Friday, July 30th, 2010

dollar in piggy bank 164x225 custom You Take Dollars to the Bank…not percentages.

Following yesterday’s post about testing, someone asked me about testing promotional offers and wanted to know which has more appeal, a dollar off coupon or a percent off coupon.

After saying, “Test them both,” I told him that in my experience a “dollar off” promotion typically outsells a percent off promotion. Dollar offs, BOGOs (buy one get one free, cash rebates etc.,) rock harder than a simple percent off promotion.

Why?

One big reason.

Money talks and you know the rest.

It’s far easier for busy people (aren’t we all) to understand the value of a dollar figure vs. calculating percentages.

But hey, don’t take my word for it

Check out this Marketing Sherpa article which supports my view and highlights how one brand’s test proved that its dollar off promo delivered 170% more revenue.

Test people test.  And, always remember you take dollars to the bank not percentages.
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emarketer best time to send email 247x154 custom Email Timing and Testing Best PracticesFor our clients, I find that emailing campaigns early in the morning and early in the week provide better results. Early morning emails work better for us because it’s easier to get people’s attention before they jump into their daily activities. See B2B Magazine article here and this eMarketer chart which both agree. I’m sure early morning deployments work well for both B2C and B2B businesses alike.

Giving people ample time to react and respond along with a respectful reminder works wonders too. Marketers forget that not everyone opens their email every day and often their addresses are personal (non business) and may only get opened once a week.

Email timing is critical to the success of a marketing campaign. And, deciding the right time of day, and the precise day to deploy your email message is as important as the message itself, but many brands don’t pay enough attention to timing.

You need to get the timing right because your message competes with every other message received by land line phone, mail, social media and smart phones.

Pivotal Veracity discovered that the average elapsed time between when messages are first sent to when they are first seen is growing to about 26 hours.

See their report here: pivotal_veracity_email_engagement_index_q1_q3_2009

email testing 244x174 custom Email Timing and Testing Best PracticesIn addition, another email marketing best practice involves testing.  Email testing is pretty easy to do and I continue to be amazed by the lack of it by brands of all sizes. eMarketer reports that only about 63% of Marketers test their email campaigns! Ugh!

According to a recent ExactTarget study, 40% of email marketers’ lists are unengaged recipients and another 44% have a low level of engagement.

Different strokes (messages) for different folks is key to having an engaged database.

So, what can you test?  What should you try? Well, just about anything and everything! Check out just some of the opportunities in this chart:

email test elements subjects 300x195 Email Timing and Testing Best PracticesMarketers need to  maximize message relevance and avoid sending email subject matter to people who do not care to receive it.

Try creative copy split-run email tests by taking your list and divide it in half (or thirds) and simply test two/three different subject lines or calls to action or other features such as copy, design, offers or more.

Start testing your email marketing campaigns. It’s easy…just do it!

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Priory Winter White Wedding Logo 187x126 custom AMA Pittsburgh Marketer of the YearOver the next two days, we’re participating in two separate presentations to the Pittsburgh American Marketing Association at the Duquesne Club downtown and to students at Chatham University.

My client John Graf – co-owner of the Priory Hospitality Group – and I are co-presenting and will review the success of our Winter White Wedding program which has driven first quarter wedding bookings by 400% and continues to rock – it helped us win the Pittsburgh American Marketing Association’s Grand Marketer of the Year Award!

The Priory’s Winter White Weddings are a true testament to the success of  “Blue Ocean Strategies” that profitably transform brands by pursuing low cost brand differentiation that makes your competition irrelevant.

To help you sail in Blue Oceans, click this link to review the Priory’s PowerPoint deck:
AMA Pittsburgh Marketer of the Year Priory Hotel 3.16.10

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St. Patricks Day Logo 138x140 custom 15 Marketing Lessons of St. Patricks DayAs a 50 percenter of Irish blood and a serial marketing professional, I thought I’d offer you dear reader, my 15 Marketing Lessons of St. Patrick’s Day to help you find your little pot ‘o gold at the end of a rainbow!

And, I’ll offer them quickly because I shouldn’t even be working today – St. Patrick’s Day is one of my many “high holy days” - and there’s a Guinness pint with my name of it at one of my favorite Pittsburgh Irish pubs (Paddy’s Pour House) and it’s getting warm! So here you go!

1. Green Marketing Lesson One – Making Money. Always keep money (making it or saving it) front and center of any marketing campaign. If you know anything about the Irish (and I do growing up in a large extended family), the majority have experienced challenging economic times and know the value of a dollar. So, incorporating zero based budgeting into your marketing processes will help you become more creative and help you do a lot more for less. 

