Rethinking about Reorganizing

Silos block us from thinking in a coordinated fashion about our customers, says author Ranjay Gulati. I had the pleasure of talking with him about his new book Reorganize for Resilience. It's one part common sense and 99 parts practical advice on how to break down silos and focus on integrated solutions that drive customer value.

Specifically, Gulati writes about five levers we can pull to reorganize ourselves for resilience:

1. Coordination
2. Cooperation
3. Clout
4. Capabilities
5. Connections

Gulati also said in my interview with him that sometimes customers can't always articulate what they want, but that is where our creative efforts should be. I was struck by this statement in terms of how non profits work to solve problems for people who are often so overcome by their situations that articulation of solutions is beyond their capabilities. The irony, however, is this invaluable skill employed on behalf of the populations served is often lacking when it comes to funders. Funding organizations and peoples have problems too that need to be solved -- albeit different ones. Helping them to articulate their needs in terms of ROI for support is essential in driving up participation and dollar amounts.

What donor problems have you uncovered? What have been your solutions? Did you have to breakdown any organizational silos in your non profit or the donating org to get a solution in place?

-- David Kinard, PCM

Holiday Travel Takes $4 Billion Hit

Are you staying home this holiday season? According to a recent poll by Maritz Research Hospitality Group -- you are!

For the past few years, it's been my pleasure to interview Rick Garlick, senior director of consulting and strategic implementation, at Maritz Research. They do an annual poll -- and have done one for a decade now -- about holiday travel plans. Though we have weathered 911, high gas prices, economic sluggishness, and other ailments in the past, it seems that this year these woes have finally taken their toll on Americans and we're staying home, traveling less, and spending less on hospitality this holiday season.

"Holiday travel has been remarkably reslilient," said Garlick. "This year for the first time in a decade we're seeing a drop in travel and spending." And while that drop is only 3%, it equates to a whopping $4.05 billion less spent this holiday season, mostly in airfare. When asked what people are going to do this year, 80% of them said they're going to stay home with family or friends.

Click here to listen to my podcast interview with Rick.

Okay, so what does this mean for your non profit? I asked Rick what marketers should do as they head into the holiday season to mitigate the loss of revenue in the travel and hospitality sector and his advice is OH SO RELEVANT to all of us I thought I'd pass it along to you.

1. Understand what your brand stands for and target a particular type of customer. This seems like common sense, but isn't often common practice. Many non profits try to be all things to all people (especially in their fundraising efforts) and end up communicating a generic, vanilla, and so-so message. Knowing who you are and who you serve means also knowing who you are not and clearly defining and drawing those boundaries. It's okay to say no as a non profit, and the first place we need to say no is in our brands.

2. Add value.
Good advice but this also can be poorly executed. The knee jerk reaction to this means cut prices or lower access costs. Not a good idea -- and most experts agree. Adding value does not always mean reducing costs. It means adding value through HIGH VALUE experiences (read my entries here, here, and here).

3. Be original. (this is my idea, not Rick's)
Jerry Garcia of the Grateful Dead said it best, "You don't want to be considered the best at what you do. You want to be the only one doing what you do." As a non profit are you essential? Are you critical? If you're not there, does another organization just pick up after you or are you so unique and special that important needs go unmet? Work on your compelling, credible, unique contribution and market that year-round. Your essentiality (nice new word, huh!) will help to mitigate any down turn.

Would you add to this list?

-- David Kinard, PCM

Customer Service vs Customer Orientation

If you review the titles of customer service representatives in companies today, you’ll find some real gems: Customer Advocate, Customer Care Representative, and Customer Champion are some of my favorites. These position titles rank high on my list because I think they’re great identifiers of how companies are set up to systematically abuse and mistreat their customers.

Yes, you read it right. All too often our businesses are designed not from a customer-service perspective, but from a company-service perspective. This in mind, it is no surprise then that businesses today need advocates and champions for their customers—employees who are, by nature of their title, charged to do battle with the company on behalf of the customer.

A study a few years ago of customers that stopped doing business with a company cited the top reasons why those customers left. The number one reason, beating out all the others combined was an attitude of indifference by employees or staff. 68% of the customers who defected said they were tired of being treated like a number, or a non-person. More than two-thirds of customers said they were tired of being ignored.

