The Red Cross text message campaign to raise donations for Haiti is brilliant. It's simple and immediate, two things that tend to resonate in America.
It's also been hugely effective, raising about $22 million in donations as of this past Sunday, or nearly one in every five dollars raised so far by the Red Cross for Haiti.
(By the way, if you haven't done so already, please text "Haiti" to 9099 and and $10 donation to the Red Cross relief effort for Haiti will be added to your phone bill.)
This makes me wonder about the future applications of this idea. Why couldn't I do the same thing to buy a product? Why can't AT&T or Verizon step forward to become the new PayPal for mobile commerce?
The BD'M culture club
By David Gee
“Do you want to start an agency?” said Fallon vet Stuart D’Rozario to his former and current colleague, Bob Barrie, over cocktails late one afternoon several years ago. The reply, “Can I tell you in the morning?” As you might imagine since you are reading this story, the answer did indeed come back in the affirmative and thus began a new agency called Barrie D’Rozario. Astute readers, however, will no doubt note there is a Murphy missing from the BDM triumvirate.
On April 1, 2007, Barrie D’Rozario did, indeed, become Barrie D’Rozario Murphy.
“The draw and the lure is having the opportunity to partner with other people who have a similar vision of what the culture should be like,” says Murphy answering his own question—and mine. “The world doesn’t need another ad agency, but when you have people who understand the role of culture, the right culture, the right people will be attracted to that and the right clients will value that. We have the same passion, the same interests and it’s very collaborative.”
“That said, we are very different people with different perspectives,” interjects Barrie. “I’m the guy who has spent my entire career in Minneapolis; five years at a couple of retail shops and then 24 at Fallon. Stuart, on the other hand, has worked in Seattle, Hong Kong, Boston and Bombay, and David was born in Pakistan and has worked all over the world as well.”
Having given up successful jobs in other places, the three now work together in a clean, crisp, open space on the second floor of the Wyman Building, to create and collaborate and run an “agency with no walls.” And, as per their own verbiage, they do just that:
No walls between BD'M and the clients …
“We think of it as one team,” says Murphy. “We don’t think of it as us and them. Clients say to us all the time, ‘don’t give me the org chart, just give me a handful of people that are going to make us successful.’”
No walls between BD'M and other partners working for clients …
“We’re obviously independent, and that has its blessings,” says Barrie. “We can collaborate with virtually anyone in the world without undue influence to use a certain company or person simply because they’re ‘in the network.’ The model has become that clients don’t have just one agency anyway, they tend to work with a lot of agencies. Whether we are the lead brand agency, like we are with United, or a supplemental support agency, like we are with Best Buy, we play well and collaborate with others. A lot of agencies are real competitive and constantly jostle for position, but we found our work is better and the mood is better if we approach it as ‘we’re all in this together.’”
No walls between people of different disciplines in the agency…
“My pet peeve has long been the creative department,” says D’Rozario, a former creative director at Fallon. “Everyone thinks it’s ‘hallowed ground,’ this special place. The one thing we will never have at BDM is a creative dept. It’s all just smushed together.”
Of course, there are only a couple of dozen people “smushed together” at BDM, as opposed to the several hundred people at places where the three principals have worked previously. What about the head count? The infrastructure? The heads of the big agencies in New York, Chicago and L.A. will obviously always say size matters. Does it still in the ad agency world? I asked David Murphy.
“When I was running the Y&R shop in LA, I developed this game that I used with people in response to the question, ‘What’s the agency going to do about this or that?’ I’d say there’s no such thing as ‘the agency.’ Because for Callaway Golf, one of our clients, there were seven people. That was the agency to the client. For Sony it was 22 people. So it really comes down to small teams. There are never 200 or 300 people working on one client’s business. The team we have working for BD'M on United’s account is no different than the number of people who would be working on it at a bigger agency. One thing that is different, however, is that bureaucracy and compartmental silos do not encumber our team. We have the same brain power, the same resources, but they are more directly applied to the client and their jobs.”
So you can make the argument size doesn’t matter, but awards always do. And the BD'M crew scored a big one this past fall when they came out on top in the small agency category for the American Association of Advertising Agencies O’Toole Award for Creative Excellence. And they took out a full-page ad in the New York Times (see sidebar) to tell the world about it.
