In 1979, the U.S. was facing an economic crisis not unlike today’s. The Dow Jones plunged as low as 742 and our dependence on foreign oil led to swelling inflation and unemployment.
Sounds familiar, right? Today, we’re right back in 1979 with the same problems and dire outlook. People have lost jobs, homes…and basically their hope in the American dream. Failing banks and businesses. Failing consumer confidence.
But take a look at this:
In 1979, inflation was 12.5% with unemployment at 11.5%. The same numbers today? Inflation is around zero, while unemployment currently sits at 7.6% and even lower in Sioux Falls. Now imagine you’re an alien who’s just landed on Earth. Would you hope it was 1979, or 2009?
There’s definitely a lot of fear and uncertainty out there right now. But not a lot of perspective.
We’ve been through tough times like this before, and the main thing making this recession more severe is our perception that it is.
But you might know all of this already. What you don’t know is how to communicate it to your shareholders, employees and customers. At L&S, we believe in leading by example. We’re investing more in new business efforts and self-promotion than ever before. Why? Because we know it’s the smart way to react in a recession, and we’re telling our clients to do the same.
Here are six other areas where you can take the lead:
Guard your most valuable assets – customers. Instead of resting on your laurels because you’ve already won them, keep and increase their business through CRM programs, product improvements and value-added services.
Find the people who are ready to buy and give them everything they need to purchase. That means detailed online product information and e-commerce, responsive customer service and open, accessible businesses that invite you to buy.
Optimize your budget allocations. This has nothing to do with the size of your budget, but how resourcefully you’re using it. Pick the right media to do the heavy lifting, backed up by supporting media to complete the circle and guide customers.
Protect your core brand. It’s who you are, and having an identity is even more important now when other brands are losing sight of theirs. Keep who you are and what you have to offer at the heart of all you do.
Deliver a value proposition. We’re all scrimping and saving. So pump some value and relevance into your brand.. Cable television isn’t a luxury – it’s an affordable alternative to nightlife and movies. Baking soda is more than a cooking ingredient – it’s an air freshener, cleaner and facial exfoliant. That’s creating value.
Spend more. Or at least consider it. Market share can be gained more quickly and with less effort during a recession. So while your competition is pulling back, you can pull ahead by leaps and bounds.
The reality is, this recession won’t last. But if you play your cards right, what you do during it can.
We have experienced similar results. One of our tourism vacation clients, www.BlackHillsVacations.com, had 234 completed transactions in the second half of last year due to live chat, accounting for significant revenue – in fact a 112% return on investment on the cost of live chat. They were able to convert lookers into bookers by delivering customer service and sales assistance in the most convenient location for the web visitor.
We’re implementing live chat for many of our clients. And I can say that when I’m browsing a web site and have questions, live chat is the first point of contact that I utilize. It allows you to connect with experts for advice or assistance in real time and it continuously impresses me how responsive customer service agents are to live chat.
From a business standpoint, your customer service agents can only talk to one person at a time on the phone whereas they can chat with multiple people simultaneously via live chat and still deliver outstanding service. Using live chat, an agent can see the exact web page that the web visitor clicked from to enable live chat, where the visitor is located geographically and a web page history to alert the call center agent of up sell opportunities. And that’s just a few of the benefits.
They’re browsing their site; they’re often ready to buy. Are you there to close the sale?
I had the honor of attending the AAAA Media Conference in March and everyone was a-twitter.DOmedia was using Twitter to get people to their trade show booth.The AAAA’s were using twitter to update attendees.Attendees were using twitter to keep up with colleagues throughout the conference.In this group of industry leaders, it felt as if Twitter was taking hold and tweeting was just a part of everyday life.
But then we sat in on a few demographic panels.There were three groups broken out by age; 20-30 years old, Baby Boomers, and Women 25-54.Each of the panels had 30 minutes to discuss their media consumption habits, daily rituals, and what they felt was lacking in the industry.This is where it got interesting.
I have to admit that I was surprised to hear the youngest panel express distain for Twitter.Not one of them used it, and one had never heard of it.To this group, twitter is time consuming and disruptive.They do not care what their friends ate for dinner, or what they are watching on television at that moment.Besides, Facebook has the same technology and they are already there every day; why Twitter?
No surprises that the Boomer generation had never heard of Twitter and said they would never spend any time tweeting or following.Not with their family and definitely not a brand.
The women’s panel was made mostly of working moms.As a working mom, I have a twitter account.I have to admit the account is mostly due to my career path and i probably wouldn’t have one if I was not working in the media industry.I rarely tweet and follow a handful of interesting people.Apparently I am not the norm.This panel of women were active tweeters.They follow their friends and family, and would be interested in tweets from a brand IF (and this is the key word) IF the tweet was timely, personal, and relevant.They are a busy group and want technology to make life easier.They want to keep up with friends, but often time do not have time for a 15-minute chat.They want to know what is going on outside of their homes, but do not have time for a full newscast.They want to know what is happening in the community, but do not have time to scan the newspaper.
