X” and “Y” quadrupled or quintupled? Would they have approved the additional expense at the beginning of the year, prior to the effort? Probably not. In some cases, more time is spent trying to justify expenditure than on creating the method and message of the expense. To me, that’s crazy!

    Fortunately, in today’s expanded culture of innovation, a business climate rife with entrepreneur-ism and start-up fever, fast-cycle test-fail-repeat operations are becoming more prominent, and with that comes an easing of the penny-pinching, along with a realization that “if we try ten things and six work, we’re ahead of the game” for marketing departments lead by enlightened senior executives.

    Finding such an enlightened marketing leader requires some work, but the effort is almost universally worth it based upon the game-changing results that can be had as a result of their efforts when supported by senior leadership. They are often cloaked in other experiences, other disciplines, and usually don’t fit the linear career paths that the HR Department is trained to look for. Such outliers can really move the needle, and are worth the effort to find. But that’s not the whole story.

    A quick analysis of your marketing expenditure will show you where the money is going, and each item should provide some indication as to what it’s returning for that spend, either in dollars, or results of some kind. If it doesn’t, some sort of metric needs to be “baked in” to that activity so that you can make it accountable. Once that’s in place in the budget, sort and rank the items by results, not by cost, and see if the order changes from the cost-based ranking. Comparing those two lists seems simple, but it can be an eye-opener when seeking an edge, by finding inefficiencies and reallocating resources to drive growth and revenue generation. Like the stock market or Las Vegas, you double down on the winners and bag the losers quickly, to mitigate risk and drive growth of return.

    The other advantage to this type of approach is that you avoid the “cheap trap” of not thinking large enough, based on a lack of faith in the results. Thinking bigger has a really strong track record of success, doing everything as cheap as possible doesn’t, because many great ideas, initiatives, campaigns and other activities die from capitol starvation before they ever get a chance to come to fruition. If the initial tests are even reasonably favorable, feeding that idea has a 2000% chance of succeeding over the one that breaks even and stays small. Good testing programs and solid research mitigate that risk even further, and will highlight even greater opportunities as results come in and new ideas surface based on their successes. It’s a good day when the winners spawn more winners.

    Good ideas, good research, patience and faith combine to drive success in marketing. As a famous marketer for a large consumer products company once was rumored to utter, “every dime I spend on events and marketing comes back to our company dressed up like a quarter.” When you scale up, double-down on winners, and feed the best ideas, that quarter quickly becomes a dollar.

  • You CAN Teach An Old Dog New Tricks . . . Sometimes You Don’t Have To

    You CAN Teach An Old Dog New Tricks . . . Sometimes You Don’t Have To

    In the world of marketing, there are new things to learn, new innovations introduced, new techniques that surface, every day. It’s a fast-moving, wide-open world where marketers chase the next big thing, the new, shiny object that promises more information, faster feedback, better data or segmentation, easier tracking, more operations under one platform, and other enticing offers to help marketers make sense of this huge, complex puzzle called marketing.

    But sometimes, that new shiny object turns out to be a tarnished, older, less spiffy tactic in a new package, or a reboot of a more traditional tactic, dressed in digital clothing. Old or new, the object of the game is to connect with, to engage, to persuade, and to change opinion and the subsequent behavior to a purchase.

    Sometimes marketing skills and practices can be applied to new tactics as well. E-mail is a strong, successful tactic when used under the right circumstances with the right audience. The same characteristics that make an effective e-mail campaign, the same skills that e-mail uses to reach the audience effectively –

    • strong, persuasive copy;
    • a solid, clear, concise and compelling offer
    • eye-catching headlines and carrier tagline (read “Subject Line”);
    • the right list, one that is accepting, responsive and relevant and clean of undeliverable addresses;
    • attractive imagery that resonates with the audience and conveys the message and reinforces the brand;

    are those used in direct mail. Yet direct mail, and it’s practitioners, are increasingly marginalized by clients, agency leaders, and pundits as a dying art, an antiquated technique, an anachronism. However, those same experts agree that those elements are what makes e-mail campaigns successful – so why are those skills declining?

