Customer Retention

This is an article I wrote that appeared recently on Marketing Profs. 

The hottest trend in brand marketing right now is the very thing that has fueled traditional advertising’s ongoing evolution: Brands are bypassing traditional media outlets in favor of creating their own private media platforms. That’s right, brands are becoming the media.

Savvy marketers have realized that for the same price they once paid for a glossy ad or 30-second TV spot, they can now own their fully branded publication, video series, or interactive online platform.

Moreover, they’re providing the same high-quality and engaging content found in those third-party publications and broadcast outlets, offering it to mainstream audiences for free and, in essence, competing with those very outlets that used to serve their advertising needs.

Of course, as new media channels continue to emerge, audiences become more dispersed, creating an urgent need for brands to spread their efforts across channels to capture the attention of their target audiences.

That fact alone negates the logic once used to rationalize huge ad spends on single outlets or mediums. Knowing that marketers must find revolutionary methods of enticing customers and prospects to engage with their brands, what better method is there than for brands to simply become the media?

Cases in Point

That’s the theory, but exactly which brands are becoming the media? I Can’t Believe It’s Not Butter!, U.S. Wellness Meats, Nike, Gillette, Kikkoman, and hundreds of others.

Consider Unilever. Its new-media initiative for I Can’t Believe It’s Not Butter! features Spraychel—the brand’s animated mascot—and her adventures in the fridge.

Looking for a new way to generate buzz for the brand, Unilever created an innovative, entertaining brand experience that compelled consumers to spread the word through viral-marketing efforts.

Weekly webisodes and a “celebrity-esque” blog allow consumers to follow the storylines and deliver the latest gossip in the fridge. Moreover, viewers chime in to decide the outcome of upcoming webisodes. Unilever’s most-recent campaign is at VoteSpraychel.com.

When U.S. Wellness Meats—a producer and distributor of grass-fed animal meat—realized that current educational materials on grass-fed meats were not only diffuse but often inconsistent, unclear, and untrue, it took on the challenge of becoming a dependable educational source for those seeking reliable information on grass-fed meat.

Its audience comprises athletes, parents, doctors, and others concerned about the nutritional value of the food they consume. Thus, U.S. Wellness Meats overhauled USWellnessMeats.com, which was once a traditional e-commerce site, and turned it into a regularly updated destination site for those looking for facts on sustainable eating, the difference between grass-fed and grain-fed meats, and the health benefits of the company’s products.

Inspired by its customers’ passion for health and cooking, and the many communications it has received over the years, U.S. Wellness Meats uses its new platform to feature professional and home chefs, a Wellness blog, and Wellness Kids, among other features. Instead of relying on outside media to educate its consumers, U.S. Wellness Meats can do that on its own, knowing that the information is accurate.

Another consumer brand that understands content marketing is Kikkoman, famous for its soy sauce. To familiarize more consumers with the versatility of soy sauce, Kikkoman’s website has a Food Forum that has original recipes and serves as a resource center on Japanese cooking and culture.

Kikkoman has been running an innovative campaign around umami, or the fifth taste (the discovery of which recently celebrated its 100th anniversary).

The brand launched a commercial campaign on the Food Network and YouTube that introduces viewers to umami and presents various foods—including Kikkoman Soy Sauce—that evoke the fifth-taste sensation.

The commercial directs viewers to a micro-site www.DiscoverUmami.com to popularize the idea with customers by providing appealing and educational information, as well as more ways to use the product. The sell is subtle as the viewer gets deeper into the world of Kikkoman and Japanese-flavored recipes.

The New Rationale

People are more comfortable getting their news from multiple sources—a perfect environment for any business thinking about stepping in and becoming a trusted source of information.

And that’s the general logic: When your company educates its current and prospective clients on its field of expertise instead of pitching them products or services, it effectively becomes a reliable source of information and entertainment.

In other words, your company (or brand) becomes the media and is in a position to provide thought leadership and build customer affinity.

You’ve established your company as a trusted resource; as a result, your customer feels more confident buying from you, and you have increased your ability to measure results in terms of generating leads and creating incremental sales.

Though traditional advertising will always serve as a means of general awareness, private media channels encourage brand loyalty and affinity,   allowing companies to speak directly to their customers and prospects in a controlled environment.

Add a bit of good research to the equation and brands are able to create content that resonates specifically with the needs of various audiences and current customers, as well as content that supports permission-based marketing tactics that will woo their prospects.

Here’s the bottom line: When a company or brand becomes the media, it effectively creates a direct dialogue with customers that leads to a predetermined behavior and increased sales. Creating your own media channel also increases accountability and measurability, which is critical in today’s economic environment.

Do you have a mobile content strategy?  If not, it’s time to start thinking about it.  While social media has grabbed many of the recent headlines, the iPhone/smart phone phenomenon is picking up steam.   Apple is selling roughly five to six million handsets per quarter and it is estimated there are 20 million iPhones now in use, and it’s not hard to see that doubling in a year.  The App Store has delivered over 1 billions apps (paid and free) among the 25K-35K apps that have been released.  How many professionals do you know who don’t have an iPhone, Trio/Pre or Blackberry?  I am guessing not many.

I am an avid iPhone user and believe it is a transformational technology for media and content.  The speed, versatility and readability are amazing compared to where smart phones were in the pre-Apple era.  It has become a critical delivery platform for your “third place”.  This is anywhere that is not your office or home where you are likely to be sitting in front of a computer or TV screen.  Your third place could be a hotel, train, airport, coffee shop, waiting room etc.  No need to lug around a laptop or even a netbook because the iPhone can do it all, including hold all your games, music, pictures, videos and act as a GPS system.

If you are creating content you have to think about a mobile strategy.  For some that can mean optimizing your site for mobile browsing, but you need to take it a step further.  Leading brands such as the Wall Street Journal and the New York Times have created popular apps to push content.  A recent survey by the Audit Bureau of Circulation shows that media companies across the board are experimenting and planning apps of their own.  It is a great way to build a closer relationship with readers and gives you more interactive advertising opportunities to sell.

However, it is not just for traditional media.  You should also consider an app reader for your custom publications and original content you are creating for your web site, white paper/ebooks and blog.  It’s time to consider smart phones part of your private media channel along with social networking sites and traditional platforms of print, interactive and email marketing. 

In fact, any companies who rely on affinity/trust relationships with customers (i.e. online retailers for consumers and order tracking /supply chain for B2B) need to have a customer facing app.  Amazon has one that I have used and it extends my relationship with the retailer away from my desk. 

The strength of a private custom media channel is the ability to serve relevant content to customers on a platform they prefer so they are receptive to your message.  It is becoming clear that the smart phone platform is gaining favor at a rapid pace.  For many companies, a mobile content strategy can be a powerful customer retention tool.

Forrester just released their five year forecast for US Interactive Marketing and it is an interesting read.  Five year forecasts are always dicey in today’s new media world. How many people in 2004 predicted the most talked about politicians in 2009 would be Barack Obama and Sarah Palin?  Zero.  About the same amount of people in 2004 who predicted the country would come to a standstill to watch and follow Michael Jackson’s memorial on Face book and Twitter. 

However, the numbers confirm and quantify what most of us already know – the amount of dollars to be spent on interactive marketing are growing fast and taking share from traditional media.  Overall, search marketing will be the biggest component, and Mobile (27% CAGR) and Social Media (34% CAGR) will grow the fastest.  All of these media/technologies are game changers in terms of information/content consumption and marketing.  Anyone who has taken a spin around an iPhone can see just how radically our content consuming habits will change.  And, marketers must follow suit.

Here is a quote from Forrester’s Shar VanBoskrik’s blog:

But to me, the most interesting takeaway from the research is that overall advertising budgets will decline.  Yep.  With dollars moving out of traditional media toward less expensive and more efficient interactive tools, marketers will actually need less money to accomplish their current advertising goals.   But reasonable marketers won’t relinquish budget because their programs are running too efficiently. Instead, marketers will allocate unused advertising dollars into investments like innovation, research, customer service, customer experiences, and marketing-specific technology and IT staff, in order to further marketing’s strategic influence within their companies.

If I may add my two cents – this gives marketers and brands the opportunity to become the media.  By creating their own original content, brands can build trust and affinity with customers and prospects.  The budget and technology now exists for marketers to totally bypass traditional media and ad agencies and talk directly to customers.  Content is what will fuel search and social media, so the opportunity for companies to engage in content marketing has never been greater.  I may not be bold enough to predict what the marketing world will look like in 2014, but I do know one thing.  I would not invest in any traditional ad agencies any time soon.

Everybody is talking about social media but we hear less about measurement and analytics.  All good marketing must be measurable and provide tangible results for the sponsoring organization.  I recently contributed an article to the June/July issue of Chief Marketer where I explore the topic.  Below is the text of the article.  Let me know your thoughts and how you are measuring social media.

Measuring the Value of Online Fan Communities

The tangible — and intangible — results of participating in online communities

Sure, it makes sense for most businesses to follow their customers into the world of social media. But before doing so, they must have a firm grasp on how to measure the ROI of those ventures.

The first step is to create a strategy that dovetails with existing marketing plans and messaging. A company wants to be where its audience is living online, and that will often mean social networking sites such as Facebook and LinkedIn, and services like Twitter. Social media also means a corporate blog: If a firm does not have one, it is already behind the times.

For organizations, social media can serve as a private media channel that allows corporate control of the messaging. Social networks provide an excellent vehicle for pushing out content that supports marketers’ objectives, while social sites are great for spreading viral campaigns and word-of-mouth programs. Many companies are using social networks to recruit and invite prospects to Webcasts and live events, both of which are easily tracked by assigning unique URLs and codes.

There is little out-of-pocket cost associated with social media, aside from personnel costs. Even small firms can start a blog with shareware, and there is no cost to post a page or group on Facebook or LinkedIn.

But while the setup costs are low, a marketer needs to assign dedicated resources to manage the process and create and maintain the content. Someone in the organization needs to own the social media function for it to work successfully.

Work in progress

Initially, social media should be treated as both an experiment and a work in progress. Some trial and error is necessary to discover what works for each company and industry. One size does not fit all.

