Rants on Modern Marketing

Internet: The Two Second Crucial Click Rule

2005-10-21T17:10:00.000-05:00

Recently, I was looking at the portfolio of Internet work completed by an ad agency. They had some nice stuff and were especially proud of one particular website. The tough thing about agency work is you can never be sure if the client watered down a great idea and, honestly, this site was pretty good. But it didn’t pass my “Two Second Crucial Click Rule”…

Where Do I Click?
The Two Second Crucial Click Rule is one of the tests I use when critiquing web design. It’s really just a simple question:

“If I only had two seconds to view the homepage, would I click on the most valuable link (or image, or button)?”

I created this rule after recognizing that most users come to a site with some understanding of what they will find and a goal of completing a task (this rule isn’t necessarily relevant for heavy content sites).

Within the first two seconds these visitors have already tried to figure out where they will click next…and if they can’t figure it out quickly they will move to another site.

What’s my Most Valuable Link?
The tricky part of the Two Second Crucial Click Rule is that you have to choose ONE THING you want web site visitors to do. In the past, I did some work for a really big retailer and their homepage had (at that time) over 75 links on it….an overwhelming choice for any consumer (especially one in a hurry).

You business challenge is to understand and prioritize the goals for the site and provide clear designer guidance so that visitors will make that Crucial Click.

Design Is Crucial to the Crucial Click
Designers are the most valuable member on the Crucial Click team. A good designer will use the full bag of tricks—color, fonts, layout—to help users find the Crucial Click in less than two seconds.

A great way to test the designer’s work is to remove all the text and ask someone to point where they’d click. If it’s somewhere in the navigation, then you’ve failed; your design should encourage users to click in the body of the page where you are featuring the key activity in which you want the visitor to participate.

The test I use more often is to put the homepage on my monitor, invite someone into my office, show them the screen, then turn it off after 2 seconds and ask them to point where they would have clicked. The results always surprise me.

Bottom Line:
Strategists: Identify the Crucial Click by digging into your business and prioritizing your online goals; don’t be afraid to rank the activities by their profit potential. Avoid overwhelming consumers with too many online choices.

Creatives: Understand the prioritization and then ruthlessly design against those goals. Many homepages have clear zones for primary, secondary, and tertiary content. Make sure that primary content is clear at a glance through your use of colors, layout and font.

Tommy Hilfiger: The End of a Brand

2005-10-04T17:05:00.001-05:00

Wow, it seems like everyone is drooling over the possibility that Wal-Mart may purchase Tommy Hilfiger. I guess on the surface it looks like a great idea to follow Target’s strategy of adding designer style to low-end merchandise in order to pump sales and attract more upscale customers. But scratch a little harder, and I think that you’ll agree with me when I say…

“this is insane.”

Here are my predictions for the 12 months following a Wal-Mart acquisition of Tommy Hilfiger:

Target won’t care
I know the press feels this deal is a slam-dunk since Target has had success growing its business through exclusive branded merchandise (Isaac Mizrahi, Michael Graves, Philippe Starck). But Target is quite different in its brand development approach; it doesn’t buy and relaunch mainstream brands, it finds design experts and works with them to build a branded product line exclusive to Target. Kmart did the same thing when it partnered with Martha Stewart.

As an aside, Target stores are significantly better appointed, lighted, staffed, and merchandised than Wal-Mart stores. To equate the shopping experience in the two chains is a mistake.

Department store retailers will drop the Hilfiger line
If Wal-Mart purchases Tommy Hilfiger, they can be certain that the brand will quickly become exclusive to the chain because all other retailers will drop it as fast as they can legally cancel their merchandise orders. No mainstream department store will have any interest in devoting square footage to a discounted brand that they will not be able to sell at full price and be shunned by the upper mid-market apparel buyer.

Licensees will sue Wal-Mart to recover lost profits
A significant portion of Hilfiger’s revenue comes from licensing agreements (jeans, fragrances, underwear, etc.). Wal-Mart should anticipate that retailers will also eliminate the licensed goods from their merchandise assortments. I suspect Wal-Mart will offer some licensees the opportunity to sell goods in the Wal-Mart chain, which may be a large volume opportunity but a low margin business. Many of these licensees will not have the skills and infrastructure necessary to become a Wal-Mart vendor. I think Wal-Mart can expect plenty of licensee lawsuits seeking to recover lost profits.

No new shoppers visit Wal-Mart to find the brand
Tommy is a brand that plays both to the preppy and rapper style sensibility giving it a strong (though admittedly waning) appeal. But Wal-Mart stores aren’t urban (another difference from Target). I live in Chicago and there are no Wal-Marts in the major metro area. In the past I lived in New York where there were no Wal-Marts! Wal-Mart is a suburban/rural retailer. I think that some existing Wal-Mart shoppers will explore the apparel aisle when they see Tommy, but I don’t think that the brand will attract a measurable new customer base for the store.

Bottom Line:
Strategists: This is a nice 5 Forces case with significant buyer power and substitute threats. In the fickle fashion world, what makes the value of a brand? Is it existing retailer relationships and infrastructure or is it public brand perception?

Creatives: Can an upscale brand survive in a discounted environment? What merchandising and marketing changes are necessary to preserve the value in a warehouse shopping environment?

Promotion: Department Stores Reach the End of An Era

2005-09-26T15:45:00.000-05:00

When I was a kid my family visited Chicago for the major holidays. I have clear memories of taking the train downtown to see the store windows at Marshall Field’s State Street and visiting again to share my wish list with Santa Claus. So I had the right to be outraged when Federated Department Stores announced they plan to eliminate the Marshall Field’s name and replace it with their national Macy’s brand…

but I’m not, I think the name change is a good idea.

The Crazy Part is How Federated Made the Decision
Still, I think there is reason to be outraged. The Wednesday, September 21 Wall Street Journal claims that “Federated worked with marketing and consumer research experts before making its decision” and “it conducted mall surveys, a phone campaign and focus groups to determine that folding the storied chain into the larger Macy’s business made sense.”

I’m outraged that Federated used inappropriate research methods to make this business decision (ok, maybe not outraged, but certainly confused). This is a classic research scenario where consumers are likely to say one thing but do another. My guess is that consumers will be more likely to claim to plan a boycott in the event of a name change in some idealistic sense of home-town loyalty (though I should note that Marshall Field’s was purchased by Target in Minneapolis years ago, then by May Department Stores in St. Louis), but continue to shop at the store regardless of the name (as long as the location, pricing, and assortment are similar).

In these research conundrums, talking to consumers doesn’t provide any insights. You have to observe consumers.

Maybe Federated Knows This
I’m a little leery about the facts presented by the Wall Street Journal because I just can’t imagine why the store would conduct a focus group to discuss a naming change. There is no way to measure the financial impact of this decision by talking to 15 shoppers (did they take a vote at the end?). Maybe there’s a little insight to glean from surveying 1000 consumers by phone. Still, it’s so far off-base I wonder if Federated executed these efforts for political (non-business) reasons.

The Answer Lies in the Cards
So, you’re wondering where to go to research a name change?

Federated traditionally changes the names of the stores it acquires. They’ve done it many times before. I’d go digging though credit card data to understand the historical purchase behavior of my consumers before and after a name change.

Consumers that hold a department store credit card are perfect to examine because they will likely be the most name-loyal. By reviewing the volume of their transactions over time and accounting for the name rollout, we get the actual (not threatened) insights we need to quantify the name change impact.

Bottom Line:
Strategists: It’s rare that someone will tell you to ignore what your consumers are saying, but that’s exactly what I’m suggesting. Sometimes you have to be sensible and factor human behavior into your research planning.

Creatives: Just because a company is changing it’s name doesn’t mean it shouldn't consider softening the blow. Think about the design cues that are innately part of your product and preserve them to continue the emotional bond your consumers feel to the product (one Marshall Field’s cue is its clock which is featured throughout advertising…Federated plans to retain the clock).

Promotion: McDonalds to Rent DVDs, Including “Super Size Me”?

2005-09-15T13:21:00.000-05:00

It started two years ago. Rumors circulated around Chicago that a nameless global fast food franchise known for its cartoon character mascot would be placing DVD kiosks in its restaurants. I was looking for a new job and thought working on this project could be filled with fascinating marketing and product development challenges, so I began the frantic networking that led me to a person in the new ventures group at McDonald’s who confirmed that “that project has been killed,” which I believed until last week when one of my friends in St. Louis called to say….

“McDonald’s is renting DVDs, what’s up with that?”