This statistic has some hardcore bottom line lessons for us. If the standard statistic is true—that it takes at least five times more to obtain a new customer than to keep an existing one—businesses today are wasting billions of dollars by the simple act of not caring for their current customer base. Believe it or not, but the situation is actually worse than that. Companies today are doubling their losses by losing existing customers due to an attitude of indifference AND by spending more money to acquire new customers into a system that doesn’t work—a system that will ultimately abuse those new customers too!

Ironically enough, the solution is rather simple. Organize and design the business to meet the needs of the customer. Peter Drucker once said that “marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer’s point of view….Business success is not determined by the producer, but by the customer.”

Bottom line business success is achieved through sustainable customer success. To help your customers become successful, the solution begins with taking one step to change a policy or procedure that, from the customers’ perspective, is cumbersome and alienating. It's the difference between offering customer service to being customer-oriented. Service suggests you need to offer a guide to understand your rules, policies, and bureaucracy. Orientation suggests your entire organization is designed around providing customer value and removing anything and everything that stands in the way of that goal.

As you consider your own company, what feedback have you heard from your customers about how your business is set up? What would they change if they had a voice? If you don’t know, take some time this week and call five of your top customers and ask them these two simple questions: “What are the ways that we make it easy for you to be our customer?” and “In what ways do we make it difficult to be our customer?

-- David Kinard, PCM

[photo credit: Pete Blackshaw]

Blockbuster Marketing

In anticipation of the summer blockbuster movie season, trailers have been playing for quite awhile now. The biggest stars, the biggest budgets, the most thrilling, action-packed, and special effects laden shows will all coalesce into a few short months vying for our dollars, our attention, and our word-of-mouth advertising.

I’ll freely admit, I love movies. I love going to the movies. And I especially love movie trailers. They are usually the best parts of the movie, carefully edited and packaged to create the most excitement and anticipation for the film. And, usually, it works.

I was thinking about the marketing we do for non profits, and how we could take a page from what Hollywood is doing.

1. Direct Appeal
Rarely do you watch a movie trailer and not get a pretty good idea as to what that movie is all about. It’s typically pretty clear if the movie is designed to scare you, make you laugh or cry, if it is going to be an action-packed romp, or a thriller that keeps you guessing till the last minute. And, typically, you as an audience member immediately know if that is something you want to see.

2. Emotionally Engaging
All movies trailers are designed to engage us emotionally. Execs know that emotions are at the heart of our purchase decisions and that our brains are wired to remember and recall things from an emotional perspective. Trailers engage us at the deepest core of who we are, what we believe, what our triggers are, and even how we want to feel about things.

3. Integrated Messaging
Movie trailers, posters, advertisements – online or offline – all use an integrated approach. First and foremost they try to keep the emotional connection built from the trailer in all their materials. Messaging is designed to tell a story and as you experience various mediums you get various parts of the same story. Typically there is no disconnect between any of the mediums used to promote a movie.

4. Adaptability
When a movie trailer is launched to the public, the messaging and promotional materials have usually been tested, either by using prior stats on similar successes, or by using focus groups and audience panel feedback. But after the launch, as a wider audience reacts to the upcoming movie, sometimes the message is modified to respond to critics or acclaim. The ability to quickly adapt to audience response is critical to the success of a movie launch.

5. Staged Roll Out
Movies are stories and as the time for the movie’s premiere date, more parts of the story are typically released to the target audience. This helps to maintain interest and momentum going into opening weekend as trailers can be in theaters as much as a year prior to the release of the film. Keeping audiences engaged for that time take a thoughtful roll out of the various story elements.

Okay, so as we think through our own marketing, one challenge for us is to think like a movie producer and find ways to tell an engaging story in stages. As we reveal threads of our story, we can do so by integrating different channels into the mix, and work to ensure our consistent message remains adaptable as we receive feedback. The whole goal here is to build anticipation, excitement, and word-of-mouth buzz for our premiere. And, as we get acclaim after the launch, we immediately tie that into our messaging.

I don’t think there’s any reason to wait for an event to start adding some of these elements into your marketing. So, why not try integrating these ideas into your existing marketing programs and see if you can’t create some blockbuster marketing of your own.

I’d love to hear how things work out if you try this approach. And, if you think I’ve missed an important element, let me know so others can consider adding it into their mix as well.

And, this summer, I'll see YOU at the movies!

-- David Kinard, PCM

Flashmobs and Non Profits

How much fun is it to be a part of your cause or organization? This video is part of a public marketing effort by T-Mobile and from the faces in the crowd you can see they're having fun.