What constitutes the success of a social media campaign? Marketers are able to track relationships that were either created or enhanced by social sites or blogs. However, even before a prospect becomes a lead, there are ways to measure traffic and interaction with content.

To measure the ROI of new media, the media must in fact be measurable. Fortunately, the various social media are. The majority of social media platforms offer:
 

Quantitative data

Marketers can gauge success by the number of page views received, responses/comments, content downloaded/embedded, number of shares, RSS feed subscriptions, sign-ups and much more. These numbers offer indications of how well strategies are driving traffic and facilitating interaction with prospects.

Qualitative measurements

Hard data doesn’t do justice to measuring abstract returns such as an improved corporate reputation, reducing the ratio of negative/positive relationships in the online world, customer retention, strengthening of B-to-B or B-to-C relationships, increased direct dialogue with target audiences, and so forth. While it is hard to put a number on these measures, they are important outcomes of social media strategies.

Business value

In a down economy, dwindling budgets make low-cost social media campaigns a popular choice. According to an Online Marketing Summit presentation by Michael Weisfeld, senior Web strategist at BusinessOnLine, “Only 14% of people trust ads, whereas 32% trust bloggers’ opinions on products and services.” Social media offer a great way to get a direct connection with marketers’ audiences. Best of all, a single well-crafted effort can expand exponentially.

Can social media really lead to sales? Yes, according to research conducted among IT decision makers by IDG Connect. IDG found that social content is a significant decision-making factor within the IT investment process. According to their research, buying teams are using social content for educational purposes more than transactional content.

The big finding is that when a vendor is presented in a positive light in the social space, the likelihood of its offerings being purchased increase. Conversely, negative social exposure makes sales more difficult.

While that’s all true, one critical element of social media cannot be easily quantified: the quality of interaction between people. The blending of business and personal on social sites gives marketers an opportunity to get to know business partners in a different light and deepen personal bonds.

So while metrics are important, never discount the intangible, positive factor of human interaction. Social media allow us to get personally closer to our prospects and customers than ever before. 
 
 

© 2008 Penton Media, Inc. All rights reserved.

Question: Has your sales and marketing tactics changed radically over the past five years?  Not to over hype it, but the second half of this decade has brought changes in media consumption that rivals the introduction of the printing press and television.  You need to keep your customer’s behavior in mind when deciding which marketing and sales tactics to use in light of the dramatic changes.

Five years ago no one had yet heard of YouTube, Hulu, Face book or Twitter.  Reality TV now dominates the ratings as Andy Warhol’s prediction of instant fame actually came true.  Public Wi Fi is everywhere and Google is now a verb.  The new generation of smart phones would amaze James Bond.  DVRs  and IPODs have completely changed the concept of consuming and buying entertainment.  When it comes to content, the influence of bloggers in politics, sports and entertainment often drive the media narrative with the mainstream media chasing. 

Major newspapers like the Boston Globe are a dying business model.  Network TV viewership is at an all time low and the level of creativity is even lower – how many crime shows do we need?  Magazine are shrinking and trying to reinvent themselves like Newsweek, Playboy and Reader’s Digest.  The B2B trade press is migrating from print to online content, web casts and virtual trade shows.

Thanks to advances in technology, the balance of power has shifted from media to consumer and that changes everything for marketers.  Have you adjusted your marketing plans to take advantage of these changes or are you maintaining the status quo?

Here are ten burning questions you need to ask yourself now:

1. Are you conducting or finding research to understand how your customers are consuming media? 

2. Does this research tell you the information needs of your customers and prospects?

3. Are you still renting expensive ad space in print and TV with the majority your budget? 

4. Are your producing original content and owning your own media channel to create an interactive dialog with your customers?

5. Is your company using original content to become a trusted media brand?

6. Are you creating passion and communities among your customers?

7. Do you make an effort to balance your retention and acquisition efforts, or are you over investing in lead generation?

8. Do you have a defined social media strategy to engage with customers and prospects where they are spending more and more time?

9. Are you personally engaged with Linked In, Face Book and Twitter to find prospects and talk to your customers?

10. Do you have measurement metrics in place for all of your marketing and sales tactics?

Think about your honest answers to these questions and take stock of where you are with both your company and career.  It is easy for mid career professionals to write these changes off as a passing fad or “for kids”.  That is probably what they there thinking at the Boston Globe and Newsweek just a few years ago.  We are in the midst of big time changes across the spectrum of politics, economics and media consumption.  The companies that adopt swiftly will thrive over the next decade. 

During last few weeks I have noticed a ratcheting up of inbound direct mail (postal and email) coming to me from companies that I had bought from in the past.  It ranged from Lowes and the Sunglass Hut sending me $50 off coupons for purchases over $200 to Omaha Steaks and 1800 Flowers emailing me great deals for Mothers and Fathers Day. 

Marketing to current or past customers is always smart, but even smarter during a recession.  Acquiring new customers can be a very expensive but necessary operation.  When funds are tight nimble companies tweak the balance between retention and acquisition.  By mining your customer database you can target past customers who will be more receptive to your messages.  Keep in mind most consumers are cutting back and trying to spend wiser.  A good deal from a familiar voice can get them to open their wallets.  It is always easier to convince someone to buy again rather than for the first time. 

Customer retention is even more powerful when paired with content marketing to build stronger relationships with customers who will see you as a trusted information resource.  This content can take the shape of custom magazines or magalogs, newsletters or webcasts.  Even face to face events for current customers could deliver a solid return.

How are you balancing your acquisition and retention efforts?  Do your customers see you as a trusted source of information or just someone trying to sell them something?

A content rich custom media customer retention program may be your best bet during trying economic times.

The job of a marketer has probably never been more complicated with all the choices and options we have to communicate our messages for lead generation and customer retention.  The advent of new web tools and social media has made keeping up a full time job.  Our friend Joe Pulizzi at Junta42 has done a great job of compiling all the tools you need to know about in the areas of custom media, social networking, interactive conversations, Facebook and Twitter tools, content sharing, blogging, back end operation and of course, measurement.

Take a look at the list and let us know if you have any gems to add.   Personally, I have found the ability to share information with peers one of the best benefits of social media. Later this week I’ll let you know who I follow via Twitter to keep up with the daily changes in our world.  Happy reading.

Two sets of numbers recently came across my screen that illustrates the wrenching changes in media and marketing.  MIN Online has released 2009 first half numbers for monthly magazines and it is ugly.  Yes, we are in a tough recession, but these steep drops are more about the decline and fall of print advertising supported media.  Here is a snippet of the carnage as reported by MediaPost News:

The losses were widespread, with only eight out of the 118 titles tracked by MIN showing an increase in ad pages.  Among women’s lifestyle titles, Allure, Lucky, Vogue and W are all down over 30%. Auto and enthusiast titles (mostly targeting men) are sharply down, with drops of over 30% at Power & Motoryacht, Boating, Automobile, Motor Trend and Road & Track, Details, Maxim and GQ are also down over 30%, as are music monthlies Spin and Vibe and food titles Gourmet and Bon Appetit.

The brands mentioned above were formally profit generating powerhouses in lucrative categories.  The bulk of these pages are not coming back after the recession nor are closed newspapers going to spring back to life.  The ad market is undergoing a structural change.  Print is caught is a vise – readers have moved on to online media (more about that soon) and marketers are looking for measurable results that drive sales.  It is hard to make that case with a $50,000 branding ad in a monthly glossy magazine.

At the same time social media is on fire.  Facebook is now getting 300 million unique visitors per month, a 160% increase from a year ago.  This April, Twitter received 32 million world wide uniques, up 70% in a month!  MySpace has been flat at 123 million uniques per month while Facebook and Twitter grow unabated.  MySpace is going to end up the Netscape Navigator of its time. 

Since there are still only 24 hours in a day, something must be suffering with people spending all that time with social media.  Spring 2009 MRI readership shows a significant decline in magazine readership in the past year.

This has huge implications for marketers as they decide on their strategies for coming out of this economic downturn.  Reaching customers and prospects the old fashion way, is well, old fashion.  More than ever, it is imperative for marketers to turn to content market, storytelling and private media channels for measurable results.  And, now is the time to harness the power of social media.   Tweet now or forever hold your peace.

In my post a couple of weeks ago, I wrote about entering the Jim Beam Remake contest, where users submitted their original parodies and remakes of the new Jim Beam commercials.  

A few days ago, as I arrived home in the evening, I noticed a large envelope poking out of my mailbox. It didn’t have a return address. My boyfriend and I were so curious as to its contents, we ripped it open before we even got inside.

Inside were a Jim Beam t-shirt and a letter from the director of whiskeys, thanking the participants for sending in their videos. I was sincerely impressed by how classy and sincere the letter was. It seemed this person and her team had truly enjoyed watching the hundreds of video entries. She even stated she would do it all again, and hopes we would too.

In my post a year ago about Anton’s Cleaners , I talked about how customer retention works when companies let their customers know they care. It doesn’t need to be big, it doesn’t need to be expensive, but it needs to be personal.

To be honest, I’ve never had an ounce of whiskey or bourbon. But after having such intense brand interaction with Jim Beam, there is no way the Jim Beam brand won’t be at the forefront of my mind the next time I go into a liquor store to stock up for a party or to buy a bottle of liquor for a friend. And the next-best thing to going to bed with a bottle of liquor cradled in your arms is going to bed with a nightgown-sized 2XL t-shirt from Jim Beam. 

Twitter is turning into a full fledged cultural phenomenon.  Former underwear model and cougar lover Ashton Kutcher is now over 1 million followers and Oprah and Howard Stern have joined the fray.  The New England Patriots tweeted their NFL draft picks this past weekend.  There are no shortage of so called social media experts and consultants publishing lists and posts on how to use Twitter, how to make money with Twitter, Twitter etiquette, etc.  The hype is reaching a fever pitch and a lot of it seems to be marketing people talking to each other.

Here is the fundamental thing we all need to keep in mind about Twitter – it is a media channel to talk to people directly without the filter or expense of a media brand or company.  That’s it folks, nothing more, nothing less.  That being said, we are big fans of owning your own media channel, so Twitter can and should become another aspect of your private media strategy for customers and prospects.

