Why portray customers as clueless?

An objective of advertising is to endear a product to current and potential customers. Allowing them to "see" themselves in advertisements is a basic tenet of marketing. Such groups should be able to identify with the commercial... that the advertisement hits their situation so closely that it could be them in the ad.

A good classic example of this was the long running advertising campaign by Michelin Tire that ended several years ago. Perhaps you recall the advertisements (above right) where babies and tires were featured with the slogan "Because so much is riding on your tires." People "saw" their babies -- no matter how old -- in the advertisement . The message and images related to their lives. A part of them was identified in the ad.

Portraying customers as foolish to attract new customers... it does not make sense.
While humor is a powerful tool in advertising and promotion, care must be taken not to cross the line where humor goes from attracting to repulsing. For example, in television advertisements over the last two years (below), Holiday Inn uses their own customers as the butt of the joke... making them look silly. So the message is: see our customers... don't you want to be just like them?

What do customers see in your ads?

• Does it relate to them?
• Is it attractive to them?
• Do they want to be a part of it?

Let your customers be involved

Businesses should do more than talk about incorporating customers into marketing efforts

Although businesses might not be able to go to the same level, the newly released movie Fireproof offers a lesson in customer involvement. The movie, which came in 4th place and earned $6.5 million for its debut weekend, asked for and got a level of participation from its constituencies during product development (shooting the movie) unimaginable to most businesspeople. For example, volunteers built the sets and it is reported that most of the people that made the movie also volunteered.

Why do it?
Allowing customer involvement is one way to increase customer loyalty. Such participation improves customer "buy in". They have a voice. They have a stake in the effort. They want you to succeed.

Easy to dismiss
Businesspeople should not dismiss this lesson too quickly due to an "our customers will not participate with us!" attitude. Granted, Fireproof is an example of extreme customer participation. However, too many businesses do not try hard enough to allow their customers to become involved with them.

Customer participation comes in many forms. A few examples of customer involvement across various industries include:

• Airlines providing programs to let participants in their frequent flier programs donate airline miles to charities such as the American Red Cross.


• T-shirt makers allowing customers to vote on which images (which were designed by volunteers) on shirts to sell.


• Businesses aggressively soliciting and acting upon customer feedback regarding their products and services.


• Providing online communities that allow customers to interact with each other and the firm.


• A soda maker featuring pictures taken by customers on the labels on pop bottles.

The questions to ask include...
.....1. How could we be helped by customer involvement?
.....2. How can customer involvement be facilitated?
.....3. How soon can we get it going?

Quick response -- effective marketing

Moving in a timely manner can be the difference between success and failure.

Economic news was very bad this past week.

• The stock market dropped several hundred points one day mid-week.
• Top management of the U.S. "Big Three" automakers were on Capital Hill to stump for Federal funds to assist their firms (GM, Ford and Chrysler).
• Experts and newscasters tell how losses from sub-prime home loans and foreclosures in the residential house markets threaten the U.S. and world economies.
• The Federal Government is working on a taxpayer funded $700 billion (at a minimum) bailout of various financial entities in an attempt to shore up the U.S. economy.
  

Obviously, this news is causing much uncertainty and angst among consumers.

Such times call for timely marketing responses
The newspaper advertisement (above right) is an example of a thoughtful marketing response that addresses issues on customers' minds. However, a significant portion of this advertisement's effectiveness is due to when it was in the newspaper -- in the weekend editions of the week described at the beginning of this entry.

Displaying benefits in promotions -- part II

A May 2008 post on this blog discussed the benefits of directly tying a business's promotional theme to variables impacting customer lives and telling how your product, service and/or store can assist consumers in dealing with that issue.

Currently economic concerns -- ranging from high fuel prices to falling values for their homes -- are now on the minds of many U.S. consumers. Several examples of advertising that clearly address such concerns are currently on television. Each commercial's appeal is easy for customers to understand... you are in tight financial times and our product can save you money.

Here is one such television advertisement:

Ask yourself

1. What issues are your customers dealing with?
2. What concerns do they have?
3. Do I know even the answers to questions 1 & 2? If not, that's an item for future blog posting.
4. How can my marketing efforts be tailored to address those issues and concerns?

Business is about today and tomorrow

Sole focus on the "here and now" can hurt in the future.

Premise #1
Businesses need products and services that are attractive to consumers in the "now". If a firm cannot sell enough in the "near-term", the "long-term" may not arrive for that organization.

Premise #2
Businesses cannot be so focused on their current product offerings that changing trends and consumer preferences are not recognized and acted upon.

Premise #3
Successfully balancing both premise #1 and #2 is difficult.

The example of the parking lot
While sitting outside a Starbucks in Burbank, CA (see 8-29-08 entry), the issue of balancing the near-term with long-term business perspective was parked right in front of me. Literally parked.

There were 24 vehicles in the parking lot on this Saturday morning at 7AM.
- the largest 11 vehicles were all from US automakers
..(12 SUVs/vans/pickups and 1 very large car)
- the remaining 13 smaller vehicles (all cars of various sizes)
..were from non-USA automakers

With gasoline around $4 per gallon, Toyota and Honda reported vehicle sales at very high levels during the summer of 2008. During the same period, American automakers' sales were poor. What caused US automakers to be in the position of not offering more fuel efficient vehicles when US consumers were craving them?

