Tag: engagement

  • 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.

  • Engagement Is Good, Revenue Is Better

    Engagement Is Good, Revenue Is Better

    There is a lot of buzz among marketers about fostering customer engagement, building engagement with apps and websites, creating communities with blogs and social selling. It all sounds great on paper, we should all work together, share your purchases socially, everybody knows everything you do, everyone’s on your side, we’re all a village, cumbaya . . . But when you’re standing in the aisle at Wal-Mart deciding what frozen dinner brand or dog food to buy, I don’t feel that my level of engagement with Purina’s website is the deciding factor. Marketing is about raising awareness in a positive way to influence and drive SALES. I can be as engaged as can be with a brand, but if a similar product is in front of me, and they are largely the same, engagement doesn’t trump quality, availability and price, and the sale will go to the one who fits those three criteria the closest. Even with B2B sales, I’ve been “engaged” with a number of websites and businesses prospecting my business via e-mail and other devices, but haven’t actually bought anything from any of them – I’d score really high on their “engagement scale” algorithm, but they haven’t made a dime off of me, and may never do so.

     

    Brand engagement is a long-term play. It needs to be tied to other awareness vehicles, timed promotions, backup media, and ongoing evolution of product benefit awareness in order to really be effective at driving sales. This is not a new idea, but it’s one which has risen to prominence recently along with the ubiquity of social media platforms, which provide the ability for person-to-person communication in a way heretofore not possible on the current scale. I can now tell thousands of people what I’m doing, what I’m interested in, what I’m buying, what I’m eating, cooking, enjoying, drinking, and more on a moment’s notice in real time. That means that if I’m sharing it with others, it’s boosting their awareness as well as my own for a particular product, service or item. That kind of organic, exponential awareness spread at that speed was unheard of just 15 years ago. Epidemiologists are familiar with the concept, but marketers only recently began to apply it to their efforts – indeed the term “going viral” is borrowed from the disease spread specialists, as information, or awareness, can spread a lightning speed unseen from the outside, like a virus.

     

    Just because I’m aware of a product or service that I’ve engaged with it on the Internet, does not mean that when the time comes I’m actually going to make a purchase. It may increase the odds some, but as we learned with the recent Powerball drawing, odds need to be changed significantly with a supreme effort in order to really affect the outcome. Social media engagement or website engagement is like buying 100 lottery tickets instead of one. It seems like you’ve boosted your chances of winning by 100 fold, but in reality, those other 99 tickets didn’t even move the needle.

     

    By all means, do A/B testing, make adjustments, formulate campaigns that include a mechanism for increasing engagement, but depending upon it to drive significant revenue could be a mistake. The basics of building ongoing awareness through media your audience utilizes, timing your efforts to coincide with that target’s needs or life-stage position, matching your demographics and psychographics and messaging to that of the prospective customer, are still the linchpins of successful marketing efforts, and enhancements and refinements to these, along with some boosts in awareness through effective promotion of specialty offers, benefit driven messaging, and creative imagery, will drive revenue upward on a consistent basis as the brand evolves and the audience grows. If you’ve got all those bases covered effectively, engagement is a nice to have, the icing on the cake, and a good set up for the upsell and cross sell to that customer base, due to the added time allowed for an opportunity to develop.

     

    Unless I miss my guess, the folks dwelling on engagement (which is notoriously hard to measure with any accuracy) don’t have all the basics in place and need a buzz word and a crutch to help them explain why things on the sales side aren’t moving as far or as fast as expected.

     

    Dwell on the basics of marketing, make sure all the right pieces are in place and working together efficiently, and keeping the pipeline full, then worry about engagement.

  • Ten Ways To Make Sponsorship Build Credibility, Visibility For Your Brand

    Ten Ways To Make Sponsorship Build Credibility, Visibility For Your Brand

    Every business out there has probably been approached about a sponsorship, or included sponsorship in their marketing mix in one form or another, especially those with a consumer sales focus. But how do you make the selection of which one’s might be the most effective long-term?

    Careful selection of the events, products, and people you sponsor will allow you to activate that sponsorship to benefit fully from your association. In order to make a beneficial selection, you have to know your brand inside and out, and have a good handle on some of the more “outlying” characteristics that consumers have pinned to it – not just the ones you’re broadcasting about it. Some of those alternative characteristics can make for very solid sponsorships if you pick them carefully and engage fully with all the opportunities they offer.

    Many businesses don’t engage fully with the opportunities they do select, and get less-than-optimal returns as a result. This is one situation where you really do get out what you put in. Don’t stop at the logo on the sign, that’s just the beginning. Here’s ten ways to maximize the return on a sponsorship opportunity, planned or impromptu:

    For Event Sponsorships:

    10) Make sure to provide adequate materials to the event hosts so that all participants receive something from you at the event. Don’t short the count on the collateral, the promotional items or the literature, because that one person who gets left out will carry that impression longer and to more people than all the rest combined.