Twitter is a great vehicle for pushing out content to a specialized list of people, and I will distribute this blog to my “followers”.  Please go here if you want to follow me.  Whether you are a B2C or B2B company Twitter is an effective way to engage in an interactive dialog with your customers.  I follow lot of journalists and research companies to keep tabs on them without having to go to their sites directly.   It is smart for your executives to have a presence and be able to get feedback from customers and create a relationship with them.  Stronger personal bonds mean stronger sales for your company. Twitter is a no brainer when thinking about customer retention.  Smart and judicious use of this media channel can be a low cost way to drive sales from existing customers and give your content a broader audience.  For a great example, check out what Dell Outlet is doing to engage customers.

On the flip side, given the 140 character limit, it is much harder to mix business and personal as you can with Facebook.  Many keep Twitter mostly business, and that seems to be the general milieu.   Some people link their Facebook status update and Tweets so they are in sync.  I don’t like this because you should customize your message to your audience and environment, but it seems to be a growing trend.  Additionally, you can wear people out with over posting and will no doubt lose followers.

Twitter has reached the critical mass where it can’t be ignored by marketers, so embrace it as a free private media channel while it lasts.  Give it a shot, talking to your customers is always a good thing, especially when they can talk or tweet back.  Or better yet, buy something.

I was on vacation in Arizona when my friend Sara, a comedy writer and fellow comedian, sent me an email.

“DO THIS WITH ME,” it read, with a link to the Jim Beam website.

Jim Beam’s recent advertising campaign, shown ad nauseum on TBS during Celtics games, flashed through my head. They wanted users to create and submit their own videos, either inspired by or a parody of, the commercials. Sara was going to write a script in which I would get to parody the gorgeous girl who says she likes her man “a little bit hairy.”
I slammed back the remainder of my ice tea and replied, “Hell yes!” 

For comedians and humor appreciators of all persuasions, sites like Funnyordie.com and CollegeHumor.com are becoming an increasingly popular place to watch video creativity in action. It’s like an oasis of laughter in a web crowded with depressing political commentary sites and stay-at-home mom blogs. Besides being a great way to get exposure, it’s also a way to connect people across the country. And lately, corporate America has been starting to use user generated media to their advantage, too.

From Ragu’s “Great American Family” contest to the Brooks running shoe contest, companies are saying to their customers, “Hey! We value you! Come be a part of this with us! It’s fun!” On our commercial parody production team, we studied the original commercials, talked about effective ways to represent the Jim Beam brand, and forced our friends and families to watch the submissions as they rolled in. What better way for a company to build community, engender brand loyalty and market virally, all at one time? Customer retention happens when you make your customers feel like a part of your brand. And if you listen close enough, what your customers are saying can probably help you move in the right direction in the future.

It’s working for Jim Beam. They had hundreds upon hundreds of video submissions, ranging from brilliant to disturbed. (To the man whose cat inexplicably ate his wig during the video—I just want you to know your lingerie was really classy.) One guy even built a Facebook Fan page to advertise that he had entered the contest. Talk about word-of-mouth and social media in action! 

And as for our submission…well, we didn’t make it to the finals. Maybe it was because my character barfed into her purse. Maybe it was the mature lady mud wrestling. We’ll never know. But I do know that next time I throw a party, I’m buying some Jim Beam.

Magalogs – catalogs that include elements of both editorial content and story-telling through design – help traditional catalogers build brand affinity and connections with their customers. To see an example, click here for a magalog King Fish created for PC Connection aimed at their small business customers.  Retailers are recognizing the benefits of this approach, and are morphing their print to better serve customers, showcasing products in far more engaging environments. And to further demonstrate effectiveness, magalogs are also becoming digital versions, where customer shopping, referral behavior and site interaction is measured for true return on investment. Savvy marketers are starting to use this platform – and there is no reason not to – all retailers should. Build affinity, enhance shopper experience, and track results. That’s a recipe for job security.

They key to a successful magalog is producing the project with a team of creative and marketing-types that understand how to incorporate the elements that result in measurement and increased affinity. There are several applications that improve both measurement and sell-through, so be sure your content provider has a solid knowledge in these areas. A media investment should be accountable and measurable, and when executed properly, magalogs can be at the top of the ROI food chain.

GM and Chrysler have presented business plans to the government in return for more bailout cash.  I don’t know if a new ad/marketing strategy is in the mix, but here is a take on what they are doing wrong and how to fix it.  Click here to read part I.

1. The auto makers over use rented media channels with interruption style advertising, and the basic auto ad has not changed in 50 years. The ads show the car being used by one of their stock cliché characters – the executive, the harried mom, the twenty something on the go, the tough guy truck owner, the hapless suburban dad, etc.  The ads are slices of life showing our heroes using the product.  This is ineffective because there is much waste; and the creative is boring and unmemorable. The auto companies are big at buying sponsorships that just slaps their name on anything and everything.  Chevrolet spends big bucks to sponsor the “player of the game” during televised college footballs games.  Why do they do this?  Awareness?  How many men watching football have not heard of Chevy?  I am sure it makes the Chevy execs happy, but has it ever sold a single car or truck?  In fact, has anyone ever bought a car based on a TV ad?

2. American car companies sell with price, price and price.  The ads always stress the price cut or financing incentive.  If you train consumers to wait for the deal you will never get full price.  That is a problem when your union contracts give you a $2000/per car disadvantage against the Japanese automakers.  They need to stop the addiction to price selling and sell value.  They are two different marketing messages.

3. All the auto companies are out of balance when it comes to customer acquisition and retention marketing efforts.  The majority of the marketing budgets are aimed at convincing new customers to buy their cars while they give lip service to customer retention.  Some of the manufacturers have custom magazines for their owners but they seem half-hearted.  I used to get a magazine from Acura and it was full of underwhelming content.  This year I leased a Mercedes and bought a Honda Accord and the follow up communication from both brands and been almost non-existent.  I have received a few weak emails that are selling me accessories and their overpriced service.

It would be more efficient to create long term customers rather than trying to sell new customers over and over.  This is an area where I would suggest the biggest changes for the auto companies.  They should peel off some the budget they are shoveling at TV to create private media channels to talk directly to their current customers to create a long term relationship.  This private media channel needs to have high quality original content from subject matter experts and great writers.  They need to create a real relationship based on affinity and trust with their customers, not just send them a magazine with travel articles and offers to buy floor mats, mugs and logoed junk.  In addition, try working in some new media – interactive webcasts for owners to get more from their car, and social media to connect owners and build community.

4. I would suggest more live test drive events where people can get inside a car and try it out.  It is a better experience without a sales guy breathing down your neck asking “how much do you want to pay per month”.   I went to a Mercedes test drive event about six years ago and decided on that day I would someday own a fine German auto.  In the time since that event Mercedes has probably hit me with a few millions dollars worth of rented media ads via magazines, newspapers, television, radio and billboards.  All those ads combined didn’t have a fraction of impact of the afternoon I spent getting to touch and feel the product and have a direct educational dialog the company.  On that day they built a level of trust and affinity with me that no traditional ad could ever duplicate. 

The bottom line:  They need to stop renting media and own their own media channel.

GM is back in the news asking for more loans and giving the government its plan.  President Obama doesn’t seem like he has much sympathy for their history of bumbling and mismanagement.  Neither does the public, Gallup just released new data that says 72% of Americans are against giving GM and Chrysler additional bailout money.  The sentiment is broad based across all demo groups. If the economy was good, I could see Obama saying no to more taxpayer money.  However, given the delicate state of the economy, the President is giving them a shot at redemption.  You could fill a book shelf with the collective mistakes of both management and the UAW, but I’ll focus on marketing and illustrate how the US auto companies, particularly GM is stuck deep the world of old media.

One of the most memorable experiences of my career was an attempt to sell auto advertising into PC Magazine in the late 90’s.  I was PC Magazine’s marketing director, and King Fish President Cam Brown was then the Associate Publisher.  We made it our personal mission to break the category so off to Detroit we went.  PC Mag had great demos of high income male gadget/tech geeks who loved the magazine and spent two hours reading each issue.  This was the perfect audience for Detroit and back then we had nearly 7 million readers and a circ of 1.2 million.  However, we were lucky to get 15 minute meetings with young and clueless media planners who only cared about two things. The pubs ranking in syndicated research and how much merchandising they could squeeze out of your book.  And, they made it clear that it was very hard to get on a plan if you were not already getting space. 

It is hard to do justice to what a bizarre world it was, not to mention that the depressing city revolved around keeping things exactly the same.  The media planners couldn’t get over the “environment” of PC Magazine.  They were running ads in every special interest pub measured in the JD Power study but they could not wrap their heads around the idea of their unimaginative ads appearing next to a technology review.  We could almost never get by that hurdle.  We did sell a few programs (Jeep, Ford) but more often than not, no one was interested in even exploring a new idea.

When driving around the Troy/Detroit metro area you could sense that one day the jig would be up and the whole system would come crashing down.  They were spending hand over fist for print and TV advertising to promote uninspired cars that people didn’t want to buy.  While at the same time they were overpaying everyone involved and locking themselves into insane union contracts that make GM more of a healthcare provider than car manufacturer.

Take a look at the latest research I could find on eMarketer from this summer.  We are in the new media age and GM has barely changed their spending mix.  Interactive spending is up, but still a fraction of TV. The vast majority goes to the rented media channels of broadcast and print.  It is common knowledge that most people start their auto shopping online, yet the overwhelming majority of their spending is on television.  The government is going to ask them to change some of their business practices in return for bailout money.  Maybe Mr. Obama will come across this blog on his BlackBerry so in part II I’ll have the audacity to tell GM what they are doing wrong and to fix it.

America’s Top Marketer’s Report Their Goals Have Changed

This might have been a street hawker’s cry five year’s ago, but earlier this week, it was proclaimed matter-of-factly by nearly all honorees at BtoB’s Best Luncheon in New York. The event was well attended by senior marketers who were there to hear each of the 11 nominees for marketer of the year.  One of the highlights was a panel of marketing executives who gave their observations and communication strategies for next year and beyond.  You can read more about the event here, and some analysis of the comments here.  For those of us in the room, the theme was profoundly consistent: the brand war is over, and efficient, customer-based communication rules. Some excerpts from the nominees, in their words.

