Frost Bites >>>>>>

Lessons for marketers

Starbuzz is happening
Co-creativity culture with customers

Schultz is following in the footsteps of Michael Dell', who also returned to his troubled namesake, Dell a year earlier and launched IdeaStorm.com to gather and act on customers' ideas. Dell has implemented a score of suggestions, including the introduction of computers running Linux instead of Windows.

Both companies are building on the "Ideas" software platform from Salesforce.com which also has been using the platform to tap into what its customers want. "It's like a live focus group that never closes," says Salesforce CEO Marc Benioff. "Our product managers have to deliver highly ranked features and work with Ideas if they are going to succeed in our company."

"On the Shoulders" of Dell
Schultz intends to use Ideas to change his company—to instill what he calls "a seeing culture." Chris Bruzzo, Starbucks' chief technology officer, who oversees MyStarbucksIdea, adds: "It was also to open up a dialogue with customers and build up this muscle inside our company." He says Starbucks "stood on the shoulders" of Dell's experience—Dell himself shared his lessons with Schultz. The Starbucks chief added "idea partners"—48 specially trained employees who act as hosts of the discussion. Without them, Bruzzo argues, the conversation could intimidate newcomers. "These are the people at a dinner party who make sure everyone is having a good time."

The idea partners also act as advocates for customers' suggestions back at their departments, so that "customers would have a seat at the table when product decisions are being made," Bruzzo says. "To close that loop in an authentic way," he argues, the company must make a commitment to "building those ideas together with customers…. We're truly going to adopt it into our business process, into product development, experience development, and store design."

Idea partners also view the comments posted online as a laboratory. They push back on ideas, telling customers what has been tried and hasn't worked. For example, some customers want express lines for brewed coffee orders, as opposed to the half-caf, skinny, extra-foam pumpkin lattes that seem to take longer to order than to make or drink.

But the idea partner said that hasn't worked because of the layout of Starbucks stores. "If it fails," says Bruzzo, "our customers who are on MyStarbucksIdea ought to participate in being accountable for it." Whether an idea is accepted or not, customers get only the satisfaction of participating; there are no payments or other tangible rewards.

The company is still finding its way on the road to true transparency. In the discussion about those ideas for the Starbucks card, one of the idea partners wrote that he or she was working on some "secrets" in that area but couldn't talk about it yet. Well, if customers are truly going to have seats at the conference table, shouldn't those deliberations be collaborative and in the open? "I think it is changing and evolving our views of confidentiality and competitiveness," Bruzzo concedes. "There are advantages to having that kind of transparency because it creates more engagement, and we actually get to iterate on our solutions while we're building them."

You could say this is nothing but a fancy suggestion box. Benioff argues no. "The dead-end suggestion box and the auto reply are symbols of corporate indifference and are no longer tolerated," he says. In this age of nonstop, immediate communication in blogs, wikis, Twitter, and YouTube, he says, "your customers are having a conversation about your products and practices. The question every company has to ask is: 'Do I want to be part of this conversation? Do I want to learn from it? Am I willing to innovate on the basis of it?' "

Dell, Salesforce, and Starbucks each have parallel implementations of Ideas behind their corporate firewalls that are reserved for employees. There, too, they are batting around suggestions. On Starbucks' internal site, Bruzzo says, there's a "heated debate" going on now about "dress code and what does it mean to allow people to express themselves?"

Bruzzo advises other companies to follow Starbucks' example in using Ideas. "Don't underinvest in adopting it into your business process," he implores. "See it as an important part of how you run your business." He also says it's O.K. to make mistakes. "Your community is incredibly forgiving, actually, if you show a real interest in listening and responding."

Customers, it seems, can be great bosses.

Editor's Comment
Listening to customers' ideas and making them happen has to be a great way forward. Lego, the UK's eon power company, Dove's Campaign for Real Women, Campbell Soups and Honda have been engaged in user generated content exchanges for some time now. This has to be a great idea for dealers and direct marketers…especially those trying to create a personalised experience as Starbucks is trying to do.

