From the Charleston Regional Business Journal

By David L. Rawle

Brian Finkelstein came home and found a Comcast technicial asleep on his couch. The technicial had fallen asleep waiting for Comast’s customer support line to answer the phone.

Finkelstein videotaked the sleeping technician and posted it on YouTube. Within hours, the video was viewed by more than h alf a million people. Needless to say, the video dealt a real blow to Comcast.

The Finkelstein video is but one of many examples of what is now referred to as “consumer-generated media.” Blogs, wikis, message boards, video-sharing sties and social networking pages are all part of the growing trend of consumer-generated media.

More than 112 million blogs are now in the blogoshpere. More than 200 million videos are viewed daily on YouTube. And more than 14 million photos are uploaded daily on Facebook.

Vincent Ferrari encountered a combative service representative at AOL. He recorded the call and put the audio file on his blog and YouTube. He even endedup on NBC’s Today show.

Consumers rule. Consumers control the dialogue. Consumers are talking about you. And there are tremendous benefits in listening.

Carefully listening to consumers does even more than protect your reputation and strengthen your sales. It can provide valuable market research information. It can help tell you where the weak spots are in  your product and service. And it can reveal  your personnel strengths and weaknesses.

Various methods exist for staying in touch with what consumers are saying about you. For example, Technorati blog search, Nielson BlogPulse and Google Blog Search each provide ways to monitor blogs. IceRocket searches across blogs as well as MySpace pages, news sources, images and videos. YouTube and Google Video Search, along with Flickr and other photo search sites, are valuable. And then, too, you can look at ratings sites like Epinions or Trip Advisor.

Beyond looking at these sites, analyze the comments that are out there — How many there are, where they come from, what issues they are addressing, what kinds of emotions they are expressing, what you can tell about the sources of the comments.

In short, there’s a lot of slicing and dicing to do, if you really want to understand and respond effectively to what’s being said.

We are all living under the critical microscopes of consumers. So, what’s the best way to thrive in these conditions?

First, do a reality check on your product or service. Make certain that you are delivering on your promise.

What matters most to consumers is your credibility. They want to feel that they can truse you, that you’re being open and straight with them. they want to feel that you’re listening, and that you’re responsive to their interests, issues and comments.

Second, make communicating with you really easy for your customers. Don’t hide the opportunity in small type on  your Web site. Say it loud and clear. Encourage consumer participation.

Put all commnets on your site, even if they’re negative. Make your Web site a listening platform that nurtures a sense of community. And make every interaction with your customers a positive experience.

Just look at the kinds of companies that are thriving in today’s challenging economy. In the airline industry, Southwest stands apart from all others, in personality as well as profitability. They have successfully created a community with their customers.

So has Lands’ End, where customer service reps are encouraged to chat with customers.

And what about Comcast? Well, they learned their lesson from Brian Finkelstein and others. they now have a full-time department dedicated to monitoring all consumer-generated media, listening carefully to it and responding responsibly to it with both words and actions. As Comcast now says, “When you’re having a two-way conversation, you really get to clean the air.”

From the Charleston Regional Business Journal

By Bruce D. Murdy

I was interested in a recent article in a leading marketing trade magazine, Advertising Age, about the relatively flat “advertising” spending in the past year - up about 1.7%, led by super-marketer Proctor and Gamble’s 7.1% increase in measured media. This is a significantly smaller increase than in any year since the recession in 2001.

While most point to the troubling economic times we’re now in as the main culprit - and I agree that’s certainly part of it - I think it’s something else at work.

The business of communications used to be simpler: An ad was “advertising,” a press release was “public relations.” But the reality is far different today. And the measurement of spending just hasn’t kept up.

For years, direct marketing, point-of-sale advertising and a handful of other types of communication were referred to as “below-the-line” spending…somehow not owed the dignity of measurement. Today, what was once called “nontraditional” as well as “below-the-line” communications are the fastest growing means of communications. The lines of communication are blurring, and the 20th-century model of measurement hasn’t kept up.

The same holds true for categorizing communications. While “advertising” geniuses gather annually in Cannes to celebrate the world’s best advertising, the message is clear: They’re confused. What IS an ad? Not only are categories of advertising not keeping up, but the ability to categorize some types of communication is just not clear.

Technology has driven much of this change, and confusion, as we put consumers more in control of the dialog. But “ad fatigue” and added sophistication of consumers is also a key reason.

Marketers want to build relationships, talk with (not to) consumers, and build third-party dialog that ultimately moves the needle. While traditional advertising and PR may be a part of that mix, they must be combined with other types of communication to be effective.

There are literally limitless emerging ways to talk with your customers. Like social media engagement - actually talking online with your customers. How about blogs? And electronic customer retention management?

But it’s not only about technology. There are countless creative ways to communicate that have nothing to do with technology, like the McDonald’s billboard that actually grew grass - or the company’s recent coffee promotion in Times Square that actually “pours” coffee into a giant cup. And there are the dinosaur throwbacks that still work as well, such has flyers on car windshield wipers, or having your store mascot in the local parade?