“We are seeing high return on live seminars and panels.” – Oracle

“White Papers and product information are the key for customer engagements.” – Siemens 

“We are focusing on a shortening in our time to customer relationships” and “I see convergence media and building content as our focus.” – Kodak

“We are shifting to one-on-one marketing.” – Xerox

“We are generating more content to help business owners do business better,” and “Our small business focus is shifting to value-based marketing.” - American Express

These are direct comments from large B2B companies who have seen the future – and that future is relationship marketing and metrics to measure their success. Companies that once focused on broad reach media and enormous sponsorship marketing budgets are now working to create the own media channels. These leading companies are taking an active role in creating the content their customers receive, and are part of the process of delivering content they know is most relevant to their customer’s needs.  In effect, they are creating their own private custom media channels.

When top marketing leader’s share with each other as opposed to hiding their top strategies, the shift has already happened. Don’t ride the old school marketing approach of broad reach & branding into the sunset. It is no longer an option to throw marketing investment at media channels featuring no measurability. Re-evaluate your 2009 media strategies now, and work to gain relevance with your customers and mind-share with your best prospects. In this case, following the leaders is the boldest approach.

I am sure that by now you have perfected your “about me” and “profile” pages on all of your social networks.  You have opened yourself to networking outside of your known circle and you are sending personal notes when you extend or accept invitation.  Your network of contacts has grown from hundreds to thousands of business professionals.

During this process you may have noticed that a large number of both corporate and private recruiters are looking to connect.  Recruiters are by nature active networkers.  They understand that they may meet the next great hire directly or indirectly through their network. Recruiters are experts at turning their contacts in leads.

So how do you do this?  I recommend three easy steps:

1.  Open a conversation with each of your contacts.  As I previously mentioned I respond to each invitation with a personal message.  I do have a form message that I personalize based on the profile of the individual.  I do the same with invitations.  I share what I do and what I am looking for.  I always ask for the business.  I am networking to grown my business.

2. Have “free” items available.  White papers, links to your blogs or anything that will share your expertise with the potential lead.  This is a validation process for them.

3. Set telephone calls to follow up individually.  I may spend 4-5 hours a week networking on line, but I spend an additional 8-9 hours in follow up calls and sending out information to prospective clients.

LinkedIn has added discussion functions to each of its groups.  You can send out a question or even a specific job request to the group.  This is also an excellent place for you to answer questions and position yourself as the expert in a specific area.  If in responding to a question you see an opportunity to ask for the business I often choose a “private reply” versus and open posting.  This allows me to contact the individual directly and share with them the benefits of my company and how I can assist them with their specific question or need.

Ready to jump offline and add an in person social networking option?  I recommend BNI . BNI offers everyone an opportunity to grow their business through referrals.  I use BNI to supplement by Facebook and LinkedIn communities and increase my local area leads.

Careful feeding, watering and farming of your contacts can turn your social network contacts in leads and revenue for your business. 

It now seems clear that we are heading into rough waters next year.  You can see the slowdown everywhere.  It will be interesting to watch how marketers respond to the challenge.  Some will overreact, shut things down and go dark to save money.  Yes, you will save money, but you are also sending a signal to prospects, customers and competitors that you are nervous and perhaps a company that will not be around for the long haul.  Other companies will just continue bad habits like overspending on “branding” and expensive, hard to measure ads in rented media such as broadcast television and print.  However, I think the smart companies will be opportunistic by mining their most valuable asset – their customer database.

This is a great time to talk to your customers with your own private media channel and accomplish two important objectives.  First, you can firm up their support and make sure they have a strong affinity for your company, and won’t be swayed to leave for a cheaper product or service.   More importantly, it is an opportunity to earn incremental revenue from a group of people who you have already acquired and sold as customers.  Now it is time to reap the reward of the investment you made to make that person a customer. 

This week I received a mailing at home from a company who does a great job of cultivating their customer base – Lowe’s – the home improvement store.  As a homeowner I am a pretty regular customer, and I prefer it to Home Depot, mainly because of the customer service and nicer atmosphere of the stores.  Recently I bought a storm door and had Lowe’s installed it for me since I am completely useless in that area.  I must have received 10 calls from Lowes and the contractor they hired to set up the appointment, thank me for the purchase and make sure I was satisfied with the installation job.  I was pretty impressed, and it left me with a great experience and strong affinity towards Lowe’s.

The mailing I received was sent to current customers and had two main messages.  One was to send two gift cards – one for $10 off a $50 purchase and the other was $25 off of a $250 purchase.  They called them “Project Starters” which is an excellent idea. The cards are a great method to give someone the motivation to get into a store and spend money with Lowe’s.  The other message was near and dear to my heart.  It was an offer to subscribe to one of three custom media magazine’s that Lowe’s produces for customers.  They gave a web address and an 800 number to subscribe and see back issues on the site.

Lowe’s is doing a great job of creating a content based private media channel to retain and market to their customer base.  When you combine that effort with superior customer service, you have a company that will do fine even during a housing and economic downturn.  I wonder how many companies will follow Lowe’s down the Private Media path of content marketing.  It is much harder than just going dark or the status quo, but the payoff is significantly greater.  There is opportunity in chaos and the companies who are smart in 2009 will emerge even stronger for the recovery.

Do you remember when you were a kid and you picked your cereal based upon the toy in the box?  Remember deliberating as you walked down the very small aisle which had a reasonable amount of cereals from which to choose? Remember getting home and sticking your hand in a brand new full box of some sugary crunchies to fish out a plastic item that your mom always hoped you didn’t eat accidentally?  The toy wasn’t usually that interesting in the end game but it still persuaded you to make a brand decision. 

Things have changed in the cereal aisle and elsewhere when it comes to marketing to our kids.  First of all the cereal aisle is twice as long and has infinitely more choices.  Secondly the stakes are higher:  it’s no longer a toy, it’s an online game. Moreover, it’s not just the cereal aisle that has fun incentives and those toys are not just for kids anymore!

Welcome to Advergaming! According to Wikipedia: 

“Advergaming is the practice of using video games to advertise a product, organization or viewpoint. The term “advergames” was coined in January 2000 by Anthony Giallourakis who purchased the domain names Advergames.com along with Adverplay.com. The term Advergames was later mentioned by Wired’s “Jargon Watch” column in 2001, and has been applied to various free online games commissioned by major companies.”

I won’t blog about the whole history of the concept, suffice to say it’s been here since the beginning of this century and even if you haven’t been exposed it is likely that your kids have.  My kids love Webkinz.  “Webkinz are stuffed animals that were originally released by the Ganz company on April 29, 2005. The toys are similar to many other small plush toys. However, each Webkinz toy has an attached tag with a unique “Secret Code” printed on it that allows access to the “Webkinz World” website. On Webkinz World, the Secret Code allows the user to own a virtual version of the pet for virtual interaction.”  Webkinz are the perfect example of brand interaction but not necessarily designed to be “advertising”, more the point of the pet is to experience the virtual reality of the pet.  But whatever you call it, my kids are playing with a brand for hours if I would let them.  (Please don’t let Webkinz come out with a cereal!)

Similarly many marketers from Pepsi to McDonalds, Fruit Loops to Chips Ahoy have developed fun online games that are a true band “experience”.  The gaming world has been growing at warp speed since Pong hit the screen in the 1972.  According to a new survey from the Pew Internet & American Life Project, “97 percent of children and teenagers ages 12 to 17 claim to have played some kind of video game, with 99 percent of boys and 94 percent of girls saying they play games.”  Given the ability of kids, and those even the younger than tweens and teens, to navigate a variety of interfaces, it is no surprise that advertisers would jump at the chance to make branding fun.

It’s virtually impossible to find a brand who doesn’t have virtual fun associated with its products.  And don’t be deceived that play time is just for kids anymore.  Adidas, Fidelity, Toyota, Volkswagen, Stride Gum have all developed advergames.  Even Pfizer is promoting Viagra via it’s own targeted advergame.  Begging the question, are you really serious?  Grown men interacting with little blue pills on line.  What will they think of next? 
There is no doubt that advergaming is attractive to many consumers out there.  It makes sense because the goal of many advertisers is to get the target audience to spend more time with the brand, increase preference and loyalty.  This online fun allows marketers to develop their own private custom media channel and continue to restate their unique brand proposition but in a subtle and subliminal sort of way.  Imagine, finding a way to have your target market watch a channel that only ran your marketing messages and nothing else.  What would you pay for that kind of play time?

I recently contributed another article to Chief Marketer on the topic of face to face events.  Specifically it explains how to use events as a lead generation and lead nurturing tool.  While working for several media companies I had responsibility for publication branded events and custom events.  One thing I learned is when using events as lead gen tool it is critical to scale your event (and budget) to the anticipated return.  Many people do think of live events as custom media, but they can be very powerful tools as part of a private custom media solution.  Click here to read the article. 

This year’s Digital Hollywood conference in Los Angeles has been shedding light on the significant challenges marketers face as they try to lasso prospects online. By and large, the panelists have been candid about the immaturity of this medium, but have been unified in their belief that traditional advertising is waning, and providing prospects with meaningful online experiences is the cost of entry.

The panelists, most of which carried senior executive titles, provided sound bites that had me in complete agreement. Here is a sample.

During a session entitled: The Web, Social Media and Advertising: Transforming and Disassembling the World of Traditional Media and Communications, Matt Rosenberg, Group Director, Organic said that to be successful, “Brands are immersing themselves in the content experience…you need to let your brand take a backseat.” I absolutely agree, and that is a core strategy at King Fish Media, where our job is to help clients engage with prospects and clients on a far more meaningful level than brand advertising offers.

