Friday, October 30, 2009

Kraft Celebrates Football Season with Social Media

When I wrote about the Kraft iFoodAssistant widget recently, I realized that Kraft had more going on in social media and resolved to look into it. When you look, you find all the usual blogs pointing out coupon availability, which is ongoing for most CPG brands. It certainly is a new way of distribution though; and therein lies one social media impact.

What you also quickly see is two seasonal promotions for Velveeta cheese. Tis the season for tailgating or football on TV, and snacks made with Velveeta cheese are a seasonal item. The Kitchenistas blogger promotion has been going on since September; here's the microsite. In fact, today is the last day of activity for the five compensated “Mommy bloggers” who have participated in the promotion.
How does this kind of promotion affect sales? Velveeta brand manager Sherina Smith admits they don’t really know:

“It’s hard to say,” Smith says. “What we do know is that this consumer is online looking for ideas for meals. We know she blogs a lot and looks to other bloggers for tips and ideas. The more that we can be where she’s looking for ideas, the more we can be top of mind when she’s grocery shopping.”

All this context seems to create warm fuzzies for the brand, and that may be all we can say at present. I’d love to know the ROI of a low-cost promotion like this, incorporating real people, compared with the ROI of, say a traditional television commercial. Yes, I’d like to know, but what is the dependent variable—brand awareness, favorable brand attitudes, what? We’re back to the difficulties of measuring attitudes and their impact on behavior. Marketers have operated on faith that positive brand associations do matter for a long time, and I don’t think that’s going to change any time soon.

Enter the Big 10 promotion, also for Velveeta and also tied in with football season. Here’s the Big 10 Conference home page for today. Note a banner ad at the top by Rotel with a dish of cheese dip beside it. You probably won’t be surprised when you click through and find that most of the featured recipes feature Velveeta cheese. Rotel is a ConAgra brand with a non-corporate-looking website that pushes recipes and attitude.
Note that on the Big 10 home page there’s a square box pushing a contest for bowl tickets, again featuring Rotel. At the bottom of the page there is another banner that makes the Rotel Velveeta partnership more explicit. It’s all quite integrated—and hard to miss!

Kraft’s website, the iFood Assistant, and one guesses its relationships with bloggers will go on. Promotions for various brands, many of them seasonal, can also be expected to continue. What do you suppose they have on tap for Thanksgiving and Christmas? Stay tuned!

Thursday, October 29, 2009

Inventing A Successful "New" Business Model

Do you have any idea how hard it is to keep a business going year-round in a resort area? I remember reading several years ago that the summer population of the town where I live is 20,000; it goes down to 5,000 for the winter months. If you consider that the peak season is no more than 10 weeks long, with “shoulders” on either side, you begin to understand the problem. Add to that the difficulty of finding housing for seasonal workers, and you have a prescription for small business woes.

Having emphasized with the businesses where I trade for a long time, I was intrigued with one I ran across recently. Two young women have invented a business model that allows them to solve the seasonality problem. The video is about two years old, so the statistics are out of date, but the energy and charm of these two entrepreneurs is much in evidence.



Megan Murphy and Catherine Bean have a single retail location in downtown Hyannis. That’s a high-visibility tourist destination and their store obviously does well in the spring, summer and fall months. Their website supports the retail store, but it does more. They close the shop from December to March, but they don’t cease operations; they just shift to the Internet. They stay fully occupied running online parties and fundraisers. When I
talked to Megan a few weeks ago, they were booked through Christmas. I checked the site and they are now booking for February and March 2010, so they continue to move right along.

How did they invent this business model—one which is different from the usual Bricks & Mortar? As stay at home Moms, they gave product parties in their homes, so moving parties online didn’t seem like too much of a stretch. They found a supportive marketing services supplier, and they were off. From a few email addresses collected in the store, they now have a list of over 20,000 that grows with every party.

What is the moral of this story? Give eparties? While I think virtual events have a great future, it’s more than that.

These two women used their own experience, their own background; they just moved their offline activities online. Think about your last online retail experience. Did the site “suggest” other items to you the minute you put something in your shopping cart? That’s what a good retail salesperson does, just moved online. That’s the moral—move successful offline marketing activities online.

There was a blog post last week by Mack Collier that got a lot of mileage on Twitter. I don’t disagree that we need fewer social media stars and more great social media ideas. My reaction was, “How do you know it’s really a great idea?” And then I thought about Megan and Catherine. Product parties had already worked for them in one context. They moved the same winning idea into another context, one where they could achieve even greater reach.

It’s a great example of not having to reinvent the wheel to develop a winning business model!

Wednesday, October 28, 2009

Engagement Lessons from Successful Brands

An interesting customer engagement study has been sitting on my desktop since late summer and it’s long since time to pay attention. The study, by Wetpaint and the Altimeter Group ranks the top 100 brands in terms of customer engagement. You can see the ranking and download the full report here.

Starbucks and Dell are number 1 and 2—no surprise there. They interviewed some other high-ranking sites, SAP at 9 Toyota at 21—about best practices, presumably to get a perspective from different industry sectors. Each of the highly engaging brands has several best practices to suggest and they are worth reading the full report. I picked out one from each that struck me as universally applicable:

Starbucks identifies people throughout the organization to be the liaison with the social media program—to monitor and to take action on customer issues and ideas. At the same time, they maintain tight central control over content and the engagement of individual baristas in their many outlets.

Toyota says you have to be in it for the long haul. No surprise there; social media is an investment of time and energy that will only pay off over time. That’s a disappointment to many who are looking for immediate returns.

SAP makes a practice of engaging in new channels where people already are. That makes it easier to listen and understand; they also encourage employees who are already active on newer channels like Twitter.

