Opting Out: American Greetings

"... but what if people don't want to opt in your content? Wouldn't it be so much better to ask them to opt out? What do you think?" — Valeria Maltoni

Maltoni already knows the answer to the question she posed on her much more substantive post "Lists, Permission, and Content Marketing." American Greetings Corporation does not.

In 1996, at about the same time American Greetings launched its first site, AmericanGreetings.com, it also launched Egreetings.com, and Bluemountain.com, concepts that were designed to capture consumers from different demographics. The classic marketing strategy seemed to be working. Between the three sites, the company boasts two million paying subscribers.

To help put that in perspective, the subscription rate for Bluemountain.com is $15.99 per year. However, to really understand the presumed success of the mom and pop vignette e-card shop identity propped up with American Greetings cash, you have to look below the surface and under a few rocks. It does not rely on quality content as much as sleight-of-hand marketing.

The enrollment process requires customers to provide all payment information prior to receiving a "free" 30-day trial. If you have any concerns, BlueMountain.com borrows the VeriSign Secured brand and Better Business Bureau (BBB) brand, pointing consumers to this BBB page.

However, if customers search the BBB on their own, BlueMountain.com leaves a different impression. The BBB processed a total of 301 complaints in the last 36 months (from people willing to take the time over $15.99). And of those complaints, only 198 were closed in the last 12 months. In fact, the subscription trap scheme was so disingenuous, the BBB contacted the company in April and sought cooperation in addressing the underlying cause.

The company responded in May, promising changes to be implemented by June. The BBB took the company's response in good faith, never realizing that American Greetings didn't fix the problem but rather elongated the process. No follow up by the BBB has occurred. So we followed up.

The American Greetings Subscription Trap Scheme

This morning, I received notification that BlueMountain.com would extend my membership for another year, at the new rate of $15.99. I originally subscribed to BlueMountain.com on a trial basis to evaluate its system and, like many consumers, failed to opt out in time because there was no prompt that the trial membership was expiring. No worries. I decided to stay with the system a year, promptly forgetting about it until receiving notification this morning.

To ensure that you enjoy uninterrupted access to the heartfelt cards your friends and family have come to expect from you, we'll continue your eCards Membership for the next year at $15.99 as your current eCards Membership was scheduled to end on 12/15/2009 00:00. It's automatic -- we'll simply use the payment method we have on file, unless we hear from you. The charge will occur on the date of your expiration noted above.

It went on to say that if I wanted to cancel my membership, I could find the instructions in their Help section or simply click on the link. It seemed easy enough, even if I had to retrieve a long-forgotten password. Here is what the Help section said:

To request a cancellation of a subscription, please contact our membership support center by calling 1-888-254-1450, Monday through Friday from 8:00 a.m. until 8 p.m. EST

Since customers outside of the U.S. and Canada are allowed to cancel online, I decided to submit an online complaint and cancellation request anyway. Within minutes, BlueMountain customer support sent me notification that said "For security reasons, we are unable to process cancellation requests via email," which was followed by Terms of Service outlining customer obligations.

The explanation defies logic.

American Greetings wants consumers to believe that an online service enrolling members online and accepting payments online cannot accept membership cancellations online for security reasons. But more than likely, American Greetings wants to prevent cancellations. And if there is any doubt, the call confirmed it.

Customers hoping to cancel their memberships are greeted by an automated recorded call service with voice recognition technology. My first thought was that the technology belongs to a union, given the set hours of operation.

My second thought was that it is disingenuous that the recording requires a membership number, last name, and the original phone number to verify the identity of the caller. (BlueMountain.com doesn't tell customers to have any of this information prior to calling.)

If you miss any of the questions or if you do not speak slowly enough for the machine, you cannot proceed or cancel your membership. If you do answer all of the questions, your name is likely added to a marketing list that will be sold at some later date. We suspect that to be the case because once you answer these questions, you are transferred to a live scripted customer service representative who has to verify the identity of the caller.

The scripted customer service representative then asks for your membership number, last name (to which she verifies the first name), and a mailing address before asking why you are calling. Except, the customer service representative is not interested in helping you. She has a script to read.

The script is designed to prevent your cancellation, offering a reduced subscription rate or reward. And, even after the cancellation is confirmed, the representative asks you to hold for a bonus offer. A bonus offer for canceling? As tempted as I was to play along for this post, even I couldn't justify wasting another five minutes for what seemed like a 20-minute process.

