Tag Archives: Marketing and Advertising

Messing Up Moviepass

Do you have MoviePass? I do and I think it’s fabulous. For roughly $10 a month (about the cost of a ticket here) you can go see one movie a day as long as they’re not IMAX or 3D. Too good to be true? It really seems that way but I’ve never had an issue using it.

You might be asking yourself how do they stay in business? Lots of other folks are asking the same question since I gather they have to pay the theater the full price of admission when you use the pass. I go to an average of one movie a week (4/month) which I gather from this article on Recode is more than average. They’re recently starting charging a premium if you want to see a very popular movie right as it’s released, but that’s a minority of what’s out there. Still, they must be losing money on most users so how do they stay in business?

In a word, data. I go to see some movies in the theater that I might ordinarily wait to see on pay cable or via streaming. I often hit the concession stand, which is where the theaters make most of their profit. Good deal for them, right? Where Moviepass is thinking they’ll make their profit is from understanding the moviegoer and selling that data. That’s why they’re so inexpensive – to scale quickly – and they’re hoping to become so ubiquitous that they end up getting a cut of the increased attendance they are generating (the 3 extra trips to the theater I make in a month!). With me so far?

A friend of mine also has a Moviepass that she was given as a gift. Her 6-month gift ran out the other day and she went to renew. Here is where the fun begins and where we all can learn a little something. There is no way to renew a gift subscription. Seriously. She wanted to convert the gift to a regular subscription on her own credit card and Moviepass won’t let her. Instead, they require that you start all over and create a new account using a different email. Let’s think about how many things are wrong here.

First, you’re a data company. By demanding an existing customer start all over, you’re blowing off all the data you’ve collected on them to date. Second, since Moviepass requires a physical card to work, you now must issue a new card. Besides being an expense for you (create the card, ship the card, etc.) it’s extremely inconvenient for the customer. Third, I’m anticipating that since an account is married to a device, there will be an issue when she gets her new account and tries to tie it to her existing phone. You can’t use your pass without using the app and the app is tied to a device and your card. There isn’t a single reason I can think of that makes this a smart policy.

This silliness has forced many customers to reach out for customer service (a cost!) and from the heated postings on Facebook, Reddit, Twitter and elsewhere, it’s resulted in a lot of lost business for Moviepass. One of the main advantages of the digital world is how there is far less friction in many transactions. Online commerce brings your shopping to you and you never leave the house to lug stuff home unless you care to. Moviepass seems to have found a way to increase friction among its existing customer base – those who received gifts and want to remain as customers. Not very smart in my book. Yours?

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Filed under Consulting, Huh?

Building A Disaster

Have you heard about the Build-A-Bear fiasco? Build-A-Bear Workshop declared last Thursday “Pay Your Age Day.” Customers could come in and build a bear at its workshops across the U.S., Canada and the U.K. for the price of their age rather than the $50+ it normally costs. Not a bad deal if you’re an 8-year-old or even a 35-year-old parent. The response was overwhelming, with mile-long lines in some places. According to The Washington Post, some waits were seven hours long.

It’s great that there is a large, enthusiastic audience wanting to build these bears, but that’s about the only ray of sunshine here. Some stores gave customers who were turned away a $15 voucher. As a parent, I can tell you that the voucher does little to placate a disappointed child. They were counting on a new furry friend. Many of the ones turned away were members of their Bonus Club, a frequent buyer program, already and others had to join to get the discount. In other words, their best customers. Yikes!

The CEO went on TV and said: “There was no way for us to have estimated the kind of impact, those kind of crowds.” He added, “We did put a notice out for people that we thought the lines could be long, and we worked with the malls, but it was beyond anything we could’ve ever imagined.”

That’s the point for any of us who run promotions. You need to imagine what an overwhelming response will do to your operation. In this case, maybe they should have had people sign up to take advantage of the promotion in advance (and get their emails as a bonus) to get places in the line, much as one does at a concert to get in “the pit”. Maybe extend the promotion for a few days to let those people into the store at predetermined times. Heck, maybe take space in unrented stores in the mall and add capacity. Be creative, consider lifetime customer value, and spend what you need to in order to prevent a disaster.

No good deed may go unpunished and companies that disappoint their best customers rarely go unpunished as well. You with me?

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Filed under Consulting, Huh?

Bad Boys And Brands

Happy Foodie Friday! There’s been a food-related story making the headlines this week and I think it reflects something that can be useful to any of us in business. The founder and chairman of Papa Johns Pizza had to step down this week after he admitted to using the N-word in a company conference call. It has sparked a public relations crisis and it’s not the first one his actions have caused. You might remember that he also weighed in on the controversy surrounding NFL players and their kneeling during the national anthem. While he certainly wasn’t the first sponsor to criticize a league, doing so over an issue that went way beyond the league itself resulted in a public relations issue for the brand.

