By Bob Wheatley

Photo credit: Sharon Dominik

Forever and a day I’ve seen this concept play out in various categories from beverages to food, travel services to floor care and cleaning products, that 80% of your profits can routinely come from 20% of your customers who constitute the most engaged, heavy users in your business. Call them your best fans.

Yet routinely we focus our efforts, strategies and spending on casting a broad net. We try to be appealing to everyone because we keep telling ourselves that our brand and business not only deserves high household penetration, but “we can’t ignore the volume opportunities.” To be sure, but the 20% that’s mainlining your brand and paying attention to your messaging with a little help and “enabling” can become a more productive core of real-world ambassadors. People who can help spread the word effectively to those who are not as fully invested and who don’t buy as often.

Take cheese and pet food for example. Cheese is one of the most popular food categories in supermarkets. We like cheese, so it’s a big volume business. Yet a closer look reveals that consumers who are more emotionally engaged and devoted to cooking represent a “heavy user” profile that purchases more cheese products, more often and in many cases will go for higher priced items when they feel the value proposition is credible. So paying closer attention to this group of emotionally charged ‘kitchen commanders’ can yield incremental benefits in talk value and word of mouth, once they’re fully embraced, recognized and rewarded by the brands they love.

Or in pet food: a dynamic audience combination we refer to as indulgers and doters consists of a high percentage of higher income households who treat their animals like family members — and will even go as far as cutting back on some of their own discretionary purchases in order to keep Fido in tip top shape by feeding him a super-premium pet food diet. Industry statistics show this group continues to fuel an incredible growth track record in the emerging natural and organic segment – even though the tough economy has weighed in heavily in many segments to compel “trading down” behaviors.

Your call to action…

Think of it this way, your PR communications ROI outcomes will improve when communicating with an audience that’s really, genuinely paying attention. Those who have emotional, personal lifestyle connections to a brand are listening — first at the category level. A brand that works over time to mine relevance with this audience has the opportunity to build a unique relationship and bond. Conversely broad awareness tactics can perform as a “reminder mechanism” for the larger audience segments out there who may buy less often but who have ties to the franchise through their habit behaviors.

1. Consider for a moment the opportunities from investing more fully in courting your heavy users. What would you do differently? What efforts might you undertake to help create a community around these groups and empower them to interact with each other – especially important for home chefs and pet parents who want to share tips, ideas, experiences and insights with each other.

2. What rewards and recognition can you offer to your most devoted followers that surprise and delight – and thus are often the triggers to generating strong, credible and organic word-of-mouth communication.

3. What sponsored experiences can you create and deliver that bring your brand as close as possible to your best fans and allow them to interact with you and each other. In food this could include unique culinary experiences that reward your best customers with an opportunity to learn from the food heroes they respect like celebrity chefs. For pets it could be local dog park events and contests that allow pet parents to engage in shared experiences with their animal and with each other.

But wait there’s more…

Today, excellent blogger and thought leader Sonia Simone has an interesting post at Copyblogger that talks about the personal side of the Pareto Principle and how it impacts you and what you do. Her observations:

“…Which means that 20% of your customers provide 80% of your revenue. 20% of the time you spend behind your computer provides 80% of your best work. And 20% of that great meal you had last night provided 80% of the pleasure. (It was the chocolate mousse cake, wasn’t it?)

Because of the Pareto Principle, there’s always a “20%” you should be spending your time on. And in just about every discipline, it’s known as the fundamentals.”

Have you sat down to think about your day, your activities and to reflect on this idea – that 20% of your efforts will produce 80% of the great results and accomplishments you’re looking for? So what do the fundamentals look like for you? Maybe it’s a good idea to start by putting more energy and investment into courting your biggest fans…

Self-interests can no longer be served through selfishness….

By Robert Wheatley

Image c/o Philip and Karen Smith

With all of the conversation and discussion about the explosion of social media, and the era of two-way engagement and conversation that shift ushers in, you’d think businesses must be falling to their collective knees in a sort of Road-to-Damascus epiphany about discovering a new path to building brands. Have we seen the light?

