Happy Relationship Day – 2/14 <3 

Happy Valentines day and welcome back everybody! Hope there is no heartbreak out there, because this blog we will be focusing on the importance of customer relationships.

Does engaging the customer really matter? Or will customers buy a product they need, whether or not they are being engaged?

Answer: IT MATTERS

Lets go back to the valentines day example. Even if a guy has an amazing car, beautiful smile, and handsome slicked back locks of love, if he isn’t putting in the time with his lady, she is moving on to somebody who will engage her and show her a good time.

Master Hans Willem, an expert on the subject, emphasizes in his article, Customer Drive Online Engagement, that many companies transitioning and are focusing whole departments on customer relationships.

A Tough Breakup – American Airlines

United Airlines and its customers had a tough breakup as customers felt a lack of focus on customer relationships after this video was produced:

If this was my relationship and my girlfriend broke my guitar and didn’t pay for it I would be pissed too! This video disconnected American from its’ customers resulting in a 10% drop in stock price (Statistic provided by the Economist).

It comes down to the platinum rule which I learned today in professional selling, “Do unto them what they would want done to them.” – Randy Moser. That just didn’t happen in this situation.

The Perfect Relationship

A perfect relationship benefits both the consumer and the seller in a way where both parties end up satisfied and happy. And just like in relationships, beauty is in the eye of the beholder, in a marketing sense, Shultz writes that this concept also exists and that instead of beauty it is value is in the eye of the beholder. That is what it is all about – ADDING VALUE.

So ladies and gentleman out there, if you take away one thing from this blog, I hope it is that good relationships add value!

– Kahane signing out

Works Cited:

Willems, Hans (2011). “White Paper: Customer Driven Online Engagement”. GX Software.

http://www.economist.com/blogs/gulliver/2009/07/did_dave_carroll_cost_united_1

Schultz, Don; Heidi Schultz (2004). “Creating Customer and Marketplace Value”. IMC: The Next Generation. New York: McGraw Hill, p. 115-123, 131.
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Alright, alright, here’s the photo source!

R: Relevance, Receptivity, Response, Recognition, and Relationship

C: Customer, Cost, Convenience, and Communication

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Image from: juxtapost.com

“Do Us a Flavor” contest

Image from: brandingmagazine.com

Image from: zimbio.com

Image from Pinterest.com

There can be different ways of engaging the consumer, starting with helping them solve their problems and letting the customer know they are interested in making their lives better. For example the shoe company Nike. They are not only known as a shoe company but also associated with technology since they have been going through a digital revolution. The company has developed different products to motivate the consumers into becoming better athletes. 

Image from: Kingloaf.com

For instance, the Nike FuelBand, which uses a sports-tested accelerometer to measure your movement in NikeFuel, a universal metric of activity. This band not only helps the athletes keep track of their progress but also encourages them to try harder.

Image from: Blisstree.com

Creating these products keeps the consumer engaged in several Nike products, and Nike achieves this by providing them with the product and helping them solve daily challenges. They use famous athletes as their brand image, this way consumers associate the brand, Nike, with success and will unconsciously feel like they can overcome their challenges by using their product. The brand makes you feel as if you are part of something big by understanding the customer’s needs, and that is what customer engagement is all about: understanding how the customer feels and giving them what they want.

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“It’s easy to be put off by the apparent complexity of digital media, but success comes down to understanding people and behavior. If you can engage consumers and enhance their experience, you will build long-term business sustainability and value.” — Jez Frampton, Global Chief Executive, Interbrand

An Apparent Shift in Focus

Part of my fascination with IMC has stemmed from an apparent shift in focus from product to consumer. Now, campaigns must be consumer-driven and create engagement with a brand that cultivates a lasting loyal relationship. My professor, Beth McAlhany, said in class the other day, “People don’t care about products. They care about what the product can do for them and what unmet need or problem the product solves.” I couldn’t agree more. We’re backing away from traditional methods of advertising and marketing because they are no longer as effective as developing true consumer engagement. Don’t worry if this sounds daunting, read on and let me explain. In this post, I will discuss the crucial value added by consumer engagement and offer a few different expert perspectives on the topic.

A Slippery Slope

According to Kenneth Clow, the author of Integrated Advertising, Promotion, and Marketing Communications, “Engaging consumers requires an entirely new, carefully integrated approach. Many new marketing efforts have been made to engage customers with the brand at every contact point as methods of building loyalty.” In my opinion, Clow describes a very slippery slope where balance, consistency, and relevance are key. Companies must now consider how a consumer interacts with their brands on a multi-touchpoint level. I’ve grown up in the era of social media, a new technology that provides companies with the tools necessary to spread brand awareness, increase consumer engagement and loyalty, and show their true brand identity.

The Importance and Value of Two-Way Communication

(Source)

Clow also asserts, “Effective engagement provides an avenue for two-way communication.” He couldn’t be more right, and I can draw from an example that I experienced first-hand. My aunt, Michelle Charlesworth, is a news anchor on ABC. She constantly tweets about relevant brands she likes and her experiences with them. After tweeting at Chobani how satisfied she was with their Greek yogurt, the smart marketers at Chobani quickly replied to her tweet with a “Thank You!” and then went the extra mile and sent her a whole box of free Chobani in the mail. That’s what I call consumer engagement and two-way communication! I think it takes a really savvy brand to not only respond to negative comments, but also remembering to reinforce and reward positive feedback. I was absolutely blown away by this story! And let’s just say I switched from Fage to Chobani after that.

It’s simple things like this that really exemplify the importance of a two-way conversation between brand and consumer, while also driving consumer engagement on the deepest level. 

Why the Shift?

Simply put by Hans Willems in his article Customer-Driven Online Engagement, “because the word ‘market’ connotes trade and revenue, it primarily tends to look at people as a possible source of revenue (‘what can I get from you?’ instead of ‘what can we mutually offer each other?’). It is perhaps subtle, but striking nonetheless.” Being customer-driven requires a completely different way of thinking, where the consumer is the starting point instead of the result. 

This concept is reinforced in an article I read a few months ago on Fast Company, 5 Ways to Build Brands in a Post-Digital World, “Consumer-created content and conversations are driving organizations’ image, reputation and bottom line. This represents a significant shift in dynamic. As consumers become increasingly influential, businesses are becoming less powerful.” I find this quote particularly interesting because of how much it rings true in today’s advertising and marketing landscape. The customer has so much more power now than even just five years ago. We are entering a world of customization, increased customer loyalty, and accelerated ways to utilize the power of word of mouth. 

With all of that said, look for a future post regarding the phenomenon of customization! Hope everyone is having a happy Thursday!
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Time to get talking

But How Do We Engage Our Customers?

Who is getting engaged?

Through their online website, Skittles has done a great job of engaging the consumers.  Upon entry to the website you are invited to “experience the rainbow” through a variety of different interactive social media features. The whole page is an experience in itself as your scroll down and uncover tweets and have the opportunity to watch and share videos and like things on Facebook.   

What Do I Think?

In my opinion, everyone should jump on the customer engagement bandwagon.  I think it is a great new way to establish customer and brand loyalty.  It keeps the customers happy and makes them feel like they have a say in what they are ultimately buying for themselves.  So to all those companies out there looking for that extra edge, its time to get engaged!

Works Cited

Willems, Hans (2011). “White Paper: Customer Driven Online Engagement”. GX Software.

Schultz, Don; Heidi Schultz (2004). “Creating Customer and Marketplace Value”. IMC: The Next Generation. New York: McGraw Hill, p. 115-123, 131.

Skittles Image: http://azr4el.deviantart.com/art/Skittles-272726644

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