New US survey uncovers loyalty findings

We all know about the high cost of acquisition compared with retention costs.

Yet it seems that only about half of all senior marketing people know who their most loyal customers are and how best to reach out to them.

us surveyThis is one of the more surprising findings of a new study carried out jointly by Acxiom and Loyalty 360 in the US. Entitled, Making Every Interaction Count: How Customer Intelligence Drives Customer Loyalty, the report was released on 26 March 2012. 

The survey respondents said the biggest impediments to collecting customer insight are budget limitations (52.2%), lack of IT support (48.9%) and lack of the right tools (47.8%).

Maybe part of the problem is that the very concept of loyalty is so vague. Is loyalty defined by the number of products a customer buys or the frequency of purchase? Does it mean that a customer interacts with your brand on social media? Where does advocacy fit into the picture?

Other findings included:

  • 85% of marketing execs in the survey said they have some type of customer retention strategy in place, but only one-half say those strategies are working.
  • 60% said they devote less than 20% of their marketing budgets to customer retention.

Given the high cost of acquisition it makes you wonder why identifying loyal customers – and improving the customer experience for them – is not higher on the list of marketing priorities.

When to use capital letters?

In writing at work, it seems that many people have problems with the question of when to use capitals.

whentusecapitalsCorrect: The Marketing Department at Monash University.
Incorrect: That’s the Department I spent time in at University (you don’t use caps unless you are using the proper name).

Kate is Manager, New Products. She is a manager who is going places. The word ‘manager’ deserves an uppercase ‘M’ only when it is a specific title. When you are referring to managers in general, or to a specific person as a manager, it should be all lowercase.

When you're trying to decide whether to capitalise a noun, you have to figure out whether it's a proper noun or a common noun because proper nouns are capitalised and common nouns aren't. And by the way, a noun is a person, place, or thing.

So what are proper nouns? Proper nouns name specific people, places, or things. Names like Julia, Sarah, and Jacob are capitalised because they're proper nouns that name specific people. On the other hand, words like ‘boy’ and ‘girl’ aren't capitalised because they're common nouns that don't refer to any one individual person or item.

So names are easy, but what about other words that seem as if they could go either way?

Internet, Web, and Website

Is the Internet one specific place or is it a collection of things? Most language experts including the Associated Press believe the Internet is one big specific network that people visit, so they recommend capitalising the word ‘Internet.’

On the other hand, the Web is populated by many different websites, so ‘website’ is not capitalised. It is a generic term that can be used to describe many different locations.

‘Internet’ is a proper noun because it refers to something specific, whereas ‘website’ is a common noun because it can be used to refer to many different places on the Internet.

Other descriptive compound words that include ‘web,’ such as ‘webcam,’ ‘webinar,’ and ‘webmaster,’ are also lowercase.

But there are some tricky ones: take ground zero. You have probably seen it either way.

However, most people agree that Ground Zero is the name of the specific site of the former World Trade Centre, and therefore it's a proper noun that needs to be capitalised when it is used in that way.

Another one that can go either way is the word ‘depression’. If you're talking about the Great Depression, then you are referring to a specific historical period, so it's capitalised. But if you are simply saying that ‘with the economic outlook so uncertain, depression is a possibility’ then it’s lowercase.

Biggest grammar error

Would you like to know the biggest grammar error in English: its vs. it's.

itsitsBut with two easy rules you can nail it:

Rule 1: When you mean it is or it has, use an apostrophe.

Examples:
It's a nice day.
It's been great seeing the new advertising campaign this season.

Rule 2: When you are using its as a possessive, don't use the apostrophe.

Examples:
The dm Forum celebrated its tenth anniversary.

The ultimate insult

qantas imageQantas has delivered the ultimate insult to its customers.

The gigantic dummy spit by Mr Joyce is just mind blowing in its approach. ‘I can’t control the unions, so I am taking my bat and ball and going home’. If you have paid good money for a ticket, that’s bad luck. You’ll just have to wait.

Maybe he thinks that most Australians will continue their love affair with the national carrier and that no long term harm will be done. Well, who knows, he may be right. But if I was stranded on the other side of the world, I would certainly never fly Qantas again.

