2010 - What’s In Fashion

Posted on | January 20, 2010

So here we are into the first few weeks of 2010. It’s no 1980’s conspicuous consumption flashback, but it sure feels a bit better. I honestly don’t know anyone who was sorry to see 2009 go. As we march into the third year of the new economy, it’s an ideal time to pause and reassess our approach to marketing planning. In doing so, I can’t think of a better illustration than social media.

MarketingForecast.com issued the following article: “2010 - The Year Social Media Matures.”

http://www.marketingforecast.com/archives/4066

The premise is that in a state of near permanent beta, marketers rushed to establish social media platforms in 2009. Beta can be good, and there’s plenty to be said for getting things done, but author Kathy Crossett’s point is that we need to think strategically about social media and integrate these efforts into objective-driven marketing strategy and planning.

I couldn’t agree more, with respect to social media, and with regard to every other marketing communications tool in the toolbox. The panic that continued throughout 2009 spurned our collective attention deficit disorder exponentially. Just get it done, fast, and move on. The fear-based mentality of: “If can say I’ve done something, I’ve proven that I am effective,” seemed to float into permanent overdrive. The result can be deadly - brand denigrating slips in design standards, poor website navigation or a “discount” brand essence.

As we examine the new reality of a long, slow recovery and consumers’ now permanent love affair with value, it’s well past time to think before we communicate. It’s time to bring thoughtful, well planned, and above all strategic, communications back into fashion.

- Kevin Smith, Riggs Partners

The New Normal

Posted on | December 8, 2009

My colleague, Katy Miller, and I attended the 29th Annual Economic Outlook Conference last week at the University of South Carolina’s Darla Moore School of Business. We attended last year as well, just as the economy began to diabolically unravel, and as Riggs Partners began to offer commentary through this New Economy Consumer blog.

Last year’s predictions at the conference were dire, and they all came true. As a result, we were more than eager to hear discussion on 2009 and all prognostications concerning 2010.

Sure, most economists agree a modest recovery has begun. While many indicators remain negative, they are at least relenting a bit. Last Friday’s unemployment figure of only 11,000 jobs lost was a welcomed surprise.

Still, worries remain. Much of our financial system remains unsteady. The U.S. cannot afford another stimulus package. Dubai, UAE offered another ripple in the fallout that persisted throughout this year. Fears remain about the solvency of much of the commercial real estate market, and of a possible bubble fueled by the Chinese economic stimulus efforts. The consensus is that the recovery will be long and hard-fought.

Simply put, most of us remain worried, intent on retiring outstanding debt and increasing our savings. Historically, Americans have had short memories, and old spending, or overspending, habits seem almost genetic. Yet from the onset of this crisis, we at Riggs Partners have hypothesized that this time was different, more acute, and most likely to result in fundamental attitudinal and behavioral shifts.

Now brings us to understanding a new normal.

To summarize comments from Coastal Carolina research economist Donald Schunk, the new normal means individuals spending money they actually have, banks making loans to those who have sound credit and companies investing in endeavors based on the likelihood of a favorable return on investment rather than the inexpensiveness of leverage.

Enter the era of common sense.

Common sense tells us we can’t avoid overspending forever. It dictates that our choices be prudent. And it tells us that the companies with whom we do business demonstrate relevance and value.

The new normal is basic - stripped-down, and devoid of nuance, subtlety or gimmick.

The resulting ramifications for marketers are huge. If your product is a commodity, evolve or perish. Our current business environment is over-populated with parody products and services. It’s time to be aggressive and rethink what you are selling, and retool your organization and marketing communications efforts accordingly.

The new normal is full of opportunity for businesses and individuals. Don’t let it pass you by.

- Kevin Smith, Riggs Partners

Give thanks for shopaholics

Posted on | November 10, 2009

Black Friday. It’s funny that such a dismal name has always been used to identify the action-packed kick-start to the holiday shopping season.

These days the name is more fitting. In 2008, after-Thanksgiving shopping was at its lowest in forty years. And it’s not looking up. But luckily for retailers, there are plenty of crazy people (myself included) who will not let some lousy economy ruin all the fun. We will get up at 4 a.m., we will whip up our fancy instant Starbucks, and we will stand in wraparound lines outside Best Buy. Because for us, it’s not really about the sales; it’s about the shared experience.

Shoppers can always count on 40 percent off coupons and doorbuster gifts, but honestly, who wants a free snow globe? The thing is, most people are shopping for their family and friends rather than themselves. Everyone is still in that I’m-thankful-for-my-family, home-for-the-holidays mood. There is sincere joy in the air.

