4sight

On Target

In a recent Sunday edition of The New York Times was a full page ad for Target, asking this simple question:

Tell us what more we can do for you.

Customers are encouraged to send Target an email, and they'll receive a timely response.

Does it get any more simple than this?  A basic question about how an already successful retailing giant can improve the customer experience.  As we have learned over the years with our own database survey work, research is marketing.  The very act of asking for a consumer opinion is almost always perceived as a positive.  

And this type of consumer campaign can help expand Target's reach, while converting fans to evangelists.  At Jacobs Strategies, we regularly utilize the Net Promoter scaling into nearly all the research studies that we conduct - especially the fan-based web polls.  In a very simple question, it identifies "promoters" - those who will willingly sing a product's praises to others, while recommending it to them.  The Target ad can accomplish the same thing, while strengthening the bond with current customers. 

Oftentimes, stations ask us how they can expand their databases - without marketing or contest dollars.  But if you think about it, the types of customers who sign up for your email club based on the bribe of winning something are likely to be very different from those who join up because they are interested in helping make you a better product.

A simple campaign - like Target's - run on your website - could be just the fan/database burst you need.  But be prepared to follow up your initiative with valid, timely, and meaningful responses.  And be prepared to serve up some solutions.  My bet - based on moderating hundreds and hundreds of focus groups over the years - is that you'd actually come away with some good ideas.  You can bet that before Target crafted their campaign, they made sure they had a back end in place, to ensure that suggestions would be properly handled and responded to.  And some of the best will more than likely be put into action. 

Maybe this is another reason why K-Mart and other retailers are no longer in the same league as Target.  Connecting with consumers, especially during a time when companies and institutions are being questioned on a daily basis isn't just smart - it's good business.

Happy Fourth Of July!!

 

 

We wish you and your family a safe and wonderful Independence Day!!

 

Invisibility

A recently released Ad-ology Research study reports that in a lousy economy, consumers are paying attention to companies that advertise - and those who don't.  According to the research, nearly half of the respondents believe that when companies become invisible from an advertising perspective, it's an indication that they're struggling financially.

Of course, this is great news for any company, including newspapers and television, because it can help sales reps make their cases that even during tough times, remaining visible is good business.  I would argue that during recessions, in particular, it's especially important to market, and advantageous, too.

Hopefully you've also heard radio spots for CBS Outdoor, and got the message, as they try to drum up business for their battered ad medium.  Their slug line - "Becoming invisible is not a marketing strategy" - definitely caught my attention.

In deep recessions, there are winners and losers.  The venerable brands that keep their content as fresh and healthy as possible, combined with a visible marketing presence, are going to be in the best shape when this mess finally subsides.  Maybe we should start listening to our own advice.

Ex-Icons

Recently, AOL Money & Finance created a list of 13 iconic brands that now find themselves on the brink of bankruptcy.  It's an impressive list, and it's sobering to see this collection of once monster companies that are now flirting with disaster.

The article cites household brands like Citigroup, Sears, Kodak, and of course, General Motors.

But in the entertainment category, there are a bunch of familiar names to all of us in media.  We're talking Blockbuster, The New York Times, Playboy, and Six Flags.  And then specific to the world of radio, Clear Channel and Sirius XM are part of the financially shaky 13.

A number of years ago, we did research work for Playboy, and even back in the '90s, you could see the storm clouds in the distance.  It was a dated brand in a new media world, and the emergence of the Internet and free access to porn made Playboy's position tenuous.  In a lot of ways, Mr. Skin provided a slick digital answer to Playboy in a contemporary, cool package.  Add that to the dilemma that Playboy was always positioned as the "cleanest" of the skin magazines, thus making it difficult for them to move into the more profitable and ubiquitous hardcore space.

Blockbuster fought similar technological innovations, especially TiVo, Internet films, and cable on-demand offerings.  And of course there was that botched "no late fees" policy that really wasn't, and Blockbuster found itself leapfrogged by better and more elegant technology. 