So I did some digging and found out that actually 128 St. Louis McDonald’s are renting DVDs from “redbox” kiosks.

So, um, I guess my sleuthing was a little off two years ago. Those guys at McDonald’s are good at keeping a lid on it!

Why Are They Doing This?
The McDonald’s strategy for redbox DVDs is pretty straightforward: put something in the restaurants that will drive more foot traffic. In this case, McDonald’s believes that DVDs will attract more store visitors (actually, they believe it will attract them twice--once to rent and once to return). And when these new visitors walk in to grab their DVD they’ll be enslaved by the smell of French-fries and unable to resist purchasing a Happy Meal.

By charging only $1 a day for each rental, McDonald’s is clearly signaling that they have no intention of making a profit on the DVD rentals and this is purely a play for increased restaurant traffic.

Does It Pass the Dancing Clown Test?
There’s nothing notable about pursuing strategies to increase foot traffic. Any mature retailer will have it near the top of their list for 2005 strategic priorities. What is notable is the tactics that McDonald’s is using to increase the traffic. Instead of the traditional tactics (discounting, promotions, new products), McDonald’s is entering an entirely new retail category.

And so, as the uber-marketers that we are, we must challenge the plan to the Dancing Clown Test, which you probably aren’t familiar with as I just made it up. The Dancing Clown Test is:

“Would I be more successful attracting additional foot traffic if I paid a guy $10/hour to dress up as a clown and stand outside the store waving his arms?”

Or, more specifically for this case:

“Should I spend $80/day on my clown, or who-knows-how-much to build a DVD kiosk rental infrastructure that allows me to rent movies at slightly above marginal cost.”

The answer to this test is “I’m leaning toward the clown”.

Consumer Behavior Changed In Two Years
I told you I heard a rumor about this project about two years ago when consumers were still renting DVDs at Blockbuster and Hollywood Video. But a lot has changed in the last two years. Consumers changed their rental habits and are quickly migrating to monthly mail services like Netflix. In fact, you should check out Blockbuster’s current website, which makes it nearly impossible to locate a store near you.

One risk for companies that have a two-year product development lifecycle is that they build products that are often out-of-date by the time they hit the shelves. If your firm has an extended development process (and there’s no way to re-engineer the system), it’s best to have a CEO that is comfortable shuttering projects with disregard to sunk costs.

Watch for redbox to Disappear in 24 Months
So, my guess is that the redbox may have some initial success as consumers test the product and kids try out all the buttons. But with somewhat-better-stocked Blockbuster stores (redbox only has about 50 titles) in close to proximity to many McDonald’s and more people migrating to mail-based DVD rentals, I’m very bearish on the long-term prospects for the service.

My guess is that in 24 months you’ll forget that McDondald’s used to rent DVDs and you’ll see a lot more Dancing Clowns (metaphorically speaking, of course).

Bottom Line:
Strategists: Even when the strategy is right (drive more foot traffic), the tactic can be wrong (add DVDs to product mix). Be sure to understand your consumer habits and trends when making tactical decisions.

Creatives: You are often the insight to consumer behavior, don’t be shy sharing your thoughts and insights when evaluating tactical executions.

Promotion: Courting Taste-Makers

2005-08-30T22:57:00.000-05:00

Through a strange turn of events I recently found myself at the Wizard World Comic Book Convention here in Chicago. Along with 56,000 other folks, I perused the latest independent comic book efforts, checked out the super-star artists and story-tellers, and even bought a few special titles. Of course no convention is complete without a few presentations and I attended a talk given by the big publisher Marvel (owner of the X-Men, Daredevil, the Fantastic Four, the Hulk, and many other popular characters). Top executives from Marvel had a golden opportunity to court their fans and pump sales of their comics (and movies, and action figures) and it slipped right through their fingers…

Who Are Your Taste-Makers?
I’ve heard them called Queen Bees (high school girls that set the fashion trends), Key Influencers (doctors at the therapeutic leading edge), and Early Adopters (gizmo-fanatics crucial to success of new technologies). Regardless of what snappy name you call your taste-makers, it’s likely that there is a group of people with opinions on your product category that influence other consumers’ purchases.

And if you can locate your taste-makers and convince them that your product is great, the word-of-mouth marketing is invaluable.

But Wait! These Taste-Makers Are a Jaded Bunch
Stop me if you’ve heard this before: Consumers are media-savvy individuals that don’t like to be marketed to. Well, yes and no. We all know that marketing still works. But I believe you’re more likely to encounter resistance to traditional efforts (advertising, discounting, etc.) among your taste-makers who pride themselves on esoteric product recommendations. Traditional marketing targeting these consumers will just remove the product mystique they crave.

Play the Game
So, if you were a top executive at Marvel and facing a room of 2,000 avid taste-making comic collectors what would you do?

Avoid the traditional marketing pitch, because these kids will see right through your campaign.

Try arming your crowd to be even better taste-makers:
* Provide inside scoop on upcoming storylines
* Introduce new artist or story talent
* Show clips of behind-the-scenes work on ideas in germination phase

A little information to help these taste-makers retain their esteemed position will go a long way to increasing your referral business.

[Wondering what Joe Quesada, Editor-in-chief at Marvel chose to do with this time? He made a few off-color jokes, led off-the-cuff roasts of other Marvel execs, and deflected questions from the audience.]

Bottom Line:
Creatives: Taste-maker marketing takes a light hand, now is the time for subtle work that allows you to stretch design skills.

Strategists: Identify your taste-makers and how you can reach them. And when you’re faced with a room full of taste-makers, be ready to help them while avoiding the hard sell which will surely be ignored.

Promotion: Propel, Why Hast Thou Forsaken Me?

2005-08-12T19:10:00.000-05:00

I marched to the grocery store last weekend fresh from my post lauding Propel for their Chicago sampling campaign. I was determined to track down this fantastic new drink and ready to stock up on all the flavors I could get my hands on. I proudly strode down the drinks aisle to my destination. My eyes slowly traced the colorful bottles, seeking the Propel label. Then I saw it, and I nearly burst into hysterics…

Propel was on sale for $.99 with a regular price of $1.49.

Ok, let me get this straight, you just spent god-knows-how-much on a targeted sampling campaign only to teach your new consumers they should buy the product on sale?

This drives me insane. Why bother trying to build a new brand if you’re going to push it out on the market at a discount? Jeez, just call it Gatorade Clear, save yourself the new brand marketing expense, and run it on sale every weekend. Lord knows nobody considers Gatorade a full-price brand (Gatorade owns Propel).

I’d hoped for so much more. I thought Propel was an upscale water that would incite envy among my friends as I toted the durable blue plastic bottle around during my workouts. Now I know it’s just another flash-in-the-pan that will be gone in 6 months because another brand is willing to pay the grocery slotting fees and promises higher product margins (not that grocers charge slotting fees).

I’m so disappointed I’m not even going to write more about this. Propel, Gatorade (who owns Propel), Quaker Oats (who owns Gatorade), and Pepsi (who owns Quaker): you guys have really let me down. Someday you’re going to have to learn how to sell products without discounting.

Bottom Line:
Strategists: Before jumping into sampling, consider your entire marketing plan. Does it make sense to sample during a heavy discounting period? Are your sampling goals to increase trial or immediate volume?

Designers: You’re off the hook on this one.

Promotion: When Sampling Really Works

2005-08-04T17:15:00.000-05:00

My neighborhood has been absolutely crazy this week as Propel Fitness Water promoters have begun a sampling blitz. These guys are everywhere! They’re at the local beach on the weekends, outside my gym in the evenings, and even stationed on the corner near my local Caribou Coffee. I grabbed a sample, popped open the cap, took a sip, and thought to myself…

“hmmm, pretty tasty.”

And then I thought to myself “hey, these Propel folks aren’t that dumb. Their sampling campaign is actually quite strategic and well executed!”

Sampling is Smart for the Right Products
Let’s start with the basics. Sampling is a good strategy if you need to increase awareness and consideration for your product. No, you shouldn’t sample old-fashioned Ivory Soap because most of us have tried it at some point in our life. But if you’re Propel Fitness Water with few consumers that have ever tasted your product then sampling could be a good approach.

Of course there are some product characteristics that make sampling more appropriate: simple trial feature set (providing samples of only a portion of your product is popular in software), ability to reduce sample volume (a popular approach in consumer products), and a popular-price point positioning (stray away from sampling luxury goods for fear that your brand appeal will erode).

Most Important: Have a Good Product
This may seem obvious, but you better make dang sure that your product will be appealing to the folks that sample it. As marketers it’s easy to convince ourselves that the products we manage are vastly superior to competitors’…but often that’s not the case.

