Category Archives: marketing

Is your customer support a bit of a let-down?

Most businesses these days understand that they are driven by Brandships.  Many appreciate that Brandships are built on trust and few would fail to recognise that if their words and deeds are in any way inconsistent, either with each other or with their Brand Promise, they stand little chance of establishing the level of trust that success is built on.  So where is it going wrong?

Having acquired this wisdom, organisations around the world now devote a great deal of time and invest heavily in initiatives designed to represent their brand values consistently at every touch-point.  Getting every communication to say the same thing is the essence of integrated communications.

Because customer acquisition for all the reasons I’ve explored here in the past, is getting horribly expensive, Brandships are more valuable than ever, which is why businesses are increasingly seeking to improve their customer support,  a factor that is accentuated by the growth in e-tailing where the incidence of customer complaint is, as I mentioned last month, a bit of an issue.

I’m encouraged by the increase in the number of businesses who, instead of trying to make customers with a complaint feel like Oliver Twist asking for “more gruel”, have adopted a no-quibble replacement or compensation policy.  It seems that,  at last, the penny has dropped on this one (Although you’ll note from my earlier post on this subject that Halfords still don’t get it!).  However, you can have the best complaint resolution policy in the business, but it ‘aint worth a hill of beans if your customers have to navigate a maze of on-line and telephone obstacles to get to it!  There’s no more telling evidence of a genuine commitment to Brandships than an organisation’s on-line or call-centre process and it’s certainly taken by customers as a pretty good guide to brand values.  So why do so many businesses get it wrong?

My guess is that they simply don’t recognse what’s happening.  I’ve been advising senior execs lately to call up their own customer support line from time to time, rather than rely on the KPIs they get every month.  Whether your process is automated or not, the way you handle after sales contact with customers can be pivotal to the success in Brandships.  This isn’t just about damage limitation (because nearly all the calls you receive are going to be potentially damaging), many businesses have demonstrated that you can actually reverse the momentum, turning a potentially damaging situation into one that strengthens Brandships, if you handle them correctly.  For most this is nothing more than aligning the process to the brand model, which, sadly, few businesses do well.

In recent weeks I’ve experienced both the best and the worst in customer call handling.  The worst being the episode with Halfords that I reported on here last week and a more recent still, an encounter with HP’s customer dis-service process that starts with their un-navigable web site, designed to send you round in circles until you screw yourself!  Yes HP seem intent not to engage with you unless they absolutely have to, which is a pity, because if you can get around the system and actually manage to speak to the person you need, the response (in my case anyway) was exemplary.

I was also disappointed when re-visiting a brand that I have been happy to deal with for years.  I have never before had cause to complain about Polar UK, The local distributor for Polar, who manufacture heart-rate monitors for athletes, but I’ve called and spoken directly to their service people in the UK a number of times.  Such an old-fashioned process may have been a little at odds with their global positioning, but it was very reassuring and, overall, it worked.  Sadly, they have succumbed to pressure to automate their calls handling, but in their case the band-waggon has a wheel missing.  In fact, its possibly the most bumbling and poorly conceived process I have come across for a good while and the antithesis of everything that I have come to expect of the Polar brand.  This takes me right back to the principles of Full Effect Marketing – individual marketing elements, which because they are neglected, neutralise some of the brand building benefits of higher-profile elements that the business is investing in.  In other words … waste!

The up-side of my engaging with customer service processes has been a discovery I made of a business that specialises in designing models that actually contribute to brand development.  Brand Audio in Edgware, North London, will study your brand (even work with you to help you profile it if you haven’t already) and then bring it to life in navigation, messages and music.  Just what every business needs in fact.  This isn’t about hardware or programming (although I’m told they can provide that too), its pure brand development and while I am sure they are not alone in this space, it made me feel good to know that there is someone my clients can turn to for this kind of specialist help.  Brand Audio work with a host of leading brands who recognise the need to prioritise their customer handling processes.  At least, one route to great Brandships (and therefore a healthy business) is in the way you interact with customers on-line and on-phone and I recommend to every business to address this area of their marketing before its too late.

Footnote: Brandships, as it suggests, is the name I use to describe the relationships we have with brands.  Enter the world of Brandships at www.thefullblog.com or follow me on Twitter @thefulltweet.

