Jaffe Juice

JJTV #103 - Delta Skelter turns 2

I had a bad experience on Delta 2 years ago. I haven't forgotten. Although apparently Delta has. Happy Birthday.

PS It's not too late to win me back

PPS I'm not the only one to have a bad Delta Skelter Experience

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Jaffe #102 - The Mayor Of Frappuccinoville

Starbucks boldly checks-in where no brand has checked in before with a nation wide promotion using location-based MoSoSo player, FourSquare, in which mayors of their respective stores can unlock codes to get $1 off a Frappuccino.

Overall, kudos to this brand that is demonstrating first hand that Social Media Adoption is Addictive.

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JJTV #101 - The social media success that is the Roger Smith Hotel

The power of advocacy, retention and word of mouth in action for the Roger Smith Hotel and how authentic connections (as opposed to tools) helped an otherwise unknown hotel become a Social Media Mecca.

This is my conversation with Brian Simpson (@bsimi on Twitter) at the launch party for "Flip the Funnel" at - where else - the Roger Smith Hotel.

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Jaffe Juice Overdose?

Never!

...so here's a summary of a variety of places and spaces I've been spreading the juice of late:

1. A terrific interview with destination CRM/CRM magazine on "Flip the Funnel"
2. Marketing podcast, The Beancast - the latest episode just posted in which host Bob Knorpp and panelists, Ken Wheaton, Erik Proulx, Jeff Cutler and myself discuss Facebook's location-based announcement and privacy in general, TBWA\Chiat\Day's digital stumbles, whether mobile has arrived or not...and much more
3. Poolside chat with David Armano (@armano), where we discuss thought leadership and the difference between "thinking" and "doing"
4. It's becoming a regular for me....my third appearance on Small Business Advocate with host, Jim Blasingame. We discuss community, leveling the playing fields and more.
5. Marketing over Coffee podcast conversation with host, John Wall. We discuss "Flip the Funnel"
6. A great review of "Flip the Funnel" from Patrick Reyes. Be sure to click through to the Saturn example
7. Also how about this great merchandising of "Flip the Funnel" which - unbeknownst to me - was created by Readitfor.me

The Juice on the iPad

“It’s like a giant iPhone, except without the Phone,” is probably not that an inaccurate description of the much hyped and it must be said, initially fairly criticized device. That of course was before it came out. About 300,000 people (in this economy) ignored any speculation and purchased the giant iPhone-without-the-phone within the first few days of its retail existence. And now 1,000,000 “early adopters” have followed suit.

If I’ve learned anything in my hate-to-love and love-to-hate relationship with the brand, it’s this, “never…and I mean NEVER write off Steve Jobs, Apple and anything they release (or unleash) on its denizens.”

Truthfully, you have to hold the device in your hand to appreciate what it is. If you’re Jeff Bezos, you’re probably not the happiest camper. If you’re anyone else in the space you should be significantly less happy than Jeff (at least he has a bookstore to support his device – not like iTunes or the App store). Think about it for a moment: how was it that until now, there wasn’t a single large-enough, full color, multimedia portable (read: lightweight) device on the market? Not one. That’s what the iPad brings to the table in terms of have-to-haves. On the nice-to-have front, touchscreen and wi-fi make it even more compelling from a user experience.

I’m not boosting this at all (even if it seems that way). I’m just calling it for what it is. A pretty cool all-in-one e-reader, “portable DVD player”, gaming console, digital photo frame and jukebox. And in the case of the latter three, it’s not exactly best in class in terms of practicality, usage and capability. Which leaves us in essence with a pretty nifty portable alternative to TV and as I’ll get to shortly, even magazines.

On the plus side, the iNtegration with iTunes and the Apps store make for another seamless and clean synchronization with Apple’s continued push to own, bundle and dominate the mobile market. Yes, you heard me correctly…Apple is very much a mobile player and operating aggressively to lead this market[1]. From a practicality or usage perspective, expect many people to watch video (movies, TV, YouTube etc) lying down on their sofa with their iPad nestled neatly on their legs. To that end, expect an irresistible surge of innovation, creativity and even support on the accessory front that will make the impractical, practical and the impossible, possible. From hooks that allow your iPad to hang onto the seatback of your next flight or stands to support the digital photo frame functionality (which already exists by the way)

Like the iPod Touch and iPhone, the iPad community will step up to provide context, content and most significantly, the platform upon which to grow the equity and value exchange associated with the investment. It’s Crowdsourcing Apple style.

