Monthly Archives: March 2011

Luxury Isn’t Social

Posted March 29, 2011
Posted in Advertising, Branding, Mobile Marketing, Shopper Marketing, Social Media, Store Experience, The Future, Trends
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By Doug Stephens

I’ve read a number of articles recently commenting on the conspicuous lack of social marketing in the luxury sector.  While it’s also true that participation in social media among luxury brands has grown, the fact remains that the general level of activity has been low – especially considering the fervor around social media in general.  “Why are luxury brands such laggards?” many are asking.

But let’s think about it for a minute.  In the purest sense social media is built on is the principle of inclusiveness – the genuine willingness to give and share openly with others. Social media is the connective tissue between friends but more importantly between those who might not otherwise belong to the same social circles; people from various walks of life who are connected even momentarily by an experience.  The essence of social media is that we all have a voice – we’re all included.

Social media has been successful in digitizing the underlying social nature of shopping.  In essence, shopping is more fun when we include others.  Whether it’s telling friends about the big sale that’s happening or posting a phone-cam picture of the cool new shoes you just bought, social media feeds wonderfully into the context of the shopping experience.

However, contrast this to the principles upon which luxury has always existed. Luxury by definition is not inclusive – just the contrary!  Luxury is not for the unwashed masses but rather for the elite.  In fact, many of the most successful and enduring luxury retailers are without question the most exclusive.  Arguably the greatest danger faced by any luxury brand is its own ubiquity! It’s not about openly sharing your purchases with friends to inspire fun but instead quietly and smugly coveting prized items to foster envy.

So, I’m not sure we’re really dealing with a lack of understanding on the part of luxury marketers when it comes to social media marketing.  These people are probably as personally active in social networks as any of us.  I just don’t think that social media marketing is as relevant for a purveyor of true luxury items as it may be for an American Eagle say.  True luxury will never be social in the sense in which we understand social media today.  Sure there may be closed social networks for yacht sailors and Bugatti Veyron drivers but don’t expect a friend request any time soon.

Social Media Can’t Save You!

Posted March 22, 2011
Posted in Advertising, Branding, Social Media
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By Doug Stephens

There’s an epidemic taking place. Brands big and small are rushing into social media.   In many cases, several months down the road they find themselves disappointed with the results and disenchanted with social media in general.

Case in point: I was recently speaking at a conference to a full auditorium of marketers.  I asked how many of them were doing some degree of social media marketing.  Most of the hands in the audience went up.  The next question was “how many of you are disappointed with the response you’re getting.” Again, most of the hands in the room were raised.  And this is usually the case.  I can’t tell you how many other businesses I speak to that have a basic Facebook fan page and a Twitter feed and not a lot of love or money to show for it.

The Medium Isn’t the Problem

It’s my experience however, that these problems rarely have much to do with the value or effectiveness of social media.  In most cases, the problem is that brands simply aren’t in shape for social media in the first place.  They lack definition, position and purpose.  Their story is lackluster and their consumer value nebulous.  In some cases, internal communication is so poor that it makes outward communication almost impossible.

Here’s the thing. Social media is not a modifier it’s an amplifier. It doesn’t change your brand’s voice; it just turns the volume up to eleven.  If your brand has nothing to say – no story to tell, social media will only amplify the uncomfortable silence.  If your culture lacks fluid and open communication, your discomfort and awkwardness in engaging followers will come through loud and clear.  If your brand value proposition isn’t obvious, your social media messages will be confused and only muddy the waters further.

The result will be that every tweet, post and update aimed at building community around your brand, will simply confuse, disenfranchise and disappoint more potential followers.  You will un-market yourself into oblivion.

The Social Media Breathalyzer

Breathalyzers can be installed in the ignition systems of cars to prevent drunk driving. It’s too bad we don’t have the same kind of apparatus available before starting social media programs.  In lieu of something more sophisticated here’s a very simple brand sobriety test. If you fail, don’t turn the key on social media!

- If you didn’t work for your brand, would you care that it existed?

- Do you have a product or service story to tell that people should even give a damn about? Something that excites inspires or entertains?

- Can you articulate your unique value in one or two short sentences without using jargon or bull****?

- Will what you share with people be so valuable, interesting or remarkable that they will not only notice it, but also enthusiastically share it with others?

If you don’t have solid answers to these 4 basic questions, then social media won’t save you. In fact, it might hurt you. Fix the brand first.

Gary Vaynerchuk, author of The Thank You Economy recently said “There’s more original content created today in 48 hours than there was from the beginning of time until 2003.”  In other words before you tap customers on the shoulder, you better have something valuable to say.

What’s In-Store for the Future?

Posted March 16, 2011
Posted in Marketing, Shopper Marketing, Social Media, Store Experience, The Future, Trends
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By Doug Stephens

There’s an ongoing debate about the viability of “bricks and mortar” retail in a digital world.  With online and mobile commerce growing at a double-digit pace and physical stores lagging far behind, how long will it be before clicks overtake bricks?  Some extremists predict an almost complete eradication of physical stores.

