Saying Sorry: Netflix Actions Still Speak Louder

When the Netflix fiasco started in July, we pointed out that Netflix doesn't want to be in the DVD shopping and shipping business anymore. Back then, the price increases alone were enough to convince anyone. But we pointed out CEO Reed Hastings had said as much, several times over.

We also mentioned that Netflix wasn't done surprising customers. The company's long-term goals include moving streaming subscribers from household accounts to individual accounts, thereby doubling or tripling or quadrupling their rates when it "feels more natural."

But CEO Reed Hastings doesn't want to talk about that. He wants to talk about Qwikster. 

Qwikster is the new business that Netflix is spinning off to handle the DVD shopping and shipping business. The companies will not be integrated. Qwikster will have a new website. Qwikster will have new reviews. Qwikster will be billed separately on your charge card.

The real oddity, however, is how the entire announcement is framed up. Hastings nearly apologizes for not communicating one change, and then goes on to share all the changes they haven't communicated, again. Even the ending he wrote was off the reservation: "Actions speak louder than words. But words help people understand actions."

Sometimes that is true. But there is another line of logic left out of the equation. You can understand the actions, but it doesn't make the actions right. Most people learn that in kindergarten, such as the first time they play a prank on a classmate. Understand or not, a second black eye is hard to forget.

Communicating change is easy. Hastings chooses to makes it hard. 

Given that the first fiasco cost the company about one million of its 25 million subscribers, one would think that Hastings would have rolled the split, perhaps reducing the subscription rate of one of them.

Some customers might have seen him as a hero. It would have also carried a "we heard you" statement,  which would have helped the company sell the split. Ergo, we found a way to reduce rates and that requires us to offer both services under two different companies. The fallout might have been minor. But instead, their communication with customers looks a little bit more like this ...



At minimum, any other approach would not have overshadowed the upcoming Neflix-Facebook integration. And one would assume that it would be the communication Netflix wants people to see. Certainly it would have been better than the nightmare someone dreamed up.

Companies don't have to listen to customers. Sure, that's true. 

Bruce Temkin takes a very even-handed approach on the Netflix affair (hat tip: Geoff Livingston), even if he might be wrong that the move won't cost more customers. At minimum, it will prompt what Hastings wants many of them to do anyway — drop DVD all together and split households into individual accounts (something the new Facebook service can help them do). And then what?

It's hard to say. Streaming services are not like the original Netflix model. It's an increasingly crowded space that promises more competitors than the space that used to be the core service of the company. And without DVD shipping, Netflix doesn't just lose its value proposition. It leaves the doors open.

Still, for now, it is Hastings' call. Much like the recent changes to Facebook, company owners call the shots. Customers do not have to be part of the equation. All they can do is vote with their feet. And sometimes other companies will jump all over the opportunity to help them along, right out the door.

I understand what Hastings wants to do. I really do. He could probably accomplish it too, even if some of it feels a bit sleazy. But as it stands today, delivering excuses and calling them explanations is undermining the company's ability to accomplish anything it wants to do. It might even bury it faster.

Related Articles. 

• The Netflix Apology: Good Idea, Bad Execution  by Patricio Robles

• Parsing Netflix's Apology by David Pogue

• Netflix Says It's Sorry, Then Creates New Uproar by Michael Liedtke

Killing Awareness: Long Live The King

How much would you spend to send the wrong message? It's a question Burger King might be asking.

For years, Burger King has relied on gimmicks to game its awareness, going so far as delivering one of the least appetizing fast food commercials in history. Most of it, of course, featured the frozen stare of an oversized Burger King "King" head. That is, until Burger King decided to do something different.

The King Is Dead. Long Live The King.

When the first "Kingless" commercial broke, plenty of industry people had opinions. Most of them said it didn't distinguish itself in the marketplace place enough. But according to the BrandIndex, Burger King's "Kingless" advertisements are scoring higher than they have in recent history. People like the new ads.

The new ads, featuring a clean food-centric spot with fresh ingredients to introduce the new California Whopper, have given Burger King a huge perception boost among burger buyers. And while some skeptics suggest that Burger King needs more than positive perception to gain any ground against McDonald's (50 percent market share vs. 13.9 percent), the campaign is clearly off to a good start compared to the well-known but negative perception generating King.

Awareness Works. But Only With The Right Message.

