5 Tips To Harness A Brand’s Secret Weapon.

June 28, 2011

Apps and websites help consumers explore products and connect.

We're no longer living in the Age of Aquarius. It's the Age of Apple, Facebook and Quora. Consumers are adapting and reacting; marketers should, too.

True or false: On the Internet, consumers are guaranteed friends and forums to engage with said friends, be they real, imagined, or somewhere in between. If you answered “false,” you’re either living in the original “Age of Aquarius,” or well, you don’t get out much — virtually speaking, of course. This is the Age of Apple and Facebook and Quora, and believe you me: friends are abundant in places low and high. Last month, Trendwatching.com published a brief dedicated to what it christened the “F-Factor,” or that not so little ability modern consumers have to tap into their online networks — and the friends, fans and followers those networks create — to discover new brands and the goods and services they provide. At Vertical Marketing Network and Blogging Out Loud, we’ve spent a good deal of time over the past year counseling marketers on the myriad reasons why engaging in social media is not only relevant but also necessary to compete in today’s marketplace. The benefits of social media simply cannot be denied. But if we take ourselves — marketers — out of the equation and examine the consumer trends that are developing outside of our influence, the market landscape proves to be a little more challenging and a lot more varied. What Trendwatching.com calls the F-Factor, we like to think of as the Power of One, or the ability one consumer voice has to create positive word-of-mouth campaigns and launch new business opportunities for brands looking to compete in today’s fast-paced, competitive world. The Power of One is about more than engaging consumers on Facebook and Twitter; it’s about first creating product lines that inspire consumer conversation, then empowering shoppers to share their knowledge with the people they seek to connect with online in the first place — family and friends, followers, and depending on the consumer, yes, even fans. According to a June 2010 Cone Inc. study, 63 percent of consumers trust family members for product recommendations; 31 percent trust friends. Beyond that, 81 percent of U.S. consumers do additional online research when exploring brands and products, with 55 percent looking at user reviews (such as those offered on sites such as amazon.com, tripadvisor.com and Yelp) and 10 percent going straight to their social networks for advice. Among consumers ages 25-34, this last number jumps to 23 percent. The Power of One is real alright, and marketers must harness it to let a new kind of sunshine in.

Maybe I’m just blogging out loud, but it seems like The Power of One can be a brand’s secret weapon. Brands that give consumers incentive to advocate on their behalf, while providing the tools to do so, are prime for prosperity.

The number of websites and mobile applications that have emerged for consumers to share their opinions is dizzying. Beyond the major social media players and commerce websites, there’s now sites that solely encourage consumer curation (Pinterest, Polyvore) and — more importantly to marketers — personalization. The fashion industry is especially making out big, with websites like boutiques.com, thefind.com and kaboodle.com, among others, enabling consumers to connect with existing contacts and make new ones — all with a common goal. But The Power of One isn’t all jumpers and tricked-out shoes. No matter the industry, savvy marketers can gain advocates and increase their power by following five tips:

1. To Each His Own — You know what they say about opinions…Everybody’s got one. Does that mean consumers should be free to bash brands they dislike as much as they praise the ones they do? No, but they will. Brands and marketers should be considerate of opinions that differ from theirs, and address them in a proactive way. Engage with disgruntled consumers online in a way that suggests you do care and you do want their business.

2. Share And Share Alike – Don’t just let consumers have all the fun, marketers, too, should be using their personal networks to tout not just their brands but other brands they like. For most consumers, less isn’t more, more is more. And the more ideas and products that come their way means the better chance your brand will have of being noticed (yours is the best product, right?). Channel your inner Joe Girard, the Guinness Book of Records “World’s Best Salesperson” and sell!

3. Take It Personally – Nothing makes a statement like a heartfelt response. Happen upon a great review online? A favorable tweet? Say thank you, and make it public! Reward has always driven an emotional response, and a quick “danke shoen” will inspire consumer loyalty in both the recipient and onlookers.

4. But Not Too Personally – Let’s face it, not every brand or product is for everyone. Know your target demographic and be true it. There’s no sense in barking up the wrong tree, or for distracting yourself from more important matters (i.e. the friends, fans and followers you do have).

5. Keep New Ideas Coming – Variety is, after all, the spice of life, and the secret to holding consumer attention. Not only should brands be on the lookout for new ways to engage consumers, they should also consider implementing programs in which consumers can interact with each other. Be fresh, be inspiring, be original and — most of all — be true to your brand, and consumers will respond.