Has a new marketing and communications religion taken hold? Apparently it’s still a work in progress. We learn that the vast majority of marketing spending still flows down the hide-bound and intractable pipe of interruption media and its embedded agenda to disrupt, persuade and imprint messages.

Oscar Wilde once quipped, “I can resist anything except temptation,” and so the addiction to push media solutions rolls on. Like a massive electric motor bolted to the floor of an industrial age power plant, the tradition-bound backbone of brand marketing built from an interruptive model continues to spin on its own inertia.

• Consumers are not walking wallets merely to be sold. If anything there’s a refined “selling detector” that’s emerged as consumer’s turn away from and avoid or ignore blatant pitches in favor or more interesting and helpful forms of brand interaction.

We’ve institutionalized a legacy over time of brand narcissism that should evolve. It’s not all about us anymore. Yes, the fundamental goal of a business organization is to sell more stuff more often and more profitably.

But if the tone, tenor and manner in which we go about achieving business objectives flows from a view that consumers are merely walking wallets, then we’ve failed to grasp the fundamental changes that impact how great brands are built in the age of consumer control. Behaviors that reinforce customer relationships as transactions-to-sweep-in only lack understanding that consumers now control brand interaction. And so we must move from push to engage, from tell to listen, from imprint to co-create.

Brand narcissism is a systemic problem. It emanates from deep-seated behaviors that suggest company’s can compel consumers into favorable purchase behavior at will. Years of pushing messages and other tactics at consumers continues, whether openly acknowledged or not, to flow from a belief that the one-size fits-all consumer will do what we tell them to do.

Not so.

What’s needed…?

1. Enduring brand relationships are now built from a foundation of mutual respect, interest and caring.

2. Brands must earn permission for a relationship with core customers by aligning themselves with their unique lifestyle passions and interests.

3. A form of brand selflessness must authentically take root — such that all points of contact reverberate with the same level of reverence for consumers as friends of the brand, not just targets to target.

The change here is more attitudinal than anything else. Once consideration is given towards how a brand can mine a “higher purpose” built around reciprocity, then we have room to move to refine strategies that will help effectively build a foundation of trust. And let’s be clear, trust is the fabric that binds brands to consumers.

It is the absence of meaning, compelling value and trust that turns businesses into commodities…

Social media by the way is a partner in all of this, not a stand-alone panacea. Engagement media gets interesting and valuable when it is integrated as a component part of all forms of outreach.

We’ll examine more of media integration piece tomorrow. What do you think?

By: Carrie Becker

Image c/o Flickr Thomas Hawk

Too often we hear stories of brands ignoring new technology and communications tools because they can’t grasp the ROI (or, more often, they don’t want to hear consumers complain!). Then in some unforeseen chain of events the brand must quickly engage the tools to overcome a communications crisis (e.g. Twitter response by new moms’ to poorly positioned Motrin advertising). Fortunately, I have a positive story that may help uncover the benefits of a two-way conversation with your customers.

My husband and I are beer drinkers (which makes it even more rewarding that Wheatley & Timmons handles communication strategy for the Modelo Brewing Group portfolio). Last night, I was winding down my weekend with a beer from a craft beer brewer, Dogfish Head. I’ve had their beer on a number of occasions and always found the same reliable, quality and taste.

Unfortunately, when I just wanted to savor one more sip of the relaxing weekend, my beer had other plans. Something was off and the taste replicated more grape juice flavors than the caramel and vanilla taste I had hoped for.

With a bit of frustration at 8:52pm (cst) I tweeted out “agh! my dogfish head palo santo tastes like grape juice WTF…I’ve had corked wine but don’t know what to call this beer.”

Within three minutes, one of my followers, Matthew Horbund (@mmWine), a wine consultant and blogger, responded that I should ask professional beer writer Ashley Routson (@TheBeerWench) what may be wrong.

Now, I do follow Dogfish Head on Twitter (@dogfishheadbeer) but at this point in the night I didn’t think anyone would be there to solve my problem so I just left it alone (*note to self: in the future, just send a tweet to Dogfish Head. THEY LISTEN!).