    One reason might be the ease of using e-mail versus crafting a direct mail campaign. There are lots of moving parts to doing direct mail well – there are formats, sizes, stock selections, printing techniques, postal regulations, list prep, personalization issues, pre-sort and data processing, on top of the writing, imagery, offer, list and subject line to consider. The time required to put together and manage a direct mail campaign is almost always longer than an e-mail campaign – production time, mailing time, list data management, merge-purge, and other operations to allow for postal delivery, and the physical transport from one production process to another takes much more time than writing, designing, loading, and sending an e-mail. That additional time comes in handy, it allows for lots of thought, editing, revision and review by lots of different sets of eyes along the way, with lots of opportunity to spot errors, typos, color and size problems, regulatory and weight issues, and a host of other potential errors that can sink your program and tank the results. E-mail, thanks to a variety of competent and inexpensive software programs, can be executed solo, with no oversight as to what goes out, how it’s designed, and no restraint as to the content, the biggest constraint being the list has to be deemed an “opt-in” originated, so that SPAM regulations don’t apply.

    [pullquote align=”left or right”]Old or new, the object of the game is to connect with, to engage, to persuade, and to change opinion and the subsequent behavior to a purchase.[/pullquote]

    Yet, all the simplicity and speed of e-mail should free up time to write tremendous copy, to craft a very persuasive offer, to tell a story with endless insight and as much real estate on the page as you need to tell the full compelling tale. But with all that extra time, how many top-quality, really creative and persuasive e-mails have you read recently? Based on the total received on a given day, not many arrive in my inbox that compel me to do anything but hit “delete” . . .

    . . . and the ones that do, I’ve found, were usually crafted and written by those with direct mail experience in their past. DM pros make great e-mailers, but the reverse is not usually true.

    Turns out, the craft of copywriting, the ability to relate directly to an audience in writing, the skill required to turn features into benefits, to make offers that are easily interpreted and unambiguous, to build rapport with the audience, to engage and entice that audience with something as mundane as a plastic widget or a monthly meeting, is still just as valuable in the new digital frontier as it was in the bad old days of catalogs and direct marketing. Kudos go to those who’ve taken the time and energy to learn their craft, to perfect their art, to become true 10,000-hour experts at the art and science of communicating to an audience of individuals. Next time you think you’ll dash off an e-mail to your hot list and it takes you twenty minutes or less to get it out the door, take a few minutes before you hit the “send” button, and see if that’s really the best, the strongest, the most interesting and compelling message you could possibly send . . . if not, maybe wait until someone else gets to read it before you launch it out into the ether . . . the job you save may be your own!

  • Persistence More Important Than Ever To Close The Sale

    Persistence More Important Than Ever To Close The Sale

    In the modern world, the practice of sales, whether it be called “Account-based Marketing” or Business Development, or some other euphemism, is as tough as it’s ever been to be effective. With over a thousand marketing messages or more hitting the average citizen every single day, it’s harder than ever to cut through the clutter, to get people’s attention, to gain their engagement and their focus for even a few moments, let alone tell a compelling story and persuade them to take whatever action that moves the needle for your firm. One of the most effective tactics is one of the oldest, and it still works in today’s environment – persistence.

    We’ve all seen the memes online for success in sales, indicating that most B2B sales are made after the 12th or 14th contact with a prospect, less than 5% get made after the initial contact, etc. A key ingredient seems to be “keeping after the prospect until they cave in and buy.” I don’t frame it that way to sales-based clients, but that’s essentially what you’re trying to do. Entire systems and software platforms have been created and sold based on this endless tracking and following strategy, scheduling the next contact, ranking the viability and likelihood of a sale, gauging their ability to buy, and when. The systematization, the automation of the sales process has been driven to new levels in an attempt to counter this profusion of messages and the shortening attention span of the prospect audience.

    Technology has made this not only possible, but extremely easy, and as a result, sales management of all stripes have latched onto this approach as a way of integrating sales into their other business processes. You can now track and call a “Lead” anyone who clicks on a link in a search results report. And beyond that, you can have your messaging and tracking follow them on their entire journey through the ether that is the Internet, popping up whenever and wherever they travel.

    This is sales?

    True sales professionals know that these are simply tools, not replacements for a solid set of skills, like active listening, seeking out pain points, probing for possible objections, collaboratively crafting solutions, over-delivering and under-promising. The essence of all of these things is that you have to actually get in front of and speak directly with people who make the buying decision. Conducting sales activities “remotely” will only take you so far, at some point you have to interface with the customer. Usually more than one such engagement is required, because the basis of a sale is trust n the sales person, and trust in the company behind them to back up their promises and claims, and that trust takes several encounters to achieve. Hence the need for persistence, to keep coming up with a new, compelling reason to get in front of that prospect and convincing them to see things your way.

    The skill in all this occasionally takes the form of sensitivity – the gauge of how tolerant the prospect will be in receiving follow-up messages, calls, e-mails, communications from the sales person, before they start to work against them and annoy the prospect. Persistence is not just being relentless. It’s being in contact on a regular, ongoing basis, and offering something of value to the client with each interaction, building trust progressively, offering to work the prospect through whatever challenge you’ve agreed they face together, showing them how you’ll achieve the desired result. For professional services or big-ticket items, the consultative approach is by far the most effective.