    9) Be sure your brand is represented adequately, accurately and repeatedly. You’ve purchased a certain level of exposure, and most event organizers will bend over backward to help you get it, but if you don’t speak up and remind them, you may not get everything you were promised. Check everything to be sure the brand is represented in the best possible light, and that it’s reproduced at an adequate size, color fidelity and resolution to do you some good – after all, you paid for it.

    8) Even if you don’t have something already created, make sure you take advantage of every portion of the sponsorship package. Most sponsorships are multi-faceted, and usually multi-media. If you don’t have elements in use already for each medium, be it flash video, print collateral, sales sheets, logo files in every possible format, bios, soundbites, banner ads, animated gifs, promotional blurbs and items, signage, banners, and other typical elements to take advantage of the whole package of opportunities, create whatever it is you’re missing. You might be the only one of the sponsors who does, in which case, guess who’s going to be the most memorable?

    7) Make sure the audience matches your efforts. Most brands have a broad range of demographic, psycho-graphic and geographic audiences it serves. Be sure the sponsorship you pick reaches at least a viable, sizable niche slice of your total target market. If not, it doesn’t make sense to participate.

    6) Make your selection based on LIFETIME CUSTOMER VALUE, and not just acquisition cost. It may cost you $25 to reach, influence and close a new customer to buy your product once. But if the event sponsorship is a valid one, you not only close one sale, but in most cases (if you’re doing your retention efforts correctly), you’ve gained a long-term customer who will enact or refer multiple sales over the next few years. Once you factor that in, the numbers on ROI work much better.

    5) Do your part of participate in the success of the event. Your name and your brand is now attached to this event. Do you part to promote it, get some mileage of your own out of your participation, fill the stands and pack the seats – it‘s to your benefit, it drives that many more people to view your participation, and bring you more customers.

    4) If the package doesn’t fit, ask for what you want. Most event organizers want the sponsorship to benefit you, so that you’ll repeat or extend your participation and become an evangelist for their event. They want to make you happy, and will negotiate in good faith if you have an alternative proposal to present. If you don’t ask, they won’t likely offer what you want. The tough part is accepting and using the valuations attached to each element. Most often it pays to just make the best overall deal you can, and work it to the fullest.

    3) Pick events that make interaction logical. A mountain bike company sponsoring a swimming event doesn’t make a lot of sense, but that same company sponsoring an off-road bike race makes perfect sense. That’s not to say that you can’t sponsor an event outside your industry, you just have to be selective so that the audience can easily make the connection between your brand and the activity they‘re engaged in at the moment.

    2) Make the sponsorship an integral part of your strategy, even if it isn’t. Plan your sponsorships to work with your product’s sales curve, either to boost the top or fill in the troughs, seasonally or geographically. If you’re expanding your service or delivery area, work events on the fringes of your current area to make the expansion more organic. If you sell primarily in the summer, work the earlier and earlier events, or later into the fall to extend your season and broaden your exposure.

    l) Don’t select more sponsorships or pick more events than you can fully support. The up-front cost is just the tip of the iceberg, and once you add manpower hours, staff training, brand monitoring time, collateral and participation costs, and follow-up and activation costs, it’s easy to get overextended, and not give a full effort to anything, a recipe for failure. Make an honest commitment to the right mix of events and participate fully for the greatest benefit.

    Making smart selections when choosing a sponsorship is a combination of art and science, and the basis is really knowing your market, knowing your brand intimately, and using some common sense with an audience perspective. Sponsorship can be a strong part of your marketing mix, if you make the right choices and work them to the fullest.

    If you found these tips helpful and would like to read more, pick up your copy of “The Marketing Doctor’s Survival Notes”

     

  • Engagement Turns Your Members Into Cheerleaders

    Engagement Turns Your Members Into Cheerleaders

    Under the traditional membership model employed by the majority of non-profit trade and professional groups, membership in the organization offers you benefits, but doesn’t necessarily deliver them directly to the member. That doesn’t refer to third party affinity programs or insurance underwriters – it refers to the fact that the interaction with the organization is typically voluntary and one-sided. The member has to reach out to take advantage of the particular benefit directly, the organization typically doesn’t drive the benefit to the member. As a result, what often happens is that many of the potential benefits of membership are either unknown, or unused, and as a result, there is not sufficient member engagement to really live up to the value proposition that the initial membership offer proposed.