Those customers who were inconvenienced, all had a choice. They were not obliged to choose Qantas. They chose to put their trust in his airline, yet Mr Joyce spat in their face. Big time. Can you imagine treating your paying customers like that?

We are used to pathetic service in Australia.

We all know that most retailers have no idea of really caring for customers. You only have to shop in the US for a few days to have that point hammered home. But this action by Qantas sets a new low in showing contempt for customers.

Of course, the situation is complex. I am sure there is no easy answer. But if Mr Joyce and his team had any idea as managers, it would not have reached such a crisis.

But maybe we should not be totally surprised. There has to be solid reasons for the rating fall that Qantas has suffered over recent years.

Currently the airline is considered a four-star airline by the highly regarded global research consultancy firm Skytrax. In 2011, Qantas was voted the eighth best airline in the world by the firm, a drop from 2010 (seventh), 2009 (sixth), 2008 (third), 2007 (fifth), 2006 (second), and 2005 (second).

And then there is the share price! From a high of nearly $6 about four years ago it is now around $1.50. Maybe taking the planes out of the air is aimed at rescuing the share price. Well, it’s a novel approach. I have to give them that.

Learnings from Boston

One of the speakers at the Boston Direct Marketing conference earlier this month was a man who has been to Australia many times, Alan Rosenspan. Alan is recognised as a top creative in the US and his presentation included these gems:

    Do yourself a favour and believe you are creative – that’s an essential (and remember, it is nothing to do with IQ).
    To be creative you need to challenge assumptions, take risks and ask questions.
    Your creativity won’t be effective unless your primary focus is on your prospects.

From Google, conference delegates heard:

   Mobile search has increased 500% in the last 12 months (and by the end of 2011, 50% of Americans will have a smart phone).
   Search is increasingly specific: on any day now, 16% of searches are searches that Google has never seen before.
   Today, 33% of all searches are local – typically mums and dads no longer search for a garden blower, but modern searches look more like this: ‘a noise reduced, medium force, garden blower in the Camberwell area’.

Business-to-Business marketing: there were a number of reminders promoted at the conference with the first one being that the four keys to B-to-B are:

1.    Take it slowly,
2.    Use data wisely,
3.    Contact people on their terms, and
4.    Know when to close the deal.

For B-to-B marketers, we were also given the ‘7 great rules of engagement’:

1.    Do not initiate contact without a clear objective
2.    Start with the customer, not with your product/service
3.    Pick-up where the interaction left-off
4.    Don’t ask the prospect for the same thing more than once
5.    Make the interaction personal and personalised
6.    Deliver information that reflects what you’ve learned about them
7.    Learn about the customers/prospects in bits... not all at once

At the conference also, ace copywriter Herschell Gordon Lewis shared many hints on making direct mail more successful. Here are five of them:

frank with top copywriter1.    Notes in the margin can be a good idea, but they should be in the same font as the signature and the heading and there should be no more than two per page (one is probably better).
2.    The purpose of the envelope is to get opened. Too much text on the envelope is likely to cut response.
3.    A play on words may be fun for the writer, but a play on words is rarely effective in selling.
4.    A lift letter will usually increase response, but it should be prepared on different letterhead and in a different font.
5.    In Direct Mail, examples work better than statistics. Examples are warm-blooded, whereas stats are cold-blooded.

Herschell Gordon Lewis has been writing successful direct mail for more than 40 years. His latest book was released at the conference in Boston and it is a ‘must read’ for anyone serious about writing effective copy. (“On the Art of Writing Copy” 4th edition.)

Learning from top copywriter

In Boston last week at the Direct Marketing Annual Conference, I was lucky enough to spend two full days with America’s top copywriter, Herschell Gordon Lewis.

top copywriterApart from being totally inspired by this engaging 82 year old doyen, I learnt 79 specifics about copywriting from him. Here are seven that may interest you:

1.    The word ‘free’ is not as powerful as it once was because it has so often been misused and diluted with conditions. However, it is still very powerful in sales copy.

