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The multifarious and marginally edited ramblings of CTP’s human capital. i.e., Our thoughts.

Posts Tagged ‘cause marketing’

Netflix to its Customer: It’s Not You, It’s Me.

Wednesday, September 21st, 2011

The apology on Sunday by Netflix CEO Reed Hastings reminds me of a long overdrawn breakup. Two months ago, Netflix announced a change in its pricing and has been inundated with unhappy customer response since. Then on Monday, Hastings made another announcement that stunned the marketplace. Its well-branded DVD services will be called Qwikster and Netflix brand will be reserved for its streaming service.

The company will separate everything into two different websites without any pricing packages or loyalty discounts for customers that want the combined service or integration between sites, making it even harder for customers to access their services. Talk about confusion. The lack of communication and now the half-hearted response is a PR nightmare.

Netflix has thumbed its nose at the first rule of running a business: it’s all about customer service.  This is a company that built its business and brand on making it easy for customers to watch movies. No need to go to a store or stand in line, it delivered the DVD of your choice directly to your home. And with the advances in technology, it moved into streaming content, which should make everyone’s lives easier. So why is everyone so upset?

Like my mom always said, it’s not what you say, it’s how you say it. After two months of no response, a blog post and letter to customers “apologizing” is too little, too late. There may be business reasons behind the splitting of the company (sell one division off?) but poor communications has created customer confusion and aggravation.

Netflix did not keep its most important audience – its customers – in mind when making and communicating its changes. It rolled out a pricing structure change without thinking about how it would affect their customers. With the economy still in flux and millions still out of work, increasing prices in an oversaturated entertainment landscape may not have been the wisest decision. But if it was a business decision and had to happen, then there should have been a comprehensive communication plan, including customer service support, in place to insure it was understood and ultimately accepted.  Had these steps been taken, we wouldn’t be seeing this apology two months later and Netflix probably wouldn’t have lost more than one million subscribers or 7.4% decline in its stock price.

I’m not sure if its too late, but if Netflix doesn’t learn its lesson and start to think more about its customers those very customers will continue to abandon this once novel company.

 

Did you make a difference?

Thursday, May 19th, 2011

We spend our days trying to inspire behavior on behalf of our clients. Through creative use of words and images, we try to drive people to a store or website or event, or to buy a product.

What’s most thrilling, however, is when a client inspires our behavior.

Never was this more evident than at Tuesday’s 7th annual Champions of Mentoring Breakfast at Fenway Park.  Mass Mentoring, a long-standing CTP pro-bono client, is a not-for-profit organization that works to expand quality mentoring to youth across Massachusetts.  During this two-hour event, specific mentors and mentees were honored for their achievements, scholarships were awarded, and money was raised to support future mentoring efforts.  Mayor Menino spoke at the event, as did Celtics Hall of Famer Bill Russell and Red Sox manager Terry Francona.

What will stick with me, however, were the stories that we heard from the kids who have been positively affected by the Mass Mentors program.  We heard from one child who had been abandoned by her father at birth, and had suffered the murder of her mother when she was only 10 years old.  And from another child who had been orphaned in Nigeria and had single-handedly raised his brother from the age of 10.  Both of these children told stories of how their mentors had helped guide them through tough times and encouraged them to remain positive.  Both of these fine young adults are headed to college, and it was clear that their mentors have played an immensely important role in their lives.  There was not a dry eye in the room (mine included) and the morning served as a reminder of just how important it is to help one another.  As Bill Russell reminded us, “there are no ‘other people’s children.’”

So, as I sat in the room trying to conceal my emotions, I couldn’t stop thinking about the mentors who had had such a positive influence on the lives of children in need.  And, I was inspired to inquire about becoming a mentor myself.

Now that’s the kind of consumer behavior change we should all strive for. Visit www.massmentors.org to learn more.