Communities of interest – A lesson for the Big Society?

I just love and have always promoted the idea of communities of interest.  They make the otherwise impossible, possible for business and, for small concerns particularly, are often the difference between success and failure.  Just because it doesn’t slide neatly into one of our business-model pigeon-holes, doesn’t mean it’s not legit.  In fact marketing is nothing if not about doing things and going places that nobody has gone before.  That’s why I particularly like this idea.

When an international film-maker gets together with the owner of a historic monument that’s desperately in need of renovation, a bit of creative improvisation around the age-old bartering theme can give you a solution like this.  Not only is it a great outcome for the building owner it was great marketing too.  There are so many ways that the film producers and promoters could leverage this initiative I can’t wait to see what they do with it – beyond making the series, of course.  Maybe there’s a lesson here for the Architects of David Cameron’s Big Society?

Halfords’ customer service sucks – well, it would if I had my way!

I’ve never had anything against Halfords.  In fact, I could refer to various supportive comments that I have made over the years.  They seems to have carved a niche for themselves in the bike sector, they triumphed in a deal to distribute Boardman bikes, they were smart enough to partner with an auto service business and now fit the products they sell to motorists and cyclists alike and they made the forray into Poland and the Czech Republic.

Their staff in the UK at least, while nothing to write home about, are certainly, if Mary Portas is to be believed, as good as you would expect from a multiple specialist retailer these days.  On the down-side, their on-line performance leaves a lot to be desired and dealing with their head-office at any level is a bit like wading through porridge, but its my recent experience of their approach to customer support that has sent my overall personal satisfaction rating way into the red.

OK, so Halfords aren’t having the best of times at the moment.  Like-for-like sales are down and despite all the usual excuses – recession, weather, cost of car ownership etc – that always has something to do with the way you treat your customers.  You’d be right to point out here that, last we heard, profits were up, due in part to a concerted effort to drag their back office, logistics and pipeline into something approaching the twenty-first century – Oh, and a quick reverse out of the Czech Republic and Poland.  Nevertheless, I still hold on to the idea that if you treat your customers well you’ll succeed whatever the size the market may shrink to.

Halfords has never gone out of its way to make customers feel wanted.  It wasn’t that long ago that they undertook to respond customer-support e-mails …  wait for it …”within eight days”!  Communication has been a bit quicker lately, but that’s not a lot of use if they aren’t being helpful.  Someone should point out to them that making statements like “we value your custom” and “we pride ourselves on our customer service” is all very well, but until you actually resolve issues its only “lip-service”, not “customer service”!

If you drop your Tesco shopping on the way to the car, Tesco will replace any broken items.  They don’t have to, it’s just their way of making you feel good.  You may consider this as giving 110%, but, let’s face it, it costs Tesco tuppence and the value to them in customer satisfaction ratings is worth far more than that.  Yes, every little helps!  In contrast, telling you they make every effort to make you satisfied, is “job done” in Halfords book!

Last weekend I bought a four-litre plastic container of concentrated screen-wash from Halfords, along with a bunch of other stuff.  I placed it in the passenger foot-well of my car and drove home, only to discover, when I arrived, that the foot-well was now an inch-deep in screen-wash and the container was almost empty – no doubt where that had come from then!

I took it back to the store where the manager pointed out that the seal that should have prevented the cap from coming off the container, had been broken, presumably by someone in the store, which he added, was not unusual.  He replaced the purchase, but I still had a screen-wash lake in my car and thick-pile carpets that don’t come out just like that.  On his instructions I e-mailed Halfords’ customer service to seek recompense for the cost of having my car bailed.  And after a couple of days I received a reply.  Apparently, they don’t see that its anything to do with them and suggested that if I had taken proper precautions while transporting the screen-wash I wouldn’t now have an on-board swimming pool, steamed-up windows and a very smelly car.  I get the impression they think that by explaining this to me they resolved my issue.  I’m sure I just went into their customer service database as another satisfied customer, but right now I feel as though the customer service manager should personally suck the screenwash out of my carpets!

They may be making a profit, but with an attitude to customer service like this, in a shrinking market I wouldn’t put my money on this lasting long!

