Monday, December 5

Peeking Inside Their Minds: Shopper Profiles

According to a new study by Integer Group and its research partner Decision Analyst, there are four primary behavioral patterns that consumers adopt when shopping for big ticket items that range from home remodels and furniture to automobiles and vacation packages.

Assuming the study has merit, it may also reveal that recessionary pressures have shifted consumers away from status shopping and more toward being conscientious or frugal. I've parsed some of the study results along with four personality styles that have been identified in previous marketing efforts.

Four Predominant Shopping Behaviors. 

• Fretting Frugals (31 percent). They find shopping as enjoyable as a root canal. They are nervous about making the right and wrong choices, are extremely price conscious, and easily overwhelmed. They are the most likely to delay big purchases, not over price but because they want to make the right decision.

For years in marketing, I was taught to consider this behavior style as consistent with analysts, people who pore over lists and make comparisons based on detailed decisions. Price isn't what holds up the purchase as much as making a decision. They are also the least likely to share purchasing decisions to avoid criticism, preferring to look for information that affirms their choices.

• Experience Lovers (29 percent). They consider shopping a labor of love. They are also the most likely to become brand loyalists, convinced that the decisions they make are the right ones and will always be the right ones. The experience is as important as the products they buy.

This might be a new take on the modernized supporter, people who consider everyone's feelings in the household before making what they believe is the right decision. They value their role as making the decisions, carefully balancing the needs of everyone.

• Passive Purchaser (25 percent). They are the most convenience-driven consumers, looking for quick and easy purchases. They do not waste time researching products and are not loyal to brands, but rather make their purchasing decisions based upon intuition.

This most closely resembles a controller, someone who is especially adept at making decisions not because they enjoy it but rather because it needs to be done. They want to know the bottom-line price and benefits without wasting any time.

• Social Adventurer (15 percent). They believe that everything bought is a reflection of style and personality. They are also most likely to tell others about their purchases, mostly because their purchases reflect who they are as a person.

Based upon previous marketing models, they are most like promotors, people who are always looking for the newest ideas, products, and services. They are not brand loyal, but do take more time shopping to find products that seem to be one step ahead. With social networking only recently earning mass adoption, they are well-experienced in letting others know about positive and negative experiences.

Why The Research Might Matter.

Although I'm never fond of the label approach to marketing, the study could be significant in that shopping behaviors have remained relatively equal as a percentage of the population. This study suggests that the social adventurers (promotors) are diminished, perhaps being driven toward conscious or frugal behaviors due to economic pressures.

Such a shift in behavior would be consistent with other studies. Both frugal and conscientious buyers are more likely to seek stability and security, more likely to embrace a new economy, and more likely to appreciate the shopping experience. However, focusing on these behaviors might not be as useful as considering attitude or other psychographics that can help make marketing decisions.

For too long, marketers have been focused on demographics and reach as the two primary indicators in determining their marketing decisions. While such methods can work, they tend to be subservient to focusing on topical interests and attitudes that transcend age, gender, and other demographic bias.

Friday, December 2

Writing Santa Claus: When Mail Really Works

In one of the best programs ever conceived by the United States Postal Service (USPS), yesterday marked the first day of its annual "Letters to Santa" program. The campaign has helped fulfill holiday wishes of children and their families for nearly a century.

Through the annual letter-writing program, members of the public and charitable organizations respond to children's letters addressed to Santa Claus, the North Pole and other seasonal characters. The program is especially meaningful given how much people rely primarily on electronic communication. Receiving a letter, especially from Santa or Rudolph, can be an unforgettable experience for anyone.

"We are delighted to once again kick off the holiday mailing season with the start of our annual 'Letters to Santa' program," said Postmaster General Patrick R. Donahoe. "The Postal Service is gearing up for a huge mail delivery to the North Pole to help Santa and his elves get ready for the big day."

The tradition started in 1912 when then Postmaster General Frank Hitchcock allowed postal employees and citizens to respond to the letters in the program that became known as Operation Santa. In 1940, mail volume for Santa increased so much the Postal Service invited charitable organizations and corporations to participate and provide written responses to the letters and small gifts to the children who wrote them.