While I agree that a very high percentage (and eventually the majority) of what we buy we’ll buy online and/or have automatically replenished, I also believe there will always be a place in our society for physical stores.

image courtesy of Frog Design

Why We Shop

The rationale lies in the reasons why we shop in the first place.  The first and most obvious reason is to acquire the things we need and want.  It’s clearly this aspect of of shopping that the internet has had the greatest impact on.  The ability to select from hundreds of products, compare options, order what we want and have it on our doorstep the following day has put perilous pressure on traditional store models.

But the second and perhaps more important reason we shop has remained unchanged since the beginning of time. Shopping is a social activity. We venture to stores for the same reason we congregated in the market bazaar over a thousand years ago – to be a part of the crowd, to people-watch and for a few hours to lose ourselves in the magic of aimless browsing.  At it’s core, shopping has much less to do with economic need and a lot more to do with human gratification.

The Changing Definition of “Store”

What’s certain is that our beliefs about the purpose stores serve is changing quickly. The once well-defined line between online and in-store experiences is now being obscured. Social and experiential elements of the physical store are being incorporated into online stores.  Apple for example recently applied for a patent that seems aimed at making online shoppers actually feel like they’re in the store by merging aspects of the two experiences.  Likewise, collaborations like that between Adidas and Intel, are proving that in-store experiences can be more web-like by bringing information and media right to the customers finger tips in a highly interactive way.

But the question remains, with consumers becoming increasingly comfortable buying just about anything online, what real value will stores bring to the brands they represent?  Why build stores?

The Store As Media

We’ve traditionally used media to drive consumers into stores.  If marketers could get us across the store threshold, their job was largely done.  In other words, the store was the end of the marketing funnel – the goal line so to speak.

Increasingly, stores will instead act as branded media.  They will function less as places that simply sell products and more like interactive galleries, showrooms and workshops – places where consumers can have aesthetic, visceral and emotional experiences with the brand – that can’t be replicated online. In this sense the store will become the customer’s first brand touchpoint – not the last.  The entry point of the marketing funnel.

With this shift, the financial expectations of stores will change.  Brands will regard their stores less as sales and profit centers and more as a marketing and media expense.  Conventional store success metrics like sales per square foot and inventory turns, will steadily give way to marketing and media-based metrics.  A good day in-store won’t be entirely about how many widgets were sold but also about how many positive impressions were generated and how those impressions converted into social buzz and ongoing brand interactions.

Today’s stores work to fill the customers cart with product.  The store of tomorrow will work to fill customer’s handhelds with branded media, applications and other digital incentives to form a relationship with the brand.  In other words, the store of the future will not simply aim to open the customer’s wallet but also to open their minds and hearts to the brand in its totality.

This concept represents a profound paradigm shift  and one that will be problematic for many retailers to get their arms around.  For savvy retail brands on the other hand, it will represent the next frontier of retail supremacy.

Simplify or Die

Posted March 12, 2011
Posted in Technology
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By Doug Stephens

Is your business or industry model unnecessarily complex?  If not, you’re lucky.  If so, read on.

I sometimes hear executives point to specific industry nuances and idiosyncrasies as reasons why they feel it would be difficult for an upstart competitor or technology to replace them. They not only tolerate but in some cases actually perpetuate obscurities in their industry in an effort to keep the future at bay.

Complexity in any industry can create a false sense of protection against disruptive change.  When we work in complex industries, we begin to believe that anyone trying to compete against us will have to play by the same tangled web of industry convention and ridiculous rules that we do.

I can’t help but think that the music industry must have felt that way; that contracts between artists and labels were simply too convoluted to allow for competitors to challenge them. Enter iTunes and innovative indie recording models like ArtistShare.

I’m sure the travel industry saw the (sometimes unscrupulous) relationships between travel agencies, tour companies and carriers as being too intricate and confusing to travelers to book their own vacations.  Enter Travelocity, Expedia and others.

And it’s becoming abundantly clear that the publishing industry over-estimated the potential for the complexity of its rights, royalties and distribution issues to act as a guard against being dis-intermediated.  Enter Lulu.com and Kindle Self-Publishing.

The point here is that the complexity of your business model is not a defense against the future.  If anything, it’s what makes you most vulnerable.

My advice to any business or industry that is overtly complex is simplify it… fast.  If your business model sucks, don’t just hide the fact under more layers of convolution.  Change it and own the new model.  Removing complexity is never easy, but it’s essential because as history shows, if you won’t simplify what you do, someone else gladly will.

The Hyper-Connected Consumer

Posted March 1, 2011
Posted in Advertising, Marketing, Mobile Marketing, Shopper Marketing, Social Media, Store Experience, Technology
Reply

By Doug Stephens

I had a chance recently to speak with Lori Schafer and Bernie Brennan, authors of the book Branded! How Retailers Engage Consumers with Social Media and Mobility.  The book provides a great case by case viewpoint of what brands are doing to connect with consumers on digital platforms and where they’re finding the greatest success.

I was interested to get their perspectives on how these technologies are altering the relationship between consumers and retailers, how they foresee this developing moving forward and the role of corporate leadership in paving the way to a new marketing philosophy.

Let me know what do you think?  Are social and mobile really changing the way brands and consumers engage?  Who’s doing it right?  What should we expect to see retailers implementing by this time next year?

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