Looking at this from a marketing standpoint, the obvious thing to do is keep these people in a good mood, because happy, giving people are going to buy more. The strategy? Create a feeling of togetherness.

Take Target, for example. The retail giant offered free wake-up calls, and added a clever twist - the calls were from celebrities. Darth Vader and Heidi Klum had shoppers up at 4 a.m. and heading to Target. And when you got that early morning ring, you knew thousands of other people were hearing the same call. Hence, a shared experience.

Once you get them to your store, keep shoppers interacting with each other.

Entertain the mobs of people standing in your long checkout lines. Hand the first person in line a basket of mini muffins to start passing back. Give out “I’ve been shopping since 5 a.m.” stickers. Make live (not recorded) announcements wishing happy shopping. Depending on the venue, start a medley of carols in the checkout line. Don’t go too far, but make it a memorable experience.

So, as we plunge into another recession-scarred holiday season, make the best of it. Form a relationship with your customers now, while they’re counting on you most. What you don’t make in profits, you’ll make up for in brand equity.

- Sammy Rutkowski, Riggs Partners

The Power of Authenticity

Posted on | October 14, 2009

Seventh in a series analyzing seven new economy trends

There is an episode of Sex and the City in which Carrie and the girls attend a baseball game at Yankee Stadium. This scene lives in my memory because Carrie sits there in a rather empty upper deck, rather decked out—in fur.

For you male NEC followers, this is noteworthy because 99.9 percent of women would have pulled a “sporty” outfit from the “this is what one wears to a baseball game” section of their closet. Cute jacket, sure. Hooded sweatshirt, yes, particularly if you are a serious baseball fan.

But fur? Outrageous. And absolutely, completely, unabashedly Carrie Bradshaw.

This scene inspires me because I believe it was not Carrie’s intent to be outrageous. She was simply being exactly who she is, unchanged by circumstance or surroundings. Strong and distinctive, true to her most authentic self.

There is a lesson here for all of us influenced by environmental dynamics. Last fall we awoke to a radically changed marketplace, with an economy in freefall, and we looked for ways to survive. We cut overhead and restructured; we reconsidered and repackaged. We diversified and discounted and promoted like never before, using every trick in the book (with good reason) to make a sale and stay afloat.

I suggest to you that this is a good time to take stock. For a moment, acknowledge what an accomplishment it is to simply be still standing. And then assess any damage caused by the compromises you had to make. Risks include:

1) Losing focus on your core business.

2) Confusing your customers and potential customers with inconsistent messaging.

3) Performing poorly in an arena that may not be your specialty.

4) Diluting the power of your greatest asset, your brand.

Deliberate experimentation is a vital component of any healthy business plan, particularly when environmental circumstances change. But the most authentic brands align those initiatives with an unwavering core truth their customers recognize and trust.

Is there anything more powerful than that?

- Cathy Monetti, Riggs Partners
cathy@riggspartners.com

The Power of Connection

Posted on | September 3, 2009

Sixth in a series analyzing seven new economy trends

According to Forrester Research, only 6 percent of American consumers agree with the statement: “Companies generally tell the truth in advertising.” No wonder Word of Mouth (in its many forms) has become the marketing rage of the recession.

Word of Mouth marketing, or WOM, is made up of countless subcategories that include viral, social, grassroots, cause, buzz, product seeding, and insider (or influencer) programs. A key tenant of WOM is that content or commentary is generated by the consumer rather than the marketer, thus the perception that the information that is shared is more credible. That information is shared consumer-to-consumer or consumer-to-marketer.

It goes without saying (so why do I feel the need to say it?) that WOM works for you, or your organization, when you offer something people want to talk about. The more “talkable,” the faster communications will spread. By its very nature, the great power in WOM is the fact that it is exponential; i.e., I told two friends, who told two friends, who told two friends… . Keep this strategy in mind as you build your communications program, and add WOM components to it.

Start here: To whom are you talking? (It’s an ages-old consideration.)

But then things take a bit of a new turn. With whom does he/she congregate? Where? What is it that links them? What is the basis for their shared interest? What do they talk about? What do they do?

Of course, many of these new communities are digital, so opportunities to intersect are endless. Just be sure you intersect with something that is “talkable,” and provide tools that make it easy for them to share their opinions. Then motivate your advocates to spread the word.

