Save the date!

Local Social Summit - London - 9-10 November 2011

When big brands think local

This week sees the third Local Social Summit in London. I’ll be there, curating a panel of great thinkers sharing their views about what happens when national (or international) brands start connecting with their customers at a local level.

Think about it.

The marketing team sit in an obscure corporate headquarters and create the rules around which the brand gets portrayed by the company. Often those rules create absolute positions – fixed views of what people should understand about the brand – that seem to have missed the shift in expectations that the social explosion have started to create in their audience.

Now consider the challenge they face when it comes to interacting locally with that audience. I’d argue that you can’t successfully run that from Corporate HQ – but even if you try to, for large brands, that means a substantial team of people being involved.

And, unlike the typical large organisation, your customer won’t distinguish between ‘Marketing’, ‘PR’ or ‘Customer Service’. They won’t conveniently direct their social call-outs to the part of your organisation that you’d really like them to take it up with. The Social Phone (to borrow a phrase from Radian6) doesn’t come with an IVR menu. (Maybe that’s one reason people go social rather than telephone customer services).

So if that marketing team have any chance of meeting that challenge they need to figure out how to corral the organisation’s responses to the social phone. And so do PR. And Customer Service. And so on.

That means combining a degree of enablement, mentoring and strategy to equip the people on the ground with what they need to respond. And that runs counter to the established wisdom of old-school marketing. Or PR… etcetera.

I’ll be joined by Duncan Ogle-Skan of EMO (who advises his clients’ how to do this), Leanne Tritton who runs PR & Communications agency ING Media, together with Alistair Watts of Hand Picked Hotels and Janis Prescott at Mini UK, both of whom do this for real.

 

Great piece on McKinsey Quarterly today. It reminds me of the old-school mantra about ‘information is power’ that led to some types of managers seeking to keep that information close to their own chests, rather than sharing it with the rest of the organisation, to cement their power base.

This is quite a long read – but worth the effort. One immediate stand-out for my world of driving eCommerce revenues:

3. How would your business change if you used big data for widespread, real-time customization?

Customer-facing companies have long used data to segment and target customers. Big data permits a major step beyond what until recently was considered state of the art, by making real-time personalization possible. A next-generation retailer will be able to track the behavior of individual customers from Internet click streams, update their preferences, and model their likely behavior in real time. They will then be able to recognize when customers are nearing a purchase decision and nudge the transaction to completion by bundling preferred products, offered with reward program savings. This real-time targeting, which would also leverage data from the retailer’s multitier membership rewards program, will increase purchases of higher-margin products by its most valuable customers.

I welcome the advent of the data-aware organisation that operates in a transparent set of market conditions. In this world, true leaders will be the ones who can read the context around the data.

 

 

I’ll be on the podium at 2.55 on Tuesday 1st November at the MediaPro conference at Olympia. I’ve just finished putting together my ‘prezi’, so if you’re interested please feel free to take a look.

I’m talking about the balance / contrast between using data to deliver relevance in digital communications with the importance of understanding context as well – particularly as the importance of both smartphones and tablets is changing the ecommerce landscape. Enjoy – and please let me know what you think.

 

Apparently, Groundhog Day is coming...(with apologies to the Ting Tings)

Thanks, Yahoo!

I just got an over-enthusiastic email from Yahoo about something that means very little to me. Following on from my recent rant about poor sign-up practice over at Q Magazine’s website, Yahoo have shown that actually having all that good data can be a waste of time… by failing to use it.

“Dear Yahoo! Calendar and Yahoo! Notepad Customer” runs the greeting.

This is being sent to me because Yahoo! think they hold some information on me – and they definitely have in my Yahoo! profile a record of my name. Shame they didn’t bother to personalise.

And, if they’d paid any attention, they’d realise that I don’t use either Notepad or Calendar. Had they recognised this, they’d have been able to send me an enormously more relevant email inviting me to explore the new service.

Finally, am I alone in thinking this name change is extremely naff?

Sorry Yahoo! No sale.

 

Too much information?Never mind ‘Q‘. The more pertinent question is WHY?

I admit I have a tendency to get more worked up than the average customer about bad form in email sign-ups. Most people, I’m sure, will either groan and put up with it, or lie… Maybe they simply don’t bother and move on.

But for me, it seems daft to go to all the effort and investment of persuading someone to engage more closely with you – and then make it so difficult to actually get on your email list.

There is really only one piece of information you should ‘require‘ to send someone email. Yep, the email address. Take a look at this form: it’s the only thing that Q have NOT required you to give. Madness.

