Author Archives: Kevin Smith

Kevin Smith

One of the best account planners in the business, Kevin is an Ad Guy who brings experience, passion and insight to every initiative. He first joined the firm in 1994, spent five years on Madison Avenue, then returned to Riggs Partners in 2004.

3 Steps: Using Effective Candor in Marketing

The 1960’s changed everything. As Mad Men chronicles so entertainingly, the legendary advertising environment of the 1960’s stopped selling products and started selling a products’ benefits. This shift was so profound that 40 years later, marketers remain focused on selling a consumer benefit. There’s a problem though.

Benefits are great, but selling is not OK.

People don’t like salesmen. That’s because people believe that good salesmen pitch and charm people into buying. While actually untrue of the best salespeople, “an Eskimo buying ice” is perception.

One technique taught by the consultants at Sandler Training is disarming honesty. Disarming honesty throws prospects off balance, and makes them feel in control. The same technique can work in marketing. Esurance uses the technique beautifully in their recent commercial about savings.

Our business is all about closing the gap between perception and reality. Here are three steps to accomplish this effectively:

  1. Most importantly, don’t lead with the “sell.”
  2. Empathize with your audience’s insight by using disarming honesty to create a problem.
  3. Demonstrate how your product or service solves the problem.

The worst mistake many marketers make is trying to sell by confronting a perceived negative consumer perception up front. Oldsmobile’s famous failure: “We’re not your father Oldsmobile” comes to mind. With a more informed and demanding consumer than ever, it’s time to let candor take the lead.

Dare we say recovery? 5 Ways to Stay Ahead.

Things are getting better. Not rapidly better, but the economy is showing signs of life. No doubt your business or organization has made changes to weather these past few years, and so has your target audience.

Consumers expect more than ever, and they are getting it. As a result, generalists, middle market products and mediocre service providers are few. What remains are low cost leaders and specific high quality products and services.

From a marketing perspective, being low cost leader is shaky ground. Someone will always be willing to beat your price. Specific high quality products and services offer a safe haven for businesses and nonprofits alike.

Local grocery stores Kroger and Earth Fare offered stark examples. During the recession, I watched Kroger close its doors. Its customers no doubt turning to Wal-Mart. Meanwhile, the checkout lines at higher priced, health and environmentally conscious Earth Fare never shrank, even during the depths of the recession. Here are five ways Earth Fare got it right:

  1. Pay attention to detail. Everything counts, right down to the receipt, which Earth Fare offers to recycle.
  2. Make it local. Grass feed beef from the mountains of North Carolina is better than ground chuck on sale.
  3. Upgrade. Move the olive bar, upgrade the wine selection and ask customers where there is room for more improvement.
  4. Have personality. Why not have a violinist by the front door?
  5. Partner with like-minded organizations and causes. Earth Fare supports all kinds of local charities, from cookouts to fundraise to exterior signage to raise awareness.

Congratulations. You’ve made it through the storm. The downside: it’s time to up your game. As the economy improves, competition is about to heat up. In fact, Whole Foods is renovating the old Kroger site and moving in fall 2012.

 

Three Questions Every Brand Should Ask Itself

Consumers are demanding more all the time. Yet they seldom get all they want. As a result, it often takes very little to delight them.

In light of our economy’s shaky recovery, nonprofit and socially conscious brands alike need to innovate. This needn’t be difficult or expensive. Let’s examine Nabisco’s Premium Saltines brand. More than 100 years old, Premium is not complacent. It asked three simple questions.

1.    How do people interact with our product?
The product has been packaged in boxes of two or four sleeves for decades. Most Saltines are consumed with other foods like soup, salad, cheese or peanut butter. Thus, an entire sleeve is rarely consumed in one day.

2.    What do they think about us?
Saltines are wonderful, but they go stale quickly. Most people don’t eat stale crackers. They throw them away. No one likes throwing away food.

3.    How can we make it better?
If your crackers go stale, you need to buy more crackers. If consumers kept their Saltines longer, they’d buy less. No actually. Saltines go stale, and consumers switched to another brand.

Fresh Stacks provides a reason for reconsideration. Repackaging resulted in a reason for trial, and ultimately, a shift in brand perception. Even better, the Premium brand shows consumer empathy, a catalyst for brand loyalty.