“We got phone calls and emails for days, including from people who aren’t even in advertising!” says Barrie excitedly. “They were sitting in a coffee shop and calling saying how much they loved this ad because it spoke for the little guy.”
“We had a lot of fun with it, but it was actually kind of a risk,” adds Murphy. “The industry is starved to have a point of view and it was really kind of cheeky.”
“I actually wrote the ad sitting at the kitchen table,” says D’Rozario. “It has helped bring us some business, and we enjoyed it, but then you move on. The biggest thing about awards is that clients are hiring us to make them more successful and it gives them confidence that we are successful ourselves.”
And as the ad says, the agency’s principals do want BD'M to grow. However, they are quick to add—in unison—they want responsible, healthy, organic growth so the agency doesn’t get too big, too fast, and implode on itself as they have seen others do. And that involves not only paying attention to revenue and head count and clients, but also the culture.
“One thing I have learned here at BD'M is it really is all about the culture,” Murphy closes. “Everyone has the same processes, the same flow charts, etc, but it’s the culture that makes things happen.”
The decade of analytics.
I believe the new decade will be defined in marketing circles as the analytics decade.
Over the past ten years marketers have become adept at using ones and zeros to market to customers. We now must use these same digital tools to learn more about satisfying our customers.
Traditional forms of market research have long revealed the chasm between what customers say versus what they actually do. What people say in focus groups is often quite different than how they actually spend their time and money. We often find clearer insights when we observe real behavior. We used to rely solely on field work to see consumer-erectus in its natural environs. Now we can use their actual online shopping behavior to get a real-time fix on their behaviors, wants and needs.
A recent NY Times article ("A Data Explosion Is Remaking Retail") illustrates this point in action.
I particularly like the example of Wet Seal, the teen fashion retailer, which bases its merchandising and inventory decisions on the trends it observes when customers use the Outfitter feature on its website to see how different items might look when paired together -- e.g., which tops go with which jeans, color combinations, dressy/casual mash-ups, etc.
To be sure, we've long been able to gauge behavior by looking at what people buy online. What's interesting about Wet Seal's Outfitter application is its ability to analyze what people would like to buy in the future, based on real behaviors on the retailer's website.
Over the past ten years marketers have become adept at using ones and zeros to market to customers. We now must use these same digital tools to learn more about satisfying our customers.
Traditional forms of market research have long revealed the chasm between what customers say versus what they actually do. What people say in focus groups is often quite different than how they actually spend their time and money. We often find clearer insights when we observe real behavior. We used to rely solely on field work to see consumer-erectus in its natural environs. Now we can use their actual online shopping behavior to get a real-time fix on their behaviors, wants and needs.
A recent NY Times article ("A Data Explosion Is Remaking Retail") illustrates this point in action.
I particularly like the example of Wet Seal, the teen fashion retailer, which bases its merchandising and inventory decisions on the trends it observes when customers use the Outfitter feature on its website to see how different items might look when paired together -- e.g., which tops go with which jeans, color combinations, dressy/casual mash-ups, etc.
To be sure, we've long been able to gauge behavior by looking at what people buy online. What's interesting about Wet Seal's Outfitter application is its ability to analyze what people would like to buy in the future, based on real behaviors on the retailer's website.
How Cadillac can become cool again.
BNET contacted me recently and posed this question, “What should Cadillac do to strengthen its brand image?”
The article appeared today on BNET. Given the limitations of space, the article had to excerpt the ideas put forward from each of the brand strategists who were interviewed. But given the unlimited space of my own blog, I thought I’d offer up the complete point of view I shared with BNET.
Here's what I think Cadillac should do to regain its mojo.
Behave like a technology brand, not an automotive brand. Throughout the last century the automobile stood for freedom, mobility and joy. Cars represented modern life at its best. Today, technology defines modern life. Each new smart phone or lifelike home theater joyfully proclaims that today is better then yesterday. Automotive brands such as Lexus and Ford are beginning to embrace this idea. Cadillac's brand positioning should be grounded in technology. This requires more than simply promoting whiz-bang gizmos. It's about projecting the sense of optimism and progress we want from technology. It’s about forging an image of being forward-looking, smart and efficient.