2.    In financial mailings over the last five years, Lewis has not once had more success with four colour than with two colour.

3.    In this current age of scepticism, cleverness for the sake of cleverness is more likely to be a liability than an asset.

4.    When you emphasise everything you emphasise nothing.

5.    In sales copy, you must tell the prospects what you want them to do.

6.    If you want to motivate someone to buy something, you must remember that the five biggest motivators are: fear, exclusivity, greed, guilt and the need for approval.

7.    Friday maybe a better day for sending promotional emails. Only 14% of emails go out on Fridays (compared with Tuesdays when 24% of all emails are sent).

Social media - must do

Social media marketing is at the top of everyone's must-do list. But make sure you get the conversation right or your strategy could backfire.

Social media marketing (SMM) takes word-of-mouth referral to the next stratosphere. What was once a one-to-one dialogue is now one-to-many.

So when your customers start talking about you or your product, you want them to be talking like true friends.

SMM gets your message distributed so much faster. By combining your Search Engine Optimised content with your Social efforts, you get noticed. Very quickly and through multiple channels.

Facebook, Twitter, YouTube, LinkedIn and even SlideShare can all pick up your message. You could be viral before you know it.

Just look at the success of the mid 2011 "Thank You Water" campaign. [go to: www.thankyouwater.org] The young Aussies behind the charitable bottled water couldn't get their product on 7-Eleven's shelves without evidence of consumer demand.

They put the call out on Facebook and Twitter asking for posts to be tagged for 7-Eleven to see. Within days they had hundreds of wall posts and video uploads followed by celebrity support and national media attention.

And guess what? The bottled water was accepted into 7-Eleven stores.

SMM is flashy, fast and efficient. Just make sure your product and service can stand up to the expectations your content creates.

Words that confuse

The English language contains some contentiously confusing words and rules.

Some can even stump a word-smith.

1.

One of the curliest conundrums would have to be when to use affect and effect.

Affect is normally a verb, so it wants to do something.

How will this affect me?

Effect is a noun. So it is the result or thing that happens.

The effect of the heavy rain was flash flooding.

2.

A rule that is followed religiously, but unfortunately often in error, is the use of I and me. I think I can quite fairly blame my parents for this one.

I had it drummed into me to put the other person first in a sentence.

Paula and I went to the park.

So when should I use me?

You should join Paula and me next week.

It's still correct to place the other person before you. But the trick for I or me is to imagine the sentence without the other person in it.

I went to the park.
You should join me next week.

Both of these sentences still work without including Paula.

3.

And finally, forward and foreword. This one is simple to clear up.

Moving forward has become an overused cliché in many businesses.

The foreword is the preface or introduction to a book.

There you have it: forward is the direction of future plans and foreword refers to the words before chapter one.

Is the retail downturn surprising?

Not really.

Over the years, retailers have never understood marketing. They are into selling, of course. And that's fine. But there is more to business than selling and retailers have never really been prepared to face that.

In addition, they have been asleep about the changes going on locally and around the world.

The internet has been around for a long time. Don't you think, at some stage, retailers would have wondered where online buying was going?

The amazing part is that change in consumer buying patterns has come so slowly in Australia. Consumers have given retailers ample time to prepare, to change their sales model, to re-position themselves. But have they done any of this? Mostly no.

We all have stories of appalling retail experiences. Last week I popped into a Dan Murphy outlet to buy a gift. I chose a two-bottle pack of local wine. When I was paying, I asked for a bag - it was raining outside and I did not want to get the gift pack wet. Well, you guessed it. Dan Murphy does not have bags now!

I did the best I could to protect the gift under my jacket as I ran to the car. And then, as I drove off, I began reflecting: if I had done this transaction online, the wine would have arrived very well packed and totally protected from the elements.

Next time, Dan Murphy will miss out.

Let's think of it another way: how many times do your friends tell you they are busy? Very often, I'm sure. Frantic today. Over the top busy, tomorrow. It seems to be constant. And this is not new.

Don't you think retailers would have started to think about this? With all the rushing in our society, sooner or later, some people will choose the time-saving and convenient option of buying online.