Keep in mind that this was a small panel of 7-10 people and not a true representation of each demographic group, but it did provide insight and provoke discussions among the people at my table and in the office.I guess the biggest take away for me was nothing new.No revelations, just confirmation on one of the basic foundations of strategic planning.Know your customer.Know who they are, what they do, where they go, and (most importantly) what they want from you.Sounds easy enough, right?
As I dig out, literally and figuratively, from the big snow storm that hit western South Dakota and Wyoming earlier this week, I reflect on how technology has enabled us to become extremely efficient and information-centric, yet when the lights go out and weather blocks our doors, our technically-savvy culture is literally halted.
This storm blew in earlier than predicted which caught me stuck out of town due to the Interstate 90 closure. I spent the snowstorm with a couple of friends with drifts surrounding the house ranging from 4-6 feet in the open areas with higher drifts against the buildings.
Many people would’ve just relaxed and enjoyed the snow days, but my workaholic nature made me crazy trying to find a way to get some work done. I had my laptop, but no power cord (not that it would’ve helped when the power was out). My friend had a computer, but no Internet so I couldn’t access our network files. I was reliant solely on my Blackberry. Its amazing how much we really can accomplish from the palm of our hand, but I was unable to access many of our campaign-related, web-based applications due to Blackberry browser issues and cell service was very spotty so I found myself using the Verizon tagline, “can you hear me now,” all too often. At several points, I cracked out the old pen and paper to sketch some things out, which was actually quite refreshing.
The snow won’t catch me unwired next time. My technology survival kit/checklist is in place:
1.Power cord ALWAYS – this was my dumb mistake – I may need to ditch the small, stylish laptop bag, for a larger one to fit all of the essentials
2.Blackberry with tweening cord to use as a modem for my laptop when necessary
3.Car adaptor, in case there’s no power
4.Blackberry attachment software in place to handle all normal file types
5.Road report and weather bookmarks in my Blackberry browser
6.Text message road alert service activated
All’s well now… I’ve been back in the office all day and have a new appreciation for my laptop and Internet connection. It was a good reality check as to how reliant I am on technology. Are you winter storm survival ready, technically speaking?
Dinner conversation has really changed. A few days ago a group of friends and co-workers sat down for a nice meal after a long day’s work. As soon as the beverages were ordered, most of us (myself included) had our phones out… checking basketball scores, Facebook and Twitter.
Our mothers would not approve.
We are not, however, alone. comScore recently released research showing the number of people daily surfing the web on their cellphones has doubled since January 2008. All together daily mobile web users now total 22.4 million!
Top categories include:
News, weather, maps & other information = up 107%
Social networking site or blog = up 427%
Financial accounts = up 188%
Movie information = up 185%
Business directories = up 161%
And it isn’t just high-end iPhones and Blackberries. According to comScore, 70 percent of the people accessing mobile web are doing so on lower cost feature phones (any phone that isn’t a smartphone or PDA phone).
My question to marketers is, what information on your website might people want or need to access while on the go? Is it available in a mobile-friendly format? If not, what are you waiting for?
Could it be that Blockbuster hasn’t updated its business model amid a rapidly changing media marketplace?
Of course not. According to CEO Jim Keyes, it’s because the movies suck:
“We think the single biggest driver in the current marketplace the last few months has been title strength and this week is a classic example. Box office is down 56% this week versus the previous year. I think the titles say it all. This week we are proud to offer Punisher: War Zone and Elegy, which are good movies but stacked up against last year’s Enchanted, Atonement and I Am Legend, I think that kind of says it all.”
Some might agree that the quality of movies has slumped a bit in the past year. But when has that ever stopped us from renting? I’m guilty. I’ve wasted hundreds on movie after crappy movie out of curiosity, even sheer boredom.
Blockbuster is a classic example of a business that’s been unwilling to flex and adapt to changing times. Now more than ever, consumers are turning to economical entertainment at home, which is part of why Netflix and other competitors are thriving. Blockbuster has had a huge opportunity to capitalize on this trend and missed the boat.
As smart marketers, how can we stop pointing fingers and avoid doing the same?
Hot off several satisfying wins at the South Dakota Addy® Awards in February, L&S went on to win five silver district awards. Congratulations to our winning clients:
CHCS Services (Silver Addy Award for CHCS Lenticular Trade Show Booth)
Augustana College (Two Silver Awards for the Augustana Viking Logo and Logo Reveal Campaign)
DAKOTACARE (Silver Addy Award for the “Body Cast Guy” Non-Traditional Campaign)
Black Hills Digital Strategy (Silver Award for Digital Strategy Banner Ad Campaign)
These works were judged in competition with creative from Minnesota, North Dakota, South Dakota and Wisconsin.