    Studies have shown that if a member is actively engaged in the activities of the organization, either through staff or another member, their chances of lasting longer than the initial year as a member skyrocket, rising by over 400%. Given the lifetime value of a member to the organization, it would seem a smart investment to craft an engagement program to reach out and grab those new members, get them involved, give them a sense of mission, of empowerment, and of belonging, that will help retain them for years to come.

    Those organizations who do put in the time and effort find they reap fairly substantial rewards at renewal time. Renewal rates above 94% are not uncommon in those organizations we’ve studied, and the members not only rejoin, they go out and recruit as well. That’s a double win for any organization, in an era where time starvation and economic uncertainty make membership a low priority for most professionals. And it doesn’t have to be complicated or automated to show strong returns.

    Sometimes a simple welcome phone call, from a prominent member, Board member, or staffer, to introduce themselves, welcome the new member to the organization, ask some questions, including what they expect to get out of their membership. Not only does that keep staff in touch with members on a programmatic basis, but provides a constant source of research data on the value of offered benefits, and their popularity among the membership, in real time. Not a bad bonus for making a few calls a week.

    Sometimes the effort can be more formal, such as an invitation to join a committee, or to provide feedback on a new product or service prior to it’s introduction to the general membership. Sometimes it’s a request for support for a cause, lobbying effort or legislative initiative. The key is to do it early, and in a systematic way so that no one falls between the cracks. More elaborate efforts will incorporate timing features, automated systems to reach out to certain sectors on a rotating basis with a specific focus, and other bells and whistles, but those automated systems tend to dilute the impact of the effort, to depersonalize it and distance the group from the new member, the exact opposite effect of what you were seeking. The simplest and most effective is the most honest and direct method, a personal phone call or letter from an known member of prominence, welcoming them to the organization, asking what they need or expect, and helping them take direct advantage of the benefits the group offers.

    Engagement can take many forms, and the right form is different for each individual, as different as their real reason for joining. Once such a program is in place in your organization, you’ll be amazed at the increase in retention, engagement, and connectivity of your members. They wanted to be a part of a group for a good, real, reason. Tap into that need, and you’ll have a group of lifetime members who closely affiliate and identify with your mission – they become cheerleaders, and that’s where the gold is!

  • Win With A Member-Focused Value Proposition

    Win With A Member-Focused Value Proposition

    Readers – Melynn and Carol have really laid it out for us so well I felt no need to add anything beyond “kudos” – we’ve been telling our association clients to research their members’ needs and desires to drive creation of effective benefits, and generate a reasonable value proposition for acquisition and retention for years – clearly these two marketers “get it” –  let me know what you think.

    By: Melynn Sight and Carol Weinrich Helse

    Summary: Develop a strategy based on your members’ wants and needs, and your association will deliver the most relevant suite of products and services to them, leading to higher membership numbers and greater engagement.

    While most association board members think they know what association members want, there tends to be an unintentional disconnect between what the board members believe they know and what association members actually want. Volunteer leaders and executives tend to focus on membership benefits, not the value proposition. In doing so, the association loses an important opportunity to articulate what is really important to members and what will ensure that those dues checks keep coming.

    Thinking about value from the outside in—starting with what members worry most about—will help leaders begin to think, plan for, talk about, deliver, and promote the most relevant portfolio of services.

    What is a Value Proposition?

    10 Steps to Develop and Launch a Value Proposition
    1. Gain approval. When leadership considers this a strategic initiative, it will fuel the process from development through implementation.2. Determine if you’ll do the project yourself or if you’ll hire a third party.3. Do your research. Assemble a diverse task force of members to help plan with “the voice of the member” in mind.

    4. Identify up to three important member audiences.

    5. Determine the biggest concerns and needs of these three member audiences.

    6. Create a draft of your value proposition based on how your association currently answers the biggest needs of these three segments.

    7. Present drafts (or recommendations) to your board for approval. Finalize the value proposition and proof points that support it.

    8. Develop a communications and launch plan for your value proposition. Use the value proposition in association marketing materials, on the website, and in your CEO’s talking points. In other words, make it visible.

    9. Execute on your value proposition. Consider how to incorporate the value proposition into strategic planning, committee work, and staff operations.

    10. Survey and ask members for feedback to determine if you are making progress. Report measurements back to the board along the way.

    A value proposition offers members a clear, sound rationale for joining, belonging, contributing, and taking advantage of what your association offers them—starting with what they think is valuable. It differentiates why a member chooses to belong to your organization, a competing organization, or none at all.

    Developing a value proposition is a multi-step process that will aide in organizational planning and membership growth and loyalty. The outcome is a clear, direct claim that is relevant to your important audiences and represents what your association does well today. The written proposition is a statement that helps tell your story of relevance in a concise messaging platform that becomes the basis for all your association’s communications.

    What’s Your Problem?