But before you run out and overspend, here is – in my opinion – the sinister underbelly of the iPad:

1. The iPad is way overpriced. An entry level $399 for literally the “bottom of the range” version make this a nice-to-have versus a have-to-have. Although it’s not a NetBook (nor does it profess to be), a consumer with $399 to spend would most likely be best suited to invest in a laptop or NetBook versus the bright and shiny iPad. I also think there’s going to be a tremendous dissonance associated with the first-mover-advantage premium paid to get in early on the iPad rush. Apple has already demonstrated a little too much eagerness when it comes to subsequent releases. Many (the wise ones) will hold back and wait for the next generation iPad which irons on various bugs, kinks and gremlins.
2. There’s an “iPad Tax” which seems to be synonymous with good old fashioned greed amongst developers. iPad applications are currently being developed for the iPad “in HD”, which is just a codeword for, “let’s charge significantly more for the same application because the screen is bigger.” Consumer backlash will probably help to equalize or normalize this egregious premium.
3. Another ridiculous premium is the additional/incremental fee for 3G usage. I’d like to ask why Apple and its 3G carrier partners don’t create an “all in” or “all-in-one” fee for iPad customers who are also iPhone customers. Unfortunately, I know the answer as to why there aren’t price breaks or built in tethering to support the synchronization of bundled devices. To counter this greed, many will “jailbreak” their iPads in order to tether them to their iPhone or similar 3G devices.
4. Screens are going to break. The bigger they come, the harder the fall.
5. The iPad will not save the magazine industry.

Don’t get me wrong – there is nothing until this point that has allowed as rich a digital magazine consumption experience as the iPad will allow. Not even close. A company called Zinio tried to create a similar experience on PC’s, but do people really want to read magazines on computers? Is that what they’ve been waiting for all this time? Is that the reason why magazines have been going out of business?

Personally I think magazine’s killer app has always been the ability to be read on a toilet and I’m hoping the iPad doesn’t resonate here, but on a more serious note the magazine and newspaper industry are going to lead the hype bandwagon with respect to the iPad. No doubt the ability to add in video, multimedia and other interactive components to the magazine experience will leapfrog the magazine business into the digital (and even social) era, but isn’t that what they once called websites? In addition, the real debate here will be an economic one; a numbers one – the million dollar question will be to what degree customers will PAY for their magazines on their iPad (and secondarily, what this fee – or heaven forbid, premium – will be) versus getting them for free in exchange for…advertising. In the case of the former, will people turn the pages any slower to avoid the advertising they were already avoiding or will the advertising become smarter, more engaging, more targeted and more valuable? That’s another million dollar question, but is it in fact irrelevant?

1,000,000 iPads doesn’t mean 1,000,000 subscriptions to the New Yawn Times or Vanity Fail. And even if every single iPad reader did pony up for a suite of magazine subscriptions, there are way too many to go round and way too few eyeballs to meet them. In other words, a short term band aid solution to massive continuing hemorrhaging circulation drops.

For what it’s worth, the battleground for the beleaguered print industry will be an economic one. Ala carte pricing or micropayments for extremely targeted articles, news and information may take the magazine and newspaper business in the same direction the music business is heading and the Cable sector will soon be heading.

…and if all else fails, there’s always giving away the content for FREE (gasp).

All in all, the iPad will usher in a rich and immersive mobile consumption experience and will ultimately become the one multimedia portable device to rule them all. The kinks will be sorted out and the base will grow. And as long as Apple doesn’t lose its focus and yield to the “Jack-of-all-trades” temptation, it will lead by example (especially with its iTunes-App Store vertically integrated feeder). In the various other categories (e-reader, video player etc.), the number of contenders will fall like flies, but expect one (maybe two at a push) leader to still prevail as a best-in-class specialist (I’m looking at you, Kindle!)

Finally, don’t be surprised if we begin to see a pricing normalization or equalization to “give back” to loyalists and early adopters, and recognize the investment into the iBundle.

