Tag Archives: consumer

Brand’s watch out – consumers are getting on the social payback bus

Some call it a new trend, others just a lone payback story – yet a privately bought promoted tweet of a disgruntled passenger of British Airways proved the power a single consumer has gained with the help of Social Media (and granted – some budget to buy a promoted tweet). The customer using the Twitter name @hvsvn seemed to have been disgruntled by BA’s missing service mentality over his lost luggage and has taken his frustration online.

promoted Tweet against British Airways

promoted Tweet against British Airways

To quote one of his tweets “I was about to send them a telegram but then I realised Twitter was faster”, a new area of customer complaints has begun. What started years ago with a United Airlines breaks guitars song, has gone to a new level which should be ringing all alarm bells for brand managers and general managers to check upon their delivered market performance. It also shows how important a working social media crisis management is – besides the basic lesson that a top down communication approach is long gone. It took BA almost 4 hours to react on this tweet, long enough for Mashable to get wind of it and the tweet going viral and even being reported in the news (tv). Although the damage to the brand will be hard to quantify in real terms, it is indisputable that BA’s brand has taken its toll over the last 22 hours – more can only be expected to come.

hvsvn tweet

hvsvn tweet

Tagged , , , , , , , , , ,

how much product choice is too much?

After having listened to Barry Schwartz TED talk (multiple times – if you haven’t CLICK HERE) as well as Dan Gilbert’s TED talk (if you haven’t – CLICK HERE) I couldn’t help it but observe how companies deal with the paradox of choice in a different manner.

From an economic perspective, increasing product choice, assumed costs can be controlled, should make a lot of sense. The economist trained mind thinks of course about a perfect world inhabited by an infinite number of homo oeconomicus, occupying an infinite number of price value points along the price curve, yet for one product class (perfect price discrimination). The marketer on the other hand, will join the discussion and argue that a finite number of heterogeneous target groups exist, displaying however homogeneous needs and wants (the basics of traditional segmentation). The mix of these two worlds is exemplified by Samsung; for the non-trained aspiring mobile phone customer, Samsung offers (at the time of writing) a staggering 145 different mobile phones. Note, this includes various carrier combinations. Switching over to TVs is even more confusing. One has to wonder, particularly after reading Schwarz’s books or listening to his talks, if brands are increasingly hurting themselves by increasing the number of product choices offered to consumers.

just a phone

According to Schwarz, increasing choice for humans lead to several negative effects but most of all a decrease in overall satisfaction which in itself sounds like a paradox, yet manifests itself in the following terms:

Opportunity cost of choice: the higher the number of options, the more attractive the 2nd, 3rd of nth option becomes to the consumer. In other words, with each option the value of opportunity costs increases until, in theory, it reaches a point of paralysed decision making.

Expectations increase: the more choice consumers’ perceive, the higher expectations become. The more unlikely however becomes, that set expectations will or can be met by the current product offering.

Doesn’t it also seem like a paradox to offer double digit product choices in one product category , assuming today’s stressed consumers have both the time and the drive to research product differences. Shouldn’t the smart marketer argue, that in the light of the ROPA effect (read here if you haven’t), diminishing cannibalisation of marketing efforts is hardly achieved with a complex and almost undistinguishable product portfolio? Is it still seen a sign of weakness in our society to reduce offering instead of enlarging the portfolio – after all, who wants to claim product offering declined under his or her reign?! Does it make sense to spread marketing budgets across +100 different product variances instead of focusing efforts to get one product message and positioning right? Wouldn’t it make much more sense to establish one dominant product design and then allow to establish alternative for price discrimination purposes instead of working the other way around: “let’s throw all we have and see what sticks the most – this will be our flagship product”?!

I argue that in the light of big data, marketers should increase their influence on the company’s product portfolio and not only emphasise on social listening post launch but also social rational pre launch.

Tagged , , , , , , ,

Are campaigns dead?

Jeffrey Jones, Target CMO made a blunt but thought provoking statement, recently published in a brandchannel article, by addressing the shift from campaigns to mobile, content and thus in my eyes customer centric marketing.

YouTube Preview Image

“In the past, marketers would make campaigns, they would put them in the world, and they would wait to see what happened,” Jones said in a video released on the brand’s A Bullseye View website and YouTube channel. “In today’s world, it happens hourly. It happens daily. And this is a brand that has such enriched deep content that our guests want to hear from us on. So if we can create content and share content and allow our guests to speak on our behalf, that’s really beneficial for them to deepen their engagement and it helps us amplify our message as well.”

The importance about this statement in my eyes is not the shift from campaigns to customer centricity in advertising but brands and marketing managers starting (could we say forced to by mobile technology and social media) to diss-intermediate in the message to consumer chain. Building up competencies, knowledge and experience in-house is a very important step to owning content and thus gaining control over customer’s brand experience.

The 60′s to the 90′s were the glory days of advertising agencies, slogans got created behind cigarette filled walls in men dominated meeting rooms. The customer was in most cases the least of everybody’s concern – data discrepancy just being one of the reasons.

Will we see more marketers taking on responsibility, diss-intermediating to getting closer to their customers but outsource operational tasks to third parties? Let’s hope so in 2013, I for my part, am in!

Tagged , , , , , , , ,