Two weeks ago my infinitely more intelligent and better looking wife made the suggestion to me that we acquire a handful of Citi stock. Having been over $50/share in late ’07, Citi’s stock was trading at less than $1.00. “The Government is too deep into Citi to let it fail, we the taxpayers own not just preferred but common stock, it is a sure thing, it has to go up.” Seemed like a rationale argument, but as any good conservative Dutch boy, I had to think through it. What if it goes down and I lose my money? Was it worth the risk? Well…now a short two weeks later, Citi stock is back on the rise trading at nearly $3.50/share at the time of this post. Through the string of “I told you so’s” and “we could have tripled our money”, I find myself reflecting on the action of inaction.
As marketers, this recessionary time is one of great opportunity. The silence in media spaces today offers more opportunity for those that choose to strike, getting in while the cost of entry is low, and reaping the benefits on the backside. Let’s not get caught sitting on the sideline weighing the pro’s and con’s. Sometimes we just need to jump in, choose to act, and be rewarded for striking while others do nothing more than think about striking.
I’m a Machead. I’ll admit it. I grew up on PCs, which might be WHY I became a Machead. Since my first “stick of gum” iPod shuffle to our household iMac, my wife and I have come to embrace and relish the iLove.
That’s why I spent half my day refreshing the Apple homepage. I had heard, just in time, that Apple was announcing iPhone 3.0 software. When I realized the video of the keynote wouldn’t be out until afternoon, I sad mac’d the browser window and went about my day.
I am a shopper. It’s kind of my thing. I enjoy going to the grocery store, buying toothpaste and paper towels at Lewis, and above all, scouring the racks and online boutiques for the hottest piece of fashion. I wouldn’t call myself a bargain shopper, more the type that considers a bargain a bonus. It’s been exciting and a little dangerous racking up the credit card balance here and there. But life has really shifted in the past 6 months and it’s caused even me to change my ways.
I’m pregnant with my first child in “our country’s worst economic conditions since the Great Depression”. It’s tough as a consumer to sift through how much of this is media hype and how much trouble we are actually in, but now I’ve got a little doozer to worry about and I’m finding myself responding not only to the hype, but to creative messaging that helps make the simple things seem a little less boring and a little more special.
As discussed in our Food for Thought luncheon last week, it’s common during a recession that messaging stresses quality and value, as well as new uses for old brands. Just paging through one issue of In Style magazine, there are several solid examples of this:
- Lowe’s You popped in for a gallon of paint. You walked out with a new living room.
- General Food International Coffees Indulge for 20 cents a cup!
- Champion yogawear at Target Train within your means
- Target : Offering a coupon for $1 off Glade candles with the message Indulge every day.
- Oscar Meyer Deli-Creations A great lunch shouldn’t require a financial plan.
- Lean Cuisine We believe in food that’s good for you and good for your wallet.
This kind of creative is catching my eye and influencing my shopping behavior. Instead of indulging in the most breathable, tush-flattering bamboo lycra blend yoga pants that all the stars are raving about, or even buying the newest, extra whitening and enamel-strengthening toothpaste that comes in a slickest new container, I’m going back to basics and finding out that a little frugality isn’t so bad after all.
True: Often unbeknownst to business owners, digital communities are sharing in the creation of your brand every day. And the power of these collaborative sessions runs high. Online community members cross all audience categories: clients, employees, competitors, business partners and the general public.
True: If you post a brand opinion or response on twitter or in a social community environment, you most likely have followers that fall into all of the above categories for the brand owner. What’s the tone? What’s the underlying opinion? And how do others respond – agree/disagree? If you have a product-driven company, customers and potential customers are talking about your products in forums, are you aware?
True: There’s no better way to learn about your product or service, and you can then instantly infuse that intelligence into your product service or quality plan. The popularity rating of your brand relies heavily on what people are saying about your product or service online.
False: You’re not automatically in control of your social brand. Self-awareness has never been so important. How can you respond if you don’t know what people are saying? Listen through consumer insights research or social media monitoring (twitter: @billiejowaara to learn about free tools) and then respond using your own social skills, digitally speaking of course.
Each day, clients challenge our teams to concept the next big idea, to meet a crazy deadline or to find a way to do both within their budget parameters. We work with great clients who want to be market leaders – its why we love marketing and strategic development.
