Atomic Ideas - Helping You Sell More Stuff!

Challenge assumptions regularly when it comes to your marketing message.

You've been marketing your product or service so long that you really know your customer... or do you? Economic conditions change people's values,  new generations with different goals rise to prominence, people move, demographics change, neighborhoods turn over, and every year, some of your best customers leave the market completely. So what's a business, that wants to sell more stuff, to do?  Simple. Challenge your assumptions about what your customers want....by asking them.

A little market research from time to time is a tonic for stale messaging. Challenge even your most basic, "everyone knows that" facts. This gem was brought home in an entertaining fashion while tooling around "You Tube." I, like everyone else on the planet "knows" that cats don't like water....or do we?  Take a look:

 

 

Where are your best customers? (Maybe not on Facebook or Twitter!)

Where your customers are is an important question. As the articles below point out, nearly 25% of Americans still don't use the Internet. Only about half use Facebook and only 7% use twitter. That's why we at Atomic Ideas continue to bang the drum for starting with a sound strategy. Even the right message is wasted if you're not using the right media. Just because everyone else is using a specific medium doesn't mean it's right for your brand...or maybe it is! 

Nearly Half of Americans Use Facebook; Only 7% Use Twitter [STUDY]

February 24, 2011 by Jolie O'Dell195

 

A new report from eMarketer finds that most adult Americans with Internet access use Facebook at least once a month, and a full 42.3% of the entire American population was using the site as of this month.

By contrast, Twitter‘s penetration rate was much lower, sitting at around 7% of the total population and 9% of the Internet-using population, according to the report.

Late last year, Facebook founder and CEO Mark Zuckerberg announced that the company saw around 250 million daily users of its 500 million-strong user base. The young exec made the point that Facebook’s products — including Photos, Places, Groups and Messages — are features that people use more frequently than they use other, more established services with similar features because Facebook’s products are inherently social.

Twitter, on the other hand, is driven largely by so-called power users, and only 21% of registered users are actually active on the site. Another interesting and related Twitter usage stat: 22.5% of users are responsible for 90% of all tweets.

One important stat to note, however, is Twitter’s year-over-year growth. Last year around this time, Twitter’s penetration rate was around 7%, and by the end of this year it’s expected to be at 11% for American Internet users, or 16.5% of the population that also uses other social networks. In terms of the overall U.S. population, the numbers are still small, but the growth is steady.

An analyst for the firm said, “eMarketer’s new Twitter usage estimates are lower than our April 2010 forecast. Since then, Twitter has continued to gain traction but at more moderate levels than we had expected.”

The microblogging service celebrated 100 million new accounts created in 2010, and a lot of that growth was due to the company’s investment in official and device-integrated mobile apps.

What do you think it’ll take for Twitter’s growth to really skyrocket and reach more of the population? Or will this service remain a niche product for the web-using elite? Let us know your opinions below.

