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Wednesday, December 2, 2009

You've built a monster, please don't feed it

This is my open letter to Ted Gilvar - CMO of Monster.

Dear Ted, you've made it about 18 months in a big role and continue to have an even bigger challenge ahead of you. Unemployment is high, which means a couple of things. You have a lot of potential users who need your service. But, there are fewer opportunities for those people to find on your site. So what do you do when there are too many customers looking for too few products? You need to make it the best damn experience those people have ever had.

You've already built a monster, please don't feed it anymore.

As someone who has frequently utilized Monster and many other job search boards, we hate them. For the most part, job boards are just a necessary evil that we endure. Painfully gnashing our teeth and cringing as we type every letter of the URL. To be fair, Monster is infinitely better than CareerBuilder, and I do prefer it over HotJobs. But no one is getting excited to use your site.

We don't need any more advertising. We don't need clever promotions. We don't need banner ads, search ads, a social media presence, or interface updates. We don't need a logo redesign, website refresh, or anything like that. We need a brand we can trust.

Why does a marketing executive of over 10 years get search results for a "home health nurse," "finance & accounting manager," or "administrative assistant," all of which could be disastrous. But even worse, there are somewhere around 2,000 ways to say "door-to-door commission salesperson who will never earn $1" and you have them all wonderfully camouflaged as legitimate job listings that we have to sift through to find something that may even be remotely relevant to us.

I understand that you don't create the jobs, and there is a natural urge to not turn down money from advertisers. But a bit of quality control and categorization to help users find relevant jobs would make you the uncontested number one job site and make your brand the one and only household name anyone would ever think about using when they need a job. It is time to improve your product. It's called brand management. Make a product that people won't stop talking about. If every user was able to upload their resume, fill in a profile, and see nothing but relevant opportunities, hiring managers and candidates alike would love you forever.

You've got $250 million to spend. Certainly it would take a lot less than that to make it happen, and you'd never need to advertise again. It is time to improve the product in a big way. It's not as if we don't know what Monster is, we just don't want to use it.

Are consumers gaining power?

A report from the Chief Marketing Officer Council states that out of the 91% of consumers who opt-out or unsubscribe from email marketing, 46% are driven to brand defection because the messages simply are not relevant. Don't worry about those who unsubscribe? Perhaps you should be a bit concerned about those people who hit the unsubscribe button. They may be opting-in to your competition permanently.

A blog post from Facebook founder, Mark Zuckerberg, provides additional interesting insight into the future if you read between the lines. Facebook originally created networks by region and school. While the community was small, this worked to achieve what people wanted. It connected those students who wanted a way to connect and communicate to others around them. Now that seemingly everyone is on Facebook, people do not necessarily want to share their information with their bosses, family, and advertisers. The connection of living in the same region is not necessarily relevant to all consumers.

What do these things have in common? Consumers exercising their voice to make real changes in new media. This is not a new concept, it is likely that consumers have been defecting due to irrelevant messages since the first time a cobbler hammered an advertisement on a lamp post. This puts some information in our hands that we need to use in communicating.

Traditional wisdom was to create a message and broadcast it to the largest number of people possible. It was known that not every person would react positively (make a purchase) to the communication, and only in the event of accidentally insulting people would that communication result in negative reactions. What this information shows is that a very large number of consumers may actually gain a preference for the competing brand if they feel your communications are irrelevant.

Putting it all together now. Facebook is an example that shows people want to communicate and belong to a community. They are willing to become "fans" of their favorite brands, join in discussion groups about products and services, but that does not mean they want to connect to everything. Consumers who actually opt-in to communications from a brand they use, then defect to a competitor because of irrelevant communications shows that what we say and do can have positive and negative effects. Even if the communication was simply an offer that was not relevant to that consumer.

What you say matters. A lot. It is not safe to assume that you can bombard people's inboxes, television sets, Facebook pages, Twitter streams, etc. with any message, as often as you want. People watching may not just unsubscribe or change the channel. You may be sending them right into the arms of your competition.

Every time you communicate with your customers, think carefully about what you want to say. Make an offer that people will appreciate. Be relevant.

Monday, November 30, 2009

Now with more juicy bits of orange

Several years ago I ran across a selection of orange juices. There was a pulp-free variety, one with added calcium, and a variety with "some pulp." All were priced the same, except for one that had the following label:

"Now with more juicy bits of orange!"

That variety was 75 cents more per gallon. Someone successfully was charging more for doing less because they took a negative sounding word and made it delicious. The word pulp is not pleasant sounding. But juicy bits of orange are downright tasty. Certainly most people would understand that juicy bits of orange are what they know as pulp, and those who are anti-pulp would avoid this variety, but there are people who like this product and they want something that sounds good.

Take a look at your products. What attributes are there that people enjoy, but you are selling short or failing to highlight at all? Shouldn't you get noticed for those benefits before your competitor comes along and sells the same attribute but gets more attention?

Tuesday, November 24, 2009

It's all about making money

Car rides can be quite interesting with the children. Sing-a-longs, fighting about who is sitting too close, begging for Slurpees, and talking marketing. Today's revelation from my 6 year old daughter showed more insight than many professionals in the workplace.

"There is more commercial time on the radio because it is getting close to Christmas, and they need to sell more things to make money."

Yes, at 6 years old she was able to identify that commercial time is ramped up for the holiday season. Not an earth-shattering thought, but unique for someone that age to identify. But then it got really deep and interesting.

