Missing Customers: Verizon Tries Distress

While most cellular phone customers are savvy to text messaging, some are becoming all too familiar with distress messaging. Specifically, anyone who makes up the 27 percent of the smart phone market captured by the Apple iPhone, especially if they were a Verizon customer.

These folks, like me, are probably receiving distress message mailers. The latest from Verizon, sent about two weeks after I become an AT&T iPhone windfall customer and about a week after Verizon’s letter that claimed “I made a mistake,” tells the real story:

We miss you already.

• Free BlackBerry Pearl with GPS Navigation
• $100 off any phone of your choice
• Free activation

Call today!

While I’m not privy to the response rate, my best guess is that it’s flat. It might also be causing some brand damage to what once was the network of choice among 1 million subscribers, at least those who recently made a switch.

Messages such as take $100 off, come back and save, and come back to the network you trust are emblazoned on almost every panel of an 8-panel direct mail piece. Most of them, if not all of them, are misdirected, clearly reinforcing that Verizon has no idea why it has to send a “miss me” mailer anyway.

It’s not the network, it’s the phone. But now, looking back, maybe there is something questionable about the service strategy at Verizon anyway. As a former customer, why did I have to quit in order to get offered the best package perks ever?

For all these efforts, they were four months too late. That was the beginning of the end. Four months ago, my second-to-last Verizon phone was damaged during my ”never fly US Airways unless I absolutely have to again” flight.

Naturally, once I returned home, the first order of business was replacing my broken phone. The choices were slim without a contract. So, my company made a Band-Aid LG phone buy. It was the worst phone I’ve ever owned.

Contrary to the mailer’s claim “Your phone is only as good as the network it’s on,” $5 more per month for an iPhone opened my eyes up to what I was missing, starting with unlimited data, something Verizon never wanted to talk about until now, assuming you’re a lapsed customer (ie. unlimited data is now available on select phones, for new and returning customers, with one- and two-year contracts, for about $5 more than AT&T offers with the iPhone). They don’t get it.

“The best time to start missing a customer is before they stop being your customer.”

Sure, no one can say that Verizon is dead, but it’s very telling when a once perceived market leader does more following than leading. While they did pretty well launching the LG Voyager concept copy, a phone that Today’s Paul Hochman called the only viable competitor for the iPhone (I’m less convinced). However, the plan still lacks where AT&T came through. Customers don’t want 2-year contracts because technology is changing too fast to commit.

More to the point, Verizon would be better served by revisiting its marketing strategy from the ground up. They need to invest more on existing customers, recognizing that the recapture rate seems thin if you wait until after a lost customer already signs another contract or are unlikely to use their iPhone as a paperweight. Besides, it costs more to recapture a lost customer than attract new customers. Why? Lost customers already made up their mind once.

Here are a few quick tips for the Verizon marketing department:

• Improve your marketing to existing customers before their contract ends
• Re-engage customers who fulfill their contract with new customer perks
• Keep existing customers engaged, offering opt-ins on new customer perks
• Stop playing games with location rates; a national price plan is long overdue
• Verizon is a prime new media candidate; a presence last year would have went a long way, especially if you could have hinted at Voyage 9 before people bought iPhones

But above all, fix your messages. Touch gets more stylish? Come on. Honestly, the best thing Verizon has going is the geeky phone guy. He’s become a great icon on television but everything with text falls flat. It doesn’t connect to the smart phone market, which by all accounts, is the new market. Even Citigroup knows that. And they’re not even in the phone business.

Defusing Perception: Naked Communication

It might seem odd to some people to draw a comparison between Lifetime’s new makeover show, “How To Look Good Naked” with Carson Kressley, and business communication. But the analogy might be compelling for some.

Most business owners and/or executives have a perception about their companies that will never match marketplace realities. Many market themselves based upon what works for competitors, resulting in some disastrous advertising and marketing campaigns, because one size does not fit all.

“We want to do this,” they say. “Because it works for our competitors.”

On the premiere episode of “How To Look Good Naked,” available as a free download at iTunes, Kressley asks his guest, Layla, to identify where she “thinks” she fits in a lineup of women with hip sizes ranging from 40 to 50 inches. She places herself between 47 and 48 inches. In reality, her hips measure 43 inches — the complete opposite end the lineup.

Imagine how this impacted her life. For 20 years, she had been making fashion decisions based on her perception that her hips were 6 inches larger than they were. The result: she looked heavier in clothes she chose than she ever looked naked.

Companies often do the same thing. They apply erroneous perceptions to their communication strategy. Early last year, we were contracted by a water purification company to script three :30 radio station-produced spots because the owner wanted to mimic the market leader’s buy. He had already ordered a 32-spot buy based on the urging of the station’s account representative.

Never mind that the market leader was already running 240 :60 second spots a week on the same station, compete with exclusive endorsements from the most listened to talk show hosts on the station. We did everything we could to convince the company to rethink its decision. But sometimes, people have already made up their minds when they call us.

