Archive for category strategy

united trilogy ends

Last July, I wrote a post about United Breaks Guitars.

Dave Carroll had promised to write a trilogy of songs about the sub par customer experience he had with United Airlines. The first song was an internet sensation. Currently, it’s nearing over 8 million views on YouTube and it was heavily downloaded on iTunes. The second song wasn’t as much of a hit but still did well with about 900,000 views.

Carroll is releasing the third and final song tonight. I doubt if it will be as hot as the first one, but these three songs make a great point about how companies need to act in this digital age. In fact, the United Breaks Guitars case study was a last minute addition to my book Brand Zeitgeist as an example of how one unhappy customer can use the power of social media to move the image of the brand in the zeitgeist.

As Dave says

I had hoped that creating these videos might make a big corporation rethink how they think of each and every customer but could never have imagined the potential hidden inside a music video and a few social media tools. Corporations of all kinds around the world now feel compelled, in part because of United Breaks Guitars, to build in a better model for customer care into their businesses. I’m proud to have been a part of it but the real credit goes to the millions of people around the world who took the time to laugh and tell a friend. The power behind the United Breaks Guitars Trilogy lies in the numbers of people from countries far and wide who are laughing with me.

Companies are worried about the effects of social media are having on their brands. Social media is not the danger. Businesses need to be concerned with customer service. People will tell their friends.

Update: The third song…

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insurgents in your organization

Late last week, Alex Bogusky was elevated from CD of Crispin Porter + Bogusky to “Chief Creative Insurgent“ of the ad agency’s parent company MDC Partners.

Hmmm.

Since, by definition, an insurgent is a rebel who revolts against authority or acts contrary to the policies of their organization, Bogusky has his work cut out for him. He’s fighting against “The Man” while simultaneously being “The Man“. That’s tough work.

While I typically despise jargon-ish job titles that have no meaning, the big idea behind this insurgent idea is right on target.

Every organization should have an “insurgent” that provides a contrarian point-of-view for the group. There needs to be someone to stand up and challenge the “that’s the way we’ve always done it” mantra.

The trouble is that most businesses quickly get rid of…or chase off their insurgents. There’s less chaos in the organization when everyone colors inside the lines. There’s also less opportunity for new growth and the ability to react / evolve to a world and market that’s changing faster everyday.

And insurgents have a rough life. They’re usually hated by fellow members and leaders of the group.

Maybe this CP+B move is smart. Maybe having “The Man” be the insurgent is the answer. If anyone can pull it off, Bogusky can.

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punish your biggest fans

A memo from the top brass at the New York Times was sent to employees about the plan to charge for online content at nytimes.com…

Today we are announcing that we will be introducing a paid model for NYTimes.com at the beginning of 2011…we have chosen a metered approach that will offer users free access to a set number of articles per month and then charge users once they exceed that number.
(Read the full memo here)

There is no doubt that there will have to be a paid model for online news. Journalism is not free. But what’s the revenue solution for online news consumption? Hard to tell.

But I do know that penalizing your best and most frequent users is not the answer.

While I can see their plan is to try to have their cake and eat it too — I think it would work better in reverse. Give it to the power users. Those influencers would spread the links, ideas, etc to occassional users who would pay.

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getting priorities straight

Paula Berg is leaving her position as Manager of Emerging Media at Southwest Airlines. And instead of burning bridges on the way out, she left a (ahem) LUV note about Southwest.

Like any good marketer — alot of it is promotional talk, but there are many items on the list that showcase how Southwest builds a brand through their employees.

The one that struck me the most was #33:

Employees first, Customers next, Shareholders last.

Companies get the order of these mixed up all the time. Actually, most businesses have priorities that are the complete reverse of this.

And then there are businesses that think the customer should be first. That’s not always true. The customer is NOT always right. But if you have treated your employees right today and shown them that they are valuable, then they are eager to make sure the customer is satisfied tomorrow.

And shareholders will be happy with their ROI because good employees cultivate good customers (see previous paragraph) who are loyal to the brand and continue to spend money with the company.

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the one where I talk about international marketing

In late November, I was fortunate enough to be included in the third of three groups of American entrepreneurs invited to London by British Airways as a part of their Face of Opportunity conferences.

I’ve often said that it should be a requirement for all high school or college students to travel abroad. I was lucky enough to travel internationally at that point in my life and it helped to make sure I didn’t have a myopic worldview.

Today, I would think anyone in business could easily see the implications of the global economy. And I would hope that anyone who spends anytime online can see the global associations caused by the Internet.

But they really don’t.