Then there's Clear Channel, and the promise of consolidation, and the synergy of combining radio, television, concerts, and outdoor into a formidable package that never really delivered.  It sure didn't create better radio during a time when new technology was burgeoning. 

And "the answer" to terrestrial radio - Sirius and XM - has gone from hot to ho-hum in just a few short years.  The promise that it would be to radio what cable was to television was unrealistic, and while having Howard Stern was the same steroid for Sirius that he was for Rock radio, the entire industry was bypassed by iPods, Internet radio, podcasts, and other entertainment technology that is cleaner, cheaper, and offers more choice.  

The AOL Money & Finance should be a warning to all heritage brands (including AOL!) that in this world, you can't sit back and live off your reputation. 

Consumers are loyal - but only to a point.  When something new comes along, you'd better consider it quickly.  

Kodak (who's on the list) was in denial about digital photography, the record industry never understood mp3 downloads, and even today, the book publishing industry is pushing back against Amazon's Kindle.  It's a mistake because it is the obligation of any company and every board of directors to look down the road, recognize change, and find a way to adopt and adapt.  That's one of the major lessons of the Internet, and the schooling is far from over. 

More big brands will undoubtedly bite the dust before this shakeout ends.  But learning from the companies that have figured it out will provide some great lessons for those of who will most definitely live to fight another day. 

Two of these come to mind - Ford and Apple.  There's no question that economic conditions have taken their toll on many companies in the past few years, but there are also positive stories for companies that have found a way to survive.  Ford stands out as the lone member of the Big 3 that didn't have to go the bankruptcy route, and will most likely emerge as the strongest of the Detroit automakers.  And Apple, which was written off for dead, has obviously reinvented itself in dramatic ways to become the envy of many technology companies.

Coup(on) D'Etat

Excuse my French, but as our research at Jacobs Strategies has been showing for months, it IS the economy, stupid.  Between our most recent Technology Poll, and the ongoing focus groups that we've been conducting, we continue to see online coupons rise in value - to consumers.

Now, a new study from Coupons.com shows that entertainment-oriented coupons have jumped in usage from #6 to #3, as consumers crave value on their leisure time activity.  As consumers struggle to make those tough decisions on where to eat, which concerts they can afford, and what necessities they might buy, any company can come to the rescue with great coupon deals OR free entertainment and events.  It's not difficult to be a hero in this environment.

 

And a recent Simmons Market Research study shows that more than 40 million Americans print online coupons, which is a jump from 20% last year.  Plus, consumers who only use online coupons saw their usage rise 46%.  I'd call that a trend. 

Again, a perfect marriage for advertisers and consumers.  And it's all hyper-local.  If you help out customers during this tough time, you can help create connections they'll remember for years.

The Superstar Syndrome

Are major sports organizations missing the boat when it comes to promoting their elite athletes?  By snubbing their "true teams" -  collections of great players (like the Orlando Magic or Detroit Red Wings who lack marketable stars) who somehow come together to vie for and win championships - are they sending out the wrong message to fans?

The NBA was dying for that Kobe vs. LeBron match-up, but the Orlando Magic had different ideas.  By dispatching James' one-man team, the Magic has reached the NBA Finals, while breaking the hearts of the TV networks and the NBA corporate moguls.  

And what becomes of those Nike puppet commercials featuring the two superstars - only one of whom will play in the Finals?  And how much did those spots fire up Dwight Howard and the Orlando Magic on their way to the big dance?

The same thing is occurring in the Stanley Cup Finals as NBC is using their website coverage of the game to focus on Pittsburgh Penguin Superstars Sidney Crosby and Evgeni Malkin with their Star Cams.

But wait a minute!  Who won the Stanley Cup last year between these same two teams?  And which one has now won four Stanley Cups in the last eleven years?   And the Red Wings don't have any players worth isolating on Star Cams?

Sometimes in order to truly capitalize on bigger than life personalities, sports leagues lose some perspective along the way, and the truly tuned-in fans know the difference.