    Early in the process, be clear about the reason why you need a value proposition in the first place. Some associations say they need one to unify their staff; others know how much they offer members but need a clear, simple way to articulate it. With the specific motivation for your work, you can keep your focus on the goal throughout the process.

    Leaders are increasingly seeing value propositions as the most meaningful step toward building and sustaining association membership. A well-researched and crafted proposition guides strategic planning, staff communications, and gives a purposeful approach to committee work.

    Recognizing your members’ needs first and then purposefully feeding those needs into your association’s strategic work can be a radical shift in thinking. This change in perspective can help organizations rethink how they plan, organize, and set goals.

    Invest in the Process

    A value-proposition project is not a simple one. Ideally it includes a task force composed of a diverse group of members who will devote a significant amount of time to the process. Task force members must clearly understand their role as well as the definition of a value proposition. The association’s executive director should be involved in facilitating board awareness before, during, and after the project.

    The most relevant value proposition projects begin with a member survey to uncover issues members worry most about, what members value, and how satisfied they are about the areas that are most important to them. Satisfaction with the wrong offerings is an unproductive way to run an association.

    The value proposition process requires investment. Whether you do it yourself or outsource it, you must invest manpower, energy, and money to develop the proposition and collateral to communicate it. Then it takes energy and focus to communicate and sustain your claims if you want to affect change.

    A Change in View

    A clear, concise value proposition will change the way your association approaches its business. A credible value proposition forces you to evaluate your services and communications with members with a benchmark that is set by them. It also pushes you to make internal decisions from the members’ point of view. This is a significant shift for many organizations and one that can create some meaningful dialog about current and new services. Are the services and activities that you offer today clearly ones that mean the most to your members? This can create conflict with programs that are sacred cows. Embrace the new view and overcome the conflict, and your value proposition will lead to stronger programs, more effective committee outcomes, and higher member satisfaction.

    Now is the time to begin this process so that you’ll have more members writing next year’s membership checks.

  • Association Member Engagement Mountain

    Association Member Engagement Mountain

    Written by Dan Varroney

     Dan at Potomac Consulting has hit this right on the head, we fully believe and recommend to clients that the engagement puzzle be solved so that true growth can be achieved that is sustainable and manageable, not just a quick promotional bump in the numbers. This shows why . . .

    It’s important that in this day and age that Associations not “leave well enough alone.” The Stay or Go Imperative could impact an Association’s financial health and well being. If membership is a distraction instead of ROI, Corporations vote with their feet and instead invest in a different solution.

    Yes,  Corporations have smaller corporate staff, in some instances one executive may wear multiple hats. However, if this executive makes the dues decision, then a strategy or a change is  necessary.

    Read the Tea Leaves

    Companies look for the connection to business objectives as part of their membership evaluation process. If these connections don’t exist, it’s difficult for any Association to execute an effective strategy to engage members. Metrics are like tea leaves they both paint a picture and they tell a story.

    If Associations observe that conference attendance is equal or less to prior years, educational meetings and fly-in attendance is significantly lower, and member retention is down for three consecutive years,  it is time for an intervention. The marketplace could also signal one or more of the following: 

    • Negative view of the culture and overall effectiveness of an Association.
    • The Association is perceived as not being as impactful in educational, policy or advocacy programs.
    • Other solutions including coalitions, conference providers or other Association programs deliver greater value.

    Never Hit The Panic Button

    Associations should embrace the challenge and convert the situation into a strategic opportunity. When diagnosing, member participation and revenue fall-off rebuild the path to engagement: one company at a time, obtain clarity on business and policy objectives, and understand what members really must achieve from participation achieve.

    CEO’s can keep in mind that success and failure are never final, the road forward offers hope, and a more definitive path to member engagement.

    Develop Data Driven Strategies

    Associations need to build a data set to help them understand why participation and revenues have fallen.  However, it’s key to put heavier weight on relationships; in a complex world the human connection matters. One member at a time, collect the following information:

    • Is the Association perceived as staff or member driven?
    • Does participation help executives achieve company business objectives?
    • Why do executives participate in other Associations or Coalitions?
    • How important is networking?
    • Would Social Media engagement on platforms such as LinkedIn reflect an attractive alternative?
    • Are educational and or certification programs relevant to career advancement?

    While Associations may develop additional or different questions, these open the door to constructive dialogue with disengaged members. Tally the responses, create internal task forces of senior managers and key staff, develop solutions and new strategies, assign performance metrics and then execute.

    Association Member Engagement Mountain

    For Association CEO’s who have or who are looking into the abyss, there is light at the end of the tunnel. An Association Executive confronting the worst dues loss in decades once reported record gains in member participation, advocacy effectiveness and revenue growth. Stepping back, building an Association wide member focus with data driven strategies proved to be a year long process worthy of the effort.

