Archive for the ‘Branding’ Tag

Five in the Morning

number-fiveA few months back, Steve “aggregator-in-chief” Woodruff started a daily blog series called “Five in the Morning”.  Through the series, Steve shares recent posts and news items from his feed reader that he finds interesting.  Wednesday night, Steve and I got together to talk shop and to enjoy some award-winning, Bobby Flay-slaying BBQ ribs. Somewhere between the 13th and 17th napkin,  Steve mentioned that he wanted to franchise the Five in the Morning series to cast a wider net around the great content available out there.  When he asked if I wanted to give it a shot this week, I said sure.

So without further adieu, here are five posts that I think you’ll find interesting….

  • Forrester’s Bruce Temkin discusses the just released 2008 Customer Experience Index.  As usual, industries with the least amount of competition clock in with the lowest customer experience scores.  That includes Comcast whose overall index dropped a whopping 12 points since last year despite its ComcastCares efforts. Also, the post includes a link where you can download the complete Forrester report for free.
  • The guys over at MyCreativeTeam explain why an old burglar with a reindeer fetish has such a strong brand.
  • Social media consultant Matt J McDonald tells us that “Blogging is hard work” plus 15 other Simple Social Media Truths.  By the way, some believe Matt and American Idol David Cook were Separated at Birth (Go ahead, click the link.  You know you want to).
  • Crayonista Adam Broitman outlines three creative interactive marketing strategies that invoke consumers to talk to other consumers about brands, with minimal interference from the brand itself.  Note: the post starts on Adam’s blog but continues at iMediaConnection.
  • Last but not least, Amber Naslund picks up on posts from a few other bloggers and makes a great case for looking at old tools through new lenses.

Can User Generated Content Hurt Your Brand?

Folks in social media circles like to talk about the value using customers as brand ambassadors who advocate for the brand through social media. Of course, armed with a video camera and an internet connection, people don’t need to be asked by brands to be ambassadors. Remember Nick Haley’s iPod Touch ad? The really passionate ones just do it. When it comes out as good as Nick’s did, the brand can’t help but be happy. But what if your passionate customers create something that really doesn’t represent your brand in a helpful way. What if it’s so “cheesy” that it starts getting some serious YouTube traction. Is this kind of free advertising,”good” advertising?

Chris Abraham pointed this one out on his blog today. The person that made this video (and I assume composed the song) is clearly passionate about Hillary Clinton. I wonder if this is the kind of brand ambassador Hillary is looking for.

Is soon as the title of this post hit Twitter, I received a couple of comments suggesting that UGC won’t hurt your brand if you properly supervise it’s creation.  That’s great if you are in-charge, but that’s not what I’m talking about here.  There is no way to supervise or manage this.  You can only respond to it (or not).

So how does user generated content like this affect a brand. Is it helpful? Can it be detrimental? If it happens to you, how will you respond?

Discuss!

Your Brand is Defined by the Customer Experience, Not the Slogan

simplicity-guaranteed.jpg

When the 2007 holiday season kicked off a little over a month ago, US-based electronics retailer Circuit City introduced a series of TV commercials focusing on the simplicity of the digital lifestyle. With the ads, Circuit City introduces their latest moniker “Simplicity Guaranteed“. According to Circuit City’s Chief Marketing Officer, the new spots “illustrate how Circuit City makes it simple to Shop (on-line), Buy (in-store) and Enjoy (firedog services) your digital lifestyle this holiday season and beyond”. ”Simplicity Guaranteed” is the latest in a series catch phrases used by the retailer over the last few years. Previous slogans have included “Imagine That” (2000-2001), “We’re with You” (2001-2004), “Just What I Needed” (2004-April 2007) and “Circuit City Makes it Simple” (2005 Christmas Season)

All of these past slogans describe brand perceptions that Circuit City aspired to but failed to achieve. Why? Because a company’s brand is not defined by its catch phrase, logo, aesthetic style or culture. A company’s brand is ultimately defined by the experience they deliver to their customers and Circuit City has been unable to consistently deliver experiences that supported those brand promises.

The latest revival of the Simplicity theme is part of a larger strategic framework that I helped develop for Circuit City a few years ago (you can hear about it here). Making it Easy for customers to shop, buy and enjoy is one of the four key ingredients to the vision my team proposed. We also recognized that delivering experiences consistently supported the “Make it Easy” idea would require significant changes in processes, culture and internal success measurements. Almost two years after those recommendations were made, Circuit City has “re-branded” many of the same operational features that they have been touting for years with the “Simplicity Guaranteed” label, but has not done any of the heavy lifting required to support the long-term strategic vision of sustainable growth through exception customer experiences.

