Understand Sentiment Before Asking for Opinions

A few months ago I wrote about the perils of crowd-sourcing and using open ended platforms to engage consumers.

Starbucks UK did not read the post.

They recently launched a campaign using the hashtag #spreadthecheer to promote itself over the holiday season.  What the marketing department may have forgotten is that the Brits are very upset with the company after it was recently revealed that they lied to investors and dodged paying corporate taxes.

The Twitterverse reacted accordingly and used the opportunity to bash the company and promote other coffee shops .  They also broadcast the tweets real-time to a giant screen at a museum.  This was probably not the type of engagement the company had in mind.

They (and you if you are a brand thinking about doing something like this) should keep on top of sentiment and understand what the pulse is.  Conducting active social listening is a must have for any brand to understand the feelings of consumers in the marketplace.

There are a variety of tools and measurement techniques that must be used whether you're going to be engaging consumers online or not.

Admittedly this could be a symptom of internal controls at Starbucks (Marketing vs Analytics), but it still doesn't make it ok.

Using Shazam to Engage Consumers

On a radio ad this morning, I heard something I have never heard before.  A retailer was promoting a sale of watches and didn't start trying to say as many numbers and words possible within their 30 seconds.

Instead, they gave the premise of the sale (30% discount on designer watches) and directed people to use Shazam to be linked to a page with the full details.

Shazam is normally used to find out the name of songs.  Hold your phone to the speaker and after a couple of seconds it will tell you the name of the song and artist, show the YouTube video and link out for you to buy it on iTunes.

But this usage is great innovation as marketers constantly struggle with two major issues;

1. Having too much to say
2. Getting consumers to go beyond the ad

This addresses both issues.  By using Shazam, they don't have to ramble on about the details of the offer.  The page they are linking to can do that.  The app can recognize the digital signature of the ad and direct people accordingly.

They can measure the success of the radio ad in directing consumers to their website (which hopefully includes a deal specific landing page)

Other mechanisms like QR codes and URL shorteners also do a great job of accomplishing this.  The starting point is different (poster or tweet), but the resulting engagement is the same.

There will be an issue with people getting their phone out, starting the app and tagging the ad which may result in some missed opportunities.  But they are still way farther ahead than rattling off all the deals and hoping people go to their store or website later.

Invest in your Customers, not Discounts

The amazing thing to me about Black Friday, is why it's called Black Friday.  This annual Thanksgiving shopping frenzy typically marks the first day of the year in which traditional retailers are in the black.

Think about that.  That means they run in the red, or a deficit position, for 11 of the 12 months of the year.  What an amazingly stressful position to be in.

Deep discounting with fantastically reduced prices on key items drive the crowds on Black Friday.  Retailers are willing to take the hit on some televisions and computers to drive sales on other regularly priced products leading up to Christmas.

Love the concept, but the race to the bottom and the hysteria of the crowd is a proposition of diminishing returns.

What if instead of writing off those loss leading products, retailers invested in their customers?  Mark downs will always play a role in competing with store traffic, but think of the potential power even a small portion of that money being directed into customer loyalty / incentive programs would have.

Here is what I would do with that money.

1. Mobilize the shopping experience.  Integrating your inventory into your online / mobile experience is a must have as the smart phone has become an integral part of people's lives.  Make it a part of the in-store shopping experience.  Near field communications (NFC) and Global Positioning Systems (GPS) let us know where customers are.  Provide incentives to customers to use an app that will allow for push notifications alerting them to new information (sales, complimentary products, other customers) to enhance their shopping experience based on their physical location.  Capture their behaviour to learn what works best (and worst) in improving the experience and driving future sales. 
2. Close the transactional loop.  What makes online retailers so good at providing product recommendations and customizing offers is that they have access to all of the customer behavioral and transactional data.  This could be easily replicated for the in-store experience.  Smart shopping carts and mobile could consider in-store location, time spent in an aisle, near a category, what products are placed in the cart, and what products are purchased.  Tie individual customers to those activities through membership cards (some grocers like Sobey's are incredible at this) to create a full behavioral profile.
3. Tailor offers.  This behavioral data is critical, and if you don't have it you are not going to be engaging your customers.  Use the data to understand the needs of your customers.  Segment them, design programs for them - and market to them as individuals - like Amazon does online.  Deliver offers through mobile, email and through direct mail for certain segments.