While the exact number of Operation Santa letters is unknown, the USPS estimates it reaches into the millions (New York City handles 500,000 letters alone). The program works because postal workers sort the letters between those that wish Santa a happy birthday and those children who are in need. Those from children in need are then adopted by individuals and organizations, who respond to the children and often mail them a gift based on the letter (volunteers are responsible for the gift and return address).

All names (except the first name) and location references are blacked out before volunteers and organizations adopt the letters to protect the identity of the senders. If you would like to participate in helping fulfill some of the wishes of children in need, please read the USPS letter adoption guidelines.

In lieu of having a letter sent in for adoption, the USPS also allows parents (and others) to mail self-addressed stamped letters (presumably written as Santa Claus) in larger envelopes to a specific address in Alaska. The postal service will send the letter back with a North Pole postmark. For more information, refer to the USPS Fact Sheet. To receive the North Pole postmark, letters must be sent prior to Dec. 10.

There are other commercial enterprises that offer paid Santa letters and gifts, but USPS is not associated with any of those programs and is the oldest Letters From Santa operation in the United States. It is generally managed by local post offices. The USPS has a dedicated page for the program.

Before any questions about whether the program is a wise investment of taxpayer dollars, it's important to note that the Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. It is a self-supporting government enterprise. Most people are unaware of this fact.

Wednesday, November 30

Projecting Media: How One Source Becomes Two Stories

Depending the article you read, the next generation of television viewers is either growing or in jeopardy.

The Wall Street Journal reports an average of 5.8 million children between the ages of 2 and 11 watch television (broadcast, cable, and live) at any given moment. It's 1.7 percent higher than last year. The article concentrates on the big losses experienced by Viacom's Nickelodeon (down 15-20 percent) and Time Warner's Cartoon Network (down 11 percent) but cited gains in other channels, including the Disney Channel (up 5.9 percent) and The Hub (up 50 percent). The article alludes to more kids watching adult programs.

Ad Age, using the same data, ran a different story. It reported that Nickelodeon, Cartoon Network, and Disney XD all experienced heavy declines, and only hinted at the gains at Disney Channel and The Hub, dismissing the latter channel's gains because the comparisons are drawn against the low-rated Discovery Kids. The article then shifts to television's increasing competition from other media, including social networks and gaming. It also cites a Kaiser Family Foundation study that says children ages 8-18 watch 25 fewer minutes a day.

What is especially interesting about the two stories is that they were prompted by the same research from Nielsen. And yet, the overriding slant of the Wall Street article is that Nickelodeon is in trouble despite growing viewership, underscored by the channel's plea to wait for upcoming fresh episodes. Whereas the overriding slant of the Ad Age article is that the entire youth audience is slipping, with Nickelodeon leading the way, even if Viacom claims a ratings glitch.

Expect both articles will be shared with new slants. The Hollywood Reporter already spun off The Wall Street Journal piece. Ad Age has had fewer takers, but mostly because what might frighten marketers isn't likely to frighten parents. The more compelling observation is how media is shaped and what that means.

The consequence of journalism's time crunch is accelerating different realities. 

I've been fascinated with the changing shape of media for some time, especially as it pertains to perception and reality. And while we can only infer that the journalists have different world views of television, comparing the two stories demonstrates how validation is increasingly prevalent in media, not only for how we consume media but also in how professionals report it.

In fact, there is enough content on the Internet today to prove that children are both watching more and less television than they did 10 or 20 years ago. And for some authors, it is even critical to prove it one way or another. After all, there is no reason to write about the dangers of television to kids (or the benefits of television* before railing on the negatives) unless it constitutes a threat or benefit.

But what that really means, as a marketer or parent, is the emphasis need not be placed on the delivery system (television) as much as the programs being delivered. The same can be said for how we consume information and make informed decisions, with the burden of fact-checking falling less on reporters (citizen or professional) than on consumers.