    And that takes persistence.

    If you’re on the fifth or sixth contact with a well-qualified prospect, it may seem like overkill, but if you hang in there, the seventh touch may be the charm. For efficiency’s sake, the game is to try and reduce that number of touches to the most effective use of your time and resources without negatively affecting the outcome. But if you plan on investing significant time with each prospect, and have a constantly full pipeline of incoming prospects, eventually a rhythm develops and you can gauge how many touches are required for each one, and can start to predict and plan your time investment accordingly.

    As each one moves through the pipeline toward the close, a new one starts with an initial interview, and proceeds through the consultative system toward a close and into the delivery or service phase. By being systematically persistent, you’ve remained top-of-mind without being annoying and driving interest downward, provided the prospect with value before the sale, and shown your ability to deliver, to keep to a schedule, to bring something to the table, and have developed trust.

    Now that’s sales!

    Mechanizing, automating, scoring, tracking, weighting, prioritizing, and all the other functions are merely supports for the basic activity of communicating effectively and persistently with the customer to achieve a result. Of course all this communication has lots of other benefits as well, since the more you know and can learn about the customer, the more effective you can make the solution you’re delivering, and the more opportunity you can uncover for additional sales interaction with them – they’ve told you what they want, you just have to deliver it at the right time in the relationship.

    Message clutter, short attention spans, over-scheduling, software profusion, excessive meaningless contacts and content in the inbox, are all enemies of the practice of effective sales, which requires honest, direct, persistent communication with actual people. Everything else is distraction, which won’t put food on the salesperson’s table, or fill the company coffers with anything but empty promises. Avoid distraction, dig in, and connect with prospects – they’ll appreciate your honesty, and enjoy the attention.

  • Insight Versus Data – Don’t Mistake The Two

    Insight Versus Data – Don’t Mistake The Two

    Contrary to popular belief, not only can’t “everyone do marketing”, but the myth that “the Marketing department dreams this stuff up every day . . .” still persists in modern corporate America. I’d like to dispel that last myth, and cover one other as well, that “We have lots of customer data, we can use that to guide our copy and creative platforms with greater success,” that has arisen again and again in discussions of big data with regard to marketing.

    Myth 1 – Marketing comes up with offers, images, copy, color palette, tag lines, slogans, ads and social media posts on their own, every day, just any old idea that surfaces can be put into play and used.

    Nothing could be further from the truth. This myth originated with and has been propagated by those who DON’T work regularly in marketing. Those who are on the outside looking in, so to speak, see a hive of analytical and creative activity going on, with seemingly little input from them or anyone else on the premises. This makes sense on it’s surface, because aside from the initial vetting of a campaign internally, people in the building have little to do with outreach marketing of the firm, unless by some chance they fit the target customer profile as well. We’re not marketing to staff, folks, we’re raising awareness among some very specific individuals outside of here, and their input is used heavily by our marketing pros to shape, craft and refine messages, offers, imagery, brand resonance, media choices and a host of other elements to make sure that those outreach efforts are as successful and cost p-effective as humanly possible. We work in a vacuum at our own peril, and avoid it like the plague as a result.

    Just because we create multi-page printed pieces, video and radio copy, social media posts and potentially entertaining memes and vines, doesn’t mean we’re all having “fun” in the marketing department, “making creative stuff up” all day.

    Myth 2 – “We have lots and lots of data points from our customers, we can use that in our marketing efforts, we don’t need customer insight research,” is the refrain we’ve heard.

    Not true. Customer insights are gleaned through a variety of methods, using all kinds of data. No single source is likely to yield enough information to form a truly overarching customer insight that will effectively cover the segment and guide creative and media elements accurately. Most customer data gathered today is transactionally-based data, either that they purchased something or attended something, (to become a customer), or relational data, (like logging into a website or social media outlet to view a product, referred or recommended our product to someone, or as part of a search). These are very tiny snapshots of singular incidents in the past, and we have no way of knowing what may have lead to or motivated those actions, or if they will ever take place again. Taken in aggregate, they can give you an inkling of preferences or trends, or show patterns with regard to seasonality, economic cycles, or changing needs, but they do not fully and accurately reflect any real human truth with regard to your product or company.