By 6:03am, I received a tweet from @dogfishheadbeer, “Not good – can you DM me an email address? Our QC folks would love to get some details from you (bottle data, etc).” From that point, I was quickly put in touch with quality control and was able to offer them the data on the bottle. I was then put in touch with a local rep who picked up the bottle from my house and made a visit to the wine and spirits store where we purchased the bottle.

As a consumer and also a brand strategist, there were a few things that ran through my head throughout this experience:

First, after I drank the off tasting beverage:
I was completely surprised that I was having a poor experience with Dogfish Head, a brewery I trust to always put out quality product. It made me consider that perhaps quality control had slacked. Could I trust my next beer selection with them?

Then, after receiving the first tweet and following rapid correspondence from DogFish Head:
I was completely geeked-out by the amazing commitment the company had to their product and their customers. They used listening tools to seek out what customers are saying. They LISTENED then used the opportunity to make a situation better. Plus, this did not take much additional effort by the customer (me). They sought the information and ran with the response.

This for me is a perfect case of when a company is truly LISTENING and showing commitment to their product and their customers.

Are there any other brands that you feel are good ‘Listeners’?

If you are interested in some additional insight in how to better connect with your consumers, I’d love the opportunity to chat. I love chatting about wine, food and building consumer relationships. Email me: cbecker@wheatleytimmons.com or find me on Twitter: twitter.com/CarrieBecker7

Moms seek advice from “live” sources…

By Robert Wheatley

With all the conversation about engagement with social media one would assume that online discussions about products and services lead the way as purchase decision drivers. Sure they remain important and vital because moms look to social platforms for advice, support and connection.

That said, when it comes to making purchases, offline networks of friends and family trump all other sources for advice on what to buy, according to a recent study released by MomConnection and The Parenting Group’s 5,000 member mom panel. Even though the study data confirms 60% of moms are using social networks in their daily routine, they are four times more likely to look to their off-line network for info on which products to buy.

As indicated before in a recent article we published, validation is essential for consumers to confirm assertions made by brands about the outcomes of product use and experience.

Communications increasingly is a circular proposition where touch point consistency matters and outside third party connections loom large as sources that bring high levels of built-in belief cachet. It is the belief thing that brands find hardest to “manage” because trust comes not only from brand relationships well done, but importantly, from sources outside a brand’s control wheelhouse.

So how do you influence the circle when elements of the belief system most important to moms lie not with brand outreach but with their friends and family?

Creating the tell-able tale…

It helps of course when products and services are unique and interesting enough to come already equipped with natural charm, allure and magnetism. But even with the most magnetic of brand personalities, marketers need to think through the story telling opportunity and ask these questions:

• Is my message sticky and repeat-able?

• Is it thus short and memorable?

• Are there good story telling elements wound in to keep it interesting?

• Can the “keeper of the story” come across as insightful and knowledgeable to her circle of friends?

• Does the story contain nuggets of intrinsic value to the consumer that is relevant to their own lifestyle needs and interests?

Simply said, can I craft a tell-able tale around my brand and product story, one that can be easily passed around to others?

Moms drive much of commerce so this is an important discussion to have. It’s about looking candidly at this potential disconnect in the communications landscape. If I want my brand story to be passed along from mom to mom, is it truly designed to accommodate this requirement?

Complicated messages die-hard anyway, so passing communications through the crucible of simplicity is a good thing no matter what. But designing messages specifically to enhance their pass around value is yet a new technique that requires extra effort to get right.

Here are the most popular subject topics for mom-to-mom conversations on product choices:

Children’s toys and games 86%

Entertainment 84%

Cooking and baking tools 82%

Online/offline shopping 78%

Drugs and remedies 75%

What do you think?

$11,000 (per occurrence) consequence if rules not observed

By Robert Wheatley

Over the last few months we’ve been reporting on the FTC’s efforts to refine guidelines on use of celebrity/third party spokespeople and the emergence of bloggers as a new, legitimate channel of media. A channel, by the way, that comes without the built-in rules traditional media organizations observe regarding ethical separation between PR and reporter.