In the case of the two articles above, the net takeaway might be that Ad Age is correct in that kids spend less time in front of the television but more time with a variety of media, with a heavy emphasis on multitasking. But where The Wall Street Journal is right is in that some channels are losing young viewers to better programs, especially those with more engaging or interesting content. More adult shows included.

Equally important for marketers, they might place more measure on the psychographics of these viewers, asking tough questions like: Which types of kids are watching Spongebob and which aren't, and are those kids more inclined to like this product or that product? Likewise, parents don't have to be passive about programing, but rather take some time to balance what is appropriate while appreciating that kids might not be as corruptible as we think.

Monday, November 28

Scoring Social: The Rise And Fall Of Klout

You all know the story, because it's all very true — there are plenty of marketers who dream of the day that they can give us all scores. It would make their lives easy, terribly easy you see: if they could base who gets what for which price or what fee.

If we only had scores to sort out their big mess. Never mind names or merits or interests or lives, just a list of our scores and a button to click. That would be enough, it's painfully clear. One score to determine who gets what prizes and perks, what service and more.

The Crazy Story Of Blogs And Social Media.

Then one day it happened, some will remember, when Clout-Belly bloggers were sometimes called stars. Everyone else, those without content on thars, were called Plain-Belly people, their reach not so far.

Now, being an online blogger wasn't always so special. Compared to actors and inventors or directors and authors, it was really quite small. In fact, you would think such a thing wouldn't matter at all.

But it did. Because they were stars, all the Clout-Belly bloggers would brag, "We're the best of all people on social media beaches." And with their snoots in the air, some would sniff and they'd snort. "We'll have nothing to do with the Plain-Belly sort."

When Clout-Belly children went out to play ball, could Plain-Belly kids get in the game ... ? Not at all. You could only play if your parents stayed up and blogged through the night. And those Plain-Belly kids had parents without any online might.

So when the Clout-Belly bloggers received their frankfurter perks, or picnics or parties or free root beer floats, marketers never invited the Plain-Belly people. They left them out in the cold, behind the red ropes. They kept them away, dashing their hopes. And that's how things went, year after year.

And then one day, it seems ... while the Plain-Belly people were tweeting and talking, sharing and squawking, some of them daydreaming of the day they might start a blog to earn more clout, a stranger zipped up with this new thing called Klout.



The Brief And Sordid History Of Klout.

"My friends," he announced in a voice clear and keen,"My name is Joe Fernandez. And I've heard you're unhappy, but I can fix that. When my mouth was wired shut, I became the Fix-It-Up Chappie. And I've come here to help you, I have what you need. My price is quite low and I work with great speed. Better than that, my idea is one hundred percent guaranteed."

Then, very quickly, Fernandez did shout. He put up his algorithm and started to tout. "You want to be stars like the Clout-Belly bloggers ...? My friends, you can have them for a price pretty cheap. Just give me access to your data, feeds, and friends when you tweet."

"Just open your accounts and hop right aboad!' So they clamored inside and signed on the line. And the algorithm bonked. And it jerked. And it burped. And then it bopped them about. They didn't mind, because the thing really worked! When the Plain-Belly people popped out they had Klout scores. They actually did. They had Klout upon thars.

And then they yelled at the ones who had clout at the start. "We're exactly like you! You can't tell us apart. We're all just the same, now, you snooty old smarties. We don't even have to write a stitch, you crazy old coots. We just share and type nonsense, and we get all the perks, like new shoes or new boots!"

"Good grief!" said the ones who had worked right from the start. "We're still social medial gurus and they're still just the masses. But, now, how in the world do we know it? If this kind is what kind or that kind is this kind and this kind is what kind then I think we need glasses!"

Just then, up came Fernandez with a very sly wink and he said, "Things are not quite as bad as you think. So you don't know who's who? That is perfectly true. But come with me, friends. Do you know what I'll do? I'll make you, again, the best kinds of tweeps with real social media reach. All I have to do is change my secret formula."

