An Albert Einstein quote says it all when it comes to the relationship era in business, "Try not to become a man of success, but rather try to become a man of value.” Simply switch “man” to “brand.” The only way for organizations to achieve lasting success is to create authentic customer relationships. Not even all the money in the world spent on cool social media campaigns, viral videos, or the most micro-targeted online ads will do achieve this.
So what is the key to creating authentic customer relationships? Of course, a solid product or service is necessary to start. But in order to grow and remain relevant to customers, companies must demonstrate genuine behaviors, too. These include sincerity, transparency, shared values, and a noble mission beyond the bottom line.
Join our panel and us on this webinar to learn:
· How to discover and fulfill the bigger picture for your business.
· Why it’s important to have a purpose beyond the bottom line.
· Why customers connect with companies that are doing good.
· How employees benefit from purpose beyond profit.
4. #SMTLive
Our Speakers
Bob Garfield Tom Teicholz
Co-host of National Public Radio’s weekly Peabody
Award-winning magazine program “On the Media”
and the insanely popular Slate podcast “Lexicon
Valley.” His current book, co-authored with Doug Levy,
is Can’t Buy Me Like. It describes a new world of
Relationship Era commerce. @Bobosphere
Award winning journalist and producer who has
created print, video and social media content for
Intel, The Museum of Tolerance and The Milken
Family Foundation; and whose work has
appeared on The Huffington Post,
Newsweek.com, The NY Times Magazine, and
The LA Times Op-Ed page. @TomTeicholz
15. EDELMAN TRUST BAROMETER
What shapes your trust in a company?
How important are these factors to corporate reputation?
U.S. 2006 U.S. 2010
Quality products and services Transparent and honest practices
53%
Attentiveness to customer needs Company I can trust
47%
Strong financial performance High quality products or services
Fair pricing Communicates frequently
38%
A well-known brand Treats employees well
37%
Good employee relations Good corporate citizen
35%
Socially responsible Prices fairly
Visible CEO Innovator
23%
Dialogue with stakeholders Top leadership
Employee/CEO blogs Financial returns
12%
23%
33%
42%
48%
47%
45%
83%
83%
79%
75%
64%
58%
72%
24. To create a better everyday life
for the many.
Lenin?
“
“
25.
26. 6 a.m.
To create a better everyday life
for the many. “
“
“ Maximize shareholder value.
“
27.
28. We believe in the equality of the genders
and that all people should be able to pursue
their goals without fear. We believe that by
acting courageously, supporting others,
empathizing with their challenges, and
finding innovative solutions, we can help
women to be more fearless.
“
“
41. #SMTLive
Our Speakers
Bob Garfield Tom Teicholz
Co-host of National Public Radio’s weekly Peabody
Award-winning magazine program “On the Media”
and the insanely popular Slate podcast “Lexicon
Valley.” His current book, co-authored with Doug Levy,
is Can’t Buy Me Like. It describes a new world of
Relationship Era commerce. @Bobosphere
Award winning journalist and producer who has
created print, video and social media content for
Intel, The Museum of Tolerance and The Milken
Family Foundation; and whose work has
appeared on The Huffington Post,
Newsweek.com, The NY Times Magazine, and
The LA Times Op-Ed page. @TomTeicholz
43. #SMTLive
Upcoming Webinar
November 4th
What’s Next with Sentiment Analysis?
Panel: Frank Cotignola of Mondelez International, Cheryl Contee of Attentive.ly, Eric Forst of Tracx
Notas del editor
Thank you for being here. It’s nice to almost meet you. Apologies in advance if I upend your worldview or just kind of piss you off.
Now then, In 2014, marketers trying to flog goods and services by blanketing the world with advertising, trying to persuade or entertain or flatter consumers into submission, are doing things all wrong. Because the world has changed. A lot. The old ways belong to a faraway time, like, oh. I dunno…
The phone book, or….
No matter how important or immutable they once may have seemed, some things just go away -- and one of them, as you well know, is media and marketing mass. Whereas the industrial revolution changed the world by creating economies of scale, the digital revolution has decimated scale. Newspaper and magazine circulation is in freefall. And there is nobody in this room who can’t cite chapter and verse on the fragmentation in TV and the Incredible Shrinking Network Primetime.
