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January 30, 2006
HBR's Breakthrough Ideas
The February issue of Harvard Business Review features The HBR List -- the publication's list of breakthrough ideas for 2006. All 20 are really fascinating, but there were two that caught my eye:
1. The Battle of the Networks
2. A Cartel for Oil Consumers
1. The Battle of the Networks -- this one talks about how companies are mastering the art of networking their products, customers and suppliers. It specifically highlights how competition in the future won't be between companies, but between the networks created by these companies. Opinion: The days of the "news release alliance" (an alliance in name only) are numbered. The companies who truly leverage their strategic partnerships are the ones who will win.
2. A Cartel for Oil Consumers -- We've got OPEC (Organization of the Petroleum Exporting Companies), so why not OPIC -- an "Organization of Petroleum Importing Companies)? Interesting thought, especially as Exxon Mobil announced earnings today, reporting 2005 profits of just over $36 billion. That's the highest reported annual profit in the history of the U.S. economy. Should be interesting to see the public relations and political fallout of that little announcement...
Posted by Matt Kucharski at 9:20 AM | Comments (1)
January 27, 2006
Up2d8
Smart retailers are using online storefronts as their Maginot lines. And if they’re really smart, they’ve created an online experience that sells, creates cross-selling opportunities and keeps customers coming back for more.
There’s nothing new in the theory. Retailers have been doing this in varying degrees for years. However, what many retailers are not doing is nurturing and cultivating new customers. Retailers can’t sit back and wait for legacy shoppers to emerge – they have to create and capture new blood at the point of sale. That means luring people to their sites and keeping them there, whether they purchase or not.
Very smart retailers keep you at their sites and nurture you while they attempt to convert you. It’s great if you buy something. But it’s more important to identify with the brand – purchases will follow. And, as in the case of Target, deliver marketing messages that tell consumers (in this case, teenage girls) that Target is sick (in a good way) through Target Up2d8.
The next step in online retail evolution is social networking. Create such a resonant online experience that real conversation between peers happens as part of the purchase experience and ultimately influences purchase. It’s unlikely that retail social networking would supplant My Space and its counterparts, and it shouldn’t. But it can augment a consumer’s online experience and offer affiliate and advertising opportunities.
Hey…just found out camis are the Trend 411. L8R.
Posted by Rich Sharp at 3:35 PM | Comments (0)
A Million Little Priorities
Does anyone else find it disheartening that CNN spent two hours last night beating the James Frey/Oprah/Million Little Pieces hullabaloo to death http://edition.cnn.com/2006/SHOWBIZ/books/01/27/oprah.frey/ before finally getting to the story about Hamas winning the elections in Palestine?
Talk about fretting over the aphids in the rose garden while the house is burning down...
Posted by Matt Kucharski at 9:12 AM | Comments (1)
When Your Customer Is On Hold...
One of our very good clients, Genesys www.genesyslab.com develops and sells contact center software -- technology that helps businesses improve the customer experience whether they interact via phone, Web, or other means. Working with Genesys reminds me that there are opportunities to improve relationships with customers at literally every point of interaction.
Or in some cases damage those relationships, as was the case this week when I was put on hold by a company who decided it'd be a good idea for me to listen to Carly Simon's "You're So Vain" while waiting for an answer to my question.
So, here's my "top-5" list of all-time worst songs to have a customer listen to while on hold. Feel free to share yours as well...
1. "Big Shot" by Billy Joel
2. "We're Not Gonna Take It" by Twisted Sister
3. "Fat-Bottom Girls" by Queen
4. "I Don't Care Anymore" by Phil Collins/Genesys
5. Anything by Lionel Ritchie
P.S. -- No shock, but there is a Web site featuring the top all-time breakup songs -- check it out at http://breakup-songs.com
Posted by Matt Kucharski at 8:50 AM | Comments (1)
January 24, 2006
WB, UPN erased by new Warner/CBS partnership
Breaking news...Warner Bros. and CBS are joining to create another network, the CW Television Network. Casualties in the partnership are networks WB and UPN. What does this mean for local news broadcasts and affiliates? Read the press release.
Posted by Rich Sharp at 10:28 AM | Comments (0)
Who’s your marketer, baby?