My sample experience with Propel was positive because it was tasty (grape flavor) and much better than the unflavored water I expected it to be.

If your product is run-of-the-mill, with little differentiation, think twice before pursuing sampling. People will take free stuff…but your goal is to blow them away and purchase your product later.

Target Your Sampling Demographic…and Own Them
One important thing to understand about my neighborhood is that it’s inhabited by young, successful, single narcissists…a perfect demographic and psychographic target for Propel Fitness Water (with brand positioning that appeals to “active bodies”).

Rather than spread itself over the entire city and hit a wider demo, Propel chose to focus to own my neighborhood over the course of a few days. I’ve probably seen the Propel fellas ten times in the last three days. If I’d only had one encounter it’d be even odds that I’d remember Propel the next time I did grocery shopping. But after ten experiences I’ll definitely remember them during my next trip.

Also, by swarming in and owning the neighborhood over an extended time, the locals have started to talk about Propel casually. One friend asked if me if I planned to “blog about those Propel guys.” Casual conversations about Propel carry a level of implicit recommendation that company-sponsored marketing efforts will never achieve.

Special Note on Measurement
Measuring the impact of this sampling campaign is actually quite easy with. Propel conducted their sampling in a dense urban residential zone with no more than three supermarkets. Many (or perhaps most) of us don’t own a car and do our shopping locally. By establishing a pre-sample baseline and comparing actual sales to baseline projections (without sampling interference) at the local supermarkets and convenience stores, Propel can get some accurate numbers on their sales lift. I love that!

Bottom Line
Strategists: Don’t jump into sampling--it’s not right for everyone. If it’s right for you, carefully consider who you want to sample, how many samples/encounters are necessary to change shopping habits, and devise a sales measurement plan before starting your campaign.

Designers: Sampling involves the experience beyond the actual product. Be sure to plan how your samplers will dress, how they will display your product, and even consider creating talking points that are on-brand and on-message.

Product: Save Time and Money on Identity Work

2005-07-29T13:53:00.000-05:00

After you’ve swallowed the pill and chosen a name for your product, you need a brand identity to support it. Branding is important, and over time a good brand can help you rise from a pool of commodity competitors into someone that makes 1-2% more in margin. A good brand effort requires customer research, trials, and measurement. But if you’re like me, with limited budget, no time for research, and an already-differentiated product, then you should consider…

…just doing “identity” work. I won’t even call it “brand identity” because it does a disservice to branding experts. I’m talking about plain, old-fashioned “identity” efforts like a product logo, website pages, sales materials, letterhead, envelopes, and business cards. You can set standard font, color, and design cues that are used in all your marketing materials to quickly appear professional.

Logos Don’t Have to Take All Year to Develop
In my experience, logo development can really eat at your budget while a lone designer struggles to present multiple concepts (which usually seem to look alike). Of course, each creative concept costs money and eats at your time and patience.

I recommend www.designoutpost.com as an alternative to the traditional logo development path. Design Outpost is a contest forum where you can post a creative brief and prize and let designers submit entries. I provide daily submission feedback and I’m awfully direct in my critiques. I’ve personally used Design Outpost five times and always had good options from which to make a final logo selection.

Blow It Out With Print or Web
A logo is a great start to your identity, but it needs to be applied to a print piece or website to nail down those important design cues that help unify marketing pieces. I always do website work next because it allows me to make layout choices for large sections of copy as well as apply visual treatments for image work. You might have large print pieces that give you the same opportunities. Regardless, make font, color, and other choices during this phase.

Special Note on Design Elements
I love stock photography. I hate stock photography. I love stock photography. I hate stock photography. I love and hate stock photography!

Stock photo sites (like www.gettyimages.com) give me fast access to photos that I can’t afford to have done by a photographer. But they are often bland and clearly “stock”. I ALWAYS work with my designer to alter image use with treatments that make them appear more custom. Don’t get stuck in the stock photo trap—push your designers to experiment with overlays and graphical elements that make your photos appear custom and establish design elements that clearly belong to your product.

Keep it Consistent
Be a stickler for consistency. Funnel final approval for all your print, web, sales, and other materials through one person to ensure that they comply with your identity standards. Prospects and clients will become aware of your product more quickly if all the materials that they encounter over time contain the same identity elements.

Bottom Line
Strategists: Sometimes you need real brand work. Sometimes you don’t. Figure out what scenario you’re in and be open to pursuing lower-cost identity work.

Creatives: Limited budget and time (and research inputs) doesn’t mean you should settle for bland output. Be creative with your colors and fonts and especially with treatments to stock photos.

Product: Naming Really Isn't That Important

2005-07-05T17:08:00.000-05:00

Ok, in the last year, I’ve had to create names for 5 products. I didn’t want to spend $100,000 and six months making selections so I selected names in less than a day, spent a week defining the branding and identity work surrounding the name, and had the products out the door in less than two months. Big firms like Lexicon will tell you that I’ve made a grievous error and that I should probably be jailed. But I’ve come to the conclusion that for small and mid-sized businesses, the secret to a good name is…

having a good product supported with good marketing.

Really, if you’ve got a good product and good marketing then lets just slap on a mediocre name and get along with it, OK?

Good Names Are the Result of Good Products
Now, I’m sure that plenty of folks will cry about how important a name is to the long-term value of a brand. They’ll say that you absolutely must conduct extensive research on the responses elicited before selecting a particular name. But really, I suspect that Ivory, Tide, Apple, and Marlboro and a million other common and successful names were created over martinis at a local steakhouse. And, if I had a larger expense account that’s where mine would have been created as well (rather than while sipping a Coca-Cola in a IKEA chair with my feet on a Steelcase desk).

And yes, I did mention those names for a reason. Coca-Cola, IKEA, and Steelcase probably never had naming consultants help them make choices. But, as great products with great marketing, they are some of the most valuable brands out there (well, Steelcase may have seen better days, but you get my drift).

Who Decided Naming Should be a Service?
I’m concerned that the naming industry has grown into a specialty simply as a service that allows marketers to lay blame outside the firm if something goes wrong. For the love of all that is holy, a talented marketer should be able to come up with product names on his own.

I’m not going to damn someone for tapping an agency for help with name brainstorming. Agencies employ creative people that could be helpful generating a list of interesting options. But I will say that I’m not a fan of the six figure consulting gig that takes names and tries to apply strategic and cognitive tests to make a recommendation.

Sometimes a marketer needs to be comfortable with a creative choice that can’t be backed by quantitative analysis. If you’re a marketer and you can’t make this type of decision, you should be an engineer!

Don’t Over-Think Naming!
Of course, now that I’m on my soapbox, I will remind everyone that there are some common-sense issues you should consider:

* Make the name different than your competitors’
* Make sure the name fits on your product label (or trade show booth, or whatever)
* Do a quick search to see if anyone is actively using the name (if they got there first just save yourself the headache and use something else)
* Don’t use a name that translates in a major language in a less-than-favorable fashion (a lesson learned the hard way when Chevy launched the Nova…which literally “doesn’t go” in Spanish).

And Buy the Domain Name
After I narrowed my list of product name options down to the final four (or so), I made the final choice through a very disciplined and complex process…I chose the one that had the web domain available. Honestly, this was the single most important factor in our naming process. Because we rely heavily on the web to market our products, securing a memorable and reasonable URL was more important to the product’s success than whether or not a hard “k” sound elicits the right emotive response.

Bottom Line
Strategists: Not everything has to be strategic. Don’t over-think this creative process. Make sure you’ve covered the basic legal and competitive issues, and let the Creatives do their job! Spend your time and money on product enhancements and better marketing!

Creatives: Run with it. Give us some crazy ideas and let’s see what happens.

Television: TiVo Changes Advertising Consumption

2005-06-29T11:08:00.000-05:00

I hate to say I told you so, but well, I kind of did. Back in March, I posted comments on how creative folks might change their approach to be more TiVo (and fast-forward) friendly when working on T.V. commercials. Now, AdRants reports on a Frank N. Magid Associates study that makes similar creative suggestions. Of course, you heard it here first, and that put you 3 months ahead of the competition.

Interactive: Graffiti and Text Messaging

2005-06-16T19:45:00.000-05:00

With thanks to my friend Laura who suggested this topic, let’s talk a little about mobile text messaging and its marketing applications. Text messaging is creeping into our lives through the usual route of the under 25 crowd and the hipsters living on the coasts. Savvy marketers are toying with applications that take advantage of this new communication channel and I’ve recently run across two technologies that seem ready to help our cause…

Grafedia Turns Graffiti into Messages

Grafedia is a New York firm birthed from the NYU Interactive Telecommunications program (at least according to CNN). When a consumer text messages a unique Grafedia address, Grafedia will send back a specific image, sound or phrase.