    Yes, the participation, retention and growth outcomes were record highs but the data really reflected stronger member connectivity.

    Climbing the Member Engagement Mountain is vital and necessary for every Association. It can also be the determining strategy helping Associations achieve revenue growth.

    How does your Association drive Member Engagement?

  • How Marketers Can Use Customer Advisory Boards to Engage Customers, Engender Brand Loyalty, and Much More

    How Marketers Can Use Customer Advisory Boards to Engage Customers, Engender Brand Loyalty, and Much More

    Guest Blogger Rob Jensen provides some great insights about how you can get reliable customer insights to improve your engagement and profitability.

    Marketers are giving a lot of attention of late to the topic of customer experience. Indeed, ensuring that companies optimize interactions with their top clients, obtain the highest level of value and maximize ROI from their precious customers seems to be a universal desire the significance of which is of little debate. The more challenging aspect of achieving these outcomes seems to be HOW marketers are supposed to do so. It is our experience that customer advisory boards (CABs) are the most effective and impactful way to engage with key customer executives and achieving these desired results.

    For those who are unaware, customer advisory boards (also known as a customer advisory councils) are forums to review industry trends, address mutual challenges or opportunities, and offer unvarnished insights and guidance. For vendors, these councils are ideal for validating corporate strategies, gathering input on product development, and deepening relationships with key customers. In turn, there is just as much to be gained by the participating customers.
    Indeed, while engaging customers, gathering their feedback and input to your strategic plans and product roadmap helps engender brand loyalty, the benefits of CABs go much deeper than that. Here then are the top 5 benefits your company can get from a well-run customer advisory board program.

    1. Insight into Business Strategy: Your customers—the consumers of your products or services – are the best (and surprisingly most often overlooked) resource to provide input to your company’s overall direction and business strategies. Such customers should be able to advise you on the products and services they desire, what they would pay for them and how they want them delivered. After all, everything you do is designed to appeal to their needs, so there really is no one more qualified to counsel you on how to best target, approach and serve your client base. Your council can provide invaluable direction regarding which markets to pursue, how to capitalize on market trends, what customer pain points to address, which companies to partner with or acquire, how to best exploit competitors’ weak points, and how to position your company for optimal advantage.

    2. Feedback to the Product Roadmap: A customer advisory board is ideal for providing feedback and desired direction on the host company’s offerings. Your advisory council can offer an insider’s view of what your target buyer needs and wants from your products and/or services. A council also serves as a great platform for securing beta testers of your new offerings, helping you introduce your solutions and providing immediate validation before you go to market.

    3. Increased Revenue: The often unspoken (yet highly desired) benefit from your council is the positive impact you will see in incremental sales revenue. Your members’ organizations will likely increase their overall spend with your business over time. This is due in large part to the fact that they are privy to your growth strategy, are early testers of your solutions and feel closer and more faithful and dedicated to you and your offerings. In fact, Ignite’s experience shows that B2B companies that have active and successful customer advisory boards enjoy a 9% increase in new business among advisory members starting after year one of advisory programs above non-advisory council customers.

    4. Customer Approval and Brand Champions: An additional benefit to running an advisory council is that you are building a close-knit group of company advisors and brand champions. By bringing members into your company’s “inner circle” as trusted advisors, you are also transforming them into even bigger raving fans of your company. In our experience, this almost always happens with council members. As they take on the responsibility of helping to guide your business, they inherently become professionally and emotionally invested in your success, and their enthusiasm and passion tends to permeate their immediate team and sometimes beyond. The result is a group of highly loyal customers who have a vested interest in your success – and not defecting to your competition. Furthermore, your members will likely refer other prospects to you as they talk about you with peers at conferences, events, and throughout their day-to-day operations.

    5. Marketing Campaigns and Messaging: Another often less-recognized area of value a client advisory council delivers is feedback to how your company markets itself. You will gain the rich insight necessary to understand how to position (or re-position) the company against the competition. Your advisory board will advise you as to what makes your business unique and what differentiators you should highlight. Just as important, the council can guide you on which mediums are the most viable in terms of reaching your desired audience. Members can also serve as wonderful client references for testimonials and case studies. Likewise they may also be willing to develop and publish joint articles or white papers with you. This lends industry validation and credibility to your advisory board program, your own organization, and serves as a means of promoting the member and bolstering his/her own company and career.

    While engaging with customers and engendering brand loyalty may be all the rage with marketers these days, in our experience, customer advisory boards are the best method to deliver this – and much more. A well-run customer advisory council will undoubtedly provide your organization with significant input that will put your company on a better, more targeted and profitable course for years to come.

