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Case Study: Lego Ideas

Let’s talk about Lego Ideas. Whenever I work with companies on designing customer advocacy or brand ambassador programs, I always stress the need to incorporate customer feedback into the program. Members of any type of advocacy or ambassador program are hand-raisers.  They are your most passionate customers, and they feel a sense of ownership in your brand, and want to see it succeed. So they will happily provide your brand will plenty of feedback on what it’s doing right, what it’s doing wrong, and what it could be doing.

That’s why I love what Lego does with it’s Lego Ideas program. This is an initiative where Lego customers submit ideas for future playsets. Other customers can then vote on and provide feedback on each idea.  Submissions that are popular enough, go to market.

Other brands have tried similar programs, such as Starbucks My Starbucks Idea or Dell’s Ideastorm, and it’s always a big win for the brand and its customers.

Lego Ideas

Why is Lego Ideas a good idea?

In short, Lego Ideas gives Lego a way to let its customers design new products for the brand. Take this submission for the creation of a playset for the Nautilus from Jules Verne’s book 20,000 Leagues Under the Sea. First, everyone can rate the submission and leave comments. This means Lego can get detailed feedback from its customers on what they like and dislike about the submission. If Lego decides to eventually make the set, it can make the set incorporating the feedback it received from customers.

Additionally, if the set ever makes it to market, Lego has a ready-made customer base ready to buy the set. Also, if Lego does decide to produce a submission, 1% of the royalties from the set go to the designer.  Not a bad deal, and this gives fan designers an extra incentive to submit ideas.

The Power of Giving Ownership to Your Most Passionate Customers

Lego Ideas works because Lego understands the connection that its most passionate customers have with the brand. Customers with high degrees of loyalty to your brand often view themselves as owners of your brand.  They view it as THEIR brand as much as it is yours! So these passionate customers will act in what they perceive to be the best interest of the brand.  Their brand.

Lets say you just purchased a brand’s product for the first time.  So far, it’s been a pretty meh experience for you.  Not a great product, not a terrible one.

What if, tomorrow, a product manager calls you and invites you to join a product design program for the brand. Where you will be required to submit new product ideas, then spend the next 6-12 months promoting and engaging with other customers about the product, fleshing out the design and creating a model that’s ready to go to market. The brand will then take your idea to market, and give you 1% of the royalties.

What would be your response? You’d probably tell the brand to take a flying leap, right?

But what if this was a brand you adored?  A brand you evangelized to all your friends, buying every new product the brand offers.  If that brand, which you are insanely loyal to, offered you a chance to join a program like Lego Ideas, how would you react?  You would probably jump at the chance, right?

Customers that are loyal to a brand want more ways to be involved with the brand in all facets, from product design, to product feedback, to product promotion.

They want a program like Lego Ideas. And that’s why it’s a winner.

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New Research Uncovers the Drivers of Customer Loyalty

customer loyalty

I recently came across a new research study from Cheetah Digital (via MarketingCharts) that uncovers the reasons why customers have a ‘favorite’ brand. The study surveyed over 5,000 customers worldwide to determine the factors that drove brand loyalty. I wanted to cover the top seven drivers of customer loyalty:

The Top Seven Drivers of Customer Loyalty

Provides a Consistent Customer Experience (80%) I think an important caveat is that the brand provides a consistently GOOD customer experience. The experience is part of the brand, and according to this study, it’s the top driver of brand loyalty.

If a brand makes the effort to create a good experience for the customer, that communicates to the customer that they are valued and appreciated. You will see that valuing and appreciating the customer are common themes on this list of drivers of brand loyalty.

 

Rewards Customers For Their Loyalty (78%) This is the where most brands make their biggest mistake in attempting to cultivate brand loyalty. Most brands confuse rewards and incentives in the context of brand loyalty. A reward comes after the purchase. An incentive is given before the purchase in an attempt to change customer behavior.

A reward creates loyalty to the brand, an incentive creates loyalty to the incentive itself. For example, look at the classic punch card, designed to ‘reward’ the customer with a free purchase afer a set number of purchases are made. Maybe Pizza Hut has a deal where if you purchase the lunch buffet 10 times, you get a free purchase.  This is an incentive to change behavior, and it builds loyalty to the OFFER, not to the brand. You will be more likely to continue to purchase the lunch buffet at Pizza Hut UNTIL your punch card is filled. When you claim the free lunch buffet, then you have to start again at zero.  And your loyalty to the incentive resets to zero as well.

As I explain in this post; If you want to build loyalty among your customers always remember: Loyalty is built by saying ‘Thank you!’ for existing behavior, not by offering coupons as incentives for new behavior.

 

Uses Customer Data In a Way That Makes Them Feel Comfortable (74%) Data privacy is top of mind for all customers. Most customers are very concerned over how their data can be used, or misused by brands. Transparency is imperative to building trust with consumers, and that’s especially true when it comes to customer data. Brands that are clear and forthright with how they collect and use a customer’s data are more likely to build trust with customers, which is the prerequisite for building loyalty.

 

Treats the Customer as an Individual (74%) This speaks to the desire that customers have for a personalized experience. Every customer has different wants and desires, and when a brand can give us a personalized customer experience, the brand is communicating to us that we are worth communicating to as an individual. It shows us that the brand appreciates us enough to put forth an effort to customize its communications with us.  That communicates respect and appreciation, and it makes it easier for us to adopt those same traits back to the brand.

 

Strives to Develop a Relationship (71%) This is one of the biggest misconceptions that brands have when communicating with customers. Most brands attempt to develop relationships with NEW customers, but ignore CURRENT customers. This thinking is completely out of phase, new customers typically have no interest in building a relationship with a brand. On the other hand, repeat customers are more likely to be loyal to the brand and more likely to be open to developing a relationship with the brand. Additionally, repeat customers can better serve the brand as they have a better understanding of its products/services and can better promote the brand to new customers.