Got it? Let’s do an example.

I’m opening a new McDonalds and the construction zone is a disaster. I hire an uber-talented graffiti artist to paint the plywood fence surrounding my site. He includes the phrase “imlovinit@grafedia.net” (and underlines it in blue as is the hip designation for a Grafedia-friendly word or address). Passers-by (at least those in the know), send a text msg to imlovinit@grafedia.net and receive a special edition image from the artist for their mobile phone screen…or information about the date my McDonald’s will open…or a coupon for free ice cream…or a ringtone of the McD’s theme song….etc.

Yellow Arrow Makes it Obvious

“But wait,” you say. “My last guerilla marketing campaign involved chalking sidewalks and the city charged me thousands of dollars to clean it up,” (yes, that happened to the best of us). So maybe graffiti isn’t in your comfort zone. Perhaps Yellow Arrow is for you.

Yellow Arrow works through a concept similar to Grafedia. Cardboard arrows (yellow, of course) are posted at different locales with a code. A quick text message to the code returns your marketing message. Heck, Yellow Arrow will even sell you their cardboard arrows.

Learn more about Grafedia at http://www.grafedia.com
Learn more about Yellow Arrow at http://www.yellowarrow.net

Bottom Line
Creatives: Designing the post in a way that is clear for novice text message users but still engaging and enticing for more advanced users is tough. Carefully debate form and function on this type of project.

Strategists: Guerilla postings are always a headache. Plan carefully for vandalism, local regulations, and difficulty hiring reliable workers to post your signs in the right locations.

Outdoor: Creating Your Own Radio Station

2005-06-07T15:14:00.000-05:00

I didn’t expect to blog three times on Outdoor Advertising over the past few weeks, but this technology was too good to pass up! If you’re trying to extend your promotional messaging to a contained geography, Outdoor is a good bet. But I recently ran across a nifty technology that could take it to the next level…

Build Your Own Radio Station
I stumbled across a couple of devices specifically created for transmitting recorded messages on AM radio at a range of up to 300 feet.
http://www.actradio.com
http://www.talkingsign.com

Now, I don’t know the FCC implications of doing something like this, but for low infrastructure cost and a little effort, you can now reach your local customers (yes, 300 feet is VERY local, but I’d bet there are ways to extend your range).

Since this not full-reach radio, I’m dubbing it “micro-radio”.

Clarify Your Strategy
This technology seems to be best suited for reducing barriers to purchase. If you have a lower-value good or service that consumers in a hurry could do without, consider working micro-radio into your marketing mix. Capture consumers in a hurry with messages that replace your in-person sales pitch. Enhance the message to further incent new walk-in traffic.

Experiment with Messaging
My guess is your broadcasts will fall into one of two categories:

Informational Messaging: If you have an apartment complex with drive-through lookers, why not advertise that basic information is available by tuning in? Include complex amenities, rent rates, and more.

Promotional Messaging: Running a road-side fruit stand? How about updating your message every morning with news on the freshest crops and special deals?

Be sure to try both message types. Just the informational messaging may be sufficient to drive the business you need (with no discounts!). However, be aware that informational messaging will have a high initial impact that quickly dwindles as you reach the interested parties that frequent your locale and they realize that without fresh messages there’s no reason to tune in again. Of course, informational messaging is fine if your local traffic is not habitual (in a tourist area, for example).

Bottom Line
Creatives: Consider the amount of time your average consumer spends in the micro-radio range. Limit messaging to the time allowed; a 5 minute message is probably excessive for folks traveling through a 300 foot range.

Strategists: Plan how messages will be updated and set clear sales or lead targets. Be sure to ask new consumers how they heard about your product to track results!

Outdoor: Skywriting Enters the New Age

2005-05-27T17:10:00.000-05:00

Since the dawn of mankind our people have advanced knowledge through the exploration of innovative advertising methods. From Greeks peddling commemorative Olympic thongs and togas to European kings building castles to encourage local tourism, now we have entered the New Age--a time when we have the power to sway every human through our messages. Today I call to my brother and sisters and say it is time! Time to rediscover the lost art of….

Skywriting!

Skywriting is Writing in the Sky with Smoke (yeah, that’s really all it is)
Seriously, I’m sure you know what skywriting is. A plane blows out puffs of smoke to spell words read from the folks on the ground. And then, everyone forgets, mostly because you probably have a kid in tow who is completely out-of-control (in my case, it’s always because buddy is hopped up on too much Coca-Cola).

In the last 10-20 years, skywriting advanced beyond shapes and smiley-faces. Modern technology allows clearer messages through a series of dots dispensed by a machine attached to the back of the plane (see this photo thanks to Adrants).

Use Text Messaging and Phones to Increase Your Returns
I’ve only seen skywriting used for basic branding. But I think it’s time to explore something new. With the ever-increasing adoption of mobile phones and (somewhat less popular) text messaging, companies can now use more direct calls-to-action like:

Free Concert Tickets 312-456-7990
Skin Care Advice 123-456-7890
Free! Txt "MP3" 800-123-4567
Free! Sunscreen Txt "Sun" 800-234-5678

Of course, I don’t recommend using text messaging to target anyone over 25. But I GAURANTEE that a message above any beach during the summer will result in more text messages from high-school kids than you expect. And what mother could refuse skin care advice while lying on the beach with her family?

Plan the Response
When receiving either voice or text messages, carefully consider your response. In addition to a live customer service rep I recommend companies consider recorded messages with information and a clear offer and next step. The Skin Care Advice example could include advice recorded by a doctor and an offer to receive a free sample coupon mailed to your home (or better yet, a free sample mailed to your home).

Plan the Redemption
For really adventuresome marketers, now might be the time to try electronic coupons. Try responding with a text message that includes a coupon code. Encourage customers to redeem the code at the nearest store (“Today! 12oz or less Banana Boat Sunscreen free from Walgreen’s. Code #54321 at checkout.”)

Track (of Course) Redemption
This probably isn’t rocket science, but using unique coding allows you to track incoming calls and code redemption. Rarely do you find an opportunity to track the exact time the consumer receives a message and when they redeem a message. The data can help you set daily projections for future campaigns that help you understand if you will meet the total campaign goal.

Bottom Line:
Creatives: Don’t let yourself be limited to numbers and words. Go old-school and think about ascii art. Just remember that there’s a limit on how long you can go!

Strategists: The opportunities for this medium are unique in the messaging, response, and measurement areas. Be sure to carefully plan each step and monitor your ROI. Also, make sure you’re clear on the message timing and audience (don’t bother marketing to teenagers during the summer along the rush-hour highway).

Outdoor: Making Billboards Sing

2005-05-11T17:30:00.000-05:00

The time could be right to expand billboard use beyond simple branding for location-specific businesses. I think we should consider advancing out-of-home marketing efforts and I’ve started toying with an idea that I pitched to a client a few years ago. If you own a local business like a dry-cleaner, apartment complex, or spa, then you should consider…

billboard ads that encourage people to learn more by calling a number for pre-recorded information and special offers.

Surmount the Billboard Limitations
The thing about billboards is that they get only a fraction of a second to convey their message. There isn’t enough time for a consumer to read detailed product information. As a result many billboards just include a simple brand message and some imagery.

But now, with mobile phones completely ubiquitous, I think a smart marketer could test a “Dial For Special Offers” number.

The Concept
If I owned a neighborhood gym (always my favorite example), I’d try a local billboard that featured my company name and a call-to-action to “Dial For Special Offers” at a local number (no need for toll-free, I only want local customers!).

I’m guessing that it’s hard to catch a phone number the first time someone sees my billboard. But I’m looking for the daily commuters or repeat foot traffic. I suspect that after a few glances over the course of a few weeks that I’d have good luck getting some folks to pick up the phone next time they passed.

The consumer wouldn’t reach a live person when they called, I’d just provide a recording that tells a little about my club and its unique features (my competitive positioning). At the end of the recording, I’d offer free initiation fee or some other compelling offer for anyone that hit the pound symbol to be transferred to a sales representative for more information.

Heck, I might even do a return call to the numbers that didn’t transfer through to my sales representative (I don’t think that most consumers appreciate telesales, so I’d probably skip this step unless I wasn’t going to hit my sales target).

