If you’re like me, you don’t need external affirmation or reinforcement of your decisions all the time… but sometimes is nice!
Back in June, I told you about The Consumerist, a wonderful online community and blog owned by Gawker. I raved about its informative stories about good and bad customer service experiences (“Shoppers Bite Back”), along with all the corporate phone numbers, addresses, etc. you frequently wish you had at your fingertips. The site also does a great job for its 1.8 million readers of promoting great deals and discounts.
Now comes the affirmation I mentioned: Consumer Union has just purchased The Consumerist! Jim Guest, President and CEO of Consumers Union, says that the Consumerist community’s passion for helping consumers shop in a “fair, safe and just marketplace” will add exponentially to his company’s relevance and reach. It will also bring younger readers into the Consumer Reports fold.
And for The Consumerist and Gawker: WOW. The site’s new owner knows a thing or two about online marketing and revenue generation. With 3.3 million loyal, paying readers, ConsumerReports.org is the largest paid-subscriber website in the world.
A good deal all around! Let’s just hope that Consumerist readers will continue to have access to its content free of charge… with some heavy-duty Consumer Reports cross-sell pitches thrown in, of course. Consumers UnionConsumer Reportsconsumerreports.orgThe Consumerist Consumers Union Buys Consumerist
It’s no secret that Wal-Mart has benefited from the failing economy; it also did a very nice job recently with a promotion helping families pay for Thanksgiving dinner.
Now that the company has agreed to pay $640 million to settle over 60 wage-related lawsuits, I see an opportunity for Wal-Mart to reconstitute its image.
While 42% of Americans (as of 2006) say they shop at Wal-Mart at least once a month, there is at least 14% of U.S. consumers who consider themselves “conscientious objectors” to the retailer based on its employment, charitable and other policies. And it’s probably safe to say that at least a portion of that 14% consists of parties that can capture an inordinate amount of media attention such as local governments and retailers, unions, prosecutors and others.
So with its successful new tagline “Save Money. Live Better,” will Wal-Mart seize what I see as a window of opportunity to change some of its policies and win over its detractors? Pay-outs like $640 million are a drop in the bucket for Wal-Mart: there’s a lot the company could do (and spend) to ensure that it comes out smelling much sweeter once the economy turns around.
Consumers need a savior right now: will Wal-Mart go out of its way to step up to the plate?
Dead people are big business. We buy licensed products, DVDs of events gone by and iconic apparel. Their estates continue to earn royalties and hold auctions. Forbes even maintains a “Top Earning Dead Celebrities” list. And earlier this year, I wrote a post here that outlined just how big “dead” is: Elvis‘ estate generates the most money each year at $49 million, with John Lennon pulling in second at $44 million annually.
Lennon’s estate generates the lion’s share of its revenue from sales of the Beatles’ catalog. In other words, Yoko et al make money from what Lennon did and loved most of all: make music.
Now, a television commercial uses Lennon’s likeness and digitally-altered words to sell computers: Nick Negroponte’s One Laptop Per Child effort, to be exact. We see John’s face, we hear the words… and it’s just creepy.
I think this is a misstep. While I admit that I may have more information about OLPC than the average television viewer – information that puts a sour taste in my mouth – I simply don’t see the connection between children, computers and John Lennon. I think its a stew made of this disconnectedness, an inability to not think about how Lennon died and knowing that Yoko would approve something like this (I rest my case for “weird”) that just doesn’t get me there.John Lennon One LaptopNick NegroponteYoko Ono
Check out www.IAmStNick.com. If you don’t know what to get someone for Xmas, Santa will call your finicky recipient and ask her what she wants. You can then go back to the site and listen to the recording of the call. Cute!
If the site comes back around next year, it could possibly make some dough through advertising and sponsorships not only on the site but on the calls themselves. If the callee doesn’t know what she wants, for example, she could be given a few choices such as “Press 1 for environmentally friendly gifts” or “Press 2 for travel-related gifts” and so on. The site could also collect a rev share if the gift-giver actually follows through and purchases a gift advertised on the site or over the phone.
