Get Them and Keep Them

A New Online Revenue Model?

For years, many online companies have generated revenue primarily through advertising. Some rely on a combination of pre-roll and display ads, others often use simple text ads, and still others mix and match advertising formats. Their value to advertisers: eyeballs.

Yet, with the economy in a recession, even online ad spend is expected to take a hit (although not nearly as much as traditional media).

Thus, it's interesting to note that Twitter, a microblogging tool that has caught fire over the past two years and counts nearly 6 million registered users, has shunned the advertising model. 

In a recent interview with the New York Times, Twitter CEO Evan Williams said the company gets calls daily for advertising sponsorships. But it plans to instead figure out a way to generate revenues from the businesses that leverage Twitter to speak to their customers or sell products.

For example:

• Whole Food and Baskin Robbins have used Twitter to announce special coupon offers.
• Jet Blue and Tyepad have reached out to customers via Twitter to address customer service issues. (In fact, I received an email from TypePad shortly after I tweeted that I couldn't add a gravatar to this blog).
• Ford has used Twitter to set the record straight about a news report suggesting Ford managers were eligible for bonuses this year (after petitioning Congress for financial help).

Thus, it will be very interesting to see if companies will pay fees for this type of outreach. Only time will tell. But, with these hard economic times, and intense pressure to keep customers, I'm betting they will.

Technorati Tags: twitter, Ford, Jet Blue, Typepad, Whole Foods

And You Call Yourself an Ad Agency?

Two days ago, Saturday Nov. 15, Motrin released an ad that caught the wrath of the social media community. It was designed to appeal to moms, who carry their babies in slings, wraps and Baby Bjorns. But it backfired.

By Saturday night, the ad became one of the most tweeted subjects on Twitter, (a networking tool where people write 140-character messages). Moms, from all walks of life, were outraged about the tone, wording and thinking behind the ad, which suggested that wearing babies were fashion statements, and that moms did this, despite feeling  back, neck and other pain.

By Sunday, several YouTube videos appeared, with moms saying things like the ad "was disrespectful... and we should take our buying power somewhere else." Bloggers also started calling for a boycott of Motrin, according to the New York Times.

But what is most appalling to me, as a marketer, is that the ad agency that created this ad didn't know much about Twitter, per the Times article. In fact, the Times article said:

"By Sunday afternoon a few bloggers and tweeters had gotten the ad agency that created the ad on the phone, to find they didn’t know a lot about Twitter and didn’t seem to have a clue that there was so much anger piling up online."

Say what?

In this day and age, it's INEXCUSABLE that an ad agency - and marketing team - not monitor the social media conversation about their brand. It's so simple to do so, and yet so effective.

Tweetbeep, for example, can send you alerts every time your brand is mentioned on Twitter, (or whatever keywords you suggest). In fact, I have alerts sent to me whenever someone responds to my tweets.

There are also blogging tools and Google alerts that  can  provide you with posts and articles that mention your brand.

So, the fact that the ad agency, and the marketing team, was in the dark about all this online chatter is just beyond belief.

I wouldn't hire them.

In fact, I wouldn't hire a marketing manager or coordinator who didn't use Facebook or Twitter, or read blogs regularly. As this Motrin controversy shows, online conversations have a tremendous amount of influence on the brand.  And not being savvy about blogs, online networking, social media tools, etc. is a kiss-of-death in my book. 

Oh, feel free to follow me on twitter: @jdlugoz

Technorati Tags: Motrin, social media, Facebook

You Don't Have to Be Angelina - Just Add Your Photo!

I'm as self-conscious as the next gal. I can give you a litany of complaints about my looks. But, I do feel strongly about one thing: it's really important to add your photo to all your online business postings.

I don't say this because I'm in favor of beauty contests. I say this because it adds another dimension to that online post, forum comment, etc. It also makes you more approachable.

Isn't it much easier to call or email someone that you feel some connection to? And, knowing what the CEO, Sales Manager or Marketing Guy looks like, removes one barrier in the get-to-know-you process.

So, forget about Angelina. Put your photo online.

Technorati Tags: Facebook, online marketing, Linkedin, social media, blogging

Offensive or Effective Online Ad Campaign?

Ok, I admit, this ad got my attention. It's a bit rude. And, I feel a bit dissed. But not sure if this is better or worse than the other online ads for this campaign. Here are a few that I saw this morning. Any thoughts?