    In short, customer insights should be derived from an amalgam of different inputs, including former customers, potential prospects who fit the audience, staff, industry stakeholders and a host of others to provide a fully rounded, robust portrait of a single verifiable insight that can be extrapolated across the full sector, and applied to actionable efforts to drive emotional resonance and push to purchase. Short of that, true customer insight derived from a single set of data will likely be flawed and less than fully successful in driving marketing results forward.

    Gaining, analyzing and actualizing customer insights involves a specific process, involves a significant number of people, and still needs to have the resulting insight tested in the real world before being applied across the board in outreach marketing efforts. Anything less, and the insights you should be seeking are about your own marketing chops . . .

  • When To Give The Customer A Quick In-And-Out

    When To Give The Customer A Quick In-And-Out

    For those of you with less than pure thoughts, got ya! I don’t write on customer service issues very often, once or twice a year, and it usually has to do with how to treat them with respect, how to enhance their experience, or how to engage them more thoroughly and for longer. But sometimes, you just want to get in, get yer stuff and get out, and that’s not always a bad thing.

    The thought of speed in a transaction is a foundation in certain sectors of brick and mortar retail – groceries, convenience, gasoline, and the like for instance. They aren’t large footprint locations, don’t have much room for folks to be roaming around, and studies have shown that they often are in a hurry or have a set list of things they need, and that total receipt won’t change much due to them lingering. They make up for this by providing a lot of opportunities for impulse buying while they have you the most captive – at the cash register. Some of these locations are so ardent about this, that they have arranged the items packed so closely together you can hardly see the cashier for the racks of stuff! But you can still get in, pick up your choices off of easily selectable shelves and quick-grab racks, get in a line (if there even is one) and pay inside of a couple of minutes, seemingly regardless of the number of items.

    In that instance, that’s good customer service – you gave the customer exactly what they wanted – speed. Their expectations were met and you’ve given them exactly what they needed, a no-frills transactional approach to commerce without a lot of fuss or conversation. Some of this is possible due to technology – they have the fastest register software available and the simplest, most common-denominator pricing and indexing for inventory of anyone in the business of retail. But some of it has to do with design, layout, and most importantly, human behavior.

    The reason people shop at convenience stores is exactly that – convenience. They don’t go bargain hunting, they don’t argue over the $3 mini bag of Cheeze Curlz, they don’t bring coupons (there aren’t any), and they often aren’t terribly loyal when it comes to brand. They’ll pay a premium for the speed and won’t argue about it with the cashier, who says as little as possible during the transaction. They’re not folksy, they’re not chatty, they don’t know you most of the time, and don’t plan on seeing you again, ever. No need to form a relationship, just bag the chips and the soft drink and move on.

    That’s not to say that you feel rushed, or hurried, or that the service is brusk or rude, because its not. It’s just devoid of emotion, good, bad, or indifferent. They serve a function, do it well, and please the customer – job done. For the cashier, this is a relatively simple, boring to the point of inanity, potentially dangerous job, often on an odd shift, done for the short-term based on a dearth of marketable skills and a need for capital – it’s not a career position. For the customer, it’s a quick pit stop with a specific purpose, no browsing or emotion required, and if they happen to find something whimsical or amusing at the register, or something there reminds them of another item they need, so much the better for everyone – what the heck, it’s only two bucks, right?

    Other types of retailers can benefit from this approach as well, specifically online. Everyone’s focus in the early days of web commerce was to extend “dwell time” – how long are they lingering on the site, what are they looking at, what page and what item draws their attention, were key metrics. Consumers were still getting used to shopping online, and there had yet to be developed standards of usability or code norms for websites, so the customer had to not only learn how to find the items they were looking for, but how to work the website in order to get them, from the shopping presentation matrix to the sizing and customizing of the item, to calculating the shipping time and cost, to the payments page(s), it was a learning experience, not so much a shopping experience.

    More recently, shoppers have gotten vary familiar with all the bells and whistles of online commerce, web designers have figured out how to present non-static digital items for greatest effect, and how to lay out pages intuitively so that your eye and cursor travels to what you want almost effortlessly. It’s a strong advantage, and only recently have online shoppers been allowed the freedom to use their own data to speed the process along. For commerce sites you frequent, there is significant data from your prior transactions that allows both you and the retailer to benefit.

    I frequent a couple of gift sites for things I send to clients for the holidays, and after a few years, I can visit them, select, buy, address and ship about 20 items in less than 30 minutes – blazing speed compared to a trip to a crowded mall, let alone the gift wrapping, boxing, shipping, and distribution time and cost. All the addresses are already there, my selections from last year and prior are logged, and it reminds me if, in my shopping haze, I duplicate a previous gift – nice feature for us oldsters. The shipping is often either included or free based on frequency and volume, and I know the quality and presentation are top notch with out having to investigate further – a quick in and out transaction that by no means diminishes the thoughtfulness of sending a gift to a loyal client.

