Archive for the ‘Retailers’ Category

Nordstrom Email Gets It Right

Wednesday, March 9th, 2011

A little more than two years ago, I wrote an open letter to Banana Republic in this blog. I asked the company to please stop sending me emails for women’s clothing, and instead only send me notices about gear for men. I also hoped for something more meaningful than the constant reminders of items for sale—perhaps “fashion tips and suggestions” for an almost 40-something guy with little sense of style?

Alas, there was no answer to my call, and the company continued to spam me with what even a basic database lookup would confirm as irrelevant. I finally unsubscribed from the email and now I rarely go into a Banana Republic store. But today, dear reader, my belief in the goodness of retail marketers is renewed—as Nordstrom sent me this very meaningful email.

I don’t recall signing up for a Nordstrom email, but when it started arriving in my inbox, I was willing to give it a chance. I was immediately impressed that the company only sent me information about men’s clothing. Shocking, I know, because Nordstrom sells so many other types of items, and virtually every other retailer has failed to discriminate in its approach. Nordstrom’s email made a positive first impression, and I kept the relationship going.

Naturally, upon seeing offers for men like me, I started to open the emails. And today I was blown away to see not just a list of what’s on sale this week, but rather a message that felt like real-life content:

“The Basics of Business Casual” is an interesting topic; many of us struggle a bit to figure out what the best office look is in a world far beyond the suit and tie. And I was so surprised and delighted to see content instead of a sales push that I clicked on the “Men’s Style Guide.” Suddenly, I was at Nordstrom.com and learning about some of the “rules” to look good by. I learned that one should keep at least one button buttoned on a polo shirt, and that plaid works great with no suit or tie required. I know; it’s probably basics to you female readers, but give us guys a break. Some of the suggestions came from actual Nordstrom employees. I could tell because they included their corporate email addresses.

Suddenly, I found a shirt that I liked and discovered a discrete link to purchase it. I then noticed that there was free shipping with a $200 order so I went ahead and picked up a few more items to take advantage of the offer. I checked out with a smile and went back to whatever I was doing before, looking forward to my new clothes and happy that Nordstrom was helping me stay stylish.

Sure, I’m a focus group of one, but a sale is a sale, and meaning is meaning. In the battle for my wallet, Banana Republic loses, and Nordstrom wins. Not just today, but likely for years to come. I imagine this is rippling across quite a few other email inboxes of men like me.

It didn’t take much for Nordstrom to develop this content, just a few suggestions and pages. Just enough to make it feel like they care about how I look, rather than just closing a sale. Interestingly, this “novel” approach happens to come from a company that is well-known for its service. It just goes to show that a meaningful marketing strategy can work everywhere from the retail floor to the Gmail inbox.

This is actually the topic of my 60-second speech in the upcoming Future of Marketing 2 event, which will focus on “Technology-Driven Personalization.” My point is that consumers are increasingly expecting your business to use their data (which they know you have) to make their experience better. Those businesses that choose not to personalize will not only fail to get their email read, but will lose customers for life. And competitors like Nordstrom that respect their customers will pick up the revenue and loyalty.

A Costco Story That Wasn’t… But Still a Good Idea

Thursday, May 13th, 2010

Way back in September 2009 I was asked to comment on a story about a new program that Costco was testing in a handful of stores as a benefit to its small-business shoppers and general members. Oddly, the story never appeared and I cannot find anything about the program anywhere. I’ve been holding onto my notes about this program since then, and I think it is still a story worth sharing—maybe a free idea for your large or small business to take and run with.

The idea Costco was apparently testing was a coupon book that includes offers for the services of its business customers. For a small fee, these businesses could include coupons and offers in a book that would go to all Costco members. This was an attempt to secure a win-win-win by giving small business customers (the heaviest spenders at Costco) a leg up in a tough economy, provide all customers with an additional benefit of being a member, and allow Costco to retain and add members.

I believe this was a brilliant move by Costco, and one that started because the company saw an opportunity to help its business customers on their higher-level needs. An increasing number of companies such as Costco are starting to look for new ways to add value aside from just stacking stuff high and selling it cheap.