Let’s start with the FTC’s hard news: if outside spokespeople participate in communications activities outside of advertising, such as a talk show interview, they need to disclose the paid relationship if they are going to talk about a brand or business. Similarly, if Bloggers (or other word-of-mouth sources) receive consideration in the form of payment or freebies in return for promoting a product, that also must be disclosed.

The FTC is saying something that only makes sense: consumers have a right to know if the mouthpiece has received payment in return for endorsement. While there may be some tawdry exceptions to this, for the most part, PR people in previous eras have not been in the business of buying favorable editorial coverage. A story has to stand on its merits. But the spokesperson thing was always a grey area in terms of how a relationship between third party and brand is defined or explained.

Now clarity exists on all fronts, and to the benefit of the consuming public — full disclosure of who is working for whom. Celebrity’s must say in an interview, I’m here today on behalf of brand x. And when Bloggers are paid to write, the deal must include requirements for disclosure of the arrangement. The FTC’s goal is to make sure all information is upfront, should any of it have an impact on the consumer’s decision to purchase something based on what they’ve heard or read.

This is a good thing!!!

One of the hallmark’s of effective public relations strategy is building credibility, and that is best served when all aspects of a relationship with media and third parties is out in the open. Honesty supports integrity and trust reigns supreme in relationships between brands and their users.

• Agencies and clients from here on in must abide by these rules of disclosure or risk punitive action

We applaud the FTC and their decision because it supports what we’ve always believed that great products, services and businesses don’t need to employ fakery or illusion to win in the marketplace. This will foster greater need for PR people to choose wisely in selecting outside spokespeople, preferably those who have genuine interest and reasonable, tangible connections to the products they endorse. Scrutiny, as always, is present these days and authenticity will be apparent to all observers. Why? Because in the new media age anything that can be known will be known.

What do you think?

Talking to consumers like a friend opens the dialogue

By Robert Wheatley

Seth Godin had a terrific post today. It begins with the premise that most marketing is aimed at recruiting new customers — thus the object of a brand’s obsession is very often going to be a stranger. He compares this to the paradigm of friendship where openness to an exchange of ideas is organic. Strangers are harder to talk to and convince of anything than a friend – whom you have motivation to listen to.

Let’s expand on this idea to describe a basis for effective brand communication strategy…

What are the characteristics of a good friendship? Perhaps mutual respect and affection are evident. When you interact with a friend you listen. Intently. You are patient. You care about their aspirations and concerns. You look for ways to be helpful. You give before you get. There’s a bond there that operates in parallel with some measure of compatibility – like-mindedness that serves to energize and put forward momentum into the relationship. Compatibility by the way usually arises from shared interests.

More often than not, business and marketing plans treat consumers as objects to sell to. The communication is built on a presumed clinical exchange – I make a great product and use my marketing plan to inoculate you with reasons why it is better than the other options, then you believe me and buy my stuff – and so the great cycle of consuming life continues. But now for the most part consumers have learned the tricks of the trade and remain systemically skeptical of push-style messages of self-proclaimed benefits, preferring mostly to ignore them.

So what are the fundamental underpinnings of effective communication in today’s wired and transparent world? How do you create the kind of communication that results in brand preference leading to a sale?

Talk and walk like a friend…

Sounds simple enough but to actually do this has tremendous implications for how you go to market, how you view the customer relationship in your operations and certainly in your communication – both content and channel.

Here’s the short form recipe for brand/consumer friendship:

To create and foment compatibility you must understand the personal interests and passions of your target consumer.

You need to identify ways your brand can help enable and facilitate those passions that can breed connective tissue between the consumer’s lifestyle and your brand – we call this finding your brand’s Higher Purpose.

Start a conversation. This has implications for use of social media platforms. It impacts the manner and tone of your messaging. It invites openness, feedback and discourse.

What about the experience the consumer has with your business and brand, is it friendly, is it fair and based on acknowledging the shared goals of a friendship?