 

Surprises Them With Rewards They Don’t Expect (64%) Unexpected rewards communicate appreciation. But remember, an unexpected reward is a ‘thank you’, not an incentive to make a future purchase. Sending a customer an email with discount codes for a ‘secret sale’ isn’t an unexpected reward. It’s an incentive to make a purchase, and your customers will see it as such. But a handwritten note from the manager thanking the customer for their business and delivered with a small box of gourmet cookies, that’s an unexpected reward and the customer will love and appreciate the gesture.

 

Treats Them Like a VIP (58%) This ties in with the previous point. The brands that do the best job of cultivating advocates understand the importance of their current customers and treat them as the special customers that they are. A good way to treat current customers as VIPs is to appreciate and reward them for what they are doing to help build and promote your brand.  Say ‘Thank you’ with no expectation of future purchases, but as appreciation for past behavior. Communicate to your customers what impact they have on your brand and thank them for it. You will find that by doing so, your loyal customers will work even harder for your brand.

 

Want to learn more about how to build a brand that cultivates customer loyalty?  Here’s every article I’ve written on brand loyalty.  Have questions about how to implement these strategies for your own brand?  Feel free to email me and I’ll be happy to answer any questions you have.

 

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What is Your Product’s ‘Job to Be Done’?

job to be done Whenever I talk with clients about positioning a new or even existing product or service, I stress the need for there to be a clear benefit to the customer, that the customer can clearly understand. The customer needs to understand how a product or service will fit into their lives, and immediately make a positive impact.

Some would argue, that the ease of collecting data about modern customers can actually make it more difficult to correctly identify the value that a product can create for a customer. Sometimes, customers simply buy a product for reasons that are their own, that really aren’t easily uncovered by simply looking at data or demographics.

Let me give you a couple of examples:

1 – I never chew gum UNLESS I am about to board a plane for a flight. If I am at an airport, one of the last purchases I will make will be to run into a gift shop or Hudson News and grab a pack of chewing gum. I want the gum because chewing the gum as the plane is taking off and climbing helps lower the chance of my ears popping! So I never need chewing gum UNLESS I am about to board a plane, then it’s a purchase I always make.

2 – I am currently playing a war game on my iPhone. The game includes chat functionality, and in playing the game, you can chat with other players and get to know them. I was talking to a player recently who said they enjoyed playing this game. They went on to explain that one of their parents had just died, and they were having to deal with the stress and worry associated with a parent’s death. They added that playing the game gave them a very welcome distraction that helped them get their mind off their real world issues.

 

I recently came across a wonderful article in the Harvard Business Review that explains this concept as buying a product for it’s Job to Be Done. For me, chewing gum bought at the airport has a job to do: Keep my ears from popping during takeoff. For my friend, playing the phone game had a job to do: Provide escape from their real world problems.

Here’s an example from the article: A consultant was hired by a Detroit building company to increase sales of its condominiums. The condos were positioned to retired couples that were looking to downsize from a larger home to a smaller condo. The units were given features designed to appeal to downsizers, and they even consulted focus groups to uncover any additional features they might have missed.

But sales were disappointing. The units generated prospective buyer visits, but struggled to close the deal. There was a bottleneck, something holding back the prospective buyer from becoming an actual one.

So the consultant decided to switch gears, and went back and started interviewing the people that had bought the units. The interviews were designed to help drill down on what prompted the person to commit to the purchase.

It turns out, it was the dining room table. Or rather, what the dining room table represented for the prospective buyer; Moving on from a home they loved, to a new condominium that had none of the attached memories.

As the article explains:

But as Moesta sat at his own dining room table with his family over Christmas, he suddenly understood. Every birthday was spent around that table. Every holiday. Homework was spread out on it. The table represented family.

What was stopping buyers from making the decision to move, he hypothesized, was not a feature that the construction company had failed to offer but rather the anxiety that came with giving up something that had profound meaning. The decision to buy a six-figure condo, it turned out, often hinged on a family member’s willingness to take custody of a clunky piece of used furniture.

This helped the company understand the Job to Be Done of its condos. It wasn’t about giving them a new place to live, it was about moving their lives into a new phase. The dining room table represented family, tradition, history. So the building company changed its offerings around the condos to reflect a better understanding of what was holding prospective buyers back from becoming actual buyers. They expanded the dining area to give more room to accommodate a larger dining room table. The company also added storage facilities to help buyers have a place to store items until it could decide what could be kept and what needed to be given away.

All of this goes back to simply understanding the customer. And with the ‘job to be done’ line of thinking, you are also thinking about ways to incorporate unpredictability into the lives of your customers. Every day, your customers are receiving unexpected good and bad news. In both cases, behavior patterns, either in the short or long-term, will immediately change.  They will suddenly need new products for new reasons to fulfill new ‘jobs’ for them.

Think back to the last two years and the impact that the covid pandemic has had on the world. If you will remember, one of the constant themes I have stressed here is considering how the pandemic would change the purchasing behavior of your customers. Some of the changes are big and easy to predict, such as a shift toward takeout from restaurants over dining in person. But other changes are harder to detect. But you need to be able to account of the possibility of changes and the resulting shift in purchasing behavior.

Here again is the link to the HBR review article detailing the theory of ‘job to be done’.

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It’s Time to Kill Your Business

business

“Data from the BLS shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.”

The average business is designed to facilitate transactions with customers.

And that’s why the average business fails.

 

I want to show you a video:

Background: This is Twitch streamer Nick Mercs. He’s arguably the most popular streamer on the planet right now. Earlier this month, 10,000 people flew to Tampa Bay to meet him, and each other. They paid to get there, Nick and his team covered the event for them.

When you watch that video and hear what it was about, you will likely have one of two different reactions to it:

1 – ‘OMG, that’s amazing!’

2 – ‘Heh, that’s cute.’

Regardless of your reaction, everyone who watches that video understands that Nick and the 10,000 people at this event do not have a transactional relationship.