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Yawn M&S

Rose rhetoric and admirable ads disguise tired retail experience

20 Jan 08

Newly knighted Sir Stuart Rose, CEO of Marks & Spencer recently announced disappointing sales trends for the final quarter of 2007 sending shares down 20% to the 400p+ level, close to Philip Green's hostile bid back in 2004.

Like-for-like sales for retailers over Q4 and the all important Christmas period have nearly all come through now. Comparisons and performance has been mixed, but by any measure M&S have been disappointing.

In food, Waitrose were 4% up, Tesco 3% up, and Sainsburys 3.7% up. In clothing, comparisons were John Lewis 4% up, Primark up 10%, and Debenhams  2.2% up. Next sales were down similar to M&S.

The autumn/pre Christmas TV ad campaign featuring the 'M&S models' enjoying the Orient Express experience were classy, nostalgic with some great looking winter fabrics and styles, beautifully photographed.

In reality however, this was an illusion. The M&S clothes have been described by women in market  interviews  as ordinary, cheaply made with  dowdy colours. The Autograph, Limited and Per Una ranges have lost their edge in originality. The shopping experience too is uncomfortable with little assistance available when needed. There appears to be nothing different and certainly the ads are misrepresentative.

Neither one thing nor the other?

In food, the specialist edge seems to be disappearing too. Increasingly, attempts to widen their range have been thwarted by space constraints. Meanwhile all the special differences have been replicated by Waitrose's wider and superior offering and shopping experience. M&S food stores are no longer a justifiable 'destination' shop and even Tesco's with their Finest offering and Sainsburys' 'Try something new today' campaign can at least match on quality and beat on range and experience.

"Why go to M&S?" There appears to be no compelling reason when the supermarket/hypermarkets can match and beat the specialist offering and provide the one stop shop  for the time poor working woman. Ironically, the expansion and ubiquity of the Simply M&S stores in the High St. and motorways may not have helped either. There is an obvious attraction in picking up higher quality snacks, salads and convenience meals from these stores on route to home or work. However, this may have limited the need for a visit to their main M&S food stores? They may have become stuck in the middle…neither one thing nor the other?

It may be that the M&S strategy needs a rethink. If they are going to be a specialist living up to the ad images they have created, they need to step up the standards…raise the bar in terms of product quality, matching the Zara dynamic  fashion and colour palettes…and enhance the shopping experience. Same style…more substance please.

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Greenwash now its 'Pinkwash'…everyone's at it

Rethink Pink…check out the purples and apple greens too

15 Oct 07

The whole 'green' movement has really started a band wagon effect over the past year. That's generally a good thing because whatever people's motives it means progress towards saving the earth.

Environment or green issues though, can create much confusion and misunderstanding. Most relate the subject to recycling or product from sustainable forests. That's OK but little attention has been focused on the real issues of cutting carbon and the eco-processes involved from sourcing through manufacturing through distribution to users and the collection/recycling of packaging.

'Green products' have been slow to take off because they have been priced at a premium. Customers have viewed the industry's attempts to be environmentally responsible as clumsy 'greenwash'. If we tackle the eco-processes involved then costs and carbon can be cut simultaneously. That's the way forward to genuine eco-friendly processes.

October has become laudably Breast Cancer Awareness month with the 'Pink Ribbon' the iconic symbol. That's a terrific cause and real progress in bringing to the attention the maximum number of users to contribute to a great and worthy cause.

Inevitably, there is a band wagon effect here too, where marketers are not making a contribution to the cause and simply riding the wave.

Moreover, there is misunderstanding and danger of stereotyping women  here too. The baby pink used for Breast Cancer month is not the most powerful colour to appeal to women going forward. The two most popular colours for women currently are apple green and purple with raspberry pink in third place.

Why don't the manufacturers of pens, files, Black'n'Red books, laptop bags, labelmakers, laptops and flash drives extend their ranges all the year round to the most fashionable colours in the way that 3M and Sony have done with their latino colours?