    Sometimes providing a great customer experience really means delivering on your brand promise, as long as it’s been accurately telegraphed ahead of time. I know the convenience store doesn’t have premium brands, I know their selection is rather limited to a certain type of merchandise, and I know that I’m not going to get a bargain, or be met at the door and asked if I’d like a sample of Chai latte while I shop, or that the cashier is going to gushingly ask if there’s “anything else she can do for me.” But I also know they’ll have what I need to get by, right now, and get me back out and on the road without having to do anything special, or even say a word. Sometimes, that’s a great experience!

  • Customer Engagement: Make Your Sponsorship Count

    Customer Engagement: Make Your Sponsorship Count

    There are many forms of sponsorship businesses can use to their advantage: from the check written to the local Little League baseball team to help offset the cost of uniforms (with your name on the back), to local sponsorship of a national charity event, to owning a major golf tournament or NASCAR race. Each has its own audience, it’s own impact, and it’s own way of engaging the audience. The trick with all of them is to create a positive, lasting and active emotional connection between your brand and the event.

     

    Brand activation for a sponsorship is one of the toughest marketing challenges most businesses face in their effort to raise awareness and drive recognition that can boost sales over time. The magic is in the matchup of the brand and the sponsored entity. The audience has to intuitively “get it” when they see the sponsor’s name in connection with the event, which means that there needs to be at least some rudimentary logic to the pairing of the two. There are some pairings that appear to be, well, natural in how they are executed, but I’m a firm believer in the tenet that there are no coincidences, and that most simple, natural occurrences are engineered by someone or something, although not necessarily for their own purposes. Auto racing promotions by oil companies, tire companies, engine builders and the like seem like natural extensions. Beer, cigarettes, soft drinks, and other consumer consumables, seem like a bigger stretch, until you consider that the audience for the race is the tightest demographic match to their product buyer possible, based on their own internal research. A huge chunk of race fans enjoy a Coke regularly, and in earlier times, the vast majority of race fans enjoyed a Winston or Marlboro on a very regular basis.

     

    Even those famous pairings required some time and effort to appear natural, and be linked in people’s minds permanently. Not only were there competitors in each category to wrench the spotlight from, but they had to find a way to activate the sponsorship so that all the dollars they spent paid off, by moving the product sales needle in some predictable way. Pennzoil, Valvoline, Quaker State, MobileONE, and a host of other petroleum brands vied for NASCAR sponsorships, but only one would eventually rise to the top of the recognition heap in that particular type of racing. The winning brand crafted a long-term series of ads, promotions and other outreach content that pinpointed and brought to light their involvement with high performance activities. You could put it in your Chevy, but you knew that it was developed for and was used in a race car, making your grocery-getter a little more like the race car you couldn’t have. Aspirational activation is a strong driver of success in sponsorships, and has been used to promote luxury brands and commodity consumables alike for many years with great success.

     

    Athletic endeavor has been fertile ground for this type of approach, because athletes have long been role models of persistence, hard work, grit and perseverance against the odds. Aspirational stories abound about athletes, and since they enjoy extensive media coverage, athletes and their stories are readily available to the public. If consumers aspire to be like the great athletes they watch and read about, then emulating them is a logical step toward making that aspiration a reality. If Tiger Woods wears a Tag Heuer watch, maybe if I buy one I’ll be a little more like him, run in the same company as he does. The athletes’ brand transfers to the product, and in some cases the reverse as well, creating that “natural” pairing. You’d expect the winner of a slew of majors in half that many years, with lifetime earnings in the multi-millions, to wear a pretty high-end watch. If Tiger had a Timex endorsement, it would have created a bit of a disconnect for the audience(s), and that natural feeling would not exist, diminishing the positive effect of both brands, diluting the aspiration, and reducing the effect on sales to the point of being nonexistent.

     

    On a smaller scale, middle market businesses can make sponsorships pay off quite well if they create or find a way to activate that sponsorship emotionally with the audience. The key is still to make it aspirational and activational. The aspiration can often come from the sponsor’s own position in the market. The largest commercial bank in the state sponsoring a business organization designed to build wealth and commercial connections makes perfect sense. Offering unique access or benefits to the members of that group makes it activated and effective. Market awareness, brand recognition don’t do all that much unless the target audience frequently finds itself in a quandary between two entities – the one with the higher recognition has been shown to win more frequently and more consistently, however irrational that choice may be for the consumer.