TOP 20 COUNTRIES WITH THE HIGHEST NUMBER OF INTERNET USERS

TOP 20 COUNTRIES WITH HIGHEST NUMBER OF INTERNET USERS # Country or Region Population, 2011 Est Internet Users Year 2000 Internet Users Latest Data Penetration (% Population) World % Users 1 China 1,336,718,015 22,500,000 485,000,000 36.3 % 23.0 % 2 United States 313,232,044 95,354,000 245,000,000 78.2 % 11.6 % 3 India 1,189,172,906 5,000,000 100,000,000 8.4 % 4.7 % 4 Japan 126,475,664 47,080,000 99,182,000 78.4 % 4.7 % 5 Brazil 203,429,773 5,000,000 75,982,000 37.4 % 3.6 % 6 Germany 81,471,834 24,000,000 65,125,000 79.9 % 3.1 % 7 Russia 138,739,892 3,100,000 59,700,000 43.0 % 2.8 % 8 United Kingdom 62,698,362 15,400,000 51,442,100 82.0 % 2.4 % 9 France 65,102,719 8,500,000 45,262,000 69.5 % 2.1 % 10 Nigeria 155,215,573 200,000 43,982,200 28.3 % 2.1 % 11 Indonesia 245,613,043 2,000,000 39,600,000 16.1 % 1.9 % 12 Korea 48,754,657 19,040,000 39,440,000 80.9 % 1.9 % 13 Iran 77,891,220 250,000 36,500,000 46.9 % 1.7 % 14 Turkey 78,785,548 2,000,000 35,000,000 44.4 % 1.7 % 15 Mexico 113,724,226 2,712,400 34,900,000 30.7 % 1.7 % 16 Italy 61,016,804 13,200,000 30,026,400 49.2 % 1.4 % 17 Philippines 101,833,938 2,000,000 29,700,000 29.2 % 1.4 % 18 Spain 46,754,784 5,387,800 29,093,984 62.2 % 1.4 % 19 Vietnam 90,549,390 200,000 29,268,606 32.3 % 1.4 % 20 Argentina 41,769,726 2,500,000 27,568,000 66.0 % 1.3 % TOP 20 Countries 4,578,950,118 275,424,200 1,601,772,290 35.0 % 75.9 % Rest of the World 2,351,105,036 85,561,292 508,993,520 21.6 % 24.1 % Total World - Users 6,930,055,154 360,985,492 2,110,765,810 30.5 % 100.0 % NOTES: (1) World Internet User Statistics were updated for June 30, 2011. (2) Additional data for individual countries and regions may be found by clicking each country name. (3) The most recent user information comes from data published byNielsen Online, International Telecommunications Union, Official country reports, and other trustworthy research sources. (6) Data from this site may be cited, giving due credit and establishing an active link back to Internet World Stats. Copyright © 2000 - 2011, Miniwatts Marketing Group. All rights reserved.

 

 

Monday Musings: Politics and Brands... Is Your Brand Red or Blue?

Well it's Monday again and I was looking for a fun fact to pop up on the blog. This caught my eye.

According to a new Adage article, politics plays a big part in who favors one brand over another. For example, Google is the top brand for Democrats and, not surprisingly, Fox News tops the charts for Republicans (which, not surprisingly, doesn't appear on the Dems top 10 list).

It appears that some brands still do well in a bipartisan way, including Cheerios, UPS, FedEx, Craftsman, J&J, the History Channel and the Discovery Channel.

Check out the chart, or read the full article here. Happy Monday!

Could you just make the logo bigger?

My friend Russ pointed this story out to me last week from Ad Age: apparently The GAP redesigned their logo and slipped it onto their site last week. It seems, the online public noticed it quickly and vigorously voiced their opinion of the change: they hated it. People thought it was uninteresting, average, uninspiring and lacking in any direction. Also, the question of “why?” came up a lot. What was broken that had to be fixed?

Well, since that story broke, The GAP listened and pulled the new logo and returned to the familiar white type in a blue box logo. GAP North American president Marka Hansen admitted, in so many words, they had made a mistake. She also said that they would not evolve a new logo through “crowd sourcing,” – a plan that was initially offered last week to help ease Gap fans’ logo dislike.

How does something like this happen? Why change the company logo that’s been around for over twenty years? They changed it to an upper/lower helvetica bold in black and floated a small gradated blue box to the right, behind part of the p. (see above) On the Gap site last week they said, "We chose this design as it's more contemporary and current. It honors our heritage through the blue box while still taking it forward." Talk about gobbledegook- the little blue box represents heritage? Heritage?

Does The Gap Inc., which is part of Banana Republic and Old Navy, do any market research? Couldn’t they have done a focus group to see if logo change was even warranted? And most importantly, will a new logo help them sell more stuff? 

Tell us what you think?  

Here are a few big companies that have made logo changes over the years, (they’re usually quite gradual).

 

 

 

Proof Positive... Wow Your Customers and They Will Pay More.

As Steve Curtin, "Customer Enthusiast", points out in a recent article on his site (lots of good stuff there), several recent studies prove that if you can delight your customers, they'll be willing to spend more money on your product or service. Who would have thunk it?