One of our favorite projects this week is the kickoff of the “Our Community Rocks” food drive for SMG. If you know the Sioux Falls Arena and the Sioux Falls Orpheum, then you know SMG. This group has been bringing great events like Ribfest, concerts with Elton John and supporting arts at the Orpheum in Sioux Falls for the past decade. And today, our agency helped them launch their latest effort to gather food donations for the Sioux Falls Food Bank and the Sioux Falls Food Pantry. Donations can be dropped off around the community at places like Lewis or Sunshine Foods, and those who donate have the opportunity to win tickets to the upcoming Alan Jackson concert.
I love this quote and its worth repeating now, “With great leadership comes great responsibility.” The right campaign for all the right reasons. Thanks SMG, for being a great market leader who helps create “good times for all.”
Marketing girl, here. I know it’s been awhile, but I’ve really been thinking this morning, and it all has to do with American Idol.
Finally! At last, we’re getting to the really good stuff. Now, don’t get me wrong. I like the horrific singing, crazy outfits and group performance drama just as much as any girl. It’s a time-honored tradition of the show. (Can you have a tradition in less than 10 years?)
But this is what I really love. We’re down to the top 12, or in this case, 13. You KNOW that the people still left in the competition can sing. Now they’ll get into the themed nights where they feature an artist or genre, and I don’t even care if it’s a type of music that I don’t like. I’ve come to the conclusion that the music and performances that are really great are the ones infused with passion and energy. That’s why we love live concerts, and I know that’s what draws me to the music I love. It’s the stuff you can feel beyond the words and lyrics. It’s what drew me to Thriving Ivory and Sugarland. It’s what edged my secret boyfriend David Cook over the other David last year.
It’s the passion and energy that gives these American Idols that little extra something to get them to the top. It’s what’s going to win it for one of them. And it’s what everyone in America is envious of. We can say we wish we could sing like that, but my gut tells me that what we really want is to put as much passion and energy into what WE do as these singers do with their performances.
Being at L&S for awhile now, I’ve seen all the workings of passion and energy right here within the walls of this agency. I know that every agency probably says that about itself, and it’s probably true for some of them. But I’m convinced that it’s different here. I’m going to go all cheeseball now, but the passion and energy is what makes the great ideas come to life. It’s what makes us excited about coming to work. It’s what makes us throw the flag when it’s not good enough. It’s what makes us, as our fearless leader Scott would say in the words of Jim Collins, get from good to great.
This passion and energy exists somewhere in everyone’s life. With these13 people from across America, it’s singing. Why in the heck else do you think they added an extra one this year?
Now into my fifth year at L&S, I’ve had the opportunity to speak in front of lots of people. I’ve presented to prospects, clients, boards of directors, seminars and conference halls filled with hundreds. So with all this practice it would stand to reason that I could make a client presentation, interview with the media, or give a speech without much additional training right? Well the answer smacked me in the forehead last week as I watched the much anticipated return of Tiger Woods to the golf world. Here is a guy that has won 14 majors, 65 tournaments, is the #1 golfer in the world and raked in $122 million last year. And guess what? Tiger Woods still has a coach. In the words of Andy DuFrane, how could I be so obtuse. So first thing this week, I took our PR Director Jeff Hanson up on the opportunity to participate in his masterful media training.
Watching Jeff work with our clients was a good reminder that whether working with the media or working a tradeshow, we should always have an elevator speech ready because you never know when you’ll have 15 seconds to impress. It’s also a good reminder that you don’t have to claim to be the expert in everything and saying “I don’t know” builds trust and credibility for the things you actually do know. Be a resource, start with the facts, always be honest. . .all great fundamentals that are tried and true in any situation – sometimes we just get a bit out of practice . . . After all, if you aren’t getting better every day, you’re getting worse. And if Tiger Woods can use a coach, I guess I should too.
He’s three episodes into his first season and already Jimmy Fallon is proving he’s hosting much more than just a television show. Fallon, the new host of NBC’s Late Night with Jimmy Fallon is crossing, and blending, mediums like no other talk show host before him.
It’s amazing to think about how we used to make web site decisions. What looks good? What colors do you think the audience will best respond to? And eventually, after launch, we would dig through the analytics to see how visitors were engaging and converting on site.
NOW, we make intelligent decisions based on A/B tests. We recently launched an A/B test for a new web design for one of our e-commerce clients. We labeled the original design “A” and labeled the new site design “B”. We asked 20+ people and they all thought that design “B” was more visually appealing and that site visitors would convert at a higher rate. After a two-week A/B test, sending 10% of the site traffic to the new design, the results came in. And to our surprise, the old-school, very simple design outperformed the new, fresh design. The numbers speak for themselves.
So what’s next? We continue to tweak design and retest to deliver optimal results.
True: Often unbeknownst to business owners, digital communities are sharing in the creation of your brand every day. And the power of these collaborative sessions runs high. Online community members cross all audience categories: clients, employees, competitors, business partners and the general public.