But retailers are still doggedly pursuing their 'shopping experience' idea. That's OK for some people, but there are increasing numbers who don't want a shopping experience.

But the retailers have not heard this yet.

No, I am not surprised they are suffering, and generally speaking I have no sympathy for them. They have just been too dull to see it coming.

It's a lesson for all of us. As marketing professionals, you have to be aware of what's going on around you. You have to be good at listening. And being perceptive about other people and changing habits. Maybe that's why in the US, so many marketing students are now taking a psychology major with their marketing studies.

Working B-to-B leads


Pushing information out to customers and prospects is not nearly as effective as it once was.

Today 'findability' is much more important. As well as an excellent website, you need to consider having an online presence through directories, specialised search engines and industry websites.

Prospects with clearly defined needs search for solutions whenever and wherever they deem convenient for them—not you.

Invest in making it easy for potential customers to find you and understand your value. That's how you brand your company and generate leads at the same time. It's a marketing mix that translates your best leads into your best customers.

Identify the needs and challenges of your ideal customers and deliver messages that explain how you meet their requirements and solve their problems. This approach will build the brand for the long-term. And attract more of the right leads today.

Remember too, that the internet loves content. Help prospects learn about your industry and product category as a whole. If you produce a regular stream of quality content, you can often generate leads while building the brand.

Once you have a lead in your pipeline of prospects, then nurturing becomes important. There is lots of research that indicates that, in the B-to-B world, up to 70 percent of business comes from long-cycle sales leads. That's why nurturing needs your careful attention.

Working B-to-B leads

Pushing information out to customers and prospects is not nearly as effective as it once was.

Today 'findability' is much more important. As well as an excellent website, you need to consider having an online presence through directories, specialised search engines and industry websites.

Prospects with clearly defined needs search for solutions whenever and wherever they deem convenient for them—not you.

Invest in making it easy for potential customers to find you and understand your value. That's how you brand your company and generate leads at the same time. It's a marketing mix that translates your best leads into your best customers.

Identify the needs and challenges of your ideal customers and deliver messages that explain how you meet their requirements and solve their problems. This approach will build the brand for the long-term. And attract more of the right leads today.

Remember too, that the internet loves content. Help prospects learn about your industry and product category as a whole. If you produce a regular stream of quality content, you can often generate leads while building the brand.

Once you have a lead in your pipeline of prospects, then nurturing becomes important. There is lots of research that indicates that, in the B-to-B world, up to 70 percent of business comes from long-cycle sales leads. That's why nurturing needs your careful attention.

Singular or plural?

When you have the word 'and' in your subject, is it always plural? No, not always.

"Peanut butter and jelly is available in the cafeteria," and "Meat and potatoes was my grandfather's favourite meal."

In these sentences, the two items combine to form a single unit (one dish) and this is the crux of the matter. When the nouns form 'a collective idea' or 'a oneness of idea,' the singular verb is appropriate"

But sometimes it is not clear. How do you view the following?

"His humility and his decency reflects the very best of the Australian spirit."

To decide on singular or plural, we need to assess whether "his humility and his decency" are two variations on a theme and therefore one thing, or if these two personal qualities are "different and separable."

They seem like separate ideas to me. A person could be decent but not so humble. So I vote for singular. You may disagree.

So what's the solution?

If you come across this problem in your own writing, you'll probably make someone unhappy no matter which verb you choose - singular or plural.

Your best chance for pleasing everyone is to recast the sentence so that you no longer have to wrestle with the idea of singular or plural.

What about this:

"He embodies the very best of the Australian spirit with his humility and his decency."

Problem solved.

Always remember that rewriting is an option. In fact, most authors would say that rewriting is the essence of all good writing.

Small business misses out

Sensis, in conjunction with the Australian Interactive Media Industry Association, surveyed 803 Australian consumers and 1,944 Australian businesses to understand how they are using social media.

The Sensis® Social Media Report (May 2011) found that Facebook remains the most popular social networking site in Australia. It is used by a staggering 97 per cent of social networking users, and nearly two thirds (60 per cent) of all Australian internet users.