Measurement
If you’re not comfortable with the brand impact measurement techniques traditionally used for billboards this approach does have a nice quantifiable characteristic. By establishing a special billboard phone number you can track incoming calls.

In my gym example, I’d make ongoing changes where I could to improve performance on these statistics:

* Number of incoming calls (to tweak my billboard)
* Number of repeat calls from the same phone number (to track accurate lead information)
* Average call duration (to tweak my recorded message)
* Number of calls transferred to my sales representative (to measure recorded information effectiveness)
* Number of new members acquired through the call (to monitor my sales rep’s performance)
* Value of new members acquired through the billboard (to measure campaign ROI)

Bottom Line
Creatives: Balancing messages in a billboard is quite a trick. Be sure to consider the average viewing distance, the average viewing duration, and even the average viewing conditions (daytime, nighttime, numerous competing signs, etc).

Strategists: Think about expanding the use of outdoor ads for clients that don’t need or want brand marketing. How can outdoor help with more tactical marketing needs?

Internet: Using Google and Amazon for Marketing Tests

2005-05-03T10:39:00.000-05:00

Ever get the feeling that you’re just shooting in the dark when it comes to the daily marketing decisions? Focus groups are great but they aren’t useful for pricing, benefit, or call-to-action insights. Control groups (via direct mail or special retail locations) are the traditional route for this type of research but these methods take a long time to execute and gather results. Don't despair--I've got a solution for you! Through the magic of Google and there is a better solution...

Google and Amazon in a Nutshell
You’re probably familiar with Amazon as an online retailer and hopefully you’re aware that they sell more than books. However, over the past couple of years, Amazon has morphed into something more than you might realize. Now, merchants can load their own merchandise onto the site (and have it listed alongside Amazon-stocked goods). Amazon takes a cut of each purchase (cut size depends on the merchandise category). The merchant is responsible for keeping the Amazon site up-to-date with product information including photos, descriptions, and pricing (more on that later).

I’d bet you use Google every day to do web searches. And if you have an online business, hopefully you’ve at least considered purchasing ads on the Google search results pages. These ads are short text descriptions of your product or service. With a few mouse-clicks (and a credit card) you can be online advertising your web site in minutes. And Google lets you load multiple versions of your ad copy and track results by copy version (more on that later).

Quick to Execute
The Amazon and Google systems are fairly easy to use and the biggest benefit to both is their speed of execution. Your work is in front of relevant consumers only minutes after you make an entry. Want to change your Google ad copy? Don't work with your layout, printing or mailing departments, just make the changes yourself. Want to alter pricing of your products on Amazon? It’s a piece of cake. Skip coordinating a swat-team armed with sticker guns.

Instant Results
I have a friend that changed his product pricing on Amazon on Friday last week. In the old world, a price change’s impact would be measured a month later (if you’re lucky). But with Amazon’s real-time sales reporting, he could monitor sales from his home computer over the weekend and make a quick and informed decision about the success of his trial.

Recently, I used Google to test four copy versions of an advertisement. Each copy version highlighted a different product benefit (including a new benefit I’d never used in any marketing). Google’s detailed and real-time reporting told me which ads performed best (and thus which product benefits were most attractive to consumers). You probably can guess that the benefit I’d never tried in other marketing efforts performed the best. The Google results allowed me to create print materials highlighting the new benefit with confidence I was making a smart business decision.

Bottom Line
Creatives: Take some time to review Google ad copy writing techniques (Google offers good tutorials). Help the strategists write copy and get involved in reviewing results to help refine marketing in all channels.

Strategists: Free up a few bucks and start testing now. You can test product benefits even if you aren’t selling anything on your site. The insights are well worth the few hundred dollars. And if you are selling goods online, start using Amazon as a testing bed for pricing!

Experiential: The Ever-Changing Role of the Greeter

2005-04-26T21:01:00.001-05:00

I hadn’t given much thought to store greeters until I stopped by Abercrombie and Fitch the other day and was welcomed by a bare-chested guy in jeans and a young woman wearing a bikini top and shorts. I realized that this was not the typical Wal-Mart greeter strategy, and I was not sure that it was a good idea. But I’ve come around to some new thoughts on the role of the greeter and think that Abercrombie and Wal-Mart have their greeter strategies spot-on, they’re just two different strategies…

Abercrombie Greeters Attract the Right Consumers
I’m somewhat hip and it actually takes a lot to shock me these days, but the Abercrombie greeters we so blatantly sexual that I couldn’t look them in the eyes. I’m sure their display was enough to turn away most folks older than me, but they were squarely targeted at the late-teen/college crowd that Abercrombie wants.

The Abercrombie greeters are effectively bouncers. Their job is to work the crowd and attract in the right clientele and scare off the wrong consumers. These models are hired for their looks and will never help you find an item or tell you about the latest sales. They ensure that Abcrombie remains hip and trendy and exclusive.

And worthy of the premium price the store charges for clothing.

Wal-Mart Greeters Decompress Families
Another recent visit to Wal-Mart made me realize that the greeter there did not work in the way I expected. I assumed that the greeter’s job was to pass out flyers and make sure everyone had a shopping cart, two time-tested methods for increasing sales. But this greeter did neither.

Instead, this greeter focused on saying hello to everyone that walked in. That’s it. “Hello.”

And (since this wasn’t downtown Chicago), people actually said hello back, and slowed down, and acclimated to the store (which had a large wall of special merchandise nearby). I realized that this greeter’s job was to create what Paco Underhill calls the Decompression Zone. Shoppers are typically quite a way into the store before they actually start shopping. By creating an area where shoppers relax and adjust, storekeepers reinvigorate the shopping square footage just inside their store

(And, as an aside, I notice that the new Abercrombie stores have a little entry vestibule, I suspect for the same reason)

Bottom Line:
Designers: Are you thinking about the overall shopping experience in your store marketing? How does the environment affect your packaging? Your merchandising?

Strategists: Are you addressing merchandising from a holistic ethnographic approach? Are you visiting spaces where your goods are sold and observing how people interact with your packaging and merchandising?

Branding: When to Use a Celebrity Endorsement

2005-04-19T08:00:00.000-05:00

I met with a leading sports representation agency not too long ago. I was there with my colleague who had decided that what his product needed was a celebrity endorsement. The meeting was funny (in the sad way). The agency read a list of athletes and celebrities to see if we had any interest without discussion of what my firm wanted to accomplish or which endorsement would make sense. I finally asked when they felt it was smart to use a celebrity endorsement. The answer shocked me…

“Well, usually we get requests for an athlete when the CEO decides he’d like a little more attention for himself and the company.”

But, Wait, There’s More!
Then this (leading) representation agency actually said “but the marketers are typically that involved and often the deal is dropped after a year because we can’t provide any metrics that keep it in the ad plan.”

My buddy just nodded. I think he wanted an athlete for his product heck-or-high-water. I just nodded too, thinking that it’s amazing an agency can survive without providing guidance on when it makes sense to use their service and how to measure the business impact.

Use Endorsements Judiciously
So, left to my own devices, I’ve come up with three scenarios that make sense for Celebrity endorsements:

Generating Consumer Credibility: New product? An endorsement can signal that your new product (or product relaunch) is a serious competitor and demands consideration. Tiger Woods and Buick is a great example ($40MM, 5 years). I couldn’t tell you much about a Buick even if you put a gun to my head, but the fact that Tiger is a pitchman makes me think I should give them a look.

Reinforcing Brand Positioning: Murky brand positioning? Sometimes a celebrity with a clear persona can reinforce (or redefine) the brand positioning you seek. Tiger Woods and Nike Golf is a choice example ($105MM, multi-year). Tiger stands for peak performance and professionalism, just as I see the Nike Golf brand.

Differentiating in a Crowded Market: Competitors knocking off your product? If you’re looking to just stand out above the noise, this could be a cheap route (skip product differentiation!). A good example is Tiger Woods and…um…well…I guess Tiger doesn’t do these stunt endorsements. How about Burt Reynolds and FedEx?

Identify the Strategy Behind These Recent Endorsements

Jennifer Lopez and Louis Vuitton
Brad Pitt and Heineken
Catherine Zeta-Jones and T-Mobile
Robert DeNiro and American Express
Ellen DeGeneres and American Express
Donald Trump and Pizza Hut
Kirstie Alley and Pier One
Thom Filicia and Pier One
Charles Barkley and Right Guard

Bottom Line
Designers: How are you meshing the celebrity’s brand/personality with your product’s? How do you create an ad that lifts both players rather than degrades the value of one or the other?