Yes. Online connections can be made with anyone in the world. Some of my first heavy commenters when I began this blog back in 2005 were a woman in Canada and a guy in Russia. Even today, when I look at my Google Analytics traffic map or my Twitter followers, it blows me away that people from all over the world are reading my thoughts.

But just as barcamps, tweetups, conferences, and other real world meetups help cement relationships that we build online with fellow countrymen (and women), I think these real world meetings are even more important with the global community.

There’s the old saying that you really don’t understand someone until you’ve walked a mile in their shoes. People in your same country share your same cultural shoes. You really don’t understand a foreign culture until you’ve lived it for a few days.

And this is especially important in marketing. While participants in the groups that I spoke to at the British Airways event had many questions about doing business internationally — especially about logistics, one other common question was about international marketing. No matter the group you’re marketing to, it’s all about understanding the target group’s values, traditions, and worldviews. You cannot market to a culture that you have never personally experienced.

You also have to understand the current and long-term trends as they apply internationally to be successful in creating a global marketing strategy. One of the most striking quotes from the Face of Opportunity conference came from one of its best speakers, Digby, Lord Jones of Birmingham:

“We (the British) ruled the world in the 19th century, you Americans owned the 20th. This is Asia’s century, and how we all play that will define commercial success for the next 100 years.”

The worldview we have become accustomed to is changing. And when developing a global marketing strategy, you’ll have to throw away all the old ways of thinking and preconceived ideas. An incident during another presentation at the event highlighted this issue. A speaker used the example of the Chevy Nova not selling in Spanish speaking countries because the name supposedly translates into “it doesn’t go”. A member of the audience interrupted and called the story bogus as proven by Snopes and others:

Assuming that Spanish speakers would naturally see the word “nova” as equivalent to the phrase “no va” and think “Hey, this car doesn’t go!” is akin to assuming that English speakers would spurn a dinette set sold under the name Notable because nobody wants a dinette set that doesn’t include a table.

But I think most business people’s knowledge of international marketing only goes as far as the Chevy Nova and other false examples like baby food in Africa. If you’re planning a global marketing strategy, you need to start fresh with thinking approaches to marketing and not rely on old models as the world is a drastically different place than just a few years ago. Of course, as previously mentioned, the best thing you can do to help your marketing is go experience the country you’re planning to expand into.

But here’s the thing. Even if you don’t think you’re a global business, you are. If you’re online, you’re global and you need to think that way.

–Kent Bernhard, Jr. gives a much better a great play-by-play account of the British Airways Chicago-to-London Face of Opportunity events for Portfolio.
–Disclosure: British Airways provided my travel expenses for this trip.

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electing the best spammers

The people who seem to be the most clueless about communication are incumbent politicians.

And the area that they seems to be the most clueless about is opt-in/opt-out communication of any kind. Initiate any contact with them and you’re added to their snail and email mailing lists — whether you want to be added or not.

Today’s example: Take a look at the end of this e-survey form from a member of my state’s congressional delegation:

Politicians are the worst spammers.

Do or die. Opt in is not an option.


The cynic in me says that constiuent input is not really wanted here and it’s just an underhanded way to populate a database. After all, I’m used to members of Congress trying to scam me.

But I like this Congressman and think he’s a good guy. And he actually does a really good job getting out and making personal one-on-one connections with people in the district. So I’ll give him the benefit of the doubt and assume that he doesn’t know that opt-in communications are not only much more effective for the sender, but are also just the right thing to do.

It’s basic e-communication 101 and anyone with any common sense should know it, but politicians seem to be blissfully ignorant.

But think about this. These ham handed / bone headed moves are done by the same people who are making big decisions that affect every aspect of your life. Sleep well.

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sadly, this is not a parody

One of the best indicators that you have a horrible idea is that people think its a joke.

Microsoft wants you to have Windows 7 launch party. This is not a joke.

PLEASE do not invite me to any such “party”. If I find out that you’re having such a party, I will call the cops to break it up. I would assume the police would find the idea of the party so disturbing that they would not hesitate to break out the tasers and clubs. You’ve been warned.

If you decide to ignore these warnings, do make sure your guest list includes an obvious forced diversity as Microsoft has done in their sample party video. If you can make it through the entire sample video without rolling your eyes or throwing up, then maybe you’re a good candidate for one of these parties. 

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rebranding the hut

hutIn one of the worst “re-branding” moves that I’ve ever seen, Pizza Hut is dropping pizza from its name and will now be known in some locations as just ‘The Hut‘.

