Tag Archives: brand

So Banks Have Lost Trust…Do They Care?

What a difference a day makes!

In my last post, I referenced the Edelman 2010 Trust Barometer survey. In another example of market research telling us what we already know, financial services (banks, insurance, mutual funds, etc.) came in dead last when it comes to the trust factor. In a nutshell, banks and their brethren have gone from being a necessary evil to potential charlatans. This is the kind of news that can make companies shake in their boots.

When I created the first draft of this post yesterday, I had a very cynical tone about the likelihood that banks would really change. Today, I am slightly less so and here is why.

The New York Times today carried this headline in its Business section: “Bank of America to End Overdraft Fees. This is an example of a bank that is voluntarily and publically taking action on behalf of consumers.

Is this action going to start a trend of banks competing to be the most kind and loving to their customers? Of course not. But it’s telling, and a small step towards regaining some trust.

Below, a reprise of the Edelman recommended actions to regain trust, and my take on each.

1. Work with regulators instead of fighting them. That’s not happening. Consider the words of TARP Chief Elizabeth Warren:

“The reason that we’re not changing things in Washington is that the banks have lobbyists in Washington in numbers I’ve never seen.  They’re coming not just once a month or once a week, or even once a day.  These guys are coming in two, three, four times a day.  They’ve got their position papers, and they just keep slamming in the same direction over and over and over.  And people that want to advocate for American families, that want some changes, or want to level the playing field just don’t have that kind of lobbying power.  And so what we’re really watching here is a David and Goliath story of monumental proportions.”

2. Be honest and transparent in communications. Yes and no. Frankly, a lot of transparency has been forced on the industry. A top example is the Credit Card Act of 2009. How much stupidity, pain and suffering could have been avoided if consumers had seen what I just saw on my Visa bill–that it would take 16 Years!!! to pay off my account if I paid the minimum each month. Why didn’t any single institution think of this themselves? Thus, my skepticism.

3. Focus on quality, not quantity, of communications. Maybe. Banks like to measure things. If they really listen to their customers (and Bank of America gets kudos here), they may realize that they make more “noise” than they need to. Less can definitely be more.

4. Spend less time pushing product and more time providing service. This is the crux of the matter. If banks do this, much of the other problems will retreat into the background. It’s going to be hard to do and it will take time because banks are filled with product managers and sales people, all with individual goals, and frequently a culture that rewards speed and volume over one to one marketing and personal relationships.

5. Engage customers and employees alike. The financial meltdown and the visibility of banks as major contributors to the problem has had a major impact on employees. If they don’t feel good about the company they work for, how can they be expected to engage customers? Banks have the power to do this, but do they have the will?

Only time will tell. My guess? Banks will behave less badly, at least for the next few years.

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Filed under Brand strategy, Employee Brand Engagement, General Marketing

Brand Advocacy the Apple and Amazon Way

Sometimes I get tired of seeing Amazon and Apple at or near the top of various brand rankings. It just seems like a cliche. So I received a much-needed jolt of reality this morning on my morning commute.

I was reading Groundswell on my Kindle. As the train reached 125th St., I noticed my seatmate looking at me. That usually means that the person needs to move past and exit the train, so I asked him if he was getting off. He said that he was actually looking at my Kindle and that it reminded him of his wife’s recent experience with her Kindle. Apparently, she was reading while exercising, and dropped it. Although the device didn’t shatter, the side controls were loosened, and her Kindle was unusable.

Hoping that it might be repairable, she called Amazon customer service. To her amazement, the Customer Service rep said not to worry–just mail the broken Kindle to them, and they would replace it. Two days later, her replacement arrived, with all of the books in her original Kindle intact. My seatmate and I agreed that Amazon was quite generous in their terms.

(In fact, I was curious enough to check out the Kindle warranty on the Amazon site. It is quite open to interpretation, and customer service would be within their rights to claim that dropping it on a treadmill or elliptical machine wasn’t covered in the warranty.)

Continuing on the subject of great customer service, the same gentleman began talking about a similar experience with the Apple Powerbook that he purchased for his college bound daughter. The laptop arrived the week before she was to head off to school in California. When she turned it on, it was clear that something was very wrong with the hard drive. It was now Friday afternoon, and she was due to leave in five days. Her father called Apple customer service in a bit of a panic.

Again, the customer service rep was totally reassuring. The rep informed the father that someone from DHL would arrive at their home by 6:00 p.m. with a box that would fit the laptop, that he ship it back to Apple, and that a replacement would arrive by the following Tuesday. The father emphasized to the rep that his daughter was leaving for school on Wednesday morning, so there was no margin of error.

