CEOs and Brand Identity
Ford, Chrysler, GM… besides all being in sweltering financial distress, all three at some point in the last several years have put their CEO’s on a TV ad campaign. Most recently GM has put their newest CEO, Whitacre, behind the camera .
Let’s just say it didn’t work out for Dr. Z or Bill Ford, both of whom handed over the reigns shortly there after. I’m not suggesting this is a curse in the magnitude of the EA sports cover spot, but potentially a trend.
These companies struggled to identify a message and voice to the consumer so they put their CEOs behind the camera…but what has that really done? I dont know the answer to that question and I don’t know the analytics behind these campaigns, but I do know this:
A CEO has NOTHING to do with a consumer’s experience and relationship with her car.
OK…obviously, the CEO should play a role in setting the tone and strategic direction of the organization but to your average consumer, the CEO is likely of little significance. Take a look at the video spots below from each of the big 3 and tell me if the CEO contributed to the compellingness of the brand and/or value proposition?
Starting with the last one, I don’t think that Ed Whitacre was believable or genuine in the slightest. He’s not an actor or an icon. He’s a guy in a suit and he acted like on. There was not an ounce of me that believed he cared about my driving experience. Not an ounce of me believed he knew what American’s value when it comes to an automobile. And that’s in part because I don’t know what GM stands for, a midst all their brands, whats the value proposition of the GM umbrella? And where does Mr. Whitacre communication fit into that?
Bill Ford at least carries the name, so on some level I believe he’s passionate about cars, particularly the mustang featured in the spot. Still, it didn’t do a whole lot to secure his job. Worse still, his replacement lasted only 4 months. And we all know what happened to Chysler. I will say from an entertainment standpoint, I liked the dr. Z spots…but I think again Chrysler struggled with an identity problem…no one really bought the whole German inspired nonsense. I mean, has anyone SEEN the PT cruiser? I think its safe to say that nothing about that car says “German engineering”.
So at the end of the day, I don’t think making your CEO the public face to the consumer is ever a wise move unless they are truly iconic. And even then, I don’t see the value add. Afterall, we don’t see Jobs pitching for Apple, Gates for Microsoft or Laffley for P&G. The CEO should be behind the seens, developing their organizations…not pitching me their products over mass media.*
*Note the exception in the B2B space, where the CEO can be iconic by virtue of her position, where she is respected by other key business decision makers/influencers.
The focus on customer retention
So I realize I’ve been harping on this for a while, but I just got this update from e-marketer that got me fired up. As reported by e-marketer, a study by Unisfair reports that 6/10 marketers say customer acquisition is a critical priority. No surprise. What is surprise however, is that less than HALF of those surveyed said customer retention was important. I know I’ve been on my soapbox lately on the customer experience, but EVERY marketer should consider retention a priority…because once a customer leaves you, consider the cost of replacing that customer via acquisition which is 10x the cost of simply retaining that original customer.
Customers generally leave due to negative experiences (poor price, service, compatibility, etc.). What the survey tells me is that 50% of marketers are basically ok not placing the customer relationship as a priority.
Am I the only one out there who finds this problematic? It just takes one angry customer to tell 10 more, or even 100 more people about their experience. In the case of Dave Carroll and United Airlines, 5 million folks have seen “United Breaks Guitars“. So why wouldn’t customer retention be a priority?
Customer Service Rant Revisited
This is a follow up to my last post: Customer Service Rant
DEFINE IRONY: When after completely botching the customer experience, Time Warner Cable sends you a mailer asking you to come back at a 30% reduction in price. This is a perfect example of how not to treat customers. Why is it that companies come to their senses only after you’ve ceased to do business with them?
What is it that makes it ok to not value a customer relationship until its lost?
Acquiring a customer is 10 times more costly than simply retaining a customer. And as proof, it will take more than one lousy mailer to make me come back, even at the huge discount they are offering me (which by the way they should have offered in the first place – as you can read in the previous blog, I left in large part because of the gradual but significant creep in my monthly subscription fee).
Rather than make this a total rant…some advice for marketers and service providers the world over:
1) Keeping customers happy is ALWAYS easier than trying to win them back after decidedly not making them happy.
See “United Breaks Guitars” as a GREAT example. After decidely failing to reimburse a customer for damage to a beautiful Taylor guitar, country artist composes and posts song to Youtube. With over 5 million views it has cost United Airlines an estimated $180 million in market value.
2) Asking a customer to return just a month after you’ve explicitly devalued that customer relationship is insulting. I don’t think I really need to further explain this point. We all know the feeling.