Dell points out that you have to be conversational from the start. Again—not a surprise, just really hard to do, especially for newbie brand practitioner.





























The Wetpaint/Altimeter group links customer engagement to financial performance and argues that it is a more powerful driver that traditional measures of customer satisfaction. Gallup consulting agrees, and has their own measures of engagement that allow them to group firms by level of engagement. You can read their full report here.

While researching this post, I also ran across a recent article in Forbes that argues for the importance of engaging customers while admitting that engagement is hard to measure. None of this content could be judged as totally unbiased because all the marketing services/consulting firms represented have a stake in creating or measuring engagement.

For me, it’s hard to refute the arguments. You should make your own judgment!

Monday, October 26, 2009

The New CNN - Marriage of Site and Social?

Very early this morning I heard John Roberts and Kiran Chetry introducing the new CNN website on American Morning. Even at the early hour it sounded interesting, so I checked it out.

CNN's web designers seem to have brought as many different types of content to the home page as possible. It has latest news and features -- both headlines and videos, most popular (newspulse), a whole banner of editor’s picks videos in a banner across the middle of the page and topic boxes with links to stories. I think that sounds confusing, but it’s well organized and easy to follow. Take a look for yourself.


It was the personalization and social features that I was most interested in, though. There are more, but here are two that I investigated. I set up a profile, personalized my weather for Boston (easy), tried to upload a picture (didn’t work), and followed some topics, which John and Kiran said was easy. I didn’t find it so, at least initially, but as you can see, I did make it work. I wanted to follow Tech and thought I’d get latest headlines. All the RSS feeds to that macro level of topics are still there, but that wasn’t what I was looking for. What I found was that I had to read an article; at the end there was a Follow This Topic button. Hitting that button usually gave me several keyword-type choices which then showed up on my profile page. The topics are rather micro for my taste, but it will be interesting to follow them for awhile and see what shows up. You can follow up to 12 topics, which on the one hand is enough to keep up with, but on the other hand may not give the reader much of a perspective, given the small scope of most of the topics.

I’m not an iReporter, but I was interested in what’s happening on the citizen journalism front. What was new to me was the concept of “vetted” iReports. These reports have been checked (for correctness, acceptability, they don’t say exactly what) by CNN editors. One assumes that’s an attempt to give credibility to citizen journalism. On the iReport main page they have an Assignment Desk where readers can get story ideas while in search of their 15 minutes of fame. That’s interesting, but I don’t think it’s the real purpose, for CNN or for local news sites. News happens and often reporters aren’t on the scene, but people with their phone cameras are. With that in mind, CNN just launched an iPhone app so people can upload iReports directly from 3GS iPhones. Events and breaking news seem to be the whole point!

As I looked as this I was reminded of a section of last year’s Razorfish FEED report (now hard to find but is on SlideShare). The chapter on usability/Dr. Nielsen is what I was recalling and here is the provocative quote:

The New Building Blocks

Jakob says:
People don’t read your websites; use a different editorial style and make your pages “scannable.”

We say:
Throw away your concept of primarily designing “pages” as building blocks and start designing experiences. (slide 20)

I think that’s what CNN is trying to do. Call it engagement, call it offering experiences, it may be a guidepost on the road to the future of the web. It’s an experiment worth following.

Friday, October 9, 2009

Carefully-Monitored Community for Students and Their Parents

I’ve spent most of my adult life on college campuses and an innovative approach to communicating with a college community always interests me. So I was interested in the Auburn Family site when a colleague sent me the link—thanks, Nancy!

First, let’s be clear about what the problem is. Colleges and universities don’t want parents and alumni to hear or see the raw, unfiltered accounts of what their students are doing; you know, the kinds of things that all-too-frequently show up on MySpace and Facebook. Students have the same problem; they don’t want their parents to know all of what they are doing at school. This problem led to the unceremonious closing of some of the early social networks that schools set up. This is well known in the higher education community, and schools have struggling with a way to give voice to their students—in a way that will not alienate their parents and the alumni of the school, the latter being donors, of course.

Auburn University has come up with a model that has promise. The concept comes from public relations professor Robert French and 30 of his design and management students designed and built it and currently do most of the posting. The site was launched on or about September 20 and at this moment it has 1,386 members. Take a look at the pictures; it appears to be a nice mix of students and parents. While you’re on the site you can hear the Auburn War Eagle fight song and, oh yes, there’s a link to the admissions office.


No secret is made of the fact that the site is under the total control of the students, their professor, and the University. Here is a quote from their site guidelines:

Because Auburn prides itself on its friendliness and thinks of itself as a family, and because this site will attract prospective students and visitors who want to know more about Auburn, photos, comments, and other postings must not be offensive or suggestive in any way. Since the space being utilized is part of the Auburn.edu domain, the university reserves the right to remove any postings and content at any time. (this phrase is underlined in the original)
All posts and comments are moderated
on stories and videos posted here. Your posts will be moderated as soon as possible. The site is monitored throughout the day. (underline and bold theirs, not mine!)

They’ve got clear guidelines and people to do the community monitoring. According to the local newspaper, Prof. French:

wants to make sure the site is safe and clean for anyone to join, meaning anytime someone requests approval, there's a vetting process.

As you can see from the site guidelines, that applies to all content, not just to people who wish to sign up for the site. The goal is clearly to keep this a nice, clean site that no alumni donor can reasonably object to! Same goes for parents, especially parents of prospective students!!

Will this site be too controlled, too sanitized, for some Auburn students? Absolutely, it will. They have other places to post their commentary, pictures and videos. They may just be hoping that their parents don’t see those!

This is perhaps an extreme example of community monitoring and control, but I submit that it’s necessary for what Auburn wants to accomplish. What do you think?