It’s summer — harness the power and let some sunshine in.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: daveeza

Back Talk: Does Green Marketing Grow Sales?

June 21, 2011

Future-thinking brands have been appealing to concerns for Mother Earth for years. But in the recession, marketers are challenged to rebrand "green."

Kermit the Frog said it best: “It’s not easy being green.” But that’s not stopping forward-thinking brands from trying. For years, major brands within the auto (BMW, Honda, Toyota), fashion (Patagonia, Payless ShoeSource) and home-care industries (Clorox, GE) have been appealing to consumer’s concerns for Mother Earth — and not just with eco-friendly products. Businesses themselves are “going green” by going paperless, going solar and offering their employees transportation alternatives, among others. For their part, consumers are responding with the almighty greenback. But while it may not be “easy” for brands to go green, many are making it an essential part of the way the do business in order to appeal to consumer consciousness and respond to societal pressure. When Clorox introduced its eco-friendly Green Works line in 2008, it not only secured an endorsement from the Sierra Club, the brand was actively responding to a growing global concern for the environment. Sales that year for the specialty line exceeded $100 million, and it spawned other major brands to get “green” with the program. But in the recession years since, brands and marketers have struggled to rebrand “green” from indulgent (nay, expensive) to indispensable. Consumers site added costs in a poorer economy as a reason against choosing the green thing; meanwhile, marketers are challenged to find a balance between current eco-consciousness, practicality and mass appeal.

Maybe I’m just blogging out loud, but it seems that while “going green” is a socially responsible marketing move, it has to first benefit the brand in order to later benefit the consumer. How can brands plant the initial seed?

Furthermore: Have any green campaigns caused you to go green with marketing envy? In your opinion, can green marketing grow sales?

We’d love to hear your thoughts!

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: NASA

What’s “In-Store” For Marketing?

June 14, 2011

Despite modern advances, face-to-face demos still draw buyers.

Vertical Marketing Network's recent campaign for Bandai America's Power Rangers toy line used traditional and modern methods to drive consumer traffic. Smart brands recognize in-store demos still mean consumer magic.

When Sam Walton took Wal-Mart public with 15 stores in 1972, he noted: “Results are only in the marketplace.” Out of this philosophy the term “retailtainment” was coined two decades later, and along with it, the creation of in-store events to motivate consumers to interact with brands. Ever since, marketers have seen a significant rise in in-store marketing as brands seek to engage shoppers, create brand differentiation and increase sales. But retailtainment is about more than getting a product into the hands of consumers to sample. In-store events are partnerships; they strengthen relationships between brands and retailers by focusing attention at the former while driving traffic to the latter. In other words, they’re good for everyone, and successful campaigns from brands such as Health Mart Pharmacy, Target, SC Johnson’s Glade and Bandai America’s Power Rangers toy line have affirmed what’s in-store for in-store marketing.

Maybe I’m just blogging out loud, but in today’s marketplace, where consumer expectations are growing with every new technology, there are virtually limitless ways to reach prospective consumers. Through all this, making a connection – especially a face-to-face one – still produces magic.

With the myriad ways to engage consumers online and “on-Phone,” one might assess in-store marketing is headed the way of the coupon; that is to say, almost exclusively digital and interactive. To some extent, that’s true. In the last year, we’ve seen in-store campaigns go virtually virtual, often to positive consumer response. But last week’s successful Vertical Marketing Network campaign for client Bandai America proved once again that no amount of modern gizmos can beat the tried and true in-store demo. All Toys ‘R’ Us stores nationwide hosted demos for kids ages 3 and up and their parents to sample the newest Power Rangers Samurai Megazord toy. While pre-event support for “Megazord Demo Day” did benefit from some modern touches, such as blog mentions, email blasts and Facebook communications, there were also more traditional ones, such as roto ads and in-store signage leading up to the event. To further power involvement and purchases, participants received goodie bags filled with Power Rangers Samurai Megazord paraphernalia, as well as a coupon for a same-day purchase. Health Mart Pharmacy took a similar route recently, when it teamed with a variety of sponsors to create brand awareness and educate communities about diabetes. Using a mobile health vehicle that offered free health screenings, consumers were targeted through traditional means (think flyers) and social ones. More stationary, but no less effective, was Target’s 2010 Back to College campaign, which saw the retail giant hosting beauty, fashion and lifestyle stations for college students in stores nationwide. To drive store traffic, the brand created teaser experiences on college campuses, and then fueled the campaign on Facebook and with text-to-win prizes. SC Johnson, meanwhile, targeted an even more exclusive demographic — women ages 25-49 with an annual income exceeding $70,000 — with its Fragrance Collection by Glade campaign, which provided a boutique fragrance experience to this heavy-spending demographic at a fraction of the cost of its designer counterparts. By creating an especially targeted shopping experience, the brand fueled product awareness and loyalty, and drove sales.

