Archive for February, 2009
UI Design and Technology Converge to Create the Worlds Next Great Toy, Siftables
For the uninitiated, the TED conference is, simply, an annual gathering of the world’s best thinkers. Writers, designers, engineers, environmentalists, businessmen, programmers, etc. all gather for an intense few days, with the goal of sharing ideas and forming unusual or unexpected connections.
I have been making my way through this year’s speakers (TED Talks), and stumbled upon the speech above. David Merrill speaks about the convergence of great UI design and technology, and how it lead to the creation of Siftables.
Retail Opportunity: Special Offers Motivate Consumers
The Commerce Department recently reported that January retail sales rose 1 percent from December after having fallen for six straight months.
This good news defied economists’ expectations and was the biggest increase in 14 months. And although they all report that this is unlikely to last, there’s an insight here to be considered and acted on.
Simply put, this news is validation of something we marketers already know: Customers respond to offers. And that doesn’t have to mean constant discounting. Bargains are only part of the equation. The mix of outreach needs to include service, recognition and special opportunities—coupled with moderate incentives to encourage new experiences and drive traffic.
This is a formula that has worked to motivate customers TRAINED to shop on discounts to change their behavior.
Tell us what methods you’ve incorporated in your marketing efforts that help reverse a reliance on discounts.
When media spending increases. (Yes we said increases.)
Anyone catch last week’s interesting article in Ad Age about Wal-mart’s recent increase in media spending at a time when most retailers are cutting back on media left and right?
Discussing the Wal-mart media tab, Ad Age noted “this is a massive jump by any standard, as Wal-mart’s spending on measured media soared 55.7% to $835 million—compared with the same period the year before—according to TNS Media Intelligence.”
As we all know, the Wal-mart model is unique. The chain is known for its tight supply chain management and low overhead. And very few major retailers share the same model. Even more noteworthy, compared to two major companies (Macy’s and Sears Holdings who spend 4.5% and 4.0% of sales on marketing), Wal-mart spends only 0.5%.
As a marketer, I think it is both interesting and refreshing that marketing is now considered more than a nice-to-do. It is mandatory to compete. Brands that are investing in marketing right now are gaining market share, increased consumer presence and will be positioned better than their budget-cutting competitors.
That’s money well spent—if you ask this marketer.
A benefit idea for the recessionista in you
Glitzy galas are not in the cards this year for many organizations…even though keeping people connected to your cause is more important than ever.
One of my charities is taking a page from the Obama grass roots fundraising manual, planning low cost/high touch “House Parties,” and “Bar Parties” in six locations throughout the city and suburbs. Each party will be hosted by a board member, and will bring together existing donors and friends, as well as new people who live in or around that party.
Of course, social media will figure prominently in our invitation and reminder strategy. Our younger donors will go for the bar parties. Others will opt for the house parties. In true recessionista fashion, both celebration types will include modest ticket prices to get in, sponsored drinks and light food and the auction of at least one, truly fantastic item. No black tie, no bands, no venue rental, no floral, fauna or goodie bags. But plenty of good cheer and a pumped-up presentation by a stakeholder who is passionate about the cause. (BTW: In this case, it’s children’s literacy.)
Already, the enthusiasm is higher to help with these small events as compared to the arm twisting we had to go through to get committees together for the “Big Event” model. If it’s true that necessity breeds invention, maybe we’re learning something important about the future of fundraising.
Car Nuts Grasp Social Media
The Chicago Auto Show drove into high gear this past Friday at McCormick Place, the largest auto show in North America. Before the first person crossed the threshold to lay their eyes on all that gleaming sheet metal, there were over 2,000 fans on Facebook conversing about their eager anticipation of America’s favorite love affair, the automobile (and derivatives). The truly devoted fan who didn’t attend the “First Look for Charity” black tie affair on Thursday could follow the evening’s events via Twitter. And if that still isn’t enough, the Chicago Auto Show web site provided web cam access onto the show floor to witness all the glitz and glamour.
The Chicago Auto and Truck Association is the engine behind all this activity and I have to say, has done a great job keeping their status transparent and making the Facebook page and conversations quite fan-atic. Jennifer Ferm, PR guru for CATA, is juggling her time between keeping the web site up-to-date for the media and consumer, keeping the enthusiasm high on Facebook, and tweeting her walk-through on the auto show floor.
Jen says the reason for the social media activity “is to reach out to a different audience than we have targeted in past years. This group was created in October 2008, and already has more than 2,000 members.” There are about 70 fans on Twitter. Perhaps these are low numbers in comparison to the 1 million plus that attend the show each year, but they are the active ambassadors she can count on to virally spread any tidbit tossed their way. Jen has engaged her friends and followers with contests like a Pepsi can promotion “to create a contest for members to post a picture of their Pepsi can with the CAS discount so they could receive two free tickets.” She also had a photo caption contest as a means to seed tickets into the marketplace prior to opening day.
As a car nut myself it’s been fun following the lead-up to the show, but now its time to go.
We are not who we used to be.
Not too long ago, I had the pleasure of attending Executives’ Club of Chicago’s Economic Forecast 2009. This was my second year, and I remember the tone of the 2008 event as cautiously optimistic. Who could have known that all the cards that the house was built from would fall at the same time, right? At any rate, I listened to the 2009 presentations with a healthy mix of skepticism and cynicism.
As I remarked to Liz at the time, I feel that I’ve been forever changed by the events of the last year. For instance, I am now more concerned with the company that gets my dollar. I consider small businesses more readily. I take time to look up economic and financial terms I don’t understand. I think about things I can make on my own, and I’m even (gasp) cooking at home more often. My values have shifted and I am stingier with my trust. And it’s reflected in my purchase consideration.
I was making this point to a client recently, in the context of their need for research into a new service they want to provide. They are in the enviable position of establishing a new brand, so they have a great opportunity to tap into insights – and satisfy both emotional and rational needs in a differentiating way. But this opportunity is no less important to more established brands.
We aren’t who we used to be, in both subtle and bold ways. And the nuances of motivation are the stuff of competitive advantage. Seize the day.
[Read an interesting take on the Executives’ Club of Chicago’s Economic Forecast 2009 here]