Good things happen when brands unite

Tuesday, April 26th, 2011

I recently found myself dreaming about bringing two brands together. My wife was tapping away on her iPad as I was driving along unfamiliar roads during a family vacation. She had access to information that I wanted on the dash. Reading espn.com, watching “Modern Family” episodes or going through email doesn’t make sense at 75 MPH. But  live traffic updates, route options, extensive music playlists?  It got me wondering about which automaker would make a good partner for Apple? At that moment I wished for a Honda-Apple marriage. A few years ago there was talk that it would team up with Mercedes. It never happened. Is it the earthy Subaru set?  Lexus? Audi? Volvo?

Automakers continue to embrace relationships with other brands to improve their vehicle experience. Toyota and Microsoft this month announced a partnership to do just what I dreamed about driving along the Shenandoah Valley.  Or they do it to put their cars in front of consumers, like Acura is planning to do for the first time with a major motion picture.

But what if you’re not selling cars, motion pictures or technology? What makes a smart partnership?

Regardless of your industry or marketing budget there is another company that would make an ideal partner. They could improve your customers’ user experience or help introduce your product to a new audience. The ideal partner has credibility, shares some of your personality traits and values, and owns both an established voice and loyal audience.  Ultimately, you are best served when both partners can achieve something greater than a pay-for-play sponsorship.

A committed relationship builds incentive for both organizations, whether matching a company with a cause or bringing together two brands. You have to be on the same page with all tenets of the relationship for it to bring real value.  And be careful not to take on too many partners. As a CTP colleague points out, “Don’t go so overboard in sticking your name on other people’s stuff so much so that it eventually becomes meaningless to consumers and worthless to prospective partners. Like Swarovski.”

When done right, though, partnerships benefit both companies and the consumer.

Now if we can only get Cold Stone, Five Guys and JetBlue in the same room.

Keeping philanthropy a secret?

Tuesday, November 3rd, 2009

dawnWhen rescue crews remove the slick black film from wildlife affected by oil spills they use Dawn dishwashing liquid. Apparently they’ve been doing it for 30 years and for almost that long Dawn’s corporate parent, P&G, has been donating money and product to help animals hurt by disaster. But it was only recently that P&G began to involve its consumers. Through its “Dawn Saves Wildlife” campaign, shoppers can go online to activate a $1 donation from P&G with every bottle of Dawn they purchase. A colleague said he recently bought Dawn because he saw the campaign, and he felt really good about himelf.

But why did Dawn take so long to show the public that it is making a difference?

For some companies, it’s a lack of focus. They can’t discipline themselves to focus on a single cause. Instead, their giving program is diluted by opting for a range of charities. Other brands simply fear cause marketing. They think talking about it will transform their good deeds from philanthropic to shallow. But that doesn’t have to be the case. In fact, 2009 PR Week/Barkley PR Cause survey says 91% of women (the lead consumer) say it’s important for companies to support a cause. Moreover, 83% of all consumers want to know exactly where a corporate donation is going and how it’s being used.

Focusing help on a specific area, especially one that is synergistic with your business, and getting your target audience involved in the campaign makes you not just a good marketer but also a good corporate citizen. Those two are not mutually exclusive.

What do seals and sneakers have in common?

Monday, August 10th, 2009

new-balance-foundation-marine-mammal-center1At first glance, there isn’t an obvious connection… until you read the BBJ article highlighting the “New Balance Foundation Marine Mammal Center.” CTP client New Balance and the New England Aquarium have partnered to create a new marine mammal exhibit which will give visitors insight into the lives of sea mammals such as seals and sea lions. Taking that a step further (pun intended), the exhibit will also teach visitors how these mammals stay fit through diet and exercise and use this as a springboard for other initiatives like the “Get your Feet Wet” program. The idea is to promote fitness and activity by engaging kids through marine mammals who, besides being cute (which, let’s face it, never hurts) also happen to be some of the earth’s most athletic creatures.

Read the BBJ article here.

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