There’s been a lot of talk lately about being “transparent” when conducting word-of-mouth campaigns or touting something in a blog. We’re all for it, especially if you’re an advocate being paid to talk about a client’s product or service.
But what about those who simply like something and become your fans (read: successful WOM campaign)? Their valentines come straight from the heart. So, how does the audience tell the difference between what’s done by pros and what’s done by the proletariat? And how does that affect a company’s reputation?
Look at Burger King – images of The King are being traded across the transom in fast order. The King is on the beach. The King is on a horse. The King is…well, you get the picture. Were these uploaded by BK’s ad agency? Loyal customers? Ne’er-do-wells?
The fallout from no transparency is trust. The King makes me laugh (and frightens me, just a little). But each time I consume a viral King message, with no notion of its source, my gut reaction is skepticism, and I drift farther from the Whopper (no cheese, no mayo).
Posted by Rich Sharp at 10:04 AM | Comments (0)
January 19, 2006
WOM Conference Note: Measuring Customer Loyalty with One Question
The buzz term here in Orlando at THE buzz marketing conference (Word of Mouth Marketing Association's Basic Training) is "NPS" which stands for Net Promoter Score. In a nut shell, it's a tool for measuring customers' likelihood of referring your other potential customers. It boils down to asking your customers one simple question: How likely are you to recommend X to a colleague or friend? Then throw out the middle scores, take the top (promoters) and subtract the bottom scores (detractors) and you have your net promoter score.
NPS poster-child Intuit and a few other companies have made it part of their company culture to the point that they're not too worried about whether a viral marketing campaign delivered specific behavior, much less word-of-mouth marketing metrics (WOM units). They just care whether their NPS score goes up or down. And since it's their ultimate measure of customer satisfaction, their job depends on it.
Here's what the Satmetrix Web site says of their product:
Net Promoter® is a ground-breaking new approach that links customer experience to growth. After years of research in collaboration with Frederick Reichheld, Bain & Company, and Dr. Laura Brooks of Satmetrix, we have developed a simple analysis that is the best metric for understanding and reinforcing the drivers of top-line profitable growth.
Reichheld says accountants don't care about measuring customer loyalty because they're more focused on milking all the profit they can out of their contented customer cows, when they should be focusing on keeping them contented. Communications pros should at least pick up the new book which explains it all, Reichheld's The Ultimate Question, since the language of the book is becoming part of the vernacular of business.
Posted by Bob Brin at 8:00 PM | Comments (0)
January 18, 2006
You’re hungry…you’re hungry
Each day, consumer marketing comes dangerously close to abhorrent and complete mind control. Ok, so the panic button may have been pressed in haste. But I can envision the next step from Kraft’s new Game Pad to be some sort of implant into the hypothalamus (done in the womb, of course) to tell us that we’re hungry for Kraft products that will delight us from cradle to grave.
Or, it's simply a nifty marketing tool designed to bring Kraft brands one step closer to the consumer – literally – by allowing them to play branded games and learn dance steps from a branded, downloadable program.
Ooh…suddenly I’m starving for Cheese Nips.
Posted by Rich Sharp at 10:44 AM | Comments (0)
January 13, 2006
Are you "Experienced?" Again?
According to an article in Bulldog Reporter's online newsletter, Sapient, a "business organization specializing in customer relationships, technology and operations" (in other words, an IT consultant), announced that it has acquired an integrated marketing/advertising agency called Planning Group International.
So, adding to the throngs of lawyers, accounting firms, management consulting firms and industry analysts who now claim to offer branding, marketing and communications services in addition to their core offerings, we now have IT consultants trying to get into the game. Sapient is creating a new business unit called "Experience Marketing." Gag. I mean, come on, what marketing ISN'T based on experience?
Okay, enough cynicism. Basically what's happening here is that IT consultants like Sapient are coming around to the conclusion that their customers buy technology services based on fulfilling a business need, and that business need often emanates from marketing. Haven't we been here before? Unless Sapient can talk the language of the marketer, they'll forever be relegated to installing servers and slinging code. A reasonable strategy, but is acquiring an ad agency the right approach, or instead would it be better to improve the marketing and business savvy of its core consultants? I guess time will tell. What's your opinion?