From what I can make out, there are plants in the crowd -- those who are part of the event, know the songs, know the choreography. But what is exciting to watch is how more and more people are added into the mix over time, and many who are not part of the marketing program.

This video reminds me of an old camp song that starts, "It only takes a spark to get a fire going." I wonder what could be done in today's cause-related organizations to add an element of fun, of excitement, of spontaneity that would engage all those around you. Here in Seattle, one of our famous companies Pike Place Fish knows how to do this as they are world-famous for their fish-throwing antics and customer engagement (yep, that's them in the FISH and FISH STICKS videos). Here are two for-profit examples of companies who learned to engage those around them. What are good non profit examples?

Whether you like T-Mobile or not, you can't deny the impact these flashmobs have had. Googling t mobile dancing video produces more than 22 million results. YouTube has more than 40 related videos on their site just from that same search and people are talking, buzzing, and sharing. Not to mention those who participated will share the story offline making individual and powerful connections.

Think past handing out fliers in the park. How can you add delight and amazement to your marketing and positively (leave behind the offensive sandwich boards and negative messaging) engage the public in your cause. Think of the smiles and joy you see in the faces of the people in this video -- how can you add that same quality to your own community engagement?

-- David Kinard, PCM

Let’s Date First Before You Grab My Wallet

This is the time of year I get a lot of mail from very worthy organizations. Some I’ve heard of before, most I haven’t; some I remember from prior years at this same time. All share a story of deep need teetering on the verge of crisis and the opportunity for me to make a difference. All have no problem asking me for money. Unfortunately, this same experience is being played out across the country, likely in your mailbox as well.

I would like to think that if I had unlimited funds, I would be more than happy to send checks to all these organizations. I could feed the hungry, house the homeless, provide educational kits to children in far away places, and even pay for medical supplies to ease those who needlessly suffer. But I have limited funds and I can’t help everyone. So I make a choice which organization I support. And the decision is pretty easy: those organizations that sought to first understand the motivations I have for giving and created and nurtured a relationship with me over time – they get my money, time, and energy. Every year. The others are like those people in the movies at nightclubs who use bad pick-up lines trying to go from hello to breakfast all in one cheesy opening line.

In his book buyology, author Martin Lindstrom suggests that the noise of advertising and promotion has become just like wallpaper to our brains. We see it but the message doesn’t really register. That exact same thing happens with these requests for help – genuine and important as they may be, they fall on deaf ears because there is no prior relationship to base the request on. But it doesn’t have to be this way.

Whether you’re a non profit or for-profit, I have a new year’s resolution I want you to make. Start in January to establish and build a relationship with your constituents and community. Make regular and non-request contacts with them throughout the year. Keep in touch, tell success stories, treat them like you’re going on a date and are s-l-o-w-l-y falling in love. Woo your community. Then, at the right time, make a small request. Then, once you’ve demonstrated to that participant what you’ve done with their gift to you, say thanks and be quiet. After a period of time – when you’ve been dialoging and sharing – building a deeper relationship, then you can ask for something bigger. Go ahead, pop the question!

Sending me a letter during the holiday season telling me that you’re in need and want money just isn’t going to cut it anymore. In fact, I’ll go so far as to say that it is poor stewardship of the funds you do have. Sure, you’re likely getting a series of donations from that campaign, but I’ll bet your not getting the donations you could if you’d ask people out on a date first.

-- David Kinard, PCM

P.S. If you want to hear more about and from Martin Lindstrom and his book buyology, be sure to listen to Marketing News Radio on February 25, 09. I'll be interviewing him about his book.

A Lot of Talking...But is Anyone Listening?

Over the past two weeks I've had the pleasure of moderating two panel discussions on Beyond Analog: Becoming Part of Today's Digital Marketing World. The Webinars were sponsored by the American Marketing Association as member-only events, and were precursors to the AMA's Mplanet 2009 conference slated for January in Orlando, FL. On the panel were Julie Fleischer of Digitas, Greg Verdino of crayon, llc, and Toby Bloomberg of Bloomberg Marketing.

One of the slides Toby shared had to do with a graphic created by Brian Solis and Jess3 called the Conversation Prism. This masterfully illustrated wheel identifies all the various ways the social Web is integrating itself into peoples' lives...or the other way around. Either way, it is an amazing look at the proliferation of engagement technologies. But with all the ways we have to talk to one another, to review, share, tweet, input, output, post, publish, update, and edit -- the larger question is if anyone is listening, or are we all just talking into the ether.

