My Photo

Mailing List


  • Get Brand Mantra News
    Email:

Site Meter

Powered by TypePad
Member since 12/2003

« April 2004 | Main | June 2004 »

May 27, 2004

Transparency's Silver Lining

Via Ari Paparo and Frosty Mug:

Should corporate blogs allow trackbacks? You might say no when you read the laundry list of negative trackbacks on Movable Type's post about licensing terms for their Developer Edition. This is transparency at its finest: how many companies are willing to be open enough to allow feedback from customers that the entire world can see?

In my opinion, transparency is a great thing, but it takes a lot of courage. Companies need to remember that negative word of mouth is going to happen anyway. It reminds me of individuals who don't take constructive criticism well, so people end up talking about them behind their backs. Mature people -- and companies -- are open to hearing the good, the bad and the ugly so they have the opportunity to learn and grow.

Transparency tools like trackbacks & comments allow companies to engage in a dialog. I'd expect to see some follow-up posts from Movable Type along the lines of, "Hey, we heard you; thanks for the feedback. And here's what we're going to do about it." Even if they don't plan to change their pricing, they at least have the opportunity to address customer concerns. If I had the choice, I'd rather work with an open company like Movable Type than a company who doesn't want to hear what I have to say.

May 26, 2004

Corporate Blog Examples

I've had several clients express interest in blogging for their businesses, so I'm going to start a running list of companies that are doing it well. Not trying to compete with Rick Bruner at Business Blog Consulting; he's got a phenomenal and comprehensive review of business blogs. I just want a short list of blogs sponsored by companies that sell products, so it won't include micro-businesses or intellectual-capital type companies. I'll add to this list as I come across them; if you're aware of others, please let me know!

GM Smallblock Engine Blog

Ford Motor Company blog

XBox Live blog (unofficial blog)

Maytag Skybox blog

Kodak's Ofoto.com: Ofoto Blog is used to get feedback and resolve issues with Brownie, a new beta Mac application (found via BeConnected)

PerceptionAnalyzer: Dial.log blog has a nice mix of posts on their product and on relevant news & information for their target audience (marketers)

Bplans.com: Bplans Blog is a great extension of Bplans.com, an informative site for entrepreneurs starting a new business. It's owned by Palo Alto software.

800-CEOREAD: The CEOREAD blog gives great reviews on the business books sold on the main site.

Corporate blog articles:
Fortune Magazine, Why There's No Escaping the Blog (Jan 05)
Gates backs blogs for business
Inc.com Technofile: Blogging for Business
Are you afraid to blog? by Robert Scoble

Advertising overkill

From Fool.com:

Procter & Gamble (NYSE: PG) has come up with an innovative process to place images and text on the surface of Pringles potato chips -- or should that be crisps (I always forget). So now a person can spy one message or other before she downs the next victim from the canister.

According to the release, first up will be a promotion involving one of Hasbro's (NYSE: HAS) popular board games, "Trivial Pursuit Junior." Questions from that brand will be featured on the crisps, along with the answers, of course. (Actually, P&G should consider placing the questions in one canister of crisps and the answers in another canister to double sales -- as well as the anger level of consumers, I suppose). The launch of this initiative is scheduled for summertime.

It won't stop there, obviously. This will only be the tip of the iceberg. All kinds of advertisements could be placed on the product.

This drives me crazy. I can't go anywhere or do anything without having an advertisement stuffed in my face. Literally.

May 25, 2004

Compartments

The following phrase jumped out at me as I was reading the partial transcript of Peter Weedfald's keynote speech at Ad:Tech on FCNow (Peter is SVP of strategic marketing and new media for Samsung):

Samsung has been the driver of digital convergence for the last five or six years. We look at three worlds for everybody. You have a business world, a mobile world, and a home world.

