Archive for June, 2009

5 Ways to Avoid an Anti-Social Media Campaign

Wednesday, June 24th, 2009

The first megaphone or bullhorn as it became known, was invented by Thomas Edison in the latter part of the 1800’s. The obvious intent was to amplify the human voice, so an individual could be heard above the roar of the crowd. Throughout its history, the megaphone has been used as a means of directing, controlling and inciting people to action- often whether they wanted it or not. Regardless of the specific use, the common effect was to interrupt, override and dominate the situation. I mean after all, it’s hard to have an intimate chat with someone who’s using a bullhorn.

When improperly approached, social media can be a lot like a bullhorn. Some companies and individuals, see social media as a means of amplifying their voice above the crowd and interrupting the dialogue only to further their own agenda. They burst into social networks ignoring the current conversation, broadcast a self-serving message and move on. They refer to social media as “social marketing” and think of it as a modern-day home for the thirty-second commercial … in your face whether you want it or not. The net effect of this approach is negative.

Good social media is not about dominating the conversation but rather furthering it. The point isn’t to amplify your voice but instead to add your voice, enriching the collective dialogue. It’s not a tool to broadcast thinly-veiled product and service plugs for your company; it’s a forum to share your experience with people who care. Smart companies know this.

My advice to retail clients who are just starting out in social media is:

1. Share with those that care: Using forums like your personal Facebook network to broadcast company marketing messages is like handing out business cards at a wedding. You probably won’t gain customers and you might just lose friends. Luckily, there are networks or nodes for just about every specialized interest you can imagine. If you sell shoes, talk to people who are interested in shoes. If you sell software, join tech forums and share your expertise with people who need your help. Chances are only a small percentage of your friends are potential customers anyway so why jeopardize your relationship with them? If your friends choose to support you, your company or brand, then it’s a win-win.

2. Don’t think of it as “social marketing”: Social media is merely content in various formats created by ordinary people using scalable technologies. It’s not necessarily marketing. In fact, part of the power of social media lies in it’s dissimilarity to conventional media and marketing vehicles. First and foremost your social media should share helpful, useful content that people like. Over time you’ll gain trust and influence. Eventually this earned influence may convert to business but this shouldn’t be your starting goal.

3. Don’t mistake viral for fast: There’s a misconception that social media spreads ideas like wild-fire. This isn’t always the case. Don’t become frustrated if you don’t get an immediate response to your message. It can take time and you need to resist the temptation to hard-sell in an effort to speed it up. Hard-selling will in most cases, have the opposite effect.

4. Be transparent: If there’s an idea, product or service that you believe strongly in and want to sell people over to, then be honest about it. There’s nothing wrong with that. People will trust you because your motives are sincere and transparent. However, don’t try to cleverly or discreetly work promotional activity into the conversation. It’s conspicuous and you may end up losing the trust you’re working so hard to gain.

5. Measure relationships: Don’t think of success in terms of clicks, page-views or unique visitors. It’s not about quantity, it’s about quality. Shoot for a hundred people that love you rather than a thousand people who tolerate you. In time you’ll notice your ideas and content are being shared, followed and commented on. This is by far the best measure of success. Quantity will come but only through quality.

Don’t look to social media to amplify your voice. Instead, use it to share meaningful thoughts, ideas and content with people who care. Remember, a whispered word from a trusted source will drown out the loudest bullhorn every time.

The Future Hates Mediocrity

Saturday, June 13th, 2009

I was reminded recently of a really good book I read several years ago called Going Shopping by Ann Satterthwaite, a city planner from Washington D.C. It’s an historical account of shopping formats through the ages- an archaeological dig, so to speak, into the evolution of retail. mediocre2

It’s fascinating to see how and why certain forms of retailing moved in and out of consumer preference over the centuries. What`s really worth noting though, is that every form of retail that has ever existed exists today, to some degree.

We still have some flea markets and bazaars in the world. The downtown department store, although not without challenges, soldiers on. The suburban mall concept continues today and is morphing into some unique and interesting lifestyle formats. Small, independent shops continue to account for a significant percentage of the total store count and of course e-commerce is thriving. So despite centuries of change and evolution, not a single form of retail trade has become extinct.

What is clear however is that only the strongest have survived and those that have managed to withstand the test of time have had one thing in common – they’ve been remarkable. Not necessarily remarkable at everything but definitely remarkable at something.