     

    Being in front of the right target audience for extended periods of time offers the recognition, but with no activation or aspiration, the sponsorship will be less than ideally effective. A male country music artist’s tour sponsored by Prius doesn’t have the same level of activation and almost no aspiration, when compared to Ford trucks. It’s a matter of cultural understanding, and matching the market leader to the aspirations of the audience. Country music fans clearly care about their environment as much as the next fan, but their concern takes a different form than saving gas or reducing pollution.

     

    Big brands should select their sponsorship opportunities carefully, to be sure that the target audience’s aspirations and activations align with their values and cultural norms. Done correctly, your sponsorship can be one of those “natural” pairings that lives in consumer’s minds for a lifetime.

  • Attendee Acquisition Is A Long-Term Investment That Pays Off

    Attendee Acquisition Is A Long-Term Investment That Pays Off

    With the recent rise in attention among marketers to customer engagement, and customer experience, customer journey, call it what you like, event marketing has risen on the marketing totem pole to a higher priority than ever. But with that new status comes a new sense of accountability as well – “If we’re going to host all these people and feed them, educate them, allow them into our world to meet us and each other, I want to see that the expense associated with that activity pays off . . .”

     

    Finding out what that expense is would be a logical first step, and then bench-marking that expense against what competitors are paying might be another. We’re marketers, after all, competitive and curious, and we test and measure everything!

     

    The finding out part is pretty simple. The 2016 Benchmark & Trends in Attendee Acquisition study was released by Lippman Connects, Exhibit Surveys, Inc. and Tradeshow Executive magazine as a joint study. That study shows that the average cost of attendee acquisition marketing is over $300,000 per event, and when you get more granular, the average show with flat or inflating growth spends roughly $32.66 for each attendee they attract. If you’re spending less than that, and your show is still growing year over year, then you have reached a level of marketing efficiency that bests roughly half the shows out there – congratulations. If you’re spending less than that, and your shows are declining, you have a decision to make: Invest more in your marketing efforts, across all channels, unless you have clear evidence of an inefficient or low-performing channel, or continue to contract until you level back out and your attendance flattens, and then re-examine the relevance of your event to the current audience.

     

    Now the value-tracking portion, which is a little tougher. Start with how many visitors you’re attracting for each paid exhibitor. This is a good number to know for marketing purposes, because exhibitors use this to calculate their expense of acquisition for new customers from your show, and use it as a benchmark when making the decision to exhibit in your show. According to the same study, shows studied had 22 attendees per exhibitor and scheduled the floor time for a total of 21 hours or more.

     

    But attendees don’t just sign up for the exhibitors. Some 50+% of show attendees are there as conference enrollees, and the show portion is just gravy. 42% indicated that they were interested in the exhibits. Smart show organizers recognize this, and are attempting to make this portion even larger by enlisting the help of the exhibitors themselves. Pre-show marketing by exhibitors is a staple of attendee attraction, and the more you encourage and enable your exhibitors to market their presence at your show, the more attendees you end up with, at no additional expense. That’s a win for everyone!

     

    One of the key challenges in event marketing is justifying that $32 per head acquisition cost, and more importantly, tying it back to a specific marketing activity. Given that most event marketers use a broad variety of channels to market events, including direct mail, traditional print advertising, where appropriate radio and TV advertising, social media promotions, outdoor, e-mail, and other channels, linking any single activity to an uptick or drop in attendance is difficult at best. Your post-show survey work should shed some light on what the most likely driving force behind registration might have been, but it’s really the integrated effort that drives the boat on this one – each channel supports the others to drive overall awareness and memorability for you events, and what you’re testing in your survey is simply the one channel that most closely came to triggering the registration process.

     

    If you do a lot of digital marketing, and have links sprinkles all over everything that drives traffic to your registration page or an online form, it is very likely that this will appear to be what is driving attendance – but is it? If you put up billboards surrounding the venue at a consumer show, and get a lot of walk-in traffic (non-pre-registered), is the billboard driving attendance, or is it just a reminder of the date? If you ask attendees point blank why they registered, chances are excellent the answer won’t be “I got an e-mail and filled out the registration form.” It will more likely take the form of “I saw that my colleagues were going and wanted to go with them,” or “we go every year to see the new technology, and to reconnect with colleagues in the industry.” Those results are harder to directly link to a single marketing activity, but go directly to awareness of your event, which is driven by all of your integrated efforts combined.