2. Green Marketing Lesson Two – Sustainability. These days when you hear brands talk about sustainability, it’s related to the environment, but the basic pure definition of sustainability is “the capacity to endure.” Using the same color in your marketing communications reinforces your brand, makes your marketing work harder for you and enables your marketing to endure.

3. Green Marketing Lesson Two – Color. Design and color can help you communicate a great deal. Red – hot, stop; Blue – cool. etc., Keep in mind that all colors also come in a great deal of shades so don’t be boring and predictable.  Green has about 50 unique shades.

4. Create Multi-Sensory Emotional Appeals (e.g., appeal to people’s five senses of sight, sound, touch, taste, smell). In a recent post about, “Marketing with Sound,” I discussed the awesome power of sound, but you should also consider all of the ways you can appeal to your customer’s five senses. St. Patrick’s Day appeals them all with color, strong visuals of parades, people having fun; taste of ethnic foods like corned beef and cabbage and drink (pints of Guinness and shots of Jameson) etc.,

5. Appeal to One’s Ethnic Heritage. There’s nothing wrong with appealing to people’s ethnic heritage – net, different strokes for different folks.  In fact, it’s a growing and popular strategy due to our mobile society, immigration, single parent households etc.

Some of this strategy’s keys to success include knowing your market well, being aware of unique cultural nuances, being respectful etc.  Disney’s Epcot Theme Park’s World Showcase is a great example of ethnic marketing, but Denny’s Restaurants’ recent Pancake promotion is not.

6. Be Inclusive with Your Marketing. As much of an Irish heritage appeal the holiday provides, St. Patrick’s Day is all-inclusive and welcomes everyone to celebrate – everyone is Irish on St. Patrick’s Day!

7. Special Event/Thematic/Celebration/Holiday Marketing. Giving a unique thematic association to your marketing messages makes it easier for your customers to understand you and more immediately recognize you too. Tie-ing in to a major holiday celebration gives your promotion authenticity and a “reason why” you’re holding a sales event.

8. Limited Time Appeal.
Having a hard date against a campaign creates urgency, excitement and traffic. Pretty obvious statement, but many marketers leave far too many campaigns without a clear end date and a sense of urgent appeal.

9. Spokesperson/figurehead/celebrity/image appeal. Having a Saint as your celebrity figurehead ain’t too shabby, but it’s the consistency of using the same appealing celebrity with a unique story is what works.

10. Iconic Marketing – Shamrock – brand, sell, profit. Mickey Mouse’s Ears, Ronald McDonald’s big red shoes, McDonald’s Arches and more.

Shamrocks do the same for today’s holiday – it’s the day’s badge of honor and identification. What’s your badge ID?

11. Rule of Threes. Legend has it that St. Patrick used the common Shamrock to teach the Celtic Pagans about the unique Holy Trinity of the Father, Son and Holy Spirit – 3 in 1 Godhead.

However, the “rule of three” symbolism in the good man’s teaching is relevant today as well because people’s minds are noisy and limited. Using the rule of three enables you to get them to remember you and buy-in a presentation or product mix selection. Small, medium, large; gold, silver, bronze; 3 bears; 3 blind mice; 3 Stooges (see more examples/proof here) – trust me – the rule of three rocks.

12. Be Positive. You won’t find a more positive group of people that the Irish. Despite all of their “Troubles” who else tells you that you can find a pot ‘o gold at the end of a rainbow? At Pittsburgh’s St. Patrick’s Day Parade this past Saturday, people throughout the day referred to the cold constant rain as nothing more, “a little Irish mist!”

13. Be Nice. You’d be hard pressed to find a nicer bunch of people than the Irish on St. Patrick’s Day too.

14. Have fun and don’t take yourself so seriously. In this age of “political correctness” the Irish are for the most part a happy and fun bunch and most Irish demeaning jokes bounce of them like water on a duck.

15. Plan Your Luck by Working Hard. In my opinion, “the luck of the Irish” is based on hard work – simple as that. You’ve probably heard the saying, the harder you work the luckier you get!” Well, its true. The majority of Irish are no strangers to hard work and I believe – all things being equal – people that work harder and smarter than their peers will meet with more profitable success in a shorter period of time.

Got to run, my pint is getting warm.

Slan (Gaelic for “farewell for now”)!