The trick is how to measure all the activity in these non-traditional communications. Whether it’s high-tech, high-creativity, or old-fashioned high-touch, the measurement of effectiveness has been a lot less science and a lot more art.

In terms of the industry measuring how much money is actually poured into these alternative communications, there are many small players trying to keep up with the changes, but the creative ideas of today are harder to pinpoint than traditional media. So there is a lot of speculation.

At the same time, there is movement for greater measurement, greater accountability. The Web has shown all of us that analytics can be our friend, and allow for almost constant refinement to our messages and our delivery. With more and more focus (and budgets) on non-traditional communications, we’ll see tools that help us as marketers track better and more scientifically.

In the meantime, the challenge is to be bold, especially in these tough times. Tried and true might be measurable, but these are times when aggressive marketing tactics need to be the norm, not the exception.

So take a look at what you’re doing, and challenge yourself, and your marketing team, to add creativity to your messaging. It will pay off!

From the Charleston Regional Business Journal

by Bruce Murdy

Every day we receive contrary reports about whether the economy is OK or is going down the drain. With prices skyrocketing for the basics of life, from food and gasoline to what we once thought were necessities, like our daily Starbucks, we are feeling the pinch everywhere we turn. In this type of environment, marketers can be confused about the value of a brand.

There are so many unbranded choices today. Whether it is linked to professional services or a can of beans at the supermarket, is the value of a brand name really still there? Should a marketer spend any effort to create or maintain a brand, when unbranded choices are omnipresent and typically lower in cost?

Perhaps you could look at it this way. With an unbranded product, you’re marketing based primarily on the utility of the product. Does the product perform within customer expectations?

And when the product is recognized as being undifferentiated, utility is the only motivator. Does your accounting firm do tax returns — yes or no?  Does your napkin wipe up spills — yes or no? Does your soft drink quench thirst and taste good — yes or no?

And does it perform adequately for less than what others cost? Commodity time, folks.

With branded products, there’s a utility consideration. You still need to perform the function for which your product or service was created, with reasonable efficiency. Then there’s more.

There’s an implied promise of trust and quality. Consumers know that your product is good, and that any product with that brand on it is likely to be good, and probably better than the others.

One of my favorite examples of this is milk. In my hometown, the store-brand milk is exactly the same as a popular name- brand milk. Exactly the same — no additives, no fancy packaging or labels. Just the name is different.

Yet the brand commands a price premium of more than $1 per gallon. And people shell out the difference because they believe the brand is worth it. They trust it to be better; they believe it tastes better. That’s power.

Part of that brand power is also the social value of a brand. Just ask anyone about highly branded products, like soft drinks, athletic shoes, cars, etc.  Some people are Coke people, not Pepsi people.  Some prefer Fords, and would never consider buying a Chevy.  Personally, I like New Balance running shoes, and believe they are superior to Nike.

There’s a strong social value in a brand. That’s a big reason why people like shopping at Target, and Kmart struggles. That’s why major accounting firms win the big contracts when the smaller ones may be equally or better qualified.

Study after study indicates that in uncertain times, people cling to those things which they value. So while the pocketbook may scream “Buy generic,” there’s another, equally strong voice that says, “Stick with the utility, quality and social value of the trusted brand.”

It’s an indulgence that we’re willing to pay extra for, maybe because most don’t see the brands they believe in as indulgences but ones that provide real value — social value.

This means you should continue to invest in your brand. We certainly know that Wall Street values brands. But everyday consumers and businesses do, too. We want the real and perceived value of brands. We want value in the product or service that goes beyond its functional value. And consumers are willing to pay a premium for it.

So guard your brands. Invest in your brands. And market your brands. It will pay off in the short run and in the long run.

From the Charleston Regional Business Journal

by David L. Rawle

I recently had my annual physical. (Good news: I have the heart of a 20-year-old.) Through our
annual physicals, we find out how our body is doing. We talk to our doctors, whom we trust and have a relationship with, and then, one hopes, we make the lifestyle adjustments that will give us a better report next year.

In a way, that’s kind of the old-fashioned method that companies used to employ to get customer feedback. Customers and companies communicated one-on-one through surveys, letters or phone calls. Customer feedback was received and acknowledged, but the company remained in charge.

Now all of that has changed. You don’t have to wait to see how customers like you. Just turn to the Internet, where you’ll find an instantaneous and continuous evaluation of your goods or services, and not just on traditional Web sites, but also on blogs and wikis and within social networks.

Talking about you

Today, consumers are more likely to be part of a linked, online community discussing your product or service than to be communicating directly with you; just go online and see for yourself.

They’re talking about you, reviewing you, and sharing photos and videos about you. They’re deciding whether what you’re offering is worth buying, plain and simple, and whether you, “the company,” are there or not.

Suppose you’re in the travel industry, our community’s biggest industry. Travelers used to turn to the Internet for trip research and planning.