Some research highlights from the Steve's article: 

• A 5 percent improvement in customer satisfaction leads to an increase of over 35 percent of future operational cash flow. American Customer Satisfaction Index (ACSI)

• According to J.D. Power and Associates, hotel guests who rated their overall satisfaction with a hotel a 10 (or Very Satisfied on a 10 point scale) spent, on average spend $12 per day more on hotel services than guests who rated their overall satisfaction as an 8 or 9 (or Somewhat Satisfied on a 10 point scale).

• Consumer research firm PeopleMetrics, surveyed 1,250 customers on their experiences at restaurants Customer engagement was measured by four factors: customer retention; the extra effort a customer was willing to make for a return visit; whether a customer would recommend the restaurant to a friend or family member; and passion—whether the customer “loved” the restaurant. At the end of the study, the restaurants were divided into two groups: those with low customer engagement scores and those with high scores based on the survey results. When year-to-year financial data for the two groups were compared, the group with high customer engagement scores had an average increase of 29 percent in gross margin versus a 12 percent decline for those restaurants with low scores.

• American Express and Echo Research compiled research that revealed American consumers are willing to spend, on average, 9 percent more with companies that provide excellent customer service.

Improve customer service, improve your bottom line! Seems obvious doesn't it? Something every company should be striving for, every day.  But do this simple exercise. Think about the last businesses you "engaged" with; stores, restaurants, credit card companies, insurance companies, you name it. Now think about how many of them provided you with outstanding service and a memorable customer experience you'd be willing to share with your friends and family. I'm betting not many. Many companies just don't think about customer service enough. 

In fact, according to Steve, many companies are doing more to annoy customers than delight them in their quests to boost profits in the face of price competition, and a still lousy economy (I'm a pessimist). Airlines, hotels, credit card companies and many others are lowering prices to compete, but adding fees for the most inane things to your bill to make up the difference. 

Curtin mentions a hotel charging a $2.95 minibar "restocking" fee, and an airline seriously considering charging for the use of toilets on their planes. Of course, making customers think they're being ripped of (even if that's not the underlying strategy) is a whole lot easier than investing in employee training to create a culture of wow. Or figuring out what it is that makes their company special and adds value their competition does not offer.

Being retail mavens, we've have had a lot of conversations about this in an era of deep discounting and price slashing by some of our clients and retailers in general. We typically pose these questions: 

"Why would your customers come to you if your products and services and those of your competitors were free?" What would they be willing to pay for then?

Intriguing questions, aren't they? They force you to think about the things you do, or the things you could do, or should do to differentiate yourself and add distinct value that truly wows your customers.

The bottom line? Before you cut prices, consider adding value. 

What are you doing to delight your customers? 

Oh, and check out the Customer Enthusiast for lots of great info on the art and science of brand fandom.

Atomic Ideas on Good News For Restaurants - Consumers Still Want Value But Are Less Concerned With Discounts

As a group who has done a lot of work for the restaurant industry, all of us were glad to see a recent article on the ad-ology site with some positive news for operators - consumers are planning to eat out more!

According to the most recent American Express MarketBriefing based on Technomic data, a survey revealed the following intentions to eat out at least once a week by restaurant type:

• Full service restaurant 16% (10% increase from last year)
• Quick serve restaurant 32% (21% increase from last  year)
• Fast casual restaurant  12% (9% increase from last  year)

Better yet, consumers don't appear to be looking for heavily discounted menu items and deals the way they were during the worst of the recession. People are still looking for meal value, but are not always basing their decisions on deals and promotions, a significant change in recent behavior.

Here are the Technomic survey results for the number of consumers who will visit a full service restaurant despite discounts or special promotions:

• Very likely 46%
• Somewhat likely 40%
• Not very likely 12%
• Not at all likely 2%

All in all, some pretty good news for feeders.