Recommended contacts who spoke at this panel:

Raquel Krouse, VP Social Media, Interpublic Emerging Media Lab
Matt Rosenberg, Group Director, Organic
Mark Lewis, Strategic Planning Director, DDB San Francisco

The next session, Bridging TV and Broadband: Strategic Relationships – Advertising, Technology and Content, took the full customer immersion concept to a different level. A senior executive from the Home Shopping Network candidly evaluated her brand, and said that the universal knowledge of her brand allowed for movement into new media platforms (Interactive TV and .TV), saying, “People at the company worried about these platforms, but with the huge brand loyalty, they go wherever the brand goes and build communities there.” We, at King Fish, describe this phenomenon as owning, not renting your own media channel – Private Media.

Recommended contacts from this panel:

Jeff Miller, President and CEO, ICTV
Fred McIntyre, SVP, AOL Video

On a separate note, I hope to never again hear these words as much as I have during the last three days: “paradigm” (thought we were done with that), “frictionless”, “zero sum game”, “net loser” and “value proposition”.

During each of these sessions, I heard frequent confirmation that intent-based vs. interruption-based communications is the most effective means for clients to communicate with their prospects and customers; custom media provides the single strongest venue to effectively achieve success with this effort.

I recently came across some interesting brand loyalty research.  This article from Chief Marketer  refers to a study done by Brand Keys that looks at a “Customer Loyalty Engagement Index”. In a nutshell the findings suggest customer loyalty greatly increases when products and services are customized to the consumer.  This makes perfect sense, as customization is becoming more critical to marketers as product differentiation is becoming hard to come by these days.  It is a testament to world wide engineering and manufacturing skills that most products sold in the US today are made very well.  Since most competitive products do the same thing reasonable well, the ability to customize for a specific buyer has become an attractive product attribute.

The two factors driving the age of customization are the same ones that are driving the move to private media channels and content marketing.  An advance in technology and web adoption has made ordering customized products or consuming custom content real and easy to do.  However, the biggest factor is that consumers have the power and are in control of their choices.  The web has empowered consumers to shop and/or gather information across the globe.  It also plays into the consumer’s mindset – they would much rather have something created just for them instead of the same product purchased by the guy down the street.

You can see how this can apply to your marketing choices – if you send your customers content that has been customized for them, you will increase your chances of building a relationship of affinity, trust and loyalty.  Many companies are missing a golden opportunity to build a stronger relationship with their customers by not communicating with them in a customized private custom media venue.  How many companies are still relying on mass market bulk mailings to talk to their customers if they talk to them at all?  The technology exists where you can mine your database to know a customer’s interests and tastes; why not send them content and marketing messages that are customized for them instead of a generic catalog or email?  Or even worse, do think you are hitting your current customers with a mass media ad that is focused at prospects?  Marketers are required to evaluate their customer communications in light of changes in the way people desire and consume information. 

We are in the age of customization, and savvy marketers don’t want to be sending yesterday’s news to tomorrow’s customers.

Last week I wrote about Starbuck’s attempt to reach out to customers and prospects for constructive feedback and new product ideas.  In Tuesday’s Boston Globe they ran an insert (with attached card, see below) that made the following offer: Come in to Starbucks on Wednesday’s for the next six weeks, and receive a free tall Pike Place Roast coffee.  Pike Place Roast is their new smoother blend that was requested by many of the suggestions on the site.  It is a great tactic to use custom media to get new and lapsed customers into stores and try their new coffee.  I have to believe this promotion was focused at people like me who prefer the taste of Dunkin Donuts and do not regularly shop at Starbucks. Six weeks of free coffee can get someone hooked and make a stop at Starbucks part of their regular routine.  Most importantly, it gets the product into people’s hands.  All the “branding” and expensive TV ads in the world can’t guarantee that.

In the interest of marketing science I went to my local Starbucks yesterday morning to test their offer and taste the new blend.  It was the typical Starbucks experience with lots of earnest, serious people sitting around with no particular place to go at 8:30am on a week day.  I strode up to the baristas and ordered my tall Pike Place Roast and flashed my card.  I guess the card identified me a newbie since my barista felt compelled to thoughtfully point out that “tall” means “small”.  It was probably the best coffee I ever had at Starbucks, not as good as Dunkin Donuts, but much improved. 

It is interesting to see their private media channel come full circle from soliciting advice from their customers to putting a program in place to put their words into action.  I will give it a shot the next few weeks and let them try and convert me.  Maybe some day I will actually know what Venti means.

Starbucks has been getting beaten up this year and faces tough competition from Dunkin Donuts. Even McDonalds is taking a run at them.  One of the ways they chose to respond is a great lesson in listening to your customer and embracing a private custom media channel.  For many companies the knee jerk, old school reaction would have been to launch a “branding” campaign or hire a celebrity pitch person.  Instead Starbucks did something very cool – they launched My Starbucks Idea web site.  The purpose of the site is to ask their loyal customers what they could do to improve the product and service.  I would encourage you to go to the site and read the both the volume and passion of the responses.  The site is powered by salesforce.com and they did a similar site for Dell.  Interesting, Dell and Starbucks have a lot in common – both were innovative companies who used to be the fresh up-and-comers, and once they got too big; they lost touch with what made them great.

I commend both companies for creating a private media channel to have a two way dialog with their customers.  This kind of forum gives customers a place to vent, and make suggestion.  Read through some of them – they are not only thoughtful, but smart.  A lot of companies give lip service to listening to their customer, but how many actually do and act on it?  More than ever, people in the executive suite are isolated from their customers, where they are a long way from their middle class American customers and prospects.  Also, since they only talk to other execs, they get caught in an infinite loop of their own B.S.  How many meetings have you been in where sales and marketing people sit around pitching each other and not taking in outside information?  Happens all the time and the result: the ads we see on TV and in magazines are completely off target.

What I really like about the site is the “Ideas in Action” section where Starbuck employees respond in their own words and tell customers what action they will take based on customer suggestions.  This is powerful because many times when you write to a web site, you get an automated response which is sometimes worse than getting none at all.  I have to admit I have never been a big Starbucks fan – the coffee is too harsh and I can’t stand the ordering process.  It was fun to see that many others feel the way I do.  As a result, they are introducing a “smoother” coffee and talking about an express line for impatient people like me who just want a regular coffee; and don’t want to stand behind a line of people ordering complicated permutations of coffee beans, milk (cow or soy) and odd flavors.

Now, let’s see if they take this process one step further.  They have collected scores of contact names and been given the “permission” to talk to them about Starbucks.  I would suggest starting a real Starbucks private custom media channel to their customers using content marketing to further strengthen the bond between them and their customers.  This approach could get Starbucks back on track and make the brand fresh again.  Meanwhile, I can’t wait for the first express line open. 

I love Whole Foods as does my “mom” posse - every time I go to the store, I run into lots of Moms I know.  And, we all have at least five grocery stores to choose from that are closer than Whole Foods (WF).   We are not driving out of our way because we are going to save money. Whole Foods definitely skews to the expensive side of the super market spectrum, even for the “healthy” category. So why are we all so loyal to WF during these challenging economic times?

I was curious enough that I posed this question to my friends: “What makes you drive an extra 20 minutes to a market that clearly charges a premium?” Across the board the first response was perceived quality of the products but it was the next strongest responses that I found interesting as a custom media marketer.

As a community, moms pride themselves on making smart choices for their families. The responsibility for making healthy food choices falls squarely on our shoulders. We want our children to learn good eating habits and help them to make good decisions even when we aren’t there. Whole Foods enables Moms to do their jobs better. The store is packed with information about the foods themselves as well as the brands. The content can include health benefits, cooking tips and serving suggestions. Most of my friends commented that they spend more time in WF compared to other stores because they are busy reading about each special item as well as health news and updates. They learn something every time they go shopping. This is a classic example of content-based marketing to attract and retain customers. The use of informative information we can use makes us more likely to shop at WF, and likely increases the amount we spend per shopping trip. In addition, customers are invited to sign up for fl@vors  to receive special offers, recipes and food education. This is a great customer affinity newsletter that aims to get more business out of current customers. 

However, the biggest differentiator vs. traditional markets for the moms is the live informational events. I am not talking “try the salsa and smoked sausage on at toothpick in the aisle” kind of event our moms experienced. We’re talking sushi making classes; kids cooking lessons; cooking demos and book signings; quick and healthy meal classes; you name it! There are events and classes at WF just about every week. Mom friends sign up together and it becomes a big girl play date. Some of them are in-store, some of them are via sponsorships of local community events which cannot be undervalued. (Giving back in these times is not only responsible, it is mandatory.)  This is a very smart use of live events as custom media to strength the bond between store and customer. Whatever the venue, WF has carved as niche as a destination that plays a critical role in our lives.
Positive and fun interactions with the brand reinforce why we are willing to drive farther and spend more. But overwhelmingly, my own little straw poll indicated that the informative content kept us coming back. It is a competitive world out there and creating a dialog and educating the customer can help move products off the shelves, even the most expensive products. I am guessing that there are other retailers out there that could take a page from the WF marketing book: educate the customer with content-based marketing, engage them with live event and watch the bottom line grow.

Last month I became a member of a somewhat exclusive club which is unusual for me since I have avoided joining anything for most of my life.  You name it – frats, the Elks, Shriners, Freemasons, religions, community groups – no matter the club; I was not your man.

After thinking about it for years, I took the plunge and leased a Mercedes-Benz.  I went to my local dealer on President’s Day weekend dressed like a slob and was clearly only interested in the cheapest model they produce – the C300.  However, from the minute I walked into the dealer, I was treated with respect and like I was someone important.  The sales manager greeted me warmly and made sure I was with a sales person as quickly as possible.  He kept apologizing for the wait which was no more than five minutes.

I purchased 6 cars before this one and each transaction was confrontational and unpleasant.  It was the same drill we have all been through – the pressure to buy today – and the old “What is going to take to for you to buy a car today”.  And of course, the Oz-like sales manager/business manager who is kept in back office and is in charge of closing and the final price.  His purpose is to intimate you into buying now.  The whole experience is usually horrible and you never want to go back.  My father-in-law once punched a guy who would not give him back the keys to the car he was considering trading in.