The mission statement of Costco is: “To continually provide our members with quality goods and services at the lowest possible prices.” When I worked at Procter & Gamble in marketing, I had opportunities to meet with buyers from Costco. I quickly learned that everyone at the company is completely focused on bringing value to its members. This has traditionally been through better deals, lower prices, and stable margins. But in this case Costco is wisely delivering value to members in a new way. Here, the company saw an opportunity to “deliver members quality services” by providing a forum for marketing between members. Because of the company’s mission, it came up with this idea first.

There are several benefits to such a program. First, it is a free service for members at a time when a challenging economy is taking a toll. By helping customers through these tough times, Costco will earn loyalty for years. Second, Costco’s success is completely tied to the success of its core small-business owners; if they do well, Costco will experience higher revenues, too. Third, Costco would win a great deal of positive buzz by being the first to embrace this idea. I think this compares well to the Hyundai Assurance Program, in which this small car brand broke through by being the first to buy back vehicles of those who lost their jobs. This program won huge sales during a down market.

But the big question is: Why haven’t we seen Costco launch this program nationally? This is hard to say. Retailers test things all the time, and often have trouble taking programs beyond a handful of stores. Other ideas might have had priority, or organizational politics might have gotten in the way. I imagine that there are a number of real challenges, too. Costco would have to hire people to process the customers’ ads and coupons, and it would have to pay to print and distribute the booklets. It would also take time to drive awareness of this program among its business customers.

Nevertheless, this is clearly an example of Marketing with Meaning, and there might be other businesses that could take this Costco idea and adapt it for success. For example, a major bank has hundreds of business customers that it could bring together to market their products and services to each other. Business-focused law firms and accountants could host networking sessions for their clients to join up. Perhaps the greatest thing about an idea like this is that it is relatively easy to test. And even if you fail to get a critical mass, your best customers will appreciate your desire to help them succeed.

Bounty Experiments in Brand Experience

Thursday, April 1st, 2010

bounty mess outside

On Tuesday I shared the story of my visit to the American Girl Store during a Spring Break trip with my daughters to Chicago. It is one of the longest-running and most-successful examples of meaningful-marketing experiences. While I was in the area, my girls and I also had a chance to check out one of the newest examples of a brand experience—the Bounty Make-a-Messterpiece. This new concept aims to give kids a place to learn, play, and create—without worrying about messing up the house. And while it’s too soon to say that these will be sweeping the nation, it’s a brilliant way for a brand to test out its purpose and to learn by doing.

(Full disclosure: Bounty is a client of ours and I am definitely biased in my reporting here, so please take this more as a personal example than a deep analysis.)

Located in one of those new kinds of outdoor malls in the northwest suburbs of Chicago, the Make-a-Messterpiece concept offers a place for parents (I was the only dad there, even during their Spring Break) to bring kids for an hour or two. Upon walking in you notice a large, open, and friendly space with several sections of specific activities. Parents pay $10 for their children to enter and get access to some of the basic art centers, and there is an additional $5 cost for a special-project area. This seemed like a smart pricing idea, as it provides options for multiple budgets and time availabilities, and gives kids a chance to choose.

I let each of my daughters choose an activity for both of them to do. First, they did “The Drum Roll”—which is essentially a special room with piped-in music where they banged on drums filled with paint. No art was created, but they had a blast. Next they painted pictures in the open workspace in the center of the room. Finally they finished with a project in which they made bird feeders using old Bounty paper towel rolls, honey (for glue), and birdseed. I was happy that the instructor for this project taught them a few facts about birds along the way.

My kids had a great time. They came away with paintings, bird feeders, and some nice memories of the experience. It was something they said they would like to go to again some time. (We’ll need one to open in Cincinnati, though.) From a parent’s perspective, I liked the chance to disconnect from the real world with them for an hour, and I felt much better about bringing them to this option rather than something like Chuck E. Cheese’s. The staff was all young, smiling, helpful, and smart—basically like a group of the world’s best babysitters.

As a marketer, I liked the Bounty Make-a-Messterpiece for a few reasons. Overall, it is a way for the brand to truly bring its Brand Purpose to life. Bounty’s purpose of a brand is to encourage families to “go for it”—to have fun, tackle projects, and basically enjoy life together without worrying about the messes and spills that freak us parents out far too much. What I love about this is that as a parent it completely resonates with what I have come to discover about myself as a parent. We all have these moments when your child, say, asks if she can make the peanut butter sandwich for lunch. Your first thought is how it will turn into a mess and it would be easier for you to just make it. But then something clicks, and you realize that she needs to learn, she wants to learn, and you’ve got plenty of Bounty on hand to clean up the mess. That’s why you work hard for the money to afford quality paper towels. And you go for it.