It amuses me how the media sometimes appears to struggle to assign some form of magic to Wal-mart.
AdAge recently had a cover story on the chain that made the odd observation that Wal-mart benefits because most of its locations are in states where gas is cheap(er). The article’s thesis is that falling gas prices have helped Wal-mart shoppers in part because the chain is concentrated in Midwestern and Southern states “where prices have fallen the most,” WSL throws in that declining gas prices benefit lower- and middle-income consumers the most.
Does this strike you as… grasping? It certainly struck me that way or, at best, as something that deserved a one-sentence observation rather than a multi-thousand-word piece. BJs, Kohls and any other large chain will benefit from the same falling prices. If Wal-Mart has more stores in more depressed areas of the country, fine: but revelation? Hardly.
Then in the same issue, there’s a very large article describing how some are blaming Wal-mart’s advertising for the trampling death of an employee in Valley Stream, NY on Black Friday. As a more rational consultant points out, we don’t blame musicians when fans get hurt at concerts, or cereal makers when moms buy sugary cereals in the grocery store. Not enough security outside the store? Possibly. But blaming “specific marketing techniques to specifically attract a large crowd and create… frenzy and mayhem?” That’s just weird.
It all goes in one bucket: people struggling to uncover some piece of black magic that can account for Wal-mart’s performance. Whether it’s the global phenomenon of falling gas prices or hypnotic post-Thanksgiving advertising, we need some explanation on a grand scale.
There’s no there there. I’m the first to criticize Wal-mart, talk about Wal-mart, stay away from Wal-mart… but Wal-mart is just doing what it does best: leverage real estate, buying clout and regressive employee policies to deliver low prices and lots of variety. It’s not magic: it’s just retailing.
Technomic recently announced the top 5 restaurant trends for 2009. I didn’t think the list held too many foodie-oriented surprises, declaring “ethnic flavors will continue to star” and “experimentation with flower.”
While Technomic’s press release acknowledged that the coming year will be even more of a “buyer’s market” than 2008, I was surprised to see that none of the trends reflected the fact that what is not flowering is consumers’ wallets. There is no mention of how restaurateurs are going to try to drive traffic in the worst economy since the ’30s. One of the trends, in fact – “kids menus will be up-scaled and expanded” – could imply an up-scaled price, as well.
This is odd, given that Technomic itself issued the results of a survey in October indicating that restaurants will be hit hard by the weakened economy. 74% of consumers plan on visit QSRs and full-service establishments less often next year and 50% - including 70% of higher income diners – plan to spend less when they do dine out.
At least from a consumer point of view, there seems to be an odd disconnect between the trend list and reality.
It’s been a very odd few weeks in the fast food marketing business.
First, there’s Burger King’s effort to spread “ugly Americanism” around the globe with its odd “Whopper Virgins” campaign. “What happens if you take remote Chang Mai villagers who’ve never seen a burger, who don’t even have a word for burger, and ask them to compare Whopper versus Big Mac in the world’s purest taste test?” I don’t know the answer, but I’m doubtful that this campaign will shift any new business to Burger King – it may fuel the fanatics (and I’m not knocking the importance of retention) but I wonder if it’s enough to balance the heat the company has received as a result of the campaign. Early results already show that the campaign is putting off women, and positive chatter on the Web is dropping quickly. Barbara Lippert judging the work as “culturally tone deaf” was one of the nicer phrases critics have used.
Then yesterday, the Pizza Hut “anti-Main Street” (my phrase) ad debacle hit Twitter, care of Ian Schafer, CEO of Deep Focus. Pizza Hut has created this odd viral campaign in which actors walk into mom-and-pop pizza shops and order pizza delivery – from Pizza Hut. So… in a recession, Pizza Hut puts out ads in which people order pizza that we all know is not as good as the product you can find in your own neighborhood, AND mocks/steals business from little restaurant owners just trying to make a living.
While it has not received much credit for it, Burger King actually did donate some money to the towns in which the Whopper Virgins ads, so the company wasn’t entirely tone deaf. The Pizza Huts ads are just, well, mean.