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Ugly Baby 136x115 custom Dominos Calls Baby Ugly and Doubles ProfitsAs a brand marketing consultancy, people pay us to, “call their baby ugly” and discover profitable ways to make it more attractive. It’s not an easy thing to do, especially when the business owners or leaders you’re consulting with happen to be the ones who gave birth to the baby you’re critiquing.

A few months ago, I caught the news and television commercials about how Dominos Pizza executives blatantly called their baby – a pizza pie – ugly. They announced that they had listened to their customers (inside the company and outside the company) and had taken strong, bold steps to clean up their act and improve their product.

I applauded their authentic, open approach and knew if they were true to their words with actions and walked their talk, their honesty would be rewarded in spades.

Here are the steps Dominos took:

1. They first listened to their customers (internal and external) and agreed to take action because they believed what they were hearing – that is, their product was not good. They started to revamp their recipes more than 1.5 years ago following a ton of focus group and social media site criticism. Remember, the first step to transforming (see rehab) a brand or yourself is admitting you have a problem and need help.

2. They “started over” (total transformation) from scratch by revamping their pizza recipe (new sauce and cheese combination and herb-and garlic-flavored crust)

3. They launched an honest documentary style ad campaign (in short, “we’re sorry…we agree with you that our baby tastes like cardboard…we did something remarkable about it…we think you’ll love it…please try us again”)

The result? A ton of curious customers rushed to try the new Dominos pizza and rocked their sales. In fact, Dominos Pizza Q4 2009 profits more than doubled!

Here’s a great Dominos turnaround video explaining how it all went down.

And, here is a link to a current Dominos commercial challenging Papa John’s claims and a link to the story about their amazing results.

So what are some of the steps you should take when your company or client is performing poorly and you recognize radical change is needed?

Here are 2 suggestions.

1. Be careful and smart with your language. You need to be careful to not to just slam the poor quality of your brand’s systems, products, people, processes etc., because the people you’re trying to influence may be defensive. Have concrete facts.

2. Concentrate all positive energies on transformational business building ideas. Focus on specific business building ideas to help them achieve their KPIs (key performance indicators).achieve their business objectives. Discuss how you’ve experienced similar challenges and relay to them potential outcomes and blue sky possibilities.

Be a marketing ambassador of hope and handle those ugly babies with kid glove because when you do, their brand parents will adopt your way of thinking!

P.S.: I love all babies.

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dennys how may we beat you 244x295 custom Irish Asked to Boycott Dennys File this Blog post in your, “What were they thinking” folder!

From very reliable and ticked off sources, I understand that Denny’s restaurants have been airing a disrespectful television commercial degrading the Irish by offering unlimited pancakes or fries in celebration of the ending of the Irish Famine.

Mama Mia!

If this is a joke, it’s not even close to being funny. The Irish Potato famine (An Gorta Mor) which caused the suffering and death of 1.5 million Irish due to forced starvation and related diseases is nothing to celebrate.

It’s a blatant insult to the Irish and they’re mobilizing.

For you Brands involved in Social Media Marketing watch how this unfolds.

I’m sure Denny’s will pull the Ad, and some talking head (whose head and whose mini-me heads should roll) will say, “I take full responsibility…yadda…yadda.”

But, is a simple apology enough? I don’t think so.

Watch the Irish mobilize and give Denny’s their own version of a Grand Slam – the marketing bozos at Denny’s deserve it!

Here’s a protest letter (AOH Denny’s Letter) from the president of the Ancient Order of Hibernians.

First, they offend African Americans (who knows how many other people since) and are made to pay $54 million in Race Bias Suits, and now this asinine insulting ad?

As a marketer (and a restaurant and hospitaly marketer too), I’ve been amazed by the amount of positive coverage (Super Bowl Ad) in the mainstream marketing media about Denny’s Free One Day Breakfast campaigns.

As for me, I prefer a Denny’s tagline in Time Magazine, “Denny’s: Where the Food Is Free and Drunks Can Pee!” because I believe in truth in advertising!

Full disclosure – I’m 50% Irish and a member of the Ancient Order of Hibernians. And, I haven’t been a big fan of Denny’s since the African American incident. I go out of my way to get my eggs over medium at a local independent Mom and Pop joints and will continue to do so.  I suggest you join me.

FYI – I called the following Denny’s Customer Service number (1.800.733.6697) to demand that they pull this ad off the air, and they said, “I apologize and we’re aware of people’s concerns and we’re working to pull the ad.”

Some answer.

