blog: jon sherrington

The significance of truth in advertising

Did you know, zero gms of trans fat may not be a perfect 0? FDA regulations state 0.5 gms is permitted to disclosed as zero. Yet nutritionists believe that more than 2 gms of trans fat per daily diet can be harmful. How harmful? Who can say? But the notion that 25% of a harmful level is negligible seems to be an acceptable lie. (See: Are Marketers Out Smarting Us, by Stating Zero Trans Fat? http://everydayhealthforlife.com/zero-trans-fat-doesnt-necessarily-mean-zero/). Also, since the Organic Trade Association lobbied Congress to allow toxic additives in organic foods, you can probably only get true organic produce if you grow/raise it in your own backyard (See: What Does the USDA Organic Label Really Mean? http://www.care2.com/causes/what-does-the-usda-organic-label-really-mean.html)

Can we handle the truth?

Can placing a veil over the truth in order to gain acceptance really be considered a sustainable business model? Even if there is a standard return policy on most advertised offers, and a 1-year defects warranty, does the customer really want to make choices based on those caveats? Should shareholders be concerned that a high-speed advertising train might run out of track at some undefinable point when consumers flee having felt they were misled? Or, like the character Cypher in the Matrix, would consumers bask more happily in the glow of an illusion that whatever they are buying today is better than what they are replacing.

Truth is subjective

Self-image sets the tone for all forms of rationalization in making decisions. Self-image rarely aligns with how one is perceived, creating a perpetual ‘truth dichotomy’. For example, celebrities struggle when their public persona is not in synch with their self-image. Young, talented musicians sing about their personal frailties, yet the public demands role models of perfection. Take that idea into the democracy of consumer markets: when a brand overstates its claim in order to maintain its public persona it can fall from grace as easily as a Starlet of today becomes the Tabloid mockery of tomorrow.

Perception is Reality

In marketing and sales we would say it a bit differently: Expectations, once created, are like Promises. If you advertise to build customer expectations, you have to deliver on that promise.

Truth is also highly experiential and therefore highly subjective. While Customer Experience Departments aim to make the brand honest, it doesn’t mean the customer will have their expectations met.

Risk in advertising

Generating lots of awareness and response is not a true measure of success if the advertising sets expectations that are not sustainable. I am not talking about grounds to sue. Most mice-type at the bottom of the page protects the marketer. I simply mean where customers believed the ad and couldn’t sustain that belief in the product, either pre- or post-purchase.

On whom does the burden of truth  fall: the ad agency or the marketer? Does a creative ad deserve industry recognition if the brand that it represents sees a high rate of customer churn? To say ‘Yes’ puts the onus on the client. Is there any responsibility on the agency to do due diligence and inform the client when there is a misalignment between the advertising promise and the product delivery? When advertising is regarded as entertainment at the Superbowl, perhaps we have already accepted that it has entered the realm of fantasy and we have adjusted to that. But when it comes to hard cash that we feel was not well-spent, whom do we blame? The manufacturer or the ad agency.

Truth is hard to find

Advertisers, politicians, lawyers, real estate agents, journalists: we live in a world where Truth is constantly subject to distortion, concealed, deleted or being reinvented. But, isn’t it refreshing when an advertiser starts telling the truth? How do agencies manage this process? I believe that customer-centric marketing is the best advocate for truth in advertising. When major brands like McDonald’s opens up the kimono on how it creates ads and delivers its service we see consumers sit up and pay attention. I like that.

Written By |Advertising Truths, Relationship Marketing, Uncategorized|Comments Off on The significance of truth in advertising

Customer Experience: a Roadmap for Marketers

Please take a look at the Canadian Marketing Association’s most-recently published whitepaper Customer Experience: a Roadmap for Marketers. It aligns very closely to our own publications on customer-centric marketing and many of the blog posts in this site.