"Clout-Belly bloggers are no longer in style," said Fernandez with a smile. "What you need is a trip through my Clout-to-Klout dumb-it-down kettle. This wondrous contraption will change clout to Klout, and we'll score you the same, but with a nod to your mettle."

And that's what he did, lickity-split. They signed up for Klout with the same conditions and poof. Their once Kloutless accounts suddenly earned scores through the roof!

"Ha ha," they declared, with yell of great triumph. "We know who is who now, and there will be no doubt. The best kind of online gurus are those with high Klout!"

Then, of course, those who had just gotten scores were frightfully mad. To have a lower score was now frightfully bad. But in like a flash, Fernandez was there. He invited them in for a transparency fair. He told them all they needed to know about scoring, or so he said. Keep busy online, today 'til you're dead.

"That's right. It's all very easy," he said with a grin. "I'll change the influence scoring here and there on a whim. You just keep typing and sharing and shouting. I've got the contracts to put you in marketing."

And then, from then on, as you can probably guess, things turned into a terrible mess. All the rest of the day and on through the night, the Fix-It-Up-Chappie played them like a kite. Tweet this, post that, plus this, and add that. And through the networks they charged, opening them all to get better scores. They kept tweeting perks, posting plugs, and adding plus ones; no time for friends or thinking or fun.

And soon, the whole thing was confusion, their heads spun up on a spool: which one was this one or was this one really that one. Or which one was what one ... and what one was who. But none of that mattered. Because all through the night and all through the day, Fernandez was raking it in on the backs of those people who stopped talking to friends. And he laughed and he laughed, from his perch of free perks, "you can teach them new tricks, but you can't teach them about worth."

Now, I would like to say that it all ended that day. That people became just a little bit smarter. But unfortunately for us, humans aren't like Sneetches who learned something new. That the size of your worth is based on the friendships you make, and not your score, status, or hue.

Related Reading From Around The Web. 

Why I Quit Klout by Schmutzie

Why I Quit Klout by Matt LaCasse

Why I quit Klout by David Kaufer

Why I Quit Klout by Ben Loeb

Why I Quit Klout by Botgirl Questi

How To Get Your Profile And Data Completely Disconnected From Klout by Danny Brown

Feel free to add a link to your own "Why I Quit Klout" post in the comments. We'll approve them. Special thanks to Dr. Seuss, whose original story "The Sneetches" inspired this satire about online influence. The Klout story is amazingly just like it, maybe exactly like it if people let the concept get carried away rather than focusing in on what's more important in life.

Then again, a few people won't have it. After quitting Klout, some have even suggested banning marketers who participate. If that ever happens, then Klout will learn about scoreless influence.

Wednesday, November 23

Thanksgiving: How Social Media Is Like A Turkey

Sometimes social media is real time communication, which means the timing of the message is just as important as the message itself. I was reminded of that yesterday as I was finishing up a 1,200-word column that I was going to title Occupy Thanksgiving.

The piece is decent, and perhaps more personal than I usually post on this blog. The topic was just a little reminder that keeping your focus on scarcity can be detrimental whereas being grateful for the little things in life can help you wake up happy every day, even in the face of tragedy. I know. Despite many tragedies and near tragedies, I have a lot to be grateful for. And I hope you do too.

I still think it's an important topic, but the timing isn't right. Nobody needs too much food for thought before a long weekend. So I shelved the column for another day and set to work on something light — a slow burn satire of sorts for all those claims that social media is like one thing or another.

So, in honor of Thanksgiving in America, why not make social media like a turkey? It's not all that different when you really think about it. And in some ways, it's even better because I can chuckle at the absurdity of it and you won't leave feeling bloated.

How Social Media Is Like A Turkey. 

• Decide On A Recipe. There are hundreds of different recipes to make a successful turkey, ranging from maple roast with gravy to honey-brined smoked. It doesn't really matter which one you decide to make, but it's always a good idea to know what else you plan to serve and if your guests have any preferences. Right. Your turkey is part of a bigger plan.