There has to be genuine care for your consumer’s welfare – you can’t fake it. You give to get. Reciprocity is at the core of how a brand earns a place in the consumer’s life.

Natural communication is more appealing

By Robert Wheatley

Do you want consumers who engage on-line to visit your Web site, consume information on your brand and follow-through to buy your product? According to a recent article at eMarketer, the best route to victory may not be through the advertising path.

A recent poll by Opinion Research Corporation finds that brand mentions in on-line articles are more likely to engage their intended audience and cause them to act, versus banner and pop-up ads, email offers and sponsored links. Once again there is mounting evidence this PR-driven form of communication holds court over push messaging in ads and offers.

The advice to marketers: don’t undercut your investments in PR communication in the on-line world, in favor of paid ad outreach.

What is it about articles?

Articles at once carry the demeanor of authorship and therefore the investment and credibility of its writer. People intrinsically respect articles as a reliable source of education and knowledge. Information and ideas are presented in a conversational fashion that allows the reader to consume, judge and form their own conclusions. They feel in control of the process. And conversely they don’t feel like they’re being overtly sold and thus manipulated by a third party.

We seek out and collect information because it makes us feel good to be knowledgeable. We have an innate thirst for understanding and so articles quench the desire to be aware and in touch.

Study sponsor ARAnet President, Scott Stevenson reports, “More than two-thirds of the respondents between 18 and 34 said they conduct Internet searches for products or services they read about in on-line articles either frequently or somewhat frequently.”

The channels of effective communication are changing. The arena for engagement is fast becoming digital to be sure. But the basic drivers behind the human desire for information and ideas remains a constant. Content is king. Challenge your PR team to devote more of their energy and attention to securing coverage in on-line venues. Optimize your spending to make sure you’re not leaving on-line coverage opportunities on the table. And remember, brands are now content creators so you don’t need to rely solely on other voices to tell your story.

The form, style and context of the message will matter as much as the message itself. What do you think?

By Robert Wheatley

Does the over-arching preoccupation with pocketbook issues mean that emotion is taking the back seat to a more analytical point of view about things we buy? Is the mass move to frugality and pragmatism wringing out the value and power of emotionally driven communications?

NO…

The organism now walking the aisles of stores and supermarkets remains connected to the same brain that still makes much of its assessment about brand value and meaning on an emotional level. If anything, many of the root problems in the economy emanate from unrelenting emotional cues. Conditions today pour out of feelings of fear, uneasiness and discomfort that foster a behavior aimed at making real efforts to conserve and reign in profligate spending habits.

This conversation is vital because much is at stake for how brands present themselves in what is arguably one of the most challenging marketplaces to appear in the last 20 years.

We believe the right path doesn’t abandon what neuroscientists have already confirmed about how we make decisions on brands and purchases. Rather fine-tuning and modification of the strategic menu is in order.

It is probably obvious to all that emotional triggers pulled from strategies that worked in the previous era of abundance and asset wealth are no longer appropriate, such as:

Hedonism
Luxury
Indulgence
Consumption
Exclusivity
Prestige
Cutting edge
In-the-know

More effective in this time is a focus towards drivers cross the divide from indulgence to assurance:

Home
Hearth
Family
Security
Dependability
Practical
Smart
In-control

Value remains a major priority as brands navigate the difficult course around the prevailing desire to cut back and spend less. So brand messaging must balance between emotional and logical reasons for purchase. Just don’t make the mistake of letting this pendulum swing too far to the right and knock out the emotional components of outreach that are respectful of how we humans operate.

Peter Rogovin of Next Level Strategic Marketing has an insightful column on the subject in BrandWeek entitled “Why Spock Needs Kirk.” Worth a read!!

What do you think?

By Robert Wheatley

The cosmic at work on planet earth

This post may feel a bit like convening with the spirits or consulting the stars, but there is merit and consequence, we believe between proper, moral, ethical behavior and “good things will happen to you” and your business.

Otherworldly phenomenon…

An agency management consultant we know and respect, David Baker, made an interesting comment to us about the at times murky world of new business development activity. He said: you can’t know from one day to the next when a prospective client is actually ready and motivated to buy your services. His comment came in a conversation about what he believes is a lot of misguided attempts to “sell” agency services. He correctly asserts that agency services are bought and not sold.