There are already many places where you can find the number of estimated blogs, Web sites, and users of social networking sites like Facebook, MySpace, Second Life, and cyworld. Needless to say, there are a lot. People are publishing at an amazing rate -- some of it relevant, much of it personal, most of it just noise.

Listening to the presenters, and sorting out the questions from the audience, here are a few items of note I took away from the event:

• The opportunity to add digital to the marketing mix is appealing, but not the first thing a marketer should start doing. Marketers must first ensure what they have to say is relevant and builds relationships. Let the message and the audiences' reception requirements define if the mix has more digital or analog in it.
  
• Digital is not a silver bullet, and it is not a panacea for the insufficiency of an existing marketing program. Many marketers will start a blog, add their company to Facebook, or attempt to find ways to widget and wiki, but unless the marketing program is based on consumer insight, tactics -- whether they are digital or analog -- are just tactics. The responsibility is to customize the marketing program to your audience.
  
• ROI is not as elusive as many marketers think. The problem is not that we can't measure the ROI of digial initiatives. Rather, the problem is that we don't have targeted, specific goals in the first place. Remember, measurement starts at the mission/goal articulation phase of the planning process, not as an after thought at the end of the campaign.


• Waiting is not an option. Many marketers are waiting for someone else to figure out what digital is and isn't before they do something. The fallacy of this approach is that your consumers are already engaging in digital. Waiting simply means that your consumers are building relationships and engaging with those businesses, products, and services that are doing things right now.

-- David Kinard, PCM

How Customers Shop

There has been a ton of research over the years on how consumers make purchase decisions. On my radio show, I've interviewed many experts who offer up just as many explanations ranging from brand loyalty to price sensitivity, and everything in between. However, I've never found anything that replaces the Howard Model of Consumer Decision Making. In its simplicity, it breaks down consumer purchases into three possible categories -- habitual, limited, and extended decision making.

The easiest purchase are those we make from a habitual basis. A recent study by brand guru Erik Joachimsthaller, author of Hidden in Plain Sight, found that when customers went into a convenience store for a salty snack, they avoided the displays up front and went to the part of the store they knew had their desired snack. It was a routine, not a thoughtful choice. This scenario is played out whenever you buy that thing at the store without really looking at what's available, rather you shop for recognition of the package in the spot on the shelves you've seen it before. Purchases of gasoline, toilet paper, or other low-involvement commodities fit into this category.

The next level up is a limited decision-making purchase. This is when we are looking at options, but don't want to put a lot of energy into the purchase. A common scenario for this type of purchase is when considering what movie to watch or which restaurant to go to dinner at with friends. Typically, the purchase price is a bit higher than a habitual purchase, but not always. Price is not always a factor.

The third and most complex level is the extended decision making scenario. For example, this scenario comes into play when you're buying a car, a house, or getting a pet. This situation is very similar to the limited scenario except for what happens afterwards. Have you ever bought a car and then drove away feeling like you should have done this or that? Or on the way home you see your type of car everywhere? This after-purchase dissonance is common and suggests an opportunity for marketers to reinforce the purchase decision with added value and positive messaging.

When marketing, I've often suggested that marketers consider tailoring their communication programs first on where their product or service fits into the decision-making model, and then on integrating communications into the consumer behavior patterns. This creates an opportunity to not only stay relevant based on consumer activity, but also provides a better ROI by linking the communications program to the product value.

-- David Kinard, PCM

Rule of 7

One thing you learn from being in marketing for any length of time is that there are lots of formulas and rules for doing most anything. Marketers are great at coming up with six easy steps for this, 10 rules for that, and a dynamic 4-part matrix for thinking about anything else.

One of those rule sets I've always like was the Rule of 7. It basically says that if you want your prospect to take action and buy what you're selling, you need to connect with him or her a minimum of seven times in an 18-month period. Then and only then can you reasonably expect the prospect to fully understand what your product benefits are, and take action.

While I've never been able to find any study or research data to suggest that the Rule of 7 is correct, I do like the spirit behind it. In a world where it is said that the average consumer is bombarded by more than 3,000 marketing messages every day, it's easy to see why we need repeat exposures of our messages to gain memorability and traction with our audiences. It also suggests that there is something to be gained with time. Eighteen months is a long time in a marketers world, but it is short in terms of the quality of relationship between people.