In creating this actual experiential business, the Bounty team has a chance to take its brand purpose to the next level. Instead of watching parents and kids in focus groups, the team can take a road trip to see real families engaging with a real experience that the brand has created. For a marketer, there is nothing more important than seeing how your brand can directly impact people’s lives.

Of course this was very effective marketing for Bounty as well. The brand is seen as enabling this clever idea and fun activity. There are plenty of Bounty cleanup stations throughout the facility. And the premium feel of the experience ensures that Bounty has a premium reputation for all who enter the facility.

I can’t say if this store is turning a profit or whether we can expect to see dozens of them opening up in a city near you. But I can say that my family had a great time and will treasure our time at Make-a-Messterpiece. And I give tremendous credit to the Bounty brand team and its experience agency, Gigunda, who took risks to turn this idea into reality.

Here are some additional fun photos from our trip:

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American Girl Store Masters Experience Marketing

Tuesday, March 30th, 2010

american girl cafe

Last week my daughters were out of school for Spring Break, and because my wife was working hard on renovating a house we purchased and I’ve been away from home a lot, I decided to take my girls on a Daddy-Daughter road trip to Chicago for a few days. Of course many of you know by now that Girls + Chicago = American Girl Store. It’s a rite of passage for many parents and daughters to trek to this doll mecca. For me, it was a chance to not only get some quality time with my girls, but also an opportunity to check out a marketing destination that I originally read about years ago in the book The Experience Economy. I can say that all of our high expectations were met or exceeded.

We stepped into the store just after its 9 a.m. opening last Thursday, which gave us the chance to roam around with few other people. The store is set up a bit like a museum, with areas for each of the specific American Girls that are currently being sold. For those who are unaware, the dolls take on personalities of everyday people from specific dates and times in American history, ranging from New Mexico in the 1820s to Colorado in the 1970s. Each doll has a specific station with a look and feel of this time in history, and of course boxes of clothing and other accessories available for purchase.

In addition to these shopping zones, the store had several opportunities to create an experience. We first stopped at a photo booth where each of my daughters got pictures with their dolls that were turned into actual magazine covers. Unlike the annual school-photo rite of passage, it wasn’t hard to get them to smile for these pictures. We also strolled by a hairdressing station where you could get your doll’s hair de-tangled and braided (among many other style options). Another mini-store offered the chance to design a T-shirt for your doll. And there was also a clinic for doll repairs.

But the highlight of the trip was our lunch in the American Girl Cafe. As you can see from the photo above, it was a very cute (very pink) affair in which the dolls were given special chairs to join us at the table. The lunch consisted of several small courses of family-friendly food. Our waiter was extremely nice and made the meal even more fun. There were nice touches such as a box of questions to encourage conversation, such as, “What is the biggest dream you have?” And although I was just about the only solo-flying father in the building, I felt very comfortable—and left very full.

In The Next Evolution of Marketing I include a sub-chapter in which I describe the power of creating experiences such as this. One study I cite shows that happiness created by experiences lasts much longer than what comes from mere products. In the case of my daughters, our trip to the American Girl store got them more interested in their dolls before, during, and after our trip. I wouldn’t be surprised to see several AG-related items on their Christmas lists this year. So turning a store into an experience is clearly a marketing strategy that is working for the brand. But this marketing experience is a significant revenue driver as well. Between the meals, photos, and one additional item each, I think I dropped at least $300.

And for this dad, $300 was a small price to pay for an experience that I will remember and cherish for the rest of my life.

Starbucks Stores Sharing Improvement Plans

Monday, December 14th, 2009

starbucks service photo

Here at Bridge Worldwide, all 260 (and growing) employees are preparing to go through our annual evaluation process and work-plan development for the year ahead. Our belief is that it is important to regularly review how each employee is doing and assess individuals’ strengths and opportunity areas. On the latter, we’re big believers in having open and honest conversations about what people need to improve on, and managers help direct reports create action plans to tackle them. While it can sometimes be a tough conversation to have, we strongly believe this is a reason we have such great employees and have been named one of the Best Small Businesses to Work For in America four years in a row. So I found it interesting to see that Starbucks stores seem to be taking the same approach.