Written By |B2B, B2C, Customer Focus, In the News, Marketing Strategy, Uncategorized|Comments Off on Customer Experience: a Roadmap for Marketers

The Religion and Politics of Branding

Credit to Chris Koentges for his article entitled “Can a brand speak to both the lunatic left and right? There is plenty of evidence of brand partisanship from political, social, environmental or religious perspectives.

The question we should really ask “what is the implication of defining consumers by their partisan leanings?”

 

There are many characteristics shared between opposing factions that gave John Lennon a reason to believe in the Brotherhood of Man: Hassidim use cell-phones , anarchists eat potato chips, and most men with two legs put on their pants one leg at a time. If you take religion, countries or politics out of the equation we have more in common than what divides us.

As a marketer we have some choices in how to align to customer values. Do you define a segment by what sets it apart, or by what unites it? Take single, overworked single Moms on low income as an example. If research states that 70% of them have strong socialist leanings, do you press that button for stronger brand affinity – or do you stay true to the broader human condition? If your competitor takes aim at a customer segment by sponsoring a cause, do you react, up the ante, go in a different direction?

There is no right or wrong except by measure of results. Some products will relate better to an ideology and some to a basic human need, but brands don’t determine personal values. So do you have a rule of strategy, or do you just play along with an opportunistic grin.

Written By |Brand Integrity, Marketing Strategy, Uncategorized|Comments Off on The Religion and Politics of Branding

How does customer service fit into your marketing mix?

This question was asked by Marketing Magazine to Longo’s Grocery Chain (see the November Special Issue on Customer Service).

I didn’t get to the answer. The question short-circuited my frontal lobe so I stopped reading. Let me explain.

I have, for the past 16 years, had a mania about customer-centric marketing. I have also been a critic of brand-centric marketing. I have never had a problem selling the strategy, but I have sometimes been a bit disappointed by the casual observation that “It doesn’t look much different”.

It has been a splinter in my brain to characterize the contrast between the science of customer-centric marketing and brand marketing without reaming off thousands of words.

Don’t breathe!  I may have found a solution. I am going to reword Marketing Magazine’s question:

HOW DOES MARKETING MIX FIT INTO YOUR CUSTOMER SERVICE?

(I feel a bit dizzy. Need to take a moment.)

Customer-centric marketing takes brand ego out of the equation and replaces it with brand empathy, at every touch-point. It focuses your value proposition, media execution, product delivery, customer service and relationship management on the customer’s values.

“How does Customer Service Fit into your Marketing Mix?” vs. “How does Marketing Mix fit into your Customer Service?” It is an 180 degree flip. And it is a mind-set. Perhaps you can’t see the difference until you feel the difference.

Is it easy to make the transition?
No.

Is it so obvious when you have?
It may not be so noticeable to the casual observer, but it is very significant to the target audience and to your customer retention, share of wallet, marginal cost of marketing and all those other important variables.

So, how does your marketing mix fit into your customer service?

Written By |B2B, B2C, Customer Focus, In the News, Marketing Strategy, Relationship Marketing, Sales & Marketing, Uncategorized|Comments Off on How does customer service fit into your marketing mix?

The Customer is Queen (not King)

You know the old aphorism: “The Customer is King”. It turns out that nobody really means it. You have to wonder why. Let’s take a look….

WHAT IS A KING, ANYWAY?

Kings are confrontational — whatever conflicts with their rule must be challenged. Two kingdoms in conflict have limited choice: to conquer, negotiate, submit, or make an alliance.

What does it mean when we say that ‘The Customer is King’?

Most business owners would answer that it helps them to remember the ‘significance of the customer’. But it doesn’t mean the customer should have the power to dictate terms to the business. The Business is really the King.

WHAT IS A QUEEN?

In metaphor – the Queen is the consort to the ruler of the kingdom. If a King wants to extend his rule, he needs a loyal, supportive Queen who can raise princes that won’t challenge him, to keep the peace in his kingdom.

The ‘King’ is your business and the ‘Queen’ is your customer. The princes are your growth in market share, share of wallet etc. Be disloyal to your customers and they will rebel or defect.