Matt Kucharski
Posted by Matt Kucharski at 6:45 AM | Comments (0)
January 11, 2006
Consumer De-generated Media
Yes, with today's consumer-generated media, you too can be an author, a critic, an analyst, a hotdog, a weenie. Take Wikipedia, where anyone can not only contribute articles to this online encyclopedia (if, say, you're an expert on pileated woodpeckers), you can even edit other people's stuff.
Imagine the controversy that could erupt should one contributor believe she's more expert than the expert. Better yet, don't imagine. Go to this article on the ancient civilization of Kush which I tripped upon while helping my 6th grader with her homework. The article looks peaceful as a sand dune, but under the "history" tab at the top of the page, you find a not-so-civilized war waging beneath the surface as one user tries to edit the editor (reads chronologically from bottom up).
Consumer "Deeceevoice" attempts to change the content and says:
Stop this false, racialist dichotomy of sub-Saharan and North Africa. Both were the sites of early BLACK African civilizations
SimonP responds:
No need to bring modern racial divisions into our Ancient history articles.
If you link to Deeceevoice's profile page, you find a warning about the page from none-other than Jimbo Wales, founder of Wikipedia:
I am strongly advising this user to replace this offensive rant with a calm discussion of the issues the page raises. There is absolutely nothing wrong with raising questions about systemic bias and how racism and other hostile ideologies can affect Wikipedia negatively, but this page is not contributing constructively to the debate. Do not disrupt Wikipedia to make a point.
I was tempted to simply delete it and block the user, but I am hopeful that instead we can begin a productive dialogue here about the issues being raised. If not, well, I certainly am happy to simply delete the page and block the user if necessary. --Jimbo Wales 19:56, 6 January 2006
Deeceevoice then volleys with a link to his/her page, which includes [WARNING] swastikas, offensive photos and crude language, which deeceevoice says others injected. (see comments)
Consumer-generated media can definitely give power to the people. Just be prepared to deal with dialogue that degenerates into graffiti and graphic violence.
Posted by Bob Brin at 9:33 AM | Comments (4)
January 9, 2006
From Every Crisis, A Learning Opportunity
Any time a crisis occurs at one of our clients, we work with them after the fact to review the procedures that were followed and help them identify any refinements necessary.
As tragic as the West Virginia mining accident was for all involved, it can't go by without reviewing it from a "what if this was you" standpoint. It's not armchair quarterbacking -- it's just good crisis preparedness practice. Below is an excerpt from an artlcle by Marty Nott, head of PR services at one of our Worldcom Group partner offices Buck and Pulleyn. He does as good a job as any of summarizing the situation, and I thought I'd share his article with you. Read on for more.
(EXCERPT BEGINS HERE)
Last week, 12 miners died in the sooty bowels of a West Virginia mountain. Their deaths were tragedy enough–a knife in their families' hearts–but an as-yet unknown someone twisted the knife cruelly with the monumental miscommunication that issued from the Sago Mine's rescue command center after the miners' bodies were found. Keeping in mind that no one had a worse week than 13 families in northern West Virginia, January 4 was also a lousy day for journalism and public relations.
The Sago Mine disaster has eclipsed the 1948 "Dewey Defeats Truman" headline in the mass miscommunication hall of shame. After all, in 1948, the only losses were Tom Dewey's ticket to the White House and the Chicago Tribune's pride. In this case, people suffered because someone jumped the gun. We don't know enough yet to judge whether any news organizations deserve to be embarrassed for seizing so readily on what turned out to be horribly wrong information, but seemingly all of them ran the story, which broke on Tuesday night at just about bedtime for morning newspapers around the U.S.
The clearest view we have is that reporters quoted various sources saying the miners were still alive, but apparently no one pressed hard enough to find out how certain the information was. So, out came the news–across all media, not just newspapers. Here in the East, even after the truth surfaced, most newspapers were still on the stands, shouting the embarrassing error all day long.
Whatever the journalistic shortcuts may have been, the sharpest truth is that the problem originated within the International Coal Group's rescue command center at the Sago Mine, not in the confusion outside it.
As of this writing, no one is clear on precisely how the bad information escaped the rescue command center. It was not, apparently, "official" information issued by the mining company–and that is the crux of the problem. Most likely, someone inside the command center heard something they thought was good news and phoned a friend or loved one to tell them. Word spread, church bells rang, spontaneous celebrations spawned misguided media coverage, and the community was set up for a horrible fall.