Twenty minutes is longer than most customers will sacrifice for $15.99. American Greetings knows it.

Does The American Greetings Scheme Pay Off?

It's a valid question given the brand value. How can American Greetings, even if it is hiding behind the BlueMountain.com brand, justify the considerable risk associated with a subscription trap scheme for $15.99 per year? Or, perhaps more appropriately, was this the model Jacob Sapirstein, a young Polish immigrant, envisioned when he set out to achieve the American dream with ambition, ethics and hard work?

That seems doubtful. It doesn't even seem to be what shareholders expect since the company's first public offering in 1952, but it does seem to fit the pattern of progress since Zev and Jeffrey Weiss were entrusted to oversee the varied brands in 2003.

Since 2004, American Greetings seems to have headed in the wrong direction, delivering an increasingly diminished return when compared to the S&P 400 and its own self-defined peer group. Last year, in fact, the company experienced a net loss of $227.8 million. It was the worst performance in the last five years of diminishing performance.

If there is an e-card for karma, someone might consider sending them one with a bit of marketing advice. Q: Wouldn't it be so much better to ask them to opt out? A: Only if you want to follow in the footsteps of what used to be one of America's best-loved and most trusted greeting card brands.

Engaging Consumers: Retailers Use Social Media

Deloitte’s annual holiday survey results provided the first glimpse of what some retailers already knew. Social media works.

With more than half of all consumers using the Internet to search for discounts, research gifts, and ask friends and family what they might like, retailers that engaged consumers via blogs and social networks are realizing a return on investment despite tighter budgets.

Some, like Toys "R" Us, launched their own apps to offer a sneak peek of the chain’s in-store Black Friday specials. Other retailers, like Staples, used social media to advertise price cuts of nearly 50 percent for Nov. 27 on certain laptops, GPS devices and computer monitors. A few retailers employed best practices to help consumers do everything from debug a new purchase to finding parking spots while independent sites offered shopping round ups, online and off.

The Three Phases Of Retail Engagement

For companies still hesitant to embrace social media on some level, there is a lesson to be learned. The flexibility of communication intent works on multiple levels — before, during, and after a purchase. The online environment intersects and overlaps the offline environment.

• Before The Purchase. Consumers tend to research products and services online, forming a composite from multiple opinions: manufacturers, retailers, reviewers, friends and consumers. Depending the approach, social media provides an opportunity for discovery, education, and comparisons.

• During The Purchase. Consumers, especially those with smart phones, are increasingly likely to use social media tools and technologies to locate where a product or service is based on proximity, price, or even to find specific information. While some companies still make the mistake of thinking consumers relate online sales to online stores, an increasing amount of customers use social media to decide which offline stores they might visit.

• After The Purchase. Consumers not only provide feedback and reviews, but also have an opportunity to engage retailers with questions and direct feedback. Retailers with an online presence can engage a percentage of consumers who are interested in receiving future announcements, special appearances, incentives, and/or discounts.

While retailers are still rightly concerned about consumer confidence, social media is providing an essential economic connection. Sometimes it is less important to convince more people to buy than it is to find those people who are already buying.

Going Savage: Thanksgiving

"I do not feel able to encourage your art. It revolts me and I do not understand it." — Roujon, director of Beaux-Art, to Paul Gaunguin

In 1883, Paul Gauguin gave up his job as a successful stockbroker to free himself from the trappings of French civilization and sacrifice everything for his artistic vocation. Although most people might not known Gauguin as well as his friend Vincent van Gogh, his witty, wide-ranging and aphoristic thinking made a lasting impact on Impressionism.

Side by side with art, he wrote,
And his critics could not prevent it.
He penned his words much like his art,
Daring amateurs to try, and not lament it.

Primitive art on burlap sacks,
Naked flames and blackened sands.
His quest for talent over genius fed
By trading etiquette for native lands.

It was under Temetiu
His friends and family far behind;
A painter’s heart breaks, so far away
From the café, on the Boulevard, No. 9.

— Richard Becker, from his Figment collection

At first blush, this might not seem very fitting for a Thanksgiving post. But I've always been fascinated by the undercurrents of culture and unseen influence at the hands of people so easily diminished by others with measures of popularity and a prejudice for rules. Paul Gauguin was one of those people.

So in searching for things to be thankful for this year, I decided to settle on the people who read, comment, contribute to not only this blog but also the various social networks, message services, and public gatherings I subscribe to and participate in.

You make a difference.

