All posts tagged: customer engagement

Conversation vs recommendation

By Mark Di Somma

Nice piece from Neil Glassman draws a distinction that I think has escaped many of us between conversation and recommendation. As the author himself says, he thought of social media as a platform to directly scale up word of mouth (WOM) marketing. But the synergy that looks so obvious doesn’t happen. In fact, says Glassman, compared to the effectiveness of what takes place offline, surprisingly little WOM is generated on social media. My sense is that while there is plenty of talk being pushed into the media, that content is then not, for the most part, being transmitted-on (or more specifically picked up) in the way that it is when WOM is in full flight. Glassman himself hints at why. People, he says, participate in social media to interact with friends and like-minded strangers about things that interest them. Social media marketers, on the other hand, engage with their customers hoping to encourage them to spread the word. The first interaction pivots on “us” – about the things that “we” share, which means ownership exists. …

The effect on Oprah?

By Mark Di Somma

We’ve all seen what the Oprah-effect has done for others. Now it will be interesting to see the effect of change on the O-brand itself. By changing the formula, how much does she risk tampering with the magic? Will another talk-show rise to fill the afternoon gap, or will the 40 million O-army decamp and migrate en-masse? Is that even possible? How much do the dynamics of a brand fundamentally change when you quite literally shift the channel in which it is seen?

Portion control

By Mark Di Somma

Often we don’t leave a favourite brand because of anything dramatic. In fact, quite the opposite: the experiences we have quietly fade to the point where there’s less reasons to stay than to go. One day the food isn’t quite as good as it was, the movies on the flight haven’t been changed in a while, the person we spoke with just now was that little bit less warm, the changes in the insurance policy are more inflexible and the biscuits in the pack are smaller and taste different. Brands make these changes with the best of intentions for the business. They do it to save money, to introduce a shortcut, to be more efficient. It’s just a little change right, a little reduction – think of it as portion control. No-one will notice. And most people don’t. Unfortunately, the people who do notice are the people who have been loyal to the brand. They know where this is heading. Not today perhaps. Not tomorrow. But at some point, this is going to be yet …

The assumption paradox

By Mark Di Somma

It’s easy to assume that your customers love your brand, that they are loyal, that they have every reason to continue doing business with you, that they want the next upgrade. It’s easy to assume that no-one noticed or cared about that little slip-up or that if they did, they understood. It’s easy to assume that your customers will continue to want what they have always wanted. Or that they will never want something back. It’s easy to assume that everything is fine – that privacy is beyond risk, that people don’t need to know that your phones could potentially track movements, that hackers can’t break into your online games, that people’s details are safely encrypted, that the takeover bid is too low, that your shareholders want to stay or that the market will continue to rise – or fall. If we each had to worry about the alternatives to each of these things all of time simultaneously, we’d go mad. So we assume. And it’s easy to do so because assumption is simply an …

Everyone expects to be rewarded

By Mark Di Somma

According to this post in the NY Times, Americans racked up about $48 billion of rewards via fly miles, hotel rewards, credit card points and other programmes in 2010. The average household it seems has 18 loyalty programmes and earns $622 a year in miles and points. So, roughly $35 value per programme per year. And yet nearly one-third of that amount will go unclaimed. You can read this as proof of the ubiquity of rewards systems, but what fascinates me is the clear expectation of consumers that they will now receive rewards in some form for so much of what they do, whether they cash them in or not. Once loyalty was. It existed out of convenience or preference, habit, range or relationships. Now, for many brands, loyalty costs. Sure, you get to keep the customer, but you keep them on retainer. You keep them by pumping incentives at them whenever they buy. And the irony of those incentives, looking at the stats above, is that such generosity doesn’t count for anything up to …

Pleased to meet you

By Mark Di Somma

This really thoughtful post by Associate Professor Rob Cross of the University of Virginia on building valuable networks caught my eye today. Specifically, I was drawn to the final para: If we are circulating too much with people we have known forever or people who themselves are all spending time in the same meetings and interactions, then we are not getting the performance impact … The magic lies in the new ideas and perspectives that can come from connections into different networks. The same point applies in many ways to the networks that brands build with their customers. If they are just selling the same goods, or even new goods, to the same community, then there is no contagion – no reason for the brand to spread interest and influence beyond those who already know it. A circle can quickly become a wall. The opportunity for brands is to introduce new ideas into their networks and marketing that ‘stretch’ those who know the brand well, but also serve to introduce and absorb new followers beyond …