The defining element of 300 years of mass marketing was reach, which is now ever more out of reach. But who knows that more than y’all. Sadly, in the spite of the obviousness of the obvious, whole industries and many of you continue to cling to the remnants of the status quo, even as your grip gets ever weaker. Because the digital revolution and societal shifts have brought us to a new period.
What has brought us here? The disintegration of mass is but one factor. Four major forces of society, technology and the economy have converged to alter forever the very nature of marketing.
Even as it was enabling infinite quantities of content, the Internet has torn down the ramparts separating the corridors of business power from the teeming hordes. Once, corporations and brands could operate behind nearly impregnable fortifications. Now there is hardly an event that takes place— especially an ugly one— that doesn’t become exposed to one and all, immediately and in perpetuity. There was a time when Apple could run sweatshops and Chick Fil A could donate to bigots and Progressive Insurance could screw policyholders entirely under the radar. No more.
Consider the 2011 derailment of China’s new magnetic-levitation train, killing 38 people. The government ordered the Chinese media not to cover the accident, and the media obliged— but cell phone pictures from the scene spread in social media and soon revealed that the authorities had brought in earth- moving equipment to literally bury the evidence.
If there is nowhere to hide in a police state it’s folly to think you can be opaque here. Which gets to Force Number 3: the rise in social connectivity. Nowadays, a brand’s news – good or bad -- becomes conversational currency worldwide.
For instance, you have most likely seen this.
That’s just an excerpt of Dave Carroll’s video, that was viewed north of 10 million times on YouTube alone – because everyone knew it was true. The corollary to that is, everybody knows the United advertising campaign is a lovely, uplifting, 25-year-old baldfaced lie.
Not that it’s bad advertising. If your goal is to shape image, you could scarcely choose better than Gershwin’s Rhapsody in Blue. It is lovely, majestic, utterly (ahem) uplifting – yet it still can’t hypnotize us into forgetting the surly, mistreated employees. Reduced services.. Pay-as-you-go food. Fees for bags and ticket changes and child escorts. Lost luggage. Broken guitars. Total ineptitude. Which is why everyone hates United Airlines. A quarter century of supposed perception-shaping at a cost of many billions of advertising dollars has earned them zilch.
Let’s look at a more recent example.
A year or so ago, Abercrombie & Fitch’s CEO was caught bragging about the absence in his stores of plus-size garments for women. Mike Jeffries said he doesn’t want his brand damaged by association with the kids who aren’t cool and attractive. I am delighted to report that Jeffries’ repulsive bullying strategy triggered an online backlash. This is the beginning of a YouTube video by Los Angeles filmmaker Greg Karber.
The video gets better. Karber goes around to thrift shops buying up used Abercrombie items and distributes them to homeless people on L.A. skid row, commencing a movement hashtagged Fitchthehomeless. What better way to demonstrate that, in the Relationship Era, you don’t get to dictate your image. The public forms that all by themselves – and your advertising isn’t much of an influence. What’s influential is your actual conduct, your values, your inner you. And therein the Fourth Force: Suddenly the public has taken a deep interest in the inner you.
According to the Edelman Trust Barometer, in 2006, in answering what was the standard of trust, the top response was “quality products and services.” By 2010, mere “quality” had dropped to number three. Number one – with 83% citing it – was “transparent and honest practices.” Sure, you have to have the goods….but, increasingly, the “goods” include integrity, trustworthiness, shared values and – of all things – a sense of brand purpose.
That truth was strikingly documented in the 2007 book Firms of Endearment. The authors selected 30 companies they deemed driven by purpose, as opposed to slavish devotion to quarterly earnings – companies which, less paradoxically than would meet the eye, in the authors’ judgment built shareholder value by not obsessing on shareholders.
Among them, Honda, Trader Joe’s, The Container Store, Southwest Airlines, eBay and more. Lo and behold, these Firms of Endearment outperform the rest of the corporate universe. Wildly outperform it.
On average, over a 15-year span, during which span the benchmark S&P average was up 118%, FOE companies grew 161%.
Why? Because – in a connected world – purpose and trust feed a virtuous circle of affinity, enthusiasm, recommendation and even activism. Brands that are admired for the totality of their activity simply perform better in the marketplace than brands that simply provide quality goods and services. At MEplusYOU, the Dallas agency headed by my co-author Doug Levy, this concept was documented vividly by a series of what they call Brand Sustainability Maps.
Get ready, folks. You know what’s coming up?