So how can you take advantage of the iPad as a brand? Here are 5 thoughts:

1. I wouldn’t bet the farm on the iPad just yet. The reach just isn’t there. Put differently, if you haven’t invested in an iPhone App right now, that’s the place to start. That said, it’s not the worst idea in the world to begin planning ahead for a time when enough of the people who matter to you are taking advantage of rich, immersive and mobile multimedia experiences on screens larger than the Palm of your hand.
2. Think like a publisher. Apple has created a well-oiled vertically integrated machine that will allow you to be a true storyteller (finally!) and who knows, maybe even sell more stuff in the process. Why try and make the most of your “print advertising” i.e. enhance your flailing magazine and newspaper adspend, when you can serve up the entire experience? Content is King. Who knew?
3. The return of podcasting: what was once a subscription-based “video podcast” living on the outskirts of Fringeville is now front and center. The team over at “Will it Blend” are going to spend less time destroying iPads and more time delivering their compelling video through them!
4. Another unlikely comeback is going to come from the Convergence camp. A magazine is no longer a magazine, especially when it has interactivity and video. The same applies to the opposite end of the spectrum i.e. the medium formally known as “television,” especially when a viewer can become a reader at the swipe of a finger, and in doing so, learn or find out more; become better informed, educated and informed. This is a boon for the pharmaceutical space for example. On the flipside, convergence generally fails. I’m just sayin’…
5. The Creative Renaissance that began with the iPhone App store is going to get a whole lot bigger (but not necessarily better). New rules. New context. New usage scenarios may tweak the formula, but the end product is going to be even more consumer empowerment and utility. Brand have a lot to contribute and gain here.
6. Bonus: This wouldn’t be complete without a “Flip the Funnel” reference that goes beyond brand promises to actual customer delivery, service and experience. The stakes and potential are even higher here when companies can reward and recognize their existing customer base and subsets of loyalists, influencers, advocates and ambassadors.

As for me, I can’t help but laugh a little at the self-proclaimed early adopters lugging around their oversized iPhones. Silly little geeks. And I say that endearingly. You don’t need to try so hard to be cool.

So, I’ll be waiting for the second generation iPad, which should tell you something.

Fortunately, it will probably be announced by the time you read this Point of View.

[1] Credited to Peter Shankman in a conversation on marketing podcast, “The BeanCast”

The Real Role of Social Media

My TV appearance on First Business, where I was interviewed by Paul Eggers discussing social media, commitment marketing, customer service and "Flip the Funnel".

Find out more at www.flipthefunnelnow.com

“Flip the Funnel” for the automotive sector: How retention can become the new acquisition for the auto industry

These days it would appear that the only “flipping” involved in the automotive sector is that involving the bird. With the hangover of both a series of seemingly endless recalls and an unprecedented bailout still not completely over, consumers are more skeptical and wary than ever before of an industry that seems hell bent on breaking promises en masse.

And yet there are glimmers of hope. Ford. A forward thinking and progressive Hyundai. A resilient and gritty General Motors (ever thought they’d be considered a challenger brand?)

And then of course there’s the fact that people still need a large piece of tin to get them from point A to B. No beaming any time soon, Scotty.

That said, this is a business that understands being turned on its head all too well. Quite literally flipping a gas funnel might not exactly be the worst thing in the world, especially as we usher in a new era in automotive led by a greener and socially conscious fleet of hybrid and electric vehicles.

Perhaps now would be a good time for the automotive sector to put their collective feet on the proverbial gas pedal of customer centric service and give itself a complete overhaul or redesign of the customer experience.

Instead of “ending” all outreach efforts at the point of customer purchase, why not use this moment of truth to kick relationship building efforts into high gear? For some reason, most auto brands become goldfish the moment their customers drive out of their showrooms with their new leased car. Out of site. Out of mind. Instead of waiting three years in the wishful and borderline delusional hope that their customers will come waltzing back in order to facilitate a painless and quick swap, why not think of the three years of time that elapses between purchases as the beginning of a journey; an ascension of a summit if you will – where the “climb” is quite possibly as fulfilling as reaching the apex itself?

Sherrill Freeborough, the owner of two Saturn dealerships in Lansing, Michigan, was known as the “Saturn Lady” based on being a “different kind of dealer” known for her deep-seated commitment to both her employees and her customers. In the wake of the Saturn brand’s discontinuation, she is migrating over to a Hyundai dealership and hopes her customers will follow her. Think she’ll be successful? People don’t care how much you know, until they know how much you care…

The traditional marketing and sales funnel focuses all its time, effort, energy and budget on the wrong end; but what if we flipped it on its head and focused on building the kind of momentum, credibility, rapport and trust that is inherently “sticky”, sharable, buzzworthy or viral? Here are just a few thought starters drawn from the Flipped Funnel as to how an auto brand – led by the human face behind the brand, led by the salesperson – can not only keep the relationship going, but growing as well:

Acknowledgment – everything from courtesy follow-up calls to period check-ins; calls on birthdays; updates on new accessories, technology patches. And then again there are the two most powerful words in the English language, “Thank you” (there’s also I’m sorry but that’s another story for another day). The other day I went into a local bank to apply for a loan. My contact made a point to introduce me to the owner of the bank. When last did you meet the owner of your local dealership? Do you even know who they are? Or more importantly, do they even know who you are?