 

Treat your customer like a Queen: two heads sharing common goals, values and interests. Don’t treat your customer like a King. You’ll butt heads and they’ll replace you with a competitor.

 

Play your cards right by reinforcing customer values to create a loyal, profitable and long-term relationship.

IT’S NOT A FAIRY TALE

It is in your best interest is to build long-term relationships with your customers by understanding and anticipating their values.

This is the top-spin that we put into Customer-centric marketing, to create, grow and sustain your customer relationships. It’s more than creative, more than branding, and more than rewards.

TRAVERSE MARKETING

You have your product and your partners in place and core of customers that value what you offer who maintain your cash fl ow and profitability. Opportunities beckon in other markets, providing chance to duplicate your success. You scope out thepotential and speak to a few people. The board is supportive, you give it your best shot and in a few months you are seeing a sizeable return on your investment. If only it were that simple. For more see: Traverse Marketing

The 180º Right Turn

After doing a 360º About Face (see last entry) you will now be able to see yourself as your customers see you – not through your well-groomed surveys – but through their values and where and how you fit.

Which means you can make the right move (turn), to build your marketing programs and messaging from the customer’s perspective – opposite (180º) from the way you were facing in your previous marketing endeavors.

Anecdotally: I recently spoke with a senior executive in one of Dell’s divisions. Their internal retrospective critique was that Dell had focused too much on pricing in its messaging. While listening I did a quick 360º About Face and said to myself: “I didn’t buy Dell for a discount product. I bought Dell because I could get what I needed faster and to my door without paying for things I didn’t want.” In fact I don’t think I ever bought a Dell product at the advertised price. Dell’s price-point marketing reinforced to me the economy of its distribution model.

I never thought of Dell as a discounter, and I was both a consumer and business customer. All I needed from Dell was that their primary concern was to keep shovelling me with the technology I needed, faster and more cost-effectively than anyone else, and my loyalty was/is won. Marketing values reflect differently with customers, which presents the challenge of trying to pin the tail on the donkey while wearing the blindfold. Lack of line of sight is a great inhibitor.

One way to be sure you have line of sight is to stand in the place you are aiming at and look back at where you are pointing from (it works great on the golfing green). Stand on the opposite side and figure out how to make your objective reach the goal. You need this perspective before you can make the 180º Right Turn. One way to get perspective is to tune into the customer dialog while it is happening all around you. Web 2.0 publishing offers an unlimited resource for marketers to navigate a 180º right turn, (although there should be a health warning that such powerful direct feedback from customers can cause marketing whiplash in the dire haste to stem the negative feedback circulating through blogs, chatrooms and forums).

The rise of the corporate blogger needs to be more than a trend. It is a wellspring for interactive communication that is collaborative and ultimately supportive, even if the criticism can be brutal. Collaborative brainstorming sites are another face of the customer that lets marketers embrace attitudes so foreign to their internal culture you’d think they never really met face-to-face with a customer. Not all marketers can be successful in the blogsphere, as their customers often don’t rate them high enough in their priorities to take the time to engage in this sort of dialog. An alternative technique called Web Voyaging lets you tune into the voice of the customer and build an interaction that can guide you to make the right choices to build your business.

It is a methodology designed by an Interactive PR Agency partner of my studio Hydrogen Creative, and it relies on tracing 50 online communities that represent your target audience, and preparing well thought out topics or opinions and posting these to their community to gauge the response. The immediacy of the medium and the authenticity of the response is what make this a compelling technique to reach out to customers. Once you have done the 360º About Face you develop the sensitivity to hear customer feedback in the proper context. You resist making knee-jerk rationalizations of why the customer is saying the opposite of what you were hoping to hear. I am so frustrated by research companies that carefully craft questions in order that the answers are tolerable to their paying clients. If you don’t think it happens, “Ha, ha, ha, to you.”

The idea of the 180º Right Turn is to embrace with humility the reality that all the smarts you have and all the brilliance that inspires you to get up in the morning is subservient to a few terse comments from the people you need to buy your products who don’t share your sentiments about what you do best each day.