Let’s watch another video:

In this video, pro wrestler CM Punk returned to the industry for the first time in 7 years. The excitement from those in attendance speaks for itself, tens of thousands of people overjoyed. Grown men crying tears of joy, and it appeared that Punk himself almost did.

This is the point at which I will lose some of you in the ‘Heh, that’s cute.’ group. But when you watch the second video, regardless of what you think of it, you also understand that CM Punk and the people in that arena do not have a transactional relationship.

What is a family?

When I watch these two videos, here’s what I see: Nick loves everyone that showed up to #MFAMBBQ2021, and they love him right back.  CM Punk loves everyone who is cheering for him and they love him right back.

That’s not a transactional relationship. It’s a loving relationship. I care about you, you care about me.

I tweeted the #MFAMBBQ2021 video on Saturday during the event. Notice the reply I got:

A member of MFAM corrected me, MFAM isn’t a community it’s a family.

A family looks out for each other. They care about each other.

Families have loving relationships, they do not have transactional ones.

It’s time to kill your business

The definition of a business, as defined by the Merriam-Webster’s dictionary, is:

“the activity of making, buying, or selling goods or providing services in exchange for money”

In other words, a business has a transactional relationship with customers. Everything about the business is designed to facilitate the transaction.

Once the customer completes or rejects the transaction, for all intents and purposes, that is the end of the relationship between the customer and the business.

This approach creates several obvious obstacles for the average business. First, they need more transactions. Which means spending more on marketing to attempt to create more transactions. Second, they need more customers, since brand loyalty is not created via a transactional relationship. Which again leads to more costs.

The customer is synonymous with a transactional relationship. If a business is built on simply facilitating transactional relationships with customers, then its costs of doing business will always be higher. The only purpose of the customer is to provide cash to complete the tranaction.  The only purpose of the business is to provide the product or service that the customer wants to buy.

This is why we need to stop thinking about a business being about facilitating a transactional relationship. How we communicate, engage and interact with each other has changed dramatically in just the last 25 years. But the basic function and design of the average business is still rooted in facilitating transactions.

It’s time we changed that.

What if a business existed to invest in the people who buy its products and services?

Let’s go back to Nick Mercs for a moment. As a streamer on Twitch, one of the main ways he generates income is via subscriptions and donations from his viewers. But it isn’t the only source of income for Nick. Another source is sponsorships. One of Nick’s sponsors is Cash App.

On a recent stream, Nick talked openly about his sponsorship deal with Cash App. He noted that when he made the deal with Cash App, he structured it so that Cash App is required to regularly give cash away to his subscribers. Cash App provides money that Nick then randomly gives away to his subscribers.

This could be viewed as an example of Nick investing back into his subscribers. At the same time, Cash App’s sponsorship of Nick’s steam could be seen as Cash App investing in the success of Nick’s stream.  By investing in his subscribers, Nick gains the loyalty of his subscribers, who are known as MFAM (Mercs Family). Since MFAM is loyal to Nick, that loyalty transfers to great degree to sponsors like Cash App. Because MFAM understands that by sponsoring Nick’s stream, Cash App is investing in Nick’s stream, and helping to make it possible.

If Nick was treating his Twitch stream as a business, and a purely transactional one, he would treat it quite differently. He would attempt to maximize subscriber counts and treat subscribers as customers who are purchasing a product (his stream content).

Instead, Nick views his subscribers as a community or family, MFAM. And as he becomes more successful, he looks for ways to take money from his sponsorship deals and redistribute it back to his subscribers. In another recent stream, Nick mentioned that he had set up Instagram accounts for the family dogs, Joey and Jackson.

 

View this post on Instagram

 

A post shared by ? ? ? ? & ??????? ? (@joemercs)

Nick added that once the account has enough followers to start attracting sponsorship dollars, that Nick is going to take the money raised from the IG account and use it to buy pet food for the pet owners in MFAM. Another example of how Nick is creating an investing relationship with his MFAM versus a transactional one.

It’s time for business, and the relationships it pursues, to evolve

A business that is designed and structured simply to facilitate transactions cannot endure. Many businesses across the world are starting to wake up to this reality. We are seeing more and more discussion about how we need to focus on things besides the transaction. Topics such as focusing on customer experience, or customer loyalty or customer satisfaction are signs that businesses understand that they need to evolve.

The problem is that businesses are attempting to focus on these areas, but within the framework of keeping a transactional relationship with their customers. This is addressing the symptom rather than the core sickness.  The issue isn’t that businesses need to focus on customer experience, loyalty and satisfaction, the issue is that businesses need to focus on creating a new type of relationship with the people that buy its products and services.

Businesses need to move from having a transactional relationship with its customers, to having an investment relationship with the people who buy its products and services. And the investment will flow both ways; The business invests in the people who buy its products and services, and those people invest back in the business.

We are already seeing how some businesses are experimenting with this idea of moving from being transactional to focus on investment.  Here’s some examples:

  • Red Bull and Monster Energy both invest heavily in sporting teams and events. Both brands do so to communicate to their customers that they have ‘skin in the game’ and that they want to grow the sports and events that their customers love. This connects with customers, who see that the energy drink brands want to have something more than a business/customer relationship with them.
  • Patagonia’s Worn Wear program is actually about DECREASING transactions. The Worn Wear program is about helping current Patagonia clothing owners extend the life of their clothing by fixing and repairing it. Patagonia’s stated goal for the program is to REDUCE new purchases, and reduce consumption. This communicates to customers that Patagonia is invested in protecting the planet, and it rallies Patagonia’s customers to take up the cause, and to show higher levels of loyalty toward the brand.
  • Clubhouse and its Creator Accelerator Program. This is an initiative that Clubhouse launched earlier in 2021 where Clubhouse will invest directly in room owners that meet certain requirements. In essence, Clubhouse is putting resources, whether it’s money, equipment, or mentoring into what it identifies as promising creators on its platform. Clubhouse is investing directly in those creators, with the hope being that as these creators have more resources, they will continue to grow the popularity of their rooms, which will also help grow the Clubhouse platform. Now what’s missing from this equation, to a degree, is the investment in the room listeners. They are the third leg of the stool and are kinda left out in the cold a bit in this deal. But perhaps Clubhouse and its creators will come up with ways for listeners to both monetize room owners, and for the platform and room owners to transfer gifts or other forms of investment back to the room listeners.