However, he also said that there’s an almost cosmic, otherworldly connection between the act of purposeful outreach and opportunities for growth. His point: even though some activities may appear to be shots in the proverbial dark, there is a corollary relationship over time between conscious effort (sweat) and opportunity (result). You cannot necessarily quantify or calculate exactly how action “A” leads to “B” but it routinely does, so you proceed down this trail with a measure of faith that your labor will be rewarded. And sometimes from places you least expect.

Faith?

Similarly are there forces at work in business we cannot fully understand and measure that make the case for ethical behavior and the moral high ground? I believe the answer is absolutely YES. There are plenty of opportunities in business to take a darker path, as Seth Godin discusses in a recent post.

There is an interesting dynamic at play around us that underscores the wisdom and value of ethical actions. It may seem that bad guys like Bernie Madoff routinely make out like bandits — and others with less obvious criminal intents may also work hard to reap benefits from business practices that fly on the edge of moral judgment (some argue this condition is at the foundation of a few Wall Street meltdowns).

The world is a curious place and the rationale for moral conduct has a lot going for it beyond the religious undertones it’s almost always associated with or how you were brought up. Truthfulness, doing the right thing if you will, is somehow at work like a natural order just below the surface at all times. The old saying, “what goes around comes around” has been proven more often and in more ways that I can count.

If you act and operate morally, responsibly in your personal life and business dealings, there is a functionality to it that works alongside the conscience we’re raised with. Congruently bad behavior over time often leads to bad outcomes. This curious balance and force tempers the rush to greed that can motivate bad decisions and judgments.

Do nice guys finish first?

So does faith operate in the business world? Absolutely. Doesn’t mean we recommend tossing your efforts aside in favor of waiting for miracles. Rather the actions and efforts you undertake, if done in a spirit of right, fair, helpful, generous truthful, lawful and correct — lead to outcomes that generate benefits for individuals and business.

You agree?

By Robert Wheatley

Validation at the core of our new brand belief system

Last October I did a post on Trust and why it matters to brand growth and development. Recently I’ve been thinking about the relationship between that issue and the fundamentals of why the marketing communications landscape has shifted to make earned media (Editorial media, Web and social content) communications vital to brand success — not just a nice icing-on-the-cake thing to “add” to the mix.

Where there’s Trust, there’s engagement. And where Trust does not exist there is no relationship. And without any relationship is the absence of “mattering.” And when you don’t matter, you’re irrelevant. And when you’re irrelevant you’re a commodity — and people won’t take the time or mental energy to listen to what you have to say.

Spam is an interesting term that for most people simply means those annoying e-mail solicitations you can get for products you don’t want or need. The word, however, has broader meaning. I think it might apply to brand communications where Trust and therefore “mattering” are absent. Whether off line or on, communication that is pushed from brands lacking in Trust is a shotgun blast of Spam-like info that will probably fall on deaf ears.

As is my habit, I like to cast ideas in the form of a visual that helps convey the concept. Below is the Brand Trust Ladder. The point is to help cast the relative power of various forms of communication in the context of how brands become trusted. Trust precedes engagement. And engagement means the intended audience has opted in to listen.

Download this image as a PDF: brandtrust.pdf

At the top end of the ladder we find Validation. This concept is true to the age in which we live because it expresses the inescapable fact that consumers want information on products and services they buy to be “vetted.” We look for outside third-party sources – both expert and laymen – to corroborate what we think we know about brands.

These are the building blocks of brand trust – the more independent, valued and believed sources agree with what brands attempt to convey, the more we determine they are trust-worthy.

It is the mission of public relations strategies to identify the sources of credibility a brand can leverage. Then to develop communications that helps build linkage with the community of validate-ors who can confirm ideas, positioning, information and reputation about brands.

If brand communications spending is truly about changing attitudes and behaviors, then this idea is mission critical to achieving your ROI objectives.

Your thoughts?