A Little Tug at Your Heartstrings

One of my favorite new commercials is sweet, simple and fun. A family is celebrating Father’s Day –two young daughters give their dad a new shirt and cologne to make him more fashionable and improve his image. His son comes up and gives him a Hallmark card with the son’s voice saying “I love you just the way you are, Dad!” and then “I Wanna Be Like You” from Disney’s The Jungle Book plays. The whole family laughs and raves about what a great card it is, and everybody’s happy.

It’s more than a little sappy (how many families dance around a table in the middle of the afternoon to a 30 second song clip coming from a card?) – but it showcases everything that Hallmark has to offer.

They have other commercials focusing on how you can give your daughter encouragement for less than a buck, and how you can bring your whole family together with the voice recording cards, even if someone can’t really be at the birthday party.

It’s a fun, positive message and it really appeals to people who want to do something extra for the ones they care about, without having to spend a lot of money. Every company is focusing on value these days, but it’s really nice to see one showing what you easily can do for others.

The main reason for this effectiveness is the emotional connection being created. At their core, people want to be able to feel “warm and fuzzy.” Hallmark knows how to appeal to that desire in a positive way. People buy things from brands that give them those good feelings.  The companies who become associated with positive feelings win.

When creating your next advertising campaign think warm and fuzzy!

What is Your Customer REALLY Buying?

Steak, a new sweater, perfume, sunglasses, a bottle of wine, a new computer…. Retail and restaurant industry professionals could create a list that would never end of “things” their customers buy. However, I would argue there is one thing that ties each of these purchases together and that is the customer experience. Successful business professionals know that their customer wants far more than the immediate product you are offering. They want to feel good and take in the entire experience. Can mostly everyone buy a steak from the grocery store and cook it themselves at home? Of course. At the same time, do people go out and buy a filet for $35 and up? Most definitely. The defining factor in that seemingly “counter-intuitive” purchase is the experience.

I don’t even know how many times I have purchased something, brought it home, and wondered why I bought it. For some reason, it just didn’t have the same appeal as it did while I was in the store. I was buying into the experience.

A great example of a store that knows how to create a customer experience is Bath and Body Works. From the smells, to the decorations and displays, they really know how to get customers caught up in the experience, ambiance, and design of their stores. For this reason (as well as phenomenal branding) Bath and Body Works can demand premium prices for their body care. If Bath and Body Works products suddenly became available at Wal-Mart all the appeal would be lost. People would no longer be willing to pay $10 and up for their favorite shower gel. The price of the product is justified because of the experience the customer receives when shopping at their stores.

How to begin optimizing your customer’s experience:

1) Find out what your specific customers are really buying. Ask yourself what your customer is experiencing when they walk in your door.

2) Talk to your customers. Get feedback from them. Ask them how they feel. More than likely, they will be pleased to help out since you are taking a sincere interest in their opinions.

3) Do not suffer from “tunnel vision.” Gain a clear picture of what is really going on and how it can be improved. Heed the feedback you receive with an open mind.

4) Get your employees on board. Every employee is marketing your business and playing a key role in your customer’s experience.

What a Stupid Idea!

True or False: Good ideas often sound foolish

True!

Let me explain what I’m talking about. Marketing messages and creating positive experiences for your customers can be a daunting and overwhelming task. There is so much to think about – staying consistent, making your messages match your in-store experience, keeping your customers happy, motivating your employees, constantly offering new and improved experiences. For that reason, it is easy to look at what your competitors are doing and form your business’ marketing and ideas into a similar mold.

Afterall, this is the “acceptable” method and “the way things are done”, right?

Wrong!

Just because it has never been attempted doesn’t mean it won’t work. Great ideas often come out of so-called stupid ideas. The only obstacle to conquer is being unafraid to voice them.

This happens all the time at 3^rd Idea. Someone has a “stupid idea.” The rest of us look at each other and laugh. Then say, wait a minute…that might work. What if instead of doing this, we alter it a bit and try that. The “detail-oriented, perfectionists” (which just so happens to be my personality type) has a way of working with the over-the-top-sky’s-the-limit personalities to create a truly unique and creative, yet realistic plan.  The point is, those of us who naturally tend to be more realistic need to allow for those absolutely, positively absurd ideas.

IKEA, known for their affordable, yet sophisticated home furnishings and unique stores, comes up with great marketing ideas all the time. Check out IKEA’s genius idea of creating a 3-d catalouge cover that people could actually get their picture taken in. Talk about creating a memorable and positive experience!!!! I wonder if this started out as someone’s “stupid idea” ….

Coffee and Designer Clothing – Is it the Price or the Experience?

There has been a lot of attention paid to how consumers are reacting to the recession – are they cutting costs universally, or just spending more when they see it’s worthwhile? Consider these examples –

McDonald’s is positioning itself to take over the coffee market. With an advertising budget of $100 million, they want to attract consumers tired of spending too much of their budget on coffee at Starbucks. They’ve been successful so far, and it’s true that Starbucks is losing ground. However, it’s important to consider that while both companies are selling coffee, only one is selling the experience – discussing politics and art just doesn’t work as well in a McCafé, if you ask me.

WalMart and Target are facing a similar battle. WalMart has always competed on cost, and Target has been slightly more upscale, with a focus on quality. Newer WalMart commercials focus on the fact that the consumer is buying the same product that’s offered in other stores (like Target), but that their prices are lower. Target commercials, on the other hand, while definitely promoting value, are trying to raise the appeal of the Target brand. By incorporating high-end designers in their stores with low-cost capsule collections (in housewares, apparel, and shoes), Target is offering consumers a high-quality experience while still offering low prices.

When taking all four of these companies into consideration, it’s important to find which most readily compares to your business now. You might be a McDonald’s, who can take advantage of price wars by offering lower costs in a new market. You could be a Starbucks, who might have to take a back seat during these slow times, but who will remain strong in the future because of your specific appeal. You could also be a WalMart -  a company with a loyal base who comes to you for prices, who can appeal to new customers by offering comparable goods to people looking to cut costs. Maybe you’re a Target – you can improve the quality of your product without raising costs to keep your consumers and attract new ones looking to get the most out of their money. It’s likely that these four companies will still be doing well ten years from now (though of course nothing is certain), and companies can definitely learn from their strategies and differentiation.

By Mary the Intern