So many companies get caught in the trap of focusing on where their customers are, instead of who they are. For example, most of my B2B clients insist that emotion isn't a factor in business purchases... only for home-world purchases like cars, clothes or other consumer goods. But John the IT Director is also John the father, husband, son, volunteer, runner and traveler. John may be nervous about losing his job, or he's having a disagreement with his boss, or perhaps he just got a promotion. He may have arrived late to work after an argument with his wife. His father could be ill. He often runs errands on his lunch break. Sure, John may buy Samsung products for work, on the go, or at home. But Samsung can't forget that John is still John, regardless of where he may be. John doesn't become an unfeeling robot when he walks through the door of his office every morning and make decisions on facts alone.

Microsoft takes the idea of compartmentalization even further. Seven different business units, each focusing on a type of product: Office, Windows, Mobile Devices, Servers, Developer Tools, etc. etc. Each product group has their own agenda. Yet John the IT Director purchases Office, Windows, Servers and Mobile Devices at work, but also purchases Mobile Devices, Windows and Office for his home use. His view of Microsoft products at work influences his view of Microsoft products at home, and vice versa. Perhaps he's been identified by the Server group as a Top-Tier Customer, so he receives special service and attention on this product at work. But at home he's frustrated by his inability to get support on Office since he's just one of millions of home customers. How would Microsoft do business differently if its strategies were driven by customers instead of products? What if John had a special 800 number or MVP customer code to get the same level of attention at home as he does at work? How would that impact his perception of the Microsoft brand?

Think about who your customers are, regardless of what product they use during what hours of the day. Get out of the weeds of features/benefits and talk to them like the real people they are. Earn their trust. Be likable. If you sell 'business-world' and 'home-world' products or services, stop compartmentalizing: it's quite likely that the very same customers purchase both. Identify your most valuable customers across product lines and figure out how to give them a consistently good experience with your brand. It's a different way of thinking. But when you align yourself to your customers instead of making them align themselves to you, you'll become a much more attractive choice.

May 19, 2004

All things to all people

Trying to be all things to all people is one of the biggest stumbling blocks to attracting and keeping customers. Choosing a target market is tough. It means eliminating entire groups of people from your messages. But without focus, you risk a bland, diluted message that means nothing to anyone.

When I don't have market stats to work with, I rely on the good ol' 80/20 rule. 80% of your potential target market probably won't buy from you -- unless you've got an unlimited budget to actually be all things to all people. Since that's not usually the case, let's figure out the 20% who are most likely to buy. This might be a demographic like freelance workers. Or it might be a state of mind, like Apple computer fanatics. This should be a group that actually needs or wants what you have to offer... and since your competitors are probably trying to be all things to all people as well, this small group doesn't feel particularly cared for.

One of the top players in the building automation software sector picked a small vertical market -- healthcare -- and created a completely customized offering for this vertical. Now any hospital in any country in the world either has this company's software or has this company on its bid list. They own this market because they had the guts to pick a small group, understand its needs, and develop a terrific answer to their problems.

Let's say your business could appeal to anyone purchasing products online. Great. Just don't throw a bunch of marketing spaghetti on the wall to see what sticks. Pick a small but promising group that's manageable. Get to know them. Develop programs for them. The more personal you get, the more they'll love you. Even if you're starting out with a narrow audience -- say small business owners -- there's room to get even more targeted. Start with a small test program with a subset of your prospective customer base and see what works. Chances are, it will turn into a self-funded program that will allow to move on to the next sub-group. And the next. And the next. It's like eating an elephant one bite at a time.

Smart Buzz-Building

I just received the following email from SkyHigh Airlines, a funny viral-marketing airline parody created by Alaska Airlines. I can only assume that they got my email from my blog post featuring their site. I'm also assuming that they got some decent traffic from various blog posts like mine, and they're hoping to keep the buzz going. And here I am, doing exactly what they want: featuring this email in my blog. I have to give them credit: they're figuring out how to leverage the blogosphere to create and maintain buzz.

From The Desk Of Howard Barium Chairman and CEO, SkyHigh Airlines

May 1, 2004

Hello valued passenger or creditor!

I come to you with great news: SkyHigh is doing something!

Like many of you, I was surprised by recent reports of the alarming disparity in SkyHigh airlines seat pricing, one seat sometimes costing a thousand dollars more than the seat next to it.