"I think the Shane Company sells fake diamonds, and that is how they are cheaper than other jewelry stores. Except for Walmart, but those are fake too."
You have been successful at getting attention, but has your advertising been too good to be true? I have bought from the Shane Company a couple of times, and was quite pleased with the overall experience. Low prices, friendly service, and honesty. I never felt pressured or looked down on for wanting to buy something less expensive. I wondered, if it is so pleasant to shop here, how do other jewelry stores exist in the face of this tremendous competition?

Quality jewelry at low prices is something we are trained to believe does not exist. The other jewelers I have experienced are masters of reinforcing that belief. High-pressure, poor service, and a feeling that you do not belong if you are trying to be frugal. The message sent by the industry is that you must spend several months of your income to make a decent gift.

I won't get involved in any debate over actual merits of jewelry, but my point is that a 6 year old can identify the purpose and effectivity of advertising. Your target customer is likely much more experienced than a child at making consumer decisions. Perhaps your advertising may be saying the wrong thing to potential customers, be it too pushy of frequency, or unbelievable claims that cause people to doubt your product.

Need help to communicate effectively? Drop a message for me, I'll even throw in a 6 year-olds advice for free.

Thursday, November 19, 2009

Why the line?

In-N-Out Burger(R) opens today in Draper, Utah. From the look of things you would believe they are giving away million dollar bills. People are camped out and lined up causing traffic problems. Everyone in Utah wants to be among the first to taste the legendary burgers.

Don't bring out the torches and pitchforks, but I may inadvertently (okay, maybe not so inadvertently) dispel the power of the legend. If you want to understand why all the hype, read on. If not, just know that I am not bashing on the success, but rather explaining the science behind a phenomenon.

For a number of years I drove past two locations of In-N-Out Burger morning and night. I have eaten at several locations, a number of times. The food is fresh, inexpensive, and served quickly. The locations are clean, attractive, and usually energetic. The same can also be said for many other fast-food restaurants across the world.

Looking at the quality claims made by In-N-Out reveal their use of 100% pure, high-quality beef. No fillers, additives, and preservatives. Is this much different from the competition? You may think so, but it isn't. In fact, there's another chain who does the same which may surprise you. I am not saying there is no difference between In-N-Out & the world's most famous clown, but there are many things the same.

So why does an In-N-Out grand opening result in people camping out? Excellent branding. They always have been privately owned, which allows them control of the brand, quality, and experience which their customers enjoy. The company also maintained their expansion within close proximity, most locations in California, and they have slowly spread to adjoining states where they could control the supply chain and properly manage each location. A great management strategy maintains quality, which extends a positive experience with the brand.

There are also several factors which affect the psychological connection with the legendary chain. Beginning in southern California, they had access to a large number of vacationers. People on vacation are pumped full of endorphins (technical way of saying they feel good) and that results in general enjoyment of most things, even waiting in lines at Disneyland to an extent. Vacationers come back with memories, which often included a visit to In-N-Out, which was an exciting and new burger to these people. Their excitement and bragging makes great word of mouth, thus a legend is born.

Choices are great, right? The more options you provide to your customers makes people feel special. But there is also much to be said about the In-N-Out menu, exclusivity shows confidence. Do you want a Double-Double, Cheeseburger, or Hamburger, and would you like fries with that. The lack of dozens of menu items tells people the food is so good, this is all you need.

Finally, the "not so secret menu" makes people feel like they are in a club. As previously mentioned, customers like choice. What they like even more than that is a feel of belonging. All these factors add up, and what happens is the making of a legendary brand. Even from something as simple as a common fast-food burger.

Tuesday, November 17, 2009

We don't want to hear from you

Companies have been communicating via e-mail for over a decade, so why do customers get so excited when they are contacted via twitter? Why do we crave companies with a social media presence? Because we are not used to getting a response, and we have been trained to believe email is a one-way street from companies.

One simple mistake: Do-not-reply@CompanyWhoWillNotAnswer.com

First things first, if you email customers you need to dump the "Do not reply" addresses. Also, you must make it easy for customers to contact you, and you need to reply to them.

When a company has an active Twitter account or Facebook fan page, it makes them approachable and customers like to feel like they are on even ground with the company they do business with. When they see Do Not Reply in every email, the message they receive is "we want to talk at you, but will not listen if you have anything to say."

With that said, if your social media plan is just to "build a Facebook fan page" or get on twitter, please don't. Your plan should be how you plan to communicate with your customers. Not just set a page, and forget it. Customers will either learn that you don't listen there either, or they will just forget you are there.

Just like with all advertising and marketing, why spend money telling people about your company if your potential customers will just feel disappointed once they find you.

Monday, November 16, 2009

Everyone says they hate it, but...

Spam is universally hated. Not only is it hated, despised, and otherwise frowned upon by everyone, but it is also the topic of a $712 million lawsuit. Facebook sued spammer Sanford Wallace and was awarded the second largest settlement in a spam case. The infamous "Spamford" as he is known was also fined $230 million in a case with MySpace last year.

So why are there so many spammers out there willing to take this risk? Because unfortunately, it works. As much as people claim to hate spam, they sure do make it valuable for the spam dealers. A recent investigation showed that pharmaceutical spam can generate more than $4,000 per day in sales.

Further, the Messaging Anti-Abuse Working Group (MAAWG) reports that 52 percent of email users have clicked on spam, with 12 percent of those doing so "because they were actually interested in the product or service being offered." Think of how few people redeem coupons or act on legitimate emails from companies they subscribe to, and these are outstanding numbers. That level of response is enough to keep the spam industry in business.

So who are these rogues who open spam? Considering it is 52%, it must include people that you speak to and who you have heard complain about spam. Another example of people's behavior being counter to what they say.