I'm confident that the individuals responsible are suffering a very personal hell. Let's not pardon them, but let's not pile on, either. I believe they were exhausted people who meant well, but weren't trained to handle the situation.
To honor the lost miners and respect their families, one thing we–anyone in executive or communications management for any organization–should do is look over our own crisis management plans to make certain that we avoid this kind of tragic gaffe.
The International Coal Group was unarguably responsible for every aspect of managing the crisis at the Sago Mine, including communication to the anxious audiences outside the command center. They weren't prepared to handle that responsibility–and they should have been. If they had a crisis management plan, it was probably inadequate on communication. If they had an adequate crisis communication plan, they were inadequately drilled on it.
Drilled? Yes–drilling isn't just something they do in mines. It's what you do, over and over, to train people what their job is in a crisis, not only so they'll know how to do it, but to steady their nerves and sharpen their judgment when the real deal hits. Everyone wants to do the right thing in an emergency, but without training and rehearsal, what you get from even a well–intended team is confusion, lost time, and exacerbation of the crisis.
While employed by Niagara Mohawk Power Company a few years ago, I served on the joint news center team at the Nine Mile Point nuclear power plants, which they owned at the time. The joint news center was our equivalent of the command center at the Sago Mine. We were activated for two actual onsite emergencies during my time there, but we were trained annually and drilled at least twice a year–not just on a tabletop, but actually hauling ourselves and the necessary equipment to the pre-established location and working through emergency scenarios that would drag on for hours. The drills included the plant operators onsite and several dozen people at the news center a few miles away.
It's impossible to imagine and rehearse every possible thing that could go wrong, of course, but here's the good news: when the actual emergencies happened, they were almost boring when compared to our drill scenarios. We were lucky in that regard, but the drills made a huge difference in our skill in handling the real events.
Welcome to Crisis Management 101, condensed version: have a plan, dammit, and drill on it until the cows come home, so everyone knows what they're doing. If that sounds like a luxury, let's ask the execs at International Coal Group what they think of the idea.
What else is there to learn from this case study in crisis management?
What matters most is what's really happening (in the rescue operation in this case), but the anxious crowd outside any crisis has a serious stake in the outcome, so management of communication with them is part and parcel of managing the crisis.
All communication to the public should flow through one clearly designated spokesperson–the higher ranking, the better–and only after it's been vetted thoroughly within the organization. Everyone else on the crisis team needs to know who that person is–and stick to their own job.
The public authorities with jurisdiction need to be onsite, fully briefed, and available to speak for themselves with the media and the public.
This tragedy is a cinch to become classic textbook material for journalism and public relations programs, and it's also a real–time lesson for those of us working in this business today.
How a business can plan for the unplanned
We've all read news stories about workplace violence, financial peccadilloes, cruise ship passengers getting sick en masse, and other delights. Through no fault of your own, you could find yourself not only in a public relations nightmare, but in a crisis that can threaten your company's very survival. How you respond can make all the difference, and the best PR in a crisis starts now, with how you prepare for it operationally.
Marty Nott
PR Services
Buck and Pulleyn
Posted by Matt Kucharski at 4:18 PM | Comments (0)
January 4, 2006
Mine Shaft Gap
This morning, I took the long, cold walk down my slippery driveway to retrieve the morning newspaper. I unfolded it and read the Page One headline above the fold: 12 miners found alive.
What a different story I found when I turned on the “Today” show a few minutes later.
Certainly, my newspaper couldn’t have had the latest news by the time the paper rolled off the press and into a delivery truck. That sort of thing happens every day. But that’s just it – by the time you trundle down your driveway to pick up the paper, it’s recyclable, old, yesterday’s news.
Newspapers (paper) can’t compete in a 24/7 world. You can dress ’em up, load them with evergreens and opinions, but you can’t get the latest news to my doorstep in a vehicle that doesn’t include having me turn on my computer, get on the Web and find your Web site.
What’s the new vehicle? Handhelds and phones work just fine. When my carrier got lazy over the holidays and decided that delivering the paper was optional, I grabbed my cell phone and read the news while eating my Frosted Mini Wheats. It wasn’t my paper’s news, though.
When will our friends on the ink side get it together? Soon, I hope.
Posted by Rich Sharp at 12:49 PM | Comments (0)