For Le Bon Marche in Paris, it may be the sheer beauty of the store design that set them apart. At Ritz-Carlton hotels, legendary service may be the differentiator. For the Grand Bazaar in Istanbul it might be its hyper-experiential environment and for the St. Lawrence market in Toronto, it could be the eclectic mix of people and products.

Voltaire once said, “The perfect is the enemy of the good” and I’ve known some retail executives that have openly subscribed to this idea. They’ve suggested that in the pursuit of perfection we can impede progress towards an outcome that is sufficiently good. I don’t agree. I would argue that good is in fact, the enemy of survival. What’s notable about good?  Good things happen to us every day and the following week we can’t recall one of them. Every day good businesses open and good businesses close. In some cases we don’t even notice that they’re gone. The truth is, good is mediocre and the future hates mediocrity.

Try this… instead of setting out to be good at a lot of things, put your mind to being remarkable at something. The future likes remarkable.

No Time For Branding?

Thursday, June 4th, 2009

I read an article recently, aimed at giving guidance to independent retailers in these unusual economic times. Among other things, the article declared that “A recession is no time to focus on branding”. I actually had to stop to make sure I read it correctly. A recession is no time to focus on branding? Hmmm…no_branding_21

Was the author implying that a more appropriate time for brand-building is when the economy is strong? Let’s consider that for a moment. Actually, before we get to that, let’s see if we can first agree on what the heck branding really is?

Webster’s says that branding is “the promoting of a particular product or service by identifying it with a particular brand.” If we accept that definition, then branding would seem like something you’d always want to be doing, wouldn’t it? I mean after all, shouldn’t you always be working to promote your product or service? And shouldn’t you always be trying to identify your product or service with your brand? It seems logical.

I think the problem is that in many companies the term branding has become code for things that aren’t sales focused. There are those that actually believe that branding and sales are mutually exclusive activities and that you can focus solely on one or the other. I think that’s like saying that breathing is more about inhaling than exhaling. You can’t do one without doing the other.

For example, in an effort to bolster sales during the current recession, luxury bridal clothier Vera Wang reportedly cut the average price of her wedding gowns by about 30%. So, is this sales or branding? Sure the move is aimed at generating sales in the short term but will it have an impact on the brand in the longer-term?

Changing your pricing structure is a brand statement. I’m not suggesting it’s wrong. I have no idea what the situation is at Vera Wang and I’m sure they know their business better than I ever will. What I do know is that a price cut is branding.

I used to work for a company where Marketing and Sales were two separate camps. Marketing firmly believed its job was to build advocacy for the brand by building an emotional connection with the consumer. They felt strongly about avoiding price promotion to drive sales and loyalty. The Sales group believed that their role was to win space and increase market share. They saw their job as winning customers over by offering dynamic product features at compelling prices.

Sales would accuse marketing of creating high priced “fluff” that didn’t drive revenue and Marketing blamed Sales for commoditizing the brand by focusing customers solely on product and price, which they felt in time, would lead to the company’s undoing.

Consequently, the company would go through this schizophrenic sort of business cycle where we’d spend boat loads of money on brand building activity in the first 6 months of the year and when sales weren’t immediately forthcoming, any remaining budget would get handed to Sales. Sales would promptly use it to stage “dollars-off” promotions and other discount schemes, which not only didn’t win back much ground, but also tended to have an adverse affect on overall brand positioning. Each year we’d do the same thing, somehow expecting the result to be different. It wasn’t.

What we didn’t recognize at the time was that everyone in both Sales and Marketing was absolutely correct about their roles. Yes, Marketing should be working to build brand and product awareness and an emotional connection with consumers and yes Sales should then leverage that brand awareness and loyalty to gain consumer acceptance and win market share. It isn’t about sales or marketing, it’s about sales and marketing. The truth is, branding and sales are inseparable functions and the best retailers truly understand that.

Wait a minute. Did I just say that Sales and Marketing are the same thing? Absolutely not. Sales and marketing are two very different roles. What I am saying however is that in order for either to be successful, they have to be performed in concert with one another. Like two halves of the whole.

As for the idea that “a recession is no time for branding”, it just doesn’t make sense. Even no branding is branding. Perhaps what they meant to say is that a recession is no time for ineffective branding and with that I agree wholeheartedly.

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