• Defrost Before Cooking. Even if you know what kind of turkey you want to cook, part of your plan requires a defrost period. If you start too cold, your turkey will never be fit for consumption. Slow down, put the bird in the refrigerator, and let it thaw, about 24 hours for every five pounds. For social media, this phase is listening.

• Stuff With Contents. Start combining some of the ingredients you plan to stuff your turkey with, whatever it might be. Maybe you like onions, mushrooms, celery, green pepper, and bread crumbs. Some people like vegetable stuffing, other people like cornbread stuffing. The important part is to pick the contents that complement your turkey.

• Roast Your Turkey. Roasting a turkey takes time. You cannot expect a 20-pound turkey to cook in half an hour, not even if you try to rush it. It takes time and constant care, basting so that neither the turkey nor the contents dry out or, worse, are served undercooked. It's true. Undercooked turkey makes people sick.

• Prep The Meal. It used to be easy because all anyone had to do was take care of the turkey. But nowadays, people want a little bit more. You have to cook the rest of the meal. When the turkey is roasting and just starting to attract attention it is the best time to add corn, cranberry sauce, potatoes, and dinner rolls. You don't have to serve everything. Focus on what other social sides they really enjoy (e.g., if nobody eats cranberry sauce, don't serve it).

• Serve It Hot. Serve everything at precisely the right temperature, usually warm and steamy. In cold weather climates, people will look forward to the meal all the more. Just don't expect everyone to come to the table at the same time. Even though everyone will eat the turkey, it really is the least important part of Thanksgiving. Family members are busy catching up and many people enjoy watching the game.

• Say Grace. When many people hear the word "grace," they immediately think it implies faith. For many people, it does. For other people, not so much. You make the call as appropriate to you and your guests, but the general idea is still valid. If you are lucky enough to have people interested in your turkey dinner (as opposed to all those other turkey dinners out there), be grateful not expectant.

• Enjoy The Company. The bigger the party, the more distractions. There are bound to be tiffs, spills, splatters, and complaints at some Thanksgiving dinners. Take it all in stride. For the moment, these are your people — your family, friends, and acquaintances — and they deserve your respect. Despite the way some experts feel, it's not polite to have people show up for dinner but exclude them from pie.

• Reward The Heroes. While every host takes the time to treat every guest as equals, there are always those times when there just isn't enough of something to go around. Do the best you can. One drumstick might go to grandpa because it's the only part he eats, but giving one to someone under ten can make an impression for life. There are lots of these moments, right down to breaking the wishbone.

• Cleanup And Feedback. Ask your guests how they liked the meal and take notes for next time while cleaning up the mess and pushing a few leftovers out the door. Thanksgiving is just like that. There are always some links to be fixed, comments to approve, and people to thank. You have to love every minute of it because you invited them, remember?

Oh, and one more thing. Measure success based on how well you served everyone who attended and not by the number of footprints you have to vacuum off the carpet. Social media is about quality more than quantity, and some days it's hard enough to just keep up with everyone.

But more important than measurement, smile and be thankful. If you can't remember that, then sooner or later, you're likely to be the only turkey left. Happy Thanksgiving. Enjoy the long weekend. We'll have something up on Monday.

Monday, November 21

Developing Presence: Brand Relevance

You can read about it almost anywhere. Social media has changed marketing forever. Social media has changed marketing campaigns. Social media has changed brand marketing.

There are literally hundreds of articles about the impact of social media. I've written a few posts on the subject, well before before social media became the catch phrase for anything online. But I still find myself asking if it really changed marketing. And if it did, then what did it really change?

Did social media really change anything?

To really understand what social media changed, it might be useful to consider the most significant change to communication prior to the Internet. That change would be the introduction of television.
In 1941, watchmaker Bulova paid $9 for a 20-second television spot before a baseball game. The graphics weren't anything special, but the message was clever: America runs on Bulova time. From that day forward, some people argued that television changed marketing.

After all, television advertising became the most effective mass-market platform on the planet. Companies could buy up local, regional, national, and even international spots to deliver relatively quick memorable messages, ideally, in between segments of programming chosen because of their ability to reach particular audiences based on demographics and psychographics.