Tehnorati Tags: online advertising, online marketing, life insurance

Participate in Social Media?

When I was single and hoping to marry, friends and family constantly told me to "go out and socialize." Some suggested church, others said I should go to the gym, others recommended restaurants/parties, and the list goes on.

While there was a hidden agenda of finding a spouse, no one recommended that I visit these places with the mindset of finding a date. Instead, they suggested I just have fun. After all, it was far better than sitting at home. And, you never know whom you might meet.

Well, now that I'm married with three children, I'd like to offer that same advice for businesses that are not yet participating in social media, like Facebook, Twitter, Linkedin and others. These are all great places to network with others who have similar interests or needs. And, they are often wonderful ways to stay in touch with clients/customers, and tie them closer to the brand.

Of course, there are behavioral rules for social media participation. Like dating, it's a bad idea to focus solely on one thing, in this case, lead generation. After all, you wouldn't walk into a party and tell everyone your goal was a date for next Saturday night. No one would take you seriously.

Instead, you should just introduce yourself the same way you would at a restaurant, party or beach. And then let the social media relationships flourish. (For ideas about how your company can participate in social media, see post: Staying Top of Mind in a Bad Economy)

Will this networking turn into leads for you business?  Very possibly. You don't know whom you might meet via your social media relationships, and you also don't know how many customers you might save just by staying in touch. 

Thus, the social media effort is a bit of a risk, because it could take time and effort that could be used for other business generating efforts. And quantifying the benefit is a bit tricky, although doable (especially if you tie it to boosting your website traffic, or reducing customer care calls).

But one thing is for sure: Social media is an increasingly good way to network and stay top of mind with potential customers for some businesses. (If your customers and prospects don't participate in any form of social media, then it might not be right for your company.) It's less expensive than traditional advertising strategies, and it's very likely your competitor will do it at some point, potentially gaining more visibility than your company.

So, instead of sitting at your office minding your website, and doing all the traditional marketing activities, you should definitely consider adding social media to your marketing mix.  Mr.Right - or many Mr. Rights - may very well come along. 

Technorati Tags: social media, Facebook, Twitter, Linkedin, networking, marketing

Admitting Mistakes Gracefully, Apologizing and Making Restitution

Last night, my husband went to Publix to purchase a pumpkin for my son's class. The price was mis-marked. Instead of $5.99 (as advertised on the shelf), it appeared as $10.99 at the cash register. My husband pointed out the discrepancy nicely, and within one minute, a Publix manager came over, apologized and gave him the pumpkin for free.

While other companies have similar policies, what's extraordinary about this experience is the apology, combined with the restitution (i.e. a free pumpkin). Publix admitted the mistake, apologized and stood behind its apology by giving away the pumpkin. That's a powerful combination, and it's the type of customer experience that builds loyalty.

So, if you are training your customer service reps to apologize for errors, go one step further. Make sure they are equipped with a tool for restitution. Otherwise, the apology can truly appear insincere. It's similar to your children saying "Momma, I'm sorry for eating cookies before dinner." But then doing it again the next night.

Technorati Tags: retention, customer experience, Publix

"Trust" Not Good Enough for this Economy

A few months ago, I decided to clean the cushion covers for my sofa. I brought them to a local dry-cleaner and asked how much it would cost. She couldn't tell me. She said they outsource them and she didn't know how much the third-party company charged.

I was dumbfounded. I couldn't get a fixed price - or even a range - for the cleaning.

I was even more stunned when the owner defended this crazy pricing policy by saying something like: "None of our other customers seem to mind. They trust us."

Well, in this economy, trust won't fly. Consumers are very likely to shop around for the best price, even among the places they frequent most. If they can't find a price they like, they won't buy. And, they most definitely won't take out their wallets for something that doesn't have a price tag.

Thus, I encourage all sizes of companies to do some rigorous competitive analysis. Determine how your pricing compares to others in your industry, and what incremental value you can add. Your good looks, charm and "trust" among your existing customer base isn't going to work now.

Technorati Tags: customer retention, bad economy, price sensitivity

Green the E-Ticket Process

Nowadays, many airlines, movie theaters, museums and other venues allow you to buy your tickets online. It can be a great time saver and convenience.  All you generally need is your credit card and a printer.

However, as a consumer and a marketer, it really appalls me that I have to waste paper to show that I purchased something, especially since there is at least one green option: mobile phones.

