January 25, 2010
Two weeks ago, I published a list of some of my favorite marketing articles that I had read over the previous several weeks. I got a lot of great feedback that this list was very helpful to fellow marketers, and so I’ve decided to make it a regular post. So with that, here’s a list of marketing related articles from 1/11-1/24 that I recommend you take a look at. Enjoy!
- Is Your Brand a Beacon or a Spotlight? (Ad Age). The article explains that while many brands are based on understanding their customers and their customer’s current needs, it is important for brands to stand for more than this. Brands should also have an aspirational component to them to make them especially compelling to their customers. This article is a great argument for brands to have a defined brand vision.
- Build Your Customer Experience Roadmap (Forbes). This article summarizes the findings from a recent report from Forrester Research that ranks brands in terms of the overall customer experience that they provide. The article highlights examples of brands in several categories that are providing excellent customer experiences, and then it provides ‘Three Golden Rules of Customer Experience.’ This article is definitely worth a read for anyone who is interested in improving the experiences that customers have with a brand, or anyone who is interested in improving customer loyalty for a brand.
- The Cost of Not Branding (MediaPost Online Metrics Insider). This post is a refreshing reminder that not investing in marketing or branding has a cost associated with it, and it mentions a couple of examples of how one could calculate the cost of not investing in branding. For individuals who often find themselves in a position where they have to justify their marketing budgets, they will find this post very helpful.
- More CPG Players Embrace E-Commerce (Ad Age). This is an interesting article that describes how CPG companies are seizing a new opportunity to sell products to and better understand their consumers through e-commerce. For marketers in the consumer packaged goods industry who are not yet exploring e-commerce as a channel, this article is a good thought-starter.
- A New Rung on the Social Technographics Ladder (Forrester). For those of you who have read or are familiar with the book Groundswell, you know about the different technographic profiles that your customers may have when it comes to social media — these are the creators, the critics, the joiners, etc. In a new report, Forrester Research unveils a new social technographic, the Conversationalist, and explains why this is a group that brands will want to watch closely.
January 10, 2010
In case you’ve had trouble getting unburied from your emails, Google Reader, and other marketing reading from over the holiday, here are my suggestions for recent articles that you should be sure to check out.
- Brand Focus Leads to Power and Profits (Brand Strategy Insider). An interesting and persuasive argument for limiting line extensions under a brand. The post uses several examples to illustrate that brands that are highly focused have higher profit margins.
- Kraft Makes a Bet on At-Home Eating (Ad Age). For any food marketers, this article is worth skimming to see where Kraft is making its bets for new products in 2010.
- Taco Bell Latest QSR To Promote Weight Loss Angle (MediaPost Marketing Daily). Okay… I couldn’t help myself with this one. Marketers are abuzz right now about Taco Bell’s latest campaign. Subsequent articles to this one have shown that Taco Bell is taking a bit of hit with this campaign since it isn’t true to its brand core and character. If you still aren’t sure what all the fuss is about, take a look.
- Is Copernicus or Aristotle Running Your Business (The Marketing Technology Blog). A short post that has a few questions to ask yourself to make sure you are running a truly customer-centric business or brand.
- CSPI Charges Brands With Mislabeling in FDA Report (MediaPost Marketing Daily). Another article for food marketers highlighting the increased attention and concern around misleading labeling claims. My prediction: statements/claims on labels are only going to become more restricted.
- Tipping the Iceberg (MediaPost OMMA). Northwestern professor Don Schultz has found that only ‘4 to 5 percent of customers account for a preponderance of a consumer product’s sales.’ Knowing this could have a significant impact on how marketers advertise and target media.
- ‘Imperfect’ FreshDirect Gets Close to Consumers (Ad Age). Interesting interview of the CEO of FreshDirect highlighting that understanding its customers has been the key to FreshDirect’s success.
- 6 Tips for Treating Your Customers Like Friends (SmartBlog on Social Media). Some great tips for activating your customers, using the famed Maker’s Mark Brand Ambassador program as an example.
- The Principles of Marketing Can Be Summarized in One Word (Ad Age). Excellent column that is thought provoking and appropriate for all marketers to read. You don’t want to skip this one. I’ve already referenced it in a couple of meetings.
- A Campaign Linking Clean Clothes With Stylish Living (NY Times). This article covers Tide’s new campaign that taps into the insight that ‘clean clothes are a mean to an end — expressing personal style — rather than the end itself.’ The article shows Tide’s focus in emphasizing a higher order benefit, that is more emotionally motivated, to help continue to build its category dominance. It’s a good example of some strong marketing.
December 14, 2009
Once upon a time, companies who measured the profit coming from each transaction, product line, or customer segment were considered to be first in class. Over time this best practice of measuring profitability has evolved from focusing on individual transactions to focusing on the profitability of the total customer experience. Unfortunately, some organizations have not adapted to this new approach.
In today’s highly connected world, customers are seeking to build relationships with brands, and they do not view marketing activities and transactions independently. Each of these are just different types of touch points that a customer has with a brand, and the customer does not really distinguish between them. For example, a great purchase experience is a superior marketing tactic that will drive future purchases. For the customer, the overall experience that he has with a brand (which includes all types of touch points) impacts his future relationship (and likelihood of additional purchases) with the brand.
Since customers are evaluating a brand based on their total experience, companies should also focus on this total experience. From a measurement and analysis standpoint, instead of trying to maximize profits for any given product line or transaction type, companies should try to maximize profitability over their total customer experience. As a result, this might mean that a company should lower its price (and profitability) on some products that introduce a customer to the brand in order to maximize the total number of products that a customer purchases over the lifetime of the relationship with the brand. It also might mean that a company should heavily invest in certain marketing programs with existing loyal customers, if it will help customers recommend the brand to others.
The key to successfully maximizing the value of the total brand experience is understanding the role each transaction and touch point plays in the development of the experience. Once a company stops focusing only on the sale, but instead on the long term relationship, it will unlock long term profit potential.