by Loa Fridfinnson
Dr. Stephen Covey points out in his 5th habit of highly effective people: Seek first to understand, and then be understood. With many businesses striving to be heard in a sea of competition, this is probably the most powerful strategy to execute.
Corporate communications is no longer a one way “push” message. The power that was once in the hands of corporate Canada has shifted to the consumer. In order to know what is meaningful to customers and investors a company must figure out where they spend their time, listen to the conversation, get them engaged and deliver what’s important to them. Companies following this model win trust, loyalty and word of mouth.
Thirty years ago marketers could buy a two minute commercial spot interrupting the viewer’s latest episode of “Gilligan’s Island” and feel quite confident that they would reach their target market on that particular channel, at that specific time. And, if they showed the commercial often enough it would eventually become a household name as consumers had become familiar with the brand through TV and radio ads.
Gone are the days when building a brand was effective using one or two mediums of communication. Now we have digital video recorders (DVRs) that wipe out commercials all together. There are over 500 niche broadcast channels available and more special interest magazines than a marketer can possibly keep track of. The Internet has created thousands of like-minded people in communities on every topic imaginable. Welcome to the new era of niche marketing in a forever evolving Web 2.0 economy.
The ease of world travel, globalization, trade and advances in technology has removed borders and when it comes to consumer choice of what to buy, the options are endless. Many products and services are of similar quality therefore consumers are making their buying decisions based on what their peers are saying, how familiar they are with a brand and most importantly, how much they trust the company to deliver on its promises.
Businesses that are listening and engaging their audience gain this trust. Success comes to those who are making products and services people want, not trying to shove needs and wants on to them. Listening to your audience has never been easier than it is today through social media channels such as Twitter, Facebook, blogs, YouTube, etc. These “communities” allow companies to gain information beyond the traditional focus group.
Within online networks, people discuss and share their experiences and opinions on products and services from the comfort of their home, office or handheld device, in real time. It is the most honest and valuable feedback a company can hope to get and if used wisely, can create incredible results for the business.
Take Starbucks for example: They created a brilliant My Starbucks Idea campaign adopting a “people-centric” approach inviting customers online to talk about what more could be done to further enrich their Starbuck’s experience. This allowed people to express their ideas on a platform where others could read, post, vote and share with others in their networks.
If an idea made sense, Starbucks then adopted it. After enough people claimed the coffee was better in ceramic mugs than plastic cups, stemming from one of the ideas, Starbucks listened and gave customers that came in the store a discount on their coffee if they brought their own mug.
In March 2008, the open forum had generated over 70,000 ideas within a year’s time. Starbucks also generated buzz gaining over 300,000 viewers through their YouTube "If You Vote, We’ll Buy Your Next Coffee”, carries a strong “We Care About Our Community” message and offers customers a free coffee to participate. Their Twitter account is just shy of 250,000 followers. Starbucks understands the power of engaging its audience and building trust by providing an emotional experience. People become loyal based on how they “feel” about a brand, not necessarily how logical the decision is to buy it.
An article in the June 21, 2009 PARADE Magazine stated, "Businesses spend about $1.6 billion a year on 'word-of-mouth' advertising, promoting their goods to bloggers and to people who use social-media websites like Facebook, according to the research firm PQ Media."
In order to learn how your customers or shareholders are talking about you online, and how to engage them, here are a few simple tips:
• Go to Technorati (blog search engine), Google Search Blogs, Google Alerts and Twitter.
• Search for key words and phrases that match your company’s products and services and research what shows up. Subscribe to blogs pertinent to your organization and follow the conversations for a while.
• After gaining a feel for the community and when appropriate, add value to the discussion through your own compelling content. Be an expert, be helpful and maintain a humble tone.
• Start your company’s own blog, Twitter, Wikipedia, YouTube, Flickr and Facebook accounts.
Deliver relevant content that people will find of interest and can share with others. This is not a place to toot your own horn; it is a two way conversation where you provide transparency on operations and communicate information that interests your target market in some way.
In summary, if you truly care about your audience, ensure you are listening to what is being said about you and then be an active voice in the conversation. Companies that are passively sitting back hoping to fly under the radar of discussion are not in control of their message, or gaining the trust necessary for growth.
Wednesday, August 12, 2009
Friday, July 3, 2009
Social Media & Investor Relations
Check out this SlideShare Presentation:
Friday, January 23, 2009
When Bad Markets Happen To Good Companies
Turning Doubt and Fear Into Opportunity
Instead of seeing the glass half empty, try viewing it half full with opportunity created through positive action.
As entrepreneurs, owners, CEOs and marketers of our businesses we know contraction in the financial system makes most people stop dead in their tracks, frozen in fear. An extremely wise investor and one of the most successful business men alive once said:
“Investors should remember that excitement and expenses are their enemies. And, if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” -- Warren Buffet
In an ideal world, our marketing activities would be self supporting and provide immediate payback but in reality, we understand this just isn’t the case. It takes time, effort and an ongoing investment to create integrated marketing programs that yield positive results. Studies have proven that marketing is the lifeblood of recognition, building trust, increasing sales and maintaining a professional image in the minds of customers, investors and all stakeholders in your business.
There are many factors influencing a company’s decision to continue delivering its message versus tightening the purse strings when economic conditions are uncertain. The largest of all reasons (next to a low cash position) is usually fear and mass panic. This creates a herd mentality, where everyone does nothing in the hopes that the pain will go away.
The problem with this type of reaction is that it is often the worst thing a business can do. This negatively affects its reputation and can result in greater reductions of stock prices, market share and growth.