Note: The old days of a customer telling 9-12 people of her negative experience is way over.  With Social Media, it could be thousands. Brands need to raise their game, because if/when you pull a stupid act like Denny’s, you’re going to get blasted!

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cash tip jar 129x171 custom Banned for Bad TippingWhen I caught this headline, “Banned for Bad Tipping” on CNN.com today, I just had to check it out since we do so much work for restaurants and the hospitality industry.

View the story here:

I’m not sure who is right here, but my gut says the customer.

Even if the owner is correct when he says that his customer is not a good tipper, she still paid her bill for the basic food and service she received.

Now, I consider myself a pretty good tipper, but more and more I’ve been working to get back to tipping based on the quality of service I receive. There are far too many people and businesses in my life (and I’m sure yours too) where they feel entitled to a reward for doing basic or even sub par work.

It’s got to stop.

I’m not sure where or when this entitlement gig got started, but my guess is that it started sometime about 35 years ago in kids sports – especially baseball – where “Tee-ballers” started to hit baseballs off of tees (instead of having the ball pitched to them) and everyone started to get trophies regardless of where their team finished.

Oh yeah, I’m blaming it all on Tee-ball!

In the hospitality business, you’re supposed to be “hospitable” it’s the basic greens fee part of the gig. Tipping is supposed to be based on what someone does over and above the call of duty.

I mean my hot food should be hot and my cold food should be cold. Servers are supposed to deliver my food to me in a reasonable time with no foreign objects in, on or around it right? I’m supposed to tip you for that? C’mon people.

I checked out Magellan’s Worldwide Tipping Guide to see where we American’s rank and right there, I  confirmed my suspicion that we American’s are one crazy bunch of people. We tip more than just about every country in the world, and I’ll bet you agree that for the most part your customer satisfaction level with the majority of business and people is average to below average!

acsi national graph customer satisfaction 300x180 Banned for Bad TippingThe interesting thing about my argument is that the majority of customer satisfaction scores in industries have statistically improved (see American Customer Satisfaction Index here).

Yeah, but my gut and head says that what people say and what people actually do and feel aren’t always coordinated. I believe most people have internalized their customer satisfaction expectations (read – lowered their bar) because for the most part, they’ve been let down so many times that they simply learn to accept and deal with sub par performance.

Here are a few of “Marketing Tips” for you today to help your Brand excel.

  1. Get away from assumptions and entitlements – cast them aside
  2. List your Brand’s basic greens fees of performance
  3. From that list, work up a few cool ideas to “surprise, delight and impress (read – WOW)” your customers> Make sure these ideas are ones that your core customer base considers valuable and are not offered by your competitors.
  4. Implement these new cool ideas.

Now – watch your tip jar explode!

P.S.: Years ago in a performance review session, one of my team members thought she should get a bonus (read tip) because, “I always come to work on time.” She was wrong to assume, but I was more wrong because I wasn’t clear in my expectations of performance training.  I never made that mistake again.  Big lesson.

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Giant Eagle logo 188x98 custom Pittsburghs New Innovative Giant EagleTwenty years or so ago, I had several conversations with marketing colleagues about how supermarket chains lacked creativity. The general experience was underwhelming and one that most people dreaded.

During those years, I would take Cadillac, Oldsmobile and McDonald’s clients into Wegman’s supermarkets throughout western, New York to show them how great they were and to learn merchandising, customer service and overall retailing lessons they could take back to their car dealerships and restaurants.

They were amazed that you entered the store through the produce department instead of the typical trip past the cash registers as was the general industry practice way back then. Their merchandising strategies had no peer.

Wegman’s then and now, is one of the most innovative and well-run supermarket chains in America. It’s no surprise to me that they’re ranked #3 on FORTUNE “100 Best Companies to Work For.” They are consistently ranked as one of the top supermarket chains in the country and have received a ton of well deserved awards.

Stew Leonard’s – the world’s largest dairy store – was a hot case study of discussion too.

And way back then, I could not understand why the innovation I saw across the country was not occurring in my own backyard.

About 10 years ago, I got some some luncheon meat from the deli at my hometown Giant Eagle supermarket and was ecstatic to receive it in a plastic bag instead of paper! I mentioned my discovery to a colleague of mine whose spouse worked for the company and told me that the store received the bags as part of some deal and they were simply testing to get some use out of them. Amazing – it was a huge boost to my satisfaction.  This little simple new touch was so well received that it quickly spread throughout their stores and became a permanent part of their system.

