31 August 2008

Children say the simplest things and we should, too

Marketing people can learn a lot from their kids--or other people's kids. Kids tend to put things in the simplest of terms and rarely over-think things. That is the problem with most business/marketing plans. The simpler something can be boiled down for the user the better. If it can't be boiled down easily then perhaps the problem isn't marketing but the product/service itself.

Politics and marketing--yes they are related

What does John McCain and Exxon have in common?

Both are bad at marketing. Why? Do I really need to define pandering for you? Okay, then I will.

Pander - According to the dictionary is: "To cater to the lower tastes and desires of others or exploit their weaknesses"

Pander - According to Wikipedia: "In politics, portrayal of one's views to fit in line with a certain crowd of voters the candidate is attempting to impress, when often, these are not the candidate's true beliefs. A candidate may engage in pandering out of desperation if s/he is already losing a race, or if polls taken prior to an election show others as being in the lead."

Wikipedia gets closer than the dictionary. You could swap out the word politics and put in advertising when referring to Exxon and adjust a few words here and there.

Have you seen the Exxon commercials where they are saving the world while destroying our economy? That is pandering. And you know not one person in this country is buying what those commercials are selling except the executives at Exxon.

If you have heard the news about who McCain has chosen for his running mate? Anyone have the feeling McMaverick is more of a used car salesman than a Presidential nominee? Apparently McCain thinks the American public is as dumb as the Exxon executives think we are.

I see it this way: if you are honest then deceit doesn't come into the picture. If you are a company like Exxon the best thing you can advertise is something that is real and effects those you are advertising to.

So lets figure this out. Exxon is making record profits while myself, my neighbors and every person I know in America is worth less today than they were a year ago. Why? One reason is the cost of gas. Now all of us are thinking about alternative fuel sources and getting away from oil. What could Exxon do that might actually work for some good PR? How about invest tens of millions in alternative fuels like adding hydrogen pumps at stations within X amount of miles of each other. Or add propane and start investing in solar power.

Here is one idea that I've had floating around for a long time. Buy back old lightbulbs. The kind with a filament and exchange those for compact flourescent or invest in LED lights and exchange old fashioned lightbulbs for those. Even trade. Imagine if every household in America switched tomorrow to these energy saving lightbulbs. Now that would be a brilliant marketing/PR move for Exxon.

What could McCain have done to help himself in terms of good marketing/PR? How about taking on the best candidate. Sure, McMaverick will claim his running mate is the best, but when something is as transparent as this pick then the only person you are fooling is yourself. This is truly one occasion where the Mac has out thought himself right into a PR nightmare.

28 August 2008

How AAA might go to A minus

In a time when companies are finding their market shares being eaten by online monsters like Google the best thing isn't to try and duplicate the lack of features they offer but offer more features.

I was a AAA member, no longer. Why do I need them when I have Google? Sure, they offer auto coverage when I get a flat tire, but I use them most for maps for trips. Google has devastated that market. So what does AAA offer? Trip Tickets that look like they were printed on my aunt's ink jet. These are worse than subpar. Instead AAA could offer me the best, most detailed maps and reminded me that Google can't compete with them. AAA has not only ignored quality products it has given up a market they owned for decades when they don't need to.

Here is one more reason AAA is no longer a company I subscribe to. When I took my kids to Disney Land we went to a highly recommended hotel by AAA in Anaheim. We stayed there long enough to find one of the worst hotels on the strip. We moved down the street to the Courtyard by Marriott and into a hotel that was nearly a condo. It went from a possibly horrible vacation at AAA three star hotel to a wonderful vacation at a great hotel.

The hotel might have been nice in the 1960s but not in 2008. What year did AAA last visit that hotel? When the company,AAA, that you rely on to give you recommendations no longer has any credibility then they are in even deeper trouble. Consumer Reports is one of the most respectable companies in America regarding their recommendations and that is because they constantly check these products and test--what about AAA?

If I was AAA I'd do the following:
1. Quality maps and services for travel. Don't just cede to Google the mapping game. Also, GPS trip planning is another option. If I have a GPS system have your service agents program my GPS trip and all the stops from gas stations and recommended places to eat and sleep.

2. Start incorporating deep reviews by users. Not just stars and ratings. Get the ratings from members and every time they go or stay some where give them points for rating everything possible and change the actually AAA ratings based on a cumulative rating. Also, put users photos in the books and on the site--including video. Wouldn't it be great to have member travel videos about their trips and what they did? AAA shouldn't take reviews from non-members--that way they aren't skewed by hotels, restaurant companies and/or their friends.