The people at my dealership worked hard with me to come up with a deal that worked for me.  My sales person patiently explored all options with me in terms of down payment, mileage etc.  I took a test drive and was incredibly impressed with the car and the knowledge of my sales person, who happened to be German – how cool is that.  The business manager was also helpful and closed the deal by giving me a credit for the two payments I had on my existing lease.  At no point did I feel pressured or harassed into buying

What I found interesting was in the sales pitch and all the conversations there was a subtle but strong theme.  From the moment I walked into the dealership they viewed me as a possible life time customer, not a one time deal to make a monthly quota.  There was a lot of talk about “joining the club” how I have earned this car/status symbol. Part of being in the club means I can come by any time for a free car wash, or call for a Mercedes service call anywhere in the US. 

After I signed my agreement, the sales manager who first greeted me came over, shook my hand and put his arm around my shoulder to welcome me and offer his congratulation for “arriving”.  It all sounds corny, but it worked for this cynical guy.

When you think about it there is no difference between a Kia and Mercedes in the respect they both get you from point A to B.  To sell a premium price car you must sell more than basic transportation.  Additionally, the high price point means there is a limited amount of buyers and lots of competition for their dollars.  All the expensive broadcast and print ads in the world can’t duplicate the experience I received when buying my car.  Your next best customer is always your current customer.  Check back with me in three years, but the odds are high I’ll be staying in the club.

There have already been a million reviews of the creative, and that is not our goal, but rather to take a Private Media/Custom Media look at the efforts.

One of the big themes was Web tie-ins and promotions. Google/You Tube  offered a special package which was a smart option. When you are spending $3 million for 30 seconds of rented TV time, it is a no brainier to buy a package from the premier search engine and video sharing site. My Space and other sites also promoted how you could recap the commercials online after the game. Many (but not enough) of the commercials invited you to a special Web site with mixed results. This was the whole focus of the Go Daddy campaign where they teased you to go on line for a lame Junior High joke about Danica Patrick and a beaver. Embarrassing all around, and did nothing to persuade people to use their domain buying service.

The other theme was the overall level of violence, anger, mayhem and gross outs. Puking babies, hearts jumping out of a chest, people sucked into a jet engine, face mauling badgers, and Justin Timberlake being beaten senseless. I haven’t even gotten to the politically incorrect and just plain offensive – making fun of foreigners, unattractive women and creepy clowns. I am a pretty insensitive guy, and even I was offended at some of this stuff.

Mayhem has been a theme for a couple of years now. I can only guess that this is what happens when big agencies try to make news rather than practice good marketing. They are trying to outdo each other and be outrageous to break through the clutter. This is classic example of agencies talking AT customers rather building a relationship and imparting information that could be used to make a buying decision. The whole Super Bowl ad culture has forgotten the purpose of advertising and marketing is to actually sell products and services.

What struck me the most about these ads is how all those marketing dollars could have been used more effectively. Here are just some rough ideas on how to better spend $3,000,000 using content based private custom media solutions.

1. Mining your customer and prospect database to create a quarterly magazine or newsletter with customized content to build a relationship of trust with your customers.
2. A frequent buyer’s affinity program aimed at your best customers to get them to spend more money and convert them to life long customers.
3. A series of interactive webcasts where you can give customers and prospects great information while creating a two-way dialog.
4. A custom Web site packed with content and an online video series with a viral component to build excitement about your brand and turn customers into brand evangelists.
5. A series of face-to-face events to get yourself closer to your customers. There is no substitute to getting your prospects to actually touch, feel and try your product. This works for both consumer and business offerings. If you want someone to try a new version of Pepsi then get it into people’s hands in a fun atmosphere. That will convert a lot more customers than a commercial that rips off a 1990’s Saturday Night Live skit

Two Ads I Really Liked

I thought the ad for the Audi R8 did the best job showing you the product in action and creating excitement for a new car. First they get you hooked with a parody of the Godfather. They even used an actor, Alex Rocco, from the original film. (He played Jewish gangster Moe Green, the bullet in the eye guy from the scene where Michael settles all family business). After getting the viewer sucked in they tease the car in action, which was impressive to say the least. The only reaction you can have is “Wow, I have to know more about that.”

The other ad I really liked was the Coke parade ad. While Pepsi tries to be cool and trendy, Coke takes a timeless, classic approach with cartoon characters. It was creative, fun and multi generational, using Charlie Brown, Stewie from Family Guy and Underdog. Just putting those three together was inspired. The best part was in the end poor old Charlie Brown gets the bottle of coke. It was a feel good, affinity building moment that stood out in a sea of mean-spirited commercials.

I am also compelled to mention that my media flavored NY vs. Boston Super Bowl game prediction was right on the money. The lesson – When Hubris comes up against Karma, always take Karma and the points.
 

I love football and I am a huge Pats fan. I have also worked in advertising and marketing for 20 years. So as you can imagine this year’s game was for me a BIG disappointment! It wasn’t just because my beloved team crashed and burned on what was to be their coronation in the Hall of Perfection. It was because these were some of the worst Super Bowl ads ever. My viewpoints about to be expressed are not necessarily those of my employer. They are observations of a focus group of one: a Super-fan/Super-mom.

Reality TV culture has infiltrated our commercials. Kina Grannis won the Doritos-Idol contest and while I was prepared to hate it in the same way that I hate reality TV, I was pleasantly surprised. She has a beautiful voice. The tune was catchy. I didn’t have to cover my children’s eyes as it played or mute the language. I am glad Doritos is giving an unknown a chance but I am not sure it would make me buy high sodium, high fat snack foods for me or my family.

Careerbuilder.com, which seems harmless enough of a company, was a loser for me. Bloody hearts jumping out of shirts; sweet little fireflies being consumed by spiders, now this is the stuff that bad dreams are made of! The Super Bowl is a family event and we watch it with our kids. Did we not learn a lesson when Janet’s wardrobe malfunctioned? Like all good parents, when your kid is turned off you tend to follow suit in solidarity. The only thing this ad accomplished was make me happy that I like my job.

Salesgenie.com should be taken out back and have bamboo shoots stuck under their fingernails. My kids were questioning if that was mocking an entire community. (Remember, schools teach cultural sensitivity these days!) Ling Lings Bamboo Furniture, Ramesh and his Widgets and I Dream of Genie were not only bordering on political incorrectness, they were just dumb. Come on, do we really think Ramesh is going to save his job and provide for his seven kids because of 100 Sales Genie leads? The ads were insulting at best and patronizing in the least.

On the other hand, I loved the Tide-to-Go Interview. My Talking Stain was funny, memorable and like the stains on my kids’ clothes, it gets my attention. I went to mytalkingstain.com (completely inspired by Office Max and the Dancing Elves of holiday fame) and couldn’t wait to upload my kid’s photos. Children love to see themselves on-screen, e-mail their likenesses to their grandparents and all the while I am interacting with a brand. I already buy Tide, but this reinforces my relationship with them. Today Tide made me laugh in addition reminding me of their key product attribute—they clean clothes. That little value add, a smile during a crazy day, can go a along way for a mom.

I am grateful that I didn’t have to explain erectile dysfunction or Viagra to my kids. But in general, I was underwhelmed with the quality of the ads and messages. I was uninspired by companies who waste millions of dollars and opportunities to communicate a real message on silly cartoon characters that tell me nothing about the benefits of their products. I am disappointed that my team wasn’t super and that the ads for the most part were super-boring.

The proposed take over of Yahoo by Microsoft is a fascinating intersection of marketing, technology and advertising, with Microsoft motivated by its inability to compete with Google in search and online advertising.  If I were in Steve Ballmer’s shoes I would probably do the same thing, but this strategy is a classic example of fighting the last war.

Mergers in the tech world never seem to work out for a variety of reasons, but mostly because they forget about the customer or take them for granted.  These deals always sound good in the conference room where insulated executives pitch each other on stories of efficiency and synergy.  They think that one plus one never equals three, in some cases such as TimeWarner/AOL – one plus one equaled .75.

Trying to merge cultures, technologies, people and rivalries is always a mess, and the needs of and desires of customers always take a back seat.  It is always assumed that if “Joe” is a customer of Company B, and it is bought by Company A, then “Joe” naturally becomes a customer of Company A.  This is faulty logic – our man Joe has no relationship or loyalty to the new company, and may not even like them (remember the HP/Compaq merger).  The market has already selected Google as the de facto search standard by a huge margin.  Why they would think that combing the second and third place search engines would get people to switch.  The wisdom of crowds has spoken and it is not talking about the MSN network.

I have always been a big fan and heavy user of Yahoo’s content and email, but frankly, their search is not nearly as good as Google’s.  I have started the day with my customized myYahoo page and used their email service forever.  However, if a Microsoft-owned Yahoo tries to convert me to a Hotmail account, I am gone, and so will others who don’t want an email address that looks like it comes from an adult site.

Microsoft has to be very nervous about Google’s success and plans for the future.  According to the New York Times, MS is heavily dependent on sales of operating systems and Office (Word, Excel, PowerPoint and Outlook) for profitability.  In the last quarter alone their operating profit from Office was $3.2 billion on $4.8 billion in sales.  That is literately printing money and a business model they need to defend.

It is hard to imagine a time when corporate America won’t be using MS Office, but fast forward 10-12 years.  Do you really think we will all still be using packaged software that costs $400 a pop, or will we be using some sort of Software as a Service (SaaS) or ASP model?  Check out Google Docs and you can see they are moving in this direction.  That thought has to scare the heck out of Microsoft.  Not to mention mobile computing and other platforms where they are lagging behind.

Technology is a cruel business, where one moment you are the hot new thing, the king of the hill, and a minute later you are yesterday’s news.  Google will not be toppled by the combination of Microsoft and Yahoo.  However, one day they will likely be knocked off the mountain by a group of brilliant kids who get their start in a garage.

I like my dry cleaning strong. Strong colors, strong creases, strong chemical smells. I want to peel my ultra-heavy starched shirts right off the hanger and feel as though I’m wearing a brand-new shirt. I want to lift up that plastic veil and marvel at the sight of my born-again wool coats. I want to be sure that my linen pants were dipped in pool of industrial-strength Oxy Clean and then lovingly hand-creased by a strong and meticulous Russian woman.