And lastly, there’s just not a whole lot to say about a Burger King body spray for men that smells like… meat. “Flame” offers “the scent of seduction with a hint of flame-broiled meat.” Nah, I’m not going to take the bait (pardon the pun) – it’s just too easy.
So there you have it: a strange time in fast food land. Go offer some love (and cash) to your neighborhood diner today!Burger KingWhopper VirginsPizza HutIan SchaferDeep Focus
Straight from treehugger-land… a list of stuff NOT to buy this holiday if you give a hoot about your planet.
Some of the items on the list are more sustainability-sensitive than others, and some are just funny. Like…
GIFT CARDS: “No better purchase says, ‘I did all my shopping at the gas station.’” Nice! I still like iTunes gift cards, however, so don’t let Planet Green stop you.
PAPERWEIGHTS: “Companies… pass every piece of non-functional junk off as a paperweight. Whose office is that windy? Are these paperweights for tornado-chasers and sea captains? Rocks are free.”
You do not even want to KNOW what these guys say about mail-order fruit…
AdAge ran a mini-poll that asked “Do you think increasing repetition of TV spots is worsening the viewing experience?” 85% of those who answered said “Yes,” with specific responses such as “If a product is forced on me too many times, I purposely do not buy that product or anything else from that company.”
What no one happened to mention is why TV shows viewed online show you the same ad over and over and over. What is that about??
I am one of the many fans of Lipstick Jungle who watch the show on NBC.com rather than on television. This is such a common phenomenon that it’s one of the reasons the show’s been saved (so far) from the chopping block: each LJ episode picks up 50% more viewers when delayed viewing (including DVRs and online streaming) is factored in. 50! That’s huge.
These are viewers, like me, who have to go out of our way to go to the website, find the show, find the specific link… This is hardcore intent we’re talking about here, with viewers at full attention. So what could possibly be the reason to show the same Dove commercial during each and every commercial break? Or the same car commercial? Even if a brand buys the whole episode online, please show 3 different ads!
I find this quite odd. As a consumer, it’s so boring that I look away from the screen and hit the “Mute” button after I see the commercial the first time. As a marketer, all I see is the lost opportunity and (what I think are) wasted dollars.
Catalina Marketing and Pointer Media have just released a study indicating that 2.5% of consumers account for 80% of the sales for the average CPG brand. Less than 2% of the over 1,300 brands studied have more than 10% of shoppers generating 80% of their sales volume.
1% of buyers account for 80% of Iams pet food sales volume.
This is really incredible information – and blows the old “80/20 rule” clean out of the water.
There are significant ramifications for messaging, media, customer service, community outreach, packaging, channel management, corporate giving – you name it. Catalina and Pointer are, of course, creating a new service to help brands find these “pivot point consumers,” but these kinds of metrics should generate significant thinking all the way down the value chain.
* Grand Prize – John McCain’s Presidential campaign
* Overly confident LifeLock CEO brags about his company’s identity theft protection service by publishing his own social security number – and gets his identity stolen.
I can’t say whether Perkler answer, but I think there’s a business in helping consumers get the most out of the loyalty programs they are already in and – based on self-reported interests, perhaps - sign up for new ones.
Any individual in these programs gets random emails and direct mail about special timed offers, and it’s impossible to keep track. Plus, if I’m a frequent traveler (with no time to haunt sites like FrequentFlyer.com), how can I easily figure out what new programs I might want to consider? Impossible.
What if there was a dashboard that let you manage all your loyalty programs in one place? Numerous ways to make money, including selling services to the companies who offer the programs and advertising from companies interested in serving up messages to consumers with specific interests.
Every year, I go holiday card shopping on the day after Christmas and buy up lots of cards at 50% off.
I undershot this year.
So Saturday night, I wandered into Papyrus and Kate’s Paperie along Third Avenue and began looking for the 2-3 additional boxes I needed. Every box had cards visible from the front, and a plastic top whose edges sunk into the sides of the box. Each plastic top was sealed to the box on at least two sides by sticky tape rounds.