There is a new frontier out there, and it is fueled by interesting conversation. Go bravely toward it.

- Cathy Monetti, Riggs Partners
cathy@riggspartners.com

The Power of Purpose

Posted on | July 7, 2009

Fifth in a series analyzing seven new economy trends

In recent months I’ve made many, many trips along the same I-95 route. The need to “grab a quick bite” has sent me into a number of fast food restaurants, and the service has been so outrageously slow that when I finally had one decent experience, I started a “good exit” section in my sketchbook.

I tell you this story because it demonstrates two things: (1) the power of purpose in meeting consumer need, even when that need is very basic; and (2) how important it is to deliver what you promise.

Of course, building and sustaining a brand is difficult and delicate work with thousands of considerations. But its foundation is quite simple:

Our customers need (fill in the blank), so we (fill in the blank).

Now is a great time to reconsider this equation. The economy has forced a redirection of energy toward goals that are extremely short-term and relationships that are much more transactional. Take the time to remind internal stakeholders why you provide the services or products you do. Give your employees a reason to come to work every day, aside from collecting a paycheck. How are they contributing value to the lives of your customers?

Then make sure your purpose is clear in all external messaging. Customers are reevaluating old shopping and purchasing habits every day. Make sure your company is on their radar.

- Cathy Monetti, RIGGS Principal, Executive Creative Director
cmonetti@riggsadvertising.com

The Power of Humanity

Posted on | June 4, 2009

Fourth in a series analyzing seven new economy trends

One of the most thrilling aspects of my work is the opportunity to speak daily with leaders I respect in fields that cross the business spectrum. I never pass on the chance to ask how the economic recession is affecting their business and what they see happening in coming months.

Each answers differently, but together they form a chorus. Of late there has been a song in a slightly different key.

“It’s still tough. But people have grown tired of the recession. I feel movement again. I am hopeful.” Like these professionals, many of whom are entrepreneurs, I feel my own optimism is at work. I am deeply ready for things to change.

And yet I caution us all. We must remember nearly one in ten Americans is out of work and millions more have had their salaries cut. Uninsured rates are skyrocketing, and record numbers of people are behind on or unable to pay their mortgages. (AP’s
Economic Stress Index Map gives a recession stress score for every county in the United States.) The reality of daily life for countless families is a painful one, and a cavalier attitude by marketers who simply lose patience will result in marketing’s greatest peril: a recognition by the customer that the marketer is out of touch. It’s a chasm that can never again be forded.

Instead, really listen to your customer. Uncover a need that may well have developed—or at least moved to the forefront—in the most recent weeks of this downturn. Then find a way to meet that need with an evolved product or new service. (Be open to the possibility that what your customer needs right now is quite elemental.)

As we move into the New Reality of this Great Restructuring, brands that are both intentional and grounded in the human condition will survive and ultimately flourish. (TM’s new Nationwide work is a great example.)

- Cathy Monetti, RIGGS Principal, Executive Creative Director
cmonetti@riggsadvertising.com

Up Next: The Power of Purpose

The Power of Control

Posted on | May 12, 2009

Third in a series analyzing seven new economy trends

A recent article in MONEY magazine says it all:  It’s finally sinking in: No one is looking out for you but you.

It’s true. Self-security is the new entitlement, the article states, because we don’t trust anybody anymore. We’ve been flat-out misled by accountants, regulators, rating agencies, stock analysts, mutual funds, hedge funds, mortgage brokers, banks, and CEOs, it says. So much so that in a recent MONEY poll, half of the respondents said they don’t trust financial advisors. 

I find that to be a startling statistic, and if you’re the marketing director of a financial institution, it’s one you should carefully consider. This is a pivotal time in the life of your brand as the health of your relationship with half of your customers is at risk. It’s also a time of unprecedented opportunity, since the same is true for your competitors.

Let’s consider “no one is looking out for me but me” for what it really is in marketing terms: a powerful consumer insight that speaks to a basic human need. How can you meet that need? An obvious path is to demonstrate that your company/service is looking out for the best interest of your customer. (This is a SHOW, not a TELL.) But here’s another direction that might be more relevant in this new economy:

 

Do what you can to give your customer a sense of control.

Give your customer a choice. By exercising choice, your customer will feel a sense of control over their environment. But be careful not to overwhelm. Two options can be plenty.
Let your customer talk. Open the door to two-way conversation, be it in-branch (or in-store), via telephone or online. Ask, and your customers will not only tell you what they need, they will feel relieved and more confident.
Give your customer something to do. Nothing replaces a sense of vulnerability faster than taking action. What if you offered a free seminar on local vacation planning? Budget conscious meal options? Online selling? (Note I’m not talking about traditional financial management topics, although they are an obvious option.)