    Rob Jensen is VP of Marketing for Ignite Advisory Group (www.igniteag.com), a consultancy that helps B2B companies manage their customer and partner advisory board programs.  http://www.igniteag.com

     

    If you found this valuable or enlightening, don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes”

     

  • Get Top Results When You Crank Up the “Direct” in Your Direct Mail

    Get Top Results When You Crank Up the “Direct” in Your Direct Mail

    By its very nature, direct mail promotions are designed to be one-to-one communication vehicles. As marketers, we are all aware of this in the back of our minds, but in practice, sometimes the “direct” portion drops off the map, and we end up producing unplaced promotional brand ads in an envelope. If you want o see the best returns possible from your direct mail program, make sure the “Direct” angle gets full attention.

    There are several ways to rev up the “you” in your programs. The most effective one starts with the concept of the mailing itself. As you envision the final mailing, conceptualize your offer, the list, the copy platform, the thematic graphics and other elements, get a good fix on your target audience for this particular mailing.

    The “It” Person

    Now take this to the next level, and picture in your mind a specific individual who fits the descriptors and parameters of your typical customer in your target market. Ask some key questions about your mailing with regard to this person: 1) Would this mailing appeal to this person? 2) Is the offer suitable for them and their needs? 3) Would this copy and these graphics attract their attention and resonate with them in an emotional way? 4) Is there enough reason for them to respond, to pay, to write a check and send it in?

    If the answer to any of those questions is no for that mythical person in your head, then adjust, correct, edit and revamp until the answer is yes to all of them.

    Copy is King

    Many of these personal elements start with the copy. Often, the offer is what it is, and either can only be changed minimally to match the audience or is inviolate based on the time and resources available. If you’re in that box, then the solution is to start with the copy.

    The word “You” is extremely powerful – indeed, you can’t write a true direct mail piece without it. If your copy speaks directly to that person in your mind, you are by fiat having that one-to-one conversation, and must use “You” to address that person directly, in first person voice. In today’s highly digital climate, the use of a person’s name in the copy is almost passé, but you would be surprised how little it actually gets used, aside from personalized laser letters. For postcards, fixed multi-page packages, and other formats, digital technology allows for the use of the recipient’s name and other information in repeated appropriate fashion, to juice up your message and really push the audience’s emotional buttons. This will drive your point home almost as powerfully as the word FREE in the offer, and will draw in the reader and involve them in your description and your message.

    Good copy for direct mail should tell a story. Listing benefits, describing features has its place, but the meat of the piece is a message directly specifically at the reader like there is no one else around, and it’s just the two of you having a short conversation. The story should be illustrative, persuasive, cohesive, and have a point. No matter how long it is, (and there are endless debates about copy length – see Hershel Gordon Lewis for details on both sides) you should make a point, explain why your point is the best, make your point again, and get out after asking for the order.

    Let the Data Be Your Guide

    To be able to write persuasive, effective copy, to concoct an effective working offer, you have to really know the audience. You can get to know the audience, but to do that, some research is in order. Carefully select your list to be as homogeneous as possible, to select as many similarities as you can to define the audience as finely as you can. That list if selects is the basis for your research. In order to get to know those people (and a market never bought anything, people buy products), you have to have an actual conversation with a few of them, to pick up the subtleties, the similarities and the things that really push their buttons emotionally that get them going, that get them excited.

    To help visualize the audience better, pretend to have a conversation with someone representative of the target group, and ask yourself these questions:

    1) How does this person speak, what word choices do they make?

    2) How do they synthesize the information you are presenting? Do they parrot it back to you verbatim, or do they absorb, summarize and paraphrase your concepts?

    3) Do they pick up and use any jargon you use related to the product?

    4) Does the product seem to be something they need, or just want?

    5) Do they seem to understand the product you are offering or are they just being polite?

    These ideas should give you plenty of ammunition with which to shoot down your current work and start from scratch, to really personalize your direct mail and make them truly “Direct” to the audience. Apply these techniques to your last project, recreate it with the new approach, and A/B test it against your control – you will be surprised at the results.

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  • Engaging Customers – Modern Thought on Reaching the Current Consumer

    Engaging Customers – Modern Thought on Reaching the Current Consumer

    Recent economic indicators describe a consumer climate that is different than virtually any in recent history, and consumer product and service businesses are having a tough time closing sales and encouraging sales traffic, both brick-and-mortar and online. This enforced stinginess on the part of consumers is wide-spread but not universal. Some products fly off the shelves and some companies are wildly profitable, while the majority seem to be pushing a rock uphill.