3. AAA should release their reviews internationally based on their internal reviews and member reviews. AAA should become the Consumer Reports of hotels, restaurants, family entertainment and recreation. This would then allow AAA to charge yearly travel fees for reviews, etc. only ala Consumer Reports.

4. AAA has to makeover their entire website and rethink their web approach. Customer service isn't a bad thing so don't only expect your users to just go online and do all the work. Older members don't even get online. But the web is the only way to get new members. There are lots of people out there like me who do a lot of research for trips and don't want to be disappointed.

Moral: AAA isn't defeated yet, but if they don't move quickly they'll find themselves in a long line of companies like newspapers who are trying to figure out how the future came and left them wondering how they missed the boat.

25 August 2008

Why a website can really save you money

Recently I had a problem with a hinge on my Dell laptop. I called Dell and thanks to our company's service agreement they came and fixed it free. That sounds good except it took longer for me to make the appointment than it did to fix my laptop.

All the technician had to do is go under my keyboard and tighten four screws. I'm pretty smart and with some simple instructions online could have taken care of it myself. Sure Dell had some things but not the solution to my problem. Here is an idea--have your technicians write up instructions for things they've fixed that didn't need a replacement item for--like tightening my screws--and pay them extra for it. That'd certainly save some more cash in the future. It took a week to fix something that I could have, and would happily, fixed in 5 minutes and for something that cost Dell money as well.

15 August 2008

What every business could learn from Netflix

Why does Netflix have a cult following? Well if you read an email I received from them you'd understand.

"Dear Charlie,

As you may know, we had issues with our shipping systems this week. As a result, we didn't ship DVDs to you in a timely manner, and you likely didn't receive email letting you know we got a DVD back from you. Our shipping systems are working again, and any outstanding DVD shipments are being mailed today (Friday).

We pride ourselves in delighting you, and we've let you down. We apologize, and we will issue a 15% credit to your account in the next few days. You don't need to do anything. Your credit will automatically be applied to your next billing statement.


Again, we apologize for the inconvenience and thank you for your understanding. If you need further assistance, please call us at 1-888-638-3549.

-The Netflix Team
"

How could I be angry when they did everything right?
1. Netflix told me they had a problem.
2. They gave me a credit to make up for the error--even more than the error was valued.
3. They gave me a real phone number where I could call them if I had questions.

When is the last time you communicated this well with your customer? It's better to be a friend with your customer than a business partner. Customers may not know they want a relationship with your company--but they'll be happy when they have one. If you are engaged with your customer they won't be as likely to leave you for a one-night stand.

That is worth more than any tv ad, billboard or silly marketing campaign you could ever come up with.

11 August 2008

Free pizza and motor oil

Although those of us with marketing degrees hate to admit it, but marketing is often common sense. So, when you own a restaurant and someone starts an impromptu car show in front of it what does common sense tell you to do?

1. ignore them?
2. call the police to tell them to get out of your parking lot?
3. feed them some free samples in order to entice future customers?

If you guessed three then you understand the common sense approach to marketing. The problem is that it is easier when I give you three options to choose from.

But as you may have also guessed this comes from a real life example. A pizza place not far from my house has really great pizza. But any night of the week you can walk in and find the place empty. Tonight as I drove home from work and saw their parking lot I was surprised to find out there was an impromptu antique car show. Just a bunch of guys with cars showing them to admirers who drove by.

So with an embarrassment of riches, meaning lots of potential customers, sitting right in their laps what did the pizza place do? Nothing. No one at the pizza place had the initiative to score some new customers with samples of their pizza. Imagine the lost opportunity. Great pizza plus people who can't believe you were so gracious as to give them free slices equal new customers. Not only that, imagine where the next car show is! Also, imagine what they tell their friends and the people walking around the car show tell their friends.

Opportunities are lost every day. It takes more than chance to be successful. If only companies could seize those opportunities and not let them pass by they could be unbelievably successful. So, the next time opportunity presents itself don't let fear and too many questions keep you from getting answers.

08 August 2008

How newspapers can run themselves out of business

The geniuses are at it in Philly. The Philadelphia Inquirer has decided not to publish news first on the web. Nope, they want to save the sacred cow. They will instead hold stories until the paper hits your doorstep. Great idea!! You wouldn't want to try and compete with CNN, Yahoo, the local television stations and every media outlet in the world would you? Nah. That's too hard. Besides, they have a sacred cow to feed.