Strategists: Know why you want to use an endorsement and be clear about your expectations (and how you’ll measure impact). Understand when it makes sense to look for multi-year/mulit-campaign deals and when you want a single effort.

Internet: How Kryptonite Locks Made a Bad Situation Worse

2005-04-12T21:32:00.000-05:00

Kryptonite locks had a brand positioning that was enviable - really secure locks for a premium price. Then someone discovered that a fifth-grader could pick the lock in 30 seconds with a ball point pen (oops). The news spread fast despite Kryptonite’s complete refusal to address the situation. Now there’s a class action lawsuit. I registered my lock for a replacement and have been shaking my head and thinking that the company could actually make some money off this process if they only had someone with a little marketing sense helping out…

Why the Phone Company Is Always Tries to Sell During a Service Call
You know how annoying it is when you call the telephone company for a service problem and they try to up-sell you call waiting? Well, they do that because it actually works sometimes. The same holds true for other consumer interactions. Try returning something after Christmas to American Eagle Outfitters; they do a great job of training their staff to send you out the door with even more of their clothes.

Recalls Are Just Another Customer Touchpoint
Now, I’m sure there are legal considerations to managing a product recall, but in the end it is just another (costly) customer touchpoint. Kryptonite has to replace my lock. Period. So they’re about to start a long process with me and tens (hundreds?) of thousands of folks that were loyal consumers. We’ll probably interact at least four times (me requesting a replacement, them sending me instructions, me sending them the lock, them sending me a replacement) and perhaps more.

So far, I have logged on to a truly dismal and confusing website which notified me that lock replacements would start shipping mid-October (even though it was January--3 months later). And then I heard nothing until I got a class-action notice from a lawyer telling me to go to another site and print and mail a claim form.

What Kryptonite Could Do To Salvage This Situation
Hey Kryptonite! Start Thinking Smart! Rather than go into a long explanation, I’m just going to break it down into 3 easy steps:

1. Create an online claim form to complement the offline process. We’re all hipster bike enthusiasts that were willing to overpay for our locks. We have computers and you just make us mad when you don’t automate this stuff. Plus, I don’t trust you to process a mailed form since you made a lock that could be picked with a ball point pen.

2. Get your Chief Marketing Officer off their butt (was this person fired for botching the PR?) and turn the claims site into a revenue center. After someone submits their claim, offer them a discount for upgrading the replacement lock model or purchasing an accessory. Start thinking about how to grow revenue from all these touchpoints!

3. Start a monthly newsletter. After the claims process, ask the consumer if they’d like to receive a monthly email newsletter with claim updates (I know I would) and include more marketing and sales information. Use this as an opportunity to jump-start your direct-to-consumer database marketing efforts.

Bottom Line
Designers: Make your voice heard if you see every see a consumer touchpoint that is missing a sales pitch.

Strategists: This is really Marketing 101. Every consumer touchpoint is a sales opportunity.

Internet: How Toolbars Torpedoed Online Conversion Rates

2005-04-08T20:30:00.000-05:00

Once, not long ago, interactive design wasn't so tough. Internet Explorer dominated the browser landscape and it never changed and everyone used it to surf the web. But then Google introduced its toolbar…and Yahoo followed. Then MSN. And finally (gulp) eBay! And your online conversion rates took a small nosedive for a very subtle reason…

Toolbars Push Calls-To-Action Off the Page!
When consumers add toolbars to their browsers they reduce the space allowed for your webpage to appear on the screen (without a vertical scroll). If you’re like most of us, you designed your homepage with clear calls-to-action (like “sign up now” or “start shopping” or “learn more”). And your calls-to-action are probably near the bottom of your homepage since they usually follow basic marketing gobbelty-gook (copy).

But when consumers add a toolbar, your nice calls-to-action get pushed below the area viewable in the screen and now require the consumer to scroll down the page. And people don’t like to scroll online, and they sure can’t click on what they don’t see.

What Designers Should Know (and What 420 Really Means)
Some time ago, a few smart designers calculated the vertical web page display area for a screen that was 600 pixels in height. They said browser buttons and assorted other stuff takes up 180 pixels of vertical space…so we should design for a 420 pixel vertical screen (for those of you that didn’t follow this logic 600-180=420).

I recommend designing for a 390 pixel space to allow an additional 30 pixels. This is based on careful primary analysis of the market’s major players. (OK, yeah, I downloaded them and measured, it’s not really that tough.)

24 pixels Google toolbar
24 pixels AOL toolbar
24 pixels MSN toolbar
25 pixels eBay toolbar
26 pixels Yahoo toolbar
27 pixels A9 (Amazon) toolbar

Circuit City Screwed It Up
There are plenty of good things to say about Circuit City as a company (well-known for their employee benefits), as a retailer (I got a great deal on Turbo Tax that included a $10 gift certificate), and as a web site (pretty good site organization).

But they screwed up the call-to-action placement for their feature. “Shop Now for the Best Selection” just squeaks above the vertical cutoff….until you add the Google toolbar. Then forget it. It’s gone.

Bottom Line
Designers: Play it safe at 390. If possible, don’t place calls-to-action at the bottom of the page.

Strategists: Build teams with cross-functional knowledge. Designers may not understand the impact of copy and call-to-action placement unless you involve them in your business discussions.

Circuit City with no toolbars (see Shop Now in bottom left)

Circuit City with Google Toolbar (lost the Shop Now button)

Just for kicks...see how bad it gets with multiple toolbars?

Pricing: When It Makes Sense to Down-Sell

2005-04-05T17:10:00.000-05:00

Isn’t it easy to forget that Pricing is an important part of marketing's 4 P's? We’re so busy running around working on branding and copy that it’s a rare moment when pricing gets the attention it deserves. And when we talk about pricing, it’s usually to determine how much more we can charge. But one company having good success attracting new customers recently announced a price CUT, a tough call that strikes fear in the heart of every marketer…

Netflix Market Heating Up
You probably know Netflix, but if not, the company delivers DVD rentals through the mail for a flat monthly rate (no late fees). Customers watch a movie and send it back through a self-addressed stamped envelope. Netflix permits numerous movies to be held at customer homes at one time and requires folks to manage movie selections and sequence through an online account.

Netflix hit 3MM subscribers earlier this month. Blockbuster is running scared and announced that it would no longer charge late fees beginning Jan 1, 2005 (and, by the way, thusly surrendered $250-$300MM in revenue). Netflix even has a partnership deal cooking with TiVo to extend its reach to more potential consumers.

But despite all this success, Netflix announced a price decrease.

Netflix Cuts Prices Despite Success
The company reduced the monthly fee on its most popular offer from $19.99 to $17.99 just because of rumors that Amazon would be entering the DVD rental market (which were hopefully confirmed before making the final pricing announcement).

This may seem ludicrous. Why not simply leverage the 3MM subscribers and battle it out with Amazon over features and service rather than eroding margins? Well, one of the unique aspects of web-based businesses is that most of the features are relatively easy to duplicate. Amazon could knock-off any widget Netflix introduced to its web interface, and Amazon’s huge house list of net-savvy customers would make quick inroads into the rental market.

Basically, Netflix was in big trouble

Low Margins Deters Entrants
So, by lowering a the going rate for a month of DVD rentals (and reducing the profits a competitor could expect to reap), Netflix made the market unattractive for new entrants. Amazon launched its service in the U.K, but seems to have scrapped its U.S. plans.

Of course, the pricing change eliminated all the Netflix profits for 2005. Watch for the company to refocus on operating expense reductions immediately and make smart capital investments for longer-term productivity gains. Also watch for new partnership deals that expand the Netflix features and content and are hard for competitors to match.

Bottom Line
Designers: If competitive pressures are forcing down pricing for your services, you’ll need to reexamine how you balance price-focused messaging against features and benefits on all communications.

Strategists: Nobody likes a price war, so be sure to clearly examine all your options before jumping in (but if the market is shifting you must react). If you find yourself dropping prices, it’s time to start development of proprietary features, exclusive partnerships, and new service offerings.

Publicity: How Paris Hilton Goosed T-Mobile Sidekick Sales

2005-04-01T17:05:00.000-06:00

The old saying goes “you’re not a serious blogger until you write about Paris Hilton”....so here we go: Socialites have managed to promote themselves and their causes for years, but Paris seems to be a natural at the practice. When Paris’ mobile phone was hacked recently, we couldn’t get enough details about the scandalous photos, messages, and phone numbers that were released to the public. Some suggest that this was just another clever ploy from Paris to stay in the news. But the real winner in this scandal was…

T-Mobile Raises Awareness
T-Mobile. That’s right. Before the scandal, you probably hadn’t heard about the Sidekick, a fancy camera/phone/email device. Today, kids have awareness of the product, can rattle off the features (Paris used them all), and probably even remind you that it’s only available through T-Mobile. Watch for a long term sales impact as consumer cell phone plans come up for renewal and folks add T-Mobile to their list of potential cell phone providers.