The next time your organization’s brand is stuck, make empathy your goal and start with the most basic questions.

The New Art of Conversation

I’m in planning mode for several clients now, and McKinsey’s much discussed “customer decision journey” is dominating my thoughts. This theory holds that consumers hold a portfolio of brands, evaluate other brands constantly based on peer influencers and decide periodically which brands to add, discard or replace.

The customer decision journey replaces the old purchase funnel, rightfully acknowledging that spouses, children and friends influence our decisions more than advertising, public relations or social media.

It is worth acknowledging that consumers have denied the influence of advertising on their decisions since the beginning of market research. Nevertheless, Gallop’s poll paints a clear picture.

Peer influence and referral have never been more influential than before.

This dynamic is made all the more powerful by technology’s ability to offer everyone a voice, a megaphone and an audience. So what’s a marketer to do?

Start a conversation. Be bold and give consumers something to discuss.

Amidst all the noise about cyber Monday, Patagonia did just that.

There has been disagreement in marketing circles about Patagonia’s strategy. Some have questioned whether or not the approach was sanctimonious.

I love that the company has taken a stand against excess consumerism. Even better is the fact the company started a conversation about Patagonia. No doubt people are consuming less. So why not increase loyalty from current customers and attract new ones with likeminded values?

Turning Empathy into Action

Monday mornings are the busiest time of the week at Riggs Partners. We gather first thing and recap the upcoming week’s meetings and deadlines, as my to do list looms over me. I chew through my e-mail in box trying to delete everything I possibly can. In short, this is the single worst possible time to message to me.

Yet this morning, Sustainable Midlands, a local nonprofit did just that. Not only did I stop to absorb their content this morning, I wrote them a check.

I’ve been getting e-mails from Sustainable Midlands for some time. Years, even. I’ve stood by, quietly siding with their attempts to make my city a greener one. Yet I’ve never contributed, attended an event, followed them on Facebook, or forwarded one of their E-mails. I’ve been a passive ally, all empathy and no action.

Every cause struggles with peripheral supporters. If only 20 percent could be converted to active supporters, that’d be huge. Here’s how.

Sustainable Midlands took advantage of a local controversy to become immediately relevant. Wal-Mart is proposing a large location near downtown Columbia. City Council has tabled discussions momentarily, allowing time for anger to build.

Urban planning is but one small part of Sustainable Midlands’ advocacy. Nevertheless, they are serving as the central conduit of communication on the proposed Wal-Mart development.  They keep me updated through e-mail and links to a dedicated page on their website. They’ve demonstrated leadership, and made themselves a vital part of an issue that is front-page news. That’s not just smart, or even just much appreciated. It’s worth supporting.

Nonprofits should be mindful of events that make their causes relevant and timely. People give their attention to those who lead and demonstrate a commitment to a future vision. Find a way to engage in meaningful dialogue with those on your periphery, and you’ll find them gravitating closer and closer.


 

 

Persist or Advance

Occupy Wall Street is proving to be the definition of persistence. Meanwhile, the European debt crisis continues one week after the next. In a better world, crises would at least be short, especially such severe ones. The congressional stalemate continues despite national frustration. I can’t imagine anything worse than being on a “Super Committee.” A regular committee is painful enough.

Meanwhile, Coca-Cola does something beautiful. They turn their cans white for the World Wildlife Fund . This profound gesture reminds me why I love the business of branding. Amidst all the chaos, Coke’s Arctic Home campaign feels like a refuge. A company doing something good, just because it is a good hearted company.

Coke’s white can inspired our marketing strategy for our client Moe’s Southwest Grill. Moe’s is incredibly supportive of schools and children’s charities, and we’re working on ways to further deepen their support at a neighborhood level.

Moe’s reminds me that we have to continually raise the bar. They are constantly tweaking their menu. They were the first retailer in town with Coke’s incredible new Freestyle machine. Better training, improvements to the prep line, and monitoring measuring customer feedback all followed a discussion about marketing strategy.

As the economy continues to strain business, brands easily fall into a mentality of persistence spawned by risk avoidance. I would argue that today’s challenging business climate demands constant improvement and innovation. I invite you to share a Coke with a colleague and start exploring how you might change things for the better.

Otherwise Occupied

I’m trying to understand Occupy Wall Street. It’s ambiguous desperation, and it’s fascinating and puzzling all at once.