There are plenty of advertising colleagues who think the ad is a bore. And there are some who argue that market research is paying off. And then there are those who say it doesn't matter until Burger King cleans up its stores. So who's right?

All of them. And none of them. Advertising is not a take-it-or-leave-it net sum game among advertising executives. It's a take-it-or-leave-it net sum game among consumers.

While the advertising is arguably boring, it seems to resonate among consumers much more than their former spots. As a first spot, McGarryBowen did the right thing. The contrast isn't between Burger King and other burger joints as much as it's a contrast between what was their marketing and what will be.

Instead of selling a clown-like king, Burger King wants to sell burgers. And for the first time in a long time, one of its commercials made me think of food instead of losing my appetite. That has to count for something.

It also counts toward how awareness really needs to be measured — as part of a more complete formula. It never did Burger King any good to be the most talked about quick service joint no one wanted to eat at. And, reflecting back on the King pole dancing, the brunt of their own joke.

Anybody Can Get A Webcam And Make Monkey Faces.

Webcam 101 for Seniors... captured 7.3 million views. I think that's great. It's a cute video.

However, that doesn't necessarily mean you want to make this video your advertisement. Or that this couple ought to head up your marketing team next week. Or that this video exemplifies a viral video.

More importantly, think of some of the decisions made by Burger King while it was supporting its long series of king/clown commercials. Every time a new advertisement launched, it temporarily moved the sales needle while quietly shrinking market share and inspiring hate groups. The King was creepy.

Looking Inside: A Developer's Marketing Confessional

Outlaw

Wow. That is the first word that comes to mind after reading Jeff Hangartner's indie gaming articles a.k.a. confessionals at Gamasutra. Hangartner recently launched his own indie game studio, Bulletproof Outlaws, to market his first iPhone game and the article shares some of his marketing experiences from the purview of business owner and not a marketer.

The series is a must-read for anyone in marketing, public relations, or social media because it's a rare opportunity to see an authentic, even transparent, client perspective. Even better, there is no throwing stones like the Bruce Buschel article because Hangartner is all DIY.

On Social Marketing. Hangartner gives high marks to social marketing, recognizing that it's one of the most important segments of any campaign today. He understands that social marketing might be "free," but not really free. There are hundreds of things a new indie game studio could do, and social media carries the one cost you never get back — time.

• One account on various networks is enough; it's too cumbersome to splinter your impact.
• Quality connections are more important than quantity; but weak follows can help early on for things like claiming your vanity url on Facebook.
• Social networks work better without spam; participation carries more leverage than broadcast.
• Blogs can be incredibly useful; but he recognizes that he loves to write more than most people.

Area For Improvement. From his own experience and admission, Hangartner gives some of the best advice early in the article: start early. The earlier, the better.

All too often, entrepreneurs think about social marketing (and all marketing) too late. People wait for the product, wait for the website, and wait for anything else they can think of. But the reality is that the last thing you want to do is work to develop a network at the same time you are launching a product.

On Traditional Marketing. Hangartner nails down the truth of traditional marketing in that for most startups it requires a balancing act. You neither want to blow your rent check to gain additional leverage nor can you afford to hang on to every cent you make.

• Know the rules of any advertising program, including promo codes; they have strings, including who can review your product.
• Alexa can sometimes point you in the right direction; but it's also a lot of "mumbo jumbo."
• Impressions and clicks and purchases are not the same; find your own formula that works and then test it.
• Be wary and double check anyone who asks developers to pay for reviews; consider the ethics of it more than justifying it.

Area For Improvement. Like most marketers today, Hangartner is learning that numbers are important but searchable numbers tend to lie. Even here. I run different stat programs like many marketers and all of them tell a different story. What none of them tells is who, even on the lowest read days, whom those readers might be. Rather than discount anyone, you carefully weigh who you could help make an influencer over night. Some of them only need a cause to champion and they haven't found the right one and all of them beat anyone you might pay for a positive review.

On Maintainence And Public Relations. Hangartner entitled the article Game Related and Maintenance, but mostly it's about public relations (and a recap of some other marketing and social media details). Incidentally, he even proves my point about blogs with his own. One day, his seldom read blog jumped from nothing to almost 6,000 visitors before tapering off.