Here's the innovation brief I'd give to the engineering team: Pioneer new technologies that liberate us from old compromises. Prove that design and performance can co-exist with safety and environmental responsibility. After all, the basis of Moore's Law, Silicon Valley's driving force, is that technology should always help people do more with less.
Understand the difference between "luxury" and "premium." Premium is more than price. Premium is about worth. This requires a new way of behaving. The most successful premium brands exude worth through a mix of sensuality, rarity, confidence, authenticity and quality. (These should replace typical automotive brand values such as bold, exciting, powerful, etc.)
Continue taking more design risks. Right now, Cadillac’s cars are looking sharper, the interiors feel more premium and the quality of its cars and SUVs has been steadily improving. Cadillac has created a solid foundation from which to build. Never again revert to playing it safe. Exploit the fact that a designer is now running the company. We live in a very design savvy age. Bryan Nesbitt is a fresh face for the brand. He should be used extensively in PR and maybe even advertising. I think he could pull it off. Internally, use design thinking to rethink the overall brand experience, not just the product.
Begin cultivating Gen Y. To be sure, this generation is not yet ready to buy Cadillacs. But it is a mistake to continue picturing this group on the playground – nearly half are of college age. Cadillac needs to become this generation’s counter-intuitive statement. Every generation embraces a new idea to proclaim that they are not their parents. Boomers and GenX embraced Lexus and BMW over Cadillac and Lincoln. The minivan was a revolt against the station wagon just as the SUV was a protest against the minivan. Why can’t Cadillac be this next generation’s mark of independence from their Mercedes and BMW driving parents?
At the end of the day, Cadillac must solve the cocktail party dilemma. People must be able to look a peer in the eye and say, “I bought a Cadillac” without having to explain why. This is the crux of the problem. People never have to explain why they brought a Mercedes (engineering), Lexus (quality) or a Land Rover (adventure). Cadillac can be progressive and smart.
Playing it safe won’t do. Cool, must-have technologies. An image of being progressive and smart. Audacious marketing. And new cars that have convey the optimism and swagger of concept vehicles. That's a plan that will rock the cocktail party circuit.
The article appeared today on BNET. Given the limitations of space, the article had to excerpt the ideas put forward from each of the brand strategists who were interviewed. But given the unlimited space of my own blog, I thought I’d offer up the complete point of view I shared with BNET.
Here's what I think Cadillac should do to regain its mojo.
Behave like a technology brand, not an automotive brand. Throughout the last century the automobile stood for freedom, mobility and joy. Cars represented modern life at its best. Today, technology defines modern life. Each new smart phone or lifelike home theater joyfully proclaims that today is better then yesterday. Automotive brands such as Lexus and Ford are beginning to embrace this idea. Cadillac's brand positioning should be grounded in technology. This requires more than simply promoting whiz-bang gizmos. It's about projecting the sense of optimism and progress we want from technology. It’s about forging an image of being forward-looking, smart and efficient.
Here's the innovation brief I'd give to the engineering team: Pioneer new technologies that liberate us from old compromises. Prove that design and performance can co-exist with safety and environmental responsibility. After all, the basis of Moore's Law, Silicon Valley's driving force, is that technology should always help people do more with less.
Understand the difference between "luxury" and "premium." Premium is more than price. Premium is about worth. This requires a new way of behaving. The most successful premium brands exude worth through a mix of sensuality, rarity, confidence, authenticity and quality. (These should replace typical automotive brand values such as bold, exciting, powerful, etc.)
Continue taking more design risks. Right now, Cadillac’s cars are looking sharper, the interiors feel more premium and the quality of its cars and SUVs has been steadily improving. Cadillac has created a solid foundation from which to build. Never again revert to playing it safe. Exploit the fact that a designer is now running the company. We live in a very design savvy age. Bryan Nesbitt is a fresh face for the brand. He should be used extensively in PR and maybe even advertising. I think he could pull it off. Internally, use design thinking to rethink the overall brand experience, not just the product.
Begin cultivating Gen Y. To be sure, this generation is not yet ready to buy Cadillacs. But it is a mistake to continue picturing this group on the playground – nearly half are of college age. Cadillac needs to become this generation’s counter-intuitive statement. Every generation embraces a new idea to proclaim that they are not their parents. Boomers and GenX embraced Lexus and BMW over Cadillac and Lincoln. The minivan was a revolt against the station wagon just as the SUV was a protest against the minivan. Why can’t Cadillac be this next generation’s mark of independence from their Mercedes and BMW driving parents?