     

    Strong, consistent research can help pin down what efforts are working the hardest, and you can use the data to reallocate resources in your budget to take advantage of certain triggers, and drive incremental growth in the short term. But real, sustainable growth is a long-term commitment of time, effort, and resources to contain and drive momentum year over year, and requires constant testing and reinvestment to show results.

  • Can A Computer Know Your Customers Better Than You Do?

    Can A Computer Know Your Customers Better Than You Do?

    The rise of the machines, and the fear associated with it among humankind has increasingly crept into popular culture, in some subtle and not-so-subtle ways. Whether smart machinery or artificial intelligence (AI) is a good thing or a bad thing, especially as portrayed in film and fiction, often depends more upon the intent of the creator and the law of unforeseen consequences than the nature of the intelligence itself.

    On a daily basis, the average retailer gathers enough transactional and personal data to feed a growing intelligence network that could be smart enough to function on its own in less than a year of constant-cycle learning. That’s a tremendous amount of data! It takes humans 15 years to amass that level of cognition and ability, on average. Sometimes this “knowledge” is used for good, and because there are limits placed on its use, either by the technology itself or by the circumstances of its use, all is well. The nightmare starts when those strictures and parameters are eliminated, and the machine can “learn” from all sources continually and can act and react accordingly.

    The most widely used and easily recognized execution of this is the modern shopping algorithm. An algorithm is simply a comparative database that allows information to have tags attached to it, and when there are several tags in common between two items, one is deemed “related” to the other. This is a simple but very powerful idea. Humans are designed and hardwired to seek out patterns, both visually and in context, but computers are much better suited for this task as they have perfect recall, and aren’t influenced by loss of memory or emotion.

    Smart machines that use an algorithm can appear very “smart” to their human users. Amazon.com was one of the first, and most famous, users of a comparative algorithm, when applied to book titles on their bookseller website. Customers would make purchases, the computer would keep track of these purchases, and build a data profile from the tags attached to each item purchased. The tags would then be used to compare these purchases to other books also available on the site, and “recommendations” would be made by the algorithm, based on the number of tags in common. Pretty slick, and with the right verbiage attached to the recommendations, it looks almost like there is a human making the picks and the recommendations.

    TIVO television DVRs use this technology to make decisions about what TV programs you like and make recommendations and create recording timers accordingly. Not an infallible system, but it can be remarkably accurate, and it gets better the more decisions it makes and the more data it amasses. Now, extend that capability to association or non-profit membership groups, and as a marketer, think about your annual conference, seminar, or continuing education program. Where does that extension take you?

    Why not use an algorithm to help attendees pick conference sessions? Will it improve member engagement? Will it increase overall enrollment? Will it help balance out room set up and class sizes? Can it be used to build tracks or new program offerings in the future that are successful? My research tells me that this type of personalized approach would be well-received by the vast majority of individual association members in a wide variety of industries. The commercial marketplace has gotten them comfortable with the technology, and they understand that the ”Machine” isn’t making life-or-death decisions, merely suggestions based on history, commonality and goals already stated. Generally if it saves attendees time, allows them to navigate a wide spread of data quickly, make some choices effectively and the results are reasonable, I think most event attendees would welcome such a system with open arms.

    This type of innovation offers benefits for the organizer as well. Instantaneous feedback of popularity of each session based on purchases, the ability to add additional sessions in the same vein, or to cancel sessions that don’t attract an audience, means your conference department appears to have a solid handle on the needs of the members and can react to them quickly and effectively, with less waste. In short, the data embedded in the algorithm, and the resulting choices it returns, allows for smarter, faster, more efficient product and program development, with less risk, and greater reward.

    One or two membership groups have put the power of the algorithm to use with good result. I hope the industry as a whole embraces this use of technology to improve their educational offerings, and for those organizations with more of an a la carte benefit offering, that this same technology can be applied to member benefits as well, providing a highly personalized experience for each member, quickly easily and intelligently. I say, “Let The Machines Rise!”

  • Center On Customer Experience To Sell Out Events

    Center On Customer Experience To Sell Out Events

    We’ve long advised companies who want to be market leaders to adopt a customer-centric stance in their internal and marketing attitude. That advice has been well received, but often reluctantly implemented, due to the complexity and length of time involved in properly instituting a sea change in their organizations. While we admit, thoughtful and well-considered moves of this magnitude do not happen overnight, they can be implemented incrementally, and start showing results sooner than a cold start.

    The place to start is by working backwards. Think about your customer or client, at the moment they are just finished interacting with you – they’ve received their product, paid the invoice, shaken hands after the exit interview, whatever trigger ends an interaction cycle with your firm. Now, ponder for a second what happened, how was that customer feeling at that last few minutes of interaction? Were they thrilled to receive their product and can’t wait to use it, were they a little disappointed because it took longer than expected to arrive, or didn’t live up to the expectations you set for them, did they care at all, or did they just put it aside until a more convenient time?

