Archive for category: Relationship Marketing

What’s in Your Phone?

16 Jul
July 16, 2014

New digital products have become central to the offerings of almost every successful business and brand. They have the ability to reshape entire industries by changing the nature of customer relationships, creating new sources of revenue and expanding the way we think about brands.  And this applies to digital products themselves, such as wearable technologies and smart phones, and their ecosystems of connected applications, web interactions, and apps.  It also applies to the technologies that make these wearable devices possible.  Advances in integrated circuits, flexible circuit boards, flexible and hard sapphire glass, and micro-miniaturization of manufacturing capabilities all serve to drive the industry forward.

Who does the heavy lifting when it comes to the tough choices in design when trading off an entire consumer experience against the cost of providing everything necessary to control and optimize that experience, along with the features required to deliver the hardware experience?  It’s the industrial designer and the user experience design engineer.  Their decisions affect every part of the product and the overall experience.

Decision-based design methodologies provide a framework within which the design community can conceive, articulate, verify, and promote theories of design beyond the traditional problem-solving view.  These methods take the guesswork out of identifying tradeoffs and help organize the decision-making process.  These methods also dovetail with the processes and organizations responsible for innovation in design – both internal to the brands and their external design partners.

Faster, more accessible electronic technology coupled with new materials and new ways of manipulating them has afforded businesses the ability to create and market products and services all around the globe to a diverse population of customers. Today’s design engineers need an innovative mind, together with a strong understanding of consumer preferences. In the globally competitive market, a product’s success depends upon both understanding the ‘‘big picture’’ to address the needs, as well as attention to the ‘‘engineering details’’ to meet technical expectations.

Marketing needs to keep pace with, and in fact, deliver leadership in experience management.  Since we understand the customer’s mindset, needs, and desires, as well as their use patterns of technology and interactive designs, it’s our responsibility to ensure can offer a better, easier, and more delightful overall experience without drowning the customer in too many features and functions.  Let’s take that challenge, keeping pace with and coordinating design, implementation, customer engagement, and products to deliver innovation that works.

 

 

Humanism. Can we scale it?

06 Mar
March 6, 2014

hu·man·ism

“any system or mode of thought or action in which human interests, values, and dignity predominate.”

There is a revolution going on.  A revolution in the way customers are finding, interacting, and advocating for a wide variety of good and services.  The revolution extends way beyond the Internet, yet is fueled by the amount of information and the ease of access.  And it’s going to get more and more intense.  One response by certain brands to this new era of information provided by the Internet and social media is to focus on becoming more “human” in their interactions with customers.  How, and why are they doing so?

Brands have recognized, through this revolution, and through academic knowledge and experiments like those documented in “The Human Brand – How We Relate to People, Products, and Companies”, by Chris Malone and Susan T. Fiske, that loyalty, advocacy, and connection toward a brand is driven from just two things: warmth and competence.  In fact, the human brain is wired to identify both these elements from a stranger’s face in just seconds.  The research goes on to suggest that brands are stand-ins for people, logos are substitutes for faces, and companies are the equivalent of tribes.  Brands can, and do, exhibit warmth and competence in varying degrees.  Warmth describes the nature of how the stranger or brand appears as friend or foe.  Competence is the appearance of how successful they’d be in carrying out their intentions. We have an immediate and spontaneous attraction to signs of warmth and competence.

As more companies make their customer support and sales efforts more human-centered, people will raise their expectations about what is acceptable in their interactions with brands.  If the brand is not fundamentally committed to bringing more human connections to its underlying business processes, those expectations will be unmet, driving the potential customer further away instead of closer to advocacy.  Moreover, trying to fake warmth and competence merely commoditizes the effort, backfiring on a fundamental basis.  For example, grocery stores issue loyalty reward cards.  Most people of one for every store they frequent, obviating the intended response.  More and more consumers are coming to understand that the rewards they get – through frequent flyer miles, grocery cards, and credit card refunds, are actually a tax (just read the fine print) on the goods and services they purchase to reward heavy users, and result in increased costs without actually driving more loyalty at all from most people.  Though it sounds odd, the complexity of these programs ensures that many of the “rewards” are never actually delivered to customers.   A recent study of credit card reward programs concluded customers and card issuers are both worse off from these rewards.

It is not rewards that create warmth, nor programs that deliver competence.  Worthy intentions signal behaviors of deserving loyalty.  Those intentions are manifested in elements like knowing a person’s name, and delivering some extra attention.   Creating opportunities to connect with your customers in a meaningful way can lead to better loyalty and advocacy – even if it is to respond to a complaint.

In the 2010 Customer Experience Management Survey, Strativity Group discovered that customer who complain, and then experience promptness and respect, become more loyal than others.

The question remains: can we use a combination of design centered thinking, information systems technology, and just plain good customer service management to deliver a human approach to our customers as our brands grow larger and more global, or are those large brands doomed to be fractionalized by niche companies setting the bar on “humanism” by the very nature of their size?

Step Three – Social Media for Inbound

08 Aug
August 8, 2012

Just a few more weeks of summer, and then back to more frequent writing and posting.  Already the summer has been busy, and I’ve had numerous great conversations and discussions with other CMO’s about inbound marketing.  At the CMO Council Advisory Board meeting in New York, we discussed some very interesting ideas surrounding “Uplift Marketing” and “Precision Targeting” – more on those later.

Meanwhile, my penultimate post in this series, on the elements which create valuable and effective inbound marketing strategies, is focused on the social media aspect of driving inbound.

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Step One – Content Strategy for Inbound Marketing

16 Mar
March 16, 2012

As promised at the end of January in my last post, I am going to work through the strategic implications of the three key elements of an inbound marketing transition and plan.  Those are of course a) your content strategy, b) Search Engine Optimization, and c) your social media strategy.

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