At the end of the day, Cadillac must solve the cocktail party dilemma. People must be able to look a peer in the eye and say, “I bought a Cadillac” without having to explain why. This is the crux of the problem. People never have to explain why they brought a Mercedes (engineering), Lexus (quality) or a Land Rover (adventure). Cadillac can be progressive and smart.
Playing it safe won’t do. Cool, must-have technologies. An image of being progressive and smart. Audacious marketing. And new cars that have convey the optimism and swagger of concept vehicles. That's a plan that will rock the cocktail party circuit.
Repositioning a brand.
Last week BD’M presented a deep dive into brand repositioning case studies to identify the strategies that drive success, as well as the mistakes marketers must avoid.
Dave Daily, Christine Dennis and Amber Greenwalt worked with me on researching these cases. We examined repositioning efforts over the last several years across a range of CPG, B2B and corporate brands.
As a starting point we isolated the most common strategies that marketers employ, levers that are often used in tandem for maximum effect:
Dave Daily, Christine Dennis and Amber Greenwalt worked with me on researching these cases. We examined repositioning efforts over the last several years across a range of CPG, B2B and corporate brands.
As a starting point we isolated the most common strategies that marketers employ, levers that are often used in tandem for maximum effect:- New visual identity
- New meaning and context.
- New behaviors (distribution, media, promotion, product, etc).
- New target audience.
- New pricing.
- Clearly define the problem. Don’t fix what isn’t broken. (Walmart did this particularly well.)
- Find a new positioning from within the truth of the brand. Be credible. No skin grafts. (Cisco is a good example of extending a core brand truth.)
- Create tight alignment throughout the value chain. The experience must line up with the advertising. (Few have done this better than Target. Sun Chips is another interesting example.)
- Change behavior, not just words and symbols. Provide tangible evidence of change. (Hyundai nailed this several times over. As did Old Spice.)
- Seek inspiration from your best customers. (Holiday Inn conducted extensive research among customers. )
- Execute a seamless re-launch, no patchwork roll-out. (Holiday Inn seems to be doing this well, with real penalties for franchisees that do not meet spec.)
- Pre-plan Phase 2 of the re-launch. Demonstrate continuous improvement. (Hyundai has successfully sequenced image-shifting initiatives over time.)
Design as a business strategy.
I've written on several occasions about the value of embracing design thinking as a business discipline, not just as an aesthetic process.
Design thinking forces executives to view the world from the customer's standpoint. It focuses on the overall experience and not just the tangible product. It requires reductive thinking. All very healthy business practices, not simply design practices.
Roger Martin, Head of Canada's Rotman School of Management, brings some fresh thinking to the topic, continuing the trend of B-Schools thinking and educating more like D-Schools. According to Martin, business leaders who embrace design thinking focus more on the possibilities over the existing framework, they balance analysis with intuition, and they discard templates in favor of fresh solutions when attempting to solve strategic challenges.
Another piece I read recently by Nancy Duarte and Garr Reynolds in the MIT Sloan Management Review further illuminates the similarities between great managers and designers. According to Duarte and Reynolds, "Managers and designers have to do the same things: Embrace restraints, question everything, and make sure tools don't get in the way of ideas. Design concepts such as hierarchy, balance, contrast and harmony are just as relevant to managers."
Finding the competition's Achilles' heel.
We often see companies attempt to compete against a successful category leader through price cuts and other forms of discounting in an attempt to maintain market share. This is usually the sign of a company that is out of ideas.
A smarter strategic response is to see if you can turn the leader's strength into their vulnerability.
I was reminded of this while reading a Wall Street Journal article on how Illy has chosen to compete with Starbucks. Starbucks’ strength is its ubiquity. Illy cannot compete by building more brick and mortar. So its response is to piggyback on the ubiquity of local independent coffee shops, signing contracts with cafes that agree to serve Illy exclusively and allow Illy to exert quality control. Starbucks’ strength becomes its vulnerability – too many stores result in too much overhead and fewer opportunities to grow. Illy becomes the cool indie brand.
We see this same dynamic at work in other categories.