Many companies view marketing as a luxury, or as a tactical manoeuvre that is executed when the company has cash to burn. Do you think your brand is strong enough to defend against time? Think again. While you are doing the bare minimum or perhaps nothing at all to communicate with your respective audience, savvy and strategic competitors are gaining an advantage and getting in front of your prospects, customers and shareholders.
Whose advertisements or media stories do you think will be read, noticed and remembered when all others companies are in hibernation? Whose calls do you think will be accepted by financial professionals or the media when the markets turn around?
There are smart investors this very minute looking for an opportunity to cherry pick when the markets are being beaten down. Studies by research groups and think tanks conclude that companies who reduce their marketing activities during times of economic contraction lose presence in their core markets and end up spending far more to reach a minimum level of exposure, never mind returning to where they were before.
Starting from scratch to rebuild trust with an audience costs you so much more than just money. Don’t lose the goodwill you have built up. Those that stay focused on their goal of building a loyal following end up taking market share away from their less aggressive counterparts.
Any marketing activity that is undertaken should have specific and measurable goals. Don’t waste your funds on poorly thought out campaigns – the one ad approach will not do the trick. Even in tough times, it is imperative that you increase your presence and exposure through strategies that will yield the best results. There are many strategies that can be undertaken that are affordable yet effective in reaching your audience.
For example, your database is a gold mine (mining companies, excuse the pun). If investors are thinking about selling your company’s stock, making contact via phone or email to let them know you are alive and well will put their minds at ease and possibly stop any selling action.
Points to remember:
• The best time to be out there is when no one else is! In other words, there is less competition for eyeballs when others are not promoting
• Be strategic in your IR, PR and marketing goals. Have a plan, execute it carefully, measure and fine-tune for best results
• Negotiate deals on advertising as media companies are hungry to fill their advertising quotas
• Be easy to find for cherry picking investors or consumers looking for sales
In summary, halting all IR, PR and marketing efforts because times are uncertain is not a strong strategy for growth or even maintaining what you already have. An analogy for marketing would be putting gas in the tank of your car – without it you won’t get very far.
In relation to recent market and economic conditions, as the ancient Sufism motto goes, “This too shall pass.” Where will your company be when it does? Hopefully, not starting from scratch. Be resilient and it will pay off.
As I have noted in past articles – when you don’t promote, a terrible thing happens –nothing.
Instead of seeing the glass half empty, try viewing it half full with opportunity created through positive action.
As entrepreneurs, owners, CEOs and marketers of our businesses we know contraction in the financial system makes most people stop dead in their tracks, frozen in fear. An extremely wise investor and one of the most successful business men alive once said:
“Investors should remember that excitement and expenses are their enemies. And, if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” -- Warren Buffet
In an ideal world, our marketing activities would be self supporting and provide immediate payback but in reality, we understand this just isn’t the case. It takes time, effort and an ongoing investment to create integrated marketing programs that yield positive results. Studies have proven that marketing is the lifeblood of recognition, building trust, increasing sales and maintaining a professional image in the minds of customers, investors and all stakeholders in your business.
There are many factors influencing a company’s decision to continue delivering its message versus tightening the purse strings when economic conditions are uncertain. The largest of all reasons (next to a low cash position) is usually fear and mass panic. This creates a herd mentality, where everyone does nothing in the hopes that the pain will go away.
The problem with this type of reaction is that it is often the worst thing a business can do. This negatively affects its reputation and can result in greater reductions of stock prices, market share and growth.
Many companies view marketing as a luxury, or as a tactical manoeuvre that is executed when the company has cash to burn. Do you think your brand is strong enough to defend against time? Think again. While you are doing the bare minimum or perhaps nothing at all to communicate with your respective audience, savvy and strategic competitors are gaining an advantage and getting in front of your prospects, customers and shareholders.
Whose advertisements or media stories do you think will be read, noticed and remembered when all others companies are in hibernation? Whose calls do you think will be accepted by financial professionals or the media when the markets turn around?
There are smart investors this very minute looking for an opportunity to cherry pick when the markets are being beaten down. Studies by research groups and think tanks conclude that companies who reduce their marketing activities during times of economic contraction lose presence in their core markets and end up spending far more to reach a minimum level of exposure, never mind returning to where they were before.
Starting from scratch to rebuild trust with an audience costs you so much more than just money. Don’t lose the goodwill you have built up. Those that stay focused on their goal of building a loyal following end up taking market share away from their less aggressive counterparts.
Any marketing activity that is undertaken should have specific and measurable goals. Don’t waste your funds on poorly thought out campaigns – the one ad approach will not do the trick. Even in tough times, it is imperative that you increase your presence and exposure through strategies that will yield the best results. There are many strategies that can be undertaken that are affordable yet effective in reaching your audience.
For example, your database is a gold mine (mining companies, excuse the pun). If investors are thinking about selling your company’s stock, making contact via phone or email to let them know you are alive and well will put their minds at ease and possibly stop any selling action.
Points to remember:
• The best time to be out there is when no one else is! In other words, there is less competition for eyeballs when others are not promoting
• Be strategic in your IR, PR and marketing goals. Have a plan, execute it carefully, measure and fine-tune for best results
• Negotiate deals on advertising as media companies are hungry to fill their advertising quotas
• Be easy to find for cherry picking investors or consumers looking for sales
In summary, halting all IR, PR and marketing efforts because times are uncertain is not a strong strategy for growth or even maintaining what you already have. An analogy for marketing would be putting gas in the tank of your car – without it you won’t get very far.
In relation to recent market and economic conditions, as the ancient Sufism motto goes, “This too shall pass.” Where will your company be when it does? Hopefully, not starting from scratch. Be resilient and it will pay off.
As I have noted in past articles – when you don’t promote, a terrible thing happens –nothing.
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