Once I recovered from a wave of profit-induced dizziness, I was shocked. I immediately pledged to look into it after my golf game.

What I found was a computer system so slow and antiquated I had to give up on even getting my e-mail. I worked on it for hours until a clever young man pointed out I was typing things into the office microwave.

After that was cleared up, I realized that our fares are not random enough. Our consumers are in real danger of getting the same fare!

It was clear. SkyHigh needed to develop a proprietary random fare generator. One that is beyond reproach for randomness and corrupting human bias. One that gives us the ability to look consumers in the eye and say, “We have no idea how this happened.”

The solution? Trent, the pricing chicken.

Unlike Alaska Airlines and their Common Sense Fare initiative, Trent has very little initiative and does it pretty much for the feed. And common sense? Ever try talking to a chicken? On the other hand, I bet no one at Alaska can work a 10-key with their face.

While we are on the subject, Alaska is flaunting simplicity? Have you looked under the hood of your car, lately? Complexity is the future. It’s sad really. It’s like the confused Neanderthal throwing rocks at the moon to make the sun come back. Poor things. I wish them best of luck.

No, you don’t have to thank us. Our fares are random because random is only fair.

See this wonder of white meat we call Trent at www.skyhighlines.com.

Okay.

Good stuff.

Howard

More on bite-sized chunks

Rob at BusinessPundit comments:

If anyone who reads this blog works for Fortune or Business2.0, I have a complaint. Both of those magazines are great reads, but you are hurting your business by limiting online access so dramatically. If you would make a handful of articles available each month for free, many business bloggers would link to them, you would get more traffic and a result more subscribers. Fortune used to have a lot of free stuff, but it seems now that everything is subscriber only after the first page. I am a subscriber, but I can't share some of your best articles with the rest of the blogosphere. Fast Company has the right idea. Make just a taste of the magazine available initially, then when the new issue comes out make most of the previous issue accessible by anyone. Media people in general seem afraid to give something away, which prevents you from gaining the following that you really deserve.

I imagine that Jackie or Ben at Church of the Customer would say that these mags aren't following the evangelism tenet of Bite-Size Chunks: find something to give away in order to spread the word and get greater return. One of their blog posts on this topic dealt with bite-sized chunks at retail. John at BrandAutopsy commented:

Years ago as a marketing manager for Starbucks, we learned for every five beverage samples we would sample to customers, it would stimulate a purchase. That’s a 20% conversion rate.

I wonder what the conversion rate would be for magazines? If one subscriber resulted from every 5 blog links to a magazine article, that would be a pretty good return. I guess they'll never know...

May 18, 2004

What we do best

I'm getting caught up on my blog reading now that I'm back from Sweden, and I found a great discussion on Worthwhile on the post "What Do You Think You Do Best?" I relate strongly with the author, Anita Sharpe: she states that she's good at seeing patterns. I think that's what I'm best at as well. She calls it "putting everything through a mental blender." So I suppose that brand strategy development is a bit like making a shake: drop an equal mix of company, competitor and category information to the mental blender, then add a double-dose of direct customer learning. Mix it all up -- ie. look for the patterns and the common denominator that makes the strategy desirable, distinctive and deliverable -- and we've got a special customized blend. Fun stuff.

Thought for the Day

"You say I started with practically nothing, that isn't correct. We all start with all there is. It's how we use it that makes things possible."

- Henry Ford

Update: Here's a good post from Seth Godin that puts this quote in action.

I just finished giving a talk to a group of 400 high-powered (high-leverage, high-paid) credit card execs. As I left the hotel, I passed a much smaller room, where a seminar for local CPAs was going on.

The snacks didn't seem as good. The booklets weren't that interesting either. apparently. But what occurred to me is that the folks in the second room were just as smart and just as talented as the execs in the first room.

The first group was enjoying the benefits of aiming high. They didn't get these jobs because they were arguably smarter or had better connections or had gone to Harvard. No, they were starting with the same raw materials as the group in the second room. The difference, i think, was that a long time ago, the people in the second room had made a decision about what they deserved, or what they were capable of, or what they were going to stick with. And it was a bad decision.