Monster Energy
How do we go from transacting with our customers, to investing in them?

Let’s say we want to move our business from being rooted in facilitating transactional relationships with customers, to a model where the business invests in its customers, and the customers invest back in the business.

What would that model look like?

Let’s use supermarket chain Publix as a hypothetical example. Publix sells groceries. It’s a purely transactional model.

What if Publix wanted to shift to having an investment model with its customers?  What would that look like?

Here’s one possibility: Let’s say Publix is going to invest directly in the health of its customers. Publix is no longer in business to sell groceries, it’s in business to invest in the health of its customers.

Think about the changes that could happen at Publix to reflect this change. When you first enter Publix, you will typically see a spinner rack by the door that has the current sales circular, several coupon books, maybe even a card with a recipe or two on it. If Publix wanted to invest in the health of its customers, perhaps it could replace the coupons and sales with a list of suggested foods for each age group. For instance, there could be guidelines on foods to buy if you are ages 50 and up. One side of the paper could be foods you want to buy to gain weight, the other could be foods to buy if you want to lose weight. There could be custom shopping lists for other ages or interests, such as people who are diabetic, have high blood pressure, etc.

And throughout the store, there could be cooks preparing meals and instructing customers on how to do so. There could be physical trainers on staff or available by appointment to discuss and create a health regime for customers. As customers are shopping, food could be grouped by body type, or age, or medical condition, instead of simply grouping by brand.

This would all likely lead to more expenses for Publix, which would need to be passed along to the customer in the form of higher prices. However, if Publix could show the average customer how to live a healthier lifestyle, wouldn’t that outweigh a modest increase in prices? Would you pay 25% more for groceries if it meant you would get an additional hour of REM sleep a night, have lower blood pressure, and more energy? I think most people would.

In addition, Publix could hold workshops on how to cook food at home, how to better exercise, what vitamins and supplements to take. They could partner with local fitness centers and health organizations.

There are so many other possibilities. And it all starts with a simple supermarket deciding that it no longer exists to sell groceries, but instead to invest in the health of its customers.

It’s time to rethink business, it’s time to end the transactional relationship

Business as usual is fast approaching its expiration date. Advances in technology, especially around how we connect with each other and share information, is prompting us to expect more from the brands that we give our money to. We honestly do want a deeper relationship with brands, but brands have to earn that relationship. They have to communicate to their customers that they value them as more than simply being another transaction.

Brand loyalty is not created in a transaction model. The most successful businesses have higher levels of loyalty from their customers. Your goal isn’t to facilitate more transactions, it’s to earn the loyalty of your customers.

And you do that by investing in them. I have some more thoughts on this, so click play:

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Brands With Happy Customers Have One Thing in Common

They value their customers and communicate this through their actions.

When I talk to companies and clients and how to create passionate customers that love your brand, I typically talk about how rock stars have fans or how sports teams have fans. I talk to companies about how much of an impact it would make to their business to have customers that loved them and who were actual fans of their brand.

Almost always, the company will push back. “We aren’t Taylor Swift! We aren’t the Alabama Crimson Tide! We sell boring widgets, we aren’t rock stars and never will be!”

Rock stars don’t have fans because they are rock stars. They have fans because they put in the work to cultivate fans. Rock stars understand that they can create fans by engaging with their customers and communicating to their customers that they appreciate them, and love them.

Your company can and SHOULD be doing the very same thing. Here’s a couple of examples I have come across recently to give you inspiration:

Lego’s wonderful letters to customers

Lego has a long history of sending compassionate, humorous and thoughtful letters to customers who contact them with questions, praises and complaints. Often, these personal responses are to children who have perhaps lost a lego toy or have a question about one.

Here’s a recent example:

In this example, a customer named John bought a $350 Lego Star Wars set from Target. The set is apparently fairly hard to find. He took the set home and began assembling it. Toward the end of the process, he discovered that a bag of pieces he needed to finish the set was missing! He didn’t really have the option of returning it to Target, since he had already started assembling it, and since the store likely wouldn’t have a replacement in stock anyway.

So he contacted Lego directly.  Here was Lego’s response:

Dear John,
Thanks for getting in touch with us and providing that information! I am so sorry that you are missing bag 14 from your Mos Eisley Cantina! This must be the work of Lord Vader.

Fear not, for I have hired Han to get that bag right out to you.

Have a bricktastic day and may the force be with you.

 

The response is compassionate, humorous, and above all communicates to the customer that they heard them. It then tells them what will happen next to resolve the issue.  Perfect!

Not only will this delight John and give him a reason to buy more Lego sets, but it’s also a big source of positive PR for Lego. If you do a simple search on Google or Twitter you can easily find many mentions of Lego sending similar delightful letters to customers. All of these stories enhance the Lego brand and give more people a reason to buy from Lego.

 

The massive BBQ one streamer is holding for his Twitch subscribers

I’ve talked before about the amazing job streamer/content creator NickMercs does in creating and cultivating his community of Twitch subscribers, called MFAM. Nick is very loyal to his followers and goes out of his way to communicate this to them. Often, when he adds new brand sponsors, part of the deal will be that the brand has to give money or prizes to his subscribers. On a recent stream, he claimed that during the Holiday season of 2020, he gave close to $250k in prizes and cash to his MFAM community.