T-Mobile PR Machine Deserves Credit
Let’s be honest, you probably think this just fell in T-Mobile’s lap, right? Well, yes…and no. T-Mobile actually has been quite aggressive in their publicity efforts. I can tell you off the top of my head that Lindsey Lohan (if you’re over 25, you probably don’t know this teen movie star) and Demi Moore (if you’re under 25, you probably know her as Ashton Kutcher’s girlfriend) both have T-Mobile Sidekicks. I’ve also read stories about the fashionistas that add jewels to the T-Mobile Sidekick case for a little extra “bling.” These observations aren’t just accidental. They’re the result of T-Mobile’s press efforts. Being at the center of Paris’ scandal is just the icing on the cake.

>>As an aside, I do have to take T-Mobile to task for only courting the technology press and corporate responsibility communities with their official press releases. Come on guys, why aren’t you pushing the entertainment press with more stories about your celebrity efforts?

Entertainment and Reality Blur, Marketers Must Adapt!
Since Snapple was introduced to middle America on Seinfeld, marketers and press firms have been scrambling to get product placement. Personally, I see the this T-Mobile story as another product placement effort--one that just happened to occur in reality instead of a scripted television show. As the lines further blur between Entertainment and Reality, we need to adapt our publicity efforts. How do you work with your PR firm? How does it define “press relations”? If you’re only working with basic press releases, now is the time to sit down and discuss non-traditional press efforts!

Bottom Line
Designers: Time to start brainstorming. How do you create opportunities for your product to be noticed by others in day-to-day interactions?

Strategists: Determine who your product’s influencers are and learn how they use your type of goods. Build a plan for generating product preference and creating opportunities that allow others to see influencers using your product.

TV: Burger King, TiVo, and Crispin Porter

2005-03-29T19:00:00.001-06:00

Recently TiVo announced an installed base of 3MM units I proudly use one of those 3MM wonders. With TiVo, I rarely watch commercials except in fast-forward mode. But the new Burger King Tendercrisp Bacon Cheddar Ranch spot caught my eye while I was buzzing though a commercial break and got me thinking that it’s remarkable for two reasons: it works in a TiVo viewing environment and the ad agency is doing some unique work for a client that is notoriously fickle…

Chicken Breasts Grow on Trees
I hope you’ve noticed the BK ad also. It features the guy from Hootie and the Blowfish singing about a new sandwich while dressed as a purple cowboy in a fantasy Burger King world.

Now, the advertising pundits will tell you that TiVo owners don’t watch commercials. But that’s not true--we absolutely watch commercials. But we watch them in super fast-forward. We’re watching very intently too, because we need to know when to stop forwarding! So when an ad jumps out as truly unique we’ll stop and rewind and check it out.

And the BK ad definitely jumps out in fast-forward mode. I mean, I’ve stopped and rewound to view it multiple times.

Crispin Porter Pushes Through Unique Creative
You may not like the creative as much as I do, but you have to admit that it certainly stands out from common fast-food marketing. I don’t know anyone at Crispin Porter but I will give them props. BK is notorious for hiring and firing agencies but Crispin Porter quickly built enough trust to get a brand-building, unique ad to run on the air.

Clients in troubled marketing-driven businesses are always reluctant to make the quantum leap they need. The pressure of a false move holds them tight to the relative safety of proven methods that ultimately can't move the revenue needle in a significant way. I can only imagine how tough the Crispin Porter team had to work to get Burger King to go for this campaign.

Ultimately, agencies have to build trust by understanding the client’s business, building on previous successes, and establishing personal relationships. The Crispin Porter’s team has the magic-mojo that allowed them to gain the client confidence to get an ad like this running.

Bottom Line
Designers: Look, TV ad consumption is changing. Consider how your commercial jumps out in a fast-forward viewing. No, I’m not kidding.

Strategists: Good creative that makes a difference is tough to defend. You must have the total support of your client. Dump everything you learned in B-School occasionally and build personal relationships.

Internet: How Internet Telephony Creates New Marketing Opportunities

2005-03-25T19:00:00.000-06:00

You know the articles you read in the Wall Street Journal about Internet telephony (Voice Over Internet Protocol/VOIP)? The stories always focus on a phone company worried about the loss of long distance fees or scared about becoming totally irrelevant (which are completely valid concerns). But has anyone thought about how integrating the Internet with telephony creates a new marketing channel? No? Well, I think one big retailer already tried it, and maybe you should too…

Internet Telephony is Cheap and Data Friendly!
As a marketer, I see two benefits from Internet Telephony:
* Reduces the price of outbound calls to nearly $0
* Easily integrates with my computer systems

If you could send direct mail for free…don’t you think you’d be doing a little more? If you could purchase a 5 minute television ad for $100, would it be in your marketing plan? Well (after infrastructure costs) Internet Telephony is essentially free. Pay your monthly fee and use it as much as you like.

And the great thing about it being data friendly is that one of your sharp IT/Web guys can easily integrate it with your consumer database.

Hmmm…free phone calling integrated with your consumer database…what could we do?

Target Stores Already Did It…I Think
Target Stores tried a very interesting campaign for the day after Thanksgiving (see image at end of post). They encouraged consumers to register for a free wake up call. Consumers signed up and selected the celebrity they wanted to hear from in the morning. Strategically, this was spot-on. It helped position Target as the first stop for consumers beginning their mad holiday shopping rush. And the first stop almost always gets the biggest piece of the holiday pie.

More interesting to me is what (may have) happened behind the scenes. A web interface collected all the requests, populated their consumer marketing database, AND THEN connected to an Internet Telephone system to make the calls! Genius! Cheap! Fantastic! Heck, you’d even get instant reporting on key metrics like number of calls made, number of answering machines, and number of successful deliveries (live calls). Instant reporting during the holiday season is crucial for big retailers that make daily changes to their ad plans/merchandise pricing. Genius! Cheap! Fantastic!

Bottom Line
Designers: Adding a literal “voice” to your brand is a challenge. Is it female or male? How does the tone coordinate with other marketing efforts?

Strategists: Explore the intersection of new technologies and marketing to create unique experiences. Constant innovation is the best antidote to declining response in traditional marketing channels like email and postal mail.

TV: Why Closed Captioning is Important

2005-03-22T19:00:00.000-06:00

If you’re like most people, you probably don’t know how to watch closed captioning on your living room television. But if you’re a marketer, it’s time to learn. Do you check the CC for the commercials you produce? Are you confident that it matches your voiceover? Closed captioning is more important than you expect because a quite affluent group of folks are watching it for about 30 minutes a day very intently at one very special location…

The Gym is Where Your Target Actually Watches Television
The Gym. Yep. All those Starbucks-swilling Yuppies stuck on treadmills are GLUED to the t.v. sets in their gym while slamming through daily workouts. And with nothing else (except maybe an iPod) to distract them, these maniacs are nearly forced to watch the television. And they can’t change channels during commercials!

Higher Awareness for Closed Caption Ads
Folks watching these TV ads are actually paying attention too. They’re reading the closed captioning (even when they can tune in to the audio broadcast through personal headphones) so you get the bonus of requiring them to make an extra effort to internalize your message. People that watch your commercial and read the script will have a higher retention rate…I guarantee it or your money back!

Check and Double Check Your Captions
When producing your advertisements, be sure to check and double check the script going to the captioner. There is some creative latitude here. “Motor sounds” isn’t quite as impactful as “engine roars to life.” A few small details can make a huge impact. Don’t let your agency relegate the captioning tasks to an Account representative. Ensure that a great Copywriter is ultimately approving captioning before you see the final commercial.

Quick Note About TiVo (and Probably Other Technologies)
Unfortunately, TiVo is hi-jacking the captioning data stream (at least the last time I talked with them) to push their own information (basically the signal that turns on the TiVo Thumbs Up to Learn More graphic). You can’t have captioning and TiVo signals both on your commercial (though if you can afford to work with TiVo, you probably aren’t reading my blog). My guess is that TiVo will eventually cave in and figure out a way to have both as their technology spreads and comes under fire from special interest groups (and yes, I think TiVo will grow much faster now that they’ve signed last week’s Comcast deal).

Bottom Line
Designers: You’re in charge of the captions. Don’t ignore them. Get a good Copywriter to review.