Sure enough, the laptop arrived on Tuesday as promised. He said that this experience alone persuaded him that a Mac was worth the large price differential over a comparable Dell or HP.

By now, we had arrived at Grand Central Terminal. As I walked to work, it occurred to me that my seatmate is a genuine advocate for both Apple and Amazon. Customers like this is what all companies yearn for. What made both of these examples so great was that it had nothing to do with “features and benefits”. What drove his loyalty to these two technical devices was the interaction with human beings in customer service.

All the brand strategy, advertising, brochures, cool websites in the world cannot improve on the personal interaction with a brand. It is clear that in a purposeful way, both Apple and Amazon create engaged employees. Engaged employees are infectious in the best possible way–they pass along their infection to customers.

My hat is off to both of them.


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The Ten Brands I Give Thanks For

It’s Thanksgiving day, and although it sounds frivolous, I have spent the last few days thinking about what brands I really care about, that make a positive difference in my life, and that perform against higher standards than most. This is highly unscientific, personal, and random. But these companies make products that drive preference–mine at least–and stay the course in an increasingly crowded marketplace.

You will notice that the cool advertising is not  the reason these brands have been chosen. Cool advertising–or any advertising–is not the same as a brand. The same goes for the logo.

The list is in alphabetical order:

American Express For not recklessly pursuing the sub-prime market. For the wonderful Platinum card, which has earned every penny of the annual fee by giving me access to airline clubs on bad travel days. For retaining the original card member year on the face of the card.

Apple For gorgeous design, intuitive controls, and perfection in packaging. For not selling out to Intel’s co-branding dollars and keeping its advertising clean and distinctive.

Bergdorf Goodman For not contributing to the homogenization of the world and maintaining its one, spectacular and historic location. For merchandise that you can’t get elsewhere.

Felco For the best pruners in the world, in all sizes. 15 years and counting.

Google Voted in by my daughter, “because it answers all her questions,” and it’s hard to argue that. Besides, it isn’t afraid to take the logo out for a walk now and then. All I ask is that they stick with their mantra, “Don’t be evil”.

Hershey* For giving new meaning (or the original meaning) to “corporate social responsibility”. For employee retention and loyalty that few can claim. For staying true to its roots, even in extensions like the amusement park and hotel. *If they buy Cadbury and mess with the Trust, they are off the list.

Martha Stewart The brand, not the person. For inspiring me to get back in touch with my inner crafter, and make my home a better place. For an unerring eye for color, composition and quality. For products that are manufactured to high standards.

NPR For miraculous programing that brings a fresh face and point of view to whatever it covers. For Car Talk, Wait, Wait, Don’t Tell Me, Jonathan Schwartz, An American Life, all of which have kept me in my car long past the time for me to get out.

Olay For reinventing itself from an obscure, old lady brand, to a well-priced, well-researched, line of skin care products just before the recession hit. Well done!

OXO For changing forever the experience of peeling a potato–in other words, ergonomic innovation. For standing out among all the endless kitchen tools.

The minute I finish this post, I will undoubtedly come up with other winning brands. I’ll just keep them until next year.

How about you?

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College and University Branding

I am the proud mother of twin daughters, who happen to be in their senior year in high school. Anyone who has gone through the college search process in the last few years is well-aware of the marketing prowess demonstrated by even the most unknown colleges. If you haven’t experienced it, you would be amazed.

Some of this we brought upon ourselves. As neither daughter seemed to comprehend the importance of good grades, we began visiting colleges after their freshman year–hoping to give them an inspiring glimpse of why exactly they were in college prep schools. Those first tours did not have the desired effect. In fact, they might have boomeranged. But not surprisingly, those early schools began to contact us regularly. Impressive follow-up.

Then my husband discovered the book, “Colleges That Change Lives“, which is a cottage industry unto itself. The book is terrific, uncovering some of the best, smaller schools that connect with their students in meaningful ways. The book came first, then the schools seemed to capitalize on it, and thus a specialized college fair was born. My husband and daughters attended one, and at the Cornell College booth, the recruiter knew of their great-aunt Geneva, who had been an renowned English professor there for 40 years. Then they visited the Ohio Wesleyan University booth, where the recruiter had been a classmate of my husband’s (back then a ne’er do well) brother, and remembered him well and fondly. Each school was more impressive than the next. Now the girls were starting to “get it”. What is so interesting about this group of schools is that they have, in effect, created a branded class that in total begins to challenge the commonly accepted top tier of schools.