These days, it’s not enough to be wooed; consumers want to be entertained and interact. Lucky for marketers the opportunities are vast, and the fundamentals inspiring.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: Vertical Marketing Network

4 Steps To Enduring Loyalty Marketing.

June 7, 2011

Loyalty programs should inspire consumers to cash in on rewards.

Loyalty Marketing is more popular than ever, and marketers should create programs that inspire consumers to sign on, cash in and spread the word.

Developing and implementing a successful Loyalty Marketing program can be challenging for both marketers and consumers alike. Americans accumulate some $48 billion in loyalty rewards annually, yet $16 billion — or, one-third of those rewards — go unredeemed according to new research from Swift Exchange and COLLOQUY. In other words, the average U.S. household active in loyalty programs earns back $622 per year and does not collect $205 of said rewards. Talk about waste — for consumers and brands. While explanations for these losses range from consumers finding point and/or reward redemption confusing and/or difficult to consumers not realizing the rewards are out there for the taking, one thing is certain: lack of redemption does not signal a lack of participation. Loyalty programs remain popular and they’re growing like never before. In the United States, loyalty memberships currently exceed 2.1 billion, up from 1.8 billion in 2009. The challenge marketers face is to build loyalty programs that will excite consumers by being relevant and viable.

Maybe I’m just blogging out loud, but it seems like growing loyalty is a lot like growing a brand; consistency, honesty and — above all — sincerity are key to establishing success. A little creativity doesn’t hurt, either.

While unredeemed rewards might not sound discouraging, the COLLOQUY report argues they are bad business for marketers. Unredeemed points/rewards might sound like a shortcut to corporate savings, but they undermine efforts to build long-term customer relationships. “If redemption equals engagement and engagement delivers customer satisfaction and profits, then loyalty marketers should encourage their members to make the most of their rewards,” says Kelly Hlavinka, a managing partner at COLLOQUY. “In short,” she argues, “redemption is good.” And why wouldn’t it be? As we often discuss at Vertical Marketing Network, rewards are meant to be just that, and marketers should want consumers to participate in their programs by signing on, cashing in and — ultimately — spreading the word. One campaign that does just that is WeReward, a location-based mobile app for Android phones that allows users to earn actual dollars by checking in to businesses. But realizing your marketing goals need not be fussy. With consumers absorbing thousands of marketing pitches per day — not to mention the ever-growing number of ways to engage said consumers — marketers owe it to their brands and most-valued patrons to offer rewards that work. Four points to consider:

1. Identify — What are the demographics of your most-loyal consumers, and what kind of rewards will ignite their brand passion? There’s no denying the value of an existing consumer, and research proves it costs businesses 6 to 7 times more to acquire new ones. Knowing who’s loyal to your brand is an important first step.

2. Inspire — Is there an opportunity for you to get creative? To really shake things up? A good surprise is worth its weight in gold. Marketers, don’t be afraid to dazzle and delight. Aside from showing appreciation, loyalty programs are an opportunity to make consumers feel special.

3. Imagine — Is the reward consistent with your brand image? Does it resonate well? Marketing is not without pitfalls, and the wrong message could send consumers — even loyal ones — seeking alternatives.

4. Inquire — After your plan is in place, how can you follow-up with members to ensure they’re getting the most from you, and thus you’re getting the most from them? Social media is an especially great tool for this; something as simple as a Facebook post or tweet reminding loyal consumers of the value of your program takes seconds.

Effective loyalty marketing is good for both brands and consumers. Making your customers feel appreciated, understood and liked will reward your brand.

It also makes that consumer rat race a little less scary.

Brought to you by Vertical Marketing Network, a Leading Integrated Marketing Agency.
Photo credit: Tracy O

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