While I’ve never been a fan of Papa John’s pizza, his bad behavior made me all the more certain I’d never eat it again. One person whose food I am a fan of is Mario Batali. Even so, I’ll not be going to any restaurant associated with him. His bad behavior caused him to “step back” from his restaurant empire following the first public allegations of sexual misconduct. That was followed up by a 60 Minutes story. Even so, he hadn’t completely divested himself of a financial interest, and that certainly affected the brand, so much so that three of his restaurants on the Las Vegas Strip are set to close even though they were doing well.  The local partner in these restaurants, Las Vegas Sands Corp., decided to end the relationship with Batali’s organization.

Why do I bring this up? Because every one of us in business is a celebrity on some level. We might be nationally known or maybe it’s just our customers, partners or employees who consider us famous. Our actions can enhance or damage our personal and corporate brands every day and we need to remember that no incident remains quiet or hidden for very long. Nearly every person is holding a camera and a video recorder in their hands and bad behavior rarely goes unnoticed or unpublicized.

There was a restaurant I patronized on a regular basis. The food was OK if unextraordinary, the prices were reasonable but the owner was a great guy. I loved spending a little while with him every time I went and I kept going back because he took great care of me as well as did good things in our community. We are our brands, and how we act can damage that brand as badly as a misplaced ad or a faulty product. Enjoy your weekend!

 

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Filed under food, Helpful Hints, Reality checks

Quit Nagging Me To Death

I’ll state at the outset that I’ve always had a thing about being nagged. It’s probably a mother issue that stems from my tendency to procrastinate or maybe I’m just a rebel at heart. Either way, I don’t like being nagged. You probably have some sensitivity to it yourself.

With that in mind, I’m here to remind all of us that nagging is just as bad as a marketing tactic. Instead of the desired result (a sale), it might lead to the exact opposite (a cancellation, a return, or a vow never to do business with you again). Let me give you an example.

I received yet another email the other day from one of the golf publications to which I’ve subscribed for at least a decade. The email said in big bold letters that

This is your LAST CHANCE to renew your subscription and give a FREE gift.

OMG! I don’t want to miss an issue so I’d better renew right now! Except it’s a lie – my subscription doesn’t expire for well over a year. I went back and looked in my email trash and on average, they send me an email every 3 days urging me to renew. This is on top of the physical mail they send enclosed in an envelope with each month’s magazine as well as the occasional piece of stand-alone snail mail. Enough! Basta! Genug!

Fortunately for them, I enjoy the publication so I’m not going to cancel, but there are a few things any of us can learn from their constant nagging. First, I’ve become numb to whatever they send me. I toss the snail mail and I delete the emails, unopened. I can read the mailing label to see when my subscription really does need renewing. Second, the offer they’re extending really doesn’t benefit me. It’s not a particularly different renewal rate and none of my golfing friends are musing that their lives would be better if only they had a subscription to this magazine. It only benefits the publication – they get a renewal and a new subscriber at a low cost of acquisition. Presumably, they’ll start nagging my friend soon after the first issue arrives.

This publication is far from the only nagger in my life. Amazon’s daily emails, several golf schools, and many others continue to send me nagging messages every day. I do unsubscribe, of course, but new naggers seem to take their place. The messages seem cold and impersonal to me since most of them aren’t personalized beyond the name. I appreciate that people who put things in shopping carts and leave your site might need a little reminder to finish their order or that when you truly have something special going on it’s to the consumer’s benefit to know, but the daily barrage of crap just makes people numb at best or angry at worst.  Deliver value to the consumer. Educate them about your product without nagging them to buy. Explain the benefits in their terms. And don’t nag. After all, nagging is the leading cause of divorce and you can’t have customers divorcing you! What do you think?

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Filed under digital media, Huh?, Reality checks

The Company We Keep

I’m sure you heard the same thing from your parents as I did. Don’t hang around with a “bad” bunch of kids because you get known by the company you keep and their lousy reputation will stick to you whether or not you’ve engaged in the same bad behavior. You probably haven’t thought about that quote in terms of your business but there are some things going on these days that might cause you to do so. Let me explain.

If you’re a brand (and every company is) and especially if you’re the person responsible for marketing that brand, you’d have to be under a rock not to be aware of what’s going on with social media and data protection. I’m not talking about hacks in which data is stolen. I mean the willful use of your private data by these companies as part of their business model in ways that you never contemplated nor to which you explicitly agreed. I received an email the other day from the folks at Business Insider which contained some of the results of a study of confidence in social media companies’ ability to protect users’ data. The study was conducted among their “BI Insiders” (disclosure, I’m one of them) and the results aren’t great news for Facebook in particular:

Over half (56%) of Facebook users have zero confidence in the platform’s ability to protect their data and privacy. This was the lowest level of confidence of all platforms and highlights the uphill battle Facebook faces to regain the trust of its users. To be fair, users weren’t all that confident in the other platforms either, but the gap between Facebook and the others is significant — at least 18 percentage points from all other platforms. Meanwhile, LinkedIn came out on top for the second year in a row.

The problem for you is that your mom was right: you’re known by the company you keep, and if your brand is active on these services, your reputation is damaged as well. According to the Edelman Trust Barometer study...

Consumers are not forgiving when it comes to brand safety. About half of the survey’s respondents said that it was a brand’s own fault if its advertising appeared alongside hate speech or other inappropriate content online; 47 percent said that the points of view appearing near advertising and marketing are an indication of that brand’s own values.