May 17, 2004

Brand Innovation

Check out the 10 Types of Innovation from the Doblin Group. Excellent work. In summary, the types are:

Business model
Networks and alliances
Enabling process
Core processes
Product performance
Product system
Service
Channel
Brand
Customer experience

My only point of dissention is that they limit Brand innovation to methods of communication. I could make the case that every item on this list is (or should be) informed by the brand strategy. Ultimately every item on the list impacts the customer experience, and the customer experience drives brand perception.

Via FC Now

May 14, 2004

Brands and Complexity

Greetings from Malmo, Sweden! Finished up a couple days of meetings here with my client and fellow blogger Johnnie Moore. It was terrific to finally meet face to face after months of blog debates. In our conversations it became clear that we see the world from two quite different perspectives: Johnnie's approach is quite fluid, flexible and evolving, whereas I look for boundaries and structure. Two quite complementary viewpoints; I love it! I can tell we'll work well together.

I want to recruit Johnnie to write a post on his perspective on how brands 'form out of chaos & complexity.' as he can explain it much better than I... And synchronistically, I just received an email today from blog visitor Patrick from Australia, who says:

I have been in business, consulting and marketing for a long time, and I have come to realise a very fundamental issue, or question. I start to believe that no one really knows what works – when it comes to sales, or more specifically, branding. The world out there is just too complex to really figure out how those millions of people internally and externally will respond to which ever message you put out there.

My premise is quite radical: nothing works by design – everything emerges out of chaotic, self adaptive patterns / processes. I am living with this hypothesis for a while. I am trying to understand what the implications for marketing and management need to be if we have to admit that we don’t know the answers.

Patrick, you need to start a blog. These are terrific issues to grapple with. I think of it as the 'ecology of business,' where there's a complex system of cause and effect. I wanted to post this comment here and see what the folks here in the blogosphere have to say about it. And I'm going to start chewing on this as well! Good food for thought.

May 13, 2004

Blog Award Nomination

I'm excited that What's Your Brand Mantra? has been nominated for the MarketingSherpa's Reacher's Choice Award, along with a few of my favorite fellow marketing bloggers. If I merit your vote, I'd appreciate you letting them know!

Click here to vote...


May 09, 2004

Off to Sweden

I'm kicking off a new project in Malmo, Sweden tomorrow and will be gone for a week, so light blogging forecasted. The project should be great fun for two reasons: first, it's a multinational customer research and brand strategy project, which will be terrific experience. And second, I've recruited fellow blogger Johnnie Moore in London to work on it with me. Blogs are terrific ways to get to know how people think, and I think we'll start seeing a lot more 'virtual team' formation among bloggers. I'm looking forward to meeting Johnnie in person after months of blog debates!

Listening

From Fouroboros:

There's a great line in "The Hunt For Red October." Maybe you remember it. Jack Ryan, looking at a radar screen, asks "What are those destroyers doing?" The Captain says "They're listening with sonar, looking for the Red October. Funny thing though--they're moving so fast, they could run over my daughter's stereo and not catch it."

They're listening. But moving fast. So they can't hear.

Isn't that what most companies do about listening to customers and employees? Perhaps the execs say that feedback is important. But they're moving so fast, and making so many assumptions, that they can't hear. The golden nuggets that transform business aren't to be found floating on top; they're down deep, and require deeper listening and probing to find them.

May 07, 2004

Free Prize: More on Quality

In the comments section of my first post on Good Enough, Seth says:

What drives irrational humans to make choices are the Free Prizes. We assemble a list of all the options that are "good enough" and then we choose the one we choose for reasons that have little or nothing to do with our needs. Instead, we choose based on our wants.

SO

That means your offering must be "good enough" to make the list. And over time, that bar keeps getting raised. Hyundai, for example, just beat Toyota in the JD Power quality ratings. This means that virtually all cars are now excellent and virtually all cars are good enough. So we're going to pick a car for a reason that has nothing whatever to do with its ability to safely and reliably go from place A to place B.