As a brander, I applaud them. As a mother, I realized that many of them were beyond the academic reach or geographic interest of my daughters. And so we continued to search.

Today’s college fair (if you live near a large city) is an amazing experience. It’s like a trade show, but what is interesting is that everyone plays on an even field. Each school has a table. What they do with their table is up to them, but there is no change to create a fancy two story, over the top, booth. Business could learn a great deal from the “sales” efforts of the recruiters. The best of them have attended the school they recruit for, and they provide detailed, insightful and personal information.

Another great resource is “America’s Best Colleges for B Students“. It’s not as rigorously researched as CTCL, but there is helpful information about how and where students may access academic support and get the tools for success. We found several intriguing schools, some of which cross-referenced with CTCL, which made them even more interesting.

The best schools understand how 17-year olds today communicate, which is not always in a formal interview or a formal essay. Most have FaceBook pages, and they communicate via email–and direct phone calls. Again, this is evidence of total focus on the target audience.

We are far from done. What were the memorable experiences? High Point University, whose president is a businessman who has both a vision and a deep understanding of marketing. It may look glossy, but it is not fluffy. A surprise finalist is McDaniel College, which is both a CTCL and a “B Student” school. The information session purposely had no fancy PowerPoint or video, just an incredibly intelligent and articulate representative who focused on the school’s commitment to the holistic education of each student. Instead of being put off or intimidated by the academic excellence, my daughter found herself challenged and insprired by it. Bravo!

Right now, we are in the thick of it. The phone rings nearly every day with a recruiter or student representative from a college. Our mailbox is overloaded with post cards and brochures.

If you are a marketer, just think of the challenge. There are the Ivies, the Big Ten, the major State Universities. But there are thousands of schools under the radar, all trying desperately to stand out from the pack. The best have a deep sense of who they are, their heritage, and their vision for the future. The remainder have bought into expensive marketing communications programs, but they still have far to go. As many people say, “There is a college for everybody.” Some make their case far better than others.

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Five Suggestions for Bob Lutz

Dear Mr. Lutz,

Congratulations and condolences on your new role. It’s exciting and fraught with peril. This is the chance to do things right, and show the world that the “new” GM is something more than a hollow, feeble version of the old company. You don’t know me, and you never will, but I would like to offer some free advice. You see, I really want you to succeed. Although I am not an automotive marketing expert, it occurs to me that GM has done nothing but listen to automotive marketing experts for decades, and where did it get you?

So here are a few ideas that you might want to consider as you begin to turn this battleship around:

1. Simplify. What is Chevrolet? There are 19 different nameplates, and that doesn’t count all the hybrid versions, varieties of horsepower and coupes vs. sedans. You have beginner cars and mid-price cars and SUV’s and muscle cars and sports cars. And now you want to bring in the G-8 from Pontiac. Who can keep track of all of those? And who can afford to market all of them? GMC = trucks. I get that. That works better.

2. Think about women. A lot. My 17 year old daughter doesn’t think that cars are for guys. When she turned 16, she spent countless hours on-line researching cars. And she wasn’t just looking for cool colors. She had makes and models down cold. My niece had no fear of a manual transmission, because for her it meant she could get more car for less money. As for me, I am addicted to the Cars section of the Sunday New York Times. Women have huge purchasing power, we know how to do our homework, and we don’t like the perception of  a “boys club”. Make sure you have women in senior roles at each of your ad agencies. Believe me, when campaigns are created by men, for men, it shows.

3. Forge a new path. Don’t say that you want Buick to be “like Lexus”. Maybe the world doesn’t need another Lexus. Explore new categories. Surprise and delight us.

4. Worry less about “crafting messages” and more about having a conversation with your customers and prospects. This is hard for marketers who are used to owning the brand. Let go. It’s a transparent world and one individual opinion–good or bad–can literally be heard around the world. Good brands are essentially tribal. Find your tribes and tap into their enthusiasm. And for heaven’s sake, remember your employees. We have all seen what bitter, overworked, stressed-out employees can do in the airline industry .

5. Think service. Long after the sale, the car owner’s only contact is with service people. To the extent that you can control the service departments at dealerships, ensure that these experiences are good ones. You probably can control your corporate customer care centers, and these should be staffed with people who adore your cars, know how to tap additional resources, deal with cranky or frustrated people, and are empowered to take action when it is warranted.

That’s all for now. Five things is all anyone can remember anyway.

We’re rooting for you!

Warm regards,

Carol

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