I think there are three key take aways from this rule:

1. Think long term. Building a meaningful relationship with a prospect that fosters awareness, remembrance, and positive action takes time. When you approach your marketing communications with an 18-month timeline, they move from hard sell to intimacy. It causes you to think about quality and depth.

2. Frequency of contact is important. When you think of a family member and staying in touch with them, is seven times over a year and a half enough to keep them top of mind? I might suggest that seven is too little, but it depends on the relationship type. Regardless of the ratio of time and contacts, what is important is that you remain on the radar screen of your prospects. This means frequent and relevant communications.

3. Think dialogue, not monologue. This is an obvious point in a Web-enabled, socially-empowered, and technologically-linked marketplace. If those seven communications are just you talking, then there is no relationship being developed, no intimacy being gained, and no relevancy being learned. Make sure that your communications are both monologue and dialogue -- with emphasis on two-way conversations.

-- David Kinard, PCM

Meaning Matters – Adapt or Die

In 2001, the American Society of Association Executives Foundation published a seminal book on Exploring the Future. In it, authors Olson and Dighe reported on fourteen trends facing non profits, especially associations. Those trends represented seven strategic conversations that any enterprise benefits from engaging.

Charles Darwin is often attributed with the phrase, “Adapt or Die.” He was referring to the survival of the species but his comment applies to all organizations that are facing relevancy issues. And with today’s troubling economic times, those who survive will be the ones who are most effective and efficient in creating meaning for their customer communities.

Meaning matters. In the marketing world we know these words as customer value. However, there is a much richer interpretation of the words when looked at from a non-profit’s perspective – and an application of them that could mean increased customer loyalty and competitive positioning.

The competitive company will create more than just the traditional supply of products and services laden with various feature sets that are an attempt to beat out the competition. From a meaning matters perspective, the competitive company will create an opportunity for belonging and identity on behalf of the customer. Social networking sites are attempting to do this, some with more success than others. But when the formula is right, they become the enduring qualities that drive customer loyalty and create brand evangelists.

Meaning matters suggests we stop looking at our customers as transaction channels. It demands from us a perspective that treats customers as members of a community. Their payments to us are an act of investment into the community, and we then serve as stewards of those dollars. We take their investment and strive to make the community, and it’s value, richer and more meaningful to the members.

It’s a different perspective, but one that has been working for non profits and associations for more than a century now. And if you think there’s no money to be made by thinking this way – just consider the tens of billions of dollars raised every year by non profits, and the seven-figure incomes of their senior staff.

Meaning matters.

-- David Kinard, PCM

Customer Wait Times -- How Long is Too Long?

If you’re like me, you hate to wait in lines at the store, or too long for service at a restaurant. These long check out lines, or not enough employees available to answer your questions, it seems like we as customers are often getting the short end of the stick. What impact does that have on a business – when customers are asked to wait? Will a long wait time even cost you business? And if so, how long is too long to wait? We talked about this and more in today's Marketing News Radio broadcast.

On the program today to look into this issue of how long customers expect to wait for service was Tom Krause – he’s the director of strategic consulting for Martiz Research Retail Group. His team just completed a study of more than 1400 American consumers to see what their expectations and limits are when it comes to waiting around.

I'll admit I was surprised by what I heard. For the most part, Americans aren't that bothered by having to wait in lines. Perhaps we accept it as part of the cost of doing business someplace. And, to our credit, we are rather forgiving when wait times are too long if the employee is courteous, genuinely sorry for the inconvenience, and smiles.

But there is a dark side to an extended wait time. Fully 80% of the respondants walked out of a restaurant, 40% left a bank, and 50% walked out of a convenience store because the wait was too long. And for those who walked out -- 30% of them never went back.

Sure, long waits are inevitable. An unexpected rush of customers can easily overwhelm a manager's best attempts at staffing. Krause offered up a list of NO COST things an employee can do to minimize negative impacts of long wait times and even some suggestions for what retailers might do this holiday season to preclude frustrations before they happen.

Experts from Maritz Research are regular guests on this show and today was no exception to the interesting topics and practical value they bring. Be sure to check the show archives for other radio programs with Martiz covering customer experience and customer engagement practices.

-- David Kinard, PCM