    If you’re a service provider, what feeling or sentiment preceded that last handshake or interaction (not counting the invoice, we’ll get to that in a moment)? Was it buoyant that they got what they needed from you, were they excited about the next time they worked with you, relieved they had gotten a good outcome without getting scalped, happy to be out of your clutches? Behind that smile and that handshake is a wide range of emotions and feelings that those clients or customers will carry with them for quite a while, and the next contact they have with you, including any further marketing or follow-up efforts, will trigger a somewhat milder version of that emotion, guiding their next response to you.

    The place to start is by working backwards. Think about your customer or client, at the moment they are just finished interacting with you

    First impressions are critical, but last impressions are often lasting and difficult to change. Now that you have some idea of where to start in examining your customer experience, backtrack through your engagement with that customer in your mind, go through the steps that lead up to that final feeling. Work it over logistically, reverse-chronologically, and see if there are any snags, bumps in the road, places where communication status dipped, where the customer might have felt anything negative, like abandonment, uncertainty, fear of the unknown, or experienced something negatively unexpected. Those are your trouble spots, and in the journey of customer experience, those are the places where you can negatively affect your customer relationship and their likelihood to return to you the next time they need something you offer.

    First impressions are critical, but last impressions are often lasting and difficult to change.

    Even marketing can REALLY benefit from this process. Work through the attendee experience minute by minute. Review your program from the time the attendee hears about the event, what triggers them to register, what do they experience once they’ve registered, how often do they hear from you, what kinds of information do they receive from you, or what do they go searching for in your materials or online? How do they go about booking travel if any is required, do they look for a deal or the flight and hotel that most readily meets their limited schedule, or a combination of both? Do they stay in the host hotel to be “close to the action” or somewhere off-site to maintain privacy and corporate security?

    What do they encounter upon arrival? How did they get there? What do they see first? Are they run down endless hallways before they encounter anyone officially connected with the event, or are they greeted by someone clearly in-the-know that they can ask questions of right away? Is there a place to “unburden” themselves, divesting their arms of coats, bags, luggage, umbrellas, etc, before they get a badge? Is everything conveniently located, and labeled in large, unambiguous letters with pictograms for international attendees?

    Admittedly, some of these areas may be beyond your control – you can’t guarantee a positive experience from the airlines, or that the hotel concierge will treat them politely, or that their favorite shampoo will be in the hotel bathroom . . .

    Work through the whole meeting, trying to empathize with the attendee from the time they see your first e-mail announcement until the time they get back to their place of origin, and include your post event survey if that goes out beyond the 24-hour post event mark. Now you have a basis for evaluating your customer experience from an attendee-centric point of view. Using that as a baseline, try and separate the logistical, intellectual experience from the emotional one. Tease out those feelings as the flow from one to another and try to envision an overall emotional response to the event, and connect the emotional changes to each major logistical challenge they face. You now have a roadmap to isolating the negative emotional contexts in your meeting and either mitigating them or eliminating them, to provide your attendee a positive customer experience end to end.

    Now that you’ve done the ground work, how do you use that knowledge in your marketing efforts to attract more attendees the next time? Pull out the outreach materials you used to promote and raise awareness of that meeting, the elements that drove attendance. Do they highlight all the customer experiences and benefits you experienced mentally? Do they convey the emotional punch, the triggers to emotions you felt when you entered the meeting? Do they walk the attendee through what they will experience, show the benefits of those experiences, make it easy, painless and simple for them to experience them? Do they set accurate expectations for the attendee that you can always live up to in real life? If the answer to any of these is “no,” then those are the areas that need some work in your programming, planning and marketing efforts, to align the real experience with the “paper” version your espousing in your marketing efforts.

    Admittedly, some of these areas may be beyond your control – you can’t guarantee a positive experience from the airlines, or that the hotel concierge will treat them politely, or that their favorite shampoo will be in the hotel bathroom – but once they enter your meeting venue, they are your responsibility, and taking that seriously can mean the difference between a one-time attendee and a lifetime cheerleader for your events. Pay special attention to the way they feel when they leave. Did they learn something valuable, did they meet someone important to their professional growth, did they learn something about a new subject or a different culture? What feeling are you leaving them with, what will they remember when they complete that online “satisfaction” survey? Hopefully the emotion won’t just be satisfaction, but something stronger and more positive – the one you planned to leave.