This is what I found to be of great importance to any brand:

70 percent of digitally connected people around the world think brands need to pressure social media sites to do more about fake news and false information proliferating on their sites, and that 71 percent expect brands to pressure social media platforms to protect personal data.

In other words, if you’re keeping company with social media and they’re misbehaving, you need to exert the influence you have as a client and get them to change. Leave the platform if you must to get their attention – that’s what consumers are doing. If you don’t, you’re risking getting blamed for their bad behavior.

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Known Side Effects

I watch a lot of news on TV. If you do that, you are inundated with ads for drugs that promise to cure everything from asthma to zits and everything in between. One thing that most of these ads have in common is that a significant percentage of each ad drones on and on about potential known side effects. The side effects often are quite serious and death is sometimes one of them. Then again, I guess death cures the disease.

I thought about side effects this morning as I was reading my usual collection of articles about the media and marketing businesses. There have been an awful lot of changes, some for the good, many for the bad. Nearly every one of them has some side effects too. On a most basic level, it’s great to stay in touch with family and friends via social media, but a known side effect is the reduction or disappearance of your privacy. It’s wonderful to have a communications device on you but a known side effect is that you’re tracked everywhere by your phone provider and everything you do with that device is watched and recorded. But those aren’t business issues.

Take, for example, what’s going on in TV sales at the moment. The digital revolution brought with it programmatic buying and selling. In theory, this made the entire process quick and way more efficient. It also had the side effect of advertisers and publishers paying huge “tech taxes”, fees to the providers of the technology that runs the process. Another side effect is rampant fraud and an overall increase in the number of bad actors who suddenly found a way into what had been a relatively closed process.

TV buying and selling are suddenly undergoing the same sort of change. Having sold TV for many pre-digital years, I think many of the same side effects will manifest themselves as the closed, carefully run process opens up. Of course, the biggest side effect will be yet another purge of salespeople and the failure of many rep firms. As eMarketer reported:

Overall, 46% of respondents felt that the tech advancements happening in the TV industry are a threat to their organization’s existence. Again, the fear was highest among reps, with 87% saying that tech changes threaten their firm. There is no doubt concern that the expansion of programmatic TV could extinguish traditional methods of brokering inventory.

TV reps as coal miners? Who would have thought that? Then there are the so-called influencers. The movement to trusted voices as sources of product information is, I believe, generally a good one. The problem is that word “trust.” Fake reviews run rampant. Since influence is often measured by the number of followers, fake followers and/or bought followers are a massive problem. The side effects of establishing trust are numerous and can potentially make the marketing challenge worse if they’re ignored. 

The cure is sometimes worse than the disease. It’s worth remembering that and searching out the possible side effects as we make our marketing and media plans. It’s great to become more efficient but not at the expense of killing the patient. Make sense?

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Filed under digital media, Thinking Aloud

Tomatoes, Bugs, and Nannochloropsis

Foodie Friday, and today we’re having a think about the food of the future. I don’t think it’s news to anyone who pays the least bit of attention to the world that humankind’s ability to support itself is in peril. CNN said it well:

We’ve gotten ourselves into some trouble. Our dining habits are a big part of the problem. The average American male consumes 100 grams of protein daily — almost double the necessary amount. This overconsumption isn’t sustainable. The United Nations projects food production will need to increase as much as 70% by 2050 to feed an extra 2.5 billion people. To survive, we need to reinvent the way we farm and eat.

Exactly, except that some of that reinvention, while packed with nutrition, is…well…gross. I know that I’m applying my American diet standards here but how would you describe eating bugs or algae? We have plenty of both, both are sustainable sources of protein, and both reduce the impact we’re having on our planet. Cricket anyone (and I don’t mean the game!)? How about a nice plate of nannochloropsis?

There’s a great business lesson in this. To understand it, let’s look at another food that was once anathema to most Americans: the tomato. That’s right. Until the early 1800’s, the tomato was grown purely for decoration in this country because it was considered poisonous. What happened to change its reputation and make it a mainstay of our diet? There are several theories, including one involving Thomas Jefferson’s promotion of dishes using the tomato. I think it has to do with immigration and the fact that European immigrants used the fruit (you know it’s a fruit, right?) in their cooking. Whatever it was, people overcame their fears and began consuming tomatoes en masse.

If I were marketing bugs and slime (OK, it will probably be protein derived from those things made into other food products), I’d do a few things. First, I wouldn’t deny that there might just be a perception problem. No brand can deny its past. I would aggressively try to control the conversation and the message. That means a lot of marketing, especially through influencers and social channels. I’d research the heck out of consumer attitudes on a continual basis and I’d avoid making emotional responses to misperceptions, focusing on the data. Mostly, I’d do everything I could to get the products sampled and I’d use the testimonials along with the overall message that these products are saving the planet by decreasing the need to rely on other protein forms that are inefficient at least and detrimental at worst to the environment.

When I was a kid, the notion of eating raw fish in this country was nonexistent. I’ll bet many of you did just that this past week. There just might be a bug in your future once some smart marketers get to work. What do you think?

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Filed under Consulting, food, Thinking Aloud