A 2x2 grid!
Charting customer “trust” as the Y axis and transactions as the X axis creates four quadrants. The lower left “Limited” quadrant is the province of the losers: struggling brands with flat or declining sales and commanded little respect of the customer.
To its right is the “Reluctant” quadrant, brands that command little respect and generate little emotion, but whose price or competitive advantage trumps the consumer’s misgivings.
The upper left quadrant, “Emotional,” is the home of brands that maintain respect in spite of quality issues, limited distribution, high price or other competitive disadvantages.
Finally there is Valhalla, the upper right-hand quadrant called “Sustainable.” Here’s what the Map looks like with some brands plotted in.
Now, ordinarily, here is where I show the same grid with brands plotted in. But that would embarrass some of you, ad we can’t have that, Anyway, let’s face it, you all know who fits where.
So instead, let’s try an experiment. Google the search term: “I love Zappos.”
Whoa! Almost two million unprompted expressions of devotion. Now then…..you now how many hits you get if you Google “I Love Dow Chemical Co.?”
Come on…how many?
Three.
Out of 7 billion human beings, three lonely souls declare their affection for the folks who brought you napalm and the clingiest Saran Wrap ever.
Just to put that into context: If you type “I love Satan….”
…..293,000 hits – or, by my math, about 98,000 times more beloved than Dow Chemical Co. – despite the multi-10s of million-dollar Human Element campaign and its multi-tens of million secondary campaign called Solutionism.
Because, once again, the public has many more sources than your self-serving advertising to make a judgment. And I don’t mean just customers and prospects. There are many other stakeholders: employees, neighbors, suppliers, governments, shareholders and the earth itself. It is the totality of those relationships that projects your corporate self. Nestle’s Pete Blackshaw famously wrote that “Customer service is the new media department.” But even Pete didn’t fully understand the new dynamics.
In a socially mediated world, wherein your every action or inaction is Google-able in perpetuity….
Look, advertising has been a magnificent economic force for close to 400 years, but it simply doesn’t work very well in a fragmented, socially mediated world. Apart from all its diminishing reach and credibility, it is simply unsustainable.
This is an immutable fact of the Relationship Era that some companies, like United Airlines, continue to learn the hard way while others simply knew in their bones from the moment of creation. Our book is filled with cringeworthy examples of companies with big ad budgets and wonderful slogans being sentenced to hard time by the court of public opinion. Bank of America, Texaco, the once-venerated Johnson & Johnson and the Susan G. Komen Race for the Cure. Yet others enjoy perennial growth and prosperity by simply being themselves.
Zappos does it through astonishing customer service, assisted by employees hired for their dedication and encouraged to cultivate their own personalities. Their manual is not a script or flow-chart but a List of 10 Core Values focusing on service, fun, open-mindedness, personal growth, honesty, humility and passion. By no means does a brand purpose have to be unique, or a statement of positioning, but in Zappos case they are one and the same. It’s slogan is Delivering Happiness. Here’s another statement of purpose you may or might not recognize.
It could be a revolutionary. Or a garden variety politician. Or an NGO. Or it could be freakin’ E-Z Pass. Again, a purpose needn’t unique or differentiating. It need only be overarching and true. This one, penned by Ingvar Kamprad about 60 years ago, to this day perfectly describes…
Every brand should distill precisely such a purpose, informing every single thing it does in the world with every single stakeholder. And, by the way, when the alarm goes off in the morning, which sentiment is more motivating to drag your sorry ass out of bed?
.
But okay. I know what you’re thinking: Yeah, Zappos, for the shoe-obsessed. Ikea: a world of lifestyle possibilities. I grant you those are inherently emotional bases for forging a purpose and building a relationship. But what about, say, consumer package goods. Try plumbing the depths of a deodorant, right? Try looking for inspiration in perspiration
In 2008, despite popular line extensions that had causes transitory growth and improved overall margins, the 50-year-old Secret brand was more or less flatline. This is where my co-author’s agency, MEplusYOU, got involved. They were aware of an internal exercise at Procter & Gamble that had forced every brand to develop a brand purpose. Secret had one that looked like this:
Nice. A little wordy. But encouraging female fearlessness. Nice.