Marketing strategist Scott Glatstein suggests five steps for building a strong brand and optimizing customer experience:

  1. Identify your reasons to believe.
  2. Identify customer touchpoints.
  3. Determine the most influential touchpoints
  4. Design the optimal experience
  5. Align the organization to consistently deliver the optimal experience

Reasons to believe are those things that the customer experiences that support the brand promise. Circuit City has decided that Simplicity is one of their reasons to believe, but they have not executed any of the other steps suggested by Glatstein. Without those crucial components, the customer experience can easily fall short of the brand promise. Here’s an example:

nano.jpgOn Christmas Eve, we decided to purchase an iPod for a relative. In the weekend tab, Circuit City was advertising a free $15 iTunes card with purchase of a Nano priced at 149.99. Electing buy on-line and pickup in the store (A feature that usually does live up to the Simplicity promise) we went to the web to place the order. We were surprised and delighted to see the web price of $142.49, but noticed that there was no mention of the free iTunes card on the web. Here is the first indication of a problem. The tab touchpoint and the web touchpoint are not aligned in terms of the offer. This generates confusion and apprehension for the customer.

nano2.jpg

We made the purchase and left, with tab in hand, for the local store. When we arrived, the iPod was waiting for us as promised, but there was no $15 iTunes card. Our concerns about the conflicting offers are validated and we are now entering confrontation zone.

We showed the tab to the customer service associate who wasn’t sure how to deal with the situation. Someone else was brought over to correct the problem. He suggested to “return” the web order and resell it to get the iTunes deal. The CSA did that, but in doing so, the price went back to the advertised price of $149.99. The CSA called the assistant back and the process of “fixing the order” began. At one point, we were told that we owed another $0.70. At another we were going to get $).09 back. Clearly, the front line associates; the ones that come face-to-face with the customers every day, are not prepared to deal with this problem. The processes have not been optimized to deliver a great experience.

With the line backing up behind us, the CSA team finally found a way to make deliver the transaction with the free iTunes card at the price advertised on the website. The total in-store transaction time was over 20 minutes. Our expectations were not met and the other customers in line behind us got to share our experience as well.

So did Circuit City satisfy their 24/24 guarantee. Technically, yes as the web order was ready in less than 24 minutes. Did the experience reflect “easy to shop, easy to buy”? Absolutely not! Circuit City has not identified and evaluated all of their touchpoints against the “Simplicity Guaranteed” reason to believe. They have not designed optimal customer experiences that include these touchpoints, and they have not aligned the various channels and business functions to deliver an optimal experience. This may sound like an isolated incident, but it is not. Where else is dealing with Circuit City not Simple? How about rebates, scheduling an in-home service or getting a product repaired under warranty if you didn’t buy the extended service plan?

Circuit City was once a retail powerhouse. They practically invented the “Specialty Superstore” concept. Today they are struggling to remain relevant in what has become a commodity market. They have to compete with mass marketers like Wal-Mart and Costco who can price aggressively, niche players like Gamestop and Verizon who can beat them at the “authenticity” game and web marketers like Amazon and eBay who can always deliver a better selection and competitive prices. At $4.62, their stock price is trading a 52-week low and is flirting with a 5-year low. Circuit City will have to find a way to build a truly differentiated brand if they are going to survive. Simply adopting a new slogan that says you “make it easy for me” isn’t going to cut it. They must also consistently deliver a customer experience that supports the claim. Without that, the slogan only serves to set expectations that won’t be met and further erode the brand.

Many of you may have shopped Circuit City in the past couple of months. I would love to hear about your experiences and your ideas regarding how Circuit City could improve the customer experience.

  • Recognition

    Alltop, all the cool kids (and me)

    Top Customer Service Blog
    Online MBA Rankings
  • Recent Comments

    Customer Code of Con… on How to Poorly Represent for Yo…
    media player classic on $2000 a Year
    SEO Tips on $2000 a Year
    trim.ws on $2000 a Year
  • Top 10 Posts

  • Amazon Apple Best Buy Blogging Brand Engagement Brand Management Circuit City Co-Creation Content Conversations Customer Experience Customer Made Digital Home Disruption Entertainment Experience Economy Gaming Generation C (ontent) Global Connectivity Greatest Hits Innovation Lifestyle & Leisure Loyalty Marketing & Advertising Microsoft MP3 orthodoxies Power to the Pocket Retail Retail Close to the Customer SecondLife Sensors Services Simplicity Social Media Social Networks Sony Techno Wars Telecom The New Media This Changes Everything Uncategorized Virtual Life Wi-Life Youth
  • RSS Archive Favorites

  • Where Are You?

    Locations of visitors to this page
  • Archives

  • Next-Up