So thank you, as I'm grateful for all those seemingly insignificant moments that have made up an immeasurable amount of unseen influences that, in some cases, have and will span my entire lifetime. Happy Thanksgiving. All my best.

Understanding Economics: Recessions Are Optional

On the day before Thanksgiving, the National Association for Business Economists predicted real growth in gross domestic product for 2010 would be 2.9 percent, up from its October forecast. The forecast is cautiously optimistic, even if the association anticipates the jobless rate might hold at around 10 percent through the second quarter of 2010.

While the estimates seem promising, and mirror other economic data, public sentiment remains stalled. Even among the readers of SmartBrief for CFOs, 42 percent of those surveyed predict the U.S. economy will not begin adding jobs until 2011 or later and almost seven percent wouldn't even hazard a guess.

So who is right? Economists? Employers? The general public?

While it might matter, its significance is about as important as knowing that the sun requires 226 million years to complete one galactic orbit or that our galaxy also moves up and down on a 62-million-year cycle, with biodiversity increasing and decreasing in relation to where we might be. Abundant biodiversity as well as planetary temperatures have historic relevance to our planet and how entire civilizations rise and decline. The people who measure this stuff are astronomers.

How outlook and communication play a critical role in experience.

My grandfather once told me a fable about a gas station attendant and two road-weary travelers looking for a new town to open a new business. While they arrived at different times, both asked the same question. Do you think this town would be a great place to start a business and settle down?

"I dunno," said the gas station attendant. "What was the last town you lived in like?"

The first man frowned: "It wasn't very good for business. The people were lazy, and genuinely unfriendly. Unemployment was high, people wanted to be paid too much, and the housing market had bottomed out. I can't say anything good about it."

"Oh," said the gas station attendant before leaning over to whisper. "You wouldn't like it here then. This town, it's exactly like that. You'd be much better off continuing on and finding a better place than this miserable place."

"Wow," said the man, smiling. "You sure saved me a big waste of time. Thank you."

When asked the same question, the second man smiled: "The people were optimistic, and genuinely friendly. Even in a tight economy, people were willing to work hard, appreciated our efforts in the community, and were generally optimistic about the future. If it wasn't for our expansion, we would have stayed there for years to come."

"Oh," said the gas station attendant. "You'll love it here. This town, it's exactly like that. You can continue on and look if you like, but mister, I think you just found yourself a new home."

"Wow," said the man, smiling. "You sure saved me a big waste of time. Thank you."

When people ask me about what I think about the economy and our outlook, I have two different answers because they are two different questions.

The big picture is pretty obvious, I tell them. As long as employers are waiting for consumers to spend more, and consumers are waiting for better employment, the best anyone can hope for is slow growth through the first two quarters for 2010. And for the most part, that is in line with most economic forecasts.

Our outlook, of course, is different. Since the recessionary pressures took hold, I have always said participation is optional. It is optional because we can either fret along with those best described as the 42 percent who now predict the U.S. economy will not begin adding jobs until 2011. Or, we could invest in finding the 17 percent who predict the U.S. economy will begin adding jobs in the first half of 2010. I'm interviewing my first hire for 2010 next week.

The same can be said for individuals. As much as I think Pat Olsen's post on How to Survive in an Unhappy Workplace might help some people, his third point is the most important of all. With the exception of abusive leadership, workplaces and cities and economies and galactic positions don't make you unhappy. Only you can do that.

It might be the day before Thanksgiving, but it's never too early to be grateful. Until tomorrow then.

Blacklisting Best Buy: When Ads Go Bad

Best Buy seems to have found more than it bargained for after it ran a national Black Friday advertisement inviting the world to celebrate Thanksgiving and Eid al-Adha. Eid al-Adha?

In case you do not know, Eid al-Adha is a Muslim holiday, "Festival of Sacrifice" or "Greater Eid," celebrated to commemorate the willingness of Ibrahim to sacrifice his son Ismael as an act of obedience to God. The date it is celebrated is variable; this year it falls on Nov. 27. Regular charitable practices of the Muslim community are demonstrated during Eid al-Adha by the concerted effort to see that no impoverished person is left without sacrificial food during these days.

And from now on, Best Buy discounts too. The national retailer is standing by its decision.

Three reasons Best Buy is setting the foundation for its own crisis.

1. Thanksgiving. Thanksgiving is identified with as a secular holiday in the United States. It began as an annual tradition in 1863 and a federal holiday in 1941. While it is sometimes tied to a religious observation in that some people give thanks to God, the primary celebration consists of bringing two cultures together for a harvest feast.