Nick goes out of his way to show his followers that he loves them, and they love him right back. To close out Summer, next weekend he is throwing a special BBQ for MFAM, all for free:

I follow a lot of streamers on Twitch and YouTube. Very few of them make the effort that Nick does to connect with his subscribers, and to communicate to them how much he appreciates them. As a result, they appreciate him even more, and the snowball just keeps rolling downhill.

 

Build a culture of customer appreciation

Most companies are dead set on acquiring new customers, but then when they make the first purchase, then they become a ‘current’ customer and it’s as if they enter this dark void and the company no longer cares. Smart companies, the ones that excel at creating happy and loyal customer, focus on customer retention as much if not more than customer acquisition.

You retain customers when customers feel happy and satisfied with your brand. By constantly listening to your customers, communicating with them and showing your appreciation, you keep them as customers. What’s more, those customers you keep go out and recruit new customers for you. Which greatly reduces your customer acquisition costs.

Having passionate fans doesn’t happen by accident. Taylor Swift doesn’t have fans because she is a rock star anymore than Nick Mercs has fans because he’s a Twitch streamer. There are plenty of rock stars and plenty of Twitch streamers who have almost no fans.

Happy customers don’t happen by accident, they are earned. Put in the work, show your customers that you love them, and mean it. That’s how you create happy and loyal customers.

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Alabama Football Launches ‘The Advantage’ Personal Branding Program For its Student-Athletes

Last month I wrote about how important it is to give your employees the skills they need to succeed. One of the examples I used to illustrate that point was how Alabama football gives both its coaches and players the tools and teaching they need to advance.

Alabama football has just launched another initiative in its effort to equip its players with the skills they need to succeed.  The program is called ‘The Advantage’ and it is being billed as a ‘personal brand’ development program. The Advantage will work with players to develop their communication skills, giving them instruction on how to handle interviews, and how to conduct themselves on social media channels. For those players who pursue a professional career in football, The Advantage will assist with financial literacy, marketing, and agent selection.

This is such a smart initiative on so many levels:

  • It becomes yet another recruiting tool for Alabama, providing real benefits to recruits that they can instantly see the value in
  • It helps players manage their social media accounts, which also helps the University with its image and branding as well
  • By helping players with interview coaching, that provides another benefit to both the player, as well as the University, and it enhances the brand of both parties
  • As players become more proficient in using social media, that just means more exposure for them, and for the Alabama football brand as well

I’m honestly surprised more universities haven’t done something similar, and I’m sure we’ll see a lot of schools copy this now that Alabama has unveiled The Advantage.

Think about how you could do something similar at your company or organization. And just as Alabama will use The Advantage as a recruiting tool, so can your company. Your company could offer a program that coaches your current employees on how to better leverage their social media accounts to promote their personal brand, as well as yours. Additionally, you could leverage such a program to help your internal subject matter experts become more comfortable creating content and sharing their expertise. Getting internal subject matter experts to share what they know is often a struggle for companies. So this would be a real benefit that your company could enjoy.

Once such a program is in place, then its existence becomes a recruiting tool for new employees. Your company would get better employees, more content from your subject matter experts, and the social media content created by your employees would be more on brand. A win-win!

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How to Be a Better Marketer

Marketers, as a profession, are one of the least-trusted groups around. They are the guy at the party that everyone dreads seeing. You are with your friends having a perfectly delightful conversation, then here comes the marketer. He steers the conversation to himself, and brags incessantly about his accomplishments. When someone in your group attempts to change the subject to something more interesting, he immediately dismisses the introduced topic, and moves the focus back where it belongs. On him.

This is how most people view the average marketer. And often, this illustration isn’t that absurd. Yet, most marketers aren’t bad people, they simply fall prey to human nature far too easily.

The reality is, we all act in our own best interests. Period. Yet, good marketers understand how to make human nature work for them, and not against them. They understand that in order to reach their desired goals, they have to also provide equal or greater value to someone else.

 

TLDR: How to Be a Better Marketer

  • Respect your customers, market to them as you would your friends and family.
  • Your marketing communications should focus on and create value for your customers.
  • If your marketing isn’t relevant to your audience, then it will be ignored.
  • Understand who your customer is before you market to them.
  • Don’t sell your product, sell what your product allows the customer to do.

 

Why are marketers so distrusted?

Let’s back up for a minute and talk about how one brand figured out how to be better marketers. As with most good stories, alcohol is involved.

Bill Samuels Sr founded Maker’s Mark in 1953. Senior was the epitome of a craftsman. He loved crafting bourbon and prided himself on his ability to do so. His son, Bill Samuels Jr, took over as President of Maker’s Mark in the 1970s with one clear directive from his dad: “Don’t screw up the whisky.”

Father and son were diametrically opposed when it came to the topic of marketing. Junior was a showman. He loved marketing and appreciated the power of promotion and sales.

His father absolutely hated marketing and distrusted most marketers just as much as the rest of us do. Senior hated marketing so much so that often when junior would attempt to have a marketing discussion with his father, Bill Samuels Sr would simply stand up and walk out of the meeting.

So Bill Samuels Jr was at an impasse. He knew that Maker’s Mark needed to do SOME marketing in order to grow, but he also knew that his father would simply continue to shoot down any attempts the son made at adding marketing communications to the mix.

Finally, Bill Samuels Jr decided that it would probably be a good idea to better understand why his father was so opposed to marketing. The son figured that if he understood why his father didn’t want to invest in marketing, then maybe he could come up with a compromise that would be palatable to his father. Bascially, Bill Samuels Jr was marketing the idea of investing in marketing, to his father. So his father was his customer, and the son was learning how to better understand his objections to marketing, so he could factor that into his efforts. Which is what all good marketers do.

Bill Samuels Sr didn’t view the people who bought his bourbon as being customers, he viewed them as being friends and family. And he viewed marketing as selling, and in his mind, you didn’t sell to your friends and family.