After a recent move, I decided to frequent a nearby location of the Zoots chain. “They have a delivery service, shoe repair AND in-store tailoring!” I salivated. “Boy, I bet they’ll crease my pants with pride. I’m there.”

And so began my year-long lukewarm affair with Zoots. At first, I was just vaguely dissatisfied with the fact that when I dropped clothes off, it was at least four days before I could pick them up. Then, I began to notice that the receipt they gave me for pick-up never had the cost on it. And the clothes just never…felt clean. More than anything, I just couldn’t shake the thought that they were trying to dupe me into paying more for what was truly some mediocre cleaning and even more mediocre service. 

So, my recent decision to try another dry cleaner was indeed premeditated. I packed up my silk shirts and tailored pants and headed to another local chain called Anton’s. I dropped my clothes off with ease, was told they’d be ready in two days, and received a pick-up receipt that had the cost of the cleaning prominently displayed. I was already off to a better start, I mused as I left the store.

About three days later, I reached into my mailbox to find a mysterious package with a hand-applied label and a stamp. I took a closer look and discovered it was a cheery, beautifully designed welcome package from Anton’s. I eagerly tore the package open and saw it included a welcome letter highlighting store locations, a bevy of coupons and a card with dry-cleaning tips, among other items.

Anton’s chose the precise media channel, direct mail, to reach me, and right after I had a very positive experience with them. The excellent timing, the variety of useful materials enclosed and the attractive, welcoming packaging all worked together to make me feel like they truly cared about serving me. They noticed I was a new customer, and they sent me a package to show they appreciated it. That’s perhaps one of the most simple, yet most important keys of customer retention – just showing you care. And no matter what people say about the death of direct mail, if it’s as well-executed as my package from Anton’ was, a simple $1 or $2 mailing might just earn you a customer for life.

Zoots may have cared about my business, but they certainly never showed it. And now that I have Anton’s to re-fresh my creases, I’m one happy customer. 

In this Monday’s New York Times, David Carr writes about print magazines and how they fit into his overall media consumption.  Read the article—he makes the case that there is less and less time for print and publications like The Week will thrive in the web era with its style of short articles and quick hits of the week’s news.  He may be right for some people, but I don’t agree.

To me, the strength of print is the long article and thoughtful analysis. I can get quick AP type headlines and news on the Web all day long. In fact, I do—I monitor the major news outlets on myyahoo.com feed all day long. In addition, I make time for the Boston Globe and the New York Times print editions to get behind the news stories and personalities. I also make time for Newsweek, Sports Illustrated, The New Yorker, Portfolio, Inc. and Boston Magazine. What I get from each of these is long form, in-depth journalism that I would not tend to read online. That may change someday, but for me and probably others my age, nothing can duplicate the environment and affinity you get with your favorite magazine. What I love about magazines is discovering and learning about something I had no idea I would be interested in; or a unique take on an old topic.

For example, this New Yorker story about Rupert Murdoch buying the Wall Street Journal by long time journalist and media analyst Ken Auletta; or well known tech writer Steve Levy writing in Newsweek about Amazon.com and the future of the ebook.

That being said, the magazine industry faces enormous challenges as a marketing vehicle as we move into the Private Media era. Of the magazines I read each week—I could recall only one ad through unaided assistance—the back cover of the New Yorker had an ad for the Mercedes C series, a car I really want to buy in the spring. It is ironic; the only ad I remember is a product I was already sold on.

The case for print advertising is a tough one to make. It is neither actionable nor measurable to the advertiser, and it is the classic example of “interruption” based advertising. The ads are only relevant to a small amount of people who have an interest or ability to buy that particular product. Each week my reading is interrupted with dozens of very expensive ads for pickup trucks, minivans, video games, outdoor camping equipment, energy drinks, credit cards, after dinner liquor and pharmaceuticals that I will never, ever buy. The amount of marketing dollars wasted reaching prospects in the manner is mind-boggling. And by the way, is this the way to have a dialog with your current customers?

Print publishers face a huge challenge—how to stay relevant and profitable at the same time. Most smart publishers are far down the road to becoming multi-platform media brands with strong online, video, events and lead generating offerings. They need to get to a point where the print product is no longer the center of the universe. This evolution will only accelerate over time as most consumers under 35 are online focused and will not have the attachment to print that us middle-aged people do.

However, a stumbling block to the future is that these media companies are stocked with people who have spent their entire careers in print and still see the Web as an ancillary product. And, because print still drives profits, most media company compensation plans are skewed towards selling print ads. I love this quote from Felix Dennis, owner of The Week, and founder of Maxim magazine.

“The American magazine industry has been massively overstaffed for years and years. It is one of the most inefficient businesses in the history of the world. And you know what? The chickens are coming home to roost,” Mr. Dennis said. “They can sit around the campfire listening to the scary noises out in the dark, wondering where it all went, but what I would suggest is that they take some of the chickens, skin ’em, and stick ’em on the campfire and start eating.”

This sentiment will resonate with anyone who spent significant time working for a traditional old line publishing company. Their staffing and business models are still heavily weighted to print, especially in management and sales. Print sales reps still make huge salaries compared to people selling online media and event sponsorships—does that still make sense? Grab a copy of any consumer or trade publication and take a hard look at the masthead and you will be amazed at the layers of management (thick with VPs, EVPs, SVPs and Extra Special Super Terrific VPs) and the people with titles (anything with “Strategic” in it) that look like what they are—old timers and buddies hanging around at big salaries. Add this overhead to rising costs for paper, production, circulation and postage and you have some significant costs that must be covered by print advertising’s declining margins.

I share Mr. Dennis’s opinion—it’s time to blow up the internal structures of these companies and realign assets and people to reflect the new reality of the multi platform, Private Media world. It’s time to bite the bullet and come to the realization the long term future is not a print dominant world. They need slash costs and hire and reward the people who are driving online, video and event products—not the risk-adverse print veterans who are waiting for the “good old days to come back”. Time and progress only move forward, get on the bus or be run over by it.

It was early on a Thursday morning in Nashville, and sunlight streamed into the hotel lobby, glinting off the silver serving trays filled with pastries. A well-coiffed man walked up to the SunTrust Committed to Growth event registration table. He greeted me enthusiastically, shook my hand firmly and introduced himself. He was an entrepreneur and business owner and, from the looks of him, most likely a successful one. 

Suddenly, his winsome smile darkened. He leaned in toward me, his thick southern drawl even more pronounced. “Now. Whom do I speak to about my dissatisfaction with SunTrust?”

A stout, smiling banker to my left stepped forward. “Hi sir, now what’s the problem?” The banker whisked the man off into the crowd, attentively listening to his issues.

In that moment, it struck me what a gift this was for SunTrust. To have a customer call you while angry and for you to scramble to band-aid an unsavory situation is one thing; for them to show up in person at your event and to give you the chance to repair a bad relationship face-to-face is another.

King Fish Media, in partnership with Profitable Channels, has been producing and managing SunTrust Small Business Growth seminars for the past several years. After every event, I hear this comment in various forms: “Gosh, it’s so good to be able to connect with prospects and current clients face-to-face.” It’s the personal touch that makes a relationship thrive, and in an industry that’s as dry yet as personal as banking, it’s essential for customer retention.

The value of live events extends beyond just delivering informative, relevant content to your valued customers. It opens up endless possibilities for customer service and stewardship that other media channels don’t provide. Although at times difficult to accurately measure, it’s clear that a timely, well-produced live event is often the most impactful channel through which customers can fully grasp your commitment to them.   

By the end of the morning, the smile on the business owner’s face at the SunTrust seminar couldn’t have been more genuine, and the banker sent him off with a flourish. He returned to his banking colleagues are remarked, “Now that’s good stuff.”

The moms market is one of the most lucrative targets for marketers – some estimates have it pegged at well over $1 trillion, and keep in mind that moms have influence over more than 80% of a household’s purchasing power.

While it seems like it would be easy, Mom Hunting isn’t always as simple as it appears. They are right out there in the open, but the competition for their attention and time is fierce. They are not just filtering information for themselves, but for their families, their homes, their schools and committees. How do you capture the attention of this valuable gatekeeper?

Traditional business to business marketing has a few key strategies that have worked well: Targeted events, trade magazines, trade shows, email newsletters, online videos, and web casts. All of these can help persuade potential clients to see the wisdom of selecting a certain product or vendor. These techniques can also work for mom with one critical caveat: the content and format has to absolutely be developed with the mom in mind.

Example: If you are having an event for moms, you have to plan the event with the perfect balance of information and resources - you must factor in the babysitters! Holding an event for moms in the daytime without offering a strategy for the kids would be a clear statement of your lack of understanding of the challenges that these moms face. In a recent Working Mothers Conference, produced by King Fish, the event was not only extremely well attended, but even the moms who did not take advantage of the babysitting service appreciated the offer and said so in their post event comments.

For ducklings, a multi-platform mom-marketing effort for Albertsons/Shaws  supermarkets, the content at each turn supported their tag line: “a little help along the way”. For the magazine element of the program the editorial was developed with the busy mom in mind.

Recipes had a handy shopping list that included minimal ingredients that could be prepared quickly and enjoyed by all palates. The editorial content acknowledged the fact that most moms are short on time and prefers not to cook different meals for finicky eaters. This approach appealed to the readers and kept them coming back to the magazine.

Balancing this type of editorial with actionable information that speaks to the busy mom’s day to day existence was also part of the content plan. By the way, it’s not always about the kids and the spouse, how about something for a little mom time. Quick beauty secrets that were whipped up with grocery store products were always a hit!

Also, keep in mind the power of the mom’s networks, and how much time they spend communicating with each other. Recently I received a video of Anita Renfrew, (viewed over 10 million times on YouTube) the mom who sings the “everything a Mom says in a day” to the tune of the 1812 Overture, in less than 3 minutes. (Over 25 moms sent me this link knowing I would enjoy it.) With this song she captured the hearts and minds of countless moms. Every one of us who, while wiping the laughing tears from our eyes said, “I wish I wrote that!”. We say it the same way we wish we had developed the “Baby Einstein” series of educational tapes for kids. As though we know we COULD have done that, because it is so simple and so obviously true. If a marketer can develop a viral campaign that includes this level of entertainment with the right content for moms, they will have a success. That will be a brand that spreads faster than a germ in a pre-school class!