Basic tenets of human behavior apply here. Give your customers a sense a certainty, as best you can, and they will repay you with their loyalty.

- Cathy Monetti, RIGGS Principal, Executive Creative Director
cmonetti@riggsadvertising.com

Up Next: The Power of Humanity

The Power of Simplicity

Posted on | May 4, 2009

The second in a series analyzing seven new economy trends

The Power of Need

Posted on | April 28, 2009

The first in a series analyzing seven new economy trends

In homes and businesses across America, decisions are being made with a heavy emphasis on “need” rather than “want.” This dynamic is impacting the marketplace so significantly it should be the first consideration in any strategic business decision, be it product development, realignment or marketing. What does this really mean? Begin every conversation in your organization with this question:

What does our customer need from us?

The answer must come from your customer’s point of view, which is—quite honestly—180 degrees from a corporate point of view. And if you haven’t conducted consumer research since—say, January—you can’t know the answer because I promise you, it has changed in the last four months.

Spend the money to work with a good researcher. It’s one of the most important investments you can make in your marketing program.  Today’s great researchers engage the right people, and they do it in an environment or a circumstance that results in truly meaningful (and potentially differentiating) intelligence. (The days of relying on focus groups and telephone surveys are over, thank heavens.) This rather tall order requires working close to the ground, using new methodologies that result in honest and open communication uninfluenced by preconceived ideas or peer group dynamics. And it needn’t take months and cost tens of thousands of dollars. 

Once you have hired the researcher, mined the insight(s) and put them in the proper context, begin every meeting with those realities in the forefront. Write them on the wall; make them a part of your organization’s vernacular. Then use the insights as your North Star as you develop new products/programs/promotions. You’ll wonder how you ever made a good business decision without them.

- Cathy Monetti, RIGGS Principal, Executive Creative Director
cmonetti@riggsadvertising.com

Up Next: The Power of Simplicity
The second in a series analyzing seven new economy trends

keep looking »

Bookmarked

New Year doesn't usher in new habits. -Kevin

Budget cuts have cities selling sidewalk space to advertisers. -Teresa

A happy holiday for online retailers. -Ryon

Ten dollars to the box office? Or one dollar to the Box? -Cathy

Five good buys that make shopping at Walmart worth it. -Sammy

Blame the battery-operated hamster for low holiday sales. -Kevin

Are your employees in it for the long haul or just sticking it out until employment rises? -Tom

As U.S. downturn deepens, repair business thrives. -Tom

Food Marketers take safer course in recession. -Cathy

Recession has more of a profound effect on marketing industry than predicted. -Cathy

Beer no longer recession-proof. -Cathy

Cheapeats: Yum, yum give me some and save me some. -Jason

Economies of abundance. -Tim

Not so ordinary ways to recycle. -Jason

Arguments whether to buy local or not. -Ryon

Instead of buying, design, craft, build, and re-use. -Elias

So, which car for you? -Tim

Getting smart with groceries. -Elias

Top 5 Consumer Holiday Spending Trends in a Dismal Economy -Kevin

Learn to live the Not-So-Big Lifestyle -Tim

No assembly line. No factory floor. -Elias

Stay away from fast food and the center of the grocery store and you can live longer and cheaper. Healthy and Cheap -Tim

The solar systems' largest nuclear fusion reactor stands ready to save you money. -Tim

A rediscovery of, and intentional support of, all that is available where we live, work and play; an embracing of the diversity and options we hadn't noticed; a return to family (redefined); a focus on "home"

A distinct and intentional move away from excess, although not counter-cultural; the casting off of that which is superfluous; a focus on purity, essence; making-do, but with high standards for aesthetic design and functionality

Supreme homage to value, redefined; every action an investment, whether time or money; the death of impulse / birth of comparative study; choice as a primary concept

Self-empowerment(!) creating a markedly different sense of control; an attraction to that which is experiential (and valuing the experience); creativity, renewed; the anti-immediate gratification movement

Riggs Partners

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• 2010 - What’s In Fashion
• The New Normal
• Give thanks for shopaholics
• The Power of Authenticity
• The Power of Connection
• The Power of Purpose
• The Power of Humanity
• The Power of Control
• The Power of Simplicity
• The Power of Need

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