But like most purpose documents at P&G, it just sat in a file folder somewhere – until MEplusYOU called Procter’s attention to the deplorable status of women’s ski jumping in the Winter Olympics. That is: there was none. For some reason, the IOC believed women to be unworthy. The agency knew of fledgling efforts to sanction women’s ski jumping as an Olympic event and suggested it was a perfect overlap with Secret’s purpose of encouraging female fearlessness. Thus “Let Her Jump” was born.
With a negligible media buy for online ads and a Facebook page featuring a video and a petition, the effort was launched..
Over the next six months, three things happened. First, more than 700,000 people viewed the video. Secondly, sales of Secret spiked like crazy. The Clinical Sport SKU up 85% during the Vancouver Olympics, and the entire Clinical line-up saw growth in the teens. Last fiscal year, the Clinical family grew nearly 20% in sales.”
Oh, and one other thing. Six months into the effort, the International Olympic Committee decided to include ski jumping for women in the 2014 Winter Games.
It wasn’t a campaign. It was a movement. And it wasn’t directed at an audience. It was shared with a community. If the Relationship Era in general is about anything – and social media in particular – it is sharing. Ladies and gentlemen, please say, “Awwwwwww……..”
Look they’re sharing! Isn’t that the cutest thing? The sort of thing that gets forwarded and tweeted and Liked, huh? Well, that reminds me of something. This adorable video has been viewed more than a million times.
Those boys happen to be my grandchildren. The dad squeaking in the background is my son-in-law. His sister happens to be in the video seeding business. When she saw a 5 minute version of this video, she wondered what would happen if she trimmed out the funniest part – the reveal – and sent it along to bloggers of various kinds. They loved it and posted it and before long it showed up on Yahoo!, BuzzFeed and a zillion other places, including the Ellen DeGeneres TV show. Not a penny was spent. It was just shared with people likely to take an interest.
The whole episode got me to thinking. What if a brand, instead of creating ads to espouse a positioning, simply cultivated its various constituencies by sharing relevant stuff just plucked off the Internet? Would it perform better or worse in terms of views and sharing and other metrics of engagement? And so, with Eduardo Tobon, the president of the cards division of Sovereign Bank, we devised the Tobon Test – an experiment comparing the efficacy of advertising versus curated, non-branded content. The experiment pitted the banks best ads against YouTube videos of US currency in stop-action animation, a cat playing with candy coins and this:
Why did this get viewed and shared more? Because the Chief Marketing Officer declared it the best expression of brand position? Because the media agency bought the perfect schedule? Because a Cannes Lions-winning ad agency crafted it at great expense? No, because it was about shopping, it was cute and it was simply appreciated by those the bank shared it with.
Ladies and gentlemen, you can buy expensive advertising, but you can’t buy love. You can’t even buy like. But you can earn it.
Now, before I wrap up. There are a couple of things I need to emphasize. I have lived on this earth long enough to know that some executives will sit through a presentation like this and leap immediately into action…by calling the head of p.r. to come up with a good purposey-sounding slogan to slap on the web page and annual report. Ladies and gentlemen, you can’t fake authenticity. Hyping dubious humanity credentials is like lying to your psychoanalyst. It’s a pointless exercise.
For instance, you know who this belongs to?
Yeah, that’s Philip Morris. Here’s another: “Integrity. Communication. Respect. Excellence.” Any guesses? Duh….
Enron. In the internet age, there is no use trying to peddle that baloney. Nobody believes you. Nobody believes your phony slogans, or your meaningless Corporate Social Responsibility Claims, or your market-share boosters disguised as philanthropy. Giving money to sick kids for every diaper sold isn’t charity: it is sales promotion, and often repulsively exploitative. Which critics will nail you on in an online minute
So, yeah, file that in the list of “don’ts.” For the “do’s” of the Relationship Era, let me just recap.
Stop shouting, because nobody’s listening to you. They’re listening to one another talk about you.
Treat your customers well, but do exactly the same for your employees, suppliers and neighbors.
.Bedding plants are nice, but they have to be purchased and planted every year. So why not try a perennial? Take care of it and it will flower beautifully every year. Take care of it and it will flower beautifully every year.
And, yes, the azalea is a metaphor for sustained profitability.
Finally, I leave you this. People often ask me to distill the entirety of a book into one idea. I’m not a big fan of reductiveness, but I’ve given this a lot of thought, and taken my own advice to distill the thing to its essence. So here goes.
What it all comes down to, ladies and gentlemen, in business and in life, just….