What a great move. Trash over 50 years of brand equity for something that makes me think of a dark dank dwelling in the Third World. Of course, it’s been coming for awhile. They’ve brand-extended themselves to oblivion instead of doing the core product (pizza!) well.

What makes it even more sad/funny is the delusion they’ve sold themselves and are now sending out in media relations…

…characterized the name change as an attempt to transform its stores into hip hangouts…..The new “hut” stores will be more than a place to simply pick up some take-out…they will include televisions that broadcast CBS programs such as “Wheel of Fortune” and “Entertainment Tonight.”

Because we all know the kids think that nothing can be more “hip” than Wheel of Fortune. Maybe they could reach back into the CBS archives and air old episodes of ‘Murder She Wrote’ to be even more hip.

They just may have a bad case of self-loathing with their name. They’ve tried to “rebrand” the Pizza Hut name on several previous occasions like “Pizza Hut Pizza & Pasta Cafe”, “Pizza Hut Italian Bistro”, “Pizza Hut WingStreet”, and the half-joking April Fools’ prank, “Pasta Hut”. A smart guy once said “doing the same thing over and over again and expecting different results is the definition of insanity”

Hey Yum!, listen up. The problem is not the Pizza Hut name. The problem is the customer experience. Even though your spokesperson, Christopher Fuller, gave a cheesy non-answer to real issues, the facts are clear in the public’s mind: Your employees don’t care. Your stores are dirty. Your service is horrible. (In one of my local Pizza Huts, there’s a sign above the lunch buffet that says not to even bother requesting any type of pizza because they aren’t going to do it.) And as I previously said in this post, you have forgotten your core product.

In kneejerk fashion, other chains may follow the move:

  • Dominos will become “Backgammon”
  • Papa Johns will become “Papa Smurfs”
  • McDonalds will become “Mick”
  • Taco Bell will become “The Bell”
  • KFC will become “Sammy Nellas”
  • Burger King will become “CP+B”
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your company’s looming social media disaster

Think about if you’ve met any of these cutting edge people…

  • Remember when the Macarena came out? You probably danced it at some public gathering for the few weeks it was popular. Then it went away. And then a few months later, you were at a gathering and a person played the song and thought they were on the hip cutting edge.
  • Someone in your organization just discovered the concept of viral video.
  • Has someone in the last year or so asked you if you were gettin’ jiggy with it?
  • You get chain emails from them that were debunked on snopes.com years ago.

You’ve met these people, right?
These people are currently signing up for Facebook and Twitter accounts.

We’re over the adoption curve hump of Facebook and we’re steadily climbing it for Twitter which means people who aren’t necessarily online competent are now using online tools.

I’m sure you have at least one friend (probably more) on Facebook that you’re embarrassed FOR them because they post inappropriate things, spam you with requests, don’t realize that their friends can see their conversations/posts, etc. They’re new to the space, and still learning the ropes until they find out the proper etiquette.

For as much as the online world is an open-source / free-wheeling / anything-goes community, we all know there are rules…many of them unwritten ones. The community generally supports, instructs, or ignores individual newcomers when these “rules” are broken. (ALL CAPS, spam, chain emails, etc)

But that only goes for individuals. When a company / organization steps out into the water, it’s expected that they know how to swim. And that same supporting community for individuals becomes a lynch mob for corporate entities who make even minor mistakes. You’ve seen it happen.

And just as there are individuals who are laggards to the social media party, there are now companies who see the train passing by and figure they better get on — even if they don’t know what they are doing.

I am not saying that there is a “right way” to do social media. As I once tweeted

how to spot a true “social media expert” — google their name and the phrase “NO, YOU’RE DOING IT WRONG!!!

But if your employees are venturing out onto social networks and are carrying the mantle of your organization, they need to at least understand the basics of social media and somewhat be cognizant of the “online rules”. Anything else is just asking for a disaster.

Many companies don’t see this looming disaster because they just see small numbers of customers engaging in social media with the organization and don’t understand the deep implications of making a mistake there. Remember this: Your email list, facebook fans, twitter followers, etc are some of your most important customers. These are the people who have stood up and said I WANT to engage with your company. They are the 20% of the 80/20 rule.

Why are you leaving this important group with the interns or inexperienced employees who have no idea how to talk to them?

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the little things

People get excited about and take photos of little bottles of shampoo.

Studies show that tips increase when the diner is given an after-dinner mint and the tip increases even more when the mint is personally handed to the diner by the waitstaff.

Free wi-fi is appreciated (and sometimes abused.)

The little things that you think you can easily cut — are the same things that are making your whole thing tick.

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