Our President, Jay, sent me this photograph he took during a recent trip to a local Starbucks here in Cincinnati. As you can see, the store is proudly sharing what opportunity areas it is working on this month. It seems to be based on feedback that they have gotten from store visitors, and alternates every month.

There are several things I love about this big idea. First, it shows visitors that the store is listening and actually thankful for the feedback. Second, because it is handwritten and changes every month, visitors can tell that this is not just some big corporate B.S., but rather that the specific store cares and is listening. Third, by writing its opportunity area publicly, Starbucks effectively opens up the dialogue with its customers. I believe people will start giving more open and honest feedback to store employees, which in turn will make them even better.

Finally, this is a tremendous tool for educating and reminding store employees what is important for them to focus on. When they walk in to start working at 5:30 a.m., they are greeted with this same sign—a very vivid reminder of what each individual should focus on.

When he shared this photo, Jay suggested that this goes even further by allowing customers to feel like they are shaping the brand and experience—and that this helps reinforce Starbucks strategy as “the third place” people spend significant time in. After all, if it’s really your space, then you need to have a say in how it appears and functions, just like home and the office.

My buddy Pete Blackshaw recently pointed out that Starbucks claims it has implemented 50 customer suggestions that have come from its MyStarbucksIdea site. Pete literally wrote the book on how to turn great customer service into marketing, and Starbucks hits it out of the park here.

This is a great reminder that Marketing with Meaning works best when you make it personal, in-store, and face to face with the customers who hand you their money every day.

Kroger Shows Loyalty to Customers (from #DHI09)

Wednesday, September 30th, 2009

Kroger mymagazine

One of most exciting things about the DHI Non-conference last week here in Cincinnati was a session by The Kroger Company, one of our clients at Bridge Worldwide. Through its various banner stores, Kroger is a major player in the retail food business, capturing 10 cents of every dollar spent on food in the United States. The company is not secretive, but it doesn’t go around regularly beating its chest about how it is winning in a very competitive market. In a session titled “Innovation and How to Meet New Expectations for Media Delivery,” RW (Kirk) Douthit and Angie Rose from Kroger shared several nuggets about how they are working to evolve to digital marketing by putting their customers in the center.

The main focus of the discussion revolved around Kroger’s work with its database marketing partner, dunnhumby, to provide personalized messages and offers to its loyalty cardholders. The company has the second-largest database in the U.S., after the Census Bureau. Kirk kicked off the discussion by reframing how Kroger thinks about the loyalty program:

“It’s not about customers’ loyalty to us; it’s about Kroger’s loyalty to its customers.”

This message permeated everything in the company’s session. Kirk and Angie spoke about the company’s use of quarterly coupon magazines (such as the one pictured above) that are personalized for its top shoppers based on their purchase habits. This helps the company drive sales of new products and larger baskets sizes from the 20% of customers who drive up to 60% of total sales.

The Kroger team spoke about how it is gradually embracing digital tools where it makes sense for its customers. They admitted that progress is slower than some customers want, but that it takes time to get things right. And while some shoppers are ready for innovations such as mobile coupons and online circulars, the company still has to provide mailed offers for the many who are not living in the digital future yet.

One of the really interesting digital services that Kroger is planning to release soon is the chance to pull up your Kroger shopping history. It’s a way of giving people a digital receipt and something unheard of in the industry to date. This could help people, say, track their spending on pharmaceuticals over the course of the year so that they can be properly charged back against flexible healthcare spending accounts. It’s a great example of how customers can see additional benefit from using their Kroger loyalty cards.

Finally, I also appreciated the Kroger team’s willingness to share how the decline of traditional media is happening faster than digital is ramping up. For example, a staple marketing tool for decades has been the daily newspaper. When sales needed a boost, Kroger has frequently used newspaper ads to drive traffic to stores on specials. But the decline of newspaper subscriptions is seriously weakening the impact of these ads, and there is no digital solution with the same scale impact. It’s another example Bob Garfield’s The Chaos Scenario come to life.

The entire audience really enjoyed Kirk and Angie’s open and honest communication about the opportunities and challenges in digital marketing. By better understanding their world, those of us who serve them can do much more to help Kroger crack the code.