Conan The Magnificent

In just a few short days, Conan O'Brien gets his dream job - host of The Tonight Show.  In a great profile in this past Sunday's New York Times magazine, the challenge that Conan is facing is spelled out.  Between Jay Leno's 10 p.m. show, Letterman, and the competition from guys like Stewart, Colbert, and Kimmel for audience loyalty, it's not going to be easy.

The elements that work for Conan in an increasingly crowded environment are his devotion to prep and perfection - and that's what stood out to me while reading the article.  Yes, he's got a large well-qualified staff, but it is O'Brien's dogged devotion to getting it right that has already allowed him to thrive in a sea of great talk shows.

Here's a quote from his article that sums up his approach to every show:

"...I did not want to fail.  And now I'm addicted to the feeling of what it's like to do a good show.  There are 35 variables every night - what comedy do we have?  What's the audience like?  Who are the guests?  What time of year is it?  What's my mood?  You need 15 cherries to line up to pay out the jackpot.  And, every now and then, the stars align.  And you keep chasing after that feeling." 

What are your show's 35 variables?  Or maybe there are only 11.  What are the factors that contribute to pulling off a great sales presentation, a successful product launch, or a new initiative?

As the article points out, Jay Leno's reputation was sealed when he had on Hugh Grant to comment after the actor's prostitution scandal.  But in today's environment with the myriad news sources, those types of moments are much harder to create because of the huge mass of media outlets.  To really win, it's about preparation, booking, treatment, and doing your homework. 

But it's more than just prep.  The other interesting angle in the article is Conan's willingness to get out and meet affiliates, even as he's preparing a new show with a new set in a new city (L.A.).  And he's not just showing up in America's glamour capitals, but in middle markets that many might find less desirable.  As he commented, "If you want to host The Tonight Show, you need to go to Kansas City and Cleveland and Milwaukee and San Jose and Oklahoma City.  There's something about the show that does belong to those people." 

In business, it's not hard to spot the difference between the startups that "get it," and are willing to put in the requisite time, prep, and strategizing to make it.  It's hard not to pull for Conan.

Political Capital

Last week, I had the pleasure to participate in a panel discussion with Greater Media Chairman/CEO, Peter Smyth, Kay Olin, the President of Local Focus Radio, and chaired by Marcia McBride, former Chief of Staff to FCC Commissioner Michael Powell, at the Media Financial Management conference in Atlanta.  It was a great opportunity to talk about how radio is handling the digital challenge during these tough times.

After our panel, Evan Tracey, founder and president of the Campaign Media Analysis Group, spoke about the coming political advertising opportunity for mainstream media.

Wait, you're thinking - the election was over months ago, and it will be more than a year before the midterm contests begin.  But Tracey's point is that the Obama presidency is really acting like it's still running for office.  The result?  Advocacy advertising is showing signs of being bigger than ever, and the Democratic National Committee is still aggressively in "campaign mode."  As a result, Tracey expects that the Republicans - who he describes in "survival mode" - will also have to start getting aggressive with getting out their message.  He also noted that many state races are already heating up, too. 

Even though the candidates and advocacy groups will no doubt use new media, the fact is that the Obama campaign underscored the importance and power of traditional media outlets like television and radio.  Tracey believes there are opportunities for "old media" to benefit from these changing political trends.  

Who would have thought that 2009 could end up being a big political year? 

 

Marcia McBride, Kay Olin, Fred Jacobs, Peter Smyth

Forever Young

A recent interview in The New York Times with Zurich Financial Services CEO, Jim Schiro, revealed his interesting corporate philosophy that is obviously a work in progress.

Schiro has canceled his company's midyear meeting (where they used to fly in 400 employees), and now provides his "state of the company" messages on YouTube.  They are typically videos taped from his company "road shows," and they have a very natural feel.  Yes, anyone can access them, but Schiro has bought into transparency and these changing times, believing that there's nothing in these videos that should be hidden from public view.