Strategists: Hate to break it to you, but this is a detail. You’re responsible for details too. Don’t skip the power of captions when creating your commercials

Operations: Freelancing in the Modern World

2005-03-18T19:00:00.000-06:00

My team just wrapped up a marketing project where we sourced a designer through Craigslist, never met face-to-face, communicated through Instant Messenger, reviewed all work on an Extranet, and ultimately paid through PayPal. Oh yeah, he also lives in Mexico…

Finding the Right Talent on Craigslist
I couldn’t afford an artist rep like my buddy Phil to find the right freelancer, so I placed a posting on Craigslist. I was shocked by the international response (Mexico, Russia, China, Singapore). It really hit me that there is a quiet revolution underway in the freelance community.

My advice for folks looking to hire freelancers through Craigslist is to be brutally clear in your posting about the background you require and the type of work you need…and instruct interested parties to send ONLY a link to their portfolio (otherwise you will get lengthy resumes, cover letters, and more…which I didn’t care about). Expect about a 1-2% rate of qualified candidates and be prepared to spend a few hours reviewing portfolios.

Preparation Leads to Success
So, the designer I wanted to work with was Fernando Velarde, but he lived in Monterrey, Mexico, which meant that he wouldn’t be working in our offices!

My team creates detailed deliverables before engaging the designer including Project Brief and Copy Deck. I also spend an hour (at least) placing details in our Designer Contracts so the artist knows EXACTLY what needs to be completed. Contracts include the number of unique creative directions we need to see, the number of design reviews, the number of revisions, the number of pages, and even the format of the final products (digital, of course).

How MSN Instant Messenger Made It Easy
Since Fernando was based in Mexico and I’m a cheap bastard with no interest in paying international phone fees, we decided to try working through Instant Messenger. It was great. (I should note that Fernando works the same hours I do; it may not be as easy chatting with someone that works in a significantly different time zone.)

Also, MSN Instant Messenger now includes features that let you view another computer desktop, so you can actually see what is on the designer’s screen and view changes in real time while discussing them through chat!

Settling Up Through PayPal
I’m sure this would never fly at a larger agency, but to avoid putting a check through (reliable but slow) international mail we paid invoices in US dollars through PayPal. Every international designer that I’ve worked with prefers to be paid this way.

I suspect that the designers never exchange the money into local currency…just paying for good with US dollars too. PayPal is almost its own global currency for goods bought and sold online.

Bottom Line
Designers: If you’re good, international borders shouldn’t keep you from doing some exciting work in the U.S. (for decent wages). Just be sure to understand exact deliverables and determine up front how you will communicate.

Strategists: Upfront planning is crucial because creative reviews require more time when you aren’t in the same room having an open discussion. Be sure to kick off the project with a detailed brief that includes the full project description, business objectives, consumer expectations, consumer value proposition, competitive summary, strategic challenges, etc.

Plug For Some Good Guys
I’ve been lucky to work with three designers found through Craigslist that I think you should consider for your freelance needs: Fernando Velarde, Alan Lee, and William Todd.

Direct: How My Gym Could Get Me To Pay MORE!

2005-03-15T19:00:00.000-06:00

My gym collects the type of consumer information most direct marketers love. It knows all my contact information (including email), my credit card number, my gym usage habits, and even has a photo of me that pops up every time I scan my membership card. But they haven’t figured out how to use any of this data to grow the fees they collect from me. I’ve got a few simple ideas that would easily squeeze more money out of my wallet while making me more loyal to the club…

Growing Personal Training Clients
Mine the data: Yeah, you could also really statistically mine the data to create a mathematical model that predicts the likelihood of purchasing training time…but that gets much more complicated and (in my experience) can be totally off unless you are quite experienced in the field. I’d keep it easy and just review the records of people using Trainers to identify demographics (age, gender), membership duration (new member, 3months).

Market: Since this group won’t be large enough to do much testing, I’d choose three offers to try in three mailings over three months. Want to make the postcard really jump out? Include the mug shot of me you have on file as part of the creative.

Growing Locker Rental Revenue
Mine the data: I’m going to go out on a limb and say the biggest predictor of locker rental is member visits…the more often you visit the more likely you are to want a permanent locker. The club could review member visit data to identify a reasonable lower bound and create a target group of members.

Market: I don’t think I’d go with a direct mail piece here. If these members are in the club (a lot), why not hit them with a face-to-face sales message? The greeter swipes my membership card each time I enter the club…the same system could prompt him to sell me a locker rental (and the manager should probably incent greeters for each new rental). Again, there probably isn’t enough of a population or payback on tweaking offers, so I’d just rotate a few over the course of a month. How about a free two-week trial, a $10 food coupon, or a free 30 minute training session?

Growing Food and Beverage Volume
Mine the data: OK, I believe that data-driven marketing isn’t right for everything, and this is one of those places. I’m going crazy and saying that the food and beverage purchases at my gym are mostly impulse buys (who says they’re going to the gym for dinner?). The challenge here isn’t figuring out who is most likely to purchase the food, it’s creating the impulse for people to make the purchase.

Market: The food area is currently located next to the exit where members are rushing out the door to get home (or to work if they’re that crazy morning crowd). If you really want to grow this business it needs to be located somewhere that receives more than a passing glance. I’d move the some of the beverages (protein shakes and the like) into a vending-machine and throw it in the relative calm of the locker room. I’d also move the food station (sandwiches, mostly) closer to the workout zone (in view during an entire workout) and make the area around it hang-out friendly (with a few chairs and an Internet connection).

Bottom Line
Designers: When designing direct mail, be sure to understand all the assets available (who would guess that this club had a photo of every member).

Strategists: Scale your direct methodology to the project’s needs. Is it reasonable to do in-depth data mining or will a more basic analysis produce similar results? What are the risks for skipping offer testing; is your target population large enough to payoff the additional time/expense of testing?

Experiential: Store Design More Than Nice Wood Grain

2005-03-11T19:00:00.000-06:00

Not long ago, I watched a big brand agency present its concepts for a new store design (featuring a long explanation of how the wood grain supported the client’s branding). I started my career as a retail buyer and one of my responsibilities was store layout so all I could think was how easy it would be to steal the merchandise if this store was ever built…

Don’t Tell Me You Know Store Design Just Because You Shop
Yep, brand consistency is important for a store and you definitely need to include that in your design process. But (stop me if you’ve heard this before), function needs to complement form.

Store design is more than just a nice wood grain. It needs to be secure (thwarting thievery), enticing (grouping and featuring merchandise), accommodating (easing shopping for consumers), and flexible (managing different levels of inventory and types of merchandise). There are hundreds of tactical elements to consider in all these categories…and they’re really beyond an agency that has no experience doing store work.

Know Common Shopping Behavior
A good agency will understand the client’s business and what behaviors are relevant. Go to Amazon and buy Paco Underhill’s latest books for insights on basic consumer behaviors in stores. Heck, a really good agency will send folks out in the field to do ethnographic observation on your (or competitors’) stores for special insights.

Then, if you really want to do it right, create the floorplan in an empty warehouse space and start tweaking the design in a modeled environment.

Where This (Anonymous) Agency Messed Up
The store design that I viewed was done by a designer working with Photoshop and completely ignorant of basic retail challenges. To help you think through your issues, I’ll share some of the problems that I saw with this agency’s design:

> Security: Unprotected merchandise was easy to grab while walking by, especially if the kiosk cashier was helping a customer
> Stock Balancing: The display required all shelves to be fully stocked but merchandise turnover targets often prevent stocking to this level
> Check-Out: The register didn’t face the consumer on the other side of the counter, so consumers will spend time reviewing receipts (increasing transaction time)
> Merchandising: Shelf lighting wasn’t considered which is especially crucial when dealing with kiosks which often have bad general lighting
> Storage: With no place to store stock, I wonder if the agency expected the kiosk to receive shipments of merchandise delivered on time each morning.

Bottom Line
Designers: Inform your efforts with best practices and independent consumer research. Store design is a immersive consumer experience with complexities beyond traditional print or interactive design.

Strategists: Carefully plan your store design process and consider how it must differ from common brand development efforts. Team with experts in merchandising and store layout if you don’t have those skills in-house.

Subscription Confirmation

2005-01-01T15:25:00.000-06:00

Hey, thanks for subscribing to my blog. You'll receive an email every time there's a new post.

Don't forget that you can add my stories to your MyYahoo! page (use the MyYahoo! button under "Syndication").

Please be sure to tell your friends and co-workers about the site.

>>Go back to the homepage.