Dialogue – Does your local salesperson have a Facebook page? Maybe they should? What about the brand itself: are they active on Twitter? Does that even mean anything? More importantly how do they escalate or route queries or concerns to the right and relevant parties?

In the automotive world, there is a gaping chasm between sales and service (support). This needs to change. Not only should sales and service be connected and integrated, but I would argue that sales needs to lead the relationship itself. Think of the salesperson as an Executive Sponsor of the relationship. Part of this process will involve a bold and dramatic restructuring of bonus and compensation plans, together with a redistribution or prioritization of time allocation and investment.

As per the new rules of customer service in Flip the Funnel, customer service is not only about solving problems; and it can be a revenue generator: when a customer comes in for a routine service (especially in the final trimester of their lease), why not have a brand spanking new model waiting for them as a loaner?

Incentivization – we’re now moving from the “retention” part of the flipped funnel to the “new acquisition” phase. This is where a business can be grown from the inside-out, with the power of word-of-mouth that recognizes that customers are the true influencers; and not some irate and disgruntled, gown-wearing blogger with a big audience. What would happen if every customer were rewarded in some way by creating a video review of their vehicle? Is there currently a referral program in place that recognizes the persuasive efficacy of a credible and authentic recommendation? When a potential customer is interested in a vehicle, how much more effective would it be if they could connect directly with a “fleet” of past and current customers “just like them”?

This is where the final phase of the funnel kicks into high gear: Activation in the form of a customer centric branded community which connects not only prospective buyers with existing ones, but more importantly connects current customers with “fellow customers”; employees with customers; even employees with fellow employees. A place – or space – that delivers against real passion; that’s more about the journey and less about the destination.

I’m still waiting for my invitation to an advanced driving school or the ability to take my car on a real race track. I’m still waiting to be transported beyond a functional product or a gushy, emotional brand to become part of a connected experience. I’m sure as hell not going to get this from a monthly customer magazine.

I'm still waiting....

I believe that customer service (or servicing customers) will ultimately be THE difference that separates the winners from the losers in the coming years. As loyal as I am to my Audi, I can’t rule out the possibility that one day I will give my business to the company that wants it the most and that offers me something over and above the MSRPE (Manufacturer Suggested Retail Price, whereas the E stands for Expectations, but it can also stand for experience).

To synthesize:

1. Invest in the time between purchases, not the purchase time(s); recognize the power of the returning customer; all customers are equal, but some are more equal than others.
2. Qualify and quantify the networked effects of word-of-mouth and deploy a “recognize and reward” customer activation program that values and monetizes referrals.
3. Upgrade customer expectations based on loyalty, tenure, value and influence: transform advocates to ambassadors. American Express has “member since”; American Airlines has “million milers”; what kind of status is afforded to automotive customers?
4. The Voice of the Customer has never echoed so loudly in the automotive sector; the next generation of cars may be born from the driver’s seats of your own vehicles; close the loop and integrate your most innovative customers’ sentiment, ideas and innovations into the very R&D process that powers your brand.
5. And above all…NEVER forget the power of retention. When times get tough, turn to your customers for support, understanding and patience. By communicating “early and often”, there never has to be a “crisis” in communication in this industry again. Never.

In an industry that is fixated on technology – now more than ever before – the opportunity to turn convention on its head has the unique potential to breathe some life back into an otherwise tired and under duress business. It all begins with human beings that service other human beings; after all, we might buy cars, but what we truly buy into is the passion of those who are behind them.

Related article: How Toyota can Flip the Funnel

JJTV #90 - Too Fat to Brand

A final word on the Kevin Smith - Southwest - Too Fat to Fly Kerfuffle from a branding standpoint.

In this episode I wonder whether Kevin Smith comes out of this as the "Biggest Loser" from a branding standpoint, forever being synonymous and/or associated with his weight as opposed to being remembered for all the right reasons (his filmography etc)

Did he take it too far? You decide.