James Bond – brand agent

There’s a new series on BBC TV called Faulks on Fiction, which in reassuring as-it-says-on-the-tin fashion is Sebastian Faulks taking an entertaining look at the world of novels.  This week his subject was heroes and featured Ian Fleming and James bond.

Faulks receives useful and well-informed help from John Hegarty, described in the caption as “Brand consultant”, with justification when you consider the part he has played in the development of so many famous brands, but better known to marketers, simply as the Hegarty in Bartle, Bogle, Hegarty – another great brand.  BBH, you’ll remember were, responsible for the Levi’s Launderette campaign , which I am sure I am not alone in believing, is the campaign that marked the coming of age of Brand Development.

Faulks hits the nail on the head in his analysis of Fleming’s genius in the creation of the Bond character, when he and Hegarty highlight the way Fleming defined Bond in terms of famous brands.  In a featured interview, Fleming himself confirmed that brands are a great way to define a person.  However, until Bond, this idea had never been fully exploited.  Bond is Rolex, Ritz Hotel, Smirnoff, Dom Perignon and a whole lot more.

Regular readers of this blog will be familiar with the theme.  I’ve explored, Maslow’s Hierarchy of Human Needs  a number of times in the past, in particular, the theory that we are all gradually ascending to a point of self-actualisation, but currently stuck at a point where our goal is the approval of others and the pursuit of belonging.  I have called this the “I am what I buy” or “I am what I wear” syndrome, which is represented admirably by this story and continues to be the heart of any well-founded brand strategy.

In fact, Bond matured to become an iconic brand himself, ironically adding substance to brands like Smirnoff and Aston Martin from which he was forged and many more besides in a kind of DNA cycle that is replicated in BBH – builders of brands that define their brand and the many other examples that surround us daily.  I can think of no better illustration than James Bond of what brands and branding is all about.

The things our fathers didn’t tell us

Did Wickes commission the Comcero.com survey that revealed that Britain’s young men lack DIY skills, or are they just promoting it on their web site?  Whichever, it may have “got Wickes name on it”, but it seems to me that this isn’t news to their competitor B&Q who have been playing this card for a few years already.

The fact that B&Q’s older shop staff are intrinsic to their brand DNA can’t be an accident.  These are the people who grew up in an era when you measured a man by the weight of his tool box and he could fix, build or re-model pretty well anything.  It’s just a pity that the big orange sheds haven’t done more to build “brandships” around this theme.  Maybe now Wickes have shared this with us, they will.

Its definitely a generational thing.  Back in my other home in Prague, where society, despite its desperate scramble to become Western and “up-to-date”, lags a few decades behind the West in many ways, a remarkable and endearing Czech character trait is their reluctance to throw anything away.  Czech men, even the young ones, fix things.  Its not always a pretty sight, but there are things in every day use in most households, that would have been thrown out years ago by a faddy, fashion-obsessed Westerners who legions of manufacturers exploit annually with the introduction of new product models.  My Czech neighbour, who runs a business on a vintage PC with Windows ’97  just doesn’t get it.  Why should he upgrade when the things he has still work (albeit slowly)?

The Czech government had to introduce laws to stop drivers running ancient Skodas with drum brakes and three forward gears.  Every urban street has a communal car ramp where residents for years have worked on their Skoda 120′s and even today my guess is most motorists do their own servicing without questioning it.

My Czech brother-in-law needed a house, so he built one – I mean, himself, on his own – bricklaying, carpentry, services, the lot!  But to him that’s nothing out of the ordinary in a society that’s probably forty years behind us in many of its attitudes.  In fact, when Britain’s older DIYers finally retire for good, maybe our DIY sheds will be able to bolster its ranks with young recruits from Central Europe, who still know how to do all the handy jobs about the house that our fathers did?

In successful companies employees dance on tables

You don’t need me to tell you, its tough out there.  Many businesses that I come across are struggling to adjust to the new rules of business and a few are still realising that many of the old ways of running a business simply don’t work anymore, but, old habits die hard.

I’m seeing a disappointing return to purely tactical focus and its hard to persuade the companies heading in this direction and whose priority is to pay this month’s wage bill, that  it’s a dead-end street.  A still more worrying trend I am witnessing though is towards whip-cracking.  Much as I sympathise with the desperation of managers who simply don’t understand why the approaches they have used successfully for years to build or run a business don’t work in the era of new model marketing, flogging your staff is the desperate last twitch of management that has already failed.  High-pressure tactics like this are doomed to failure in both the long and the short-term.