The lure of the high profit margins from larger vehicles (per unit profitability of pickups and SUVs have been - until recently - very high) was too tempting and became the prize of American automakers. Such a limited focus blinded executives from American automakers from possible opportunities and threats -- including the prospect of high fuel prices and the increasing green attitude of American auto buyers.

The impact of higher prices of fuel is not unprecedented. One only has to recall the high priced gas (with accompanying long lines at service stations) of the 1970s. Since such uncontrollable variables impacted the auto industry before, why were they missed by American automakers just 30 years later? The answer: too much focus on the "here and now" to the detriment of watching for (and reacting to) events and issues that would shape future consumer behavior, wants and needs.

Simplicity can be bliss

Product innovation and continual product improvement are two of the main mantras of US business. In many industries it is "improve or die".

However, product improvements and innovation for their own sake can be a strategy misstep and should be aligned with consumer desires.

Take In-N-Out Burger, for example. This western (California, Nevada, Arizona & Utah) burger chain has maintained a simple and stable menu (see picture) for many, many years and their customers love it. They offer just a few items but they do them all exceedingly well. No chicken sandwiches, roll-ups, salads or breakfast here. Just how many hamburger patties and do you want cheese? Only one size in servings of french fries, shakes and coffee.

.....

Obviously In-N-Out does not try to be the fast food outlet for every fast food buyer. They know their customer base and focus on them.

.......

Living in an area of the country without any In-N-Out Burger outlets, I continually get comments like "wish we had them here" from complete strangers when I wear one of my In-N-Out t-shirts.

.......

In-N-Out keeps its customers in mind and those consumers want few (if any) changes. Such simplicity and limited product assortment is not for all firms but businesses need to take care not to innovate their products away from their customers' desires.

Don't forget current customers

New customers not the only route to increased profits

While not taking anything away from the importance of new customers, current customers are often overlooked as a source of increasing sales.

How can this be? I think a major reason is that many businesses find it easier to track new customers than tracking increased sales from current customers. Businesses reward employees where data is available (i.e. attracting new customers) and, therefore, employees focus on new customers.

However, not looking at current customers as sources to increase profits is a mistake. By their very nature, current customers have an established relationship with the business... thus costs of their acquisition is lower than attracting someone that is not a customer.

An example

Dropping by a Starbucks one morning last week the sign above was prominently displayed (along with similar wording on the receipt). This "come back again later today" promotion has multiple potential benefits to the coffee chain:

1. Starbucks increases sales by bringing traditional AM customers back in the PM.


2. Starbucks gets the profits of the drinks ordered in the PM ($2 promotion price - actual cost associated with the drink = profit).


3. Builds the habit of stopping by Starbucks after 2 PM even after this promotion ends.

To do
The question is how can your business attract more purchases from current customers?

"Shoot straight" with customers

Be accurate,
.....don't overpromise.

On a recent trip I had the opportunity to eat at Pret A Manger -- a sandwich shop with locations in London and New York City. These busy eateries specialize in preparing "natural, tasty food".

One item I noticed was Pret A Manger's promise (see photo) that states:
"Just Made" organic when we can, always
preservative-free and "Just Made", of course

This product statement is straightforward and clear. It promises without overpromising -- note the "when we can" clause. From the crowds at the several locations we passed and/or ate at, it is a hit with customers.

Check your advertising carefully

Examine ads from customer perspective.

Like in everything else, mistakes happen in advertising. However, some mistakes result merely from the failure to look at (or listen to) the advertisements from the perspective of the intended audiences.

Taking the time to closely look at the words and images to anticipate how they will be received by consumers is a must. Sometimes businesspeople are so close to the ad or time pressed that problems are not found.

For example, the newspaper ad shown is for a "huge" sale going on at a local car dealer.

Stop... you might pay too much! Unless you shop at our dealership this weekend!
However, this appeal does not match up with the image just below it which indicates prices won't be slashed (see the blue arrow inserted on the ad). Oops.

It's not the end of the world. Maybe not many people noticed it... but those who would were likely interested in the advertisement (a.k.a. car shoppers!). In any case, it could have been caught and corrected prior to publication.

Deal with issues impacting consumers proactively

It's not a new idea...
businesses just need to do it.

Gas prices have skyrocketed and have impacted consumer spending far beyond merely buying fuel for their personal vehicles. This is due to increased prices across many product types as a result from higher fuel prices for production and transportation being passed along to consumers.
....
Consumers are feeling the pinch.

If consumers are changing some buying habits this summer -- from what vacations taken to trading in trucks and SUVs for smaller cars, etc. -- what are businesses to do?

Sitting on the sideline should not be an option.
Businesses need to be proactive in addressing such consumer concerns. While offering free or cheaper gas with a purchase is not a new promotion (see example advertisement), it is very relevant to American consumers during Summer 2008. Hotels, restaurants, museums, etc. are promoting how their organizations can be part of "staycations" for those limiting or dropping vacation plans and staying closer to home (see example advertisement).