Amazon turned Barnes & Noble’s success in building bookstores around the country into bloated overhead that hangs around the retailer’s neck like a lead weight.
Apple reshaped Microsoft’s long time dominance in the corporate market into the image of a tweedy bureaucrat.
Enterprise built an entirely new category – temporary replacement cars for suburbanites – that Hertz and Avis cannot easily serve from their deeply entrenched airport locations.
And then there is Google, a company that uses the power of "free" as a competitive wedge to disrupt categories.
Your competitor's strength also can be its Achilles' heel. Find it and exploit it. Don't play the game by their rules. They'll win every time.
A smarter strategic response is to see if you can turn the leader's strength into their vulnerability.
I was reminded of this while reading a Wall Street Journal article on how Illy has chosen to compete with Starbucks. Starbucks’ strength is its ubiquity. Illy cannot compete by building more brick and mortar. So its response is to piggyback on the ubiquity of local independent coffee shops, signing contracts with cafes that agree to serve Illy exclusively and allow Illy to exert quality control. Starbucks’ strength becomes its vulnerability – too many stores result in too much overhead and fewer opportunities to grow. Illy becomes the cool indie brand.
We see this same dynamic at work in other categories.
Amazon turned Barnes & Noble’s success in building bookstores around the country into bloated overhead that hangs around the retailer’s neck like a lead weight.
Apple reshaped Microsoft’s long time dominance in the corporate market into the image of a tweedy bureaucrat.
Enterprise built an entirely new category – temporary replacement cars for suburbanites – that Hertz and Avis cannot easily serve from their deeply entrenched airport locations.
And then there is Google, a company that uses the power of "free" as a competitive wedge to disrupt categories.
Your competitor's strength also can be its Achilles' heel. Find it and exploit it. Don't play the game by their rules. They'll win every time.
The power of touch.
We’re supposed to be hurtling toward an age where all business is done through ones and zeros, with sales and service more efficiently handled online.
To be sure, we see many examples where this is producing a better outcome for marketers and their customers. Witness iTunes vs. Tower Records, Netflix vs. Blockbuster, Amazon vs. Barnes & Noble or Expedia vs. your neighborhood travel agent.
But this rush to virtual selling is not a one-size-fits-all strategy for all categories and marketers. Some recent examples illuminate our desire to see, touch and feel products, and how the best service is often carried out face to face.
What got me thinking about this is Microsoft’s announcement that it is opening retail stores, with the first launching in Scottsdale and Orange County. Like Apple stores, these outlets will sell hardware and software and offer technical support for people who are proud to be a “PC.”
And speaking of Apple, reports suggest that its stores generate more revenue per square foot than any retailer in the country. What more need be said about the power of a strong retail concept?
Recently, General Motors took the bold step in California to sell its cars on eBay. Great idea, lousy results. Turns out people prefer coming into the dealership to haggle. (I’ve witnessed this dynamic before in automotive research. Customers say they hate haggling but don't want to accept a fixed pricing model.)
Best Buy, a client of BD’M, has a strong online sales channel but knows that its key source of differentiation and repeat business is the knowledge and objectivity of its “blue shirts” working the store aisles.
The lesson to be learned may be that we are a prisoner of our vocabulary. Brick and mortar. Click and mortar. Retailing vs. e-tailing. Perhaps it's simply about the reassurance customers get from real live human interactions. That can happen in a store. That can also happen online via “click to chat.” Either way, it has to happen. I think we’re starving for true contact.
To be sure, we see many examples where this is producing a better outcome for marketers and their customers. Witness iTunes vs. Tower Records, Netflix vs. Blockbuster, Amazon vs. Barnes & Noble or Expedia vs. your neighborhood travel agent.
But this rush to virtual selling is not a one-size-fits-all strategy for all categories and marketers. Some recent examples illuminate our desire to see, touch and feel products, and how the best service is often carried out face to face.What got me thinking about this is Microsoft’s announcement that it is opening retail stores, with the first launching in Scottsdale and Orange County. Like Apple stores, these outlets will sell hardware and software and offer technical support for people who are proud to be a “PC.”
And speaking of Apple, reports suggest that its stores generate more revenue per square foot than any retailer in the country. What more need be said about the power of a strong retail concept?