Also of interest, Ad-ology Research recently updated it Industry Marketing insights report for Fast Casual Restaurants and predict the following Top 3 Opportunities/Challenges for this segment of the industry in the following 12 months:

• Family style restaurants are favored by 2/3′s of consumers who want to take their children out to eat once a month.
• Restaurants are emphasizing sustainability, locally sourced foods and nutrition when marketing to consumers in 2010.
• Fast casual operators are differentiating themselves by offering a variety of adult beverages. Up to 40% of the Top 100 Chains now offer alcoholic beverages.

The full report can be purchased here for $195.

Atomic Ideas on Pitch Perfection

I saw this Lexus spot the other day during the British Open. It also ran during Wimbeldon coverage. I understand, country club sports attract high-income viewers, a natural market for the 2010 Lexus LFA. But, “the pursuit of perfection” through the sound of an amplified exhaust? Perfection of what? 

I know, I'm taking this analogy a little seriously, but they're making it the heart of their point and it bugs me. Lexus has spent a lot money making a beautiful set/test lab to illustrate this perfection point. The spot is beautifully shot and edited as usual, but so what. It only takes 90dB of the right note to break glass. I know it's not easy to do this, but it's pretty much a science project. It’s just a loud, sustained exhaust sound from a 552 horsepower Lexus. I’m sorry, but that’s not music and it does not equate to high quality or perfection. I think the same could be achieved with a less expensive vehicle, maybe with a Ford Fiesta or a Chevy Malibu.

At Atomic Ideas we like to define a company’s marketable truths to connect to its best customer. That’s how we help a client sell more stuff. In the case of the Lexus LFA, their marketable truth is “the Lexus LFA exhaust can break champagne glasses.” I know the Lexus is an expensive, well made, fine tuned and beautifully designed vehicle, but not from their cute tongue-in cheek ads. I know this from other sources like news articles, car magazines and real-life Lexus viewings.

 Creative license aside, what’s their quest for perfection? I think their ads are more about clever trickery with a snobbish attitude than about trying to show a true consumer benefit (I didn't see one there). Ironically, with the sound turned down, the various beauty shots of the Lexus in this commercial do more to help sell it than anything else. What do you think?

On my Steeb-O-Meter  (a rating system for evaluating projects on film, video, music, television and print on a scale of 1 - 63), I’m giving this spot a 31.

Atomic Ideas On The Baconization of America

What’s the secret to selling more stuff? Well, I think I’ve found it. It’s been right in front of me for all these years. You can see it in this Taco Bell commercial. It came out over a year ago and they’re running it again. It seems so true. The secret is bacon. Actually it’s the secret to selling more food, that is. If you’re going to sell food, put bacon on it. Practically everyone loves bacon, men and women. I admit I love it. (And for the few who don’t, they invented turkey bacon – some bad, some good).

This bacon strategy seems quite prevalent in most American cuisine restaurants. They’ll offer five different kinds of burgers and four will include bacon. Look at the salads and you’ll find a wedge of lettuce with Bleu cheese and bacon or a salad with grilled chicken topped with bacon. The other day I had a cup of clam chowder that included smoked bacon.

My 19-year old son now only eats pizza that’s loaded up with bacon.

I saw a kids' tv show and the characters dreamed of a bacon flavored chewing gum.

I went to a dinner party recently and we were served wild boar and baked beans (I know it’s not bacon but boar is part of the pork family)

The desire for bacon is there. And fast-food places like Wendy’s know it. Nine out of the 18 burgers on their menu include bacon, with the Baconator Triple leading the way with nine strips. Nine strips. Burger King’s Quad Stacker has six. The Hardees 2/3lb. Monster Thickburger has four strips. McDonald’s only significant bacon entrée is the Angus Bacon and Cheese with just three strips of bacon.

Not of alarming caution: not to burst any bubbles, but one of the biggest contributors of saturated fats to the American diet is bacon. (Have you been to your local swim club lately?) Though it tastes good, it’s not good for you, plain and simple. It reeks of fat and has an abundance of calories and is high in sodium. And bacon is often teamed up with other saturated fat donors. Example: Wendy’s Baconator Triple, (according to their own on-site nutrition guide) 1360 calories, 91g fat, 49g carb, 84g protein, 2490mg sodium – these are all high numbers for any meal. Of course, you must consider everything in moderation.