All the other information is useful, I agree. But if you don’t get it immediately, it can still be gathered later… a really good welcome programme is a much better time to do it. Anyway, surely it’s better to be in contact with someone you know only a little about than to lose them completely because they don’t want to share their full address, mobile number and date of birth with you?

I’ve worked with a lot of companies on their sign-up processes and subsequent email programmes. I’ve analysed which data you hold on someone is the best indicator of customer value – for retailers and for media companies. Believe me, there are many more important things than having all these required fields.

Please, Q, stop making your would-be subscribers jump these barriers to entry. You’ll thank me for that advice if you follow it!

 

Spam.

According to the Economist last week, it’s on the decline… temporarily at least, thanks to the shutting down of a bunch of servers in Russia.

Part of the rationale Mark Zuckerberg offered for Facebook Messaging when he announced it this month was that:

“…the “social inbox” … would catch spam or other unwanted messages. “Because we know who your friends are, we can put in really good filters to make sure you only see things you care about,” he said, with unwarranted confidence.”

go complain

So why are supposedly respectable marketers like gocompare.com sending me messages I don’t recall signing up for… and then requiring a password, email address (astonishingly) my date of birth to remove my email address from their list? Why???

This comes across very badly: one very small step short of phishing.

In the (generally) looser regulatory environment for email marketing of the United States, would expose them to risk of prosecution. This is one area where the US rules are better crafted than those in Europe, where this is not against regulation – but it is firmly against best practice standards.

In practice, what I did was to hit the ‘REPORT SPAM’ button on my gmail account.

This makes my problem go away, but is only the start of their likely headache.

Increasingly, the focus of deliverability is shifting to an engagement index. Every person that hits the ‘SPAM’ button adds to the likelihood that messages from this sender will end up in the SPAM folder, not the inbox. It doesn’t make any business sense at all to keep people on a list who don’t want to hear from you. So let people leave your list in good grace: they may be more prepared to return to you at a later date when what you have to say is of interest to them again.

 

I’ve just got back from a few days in LA, presenting at Lyris’s Future Vision conference there. Obviously, I flew Air New Zealand from London.

Now I’ll admit, as a kiwi, to being a touch biased. But frankly, this is an airline that takes a completely different view as to why it exists. It’s not just a way of cargo-freighting sardines from one corner of the planet to another, it’s a central part of marketing New Zealand as a whole.

And why not? After all, the main reason you’re likely to fly them is to get to NZ. The airline is a badge of honour for the country, and for tourists the first taste you’ll have of the place. So why not get the experience off to a great start.

The extensive in-flight entertainment module is liberally sprinkled with the best of NZ music and cinema (and I don’t just mean that other expensive tourist video, the Lord of the Rings trilogy). The menu is packed with unashamedly NZ-flavoured meals (NZ Lamb with chick peas…) and a liberally shared wine / beer selection that was extensively steeped in kiwiana.

The in-flight team are not all kiwis, but were all amazing.

And then there was the neat twist on the safety video.

Overall, I loved every minute… and it made me not just want to fly Air New Zealand again whenever I can, but to visit the ‘mother ship’ as well. Great work, guys. That Airline of the Year (2010) award looks spot on to me.

 

the iPad: child's playI picked up my iPhone this morning and thought “it’s just about perfect, except it could be bigger…”

I guess I’m not alone – it seems the good folks over at Cupertino have been on the same thought. And, as regulars on this blog will know, I’ve been a consumer of ebooks on my iphone for a long time.

There’s been a lot of discussion in the media about how the iPad may help publishers embrace the digital era – especially this excellent post over at Gizmodo, which identifies that Apple are trying to do what they did with the iPod: not haggle about the early adopter audience who’ve already bought a Creative JukeBox (or Kindle in this case) but rather reach the rest of the world. Those regular consumers who just like great kit that works.

The impact on marketing is huge. The transition of apps from the iPhone to the iPad will be an enormous opportunity for marketers who’ve succeeded in engaging their customers to the extent of committing to a download. This might be content driven – or commerce driven – or other ‘marketing as a service’ approaches. And yes, I’m look at you, fashion retailers, banks and other service providers.

My colleagues at my new employer, Lyris, are working on an app for a fashion retailer that already looks great on the iPhone. If the high net worth customers of this brand do, as I suspect they will, end up with iPads to do their surfing, they are almost certain to use it to do their online fashion shopping.

Are you ready for that?

 

minority reportMany years ago I spent some time discussing online & mobile marketing plans with Blockbuster in the UK, trying to figure out how to apply an appropriate business model for their relatively unusual marketing requirements.

