Marketer

Curiosity May Have Killed The Cat But Complacency Will Kill The Marketer

Recently I told you of the One Quarter Of American Consumers (who) Are Brand Loyal. That indeed is a very telling statistic which came from a survey conducted by Ernst & Young. Today comes the results of another survey, this one done jointly by Acxiom and Loyalty360, which sheds some light on why so few consumers are brand loyal. And it all comes to down one word.

com·pla·cen·cy – a feeling of quiet pleasure or security, often while unaware of some potential danger

I give you exhibit A:

 

 

That’s right boys and girls, 60% of all the respondents – who were comprised of executives in both B2B and B2C companies from a cross section of industries, dedicate less than 20% of their marketing budget to customer retention.

See where I’m going here with the whole “complacency” thing?

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How should you treat your best customers?

Here’s what most businesses do with their best customers: They take the money.

The biggest fan of that Broadway show, the one who comes a lot and sits up front? She’s paying three times what the person just three rows back paid.

That loyal Verizon customer, the one who hasn’t traded in his phone and has a contract for six years running? He’s generating far more profit than the guy who switches every time a contract expires and a better offer comes along.

Or consider the loyal customer of a local business. The business chooses to offer new customers a coupon for half off—but makes him pay full price…

If you define “best customer” as the customer who pays you the most, then I guess it’s not surprising that the reflex instinct is to charge them more. After all, they’re happy to pay.

But what if you define “best customer” as the person who brings you new customers through frequent referrals, and who sticks with you through thick and thin? That customer, I think, is worth far more than what she might pay you in any one transaction. In fact, if you think of that customer as your best marketer instead, it might change everything.

Seth Godin

Why you may want to know what a wikibrand is

All of you wonderful marketers, public relations, advertising and communications folks out there who have a lock on and already have a dialed in plan for social networking and the impact it will have on your brand and/or business need to read no further. For the rest of you, I suggest you may want to learn what a wikibrand is.

After beginning the book with a short history of on brands and the phases of brand development since 1860, co-authors Sean Moffitt and Mike Dover compare the period of transition to social we are now currently in, to the Mad Men period of transition from radio/print to television.

But the power to be gained by transitioning to a wikibrand mindset really comes from recognizing and developing a better understanding of, then leading your organization across the Marketing Divide (see below graphic). Even more importantly, the book explores how marketers, through leading the migration across this divide to a social future, have the opportunity to again elevate the marketing function to it’s rightful place leading the parade of an engaged and dynamically connected company and it’s community of customers.

The Marketing Divide

Not sure if this is another Mad men reference, but the authors also lay out and detail their FLIRT concept which represents Focus, Language and content, Incentives, motivation and outreach, Rules and rituals and lastly Tools and platforms. This represents the construct Moffitt and Dover recommend to build out a wikibrand and I will leave it to the authors to further convey as they explain fully in the book.

Once you’ve mastered the concepts around flirting, it’s time to get your wikibrand show on the road with what they describe as “Incubating Your Wikibrand Community” including sharing insightful methods for community development, internalization, management and of course measurement & metrics.

Wrapping up, in his Foreword to the book, “Reinvention of the Brand” Don Tapscott suggests this may be a seminal work and I tend to agree. I say this because too many marketers out there are still treating social as an oddity and handling it with their kid gloves. If Wikibrands does nothing else(and it does), it should through the logical analysis and evolutionary brand progression provided, lead marketers still offside with social to the realization that it is far from an oddity, but rather a portal to our emerging future.

Jeff Ashcroft

@TheSocialCMO

Full disclosure: For purposes of transparency, we did receive a review copy of the Wikibrands book.

@DannyBrown to be SPECIAL Guest on #MMchat!

Very excited to relate to all of you #MMchat tweeps out there that the inimitable @DannyBrown has agreed to grace us with his jocular presence on #MMchat on November 1st at 8:00pm eastern!!

And going it even one better, together we have agreed that for the first time, the topic for @DannyBrown ‘s #MMchat will be crowdsourced from all of you #MMchat tweeps out there!

So please send us your suggested topic for @DannyBrown to wax poetic or type frantically about, and he’ll pick the best one for our firehose chat with him on Monday November 1st. Simply @Msg or DM @TheSocialCMO your suggestion by midnight Monday October 4th if you’d like it to be considered. We will of course recognize the selected suggestor and they will even get the honour of posing the first question to @DannyBrown on their topic.

Hope you’re all as excited as I am to have @DannyBrown join us and we look forward to gettng some amazing topic suggestions from all of you who make #MarketerMonday Chat matter! Remember #MMchat makes Mondays MARVELOUS!!

Cheers

Jeff Ashcroft

@TheSocialCMO