Hunting this big game sounds easy on the surface, but take a tip from your mom who likely said to you as a kid, “it’s the little things that make a difference”. It is the little gestures wrapped around the well conceived content that will lure the mom and keep her coming back. More importantly, you will start to build a dialog of trust and affinity with a new or existing customer.

I hate Volkswagen. No, I take that back. I loathe Volkswagen.

Now, mind you, when I purchased my 2000 VW Passat seven years ago, I was in love with it. The sunroof, the luxurious leather seats, the Tiptronic transmission, the deep blue exterior – I was in heaven. I felt like I was driving a truly magnificent piece of German machinery.

Then, two years into my ownership of my beloved chariot, and, coincidentally, at the end of my warranty, things started to go wrong. The check engine light came on. I took it in to be fixed. They turned the light off and told me nothing was wrong. It came on again the next day. I took it in. They turned it off and told me nothing was wrong. Rinse and repeat for five straight years.

I’ve had the secondary air pump replaced three times and it needs to be replaced again. The dealer’s current explanation for the check engine light’s annoying glare (and deafening beep if I accelerate quickly) is that I drive in puddles, which is causing water to get in the pump. I told them if their cars couldn’t withstand the rain, I’d be better served investing in a goat to transport me to work every day.

Curiously, there is one thing that has prevented me from pushing my car into the sea. It arrives in my email inbox every month and despite my addiction to deleting emails, I don’t delete it. Rather, I open it up and read every piece. It’s the monthly VW newsletter from my local dealer, rife with articles about the newest 2008 Passats (“offering more value than possibly another any European sedan,” I am pleased to read) coupons for oil changes and tips on where to find the best fall foliage.

I love this newsletter. I’ve read every one, top to bottom. I click on every link, poring over the articles on engine upgrades, photos of the newest models, and pieces on where to go whitewater rafting. I mentally calculate what it would take to trade my car in for a new Jetta or Toureg. Temporarily, I forget how frustrated my car has made me, how I routinely beg friends and family to steal my car in the night, how I’ve denied the car its overdue inspection sticker for the past three months. Every month, I want a new one, a better one, one that will whisk me away to the best theme park in New England.

I’m no stranger to custom publishing. We create customer retention newsletters just like this at King Fish Media. In fact, our work for Compass Bank just received a MIN award for integrated marketing. I know this is all created for my demographic. But, working for a marketing firm, I usually feel I am immune to marketing methods in my personal life. I’m surprised at how powerful one piece of communication, so carefully crafted, so compellingly put together, can make me want to take another drink from the tainted water fountain. But, it does. It’s working. Quality, relevant content delivered to the right person can clearly have a magical effect. VW has created its own private media channel for me and for my fellow VW owners, using custom content to help build a high-affinity relationship for customer retention.

So, now it’s only a matter of time before I walk into my local dealer with a problem and walk out with a beautiful new solution. For two years, anyway.

I re-learned a valuable marketing lesson at the AI conference about audiences and keeping an open mind. Some of the speakers wanted to present keynote sessions where people would sit together in tables of 10 and do interactive exercises together. No big deal, but we were sitting 450 people and it just didn’t make sense to me and my B2B/Technology events background. We strongly suggested doing it our way, but eventually relented and reset the room in rounds with materials for a brainstorming exercise. Well, the attendees loved it, and it fit right in with their democratic and participatory ethos. The lesson is one I should have remembered – put yourself in the mind of your customer and keep your preconceived notions to the side. One of the great dangers in marketing is to default back to what worked in your past. Every situation is new and times change rapidly. Approach every situation with a fresh eye and blank slate for the best results. Besides, “That’s the way we have always done it” is the worst phrase that can ever be uttered by a marketing professional.

Another interesting note – one of the speakers in the conference was an old friend and boss, Nancy Newman who is now a V.P. of sales training at Yahoo! It never fails to amaze me how life and careers takes twists and turns. It was great to see her and she was her usual funny self. When she made a few AV and logistics requests and I jumped right back into employee mode and made sure they got done for her, pronto. Nancy was the Publisher of PC Magazine and I was her marketing director back when it was the size of a large phone book in the pre web 90’s. Never in a million years could I predict that I would see her 10 years later at an Appreciative Inquiry conference my company was producing. She was joined in a standing-room-only presentation by her Yahoo! colleague, Kim Bennett. Over drinks at the evening reception Kim told me she was a stand up comedian on her rare breaks from working at Yahoo! That is what I love about face to face events, none these conversations would have happened online or in any virtual world. There is no substitute for human interaction. Here is something the internet is great for – sharing a video of Kim’s stand up act, on Yahoo! Video, of course. Click here to check it out, and enjoy.

King Fish Media recently produced the 2007 International Appreciative Inquiry (AI) Conference. The four day summit brought together people from over 25 countries to hear speakers such as David Cooperrider, Marcus Buckingham and Martin Seligman. I will not even attempt to explain positive psychology and AI even though I am the proud owner of a 20 year old BA in psychology. Click here to learn more about the conference and see links to AI resources.

Spending several days at this conference reinforced my belief that face to face events are a critical media channel, and a key component to any Private Media solutions. Events a media channel? Of course, they are. Events bring together a community of people with similar interests with compelling content in a high affinity environment. That is the perfect description of private media. Additionally, a live event is the best community building mechanism known to man. It is one thing to join an online social network, but it is quite another to spend three days with a colleague in keynotes, breakout sessions and social situations. You can actually see relationships being created and deals being done when you walk around reception rooms and break areas. Can you think of a better customer retention venue than spending 48-72 hours with your best customers?

Events can be a hub and jumping off point for additional permission marketing vehicles such as newsletters, magazines, Web sites and more. As we become more and more Web centric, live events are more critical than ever to build relationships and market your company. As a marketing guy who has run his share of events and conferences, I am a huge believer in face to face. I strongly believe that focused events are a “must have” in most private media solutions. When you have someone in your own environment for a period of time, you have a golden opportunity to message to them and create long term customers.

“It looks like your payment was misplaced, so we had to turn off your electricity. We have no proof that you sent it. I can’t backdate payments. This probably ruined your credit. I know it’s 95 degrees out and you’re sweating to death in your house. There’s nothing I can do. Maybe you own a fan? Thank you for calling First Electric Company! Have a great day!” rambles the robotic customer support representative, barely stopping to listen.

As you slam down your phone and your dog whimpers in the sweltering heat, you yell, “How could they lose my payment?! They didn’t even listen to me! I AM HOT!”  

Whether it’s a snotty salesperson, a condescending technical support representative or a negligent front desk agent, we all know what it’s like to be treated badly by someone who is being paid to help us. As we seethe in anger over being mistreated, we have several options. Our doctors would recommend a brisk walk so we can clear our heads. Our inner fatties demand ice cream. The road-rager in us demands we get in the car and see how many other drivers we can drive off the road.

But what do most of us do? We complain. Loudly. To anyone who will listen. And increasingly, that includes posting about our experiences online.

No matter what you’re angry about, there is a site on which you can post about it. Having issues with your faulty Hyundai? Post on furiocity.com, where the site logo is a frowny-face emoticon. Have major beef with Capital One? Take a gander at caponesucks.com, where over 6,000 registered users complain about being mishandled by Capital One. Feel that you were wrongfully arrested? Grumble about it with fellow inmates on screwedcentral.com, where they will also gladly host your complaints about the government.

So how do companies control the negative feedback? As media becomes more and more instant, the need to know what people are saying about your company is critical. The impact of one bad experience broadcast on the internet could potentially expedite customer churn and cost you millions of dollars in lost revenue. I came across one extremely angry man who claims that a pest control company killed his dog and is trying to send his wife to prison for writing a bad check. If that isn’t bad PR, I don’t know what is.

It may be easy to brush off angry customers as being crazy, but that tact might not be the right one to take. In most industries, there is very little difference between competitive products, so customer service has become the great differentiator. It is critical that someone in your marketing organization monitors these sites and monitors what people are saying online about your brand. In addition, it would be a wise move to provide your customers with a clear and easy-to-use forum for sending their disputes and complaints to you directly instead of sending their rage directly into the void. 

The bottom line is that you’d better start listening, or else the rest of the world will first.

There I was, in my local toy store, with my son who was in the process of potty training. Can I tell you how much I have spent in that toy store? I have shopped in this store over and over again, not only for my three children, but for the countless number of friends who have invited us to equally numerous birthday parties. If shoppers were frequent flyers, I was a platinum purchaser.

After walking around for the obligatory pace lap, my son announced to the entire store that he had to “go potty”. Of course I said to the woman behind the counter, with my hands full of Polly Pockets, baby dolls, a t-ball set and a model sailboat, “Can my son please use your bathroom?”

“No, I am sorry, we don’t have one” she replied.

“You don’t have a bathroom?” I said just loud enough for all the other mothers to hear, slightly sarcastically?

“Well… um. Er. Actually we only have a bathroom for employees, not customers.” 

My son was by now whining, creating quite a scene, and with the same frustration that I have experienced with slow or unresponsive online stores, I abandoned my shopping cart. I left it full and unpurchased. I left it and never went back. I called every mom I knew and told them about the injustice and in solidarity we all agreed to not shop there again. I ran into a mom at the playground later that week, who unbeknownst to me, had also been in the store at the time of the scene. She too abandoned her arm-cart in sympathy, but not without giving the woman a piece of her mind.

Moral to the story for smart marketers: Don’t make us mad. Maybe it’s not your bathroom, maybe it is your return policy. Maybe it is your message. Maybe it is the challenge of finding what we want with facility. Maybe it is just your customer service or your tone of voice. But don’t make us mad. Our sisterhood is extensive and we know how to use it to help us and to punish you for your bad behavior.

By the way, it works both ways: we are quick to embrace and reward the vendors and service providers who speak to us with respect; help us save time and money; make it easy to do business with; and of course, let our little guys use their potties.