No real surprise there. But in stark contrast to those figures look at the figures from the report for business. Only 14 per cent of small businesses, 25 per cent of medium-sized businesses and 50 per cent of large businesses have a social media presence. Plus, in most cases, social media attracts less than five per cent of total marketing budgets.

It's obvious that Australians are 'into' the social networking phenomenon. However, business seems to be dragging the chain. Of course, most small business tends to resist change but there is no excuse for big business not embracing the opportunity.

With so many people using social media, the opportunities for brands are probably growing every day. But it is not a simple opportunity. Connecting with prospects and customers through social media needs lots of care.

 

35 sites fail

Results published recently by US research firm, Forrester, highlight the need for great care when writing for the web.

Forrester tested the 'user experience' on 35 websites of major American companies. Believe it or not, all 35 sites failed the usability test!

And look at some of the big name sites tested: Apple, Citibank, Oracle, AT&T and Kmart. I'll say it again - all 35 failed.

Each site was tested with relevant goals. Like, finding bank branches or ATMs, researching prices or product features, getting a quote or purchasing online.

Forrester assessed the sites on no less than 25 criteria that covered:

  • Value - does the landing page have content that supports the user goals?
  • Navigation - is the wording in hyperlinks clear, the content logical and search function precise?
  • Presentation - is the language easy to understand, does the text layout make scanning easy and do interactive elements behave as expected?
  • Trust - is security and privacy obvious, is feedback clear and help available?

The researchers said "the most common problems were with missing content and functionality, inefficient task flows and illegible text."

Twenty one of the sites consistently failed to provide clear language.

Certainly provides food for thought for the 21 content writers responsible! How does your company's site stack up?

Currency spin

Currency spinThe Aussie dollar is at a record high. So now is the time to travel, right?

Well, before you pack your bags for that super-cheap US holiday, you might just want to crunch the numbers. Some clever marketers have put the full spin on the exchange rate.

Okay, so airfares have come down in price. But unless you're on a US carrier, you're unlikely to experience currency gains getting out of the country.

Accommodation and spending money will be the major cost. What's your budget? Let's say you indulge yourself and spend $5000 on your Californian dream.

So, with the dollar currently buying 1.07 US dollars that's a massive $350 you'll save against the exchange figure twelve months ago. Hmm, not quite what you were expecting?

Why then, is everyone talking about massive savings from the dollar?

Good old fashioned marketing.

The American tourism authorities have been peppering our television screens with the call to travel. And a 40-strong delegation of American promoters visited Australia in March this year, urging us to flock to the US while the 'going's good'.

The ads spruik 'even Prince William and Catherine are visiting California'. And Betty White tells you to 'get out here and we'll show you how we roll'.

The value proposition has been brilliantly linked to affordability. High dollar equals cheap travel. Pitch perfect. Just don't spend your $350 all at once.

Careful what you write

My father used to tell me 'the pen is mightier than the sword.'

So I've always been careful how I wield my power.

His words are worth bearing in mind at work. With so much of our business correspondence done in writing today, we need to be mindful about what we commit to print.

Especially now in the digital age. Once written, it's out there forever.

That doesn't mean you can't state your case passionately. Just don't get personal.

Don't write something you wouldn't say in the company of your boss. AND NEVER SHOUT WHEN CONVEYING YOUR DISAGREEMENT.

The recent campaign by the two hopefuls for the Liberal Party presidency is a case in point.

The heated invective between the incumbent (Alan Stockdale) and the wannabe (Peter Reith) was played out in a series of leaked emails and newspaper opinion pieces.

The public was left in no doubt about the deep disregard the two members of the one party have for each other.

Verbal face-to-face spats are ugly enough. But when put to paper and published for wider consumption, personal opinion can be positively career-destroying.

So keep it nice when writing at work. And use 'reply all' with caution.

Writing workshop that works

BoardroomHaving a workshop that's much in demand, is very rewarding for us.

That's the case with our one-day workshop called 'Writing skills to make your team more professional'.