I overheard a conversation last week where a middle manager was bemoaning the loss of the “good old days”.  “I remember …” he said “… the days when, if I was out of the office for a day, I’d return to find my stuff all pushed to one end of my desk because someone had been dancing on it!”.  Extreme perhaps, but there are offices throughout England where the atmosphere is so dour and depressing that its hard to imagine that this kind of thing once happened in successful businesses.

My mind goes back to a quote by Tom Peters in one of his early presentation where he begged business leaders to ask themselves if there was a spring in their employees’ step as they walked across the parking lot from their car to the office each morning, saying “If there isn’t, it’s your fault!”.  His overarching point being that unless employees are happy and enthusiastic about their work, your business will fail.

How many organisations, who today are battling to put together a business strategy that works under the new rules, are paying attention to the absolutely vital element of employee engagement?  Without the backing and buy-in of employees, no business will stand a chance of delivering its brand promise, and when you fail at that you’ve just failed!

For those tempted to respond with “… but we never did any of this stuff before”, I’ll underline what I have said earlier and many times before – If you got away with this omission in the past, it was only because the competition (despite what you may have thought then) wasn’t that tough.  Now its “game on” and there’s no room for slack.  No business can afford this level of inefficiency and, believe me, trying to deliver a promise without having first secured the committment of your employees is inefficient in the extreme.

If you think its par for the course for managers to be hated by employees, forget it!  If you confuse respect for you as a manager with distant or non-existing relationships with your staff you need to take a reality check.  Successful businesses have always had figureheads who employees are happy to stand behind – Richard Branson, Bill Muirhead, Maurice and Charles Saatchi, Stelios Haji-Ioannou, Steve Jobs … I could make a long list, but you get the idea.  Developing and leveraging relationships like these are all part of the internal marketing task.  Don’t side-step the issue.  These internal “brandships” are the key to the “brandships” you have with customers and that’s what drives your business.  When you need all the help you can get to keep afloat, the last thing you should do is abandon your internal relationship-building, so double-check your marketing strategy to ensure you are doing all you can to get your employees dancing on the tables!

Don’t be a knee-jerk. Turn that bad patch into an opportunity.

Last week following a rare (these days) squash triumph I was chatting to a couple of players behind the courts who pointed out that having looked like the Xmas turkey at one point, in their words, I’d refused to panic and managed to pull myself into the lead point-by-point and held on until the end.

I was reflecting on this conversation a while later and realised that the “not panicking” thing also has parallels in business.  Most organisations go through rough patches at some point in their history, but what separates the men from the boys is the way they rise (or don’t) to the challenge.

Even rock bottom  is no time for knee-jerk responses, unless your instincts are flawless (and if that were the case, you probably wouldn’t be having lean times in the first place).  Failure is more often a case of the business not keeping to strategy than it is the strategy itself, so, first off, take an honest and close look at your business to be sure that you are staying true to your aims at every point in your delivery process.

Don’t make the mistake of switching all your resources to the front line either.  You have to remember that sales have their own gestation period.  If your sales ratio is one in twenty leads, doubling your sales resources will only give you the ability to follow up twice as many leads.  You may get twice as many sales for a limited period this way, but you’ll very quickly realise you’ll need twice as many leads to keep going and that’s about the rest of your marketing machine.  In fact, best practice is firstly to focus on activities earlier in your marketing process to increase the quality of the leads that you generate, improving your sales ratio and thereby increasing the efficiency with which you use your sales force.

Failure to maintain your strategic initiative will quickly find you on the kind of expensive and labour-intensive tactical mill-wheel that just about every business in the developed world is trying to stay away from.  Not only are you unlikely to influence your sales ratio, your lead-generating initiatives will have stopped, so nobody will have set up future sales opportunities and you’ll be back to square-one, condemning yourself forever to door-knocking for sales, which, as we all know is very inefficient indeed.

