Monthly Archives: June 2019

Your aspiring customers can be more valuable than your paying ones…

12 Wednesday Jun 2019

Posted by in Advertising, Branding, Marketing, Media

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My recent article about the Koala team’s overzealous belief of their brand awareness reminded me of a story about one of my first bosses, Sir Peter Abeles.

Sir Peter built the TNT global transport and logistics empire, which at one stage owned Ansett airlines. I was the National Marketing Manager of TNTGroup4, which was where I got loads of hands-on experience building databases and using direct marketing techniques for B2B and consumer marketing.

Sir Peter Abeles

Reg Ansett, the visionary founder of Ansett Airlines, bought Hayman Island in the 1950s and turned it into Australia’s most luxurious island holiday resort. Of course, the only way to get to the island back then was with Ansett Airlines. (BTW this was many decades before I eloped to get married on Hayman Island)

Back in the 1980’s after TNT bought Ansett – and consequently Hayman Island – the company made a huge investment in refurbishing the Hayman Island Resort. Those in the hospitality industry will know that all resorts eventually get stale and require deep pockets to bring them up to date.

After completion of the refurbishment, Sir Peter flew to Hayman Island to inspect his heavy investment. He attended the soft launch to the travel trade and left the island feeling comfortable about its new direction. Upon landing in Sydney, Sir Peter would normally be collected by his personal driver, but on this occasion his driver was unavailable.

Hayman Island Resort

So Sir Peter took a taxi. The first thing the cabbie asked Sir Peter was “where have you been?” Beeming proudly, Sir Peter said “Hayman Island.” The cabbie immediately replied “where’s that?”

Suffice to say, Sir Peter politely explained where and what Hayman Island was, while discreetly seething under his breath. As soon as he got back to work, he demanded to see the Hayman Island marketing team, to get an explanation as to why a taxi driver at Sydney Airport hadn’t a clue about Hayman Island.

The mistake the team made was simple. It had micro-targeted a “luxury audience” by advertising exclusively in the Ansett magazine, upmarket lifestyle, fashion and travel magazines, as well as through media releases to travel writers. The problem with this niche-tactic of course, was that only those who could immediately afford to go to Hayman Island saw the advertising.

Nobody who aspired to go to Hayman Island, or who would save to go for a holiday there, had seen the advertising. They were not aware the Hayman Island Resort existed. So when Sir Peter said “Hayman Island” when answering the cabbie’s question, he didn’t get affirmation from the driver about his decision. Sir Peter was expecting something like “wow you’re lucky, I dream of having a holiday there.”

Holiday envy…

Part of the process of a considered purchase, such as a luxury holiday, home, car, camera, bed, lounge etc is the reinforcement by colleagues that your decision is a good one. Or even one they envy. It’s part of what drives our ego.

This is why your brand advertising should not just reach those most likely to buy, or those who buy regularly, but also those who might buy occasionally or dream of buying. Sales growth comes in distinct ways depending upon what you’re selling. Fast moving consumer goods such as groceries for example, have different buying patterns to high-value considered purchases.

Growth for high volume (often unconsidered) purchases comes from:

  • Convincing current high volume customers to consume more of your product
  • Converting high volume customers from a competitor to your brand
  • Getting more occasional users to buy your brand when they are in the market

Read Byron Sharp’s book; How Brands Grow for more detail.

Growth for low volume considered purchases comes from:

  • Additional purchase by a current customer
  • Converting a customer from a competitor to your brand
  • Getting first-time buyers to buy your brand

So, regardless of your product category, when marketing to consumers, you want as many people to know about your brand as possible. This includes those who will buy your brand and those who wish they could buy your brand. It’s why brand advertising, publicity, social sharing and review sites are all important tactics.

B2B is a different kettle of fish – you can often put every customer in the category on a floppy disk (ask your parents if you don’t know) and communicate with them based on where they are in their buying cycle, often driven by contractual arrangements or tenders. That’s for another article.

So don’t forget your aspirational customers, they help your paying customers justify their purchase and may eventually become your customers too.

Hmmm, it’s almost 20 years since my bride and I eloped. Maybe I should plan a quiet family celebration at home? Not likely. I suspect my bride aspires to at least a week back on Hayman Island.

I wonder if the resort has a past customer deal…

What does Uber Eats have in common with all these retail brands…

07 Friday Jun 2019

Posted by in Advertising, Digital, Digital marketing, Direct Marketing, Marketing, Media

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Regular readers will know I’ve written about this before – (see below)

But given the increased amount of television and outdoor advertising that Uber Eats is doing lately, I thought I’d revisit it. Curiously, I’ve not seen any Uber Eats advertising online…yet. (now that I’ve mentioned it, I’ll probably be chased around the web thanks to cookies)

By way of background, I’ve owned a suburban supermarket and a travel agency – in different suburbs in different centuries. For both businesses, one of the most powerful media for generating retail store traffic and sales, was unaddressed mail. I’ve also produced loads of retail catalogues and other letterbox collateral for my agency’s clients.