These programs require investments from different budgets and organizationally could provide problems.  The opportunity here though is two-fold.  You can create loyal customers who don't need discounts to drive them to your store and you may be able be in the black in month one, not eleven.

Adopting Mobile; Lessons from the Taxi Industry

On my way to an appointment recently I was taking a moment to look at a building and a taxi approached me.  On it's way it gave me that familiar, brief and subtle nudge - hoping that I was in fact looking for them, and in need of a ride - a honk.

Jerking me from my momentary trance, the honk made me look, but no I didn't need a ride and I looked away.

It got me thinking about how other people and industries try to get consumers to notice their brands or services.  By shouting out their message to create awareness and hoping that we need them or have any interest.

Like the rap of the tongs on the bbq grill by the hot dog vendor, or the shaking of the cup by the guy on the street looking for change these obtrusive signals are not to far off from traditional advertising.

Shout loud, shout often and hopefully people will come to you.

The taxi industry (barring the aforementioned driver) has adapted quickly however to the use of mobile and if they can, anyone can.

Independent mobile services like Hailo let users connect with a cloud based dispatch system, that through GPS allows drivers to see available fares and claim them for their own.

Not to be overly facetious, but what a novel concept and what a rewarding experience for the customer that every industry should heed as a lesson.

Using a  mobile app to hail a taxi lets the customer identify their need on their terms, through their device, when and where they want it.  Payment, thanks and future notices all go through the device.  As a set of basic principles these should be standard to marketers and embraced through mobile.

Think of how this can change grocery shopping.  The roles of the weekly flyer driving you to your retailer and brands promoting new products on TV have well-valued, long-standing traditions that continue to drive sales.

Mobile however let's retailers know when a customer is coming to the store, when they are at the store, where they are in the store and the length of time at a particular location.  The power of this information partnered with functionality like meal planning, making your grocery lists and the checkout experience have tremendous potential to deliver the same value (and sales) to grocers.

Advancements in analytics and customer segmentation have brought customization and personalization to direct channels like email and direct mail, but there is still room for more.  Focusing on the stated need by the consumer supported by behaviour allows for more meaningful and relevant engagement.  Not shouting.

Rewarding Customers for Interactions: Dropbox

Promotions, giveaways and coupons have been standard marketing tools for decades, and will be for decades to come.  As an incentive to try a product, marketers will basically give it away.

Tried and true this technique has certainly got a lot of customers to experience new products and services, but I've never been a huge fan.  The customer has no buy in or attachment to the experience, just clipping a coupon or hunting for a deal.  As they have no skin in the game I believe they have a lower chance in converting into a repeat (at full price) customer.

I have always preached that brands need to exchange value with customers to build any relationship.  This is not a rebate, or added service at no charge.  This is a tangible item that they otherwise would have otherwise had to pay for.

Social makes this easy for marketers to do as bringing an influencer strategy down to the everyday user is very powerful motivation for consumers.  Tweet, share, repost and I will give you something for it.  That something needs to be more than "free upgrade" or "be the first to know".  It needs to be something that your company values, and by providing it to your customer demonstrate that you value their time and effort.

Kellog's executed a great campaign this summer using this approach with their Tweet Shop program.  A storefront with Kellog's products was setup and customers could "buy" items in the store by tweeting it out.  Obviously this isn't sustainable in the long term, but I'm sure they easily exceeded their campaign goals.

Dropbox does an excellent job of providing tangible, continuous value to their customers in exchange for their activity.  While their basic service (3 GB of storage) is free, premium accounts (100 GB +) are available on a subscription basis.  You can however access additional free storage through a number of simple activities. 

Connecting your Facebook account?  125 MB
Connecting you Twitter account?  125 MB
Writing feedback to Dropbox about why you love their service?  125 MB
Tweeting that feedback?  125 MB
Referring a friend (who then signs up)?  500 MB

Some math can tell us what the monetary value of that service is.  The premium account is available for $99 / year for 100 GB.  That makes the tweet (125 MB) worth $0.12.  This is a very easy cost for Dropbox to absorb and is relational to the effort taken by the customer.  Real value, for actions that have limited intrusion and are completely optional, in exchange for service.

As savvy customers start breaking this down new competitors may emerge and discover a whole new service offering.  Not to be confused with offers and product constructs like in credit cards.  This is a free service that provides additional free service for your effort.

Now, if you all rush out to sign up for Dropbox send me your email address, I could use the 500 MB.