Now there is no way that I’m going to choose a card without seeing both what it says and how it looks inside. What if the type is ugly? What if it has odd decorative thing-a-ma-jigs all around the words? And sometimes the package doesn’t note what the inside of the card says at all, so you have to open the box to make sure it doesn’t say “Merry Christmas,” for example, when you’re going for 100% secular.
This is not a big deal, but it did involve me slinking around, trying to hide behind displays while I slit the boxes’ little tape rounds… and then couldn’t fit the boxes back together. I was leaving a slew of half-open boxes in my wake and did feel sort of bad about it.
The only thing I can say in my own defense is that I was not alone: two employees at Kate’s appeared to be fairly busy just following around and cleaning up after box-openers such as myself.
Why don’t cardmakers print the entire inside of the card on the back of the box, in color and to scale? That way, you could flip over the box and see an exact shot of the inside panel. No more having to open the boxes to check out the cards.
Some would still crack open the packages to check out paper quality, but this change would surely cut down on a lot of this activity.
It seems so obvious. I’d be interested in learning whether there are a lot of other box-openers out there and whether the card companies have ever considered this.
All hail to holiday coolness in Grand Central Station!
For those of you who may not live in NYC, Grand Central is always a fun place at this time of year. There is a twinkly light show that plays on the walls and ceiling, music and an annual gift market that’s always packed.
This year, Sharp has parked a 26-foot high Christmas tree made up entirely of TVs in the main hall. Called the “Aquos Experience,” the tree features 43 Sharp Aquos LCD TVs that run video content every few minutes. Yesterday the tree displayed shining snowflakes that looked as though they were falling to the ground.
The company is also sponsoring the traditional Grand Central holiday light show, and holding a sweepstakes to give away all the TVs. It’s easy to register nearby. For every person who enters, Sharp will donate $1 to The HOPE Program up to a max of $100,000. If you can’t make it to Grand Central, enter the sweepstakes here online.
I think this is awfully well done. Sharp has conceived and executed an idea that creates a fun experience that fits with its surroundings. But even with their new spiffy effort, the company went ahead and sponsored the building’s most important existing holiday effort – the light show – thereby showing an appreciation for NYC’s existing traditions. Finally, Sharp chose a worthy and NY-specific non-profit in The HOPE Program, which helps New Yorkers living in poverty find jobs and become self-sufficient. The company has hit all the right notes on this one.
Only one thing I would add: Sharp staff should be walking the main hall (in addition to manning the kiosks) giving away a Sharp-branded item related to the event that’s slick enough for someone to want to keep and take home. We’ve all seen greeting cards that play music, for example – my/an idea would be to use a paper-based computer chip on a greeting card-like piece that can stand by itself on a desk or table. The chip could power an animated version of the tree… and reinforce Sharp’s name in the home in a positive, pleasant way.
When possible, offer a give-away that turns a ephemeral stunt/event into a long-term interaction with your brand in a prospect’s own home. It’s a smart, low-key way to make your brand part of the person’s (and perhaps her family’s) everyday experience. And at this time of year – when folks are buying electronics – having them look up from the Sunday circulars and see your name adding value to their own surroundings is priceless.
Well, I said it a couple days ago – the onslaught of enormous discounts would soon desensitize consumers to sales (10% off! $25 off of $100! 25% off from 2- 4am!) – and there it is in the Wall Street Journal today. Christina Binkley, who covers fashion and other categories for WSJ, writes in a big article about shopping for bargains that she’s “turning up [her] nose these days at most fashion discounts of less than 50%.” 50%!
This is not a good sign for clothing retailers and will soon spread to other categories. And higher and higher discounts are not the answer: like some foods, the more you eat the more you need to feel satisfied… until your status becomes untenable. Discounts are simply going to a create a new – lower – floor for prices overall.