Yet despite the fact we live in a ‘digital world’ the letterbox is still one of the most profitable channels in which retailers can promote their wares. Truth be told, most retailers would struggle to survive if this channel was not available.

Just this week, that most uber of digital disruptors – Uber Eats – dropped an offer in my letterbox.

And so did the following brands:

  • Aldi
  • Woolworths
  • Coles
  • Big W
  • JB Hi-Fi
  • Chemist Warehouse
  • First Choice Liquor
  • Pizza Hut
  • Priceline Pharmacy
  • Telstra
  • Baby Bunting
  • Plush Furniture
  • A couple of local small businesses too

So if you’re under the delusion that we now only live in a digital world, get off your screen, go outside and check your letterbox.

You’ll be surprised what brands are using this channel – you might learn something and possibly even rethink where you spend your budget…

Gotta go and do the shopping now – where are those catalogues?

* https://themalcolmauldblog.com/2016/05/31/the-essential-media-channel-most-successful-digital-start-ups-cant-do-without/

* https://themalcolmauldblog.com/2017/05/23/uber-eats-and-airtasker-run-amazing-suburban-launches-using/

*https://themalcolmauldblog.com/2016/06/01/uber-and-others-have-it-smelling-a-lot-like-1999-again/

A marketer’s love of their own brand can cost them sales…

06 Thursday Jun 2019

Posted by in Advertising, Branding, Marketing

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In most western countries the mattress and bedding industry is highly competitive. The tactics usually involve retailers creating loads of different brands and price points, so it’s confusing and not easy for consumers to compare apples with apples, so to speak.

If you’re interested in just how weird and corrupt the industry can be, check out this story from Fast Company about the online mattress industry in the US. But I digress.

Recently I tweeted (a rare thing for me to do) about a cheeky outdoor poster by a company called Koala.com.

Here’s the poster:

It is located on a main road a few hundred metres before an Ikea store. The copy on the poster is:

NOFNIDEA?
no tools, no worries, koala.com

There is an accompanying image of an Alan Key and screws, like those you use when assembling Ikea furniture.

On the face of it, it’s quite a clever execution.

In marketing parlance; my unaided recall of the brand koala.com was zero. So I naturally assumed koala.com was a company that provided a service to assemble Ikea furniture.

I decided to check it out – only to discover Koala.com supplies mail-order mattresses. They are very good at it too – very similar brand personality to the Dollar Shaver Club.

So I tweeted the following:

“I suspect this cheeky outdoor poster from Koala only works if you know that Koala is a mattress brand. Otherwise, you probably assume Koala is service to put together Ikea flat packs. Marketers think everyone knows their brand as well as they do

The response from Koala was interesting to say the least:

“have you been living under a rock? if you’d like check us out here Ps. Koalas are terrible at building Ikea furniture”

The response is a dead giveaway that the Koala marketers are in love with their brand way more than the general public. They live their brand every day – it’s their job. They have been very successful, so assume that success translates to every (non-living under a rock) potential mattress-buyer, knowing all about them.

And while I can appreciate the enthusiasm of successful youthful marketers, it’s no excuse for poor manners.

woohoo we’re a success…

I responded to Koala explaining that because I was in marketing I was aware of their brand. But it turns out I was wrong. Again in marketing parlance; my aided recall kicked in, and I remembered an advertisement I’d seen with Serena Williams flogging mattresses and thought it was a Koala ad. Turns out my recall ain’t what it used to be, as Serena flogs a competitor.

The reason I’m writing about this is simple. In the last 12 months I’ve bought four mattresses – a king-size and three queen-size. I suspect that’s a reasonable sale, even for a company as successful as Koala appears to be.

I cannot tell you what brand they are and I was obviously living under a rock that had no Koala advertising, because I never considered buying a Koala. The Koala brand wasn’t on my radar and unlike most consumers, I actively watch advertising.

I just checked the mattress brands. The King is similar in style to the brand Serena is flogging, while the queens are a different brand again. In case you’re interested, my bride and I negotiated a bulk deal with a pleasing discount, after a bit of shopping around – we like the social aspect of shopping and discussing our requirements with salespeople.

Marketers must remember that customers don’t really care much about brands, except when they are in the market to buy, or when something goes wrong with the product or service they’ve bought. That’s why marketers need to advertise consistently and reach as many people as often as possible, as they cannot predict when people will buy. They must also not assume that their own attitude for their brand represents the typical consumer atttitude – the respective attitudes are usually vastly different.