3) If you’re going to woo a customer back, don’t do it with a mailer that cost you $1.
The most valuable customer relationship managnent lesson I’ve ever learned… The best way to overcome disappointing a customer, is to go back and ask for more. Face to face, one on one, whatever it is that makes the most economic sense. In this case, a phone call thus making it a TWO-WAY conversation would have been better. I probably would have told TWC to you-know-what, but that would have been the first (of many) steps to rebuild a broken relationship.
I’m not going to put out a youtube video about TWC, but the very fact that I’m writing this blog is proof that in today’s digital age, a singular customer experience has the ability to dramatically impact (Positively or Negatively) an image beyond just that one touch point.
Customer Service Rant
Several weeks ago My wife and I were at a movie theater around town (for my local friends, the Marcus Majestic). And we were sitting in their new dinner style theater, complete with individual captains chairs, tables going across each row and an attentive wait staff which could be summoned with a dimly lit light at your table. The experience is truly one of a kind and was completely worth the added premium in ticket price (about $1 more, though I’m sure the food was also more expensive).
As we sat waiting for the previews to begin, chowing on popcorn, I noticed each seat had a pamphlet on ATTs new Uverse offering. I considered at the moment what a great idea that was. You have a captive audience that clearly values the multi-media experience, and since this is a full service dining experience, chances are folks were coming in before showtime and would have time to kill (as we did). During this time I had also become increasingly annoyed with time warner cable who over the past six months had raised our prices on three separate occasions, all due to promotions expiring. I’m ok with this when its within reason…but our cable/internet charges spiked 50%. Talk about a bait and switch. So already inclined to say good bye to TWC, we switched to uverse that week. I’m not quite a Uverse evangelist but so far, I’ll say it as been great, especially since its completely integrated with a multitude of online accessible features (the video quality is also perceptibly better).
OK…let me now get to the purpose of this rant…Why Time Warner Cable sucks.
1) When I called into to disconnect our service, TWC informed me that they could not cancel until they physically had the cable box in their posession. OK…I can understand that to a degree. So my wife accomodatingly drives there that day, at which point we expect a refund for any unused service, right? Wrong. 4-6 weeks.
2) 4 weeks go by…Instead of a check, we get another bill. It would seem “Mr. Kaneta, that when you returned your equipment, the store failed to issue a disconnect.” So not only did I not get a credit, I got another bill and had another month’s worth of fees charged to my credit card.
3) I call up TWC (the rep was actually very polite and helpful)…we work it out such that an agent will arrive at our house to do the disconnect in a week but I won’t be charged for anything beyond the day I returned equipment. Great…except they can’t send me my money until 4-6 weeks after disconnect. So all told I’m out 2 months of service fees that will take 10 weeks from the day I cancelled to show up in my mail box (if I’m lucky)
4) Sadly this is not the first time this has happened to me with TWC. How often does TWC fail to disconnect and charge their customers?!?!? Truly an unbelievably poor service experience… With as much as they spend on customer acquisition, you would think retention and user experience would rank among one of their priorities.
So with that being said, Time Warner now ranks among my five worst service providers on the planet. In no particular order because they all suck… 1) Time Warner Cable. 2) Sprint. 3) Stonegate Properties (my first apartment after college). 4) CARTUS Relocation Consultants. 5) The money-eating vending machine in my office.
Congrats Time Warner Cable… you’ve officially moved from mediocre to suckville.
Your Biggest Competitor: Being Good Enough
Imagine your product or service is the market leader. For years you have sustained a significant competitive advantage, whether that be inimitable technologies, processes, or scale, etc. Now imagine new competitors begin nipping at your heels. You still have a superior product but your price is 20% higher. You believe you command a higher premium and leadership demands higher margins. Now imagine we’re not talking about basic packaged goods where that equates to an extra buck. Imagine that instead we’re talking price tags with one or two commas in them. So the price difference is now hundreds or even thousands of dollars different.
At what point does your customer say you’re not worth the premium? At what point does a customer walk or cease to entertain you as a viable option? The answer is when the cheaper product or service becomes “Good Enough”.
Ever heard of a company call Vizio? Probably not until a few years ago. But today they are the #2 player in Televisions. Why? Because the technology curve and product lifecycle of flat screen TVs has plateaued such that, while Vizio may not be perceived as “good” as competitors Sony or Pioneer, Vizio’s product is viewed as “good enough” when priced significantly lower.