So it’s vitally important that retailers of all shapes and sizes look for ways to stay present in the minds of important customers and prospects. Take Saks, which is suffering some awful results as well as huge discounts: do exclusive store events. Consider refer-a-friend vehicles where a customer can get something special for getting a friend to stop by. Increase your email volume and, where you have past shopping behavior information, try to customize the content. For the woman who has even looked at Bottega Veneta bag on your website (let alone bought one), see if one of the designers at Bottega would be willing to contribute monthly advice about how to purchase and maintain quality leather products.
It’s not always about how much money you spend on a customer – and the sad fact is that all the discounts in the world may not create sales right now. But you want to keep a customer warm for the someday when he/she is willing to spend money again. Keep in touch. Demonstrate value. Do things like the Bottega example above that don’t appear to be a sales pitch and allow the recipient to feel special.
The small ideas on the fringe about being “nice” to customers may be worth far more than that for some time to come.
One of my favorite newsletters has labeled the trend toward brands offering special perks as “perkonomics.”
Trendwatching.com points out that while the credit card, travel and hospitality industries have relied on rewarding good customers with cashless privileges (seat and room upgrades, etc.), most other businesses and brands have not seized the same opportunity.
I think there are many many reasons why perkonomics is going to become increasingly important: (a) I haven’t heard anyone talk about this, but I believe that consumers are going to become desensitized to discounts. As we dive into this recession, everyone is offering dollars or % off in big numbers and – over time – this will lose its power. The prevalence of discounts will simply serve to lower overall price expectations. It’ll take more to jumpstart a consumer’s loyalty. (b) Have you noticed that it’s harder just to navigate the world lately? Companies under pressure tend to cut services and benefits. Those who can offer experiences that cost them little to nothing will see appreciation that far outweighs their actions. (c) Competition means that it’s too easy for a consumer to dump you and move on. The little things are what will keep them. (d) There are still segments with cash and market power who – at least for awhile – may wish to be less ostentatious with their purchases. Brands need to stay fresh and memorable (and appreciated) during the downturn.
I’ve been thinking about this since a friend told me that Visa Signature offered exclusive lavatories to cardholders attending a big music and arts festival. Would you expect a special potty from your credit card? No. Will you always remember the huge lines for the regular icky bathrooms while you were treated to a better experience? You bet.
Whether it’s a dedicated line at club, a special reservations phone number at a restaurant or a free bottle of water in a hotel room – these are the things that consumers will remember and that cannot be “bought.”
eMarketer has reviewed some recent data indicating that Millenials are “born with keyboards in their hands”: that is, that they view the world in a fundamentally different way that assumes the use of hand-picked technology doo-dads to handle just about everything.
You can see the tremendous shift here, particular toward the use of cell phones (and – my opinion – the increasing pressure on phone and cable companies to deliver well-priced digital/cellular phone services packages):
Resource Interactive points out the particular impact of this shift on how Millenials shop and “pre-shop” with their friends. Coupled with an addiction to MySpace, Facebook and other platforms that bring people together, technology has made it simple for friends to get advice from each other (a “communal” blessing, if you will) before making a purchase. “The actual shopping activity in the store… becomes a social activity for them,” says Mila Goodman, the shop’s director of experience strategy.
All of this means that retailers have an opportunity to build brand awareness and loyalty by making it easy and fun to shop “together” using mobile phones and other devices. Among the many reasons that Beacon didn’t work for Facebook is that it didn’t draw me into my friends’ thought process and experience around purchasing something; the site simply reported that my friend had done so. No fun.
Outdoor, magazine, online and even TV advertising could feature a barcode or some other tag that a person could photograph and send to friends; that tag arrives with information about the product and maybe a special offer. It should be easy to download a tiny piece of code and send it along. And when you get someone all the way into your store? Wow: make it count. Give away ringtones, wallpapers (Chanel wallpaper, girls?), sign-ups for special store events and discounts… I think all stores/retailers should eventually make it simple to email high-res product photos that come along with just a bit of sales and promotional info.
If you had the opportunity to get target customers talking about you on their cell phones with every individual ad viewing or store visit, what would you do?
GIFT CARDS: “No better purchase says, ‘I did all my shopping at the gas station.’” Nice! I still like 