The sticking point for them was what was termed the ‘anticipation of disappointment’. The scenario is this:

  • you are on the train home and decide to reserve a film to view – it’s 2002, so the DVD I want to rent is Minority Report.
  • my local Blockbuster has a dozen copies of this film to rent out
  • there is no way to link (in real time) in-stock DVD rentals with the web (or mobile for that matter

So I’ve decided that I want that film, but I know from experience that I cannot guarantee to get it. As my train journey progresses, I’m anticipating disappointment – and planning for what I will do if all the copies are out.

Now Blockbuster put a lot of time, thought and resource into countering that problem, but is is a significant issue for the business – and they needed a strategy to encourage people to deal with it without losing future custom.

Chanel JadeThere are whole categories of business that do this really well.  Luxury brands are high on that list: Chanel have released a Jade nail varnish that has been the buzz colour of the year:

“Having sold out in 40 minutes (for £16 a pop), Jade is now a collector’s item. Bottles on eBay (possibly placed there by impoverished beauty editors since hardly anyone else managed to get hold of it) are fetching £84.”

Similarly, Swiss watchmaker extraordinaire, Jean-Claude Biver, who runs Hublot strongly believes in creating scarcity. In boom times he under-delivered against orders for his highly prized – and priced – watches.

“You only desire what you cannot get,” he says. “People want exclusivity, so you must always keep the customer hungry and frustrated.”

Hublot has significantly outperformed the Swiss luxury watch market even in the past year – a period that has seen brutal declines of sales figures for his competitors.

tchibo_shopTchibo is one of Germany’s leading retailers. It’s an extraordinary business to British eyes: they completely revise their product range each week on totally different themes, stocking low-cost versions of popular products from luxury watches to laptops to kitchen appliances and clothing. Some of their sales items are enormous bargains, and consumers go out of their way to try and buy one… only to discover that they have sold out, Chanel-style, in the first 40 minutes.

This anticipation of disappointment is part of Tchibo’s brand proposition. It’s the trade-off against exceptional value. I’ve met many Germans who LOVE Tchibo.

I’m sure I don’t need to elaborate on the high-profile exploitation of scarcity in supply for items Sony Playstations or Xboxes. Variations on the same themes.

But there is a common thread through all of these: the disappointment is part of the brand promise. It underpins part of what makes the brand proposition work. And it is reinforced by a degree of exclusivity: other people make green nail polish, but it’s not Chanel Jade. Other games consoles are available, but it’s the PS3 I really wanted. The difficulty of buying a new Ferrari is part of the mystique around owning one.

Most retailers or suppliers have a different problem. In the Blockbuster case, their answer was to carefully balance supply and demand so that during the first couple of weeks of release, there were sufficient copies of a title on hand to meet the initial surge of interest. They then sold off second-hand copies that were surplus to later requirements… aided by the delay between rental release and full retail release.

Other retailers are less able to deal wtih the problem: my local cornershop in London routinely runs out of the weekend newspaper I want to buy before 10am. The result? I no longer trouble to go there at the weekend because I’m anticipating disappointment. But there is no trade off, just pure frustration.

Too many other organisations fall into this trap. And it breaks the brand promise.

 

First Capital Disconnect

I’ve long thought of  First Capital Connect’s ‘thamselink’ service as the train line that time forgot. So I was quite surprised earlier this year when they launched a potentially great Twitter service, promising that, if you tell them where you travel to and from, they will direct tweet service announcements that affect your journey.

The direct tweets generate and email and a text message to give me more-or-less instant notification of problems, so I can plan around them. This is a great customer service/marketing promise… I signed up.

I’ve since had all kinds of updates about stuff happening at opposite ends of their service, on trains that have no connection with my own little branch line. Oh well, you come to expect disappointment from train services I guess. Not the end of the world, just somewhat spammy.

This week, I’ve tried to use their trains on four separate occasions, only to discover that, for reasons that have gone unexplained (unexpected autumn leaf falls?), they have been unable to offer trains. Or, it seems, notifications on their twitter feed.

I’d never seek to discourage organisations from trying new things to improve their customer service or perception – and I strongly believe that the types of service messages First Capital Connect promised show enormous promise.

But if you make a promise, you have to keep it.

My frustration at the cancelled trains is severely compounded by the failure of the train company to keep their notification promise. I’d not have like the cancellation anyway, but would have been impressed with their ability to advise me ahead of time and therfore allow me to make other plans.

In the language of tweets, #fail


*===* UPDATE *===*

(no) more trains?

(no) more trains?

(12th November, noon) – I’ve found out why First Capital Connect are in such a bad way: they’re suffering from industrial action. They’ve even devised a new timetable. They just haven’t bothered to tell any of their twitter followers (to my knowledge) about this. Genius.

Oh – and it turns out compensation can be claimed at their website. Maybe that’s why they’re not telling anyone?

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