Well, something must be a bit different in the water these days in Pittsburgh’s three rivers (especially the Allegheny River) because Giant Eagle has been on a tear of remarkably innovative new product launches such as its:

And now, Giant Eagle is testing in four concept stores it’s latest innovation for HBW (health/beauty/wellness) which could become a huge profit center by linking its supermarket pharmacies with its HBW departments. What a stroke of innovative genius.

I’m happy the new Giant Eagle has finally landed in “innovation land.” Their story should demonstrate to older established brands that it’s never too late to innovate.

To profitably increase your market share you need to establish an innovation plan and follow it. Don’t wait for competitors to come into your neighborhood to force you to do it. Self inflicted innovation is the preferred route to take.

P.S.: Not all innovations have to be big and expensive – think deli meat plastic bags.

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batter blaster pancake mix can 270x239 custom iWant, iNeed, iGottaPancakes in a can? I’m all in!

What a simple brand promise – so easy and clear to understand.

Think Reddi-Whip aerosol can, but think Pancakes – maybe think both at the same time (hint – writing this during dinnertime – and, I’m a little hungry)!

Anyway, I plan to try NEW Batter Blaster this weekend, after eating up it’s marvelous marketing and unique story for some time now. You can learn a ton about how to effectively create and launch a new product by studying the good folks at Batter Blaster. For example, here are just a few reasons why they’re achieving amazing success:

  1. They created a truly new product that solves a need. Make pancakes easy and quick to make with little waste and mess.  Everyone knows that it’s a pain to make pancakes for one or two people – especially in the morning if you work.  Most people blow off breakfast – the most important meal of the day – because of a lack of time – so, Batter Blaster to the rescue! Plus, BB cakes must taste pretty good to be able to quickly earn nearly $20 million in 2009 sales when it just got up and running in 2005. Certainly it might not be the best tasting pancake you ever had – taste is a subjective attribute – but balanced on the whole against speed and convenience, it must taste OK and certainly worth a try.
  2. Clear Positioning – Easy, Quick, Better…Fun. Shake, point and shoot! It’s so easy to talk about it – so easy to explain. People get the core value proposition spot on and it’s easy to spread the buzz. Everything about Batter Blaster is easy – their web site, lists recipes, places to find productproduct information and it’s a cinch to find contact information too. And, it’s fun – love the 50′s-style jingle when you hit the home page – “Make a better breakfast faster, Batter Blaster! It’s a spot on benefit rich positioning statement that’s easy to remember.
  3. Show and Tell and Proof of Performance. Great use of demos, testimonials too – love the Guinness Record Book move – brilliant!
  4. Great use of Public Relations and Social Media – How about 9,000 Facebook fans of Pancakes-in-a-Can! Let’s face it though – it’s a much easier to get coverage and viral buzz when you deliver on your promise!

In this age of iPod, iPhone and now iPad…iWant, INeed, iGotta have me some iPancakes from Batter Blaster because I’m thinking I’m going to love them! At least one time!

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North Face South Butt Marketing1 A Butt Face Marketing LessonI just love this lawsuit kicked off by The North Face – an premium preppy outdoor apparel and gear company – vs. The South Butt – a skunk works operation run by a college kid.

The North Face giant is suing the kid – Jimmy Winkelmann, a University of Missouri college student for trademark infringement, dilution and unfair competition.

The logos and clothing are a bit similar. And, The North Face’s lofty slogan, “Never Stop Exploring” is positioned against the far less lofty and comfortable mission of The South Butt’s which is, “Never Stop Relaxing.”

For The North Face to win, they have to prove that the two brands are confusingly similar. They’ll lose…I’d bet on it. There’s no doubt that the two companies are different.  I think the average person knows the difference between a face and a butt. Don’t you?

In the meantime, The South Butt is smoking hot and taking advantage of being bullied – their Web site has earned nearly 20 million Google hits.  The South Butt smartly recognized that everyone loves the underdog so they’re making the case well known. And they’ve launched a cool The South Butt Challenge Facebook App to boot!

Jimmy’s going to ride this all the way to the bank and I’ll also bet that he graduates from Mizzou with no school loans!

What’s the marketing lesson? Well, it’s an old and simple one.

The North Face should have left sleeping dogs lie and left Jimmy alone.  They’re flaming his fire and contributing to his success by airing their grievance.

This is a classic case of market share leaders making the stupid mistake of identifying and attacking competitors no matter how big or small.  They have nothing to gain and more to lose.

Class dismissed.

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