There are a few other things that you can do too.  Look at your sales process model and dinterrogate the links where the fall-out occurs.  If people seem to be interested in your product, but don’t end up buying, work out why this is.  Maybe its a pricing issue?  It’s amazing how many businesses still try to sell parity products at premium prices, but, when times are hard, these are the businesses that suffer.  Being more expensive than your competitors isn’t always the end of the road as long as you are offering at least equivalent value.  If the price you are asking buys more features or benefits than your competitors’ emphasise your advantage at every point in the sales chain.  However, you’d be wise to make sure first that the added features are ones that your market cares about.  Don’t start by kidding yourself that just because your bundle is bigger it is worth any more to your customers – ask them.

When all else fails your only option is to reduce your price, which means taking a close look at your delivery system and cutting out inefficient practices.  If you think you are running lean already, think again.  A good marketer can usually find ways to improve the efficiency of even the most streamlined business.

Of course, it could just be that you need to be more creative in the way you stack the deal.  For example, payment plans can be cut and diced many ways to suit specific customer needs.  Consider what you and your customers need and tailor your offer accordingly.  If you need cash-flow, structure your offer with an incentive for up-front payment or introduce a sliding scale payment plan that covers your liabilities, but makes your product more accessible.  Conversely, if shifting dated inventory is your problem maybe you need to create a deferred payment scheme that will enable customers to get hold of your stuff whilst tying them in to you for longer.  If you manage to resist the knee-jerk, you could even come out of your bad patch in better shape than before.

If packaging design didn’t influence sales we wouldn’t be investing millions in it!

In case you missed it, Britain is currently engaged in a debate over the merits or otherwise of legislation that will force cigarette manufacturers to package their products in plain brown boxes.

I heard the subject being aired last week on TV when a marketing “expert” was asked by a sceptical presenter whether the move is likely to have the intended effect.  The expert replied that it might make a small difference, but it wasn’t going to convince people to give up.  Now, pardon me, but I think either she or I missed the point here.

Firstly, there’s a limit to the influence anybody can have on existing smokers.  Smoking isn’t a habit, but an addiction that education isn’t going to have much impact on and in this context packaging even less.  However, I find it hard to belive that the folks responsible for the anti-smoking campaign haven’t worked out they’ll get a quicker return on their investment by focussing on preventing people from becoming smokers in the first place and in this respect, packaging is very influential.

This being so, the packaging idea makes a good starting point for anybody seeking to reduce the number of smokers.  Smokers are largely brand loyal and once hooked they’ll buy their favorite whatever the packaging.  Sure, nice packaging may help maintain the “Brandship”, but we’re not talking about brand-switching here and the box really comes into its own in attracting newcomers to the world of the weed.

For as long as I can remember, tobacco manufacturers have invested millions in package design – Why? Because it works!  Generations of smokers have been lured by attractive packaging, but while the packaging that wins a smoker in the first place has done its job for the brand, it has, in the process, also added to the smoking community.  The thought behind the idea of brown box packaging surely isn’t to persuade smokers to give up, but to reduce the appeal to, largely young, non-smokers who are more susceptible to the lure of packaging?  On that basis the plan gets my vote.

UK needs to catch up on in-store music.

I’m feeling guilty that I’ve been neglecting my blog for the last few months.  Time flies when you are having fun and I’ve been engrossed in developing a new offer with Immedia Broadcast, who lead the UK in the design and delivery of bespoke live radio solutions for commercial enterprises.

Having set the bar for the last ten years in the high-ticket radio  and TV solutions that have made them famous Immedia are keen to apply their skills and experience to the volume end of the market and I’ve been working with the  amazing technical, radio production and music psychology experts in Newbury in the South of England, to create what we have called Dreamstream, an off-the-peg music solution that smaller businesses can access for a minimal monthly subscription.  It’s still a work in progress, but take a look and let me know what you think of it so far.  www.dreamstream.co.uk

The journey has been fascinating and among the interesting processes we have encountered along the way, we commissioned a significant research piece that involved talking to 800 small store proprietors.  This as a bit of an eye-opener and maybe a pointer to why our small stores aren’t always realising their potential.

While I’m used to retailers in the US and elsewhere, who, regardless of their size, already recognise the business case behind in-store music, their UK counterparts definitely need help joining the dots.  There’s research everywhere (and its a fundamental of my “Brandships” principle) to establish beyond doubt that music, that reinforces and reflects your brand will make customers feel at home.  It also shows that as a result of this they stick around longer in the store and return more frequently and we all know that once you have achieved this you’ll see an increase in sales.