Yes, bacon is everywhere and no-doubt, so is the demand. So I’m thinking, as an advertising/marketer, maybe it’s time for a non-food, consumer product to team up with a food seller for a promotion. Like, “Cadillac’s Bacon Burger Bonanza” -where you’d get a free Baconator when you test-drive a Cadillac. Or perhaps, Target could have a “Bikini & Bacon Bash” – buy a bikini and we’ll throw in a pound of Oscar Meyer Super Thickcut Applewood Bacon. Ummm…

You do have to be careful when choosing a marketing partner - you’d think something like a “Prius & Prociutto Jackpot of Pleasure” would be a natural. Nope, most drivers of those fuel-saving hybrids are vegetarians. Now, “Bowling for Bacon”? –well, that does seem like a good match. Remember, make sure you know your market.

Like my friend Greg says, "Everything's better with bacon." Just don't go hog-wild. What do you think?

Social Media is not always the answer!

 I found a great article which sums up the challenges of social media and why it is not always (contrary to the hype) the best answer for many marketers.  Entitled  "10 Reasons Your Company Is Not Ready For Social Media" (written by Steve Slivka & Patrick Berry) it quickly and concisely outlines what is needed to make Social Media efforts successful -- and why utilizing "free" platforms like Facebook and Twitter is usually anything but "free."  Here is the link:  http://www.cmo.com/social-media/top-10-reasons-your-company-not-ready-social-media

Like a "hot stock pick," blindly following the crowd or the buzz about a new medium or tactic is a gamble. A gamble with the money your company invests in marketing. Remember the words of wisdom found in all investment prospectuses, "This fund (or stock, etc) may not be suitable for all investors. Consult your advisor for it's appropriateness in meeting your particular goals and objectives." And my favorite phrase-- "Past performance is not a guarantee of future returns."  Once your agency helps you determine the best media mix, it must be continually re-evaluated for effectiveness. 

At Atomic Ideas, we carefully analyze a client's best potential customers, craft messages that will resonate with their needs and desires, then deliver it in the most appropriate medium(s) for both the client and the customer. Often that includes social media. Sometimes it doesn't. But it could include anything and everything from TV, Radio, Newspapers, Magazines, to Billboards, Point-of-Sale, Direct Media and a whole universe of guerilla tactics. Whatever tactic(s) helps you best connect with your customers to help you sell more stuff!

 

BP's Wasted Message -- A Lesson For Advertisers.

Whatever you say in your messages to consumers (or any audience), unless it's what they want to hear, it will fall on deaf ears. And you've wasted money on crafting and delivering it. 

BP's latest message on the oil spill is a perfect example. Oil is washing up on beaches. Consumers want to hear that the oil has stopped washing up on the beaches.  Tony Hayward can cite any statistic he wants on how many boats and pieces of equipment are being used in this crises, but whatever the number, customers will think, it must not be enough. Oil is still washing up on the beaches. He can say he's sorry a million times, but consumers will think, it must not be enough. Oil is still washing up on the beaches. He can say how much BP is spending every day on the problem, but consumers will think, it must not be enough. Oil is still washing up on the beaches. 

In fact, until they can craft and deliver a message that says that the oil has stopped washing up on the beaches (or will stop in a short definite period), they should just save their money to help pay for the eventual lawsuits.

This is why we at Atomic Ideas carefully study a client's best potential customers before crafting  a message that we can be sure they will want to hear. Then we deliver it at the time and through the medium in which they are most likely come into contact with it. To do otherwise risks throwing good marketing dollars away.

Like BP's handling of their oil spill crises, there may be all kinds of facts, figures and logical arguments that can be made about any given product or service. But unless you say what consumers want to hear about your product or service, you might be better off saying nothing all.