“You’ll never look good in a size 6 when you’re a size 12 company.”

It’s something you learn working with the best of the best, let alone covering the fashion beat in Las Vegas for several years. Yep, even I know that size 6 women don’t always look good in size 6 outfits. So much depends on the designer, cut, and pattern. (Not to mention how important underwear can be.)

Sure, we did everything we could to convince the company to rethink the decision. But in this case, their minds were made up. Despite being station-produced, one of the spots even won an award. But in terms of results, all they really did was reinforce the need for water purification, prompting listeners to call the competitor whose brand dominated the station.

Sometimes perception is like that. You think your company looks one way, even reinforced by misapplying SWOT. But in reality, it really looks like something else in the marketplace.

Much like Layla, they attempt to mimic the identity of their perceived competition by wearing several sizes too small (because they refuse to wear a size bigger) or settling for cheaper, baggier clothing to hide perception rather than embracing their best qualities in reality.

In terms of Kressley’s show, no doubt some people will have mixed feelings about convincing women to parade around naked for a photography shoot. But if you can get past that little bit of Lifetime novelty, I suspect it stands a good chance of delivering on the promise of a perception revolution for women looking for a self-esteem boost. You can look successful and beautiful at any size.

Of course, the same thing can be said for companies, which brings me to the takeaway. Communication plans don’t work unless you know what you look like naked. And most companies have no idea what they look like because they rely too heavily on looking in the mirror. Don’t they know? Mirrors only show you want you want to see, and almost never what is reality.

Partnering With Consumers: Brand Evangelists

According to PQ Media's word-of-mouth marketing forecast and reported by Adweek, consumer marketing is expected to top $1 billion in 2007, up from $980 million in 2006. It is expected to expand by $4 billion by 2011.

“Technology has leveled the marketing playing field for brands. In the new world of marketing, customer evangelists are the key influence on what consumers buy." — Ben McConnell and Jackie Huba, Creating Customer Evangelists (cited by Adweek).

Izea in one of several companies that seems to be moving right in step with the trend. Their newest social media marketing program, Social Spark, hopes to bridge the gap between blogger networks and brand advocates. You can catch a platform preview video here. The presentation is interesting enough that we've added Social Spark to our watch list.

Combined, all of this is adding up to an increased emphasis on integrated marketing and public relations. Companies are looking to support traditional advertising with aggressive website strategies and early ad pre-releases on the Internet in order to boost conversations and buzz about their message and brand.

For example, Nielsen BuzzMetrics applied a Brand Association Map (BAM), which plots how consumers naturally think and talk about brands across billions of unaided conversations online, last October. They found that over 33 million messages were posted to 457 automotive CGM sites from January 1 through September 10, 2007. These conversations revealed:

• Shoppers actively discuss current automotive dealer and manufacturer incentive programs available.
• Full-size trucks were referenced most often in relation to incentives during this period, fueled by the introduction of the Toyota Tundra.
• Consumers frequently reference Edmunds.com when seeking vehicle pricing and incentives, reflecting shared dealer experiences among peers.

A few days ago, I mentioned that companies are engaged in social media whether they realize it our not. In the Vehicle Transaction Price study release, Bill Stephenson, VP and Practice Lead, Automotive, for Nielsen BuzzMetrics, a service of the Nielsen Company, punctuated this point:

“Shoppers are going online to learn what other buyers have paid for the car they are interested in. This trend is driving transparency among automakers and dealers because now, all of a sudden, shoppers are privy to the best deals that others received.”

This isn’t exclusive to the automotive industry. Consumers are seeking online information to influence their decisions on just about everything, including the President of the United States.

Remember last year when I mentioned the number of voters who consider the Internet their number one source for election coverage would double? It did. And then some.

Taking Action: Bloggers Unite

If you ever wondered whether there is any truth to the idiom “actions speak louder than words,” you might find some proof perusing more than a thousand stories shared by bloggers on Dec. 17.

These bloggers, hundreds of them, performed various acts of kindness — small and large, simple and complex, personal and public — and then posted about it.

They didn’t do it to be pretentious as the “LoneRanger” from Voice of America suggested on a Digg comment, but rather to support each other in reponse to Tony Berkman and the BlogCatalog team.

The challenge? Perform an act of kindness and share it in a post, photo, or video on the same day. Many went above and beyond, sharing stories that will touch your heart, ranging from a daughter’s love for her mother and a group of fans saving a family pet to cleaning up a neighborhood (donating the proceeds to a non-profit organization) and thanking a reggae street performer in Rome.

Together, the results demonstrate how one blogger, joined by many bloggers, can make a tangible difference, online and off.

Three Highlighted Acts Of Kindness

First Place — Bojak, Listening..Learning..Living

Second Place — Iriegal, Mental Stimulation

Third Place — Blair Corbett, Keep It Simple Solutions

In addition to the prizes and recognition listed on the BlogCatalog mini-site, I’m honored to be profiling these three bloggers in the weeks ahead, along with three others from the Top 20 posts selected by six judges who took the time to read every post submitted (and then some).