There’s another angle to the in-store music argument though and that’s the impact it has on employees.  Those of us who have worked with this tool will know that store staff are responsible for a lot of the complaints about in-store music.  It’s also often the employees who exacerbate the problem by messing around with the content and volume in the stores where they work.  However, retailers that get their music right will find that their employees are energised and more enthusiastic about their work and this in turn increases productivity and sales.  Its pretty conclusive – increased customer propensity and greater employee engagement and there are case studies on the Internet where retailers have shown increases of 20% in sales just from music, without any announcements or commercials.

Sadly, some UK independents remain sceptical.  Our research even found a few who believed that in-store music actually had a detrimental effect on business.  The reason for these opinions can only stem from their experience of some of the absolutely awful in-store music that we hear in the UK.  I think there’s a major education challenge facing the sector and, with current challenges of the new economy, and the drift towards “clone towns” we need to get cracking on this quickly.

It beggars belief that a cash-strapped shopkeeper will pay more than £300 each year on PPL and PRS music licences, only to waste it by playing local radio or worse still the dregs of their own music collections.  Music that works is the product of the marriage of science and art that you can only get from professionals.  These small businesses need to understand that the DIY approach is a recipe for disaster and local radio is not going to do it for them either.

UK independent retailers have a long way to go to catch up with their counterparts in the US and until they understand how to make the most of the opportunities like in-store music that are definitely available to them, their self-pity and claims of a market biased toward multiples aren’t going to receive much sympathy.

Credibility Gap?

The failure of the Gap’s new “branding” exercise isn’t the only recent demonstration of how even big organisations still don’t “get” brand #101, but its a good one.

For those who aren’t up to speed on this story, Gap invested big money in a new logo, that their customers don’t like and in one of the purest forms of customer power I’ve seen, they responded by forcing the retailer to put their plans into quick reverse, abandoning the new logo and all the cash and energy they had invested in it’s development .

This is failure on a grand scale.  Apart from the fact that their customers clearly have a better appreciation of design than the Gap execs (The new logo design is pretty shoddy), on the most basic level its a major cash hit and therefore just plain inefficient, which we all know is simply not an option in today’s competitive environment.  These days you simply don’t get to score below 100% efficiency and survive for long.  Then its plain bad judgement, that can only be the result of a tragic customer disconnect – How could they not know what their customers would think of the design or how they would react?  Even I could see that one coming and I haven’t been in a Gap store for at least ten years!  The thing that worries me most though is that a business like Gap, with its heritage (Haight-Ashbury, the Hippie movement, record albums, jeans and all that) could fail to recognise that their brand,  undoubtedly an icon (until now), is a product of and belongs to their customers.

Nobody could deny that the old Gap blue square and serif font was due for an update, but it was exactly what a logo should be – a reflection of the business, which could definitely benefit from a face-lift .  However, you simply don’t change anything about a brand like this without involving your brand community (customers, employees, partners etc.) in the process.  If you are daft enough to try, the very least you would do is research the result, but the really, really criminal thing about this is that whoever drove and approved this change clearly didn’t understand that a logo is a product of the brand, not the other way around.  Gap may feel the need to be current, but having a logo that meets that criteria doesn’t do it.  Newsflash – If you want people to think you are current and relevant, you have BE current and relevant.  The logo design comes later.  I can only guess that like a lot of other businesses, Gap considered up-dating the logo was a cheaper option than actually addressing the issue.  However, it might just turn out to have been a dam-site more costly in the long run.

What Gap have attempted is the retail equivalent of a comb-over.  But you can’t kid a customer and to try to do so can only have one outcome – loss of customer trust and your own credibility and integrity.

The cost of Gap’s error won’t just add up to the bill for the design work and signage, it will undoubtedly cost them customers who are right now questioning their relationship with the brand (brandship).  This represents a serious plight.  You don’t easily win back customers who feel betrayed.  Its certainly many times harder and more costly than acquiring customers in the first place.

My guess is that Gap lost their brand community a while back.  They failed to maintain the brandships their business was built on.  Remember, Gap was a ground breaker in retail brand building, so this is all the more sad.  A brand development initiative could have been just the ticket to re-engage its community.