EDIT: I discovered that Vizio is actually now #1 in the US for flat-panel TV marketshare. The top five market leaders, according to iSuppli, are Vizio, with a 21.6% share; Samsung, 19.9%; Sony, 16.6%; LG Electronics, 10.7%; and Sharp, 9.4%.
Now ask yourselves how many of your competitors have assumed a lower cost position with a value proposition of “Good Enough”. Surprisingly there are probably more out there than you think (you may even work for one of them). The reality is that Good Enough players will continue to thrive until we innovate and change the game, and refresh the product lifecycle curve. That will not happen by simply bolting on added features (see PC industry). Each little feature, unless truly a delighter, simply promotes the notion that your space has become commoditized.
I’m not going to tell you how to move that curve, because frankly if I had the answers, I wouldn’t be writing this on a public access blog. I will say that the first step must be recognition that your market is being encroached upon by good enough competitors. Next, determine what your customers want and translate that to a need(s). Finally, make a candid assessment of your value proposition. Does it still hold true or are you delivering (relatively) less customer value than you delivered years ago. Like I said, easier said than done…but if it were easy, none of us would ever have to be just “Good Enough”.
B2B data capture, tool or customer repellent?
Stumbled upon a very interesting blog that really resonated with me. Having many moons ago come from credit card marketing, I believe customer intelligence is king. The more we know, the more we can deliver the right product and message…but of course, in financial services, customer information is a given. Quality and risk inherently justify the collection of personal information.
So what about in B2B marketing? Do the same rules apply…if not, when is it acceptable to gather data? B2B marketers talk about things like “Thought Leadership”, we push whitepapers and case studies, and ultimately hope people read them. But if we want people to read, share, evangelize, then why do we create obstacles like data capture?
Short answer, in my opinion, is that its what we’ve always done. The problem is that the rules have changed. There is so much content out there. Google is a one-way ticket to information overload. If you don’t get me what I want, I’ll go somewhere else. End of story. So if you need to collect information (or at least*think* you do), here’s some tips…
1) Is it information that I would be comfortable giving – Once you ask for my address, that’s just broadcasting your intent to send me junk mail. Unless you are uniquely positioned to provide crucial, relevant information, I will probably close the window. And as a colleague of mine pointed out yesterday, how many of us have NEVER given fake email or mailing address?
2) Is the information quick to provide, or am I going to have to think about it? Example – I HATE long drop-downs… I never know which of the bajillion options to choose, so I usually just randomly select one or skip the capture all together. Which again, goes back to the actual integrity of the data capture. The more complicated, the more useless the information will ultimately be.
3) Have you given me a preview of the content first? Do I know what I’m getting myself into or am I going to give you a ton of information only to find that you’ve handed me over a brochure promoting your company and product? Talk about ruining the customer experience. This among all things is a big peeve of mine. Data capture is a trade, a business transaction, and my information is worth more than a lousy, self-promoting, brochure.
Wrapping up, I will admit that I am guilty of data capture, but only as a means of timely, relevant follow up. Always take a customer-back approach and consider how your customer will feel. This is not rocket science, but judging from all the registration screens I see everyday, its something that B2B marketers sorely neglect.
The Social Media Cold Call
The title in and of itself is ironic. Cold calling, hard core outbound marketing should be all but obsolete thanks to the wonders of social media…but I’m here to report that cold calling lives on, for better or worse.
Social media was supposed to spawn a new generation of “inbound marketing”. Of on demand and user-generated content. People were supposed to find information on anything they needed, at any time, on a variety of platforms. We were supposed to be brought closer together as parts of communities. All these things are happening to some degree, but there are others that look at Social Media as just another method to prospect people they’ve never met.
At least once / week I get the obligatory LinkedIn request from someone I’ve never met…”hey we both used to work at so-and-so inc. Let’s link”. What? Do I know you? For what possible reason would I vouch for you over cyberspace? Did you make any attempt to get to know me at all or did you just see that I have a bunch of contacts in an industry or company that served your purpose?
My other favorite is when someone from my alma mater will email me their resume saying they’re looking for a job. “Saw you worked for so-and-so in the alumni directory. I’m interested in this job…” What has the world come to that people think because we happened to graduate from the same institution, we suddenly have a bond and that I’m going to go out of my way to help them find a job?
I’ve been married for a long time, someone tell me this is not what dating has come to…forget getting to know you, let’s get straight to it and elope.