Seventeen More Stories Of Compassion

Guiding Vision, JerichoMonster, Jessica In Rome, Katalusis, LifePrints, Live From Waterloo, Local Biz Bits, My Den, Original Me, Ruthie’s Reason, Sharani – Girl On A Road,
Sinigang for the Soul., Sushi for Lunch!, and Wahm Café.

Thank you all for taking the time to do something kind. And thank you all for sharing your stories. While some might say that good deeds are best kept secret, I personally think such acts of kindness need to be shared more often. You see, pebbles cast on still waters tends to make ripples.

Thank you all for inspiring others and the inspiration. All my best.

Pocketing Portfolios: iPhone Possibilities

Last year, our portfolio measured 24 x 18 inches.

It is encased in aluminum, packed with a cross section of print and collateral. It grossly undersold our work in electronic media, but was effective in demonstrating our depth and diversity of experience nonetheless.

It was too bulky to take everywhere, except planned introductions and presentations. It was challenging to update, and eventually, even the best protected pieces became worn from handling (passing boards around the classroom didn’t help).

This year, our portfolio measures 4.5 x 2.4 inches.

It is encased in an iPhone, with a cross section of print, radio, and television. The latter is easily transported as a podcast from Revver into iTunes.

It works fine on an iPod too. And we’re slowly adding the links to various digital media platforms and social networks, allowing our prospective clients, colleagues, and associates to easily engage us any time.

I quickly put up two samples as a photo set on Flickr to provide the basic idea. New media is quietly changing communication in ways people never thought possible.

Naturally, the Flickr set will eventually mirror what is already on my iPhone. Even better, for companies bigger than ours, the possibilities are endless: imagine one quick podcast update or file download and every account executive in the company is suddenly on the same page. Clients too, for that matter.

Although many social media experts, and even colleagues of mine, are quick to tell companies that they must conform to the “rules” of social media, not all conversations have to take place in public or on a blog. New media is completely customizable and easily integrated with traditional media.

It’s one of the reasons that in addition to the iPhone presentations, we’ll be adding hardbound leave-behind pieces too. Printed on demand. Hmmm. Interesting things. These possibilities.

Beginning 2008: The Year Of New Media

Happy New Year!

Last year, we rang in the New Year with a living communication crisis case study occurring at a Seattle company. While unfortunate, I am sure there will be many more crisis communication case studies this year.

Most of them will not be all that different — communication that spirals out of control and erodes consumer and employee confidence until someone is ousted, reprimanded, or worse.

I’ll likely be critical as they occur, offering solutions as they are often apparent, but not because I enjoy being a critic. On the contrary, I’d rather communication professionals learn the easy way through wisdom than the school of hard knocks. This blog is meant to be as educational as it is sometimes (I hope) entertaining.

In fact, many of the subjects I cover here are inspired by several classes I am teach at the University of Nevada, Las Vegas. Right. Although some people miss the occasional mention, I also teach at UNLV.

This year, I’ll be infusing more emphasis on new media. I will be, not only because I believe it’s a viable communication tool that we’re deploying for several clients at Copywrite, Ink., because the changing communication landscape demands it.

Whether companies realize it or not, they are already engaged in social media, or new media, as some prefer to call it. There is not a single company on the planet that can truthfully claim none of its employees blog, micro-blog, participate in a social network, or are completely uninfluenced by some aspect of new media.

Even someone who never connected to the Internet is being touched by new media on daily basis. It’s on the news. It’s in the paper. It’s talked about by friends and colleagues. And almost always, there is at least one co-worker who has been influenced.

The way I see it, if there is one question to be asked in 2008, it isn’t when your company will enter social media, but when will your company recognize that it already is in social media. And, knowing this, when will it consider managing the new media message that already exists. Here are three ways to find the answer.

UNLV Class Schedule — Richard Becker

Writing For Public Relations — 7 p.m. to 9 p.m., Jan. 17 – March 13

Writing For Public Relations is a skills development class that focuses on the application of strategic communication into public relations with an emphasis on practical writing skills. Students learn a variety of writing styles and how to best apply them to: news releases, fact sheets, biographical sketches, feature stories, media kits and social media/new media. (CEUs: 2.00)

Editing and Proofreading Your Work — 9 a.m. to noon, March 1

Editing And Proofreading Your Work is half-day day session that focuses on improving clarity, consistency, and correct usage in personal and business correspondence. It includes essentials such as language, mechanics of style, spelling, and punctuation.

Social Media For Communication Strategy — 9 a.m. to noon, May 2

Social Media for Communication Strategy focuses on increasing the use of online technologies to share content, opinion, insight, and experience. Collectively, these technologies shape more opinion than all other media combined and have changed the communication landscape. (CEUs: .3)

Of course, you can always read this blog from time to time. I cover slivers of class topics right here. My company also provides a custom new media analysis in our proposals upon request. And, we are well seasoned in providing words, concepts, and strategies in every industry.