We live a country built on compromise, with an economy based on negotiation. At present is only impasse. The political polarization is so vast that thousands are willing to congregate in mutual frustration to no end whatsoever.

Occupy Wall Street demonstrates the power of polarization.

Regardless of your political bent, we nonprofit marketers can learn from the politicians. Too many of today’s marketers are terrified to exclude anyone. They want their messages to have universal appeal. This is the highway to mediocrity.

Great marketing doesn’t appeal to the lowest common denominator. The best marketing creates both a tribe of devotees, and a group of outcasts. The outcasts don’t have to like you, your cause, or your marketing materials. Having loyalists, and some folks that don’t care much for your organization, is indeed a sign of success.

If your target audience is comprised of everyone, it’s time to reassess. Stand for something bold enough to draw a crowd, or your customers may well be otherwise occupied.

Details

Today I visited an Apple store and bought a Mac Air. I certainly value the design and product innovation Apple continues to deliver, and the in-store experience was similarly inspiring.

The products were arranged for me to test. A large staff offered customers one-on-one attention. My computer was ordered electronically from a demo on the floor. The sales person ran my credit card through a custom iPhone app. I signed electronically using my finger, and a receipt was sent to me by e-mail. The bag was a backpack.

Clearly, Apple is iconic, yet every brand has the ability to examine such details. Moe’s Southwest Grill rethought the greeting with: “Welcome to Moe’s.” Luxury stores pay reverence to their wares when they wrap them in tissue and put them in beautiful bags. Patagonia’s shoeboxes are printed to encourage reuse as storage vessels.

Patagonia shoebox

Rethinking something basic is a wonderful way to make your brand more distinct. Given the continued volatility of today’s economy, experience-centric brand thinking makes perfect sense. Think about it, a greeting doesn’t cost a thing.

 

Singularity

Great brands are singular. They stand for one often profoundly simple thing or idea. David Doyle’s campaign for Volkswagen in the 1960’s, arguably the greatest ad campaign of the 20th century, made VW stand for one thing: small.

Modern branding still reflects this premise. Recent work for Subaru ends with the one word concept: love. BMW owns a different space with the idea of joy. Nonprofits would be smart to follow suit, yet so few do.

Most nonprofits deal with complex causes about which they are passionate. As a result, the products and services they offer tend to grow via offshoot and initiative. With most, a once core service has grown to a bundle of services. The same applies to fundraising initiatives. This renders multi-layered ambiguous communication.

In an economy that presents greater need than ever, and a shrinking donor base, consider the power of singularity. Being known for doing one thing done amazingly well is far better than generating general awareness of five less remarkable feats, and far more memorable.

I’m not suggesting that you overhaul operational programs or fundraising basics. I do urge nonprofits to look to their organization’s roots when considering external communications. Then deliver a singular brand message. Given continued economic chaos, people simply can’t absorb much more.

 

Expectations

Last week, one of my clients, speaking to a room full of managers, defined good customer service as exceeding expectations. This prompted me to think about how rare good service actually is.

With contractors, I’m genuinely thrilled if the person shows up when they said they would, and the bill is in the same ballpark as the estimate. Our standards are equally low at most restaurants. Clean, courteous and reasonably quick isn’t the expectation, it’s exceptional.

I contend that organizations actually have to do fairly little to exceed expectations.

In today’s economy, people expect more for their money, and service has the opportunity to fill the gap between value and values. Perhaps nowhere is this more the case than with nonprofits.

Most nonprofits are focused on fundraising, so their messaging is all about the “ask.” Beg for money, then say thank you, only to beg again the same time next year. If your organization’s communications stop here, you need to reassess.

Return on investment (ROI) is the expectation in business. Nonprofits that adopt this standard can easily exceed expectation. Those organizations that deliver outstanding service will be those that persevere through the lingering economic malaise.

Here are some ideas to consider:
• E-mail series focused on outcomes relative to your nonprofit’s mission
• Mid-year letter about how your organization is achieving operational efficiency
• Post card showcasing a specific need having been met
• Link on your website comparing your nonprofit to similar national or neighboring-state organizations

The competition for funding is tighter than ever. Stand apart by communicating ROI to donors and build long-term loyalty along the way.