    Consumers are caught in a vicious cycle economically, have been since 2008. Profit is down on a per unit basis, write-downs and charge offs notwithstanding. Employment is down from knee-jerk reactive cost-cutting measures trying to stem the tide of red ink, the unemployed numbering in the many hundreds of thousands, and the underemployed doubling that. Equities in general have been stumbling along the bottom of the trough for the last two years, with a 3% growth number putting them back at break-even since before the crash. Spending is down, savings are flat, foreclosures are restarting their relentless march, debt is way too high, both consumer and governmental, and consumers are cautiously nervous.

    For retailers, this is the perfect storm of nightmares. Consumers are too scared to make those bigger purchases due to income uncertainty. Retailers won’t or can’t hire due to low margin, and can’t add jobs, reducing the unemployment numbers. Investors get lousy returns, and therefore can’t invest in riskier companies, so they can’t expand and add jobs. Consumers who have jobs are unsure they will keep them, but are doing the work of three and trying to keep their own head above water, cutting back on discretionary purchases. So, as a marketer, how do you break through the fear and engage consumers? In a word, “Trust”.

    If you scan the list of most profitable or growing consumer product corporations*1, you’ll notice that they don’t have a common theme in terms of product offering, or price point or position in the marketplace, although they all tend to be number 1-4 in their category. The common thread among them won’t likely jump out at you from the list itself, but if you dig a little deeper, the theme becomes clear. These growing, smart, stable companies have been conservative in their growth plans, aggressive in defense and development of their brand, and firm believers in keeping their brand promise, leading to outstanding customer loyalty. They make products that people want and need no matter what their economic circumstances, and maintain loyalty through consistent quality assurance, product development speed and flexibility. In short, they give their customers what they want, and have done so long enough and consistently enough to have garnered long-term customer loyalty, and more importantly, trust.

    1 List compiled by Seeking Alpha, copyright 2010

    As marketers, we can’t often affect many of the attributes listed above that these firms have in common, but the few that we can, need to be the very best expression of the brand promise to establish that trust. We can’t affect QA directly, for instance, but we can certainly pitch the promotions to the correct consumer level and keep public perception on the right aspects of the product if QA is spotty or suspect. Product development is sometimes seen as Indian territory for the marketing department, but in these high-profit companies, our studies show that marketers are deeply involved in not only accumulating consumer data to feed product development, but provide assistance and expertise on consumer preferences, brand extension and alignment, and even assessing product features and elements, to be sure they meet consumer preference and demand. Perhaps this characteristic above all others may be the critical element in the continuing romance between these companies and their customers. In almost every case, companies that get the marketing staff involved early in the development process and have a defined process for creating, developing and launching new products are more nimble, responsive and profitable than those who simply launch and market products after the fact.

    That’s great for companies that create a range of new products regularly or update their flagship product routinely. But what about some of those firms who have been riding the same product year after year? How do they engage their customers and engender such loyalty to the brand?

    Many established and older brands that have let research and development languish, either through lack of resources or short-sighted thinking, find that they need to create or establish a new angle, a new application, a new extension of the existing product to create interest from new customers and renew interest from existing customers. Clorox might be an example of this, especially 10-15 years ago. Household bleach is a staple, has few innovations or moving parts, and aside from updating the package, and not much of that, it is basically unchanged since the 50s. Recently, they have innovated within the category, created new applications for the product and formed partnerships with other products to bundle or reinforce their products. Adding their product to other cleaning products gets the brand into households that might not welcome them otherwise, and sets or reinforces the expectation that bleach is an enhancer of cleanliness. Making the product “portable” in the form of a stain removing stick was a recent innovation that was launched in response to consumers’ increased mobility and need for instant gratification. Yet despite it’s age, Clorox continues to move off the shelves in predictable and growing fashion and avoid becoming a commodity, despite strong shots from competitors, generic versions manufactured overseas, and reduced profitability from price increases on raw materials and distribution challenges. A marketing team that can come up with a new angle for a 50+ year old product is a strong, flexible one indeed. What has kept them going is strong customer loyalty, and trust in the quality and integrity of the product to perform as advertised day in and day out over many years.

    But engaging customers doesn’t always mean product innovation, or even marketing innovation. Sometimes it has more to do with taking the appropriate approach based on customer’s expectations.

    HD

    One of the companies on this list, Harley Davidson, is a champion at delivering it’s message in the most appropriate medium for it’s audience’s digestion. But that hasn’t kept them from being innovative in order to engage the customer. Over a century old, Harley’s target customer is also getting older, and that demographic is populated by notoriously slow adopters of new technology. Harley does much of it’s marketing through the dealer channel and through event and sponsorship presence.