Though I have been keeping an eye out for Koala advertising online and on TV, but alas nothing sighted yet. I suppose I’d better take that insightful advice from Koala and get out from the rock under which I’m living – I might get lucky and see a Koala advertisement and really live a fulfilling life…

Gotta go now, am off to have an afternoon snoozzzze…

Nothing fails as badly, or regularly, as a marketing automation fail (continued)…

04 Tuesday Jun 2019

Posted by in Content Marketing, Copywriting, Customer Service, Digital, Digital marketing, Direct Marketing, Email marketing, Marketing, Marketing Automation, Mobile marketing, Sales

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Continuing from my article published last week about poor old Adobe’s problems, here is another example of computers getting in the way of sales because humans aren’t involved. This time it involves SMS – plus a late addition to the Adobe issues.

The sad part about this error is how easily it could have been avoided, as the perpetrator, Vintage Cellars, has my purchase history on file. Each bottle of vino I buy is linked to a loyalty card/app.

I do like my wine – in fact I enjoy both colours (red and white) in almost equal measures. Over a six year period in the Hunter Valley, I made wine as part of my membership of a wine club (now defunct). One vintage even won a trophy and my team also made a semillon in steel, not barrels, in the true Hunter Valley style.

If you’re a friend of mine, you’ll know I regard sauvignon blanc as a crime against humanity. It tastes like a batch of your neighbour’s lawn clippings, filtered by a garden hose through an old pair of your grandmother’s stockings. But that’s just my palette – others do enjoy it.

So last October, I received a text message from Zoe at Vintage Cellars – trying to flog me some sauvignon blanc:

Why I received this message is beyond comprehension. I’ve never bought sav blanc in my life, let alone from Vintage Cellars. Isn’t marketing automation messaging supposed to be linked to customer purchasing data to ensure the fabled “personalised customer experience/journey?”

I suspected Zoe was a fake customer service person, or possibly a bot, but I replied to her regardless, sharing a couple of my thoughts on sav blanc:

I assumed (wrongly) that the marvels of marketing technology would automatically process my message and stop the computers from trying to flog said sav. But unfortunately, the Vintage Cellars computers aren’t very smart. Even worse, it appears the humans in the marketing team don’t bother to check what their customers say to these computers. I know this to be true because a couple weeks ago, the computers sent me this message:

It would be funny if not so sad – well it’s sad that humans assume marketing automation works all the time, like a set-n-forget TV dinner in the microwave. It has obviously failed this time. But it’s sad for other reasons too:

Firstly, there is no way they could have missed me, given my wine buying in the last six months. I know this because I get my discount vouchers physically mailed to me each month and they are based on my household purchase history. And lately I’ve received a few vouchers – mostly linked to my bride’s champagne drinking I’m sure.

Secondly, because the message that was from Zoe, is now from “we” and is not signed off by anyone except the disclaimer.

And thirdly, it’s just bad marketing. Vintage Cellars has my data. They contacted me on a personal channel. I replied to them in the same personal channel. Yet they lie to me about missing me, are too lazy to check my sales history and are too lazy to write a decent message. It’s a bloody disgrace and enough to drive a man to drink.

But wait, there’s more – and it’s just arrived from Adobe as I type…

It’s an invitation to a webinar on mobile marketing, by the people who brought you “epic fails in marketing automation“. The image is of a human hand writing a WORD CLOUD in reverse on a glass screen. Why anybody would do this to their wrist is beyond me?

It appears the creative idea here, is to make the most prominent words the same as the topic of the webinar – enterprise, mobility, business, technology. Genius stuff. The first two sentences are:

“Your customers, your business, your market are mobile-first. But 80% of all workflows today are at least partially paper-based. This is expensive, time-consuming and not very user friendly.

Don’t get left behind! Best-in-class companies leverage digital and mobile-first workflows to eliminate clunky, manual steps, removing inefficiencies, increasing revenue growth and improving customer experiences.”

You can imagine dear reader that I may be a tad sceptical. After all, it’s the very fact that Vintage Cellars and Adobe didn’t have manual steps involving humans that caused their marketing technology failures. It was their very investment in digital marketing technology, with complete disregard for the compulsory layer of human intelligence, that cost them dearly.

The copy appears to be written by a typist, not a copywriter. After all, if your business is mobile-first (whatever that means) yet your workflow is 80% paper-based, how can your business be mobile-first? It’s obviously paper-first! The writer is contradicting themselves. This strive for marketing mediocrity is giving me a headache.

I’m off to medicate with a drink. Hmmm, red or white…