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Category Archives: Marketing

Loyalty Clubs

There are a number of great movies out for the holiday season and I indulged in seeing George Clooney’s latest movie, “Up In The Air”.  In this unique tome about the transitory state many are experiencing as a result of corporate downsizing, Clooney’s character, Ryan Fitzpatrick, (hired to announce to different firms’ employees they’ve been downsized), crisscrosses the country at 30,000 feet accumulating thousands of miles and resulting points and perks in major travel loyalty programs, for which he is keenly a master and revered member. Those of you who have traveled for your business know the unique ins and outs of airline and hotel loyalty clubs, for better or worse.

I believe loyalty clubs are about more than accumulating platinum status. Many people find benefit in such clubs for a different sense – a sense of belonging.  I had the chance awhile back to visit several wineries in various parts of the country and the world.  Wine is becoming a fun passion for me, and I’m intrigued with the small business that is the family winery.  Like many of us who have small businesses, these wineries are owned by people who come to the business with a love and passion for the product, the industry and the client.  This is a challenging and tough business – one that often stretches and stresses the artful dreamer pursuing the business to the extreme.  I’ve noted that for many of the family wineries, the Wine Club or Loyalty Club is a frequent and great channel for building a following for the winery.

An example of the Wine Club done well is by a small winery in the Finger Lakes of New York called McGregor Wines. At McGregor Winery, the tastings are a little different – instead of standing at a long counter, you sit at indoor picnic tables, with your hosts coming by with wine and cheese. Tasting with you, your hosts come to feel like a friend who is sharing in the appreciation of not just a wine, but an experience that is a unique but familiar connection.  Kind of like connecting with a long lost friend you went to school with.  At the end of the tasting, which last almost an hour but seems to pass too quickly, you’re invited to join the wine club.

As you might expect, their club is actually called The Clan.  And while you don’t get a plaid kilt to wear for your membership fee, you do get a couple of great wines six times a year.  With each carefully packed shipment comes a letter from the McGregors, John and Stacey.  Together they share a perspective of the wine in notes from John and Jeff, the winemaker, on “the voice of the grapes”, that sense of climate and land  and place that is terroir – that so reflects their philosophy of winemaking.  Also, they include several great recipes of Stacey’s for pairing with the wine.  As a clan member, you are always invited to special events at the winery – picnics, harvest celebrations, first barrel tastings and of course, an annual winter celebration of the birth date of legendary Robbie Burns!  These gatherings draw quite a number of “clan folk”, and the photos included always convey the laughter and joy of the day or evening.  And while my Asian ancestry would belie my new Scottish affinity, I’ve come to feel like a kilt and bagpipes guy when I enjoy a bottle of wine from McGregor – that I’m proud to belong. Check them out on the web at: http://www.mcgregorwinery.com/ or visit them on Keuka Lake in the Finger Lakes area of New York on a great weekend getaway!

I’ve told many friends and family about my experience at McGregor – and those that have followed with a visit and eventual entry into The Clan agree: they do a unique job of cultivating a sense of belonging, a sense of community.  The stories that I and my friends who have become Clan kin spread to others is exactly what your small business seeks – positive word of mouth.  In the face of dozens and dozens of choices – whether they be about wine or food, shopping or manufacturing, true advocacy features customers who not only stay with a firm, but recruit others for a business because they feel valued.  And while bad news about a service experience is always easy to spread, a positive advocate is like true gold and lightning in a bottle. True customer advocacy is a customer excited to tell a story about belonging into a community of clients and sharing in a product, service and or experience. People want to share a positive story about being connected. They want to be the one with the latest story about being a club member with a unique benefit. Give it to them!

How do you cultivate membership?

  • Look over that frequent customer list and think about three things you could communicate with them about in the next thirty days. Lay out a four quarter plan for communicating through email or snail mail with your best customers.
  • What “members only” event could you hold to show appreciation and give them a story to share?
  • What “share your story” outreach might you do to gather stories and suggestions from frequent customers?  How could you use those      stories or feature and celebrate them?
  • What perk could you provide to clients who bring three or four friends to experience your service or business?

When you think about your loyal customers, craft a strategy to keep them coming back for more, with an eye to giving them something special to spread – a positive message about being in membership with you.  Create connection.  Cultivate membership. Capture loyalty.  Join the Club.



 

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New Rules for Marketing

THE FOUR P’S ARE OUT, THE FOUR E’S ARE IN

Brian Featherstonaugh, Chairman and CEO, OgilvyOne, shares some great thoughts in the OgilvyOne agency update document, Viewpoint, No. 11, 2008

He points out how many of us in marketing grew up with the Four Ps of Marketing: Product, Place, Price and Promotion.  Did you know they were coined/invented in 1960 by Jerome McCarthy, and made leading-edge by Philip Kotler in his book Principles of Marketing in 1967.

It’s long past time we threw away the Four Ps, according to Brian.

We instead need to embrace the Four Es:

from Product to Experience

from Place to Everyplace

from Price to Exchange

from Promotion to Evangelism

Brian’s thoughts:

from Product to Experience

  • we live in a world where product advantages can last less than six months
  • stop thinking just about your product and think about the full experience – the Customer Journey – how they shop your category, who influences their purchase, where and when purchases happen, what happens after they buy, what is the ownership experience?

from Place to Everyplace

  • retail use to be a “place”
  • now, customers create their own paths – what are the full range of possibilities to reach people?
  • instead of interrupting people, we want to “intercept” them – on their turf, on their terms

from Price to Exchange

  • The world is more sophisticated now – it’s not only price and revenue as the exchange for a product delivered
  • Marketers must now understand value – the value customers represent to you, and the value ascribed to your brand and its offerings by you
  • Rethink what you are willing to offer customers in exchange for their attention, their engagement and their permission.

from Promotion to Evangelism

  • Throughout much of marketing’s history,  “promotion” was sufficient
  • Increasingly, we are seeing a new and more powerful approach – evangelism.
  • Creating a mission and brand experience so inspiring to consumers that they engage with you – and share their enthusiasm with others
  • The work Ogilvy did with Dove under the Campaign for Real Beauty was exceptional – it linked together the brand’s best self with a cultural truth about women and beauty to help the business take off.
  • Based on a new Big Ideal: “Dove believes the world would be a better place if women were allowed to feel good about themselves.”
  • Dove engaged women around the world in the debate – A viral video, Evolution, achieved astonishing consumer sharing and free media support it has been seen by over 500 million viewers! The Campaign for Real Beauty has helped Dove achieve record sales.

Read the full article at OgilvyOne Viewpoint

My thoughts:

  • Marketers must be about more than the ad and campaign
  • Success is beyond customer satisfaction – the goal is having customer advocates
  • Their influence transcends product promotion. It impacts product design and includes how the product is researched, evaluated, purchased, consumed, owned and serviced…. it encompasses the ownership journey.
  • Marketing owns the opportunity to create a powerful story for the brand through customer advocacy and engagement
 

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