Anyone want to do a death poll? I give this strategy or the newspaper 6 months before they die or the person who came up with it is working for the Wilton Acorn. Don't they realize sacred cows die eventually?

If anything newspapers should be learning from their biggest mistake--not preparing for the internet fast enough. They let classifieds slip through their fingers and now many are woefully behind even the smallest startup companies.

It's a shame that some of the most historical companies in America will soon run themselves right out of business. I wonder if the Wilton Acorn is hiring.

The Netflix way

I wrote a few days ago about how Sony doesn't care about you or I because they just blast us with the same emails. Well they should take their lead from Netflix on how to send an email that shows just how important a customer you are to them.

I got another email from Netflix that asked what day my DVD arrived. First, it arrived within one day. So I happily selected the day. Netflix thanked me for my response and emphasized how important my response was to making their service better for people like me. It wasn't a marketing ploy to make more money for Netflix--it was to make their service better.

Memo to companies: Make a great product, include your customer in the process and you will be successful.

06 August 2008

Rock Star 101

Here is the dilemma. Your a rock star and you need to sell CDs. Remember those? The round plastic spinning things? Well those CDs actually make more money for a rock star than selling their songs on iTunes.

So, how does a rock star sell CDs when no one wants them anymore? Give them a one time code to download their entire album for the video games Rock Band and Guitar Hero (insert latest version here). And another incentive, those who buy the CD get an exclusive month or two where they are the only ones who can get your download.

Demand creates demand. Don't just sell-out.

05 August 2008

What you don't tell customers might kill you

I just got off the phone with a survey company. They were surveying me about my recent interaction with GM.

The amazing thing was how great my experience with GM was. I'm surprised too.

The story began with me emailing a few of their executives to complain about how my 2006 GMC Yukon was rusting. Yes, I was definitely surprised by that. I was even more surprised that GM's executive office called me a day later to talk about my problem. About two weeks later I was at a GM body shop getting my truck looked at by a GM engineer. Again, to my surprise my truck wasn't rusting apart--it was something called "rail rust" and was cleaned off with an acid wash (whatever that is). That night my truck looked brand new.

GM to the rescue right? Right. But who will know but me, my family, friends and the rest of you who might stumble upon this post? That's the problem.

So answer these questions:

How many of you ever heard of rail rust and that it is a common problem?
Did you know GM had an executive office that took complaints?
Did you know you could complain high enough up the food chain and get something fixed even if it wasn't under warranty?
Did you know that GM has good corporate customer service?

My guess is that you answered "no" to all of those questions. Again, that's the problem.

GM should pull a Jared and do some commercials not about how they are going to have an electric car in 2 years, but how they actually care about their customers.

People will care about companies who care about them.

04 August 2008

How not to remember customers

Today I received an email from Sony about buying a new Vaio computer. I bought one about 10 - 12 years ago when I was in college. Today Sony had a great pitch for me: "Be the best in class: Save on VAIO PC campus value packs." There might be a deal in there somewhere--but the fact that Sony still has me listed as a college student shows how poorly they manage their mailing list.

So how much does Sony care about me as a customer? Very little obviously.

02 August 2008

Common sense escapes the simpliest business opportunites

My wife was gone for a week which meant we weren't going to drive into the city together. It was the perfect time to take the train and save myself about $70 in five days--great deal right? In fact it was a great deal--but not without frustration.

Two out of five days I missed the train--and almost missed it a third day. I won't get into all the logistics of why I missed it (traffic, walking half-a-mile, etc.) but the most frustrating of them was simple: I couldn't get the machine to take my money and print the ticket fast enough. On another day it kept spitting my dime back at me. If a very nice person wasn't there to see this happening I wouldn't have been on the train at all.

So here is the question: why aren't there any ticket machines on the train itself? Nothing would take my level of stress away more than to have a machine on the train. I could get on and buy my ticket knowing that I won't miss the train and be late for work. I know there are reasons why... but there are simple solutions to those who would only pay if they were going to get caught without a ticket.

1. Perhaps their is only one car on the train that has a ticket machine--and its always the same car.
2. The onboard ticket machine only takes credit cards. The outside machines don't take credit cards--which leads to even less convenience. (When is the last time you carried around $4 in change?)

Just because you own a monopoly doesn't mean you can ignore the practical. I only ride the train when my wife is away--if the experience were better we might both ride together. But after, what I term, "hell week" I have no desire to rush right back into it.

This is one of those times where you just need to take yourself out of the business and put yourself in the shoes of the consumer. It's not always easy--but even if someone walked through the train and asked riders what they like/don't like they'd gain a wealth of knowledge.