2. Christians. Christians are increasingly frustrated because tolerance does not seem to be a two-way street. In recent decades, it has been noticed that public, corporate, and government mention of the term "Christmas," for example, has been replaced with a generic term while other non-Christian holidays seem to have no cautionary constraints. Best Buy, specifically, does not allow Merry Christmas in its advertisements. It hasn't since 2006. (A Best Buy spokesperson has said it may be reversing that decision this year).

3. Muslims. While a spokesman for the Council on American-Isamic Relations said it makes perfect sense for a retailer to acknowledge and celebrate the holiday, one wonders if Muslims will feel the same way in considering the long-term commercialization of Eid Al-Adha. For example, national retailers do not generally recognize exclusively Christian holidays like Ash Wednesday. It is probably best if they do not.

The motivation, more than the message, is why Best Buy perplexes.

Best Buy's response — which draws attention to the fact that its customers and employees "around the world represent a variety of faiths and denominations. We respect that diversity and choose to greet our customers and employees in ways that reflect their traditions" — does not accurately reflect its past decisions to diminish other holiday greetings.

That seems to underpin the complaint and call to boycott Best Buy by some Christians, and not the lack of tolerance as suggested by anti-boycott proponents who have taken to defending the Muslim faith while making fun of those offended. The company, apparently attempting to capitalize on the confused state of the nation in regard to specific groups receiving a temporary "politically correct" pass, deserves some public backlash for its lack of public relations savvy.

From a public relations perspective, Best Buy is better served by a policy that embraces all faiths and denominations specifically or generally and not selectively or by PC popularity if it hopes to simultaneously include all those faiths and denominations. This might be especially true for a holiday like Thanksgiving, which is largely meant to be a non-religious, multi-cultural and national celebration regardless of how specific faiths and denominations choose to celebrate it.

From a more personal perspective, I neither support or oppose the ad nor do I support or oppose the boycott. I do, however, think that the pairing of Eid al-Adha and Thanksgiving demonstrates significant ignorance over the meaning of both holidays.

Stepping Backwards: Wellness & The Economy Study

According to a 2009 survey by Saatchi & Saatchi Wellness (SSW) on Wellness & The Economy, the current economic climate is having an adverse affect on wellness. Only 10 percent of the population feel wellness is related to being healthy, down from 47 percent before the recession.

Today, people tend to define wellness as changing behaviors, plans, and aspirations. And, the net result seems to be making the population collectively unwell. Their definition of wellness has been redefined as something as simple as paying the rent.

"While consumers haven't completely given up on the goal of health and balance, the definition of health has changed," said Johanna Skilling, director of strategic planning at SSW. "This means that as marketers, we have an important role to play in helping our constituents adapt to new realities in the marketplace."

As a whole, consumers are eating more carbs and sugars, exercising less, and investing less in their appearance. Equally striking was the assessment that most survey participants could be classified as affluent. Less affluent households are suffering even more.

Dropping another notch on the Maslow hierarchy of needs.

Maslow's hierarchy of needs, which is a model proposed by Abraham Maslow in his 1943 paper, outlines a prioritization of human needs. It suggests people tend to pursue physiological needs first, security second, belonging third, self-esteem fourth, and self-actualization last.

Last year, it seemed apparent that the population was mostly focused on security — employment, resources, morality, and health. So if there is any validity in the SSW study, this might be another another step down. Today, people are satisfied with the status quo, provided it can meet their most basic needs.

Even among business leaders, meeting the most basic benchmarks seems to be enough. Marred by a global decline in perceived opportunities, increasingly competitive venture funding, and an over-pronounced fear of failure, 58 percent of companies are employing tactical, short-term initiatives that stress cost cutting and deferred investments (Ronin study) while, in the United States, there has been a 9 percent decrease in entrepreneurs under the age of 45 (Global Entrepreneurship Monitor study).

In other words, it seems older companies are being weighed down by institutional barriers that encourage protectionism (fight) and younger companies or would-be entrepreneurs are leaping toward the next opportunity before their existing projects are nurtured (flee). Ironically, both reactions come from the same emotion. Fear continues to be the primary economic driver, with relatively few exceptions.

What does that mean? The first companies that can remove fear from their planning will be the market leaders in the next decade. And the people who aspire to move their thinking beyond scarcity will likely be the more secure.