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Copycat Boots fails to match the Superdrug original

28 July 07

Boots have responded this summer to Superdrug Summer'06 with a very poor imitation, less a Beach Gorgeous campaign,  more like an ad with a booklet of pamphlets (or an online version) with product pushes.

Boots fail to engage

What a shame for brand partners that Boots fails to data capture, aside from an online competition there are no calls to participate. The plan's format doesn't promote revisit and the likelihood is that women leaf through it once and dash it in the recycling pile or never return to the online version. In contrast Superdrug Summer surrounded women with integrated media and the summer plan was delivered online, in direct coms, in features across the summer issues of Cosmopolitan & in store at point of purchase.

The Boots Beach Gorgeous plan fails to connect with women in an intelligent way, merely providing product pushes with copy that could have been syndicated from any magazine. Superdrug Summer delivered an integrated campaign that reached women at pivotal moment across the summer to really resonate by connecting with them at a time of need with the right products.

Boots, don't ask any questions

These moments were timely because the women themselves provided their summer schedule through holiday details they registered on the Superdrug Summer site. This underlines it's biggest failing, Boots provides all the answers but doesn't ask any questions; the consumer isn't involved or asked to participate it's just thrust upon them. Asking consumer to be involved creates a dialogue between the retailer, brands and the woman planning for that bikini moment. This campaign misses the mark with its task master beauty regime, and I mean regime… 7 steps closer to boot camp!

The team behind the Boots Beach Gorgeous plan would have been better informed if they actually spoke to women and tried to appreciate the realities of this feared moment of reveal. Women approach the summer with the best of intentions and mean to complete the 7 steps but the reality is they don't, they panic and buy all the products that they can get their hands on as their bikini moment approaches, therefore they want a quick fix solution not a directorate that frankly seems rather daunting and unachievable. Rather than empowering women to feel their best, Boots has unintentionally positioned itself as the Simon Cowell of the summer holiday.

The Superdrug Summer'06 campaign was designed by Tamara Gillan's SPF15 agency (speaker at Rethink Pink 2006 conference) required participation, it rewarded involvement with money off across the summer months, prize draws and relevant content at relevant times. All this was delivered to the consumer – to their inbox, to their home, to their mobile phone at a time when they were sub-consciously seeking inspiration.

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Giftshop: A bazaar experience

 "Making the hard to find ridiculously easy"

22 Mar 07

The website launched by Sophie Cornish (pic left) and Holly Tucker (pic right), in April 2006, offers a unique service by providing small British businesses with the opportunity to market their goods, whilst grouping together  specialist items for the wider public to purchase. Products on sale range from tea cosys to dog collars, meaning you are guaranteed to find the perfect present for your dog and the mother-in-law all from one site!

notonthehighstreet.com has attained rave reviews for its ability to display such a variety of products in an easily navigable way. The sub headings allow you to refine your search from 'Jewellery' to 'Food and Drink', whilst the inventive 'Gift Finder' enables you to find a present specific to your friend, relative or pet. However, though the layout of the website is easy to follow (if you have an idea of what you are looking for) the display can be far too busy.

The homepage for example has many small, 'bitty' aspects; it is lacking in bold, eye-catching items. The first time user finds them self swamped with 'Items you'll Love' as well as sale products, scented candles and pot plants. Perhaps the customer would be drawn to the special offers more if it was set in contrast to the rest of the main page.

I understand the 'sugar sweet' look notonthehighstreet.com is trying to achieve, in line with the nice buying experience the cute, 'one-off' products provide. Though could it possibly be trying too hard to be pretty and girly? The site is clean cut but the pastel colours are 'samey' and almost childish, not always in line with the fashionable items they sell.  

notonthehighstreet.com may maintain its tagline: "making the hard to find ridiculously easy" by enabling new product ideas to be bought in one place, but a rethink of their web design may make the whole experience more 'ridiculously' enjoyable. However overal, notonthehighstreet.com provides a high quality service with clever answers to birthday presents.