Maybe I’m showing my age but if I don’t know who you are, maybe you need to start working your personal brand before coming to me for a favor. Asking me to be your contact is not a great place to start. There’s a ton of information on the net so next time, try getting to know a person first. Figure out interests, commonalities, etc. All these things SHOULD be common sense. ”Enjoyed your blog on this…” or “I see we both have a passion for this…”
Most importantly, don’t forget about reciprocity. If you want something, offer something first. A most basic marketing tactic and one I might add that I see alive and well in social media. Companies across the globe have figured out that by putting helpful information out there people will eventually seek them out when the time is right. The same should go with our personal pursuits. And it doesn’t have to be a huge concession. Simple flattery is always a good place to start.
Now let’s all stop with the digital cold calling… if you have a personal brand that resonates with me, I’ll take the time to get to know you, and then maybe I’ll take the time to help you. But let’s not skip to the third date before I even give you my phone number.
LeBron’s Brand part II
Below is a response I posted to another blogger on Brand LeBron. Thought I may as well share it here as well.
I should say that since I first criticized LeBron’s behavior, he has since come forward and apologized. The NBA also fined him $25,000 for his actions (a pittance in LeBron currency though sizable to us normal people). Nonetheless credit him and the NBA for making the right decision.
I think LeBron has surrounded himself with some of the brightest minds in marketing. He also has the benefit of two predecessors, Michael Jordan, who really didn’t fully capitalize on his marketability until the second half of his career and Kobe Bryant, who we all know lost out on millions in endorsement money by making poor life decisions.
That said, at 24 years old, LeBron is still just a child who I think tries to take on too much. Yes he’s an “adult”, but that doesn’t equate to maturity, especially when your formative years are spent being celebrated like his. As such he made a poor choice after Cleveland’s elimination. Forget talking to the press, I’m referring to not shaking the hands of his opponents. Some players have said it wasn’t a big deal but I think that’s the brotherhood sticking up for one another. At the end of the day, if someone doesn’t shake my hand (win or lose) I question their love of the game and I question their values. Where does fair play and integrity place on their priorities?
LeBron has never shied away from the spotlight, making clear his intentions to be the first “Billion” dollar athlete… well there’s a catch. To succeed in that measure the public really needs to embrace you. But the very notion that greed is his ultimate motivator, coupled with his lack of sportsmanship is bristling and in my eyes makes it that much harder to embrace him as an American icon.
Marketing God
Let me say that the title of my blog is not an attempt at blasphemy. Make no mistake, my faith in Christ is very much a part of who I am. That being said, I have come across too many blogs in recent weeks reflecting negatively on Christianity and its beliefs, that I felt compelled to write this blog. No, I’m not going to try and convince you to accept Christ as your Lord and Savior (although I’m happy to have that discussion one on one if you would like). I’m actually writing this for all those self-proclaimed ambassadors of Christ.
Our marketing sucks!
Part of Christ’s message centered on acceptance of others. Yet the perception of Christ followers is that we don’t connect with those who need Christ’s message most. We seem to think that if people want to hear the good news they can come find us…How realistic is that? Some might call this blasphemy, but when we are competing with materialism and greed, speading the good word means marketing. It means, to some degree, looking at Christ as a brand – an eternal brand to be sure, but a brand nonetheless. And might I add that it is a brand I am proud to endorse each and every day.
You think Procter and Gamble convinces consumers to buy their brands without investing in marketing? You don’t create brands like Tide, Pampers, Bounty or Crest waiting for people to discover who you are. You communicate… and if you ask me, the message of Christ is a heck of a lot more compelling than clothes smelling like springtime.
But the biggest problem I see is that the Church gets in the way of itself.
Too often a church becomes about Religion and not about Faith. It becomes about tradition and not about adaptation. When brands resist change, they simply fade away (think Oldsmobile and Xerox). And sadly I think that is the position Christianity is in today. We ignore the social evolution happening around us and keep telling the same old story. Familial systems are broken, career paths are changing, the influence of consumerism grows, while science challenges or usurps the assumptions of old.
Does that mean Christ has become irrelevant? Absolutely not. But perhaps the way we choose to share his teachings has. Exchanges with people happen less under rooftops and more in social networks. Where people used to hold one job for most of their lives, most people today will have had more than 3 jobs by the time they’re 30. And then there’s science and technology bridging the gap to the previously unknown… and yet despite all this we stick to our guns, hide in the sanctuary of the Church, and refuse to even acknowledge technological advancement.
I’m not going to get into an argument about evolution, but did anyone stop to think that science challenges our faith for a reason? To those in the business of spreading God’s word…I implore you to consider that its not just your message, but it’s how you are spreading that message. Having answers is not enough if no one is there to listen.