I think this brings up a good branding issue. Seth, you're right; no one is going to buy a car based on how well it gets them from point A to point B. But if, for example, Volvo is focusing its brand strategy and message on Reliability, then Volvo darn well better be the most reliable car on the market. And for consumers looking for reliability, Volvo would then the most obvious choice. The phone company client I mentioned earlier was 'good enough' at providing phone service, but not nearly as good as the incumbent provider. But we found that small business owners really wanted a phone company that delivered on promises. So now they're working to be the best at customer service and delivering on promises, not to be the best phone provider overall.

So I'd second your comment that products need to be good enough in general, but I'd add that they must be the best at the attribute around which their brand is built. And this core attribute is likely a good 'edge' to begin brainstorming on Free Prizes.

Free Prize: Guts

Second question for Seth on our Business Blog Book Tour:

Q: You touch on a very important issue related to bringing ideas to fruition, and that’s a sense of confidence to push through a very edgy new idea. I ran into this a few months ago with a telecom client. Customers were frustrated with purchasing a line for $29.99, yet getting their first bill and finding that – with all the fees and surcharges – that line really costs about $45. I proposed that my client do something truly novel in the industry: tell the customer exactly what they’d pay for a line, and educate them on fees and surcharges. Sort of a ‘full disclosure’ way of doing business and building trust that was a complete break from how the industry traditionally operates. Of course, my client shot the idea down immediately: we can’t possibly do that, we get a lot of our revenue from fees and surcharges, our line cost would appear to be higher than our competitors, etc etc. And I wasn’t completely confident enough in the idea to champion it; it was pretty radical, and what if it backfired? My reputation was on the line. Turns out that the FCC is now considering a mandate for full disclosure of fees and surcharges. My client – along with everyone else – will reluctantly be forced to do it, yet if they had done it proactively they would have been viewed as a trustworthy champion of the customer.

Long story short, your book talks about how to sell the idea internally to give people the impression that it’s going to work… but what happens if it doesn’t? If you yourself don’t believe deep down that it’s absolutely going to work, there’s no way you can convince others. Most people know that for every idea that works, there are many more that turn out to be complete flops. So I’m thinking that the root cause of the infrequency of ‘free prize’ innovations isn’t because the idea can’t be sold, it’s more to do with the champion’s fear of failure. Can you expand on this issue and how to deal with it?

A: Great question! Of course you can’t be sure that it’s going to work. But can you be sure that the boring status quo is going to work? The fact is that all the major products and brands and services are under threat today, threat from Walmart, threat from being boring, threats from competition. We don’t spend a lot of time in a cold sweat about all that risk, but it’s real and it’s here and it’s proven.

So, what should you do? You should realize that unless you can stand up and say, “I’ll take responsibility” it’s not going to happen, so don’t even try unless you’re willing to do that.

In the case you gave, I think you could ameliorate your risk by doing it as a test, in a small market. What’s the worst that could have happened?

I would have gone even farther and gone all the way PAST the edge. I would have said it costs $49, then sent them the first month’s bill for $45 with a post-it note that says, “We were wrong. After all taxes, it’s only $45. Sorry, but it’s $4 less than we said it was.” Going to the edges gets talked about.

So going to the edge is putting the phrase "no guts, no glory" to the test!

OK, readers... who has a great example of a gutsy, edgy move that paid off?

Free Prize: Good Enough?

Good morning! Today I'm hosting Seth Godin on his book tour for Free Prize Inside: The Next Big Marketing Idea. We're on day 5 of the book tour, so there have already been a ton of great Q&A with Seth. Here's the first question that popped out at me when I was reading the book...

Q. Seth, you say about quality: “Of course your product has to be good enough… but being very good is bad. Being very good is invisible.” But that seems to conflict with the observations in “Good to Great” by Jim Collins. All the companies in his book demonstrated average cumulative stock returns 6.9 times the general market in the fifteen years following their transition from good to great. One of the three core tenets these companies followed is “What can you be the best in the world at?” After comparing great companies versus good companies, Jim concludes that “good is the enemy of great” and that being “good enough” will prevent you from realizing the financial success of great companies. Can you share your thoughts on this?