One of the main influencers for Schiro is youth.  In the interview, he talks about how he now regularly recruits very young assistants to be at his side.  While these youthful employees only serve in that role for six months or a year, they provide the type of feedback and perspective that older employees cannot bring to the corporate boardroom.  As Schiro states, "...a smart, bright, energetic young person" offers a viewpoint and knowledge that is more in-synch with where the business world is moving.

I think back to many of the college and even high school classes where I have been asked to make a guest appearance over the years.  Most often, these speeches have been premised as providing students with a look at "the real world" of radio, and the modern media workplace.  All that assumes is that young people don't "get it" when it comes to how business is done.

But that convention has been turned upside-down.  While professionals, like many of you reading this blog, have a genuine perspective about our business, the teens and twentysomethings who we're supposed to "school" have a view that we could benefit from.

How many CEOs could benefit from Schiro's concept of making sure there's a bright, young, up-and-coming professional at their sides?  Instead of hearing the same, tried-and-true opinions, having a youthful, tech-savvy consigliere could bring a different viewpoint to the company.

It might not be a bad idea to invite a twentysomething to the next board meeting.

iPhone Urban Legend

You may have seen the story that at the recent OMMA Mobile Conference, a major exec from Papa John's Pizza, Jim McDonnell, expressed his disappointment with the company's iPhone app.  There's only one problem - his company doesn't have an app available at the App Store.

If you own an iPhone (or Touch), you know exactly what I'm talking about.  The charm of the iPhone, and the main reason it has exploded in sales growth and customer satisfaction is the App Store - a virtual candy store of apps where new ones come in daily.  Our Tech Poll indicates that better than 8 in 10 iPhone owners download apps - free or paid.  It's the key driver why the iPhone has become the leading mobile device.

When I read the story about Papa John's, I went to the App Store to see why their application wasn't working for them.  And of course, they don't have an app.  A follow-up article about the conference reports that Papa John's has an "iPhone-enabled mobile site" that includes a store locator and a speedier way to order pizza.  

So two problems:

1. If you're playing around with apps (and I emphasize "playing"), it's time to rethink the strategy.  Or in fact, develop a strategy.  Just being available on an iPhone doesn't solve any problems, nor does it address consumer needs.  Too many potential clients come to us here at Jacobs (or jacAPPS, as we're now calling our business), and simply asking whether they can buy an app.  While the interest is flattering, our next step as developers... and marketers... is to sit down with them to discuss the goals and strategies behind the app.  

In the case of Papa John's, there's no driving strategy here, aside from making it a little easier for pizza eaters to find one of their stores.  There are so many other things their app could contain - menus, coupons, a pizza trivia game, and even the user being able to custom design a pizza.  And of course, it would help Papa John's if they actually had an app. 

2. If you're serious about your brand being a part of the iPhone, and you're not providing an app that's available at the App Store, you're making it difficult for consumers.  The essence of the iPhone is elegance and simplicity.  It shouldn't be hard to find and download your app.  But if it's not searchable inside the App Store, and not available with a one-touch download (just like every other app), you're kidding yourself about what you're truly offering consumers.  I don't care how many other cool features your app delivers.  If it's not in the App Store, it's not an app. 

We've now developed more than 60 apps for clients who are enjoying their position inside the App Store, and these apps have now generated more than 600,000 downloads in just six months.  That's not a bad contribution toward Apple's one billion total, and our app business continues to grow.  We're now developing apps for festivals, personalities, as well as games for other brands.  

There's a learning curve here, as Papa John's is finding out.  It's like "Brave New World," and mistakes will be made.  We're studying the analytics, and beginning to conduct research into app usage, accessibility, and utility.  It's part of our responsibility as marketers and developers to figure this thing out, and better serve the brands that want to be a part of the mobile device revolution. 

In many ways, it's like 1993 all over again, when a small number of companies had built websites, and the other 95% were thinking that perhaps it was time to start thinking about building one of their own.  So, again, two pieces of advice.

1. Get a strategy

2. Get inside the App Store