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JJTV #88 - SxSW Redux

My thoughts from my virgin visit to SxSW:

1. The surprising at&t coverage (and reasons why...)
2. Has SxSW jumped the shark?
3. Invasion of the Marketers (coming soon...)
4. Content is Clown
5. It's all about the relationships

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Thank you to HP for sponsoring this show.

You're invited to participate in HP's Employee Purchase Program (EPP) for friends 'n family discounts on the full portfolio of HP and Compaq consumer products. Here's what you need to do:

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What we have here is a failure to understand

No doubt you've probably been following the latest brand social media kerfuffle or perhaps I should say, "scuffle" with Nestle and their Facebook wall. 

In one of the many trade articles written on the story, one particular reader comment caught my eye (see below). It is this comment that in my opinion is the real reason why these kinds of missteps are occurring. The reader in question demonstrates an acute lack of knowledge and understanding of the current landscape, the changing relationship between brands and their communities, the increasing expectations and demands that consumers have from the companies they buy from and without question, the new consumerism or customer activism that continues to sweep through markets as we know them.

By Felliott | Shawnee, KS March 19, 2010 04:27:52 pm: Every time one of these social media shitstorms flares up, and the twitterati grab their pitchforks, the picture becomes more clear: Brands are the cool adult down the street, who don't have kids but who let the neighborhood kids play in his yard anyway. Once upon a time, when one of the kids go out of line, it was perfectly acceptable for the homeowner to say "that wasn't cool, now get the hell off my lawn", and the other kids thusly knew their boundaries, if social convention hadn't already prepared them. But NOW, in a day when the kids all have megaphones and a sense of unassailable entitlement, the new social order is that when one of them lights a bag of dog shit on the homeowner's front porch, the homeowner is supposed to proclaim what a funny little kid he is. When one of them spray-paints grafitti on his garage door, the homeowner now has to praise him for his edgy creativity and create a contest asking all the kids' friends for more of the same. When they stomp his garden and call his wife a whore, he's supposed to respond very sweetly and say "my, my, you are an intelligently creative lot, thank you for contributing". Is that about it? Can we cut to the chase? If he doesn't respond this way, he's a dinosaur who doesn't get it.

In the particular case of Nestle, they were more forces in play that contributed to the inflammatory situation - with sweeping implications with respect to organizational structure, process, training, empowerment and education. Also, it's nothing new that one person's actions become a face for the entire brand experience e.g. a nasty or rude cashier at McDonalds can eradicate any and all goodwill from "I'm loving it". What is new of course is how this action (in a virtual environment) can have widespread implications or tremors that spread across the entire organization and its entire customer base.

That said, it's not Nestle's situation, nor their response that prompted me to write this post. It's the complete disconnect between the commenter's understanding and perception of the marketplace and ultimately, how brands need to structure themselves to deliver, fulfill and serve their customers accordingly. 

To even remotely portray a brand as "the cool adult down the street" and its customers as the "entitled neighborhood kids" not only misses the point, but also exposes a potentially fatal flaw which could have dire repercussions on BRAND equity, health, reputation and...oh yes......revenues as well.

I couldn't help but wonder if the person behind the comment is either a marketer in charge of curating and shepherding his or her brand or an agency executive that has been hired (or outsourced) to help with this mission critical function.

How many other marketers or agency executives out there do you think share this arrogant, delusional or misguided sentiment? 

Don't get me wrong....consumers who disrespect, degrade, deface or sabotage brand or corporate efforts deserve to be treated accordingly, BUT (and it's a huge BUT), there's a pretty clear line between subversive efforts and everything else (passion, emotion, opinion, curiosity etc) It's not a fine line. It's not an ambiguous line. It's a very clear line and if you can't see it, it's time to purchase a pair of common sense glasses.

Start here: when people (individuals) have ulterior motives - especially ones that are veiled, opaque and/or hidden - that's very different from a person or even a group with an opinion or point of view. Where it gets a little tougher, is when those people are organized in a group and to what degree that group is formalized (organization) versus organic/informal (community).

There's really no playbook when it comes to handling these kind of situations, but a great place to start is at the beginning. Doing something versus doing nothing. But also recognizing that doing something is not always better than doing nothing, especially when the "something" is a chide, rebuke or "get the hell off my lawn."

Bottom line: if you're still thinking of your consumers as spoiled, obstreperous, immature and demanding children, you're probably setting yourself up for a visit from SOCIAL (media) SERVICES.

Get it? Got it? Good!