But now they turn to Web sites or online communities where what they read and discuss is often shaping their next trip decision. If you’re not part of that decision-making process, you’re essentially closing your eyes and hoping travelers will head your way.

So the challenge is, how do you rejoin the consumer conversation and create those crucial consumer relationships in this online world?

It’s really a three-step process that we regularly use to lead our clients through this new 2.0 world:

1. Monitor. Read what’s being said about you and about your industry; pay close attention to who’s doing the talking.
2. Participate. Watching or just reacting isn’t good enough; you have to join the dialogue just as you would when joining a new community to be heard and trusted.
3. Anticipate. Think ahead about what issues seem to be bubbling up that you can head them off at the pass and address them head-on.

Operationally, these steps might come to life in a variety of ways, such as educating key staff members about sensitive issues being raised by consumers online; aggressive monitoring of online discussions to secure product feedback; dedicating a portion of a staff member’s time to participate, as a consumer would, in the online dialogue; and creating a PR strategy to counter negative attention.

For example, staff members who interact with your customers need to be trained on the implications of the Web 2.0 world. Living and delivering on the brand promise is more important than ever, because our consumer communications-driven society can shatter a brand in an instant. Staff members need to appreciate the greater consequences today of a bad customer experience — and need to encourage satisfied customers to communicate their positive experiences online.

Similarly, listening to the online conversation and understanding how people are talking about your company are critical. You need to be monitoring what’s being said about you, and about your competition.

By doing so, you can detect early any issues that may become potential problems, improve your ability to react quickly and do a fast “damage control” if necessary.

Bring your message online

But again, it’s not just about reacting, it’s about proactively participating and making your message part of the online conversation.

The bottom line is that there’s a whole new world out there that is shaping your image and your bottom line.

It’s the Web 2.0 world, and you need to be engaged in it not only strategically but also operationally. And that’s fun. Because it’s always changing and challenging, and never dull.

And what’s really cool is that you can take your company’s “temperature” at any and every instant, no longer waiting for that annual “physical.”

From the Charleston Regional Business Journal

by Bruce Murdy

In his popular book, “Stirring it Up: How to Make Money and Save the World,” Gary Hirshberg makes a compelling case for the wisdom of not only going green but also of promoting green. And he shows that green policies produce very green bottom lines.

I am reminded of one of Sallie Krawcheck’s great points at a recent Martin Luther King Jr. Business and Professional Leader Breakfast. She said that companies with management teams that are diverse in gender and ethnicity inevitably perform better financially.

Bottom line: Doing right can lead to doing well.

As for Hirshberg, a quarter of a century ago he teamed up with a friend named Samuel Kaymen in New Hampshire. They made an organic yogurt called Stonyfield. They started with next to nothing. And last year, sales topped $300 million.

That’s a lot of yogurt.

Stonyfield has spent very little on advertising. Practically nothing, in fact. And Hirshberg’s very proud of that fact. He tells the story of doing samplings all over the place, getting people to try the product and then counting on word-of-mouth to build demand.

But with all of Hirshberg’s pooh-poohing of marketing, Stonyfield has, in fact, abided by a cardinal rule of marketing: be the brand.

Stonyfield is the brand. Don’t take my word for it. Check out their Web site, www.Stonyfield.com.  It’s as green as green can be. The product is organic, the cows are nurtured (you can even have a “chat” with a cow), good works are discussed, green tips are dispensed — you really have a sense of a very specific brand.

Among its boasts is Stonyfield’s assertion that it was the first American manufacturer to produce a zero-carbon footprint.

As justifiably boastful as Hirshberg is, he identifies several other companies that have gone green, promoted green and — as a result — increased their bottom line. And that’s worth exploring. After all, the conventional wisdom in corporate America may be that going green is more expensive and should be avoided except to the extent absolutely demanded by the consuming public.

Not so, says Hirshberg. And he’s got lots of good examples to back him up.  Sure there are “granola” kinds of companies like Patagonia and Clif Bar, but there are also some hard-nosed big guys like Wal-Mart.

The Wal-Mart commitment to green is really incredible, in great part because of the scale of that company. For example, doubling the efficiency of the company’s trucking fleet will save Wal-Mart more than $300 million per year. And imagine the impact of Wal-Mart stores heated by biofuel boilers that burn used cooking oil from the in-store cafes and motor oil salvaged from their auto-service centers. For a company haunted by a negative public image, Wal-Mart may turn things around with its environmental commitment. And, with that commitment, Wal-Mart isn’t just saving money.  They’re helping save the planet.

Even Rupert Murdoch, hardly known as a tree hugger, has pledged that his empire, The News Corp., will become carbon neutral in three years.

A product is a product. But a brand is a promise. Stonyfield, Patagonia, Wal-Mart, Murdoch and many other major corporations, including IBM, DuPont, Kellogg’s, Heinz, etc., are endowing their products with the promise of environmental responsibility.

In so doing, they give customers something more to associate with these products. They differentiate themselves, decommoditize them.

What’s your plan?