So this prompted Bill Samuels Jr to completely shift his mindset toward who the Maker’s Mark customer was, and in turn, how to communicate with them. Samuels Jr went back to his father and said they would define the Maker’s Mark customer as being someone who they would like to invite over to their house for drinks. Bill Samuels Sr signed off on this, and Jr got to work on building a marketing strategy based on communicating with friends and family, instead of selling to strangers.

As an aside, this shift in marketing strategy opened the door for Maker’s Mark to launch one of the most successful brand ambassador programs of all time. In the early 1980s, Maker’s Mark was the recipient of some wonderful exposure in national publications like The Wall Street Journal. That surge of PR catapulted demand for the brand’s products, which actually created a massive distribution problem for Maker’s Mark. Prior to this, Maker’s Mark was essentially a regional, Kentucky brand, and its distribution channels were regional as well. But thanks to the exposure in the WSJ and other publications, there was suddenly national demand for a brand that not only didn’t have the distribution channels to handle a national supply, but the product itself took years to make.

While the brand didn’t have a national distribution channel, it did have customers across the United States. More than that, it had customers that loved the brand. So Bill Samuels Jr. decided to embrace those happy customers, and empower them to market for the brand. Maker’s Mark began to mobilize its customers across the country to demand Maker’s Mark be shipped to their corner of the country. The efforts of its customers slowly expanded Maker’s Mark’s distribution from coast to coast. These efforts by Maker’s Mark to empower its customers to market for the brand would eventually be folded into an official brand ambassador program, which still lives on to this day. You can learn more about the program here.

Bill Samuels Sr. distrusted marketers for the same reason most of you do; He found the very idea offensive, as he felt that marketing was selling, and you don’t sell to friends and family. So Maker’s Mark focused on treating its customers as friends and family, and adjusted its marketing strategy accordingly. Bill Samuels Jr would later call it ‘marketing without fingerprints’.

The key takeaway? If you respect your customers, that changes how you sell to them.

 

The power of being second

Let’s go back to human nature for a minute. It is human nature to want to take care of ourselves first, and everyone else later. For instance, if there’s a shortage of a particular product, say gas, do you let everyone else fill up their tank first, then you go get your gas a week later?  Of course not, you will try to fill up your tank of gas today, and you assume everyone else will do the same. That doesn’t make you a bad person, it just makes you human. We all think of our wants and needs first, before others. Not all the time, but in general.

It’s no different for most marketers. Most marketers focus first on getting the sale, and pleasing the customer can come later. But smart marketers understand the power of pleasing the customer first, and how that will LEAD to sales.

In 2004, Sarah McLachlan released the single World on Fire. Her record label gave her $150,000 to create a music video to support the song. Just as she was preparing to begin filming the video, she came across a letter written by a volunteer with the group Engineers Without Borders. This letter detailed the work that the group was doing to help impoverished people around the world. Sarah was so moved by the work Engineers Without Borders was doing, that she decided to take all but $15 of the $150,000 her record label had given her to create a music video, and she instead donated it to 11 charitable organizations, including Engineers Without Borders.

Now, this was a very generous act on Sarah’s behalf, but her record label still wanted her to create a music video. So Sarah took the last $15 from her budget, and bought a video tape. She then, working with a few friends, created a very low-tech video for World on Fire.

But the video told an incredibly compelling story. What Sarah did with her video was explain to the viewer all the normal expenses associated with creating a music video, and how much each item normally costs. Then, Sarah detailed what the money was actually spend on, via her charitable donations. What resulted was, and absolutely amazing music video, created for just $15:

This video received a Grammy nomination for best music video, the only such nomination of Sarah’s 34-year career as a recording artist.

So let’s break this down: Sarah received $150k to record a music video for World on Fire. Instead, she donated almost all of that money to 11 charitable organizations around the world, impacting the lives of millions of people. And she still got to create a music video for World on Fire, which received a Grammy nomination.

All because Sarah didn’t use her video as a way to ‘sell’ her song, but instead she used it as a tool to help others, to advance causes she is passionate about, and to tell a compelling story. She got the sales she (and her label) wanted, but she got so much more than that.

The key takeaway? Good marketing isn’t about the person sending the message, it’s about the person who hears it. If you create a compelling marketing message, the sales will take care of itself.

 

The best marketing is invisible. The worst marketing BECOMES invisible. 


This is Times Square, in NYC. Look at this picture, but really it’s the same with any picture you see of Times Square.

You always see marketing and advertising messages everywhere. Flashing billboards, and blinking lights as far as the eye can see.

So. Much. Marketing.

Now look at the people. Every single person in this image has one thing in common. Can you spot it?

Every single person is totally ignoring every marketing message.

Everyone in this picture is completely ignoring these hundreds of marketing messages that are all around them. The reason why is because these messages lack relevance. If a marketing message is irrelevant to you, then it is worthless to you.

It becomes invisible to you.

Now let’s go back to the Maker’s Mark brand ambassador program for a minute. We’ve already talked about how long-running it is, and how successful it has been. In order to join the brand ambassador program, you have to apply. In other words, you have to raise your hand and offer to perform the duties that Maker’s Mark asks from its ambassadors. So when Maker’s Mark delivers marketing messages to you, those are marketing messages that you asked to receive. Those messages have relevance for you, so you don’t perceive them as being marketing.

Let’s be clear: If a marketing message has relevance for you, you don’t view it as being marketing.

On the other hand, if a marketing message has NO relevance for you, you ignore it.

The best marketing is invisible. Meaning you don’t SEE it as marketing. You see it as something that has relevance for you.

The worst marketing BECOMES invisible. Meaning, if the marketing message is totally irrelevant to you. then you totally ignore it. It BECOMES invisible to you.

We’ve trained ourselves to view marketing as something bad, as a distraction, an irritant. Actually, that’s not fair, we have simply been exposed to so much BAD marketing, that we tend to view ALL marketing as bad.

Good marketing is relevant to us. It creates value for us, and respects us. As a result, we don’t view it as marketing.

What happens when we don’t view a marketing message as being marketing? We open ourselves to LISTENING TO THAT MESSAGE.