Given mobile phone's current penetration -  nearing 61% worldwide, according to a recent ClickZ article - it's very likely your customers are carrying a mobile device.

Thus, I would encourage all companies that offer "buy online options" to give three choices for ticket purchase/admission entry 1) allow to the purchaser to receive a confirmation/ticket via text message  2) allow the purchaser to receive an email formatted for a mobile phone/PDA for display upon entry 3) allow the purchaser to print the actual ticket via an e-mail sent to their computer (for those that don't like the mobile device option).

These options may take a little IT support to implement. But customers will appreciate the added convenience, especially when local search becomes commonplace and a printer is nowhere in sight.

In the interim, I strongly believe that greening the e-ticket process is a good idea. Not only can it spare trees, but it could enhance customers' opinion of the company, and potentially tie them closer to the brand.

Technorati Tags: mobile marketing, green, ClickZ, e-ticket

PR advice for Lehman, AIG and Other Tainted Professionals

Would you buy infant milk produced in China, regardless of how much the government assured you that it was no longer tainted with melamine?

I wouldn't. I'd even avoid the aisle in the supermarket where it's sold.

That's the critical issue with a tainted brand. No matter how many assurances you have that the brand is now safe, getting customers to believe those assurances and resume using the product is almost insurmountable.

There's too many competitive products out there that don't have any negative or harmful associations. So why should any consumers take any risks?

That's now the dilemma for many employees who worked for the companies at the heart of the federal bailout, AIG, Merrill Lynch, Lehman Brothers, etc.  They are the equivalent of tainted brands, no matter how removed they may have been from sub-prime lending practices.

So, what's a tainted employee to do?  While I'm not a recruiter or HR consultant, I do know how some consumers brands have addressed the issue.

Sometimes, they have even persevered (Remember the Chicago Tylenol scare in the early 80's when a sick, twisted criminal laced potassium cyanide in several bottles, murdering multiple people? The product was able to stick around, in part because of changes to anti-tampering laws and new packaging requirements).

So here are a few PR ideas for tainted employees, based on my experience with consumer products and services:

1) Address the issue up front and tell how honest and accountable you are. Give examples. Write a blog and provide daily updates about your thoughts. Give people plenty of opportunities to learn what your values are.

2) Provide testimonials, real good ones. Get people to vouch for you in writing, with their name and audio remarks.

3) Be relentless and kind at the same time. Stay in front of people as much as possible. Don't overwhelm them, but at the same time, don't give them any opportunity to forget about you or your message.

4) Repackage yourself. Elaborate on your core competencies, values and what you can achieve, not where you worked.

Tainted brands - whether they are employees, products or services - will have an uphill battle, especially in today's super competitive marketplace. But life isn't fair. So it's best to keep swinging, and try harder. Besides, what's the alternative?

Technorati Tags: China, melamine, AIG, Merrill Lynch, brands

My husband's boxer shorts - a lesson in creativity

About two months ago, when we relocated from Savannah to Atlanta, my kids didn't have any toys. They were all packed away.

Did that stop them from playing? Heck no. They found my husband's boxer shorts and put them on their head, arms, legs and then ran around the house for hours, just having a ball.

The reason I bring this up is because it was a great lesson. My kids, like Americans overall, can be crafty and inventive. They can take resources at their disposal and build value.

Because of this, I am thoroughly confident that American companies will overcome this economic crisis, and many will be stronger and more versatile. The catch, though, is that they have to think creatively. They have to challenge current assumptions and make changes - in just about every part of the organization.

A few easy ones, are suggested below:

• Does your company really need an office? Can your staff or some of your staff telecommute?
• Can your company generate more sales leads online, (see post, Can Your Website Beat a Bad Economy) and eliminate some of the travel expenses?
• Can your company leverage your website more for customer service and ordering? (See post, Does your Website Pass the Publix Test).
• Can your company deploy remote access software and other technologies to eliminate site visits?
• Can your company produce products and services that are more likely to get customers off-the-fence?
• Can your company retain customers effectively or more effectively than your competitors? (See post, Retention Programs - Start with Free or Low-cost Perks)
• Can your company provide products and services that serve customers better?
• Can your company stay top of mind with customers, so they don't bolt? (See post, Staying Top of Mind in a Bad Economy)

While there are plenty more questions to ask, the bottom line is this: Can your company put on boxer shorts?

Technorati Tags: creativity, economic crisis, customer retention