A. We’re in violent agreement on this. If you’re not the Mona Lisa, not the best in the world, not the one worth paying extra for, of course you’re not great and you don’t win.

My point about “product has to be good enough” puts the emphasis on the word “product.” Because the basic item—the toothpaste, the candy, the copywriting services—it’s all the same. The commodity part has be good enough, but the free prize has to be great. The Free Prize is the packaging or the way you answer the phone or the pricing or the delivery or the bonus of frequent flyer miles. The Free Prize is a gimmick until it turns into the thing that people actually talk about.

So, yes, your commodity, your product, the thing people THINK they’re buying… that has to be good enough. But your Free Prize has to be great.

May 06, 2004

Proactive vs Reactive

Great post on Ari Paparo Dot Com about solving customer problems before they arise:

I just came home and turned on my Tivo. Here's what I saw:

Friends Season Pass Alert
On Thursday evening May 6, NBC will be airing a special hour long retrospective Friends episode followed by the series finale.`Because there episodes are back to back, if you have configured your Friends Season Pass to automatically pad extra time after each show, your DVR may not capture the series finale. To ensure that no recordings are missed, please be sure that your Season Pass is NOT setup with 'passing'.[complete instructions for fixing the situation]

I'm just amazed at this. I don't even have a season pass for Friends. But Tivo realizes that so many people are going to want to see the finale, and that any one of them who misses it because of a Tivo "bug" will blame them, that they take the proactive step of alerting the user to the potential problem.

Imagine if Microsoft took a similar approach.

"We've noticed that you set up an IMAP mail account in Outlook. Outlook behaves slightly differently when use use IMAP vs. the more common POP mail. Would you like to take our interactive tutorial now?"
Or Ford.

Dear Ford Owner. You may have noticed that gas prices in your region are increasing. We thought we'd let you know some simple techniques for reducing your gasoline usage and extending the life of your car..."
Or your stock broker.

John, you may have heard about the Fed raising rates last week. We'd like to explain how we believe this is likely to affect your portfolio...

What can you do to solve a customer service problem before it arises?

May 05, 2004

Transparency

On a related note to my last post on open-source marketing, check out BuzzMachine on transparency in politics and business.

We've heard the jokes about candidates for President in years to come whose old opinions will be dragged up from their blogs. And I'll just bet that will keep would-be pols from blogging. But that's a bad thing, for transparency is just what is needed in politics. I spoke with a journalist recently who said he couldn't blog because he'd probably reveal some opinion that might keep him from, say, covering the White House someday. Organizationally, he's right; that's what his bosses would say. But that, too, is a bad thing, for transparency and honesty and candor are just journalism needs.

Fred's right: About the only business he can imagine where transparency is a bad thing is national security.
As for the rest of us: It could be the beginning of an era of honesty (or at least candor): the age of transparency. That (you'll be sorry to know) is why I think Howard Stern is so appealing to so many; it's his blunt honesty. That is also why reality TV is so big; we love seeing people stripped of their pretense.
Sadly, most of society is not transparent at all. You don't know what goes on it the boardrooms of the companies whose stock you own. You don't know what happens in most of government. You want to know more about how the news sausage is made.

If citizens' media leads to any big social change -- emphasis on "if" -- it could be a drive toward transparency by example. If Fred Wilson and Mark Cuban and Margaret Cho and you and i are willing to stand out here naked, why isn't the next guy? What does he have to hide? And if he isn't willing to show us his after we show him ours, then do we want to trust him with our vote or our money or our news?