It is sometimes a painful awakening, but the good news is – once you make the turn – you get to channel all the brilliance and inspiration that you have into something that actually resonates with your customers.

Now that’s exciting.

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The 360º About-Face

I was once told that the furthest two points on a circle are right next to each other, because you have to travel the entire circumference to connect them. Sound silly? Try to draw a circle without connecting two points next to each other. You can’t do it. The paradox that the closest and furthest points of the circumference are adjacent is an interesting metaphor for how to miss or connect with customers.

As marketers we tend to look at the market through the lens of our brand, product or service and accept whatever filters through. We define the product based on its finest qualities and spin these into potential benefits, having first made sure of competitive qualities through price, performance or appeal. It is a product-centric model: the product is at the centre, and its radius is a function of market segment and reach. Customers fill in the area of the circle. Completely full is nirvana.

In a customer-centric world, your product is just one point on the 360º circumference of a circle that constitutes the entire customer predicament. Your marketing efforts travel inwards on a direct line to the centre. If you reach the centre it means they bought you.

So there is also a paradox between the product-centric model and the customer-centric model: to the marketer the product is a 360º totality but to the customer it is a 1º Maybe.

How can these two disparate models be reconciled? The challenge for the marketer is to travel the remaining 359º to fully understand the customer predicament and then apply that knowledge. Touch Marketing is the expression I use to envelope customer values, position the product properly and develop a marketing platform that builds a relationship based on shared values. In the 360º view of the customer price may not be important, features may not be important. Convenience and simplicity might be important but you won’t know until you do the 360º About Face, learn how your customer really sees their world and relates to your product within everything they do.

It takes some effort to wrench oneself away from the comfort of one’s own perspective. Nobody wants to have their ‘comfort-tree’ shaken. I am not talking about customer-satisfaction. Too many marketers pat themselves on the back with positive customer survey responses and remain in marketing stasis. I am talking about real-life relevance:
–> how to make your marketing more relevant to customer values so that they embrace not only what you are selling now, but also what you will sell in the future. If you do the 360º About Face, your next products will also support their values.

You have to go as far away from what you know and feel about your business or products to learn what it means to be customer-centric. Then you will have done the 360º About Face and be ready to pick up your product, brand or service and build a meaningful relationship with your customers.

In case you thought I was advocating going this distance with every single customer – that would be unnecessary. Customers form into segments also. The classifications won’t always fit the precise definitions of your marketing textbook. Go and find out. In each case it’s interesting and you’ll learn something to help you grow your business.

Selling the Environment With Customer-Centric Values

Since Canada’s political balance of power may weigh in on the environment in the near future, how does this monumental issue affect the day-to-day choices of Canadians?

Politics is all about customer-centric marketing. What the voter won’t buy, the politician won’t sell. The marketing of environmental issues and products has to factor a number of different perspectives that reside within voters and customers and bring conflicting values when making personal choices:

The pendulum swings back and forth:

– “It is the nature of humanity to turn land into garbage and garbage into land.” (Jon Sherrington, 2006). Not a pretty idea, but the drive for consumption does just that. Do we feel remorse? Yes and no. Consider a growing forest that chokes the land of sunlight and lives off its own decay. It creates an environment ideal for its living conditions and all other organisms adapt or die. Is the forest a problem or a solution? It is no different with humans. Humans expand and change the environment to suit themselves and in the process all other organisms adapt or die. Environmentalists want to limit this impact of change, and the general population focuses on the consumption it needs to sustain itself, regardless.

– Within the three constants: the sun, gravity and geothermal energy, our atmosphere is a contained bio-system in which whatever exists will return to its original state at some point in the future. Carboniferous trees can reproduce, crystallize, liquify or gasify. As implausible as it appears on the surface, the earth’s bio-system will not fail under any circumstances outside of sun, gravity and geothermal energy. This constancy insulates the human conscience from reacting to changes in the environment influenced by specific human intervention. Whatever we are doing is a pin-prick in the earth’s history. But that doesn’t mean it won’t change.