New Media Spark has acknowledged the success of the website by taking a one-third stake in the business. Cornish and Tucker plan to use these new funds to increase the number of products on the site and to boost its appeal overseas.

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Advertising Tipping Point?

Macho Business Week features new feminine focus

1 March 07

The latest edition of Business Week- 5 March 07,  I feel is a watershed in the life of the excellent #1 global business magazine. I couldn't believe it…I checked back on recent issues…nothing could match my discovery!

I counted the full ad pages…there were 25, 7 in our view were male focused, 7 were gender-neutral and 11 were aimed at women! At last, I thought marketers are starting to get it…women make the decisions so, let's construct the ads specifically with them in mind.

Now these leading brands were showing ads that will really resonate and empathise with women. Let's comment on the best examples:

• Lufthansa: A relaxed women passenger enjoying a comfortable flight
• SKF: Brain Power showing eco friendly wind turbines with young woman in foreground
• Canon Pixma all-in-one printer, featuring mother/kids in home office
• The Home Depot showing young girl with earth friendly lamp bulb
• Honda: featuring wispy clouds in blue skies symbolising higher average fuel economy

• Ecomagination from GE featuring an ocean scene promoting the need for more drinking water.
• Kyocera: featuring a woman at PC next to a low cost colour printer
• Avaya communications:'I'm Mary' a full time mom at a call centre..at home.
• Avaya communications: 'I'm Kate' a sales rep 'hearing' email on her cell phone.

Is this the start of new and welcome wave in proper marketing to women…a more caring world genuinely concerned and taking action to cut carbon emissions? Are we building closer communities…empathising and creating a more altruistic society paying  greater attention to others?

Women have shown greater interest in these issues and are the biggest influence in making things happen. The afore named marketers have it right…keep it up..start the new wave.

Learn more about the need for marketers to move their traditional masculine marketing campaigns towards the feminine focus that is required in the office market where women dominate the purchasing process.

Book now (click here) for the BREAKTHROUGH'07 Marketing Conference on 25 April at the fabulous Ricoh Arena, Coventry. www.proficiency2020.com

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Cull Call Centres
Return to humanisation beginning to happen?

4 Feb 07

Great news coming through recently re decisions by big banks and insurers beginning to try and re-humanise its service back to a more personal level. As readers know the culling of call centres is one of our primary crusades.

Now we learn that Norwich Union, one of the UK's largest insurers has performed a dramatic U-turn and switched some of its Indian call centre work back to the UK. A senior spokeswoman for the giant insurer admitted that it was forced into the move because workers in India "don't know what the customer is talking about".

The decision is an extraordinary admission of failure for one of the largest outsourcers in the financial services sector, which has been a cheerleader for the practice.

Research shows that few British customers are happy with overseas call centres…nor UK versions either. We feel the wholly impersonal, process of call centres, whether in the UK or overseas was done purely to achieve cost savings, not for customer service reasons. This backward step is now being realised as a major disadvantage and opportunity for smaller service providers.
 

There are two issues here. The first, is the irritatingly long wait whilst the service company goes through a tedious list of options before telling you that a "customer advisor will be with you in 3 minutes". The second, is the lack of flexibilty,knowledge and customer empathy of the customer advisor.

If a customers enquiry is simple e.g. checking a balance, then  human contact is not necessarily a requirement. But, if a customer has a genuine complaint, technical problem or needs special expertise or advice, then human contact is essential to them rather than the tedious wait…often for 5 minutes or more…before that happens. The quality of the advisor is crucial and this is where most service providers fail.

So bringing back the service is the first step. We await the second step, when the service can be localised again and becomes not only hi-tech e.g. speed but high touch…truly personalised service, just like the old days.
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Best and Worst of 2006
in marketing to women

By the Editors of Rethink Pink

26 Dec 06
We reflect on a positive year of developments in marketing to women. A number of trends have emerged or accelerated in pace during the year. Here we highlight some of the top trends, the best leaders, the best products, the best ad campaigns, the best books and the best ideas. We also highlight areas we were not impressed by and some dodgy decisions.