Advertising Overload

Thanks to The Bold Approach for the Yankelovich research on advertising and marketing. Nothing surprising, but it's nice to have stats:

• 60% of consumers have a much more negative opinion of marketing and advertising now than a few years ago
• 61% feel the amount of marketing and advertising is out of control
• 65% feel constantly bombarded with too much marketing and advertising
• 53% of consumers polled said that spam had turned them off to all forms of marketing and advertising
• 36% of consumers polled said that the shopping experience is less enjoyable because of pressure to buy
• 53% said that for the most part, marketing and advertising does not help them shop better.
• 59% feel that most marketing and advertising has very little relevance to them
• 64% are concerned about practices and motives of marketers and advertisers
• 61% feel that marketers and advertisers don't treat consumers with respect
• 65% think there should be more limits and regulations on marketing and advertising
• 69% are interested in products and services that would help them skip or block marketing
• 33% would be willing to have a slightly lower standard of living to live in a society without marketing and advertising

Just more reinforcement that the mass-market model doesn't work anymore. Advertisers continue to rely on outdated tactics, but the market has changed. Consumers don't want to be 'talked at' anymore; they want to be part of the process. I like Rob's thought on open-source business and I think it's a good description for the future of marketing, where "open-source marketing" is a collaborative process between all stakeholders (customers, employees, marketing, operations, execs, shareholders, etc.), and not a static end-product like a web site or TV spot. It's a fluid and dynamic process in which control is relinquished and transparency reigns. To do this, companies must be supremely confident in the value they're offering... although I read a statistic somewhere that indicated that a majority of CEOs don't believe they're offering good value to their customers. Sad but probably true. It seems that the pendulum must start swinging back towards quality, relationships and trust from its current position at the peak of quantity, control and manipulation.

For more on the love/hate relationship between consumers and advertising, read this New York Times story that recaps the findings.

May 04, 2004

Free Prize Week

We're in the middle of the Business Blog Book Tour where Seth Godin is promoting his new book Free Prize Inside. There's some great stuff at the first two stops, so be sure to visit!

May 3rd - A Penny For...
May 4th - Brand Autopsy
May 5th - Decent Marketing
May 6th - 800CEOREAD
May 7th - What's Your Brand Mantra?
May 10th - Ensight
May 11th - WonderBranding
May 12th - Business Evolutionist
May 13th - Branding Blog
May 14th - Thinking by Peter
May 17th - A Bold Approach

May 03, 2004

Setting customers free

Remember the phrase, "If you love someone, set them free. If they come back they're yours; if not, it was never meant to be." Words of wisdom from good ol' mom. I was reminded of this phrase while reading Chris Lawer's post on Reverse Market Customer Experiences where he lists three companies that are taking risks and providing competitive information to their customers:

In 2002, General Motors launched a trusted advisor internet site called AutoChoiceAdvisor. It helps customers to select the motor vehicles best suited to their personal needs... Critically, this list includes vehicles from manufacturers other than GM.

Citibank... now provides a free online financial account aggregation service through its Myciti.com web portal. The site provides a full range of Citigroup consumer products and services, including credit and charge cards, banking services, investments, mortgages, loans and insurance... By enabling customers to access a consolidated view of all their online passwords and financial and loyalty accounts regardless of supplier, Citibank is creating powerful new opportunities for customer differentiation and service in a highly competitive, consolidating and commoditised market.

U.S. auto insurer Progressive... offer(s) a reverse market price comparison service on its web site. Previously, U.S. customers’ ability to compare rates across insurance companies was both time-consuming and complex. Now, by entering their personal information, driving history, vehicle details and other data on the Progressive web site, the company enables its customers to undertake a simple and direct market comparison. Although it sometimes loses out to its lower-priced competitors, Progressive’s customers often remain loyal simply because the service reinforces their trust in the business...

It's time for companies to learn how to let go of the need to "own" a customer. What would happen if we tried to "own" our significant others? Or "retain" them? They'd probably walk out on principle. The key in relationships -- whether personal or business -- is to earn trust and respect and affection. Customers are not objects to be acquired; they are free entities who make choices. Give value, make their lives easier, and even risk losing them to the competition by providing comparisons. Chances are, they'll love the open, honest communication and stay with you even if it costs them a bit more. So set them free.

Member of...


  • Cnsidebar_1

Recent Posts