Recently, General Motors took the bold step in California to sell its cars on eBay. Great idea, lousy results. Turns out people prefer coming into the dealership to haggle. (I’ve witnessed this dynamic before in automotive research. Customers say they hate haggling but don't want to accept a fixed pricing model.)
Best Buy, a client of BD’M, has a strong online sales channel but knows that its key source of differentiation and repeat business is the knowledge and objectivity of its “blue shirts” working the store aisles.
Jyske Bank, Denmark's third largest bank, represents one of the most famous case studies on the power of a unique retail experience. Jyske re-imagined their savings and checking services as physical "products" to make them tangible and clear and evoke an emotional connection. They created that special "third place" -- a haven that is neither home or work -- that has been the secret sauce behind Starbucks' success. The result? Ad Age reported that Jyske Bank doubled its customer base in one year by improving loyalty while attracting new customers.
I am fortunate enough to have earned United’s double-secret “Global Services” status from our client. The aspect of the service I value most (other than the really cool black card!) is the GS hotline where the phone is answered by a real, empowered person before I even hear the first ring. While not an example of brick and mortar, it is another way to give customers the satisfaction of real and helpful interaction, not automated voice prompts.
The lesson to be learned may be that we are a prisoner of our vocabulary. Brick and mortar. Click and mortar. Retailing vs. e-tailing. Perhaps it's simply about the reassurance customers get from real live human interactions. That can happen in a store. That can also happen online via “click to chat.” Either way, it has to happen. I think we’re starving for true contact.
Read this today while supplies last.
Advertising has long relied on the straightforward call-to-action to prompt consumers to act now. It's been a simple tactic that never required much more thought than how loud to shout or how bold to make the type.
However, today's media environment challenges us to imagine new ways to invite a response from customers. Mobile, search and social media create smarter and more specific opportunities to prompt an immediate action.
I began thinking about this when I saw an ad for Sony Pictures' new release, "2012." The billboard said, "Search 2012." This call-to-action is brilliant in its simplicity. It recognizes that people are increasingly dialing up brands through search, not by typing in a brand's URL. The volume of Google searches prompted by this call-to-action results in a wall of search hits that makes 2012 seem like a pop culture buzz machine. Moreover, the simple request to "search" may even inspire more curiosity about what one will find.
I've long advocated that we view mobile phones as a response device, not as an advertising platform. I think we can agree that everyone we know carries a mobile phone. And smartphone penetration is around 20% and climbing. (Presumably much higher among the business crowd.) For example, including an SMS call-to-action in a magazine ad transforms an offline message into an interactive message. The exponential increase in iPhone apps is creating new ways for consumers to shop as soon as they see a brand's commercial. In fact, Pizza Hut now ends its commercials with an invitation to order via iPhone.
Social media offers an entirely different call-to-action. For example, Prius asks people on Facebook to share "Random acts of Prius" -- small gestures that can help your friends make the next 24 hours better than the previous. (Props to my former colleagues at Saatchi.)
So next time we're writing a brief, or thinking about writing a throw-away final line of copy, take a few minutes to think through a more interesting way to compel customers to interact with the brand.
But do so today!
Designers invade the executive suite.
Last year Advertising Age published an article I wrote about the lessons car companies can learn from the iPhone. One of the suggestions I made was to elevate designers to a greater leadership role.
Two reasons why I wrote this: First, car companies are industrial design firms at their core. Second, design-led thinking is a business strategy, not simply an exercise in visual packaging. Design-led thinking forces a company to have a more intimate understanding of their customers and their interactions with the brand, and then be very reductive in creating a more valuable experience.
I didn't think it would ever happen. But it has. Twice. In Detroit.
Last month General Motors promoted designer Bryan Nesbitt to be General Manager of its Cadillac Division. That's unheard of. Until, of course, this week when Chrysler promoted Ralph Gilles to be President of its Dodge Car unit. This is a bold and long-overdue move. I'm eager to see what unfolds.
The clearest perspective on design as a business strategy comes from David Butler, Coke's VP of Global Design. "Here, it's about creating more value. How do we sell more of something? How do we improve the experience to make more money and create a sustainable planet? We're leveraging design to drive innovation and win at the point of sale...full stop." His profile in October's Fast Company is an instructive read.
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