Best Buy Plays a Meaningful Note with Instruments

Wednesday, September 23rd, 2009

best buy pandora

In my final post of takeaways from last week’s iMedia Brand Summit I wanted to give props to a competitor who I admire, Clark Kokich, Chairman of Razorfish. Clark got the second day of the conference started by asking the room to think less about digital tactics and more about marketing strategy. He shared a handful of examples of work that brands are doing that start with big, strategic ideas that happen to lead to some killer digital work. For example, the Nike Human Race 10k, and Fiat’s new tool that allows people to upload information about how their driving is impacting CO2 emissions. But my favorite example, and something I just had to share here, is that of Razorfish’s work with Best Buy in selling musical instruments. This story shows how getting into a new product category is a great way to launch with meaningful marketing at the center.

Business Challenge

Just a little more than a year ago Best Buy first announced it was getting into the musical instrument business after a successful pilot in a handful of stores. This seems like a no-brainer. After all, Best Buy has one of the largest selections of music and music equipment, and its vast stores certainly have enough room for some instruments. According to Kokich, “They could have just run ads telling people that Best Buy now sells instruments.” But the reality is that this is not a big market, and it is currently dominated by specialty retailers such as Guitar Center. So the challenge for Best Buy was: How can we stand out in an existing market that needs a lot more buyers?

Insight

Best Buy saw huge untapped potential among adults who always wanted to learn how to play an instrument. The rise of games such as Guitar Hero and Rock Band showed the potential.  But the biggest barrier is that many people are afraid and intimidated. People who work at guitar stores are mostly “stoners… who resent you for being able to buy the instruments that they cannot afford.”  So many potential buyers hate even going into the leading instrument stores.

Solution

Best Buy’s strategy was to “become a partner in helping you rediscover your love for music.” And by starting with this overall, customer-focused strategy, it was clear that just running a 30-second ad wouldn’t work.  The company started with the purchase point, and created a “store within a store” with trained musical instrument specialists. Each store also offers group and individual lessons. In terms of marketing support, digital has a leading position. Barry Judge, Best Buy’s CMO said this about the company’s approach:

“Our musical instruments department (in about 100 stores nationwide) is all about experience. Everything is plugged in and ready to play. The staff is friendly, knowledgeable, and approachable. We carry professional-grade gear from brands like Fender, Marshall, Roland, Yamaha, and Drum Workshop. We are working on building awareness of our musical instruments department, but more importantly, building credibility and authenticity. We hope to inspire people.

Digital allows us to connect with our customers in new and exciting ways, and our digital experience is meant to tap into that potential. Later this summer, we want our customers to create “dream rigs” from our inventory and share them with their friends on the social platforms they use.  We will be using the power of digital to let our employees, musicians from communities around the country, and our customers share their passion for music and their insights. Instead of just telling people that we have these great instruments, we want to show them, and help them experience them in the digital space in unique ways that go beyond catalogs of products.”

Kokich described how his team is inspired by the call to “become a partner in helping people rediscover their love for music.”  One example is a unique advertising effort with Pandora. Again, instead of just skinning Pandora with big ads for Best Buy, the company created a unique ad (above) that actually shows what instruments are being played in each song. (On a side note, I can’t find that tool anywhere at Pandora–what a lost opportunity!) He shared some glimpses of work in progress including Facebook tools to help people form a band and ways for people to build an interactive wish list. This should be an exciting space to watch in the months ahead.

Results/Conclusion

It is too early to call this a success, as Best Buy has only just begun supporting this effort in earnest. Of course, I welcome any comments from Barry Judge (@bestbuycmo). But the real lesson here is that a new marketing strategy is a great opportunity to rethink your approach to marketing–and make it meaningful from day 1.

BONUS: Kokich on Client Organizations

One of the biggest challenge of shifting to a meaningful marketing model is the existing organizational behavior of clients. As our boss, Sir Martin Sorrell said at the P&G Global Alumni Reunion back in June, “The amount of time we see our clients wasting on bureaucracy and infighting is appalling.” Kokich also drew attention to this key issue in his presentation. He made the point that “digital” can be sales, CRM, advertising, research, and customer service.  But clients have kept each of these functions in separate silos (“and they all hate each other”) for so long that it is difficult to take advantage of the opportunities.