The Best Marketer – Steve Sharp, M&S

The impressive progress of Marks and Spencer (M&S) over the past year has been quite remarkable. Everything seems to have come up roses and yes Stuart Rose, the CEO appointed in May 2004, deserves tremendous credit for the turnaround.

Whilst we are sure that the substance of the service and  a great retail experience will follow it is the advertising campaigns which have made the difference. They are iconic in image, aspirational, almost natural portraying well dressed celebrity models. These superb ads have been copied widely by Debenhams, John Lewis and Matalan to lesser effect.

Credit for the highly successful 'Your M&S' advertising campaign goes to Steve Sharp, marketing director who came up with the line and with the celebs that have caused such a positive response from consumers. Steven, Kate Bostock and George Davis (the ex-Next/Asda partnership) were all in place pre the return of Stuart Rose and were creating what has been the best maerketing campaign for the past two years.

The campaign was further enhanced by the partnership with Breakthrough  Breast Cancer during Breast Cancer Awareness month in October. And again with the classy and attention grabbing Christmas ad  featuring the the top models and Shirley Bassey singing "Get this party started ".

Truly brilliant stuff!

Best Ad campaigns

·        Sheilas' Wheels insurance

·        GHD hair straighteners

·        Sony Bravia 'Balls' Colours

·        Flora

·        'The Evolution of Dove' Video Campaign for Real Beauty on fire (Latest News - 7 Nov 06)

·        'Your M&S' ads get better…and better…and better (Frost Bites – 24 Sep). Great ad campaigns 'spot-on' with today's women

Breast Cancer Awareness Month – October
 (See Think Pink - Latest News 1 Oct 06)

·        Sony PSP2 game console

·        GHD hair straightener

·        Dysan vacuum cleaner

·        Rowenta Iron

·        Laptop bags from Masters

·        Samsonite pink luggage

The Best Books

BOOMERS

• Boom by Mary Brown and Carol Orsborn, Imago creative – (Pink Tank 26 June)
• Prime Time women by Martha Barletta (Pink Tank – 11 Oct)
• Advertising to Baby Boomer – (See Comment 30 Sep)
• The Power of the Purse by Fara  Warner  

Younger Women

• Reach the Connected Generation
  'Mind your X and Y's' by Lisa Johnson. Launch of new book
   about 18-40 year old women. (Pink Tank 24 Sep)

The 12 Top Trends

1. Boomers

• Why older women are more attractive – (go to Pink Tank 7 Nov)
• Excerpt from BOOM (Book): Marketing to the Ultimate Power Consumer—The Baby Boomer Woman by Mary Brown and Carol Orsborn,AMACOM Books, 2006 (Pink Tank – 26 June)
• A Holistic Approach to Marketing
  to Baby Boomers By Karen Sokota (Pink Tank - 3 Sep 06)
• Boomers: A Web-Marketing Bonanza Only a few smart Internet sites have figured out how to appeal to a large constituency with money to burnBy Olga Kharif, Business Week (Comment - 30 Sep) http://www.businessweek.com/technology

2.  Customer Intimacy

The Touchpoint Test (Pink Tank 10 Sep 06)
Heightening the customer service experience
Start by appointing a specialist to address the basics…step-by-step
Should companies employ customer service experience directors? Marketers have been talking about the importance of brand and customer service experience for over 20 years now and research suggests that it is still rising up the agenda.

3.  Health and Wellness

• Trimming the fat from childhood obesity (Pink Tank - 28 July 06) by Bec Brideson, Principal, Venus Advertising

• 'Looking cute and cosmeceutical'. Is this the next thing on the nutrition mission? (14 Aug 06)
  
• Fabuless Satiety…the de-LiGhtFULL buzz (Pink Tank - 2 Oct 06)
  
• Organic tipping point. Evidence shows surge in people buying into the Organic diet. (Latest News – 27 July) 

• Booming ethical food trend