Once a marketer has gained our attention, then they have a chance to convert us into a customer.

The key takeaway? If your marketing message is relevant to your audience, then that audience will listen to your message. If your marketing message is irrelevant to your audience, then that audience will ignore it.

 

The best marketing is spoken in the voice of your customer

Let’s say you are a diehard fan of the movie Inception. Your friend Tom hates the movie, and thinks it is completely overblown.

You are trying to convince Jim, who you don’t know, to watch Inception. But at the same time, Tom is going to give the argument for why Jim should NOT watch Inception. And it just so happens that Tom is also Jim’s cousin.

So who do you think will be able to persuade Jim to watch or not watch the movie Inception? You may say that Jim will listen to Tom, because Tom is his cousin and he trusts his opinion. You would  probably be correct. But at the same time, Tom knows and understands what types of movies Jim likes. Tom would explain to Jim that he doesn’t like movies like Inception, why he doesn’t like them, and Jim would probably ultimately agree and not see the movie.

In the end, the fact that Tom and Jim were cousins wasn’t the deciding factor for Jim.  It was the fact that Tom understands what type of movie Jim likes to watch. You don’t know what type of movie that Jim likes, so in explaining what you liked about the movie Inception, you were actually making the case to Jim for why he should NOT watch it.

Think of marketing as a tax that your brand has to pay because it doesn’t understand your customer.  If you know precisely who your customer is, and you understand them completely, then you know how to create marketing that appeals to them at every stage of the process from awareness to sale, and beyond. Your marketing costs are significantly lower because you are crafting perfect marketing communications that are relevant to your customers, that create value for them, and which resonate with them.

When you don’t know who your customer is, when you don’t understand your customer, then your marketing costs increase at an exorbitant rate.

The key takeaway? When you understand your customer, you can speak to their wants, needs and desires. You don’t market to them, you talk to them. And they listen.

 

The best marketing doesn’t focus on your product, it focuses on your customer

The most effective marketing doesn’t sell your product, it sells how your product fits into my life.

Watch this Red Bull commercial, and as you do, notice how much time is spent focused on the Red Bull energy drink:

The Red Bull can isn’t shown till the last 2 seconds of the commercial. The logo is shown a few times throughout, but the star of this commercial is clearly the extreme athletes that Red Bull sponsors and supports. Red Bull doesn’t market its product, it markets what happens after you drink it.

Don’t sell your product, sell the change that happens to your customer as a result of your product.

This is one of the most powerful marketing lessons you can learn. When someone isn’t familiar with your product, you sell the benefits of owning it. You sell the changes that owning this product will create for the owner.

Don’t sell me the product, sell what the product allows me to do.

Look at Nike’s iconic marketing campaigns. Just do it. The shoes and clothing is an afterthought, the focus is on the athletes and their accomplishments. Think of Apple’s marketing for the iPhone in recent years. The focus is more on what the iPhone allows you to do, the content it helps you create, moreso than the actual tool itself.

Notice how these examples of how to improve your marketing are focused on understanding your customer and marketing from the customer’s point of view. Customers don’t buy products, they buy solutions to problems, or improvements to their lives. If a particular product can consistently meet or exceed their expectations, then the customer will become loyal to that brand.

 

Your job as a marketer is to create fans.

In 2010 I attended the FIRE Sessions in Greenville, South Carolina. One of the speakers was Steve Knox, who at the time was the CEO of Proctor and Gamble’s Word of Mouth unit, Tremor. He said something that stopped me in my tracks:

“Victory in marketing doesn’t happen when you sell something, but when you cultivate advocates for your brand.”

Think about that quote and what it means. Who are advocates for your brand? They are the customers that LOVE your brand and who are advocating on its behalf. So they are not only buying your products, they are actively selling your brand to other customers.

How would your marketing change, if your goal was to cultivate advocates? To create customers that love you and who will advocate for you.

The amazing part is…you will still be creating sales. But you’ll also be creating so much more.

 

If you want to be a better marketer:

  • Respect your customers
  • Create value for your customers
  • Your marketing MUST be relevant to your customers, or it will be ignored
  • Understand your customers
  • Don’t market your product, market the positive changes in my life that your product will create for me
  • Don’t focus on sales with your marketing, focus on delighting your customers. If you create happy customers, the sales take care of themselves.

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How to Create Customer Loyalty After the Product Purchase

Let’s say for every product you buy, there are one of three outcomes as far as your satisfaction with the purchase:

1 – Indifferent. The product does what you expected it to do, no more or no less.

2 – Upset. The product doesn’t meet your expectations.

3 – Excited. The product exceeds your expectations.

 

If you are indifferent toward your purchase, the odds are that you aren’t likely to praise or criticize the purchase to other customers. Likely, it was an inexpensive purchase, and you really didn’t have high expectations for it to begin with. For instance, if your purchase cost a dollar and was a complete disappointment, well you are only out a dollar, so you are less likely to be as upset with the quality of the product.

If you are upset or excited with your purchase, then that means you want to talk about it.  You want to share your experience with others. Interestingly, Guy Winch has found that 95% of the time when a customer is upset with a purchase, they will tell other customers, and won’t tell the company that made the product! According to Winch:

“Research has found that 95% of consumers who have a problem with a product don’t complain to the company, but they will tell their tale to eight to 16 people,” he says. “It’s unproductive because we’re not complaining to the people who can resolve our issue.”

Venting also floods the bloodstream with cortisol, the stress hormone. “We tell ourselves that we need to get it off our chest, but each time we do, we get upset all over again,” he adds. “We end up 10 to 12 times more aggravated.”

Isn’t that fascinating, in a depressing sort of way? But it makes complete sense that retelling a negative experience with a product to other customers would make us more upset with the purchase. And the customers we are talking to would likely want to be supportive and sympathetic toward our anger, so they may say they agree that the company was in the wrong, which would make us even MORE upset with the purchase!