Believe it or not, it ALWAYS gets rave reviews. In recent months we have presented at The Age, the City of Greater Geelong, Hesta, and Yarra Valley Water (to name just a few). And it is the same everywhere. People find it practical and packed with tips and hints they can begin using the very next day.

We began the workshop back in 2006 at GE and since then it has become more and more popular. We can now say that it has proven itself. That's why if you want to book us for your organisation, we are very happy to offer a guarantee. We know it's a training day that really works.

 

Frank

Web writing that works

Web writing that works

Web

You might be considered a great business writer.

But writing for the web is a different ball game. It involves special techniques to ensure your site gets results. Here are a few of my top tips.

1. Understand your audience

What are your customers looking for and what do you want them to do?

Write directly to your visitor and guide them to your ultimate goal. That might be making a call, an online purchase or registering for a newsletter.

Keep your writing focused on the behaviour and action of your audience.

2. Write for scanners

People don't read the web like they read a brochure.

Web writing needs to accommodate scanners. Their eyes hit the top headline and then travel quickly down the page in an 'F' pattern. You can help them absorb your content by:

  • Using short sentences
  • Breaking up the paragraphs
  • Using powerful language that avoids ambiguity
  • Placing important details in headlines.

3. Keywords

Help Google find you by using relevant keywords. Finding the right keywords and integrating them intelligently is a vital skill in web writing.

 

Want to learn all the tricks of the trade? Check out the Action Words half day training program Web Writing That Works: http://www.actionwords.com.au/training/our-courses/

It’s time to cut words: like Hemingway

Ernest Hemingway

Ernest

Want to make a bigger impact with your writing? Then state your idea in fewer words rather than more.

Just as some people like the sound of their own voice, there are others who like the look of their own words. Verbose, wordy waffle will get you nowhere.

Good writing is about clarity. Be concise and you will be understood.

Here are some examples to show you what I mean.

WORDY version: In the early part of the month of February, a tropical cyclone was moving threateningly towards the coastline of far north Queensland.

CONCISE version:  On 3 February, cyclone Yasi struck the Queensland coast.

If further information is needed, just add another concise sentence:  The towns around Innisfail suffered devastating damage.

Needless repetition of words or phrases should also be avoided. They distract the reader and blur your meaning.

REPETITIOUS: This interesting instructor makes an uninteresting subject interesting.

CONCISE: This teacher makes a dull subject interesting

REPETITIOUS: Please send me an email at my work email address which is This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

CONCISE: Please contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

Take a lesson from Earnest Hemingway:

Many business people faced with the task of writing for marketing purposes are quick to say: Hey, I'm no Hemingway! But really, who better than Hemingway to emulate? Rather than embracing the flowery prose of the literati, he chose to write simply and clearly. Hemingway was famous for a terse minimalist style of writing that dispensed with flowery adjectives and got straight to the point. In short, Hemingway wrote with simple genius.

4 tips for B2B search engine marketing

Social Avenues

In B2B search marketing, you need to use all your digital levers to attract prospects, build a relationship and eventually convert your business targets.

Here are 4 tips for B2B search marketing success:

  1. Use upper-funnel keywords
    Capture your business target's attention early in their research phase. Ideally, become a thought leader. Offer a white paper. Your target doesn't quite know what they don't know during this discovery phase. So use keywords that build a strong link and awareness with how your business can help their business. In the early stage, awareness is obviously important. Salesforce.com says that internet users are 27% more likely to search for a brand or product after seeing a display ad.

  2. Participate in your target's space
    Don't try to sell at this stage. Just have a presence. Participate in forums and social media discussions, advertise within the space of informed digital opinion. Don't be pushy, just maintain subtle branding and connection with their cause.

  3. Check progress through the funnel
    Use free tools such as those offered by Google, to follow your target's path through your website. How are they progressing through the conversion funnel and where are they losing their way or hitting a road block?

  4. Focus on need
    Your business prospect is not like a retail consumer. Therefore it is important to focus on the need rather than the product features of your offering. Your keywords should reflect this need and solution bias and also match the page-related stage of the conversion funnel.

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