In a recent consumer poll conducted by a non-profit organization sponsored by IPSOS-Reid in 2006, the greatest number of Canadians cited the Environment as the biggest issue that will face Canadians 20 years from now. Why are we not seeing this survey response impact politically and in terms of consumer behavior today? Because the environmentalist lobby is not very good at customer-centric marketing. It has become associated with left-spectrum politics. This is strange. How can climate change and ecosystems be valued within a political spectrum when it affects us all?

The answer is because they don’t know how to sell it. In the macro-political view, the majority of consumer-voters really care more about growth than its consequences. This includes even those polled in the survey. Yet the influence we exert on our environment shapes the immediate aspect of our lives, not just the future.

If the politics could sell the environment better we wouldn’t see it pushed behind considerations of growth. But don’t expect politicians to be influenced by anything other than what people are buying – and people are still turning more land into garbage and more garbage into land. If marketers could sell the environment better, consumers would make environmental choices because these reflect their own values.

So it is a marketing challenge that speaks to the heart of customer-centric marketing – how to align products and services to those values that enable customers to achieve the growth they desire without consequence to the environment. As long as the majority of marketers are concerned with growth more than its consequences, customers will side with the majority and politicians likewise.

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The Vicious Circle of the Marketing Cycle

I have spoken throughout this blog about the problems of the goals-driven enterprise, as opposed to the customer-driven enterprise. The goals-driven enterprise has one mandate: to leverage its assets to achieve maximum wealth. The fastest way to do this is to tender shares publicly. This is how the shareholder becomes more important to the enterprise than the customer.

In an economic downturn, in order to maximize shareholder value the enterprise cuts prices to stimulate demand and cuts costs to maintain a margin. Marketing investment becomes highly expendable. What the enterprise is effectively saying is, “My products and my customers are now worth less to me so I am going to invest less in them so that my shareholders don’t complain about achieving a lower rate of return on my customer investment.”

This is perfectly reasonable accounting view of the marketing cycle. The Corporate Treasury says “When I am profitable I don’t mind risking some of that money in marketing as as long as I can see growth. When there is no growth then marketing is futile and it will be erased from the bottom line as long as I can prove in the books of accounts that it does not fuel growth.”

Let’s look at the possible consequences of this strategy:

– When you stop communicating with your customer and lower the price of your product, what does that do to the perceived value of the product, service or business? It creates a ‘new normal’. The value of the relationship with the customer flies out of the window and the product becomes a commodity item, indistinguishable from other low-cost solutions available.

– What happens when the economy comes back? The compelling reason customers bought your product/service in the past has been lost as the relationship linked through COMMUNICATION was severed by the Treasury. You find that your competitors have caught you up, or overtaken, and you realize that your name no longer carries weight. So what do you do? You hire an expensive branding or rebranding consultant and revamp all of your marketing literature and advertising to overcome the inertia caused by the vacuum that you created.

This gamble might pay off. But if it doesn’t the shareholders will excoriate you for failure and try to eject the Board. Or another competitor that did not cut of communication with its customers steamroller you into being bought. If you don’t believe this happens then you aren’t looking.

So how to get out of the vicious cycle? Be a customer-centric enterprise. When there is an economic downturn adapt to your customers new realities without divorcing the relationship and cutting off communication. Work with your marketing partners to find more cost-effective solutions that keep the customer dialog and relationship going. Find ways to add value better than cutting your price.

Those who say it can’t be done do not deserve the title of Marketing. Marketing is the meeting point of customer need and product supply. There is always a way to communicate value that supports this relationship connectivity. You may have to be more creative and give up on some of your personal goals achievement in the short term. But, customer-centric marketing establishes loyalty, frequency and continuity as its scale of success. If you cannot align your business to a customer’s values in an economic downturn then you are a goals-driven enterprise and you will be punished by your shareholders at some point for failing to engage customers over the long haul.

That’s when the vicious cycle comes and bites you where it really hurts – at the peak of your career development.

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