    They host rallies, rides, and other gatherings of product users through an extensive network of dealers and repair facilities coast-to-coast, and know their customer well. They have a huge array of licensed products and aggressively protect their brand in each of these arrangements, selecting only the highest quality materials, workmanship and designs to put their name on. This is one of the most traditional marketing models out there, and it still works very well. You would not expect them to have a huge online presence or use internet resources extensively to reach a 50+ age audience. Yet they have taken advantage of the social media phenomenon to help spread their message via word of mouth among their vast network of customers, creating Twitter accounts, a strong presence on Facebook with nearly 2 million friends. Other efforts include each dealer’s own FB page and own website, all of which have access to the manufacturer’s site, news, product info, dealer locator and more, plus license holder sites. All of this is used to promote new products, showcase product innovation, and get customer feedback, monitoring the electronic conversation and reacting quickly to customer input, engendering even greater loyalty and trust. It’s the message, not the medium that counts.

    Engaging customers also has to do with relevance. Being relevant to your customers may seem like everyone’s goal, and indeed it might be, but these profitable companies seem to have it innately present in their corporate DNA. These companies constantly seek ways to enrich their customers’ lives, and find new ways to be part of them. Coach, Inc., might be a good example of this. The luxury brand has innovated a number of approaches to meeting the needs of its niche market’s need for upscale handbags and accessories, leveraging their brand strength over a series of related products. If you purchase a Coach bag, with its famous lifetime warrantee, and it’s likely you’ll be informed about other Coach accessories, and often buy them, with the assurance that each product, either direct manufacture or licensed, will be made with the same level of care and quality, and at the same price point in the market. If you are a Coach-level consumer, you make it your business to show it, by buying the branded products that prove it. This elite, exclusive approach works very well for them, as it ramps up the relevance in their customer’s lives.

    As marketers, we have a huge volume of information and research data available to us regarding consumer trends, preferences, and behavior. It is up to us to responsibly use this data on OUR customers, to craft innovative, trustworthy, relevant outreach messaging to engage our customers to create brand trust, and drive sales and profits to where they need to be. Most of that trust and relevancy comes from the correct and appropriate use of that data to craft messaging that resonates with the target consumer. Transparency, honesty, relevance and trustworthiness are key to achieving these goals, and you can see the results of such activity reflected in the marketplace and the bottom line.

    This article can be downloaded in PDF form as a white paper.

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  • Engagement Means Understanding

    Engagement Means Understanding

    We’ve been working with several B2B clients recently on outreach programs to help them find and engage new customers, and one of the tactics we’ve had success with is the use of dimensional mail. The main reason is that while overall mail volume is down in the last two years, the amount of mail reaching top executives is up slightly, as gatekeepers have been removed through attrition or layoffs as company’s pare staff, and we were finding that we needed to break through the clutter in the C-suite to get noticed and to actually engage these busy executives with our message.

    While the list is still king, the package is gaining in importance. We’re not talking about a simple A-B test between red and blue carrier envelopes, we mean a full blown package – a box of some type – that contains illustrative media, video, audio, print collateral or other physical, three dimensional object that requires time and thought to understand. It takes a few moments to open, to pick through the parts, to see the story unfold as you peel away layers and get to the meat, the point, the main message. Once you get there, it’s got to make sense to the recipient, to be relevant, to be personal in a way that says “hey, these people know my business and are here to help me run it better!”

    Personalization plays a large part in these packages. Good use of personalization has been shown to boost response significantly, and the combination of personalization and 3D engagement means your target spends a good deal of time with your message, enough to thoughtfully consider your offer and put it in the “investigate further” pile. Now, it’s time for the follow-up!

    The dimensional package is a great way to bait the hook, it’s intriguing, interesting and gets people thinking about your message. It may not be enough to close the sale by itself, few DM packages are when there’s a service or high-ticket item in the mix. But by pushing personalized, strategically-timed follow-up messages through different media, your product is now what we call “Self-vetted” – it appears to come from a variety of directions, and sources, so that it appears to be very safe, legitimate and reasonable. Since top executives are generally a conservative bunch, financially and emotionally, this plays on their natural caution and lowers their defenses, usually enough to make them receptive to a phone call, which is the knock-out punch of the campaign.

    So far this scheme is working for clients, and we have several variations in the works, tweaking timing, packaging, levels of personalization and frequency. The key to effective execution of these campaigns is the homework you do on the list of recipients – each of these packages represents a significant investment by direct mail standards, and you want to keep your waste level low and your responsive recipients ratio as high as possible. Better to send out 5 and have 2 hit with real sales, than to send out 20 and have that same 2 hit.

    A good list, an intriguing, personalized package, heavy follow-up and a persuasive phone call may seem like a lot to go through to reach a handful of individuals – but if they’re the right individuals and the sale is worth thousands or tens of thousands or more, the discipline and forethought is certainly worth it.

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