But did television advertising really change marketing? 


Those who argue it did, probably don't understand marketing and advertising as much as they think they do. Television did not change marketing as much as some people think it did.

It didn't change the products. It didn't change the mission or vision of the companies that bought spots. It didn't change physical distribution channels. It didn't change the importance of developing strong contrast points or a unique selling proposition between one product and closely aligned competitors.

So what did it really change? Mostly, it changed message delivery.

And social media? Sure, it goes further than television did. After all, some companies exist solely because of the Internet (just like some solely exist because of television). But, by in large, social media didn't change marketing as much as it did message delivery, but one step further than television.

What is social media and why does it fit within marketing? 

Social media describes technologies that people use to share content, opinions, insights, experiences, and perspectives by interacting with each other in an environment. It is one of the few communication vehicles that empowers people and companies with the potential to become broadcasters with the ability to reach people on a one-to-one, one-to-some, and one-to-many basis. So yes, it is a powerful platform.

But there are many things it did not change about marketing. It did not change most products. It did not change most missions and visions. It did not change the need for a strong contrast or unique selling proposition.

What it did, for the first time on a mass scale, was create an environment that allowed marketers to receive near real-time feedback on their various marketing messages. And, it helps to hold them accountable.

When a company changes a logo, people might have an opinion about it. When a company offends prospects, social media can deliver a negative return on investment. When companies fail to deliver on customer service, the complaint doesn't exist in a void.

But even within this context, that doesn't change marketing ideologies. In fact, there are scores of social media companies that neglected traditional marketing. So what does social media really change?

Social media adds brand relevance to the marketing mix. 

Aside from real-time feedback, social media offers a very distinct marketing advantage. But most companies never consider it. In fact, this is why small businesses have mostly stalled with social media and why social media has mostly stalled with big brands.

Most companies invest all of their online activities in broadcasting mass media messages online. But what most companies miss is that social media gives brand relevance equal weight to brand reputation.

Coca-Cola makes for a great example. It might be one of the most celebrated brands online, but the perception does not measure up to reality. Coca-Cola has 36 million fans on Facebook but less than .2 percent are active. Why? Because Coca-Cola puts out a steady stream of product-centric messages, the least interesting messages on the Internet.

"Do you remember your first Coke?" "Rumor has it only two people know the secret ingredients of Coca-Cola." "Make a sour lemon smile - pop it in a Coke." ...

The monotony of it all is almost overbearing. It's like going over to a friend's house to talk about how great they are, every single day. Even the most once loyal friends would eventually burn out.

It's understandable. Brands and small businesses have a hard time talking about anything else. They want to push product. They want to drive sales. They want it to be all about them, every single day.

Except, this thinking runs counter to online communication, with consumers (not companies) dictating which topics they'll talk about online. The burden to prove brand relevance belongs to the company.

How to demonstrate brand relevance within topic spheres. 

For most companies, it need not be difficult. Scanning mission statements or mottos of Fortune 500 companies, some have logical starting points. If Albertsons wants to make life easier for its customers, it could introduce new products, highlight healthy choices, and share recipes. Estee Lauder has no shortage of natural and retail beauty insights, especially those used by celebrities and consultants. Mattel has no shortage of popular and nostalgic content to draw upon. And so on.

But it doesn't have to be this obvious. Social media can further any number of communication goals, ranging from shifting public perception (e.g., environmental issues) to becoming a subject matter expert.

Or, it might be simple. An Italian restaurant in Las Vegas might consider cooking, culture, and proximity as topics. An eco-tourism company could engage in topics like environmental issues, history and culture, or photography and art. Accountants can share insights into wealth management and legacy planning. And so on, all while staying true to their mission and vision.

How to increase brand relevance is instinctively a marketing challenge, especially because the solutions are as varied as the organizations operating within any market segment. In fact, it's the same approach employed by so-called influencers who have risen to have some sway within their subject areas.
 

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