Which is honestly a bit unfair to the company, when you think about it. Because we didn’t reach out to them and give them a chance to help us with our problem.

Let’s come back to this in a moment and talk about what happens when you are excited with a purchase. You tell other customers, right? We know this is true from our own experiences for many reasons. We want to share with others what worked for us. Also, we probably want to ‘brag’ on ourselves to a degree by sharing what a ‘smart’ purchase we made.

The point is, we talk to others about our purchase in either scenario. But if you think about it, even when we have a positive experience with a purchase, are we really that likely to reach out to the company and communicate that to them?  Probably not.

So the onus, rightly or wrongly, is on the company to do everything it can to encourage the customer to give feedback on the purchase. If the customer is indifferent toward the purchase, they will likely ignore the request.

But if the customer is either very upset or very excited with the purchase, an invitation to give feedback will be greatly appreciated.

Now, many companies aren’t thrilled with the prospect of hearing from angry customers. It’s just human nature. But, if you can give a customer the support they need post-purchase, you greatly increase your chances of converting the upset customer into a happy one.

And remember, happy customers are your best salespeople. They acquire new customers for you!

So think about how you can better connect with your customers after the purchase. This will only improve and enhance your customer loyalty efforts. And if you want to learn more, we will be discussing this topic tonight during #ContentCircus on Twitter, starting at 7pm Central. Follow me on Twitter, and watch my tweets, the topic will be How to Create Content For Each Stage of the Buyer’s Journey!

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Monday’s Marketing Minute: Tracking Sales to Social Media, Conducting Sweepstakes and Contests

Happy Monday, y’all! Hope you had a fantastic Holiday weekend, and are easing into the workweek slowly. Here’s some useful links to help you start the week smarter:

 

I always chuckle at how companies lament that they are having difficulty tying sales directly to its social media efforts. The reality is, social media as a channel is not the best channel to drive sales directly. First, most companies struggle to correctly attribute revenue to any channels, much less social media. The study in the tweet below found this as well. Social media has certain strengths and weaknesses for businesses. It does a great job at things like building brand awareness, a good job at things like customer service, and not that great at things like direct sales. All channels have strengths and weaknesses. Most companies are also having trouble attributing customer service success to billboards. The point is, focus on the strengths and weaknesses for each channel and don’t waste time and money trying to force a square block into a round hole.

 

One of the most misunderstood areas of social media is how to effectively and legally run sweepstakes and contests via social media. This great share from Mari gives you wonderful pointers on how to run either via social media channels.

 

I constantly talk to companies that want to build a fanbase of passionate customers, who have no idea how to get started. I always tell them to do the same thing; say ‘Thank you’. LA Chipper (and former Alabama Crimson Tide great) JaMycal Green recently left the LA Chippers, and when he did, he posted goodbye and said thank you to Clippers fans on Instagram. Then he went through and thanked every fan that replied. This is how you build a fanbase, by simply showing your current fans that you appreciate them. Look at your company’s Facebook page, or your Twitter replies. How many customers are commenting that they enjoy your products or services? Are you replying and thanking every one?  You should be. Don’t over complicate things, saying ‘Thank you’ still works.

 

I hope you have a great Monday! Speaking of news, I’ll have some news of my own to share here tomorrow. I think you’ll enjoy it!

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The Business Link Between Customer Empathy and Brand Loyalty

The other day I was talking about mapping content and marketing to the buyer’s journey with Alexandra. Alexandra mentioned what comes after the purchase, and that’s when we began to discuss the role of creating and cultivating brand loyalty. We then had a fascinating discussion about the role that empathy for the customer plays in creating and cultivating loyal customers. I started doing some research into empathy and I wanted to do a deeper dive into the topic here.

Let’s first examine some of the drivers of brand loyalty:

  • We trust the brand. This trust can be established via a consistent experience, customer support, following through on brand promises, etc.
  • We relate to the brand. Here we feel we have common interests and values as the brand We feel as if what’s important to us is also important to the brand.
  • We feel that the brand acknowledges us and appreciates us. They listen to us, they communicate they hear our feedback and act on it. This also leads to us feeling a vested interest in what happens to the brand. We will promote it to other customers, we will defend it against criticism.

 

Now let’s look at empathy. According to Greater Good Magazine, empathy is “used to describe a wide range of experiences. Emotion researchers generally define empathy as the ability to sense other people’s emotions, coupled with the ability to imagine what someone else might be thinking or feeling.”  All of this ties into the drivers for brand loyalty; Trust, understanding, being able to relate to the brand.

Empathy for the customer is a paramount skill to have if you are working in customer service. And quite often, customer service is called upon post-purchase, by the customer. Which is also the point at which brand loyalty often is created or enhanced.

A big part of showing empathy to someone is making sure that person understands that you are listening to them, and you are being considerate of their feelings. Whenever I consult with companies on addressing customer complaints, I always stress to them that the company should never apologize unless they actually did something wrong. I tell clients to focus on listening to the customer, and making sure they know that you are listening. That’s far more important than simply saying ‘sorry’. Upset customers want to know that you are listening to them, that you have heard and understood WHY they are upset, and that you give the customer a solution for their complaint.  Starting a customer service interaction by saying “Well I’m sorry that happened to you!’ and then NOT solving their problem, can actually lead to more anger and frustration for the customer. Communicating that you are listening is more important than saying you are sorry.

Taking the time to listen shows that you DO care. It’s critical that your brand listens to its customers, especially when they contact customer service, post-purchase. It’s also important that even though the customer is very likely upset, the main thing the average customer wants when reaching out to customer service, is a rep who will listen and understand why they are upset. This communicates that the brand values that customer and their feelings.

Feeling appreciated is one of the key drivers of brand loyalty. Also keep in mind that everyone, your customers, your employees, we are all under additional pressure and stress right now. Communicating you appreciate others has never been more important. And it will never be more appreciated by others.

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