• Press releases, press kits, and DIY trailers are easier than ever to make; no help needed (maybe).
• There is always an ask on the table for exclusive stuff; he suggests waiting but is tempted.
• Continually check banner advertisement outcomes and don't keep the ones that are under performing.
• Always keep some level of maintenance going because people drift off if you are not present.

Area For Improvement. Specific to what Hangartner calls a press kit: it's mostly a sales kit. That's okay. As a reviewer, some of the content can help clear things up quickly. In other areas, the sales copy gets in the way of any real story. It's also missing something else. One vertical screenshot is something I wish all developers (and bands) had on hand before I have to slice their pictures to fit.

More importantly, the public relations pro he doesn't want to hire for a release (maybe a good idea; maybe not) might help him wade through the exclusive content scenario (if they are any good). While everyone wants exclusive content, I'd be wary of what it might do to every other relationship he is trying to establish. Likewise, the time he invested looking for answers might have taken minutes had he had at least one professional worth more than $5 per hour to ask.

On Psychology. This was one of my favorites of the four articles he has written so far, and the one that convinced me to make it a must-read for communication students. It's powerful and insightful because not all entrepreneurs share this stuff with their marketing teams. As the collective articles allude, clients juggle much more than their marketing and communicator contracts. And that is the sharpest point for any marketing and public relations person to take away: you are important but not the most important part of any company puzzle.

• As a business owner, expect highs and lows; always keep your ego and attachment in check.
• Checking the stats daily is addictive; there is nothing wrong with it until it dictates your emotions.
• Everybody has an opinion, especially friends; listen, but don't think you have to act on advice.
• Handing out business cards is less important than collecting them; keep in touch with the people you collect cards from.

Area For Improvement. Hangartner does a good job outlining the psychology of being a developer and an entrepreneur. Having worked with so many, I've seen first hand what many of them go through — especially game developers, artists, and other creative types. It's hard not to take some things personally when you put so much of your person in the creation. There is no way to improve on his experience, with the exception of one thing — finding one or two people whose opinion you can value will go a long way. The only downside is that many developers and entrepreneurs find the wrong people to trust or shuffle through a deck of them based on nothing more than what their gut says today.

This post isn't advice for Hangartner. It's advice for marketing and public relations.

Of course, this post wasn't for Hangartner. It's for marketing and public relations students as well as practicing professionals, especially those who always see the world from their perspective and cannot understand why their opinions don't carry more weight with their clients or prospects.

The answer is simple enough. Marketing, public relations, and social media aren't the one-dimensional exercise that so many people in the profession like to pretend they are. This series of articles ought to go a long way in helping students and professionals see that, at least I hope so.

Clients have hundreds of things on their minds, hundreds of people with myopic suggestions, and the constant fear of failure (which sometimes carries the consequence of paying the rent). They can't be like the firm or agency that has worked with dozens of different clients, experience that eventually teaches us how to distance ourselves from the attachment of the client (but not the work) or else we might find ourselves heartbroken on a monthly basis.

For us, there might always be another client. For some of the people who hire us, there is nothing else. Treat them fairly. And, even when they are wrong on some points, always take the time to listen to their ideas. They know more than you think. You don't have to educate them about every detail, but always be open to dialogue because nowadays, especially, many of them are grasping at everything.

Advice for Hangartner? He's doing most of it right. I only wish he would expand his target audience. They aren't gamers and other developers, which is where most of his efforts have been. There are people, on the other hand, who never actively look for games but would be interested in his offering.

Influencing Editors: Public Relations

Years ago, as publisher of a hospitality trade publication (and earlier as a staff writer for several others), we were mildly amused by the volume of errant pitches and press releases. Public relations professionals would send anything.

Well, almost anything. News and relevant content were obviously in short supply. We didn't see much.

Nowadays, seven years later, we have a different kind of publication. I still consider it a side project as an online venture, even if the subscription base eclipsed the one we sold years ago. (Mostly, I only call it a side project because it's too much fun.) And public relations professionals still send almost anything. 

Well, not all of them. Some public relations professionals are different from others. Let's see how. 

A tale of two public relations professionals and their pitches. 

Once upon a time, there were two public relations firms: Jack Sprat and Joan. And as you might have guessed, Jack Sprat, much like his namesake, could eat no fat. But Joan, like his wife, could eat no lean. 

That made for a curiously different public relations practice, particularly in the area of pitches. For every one release Jack Sprat sent out, Joan would send 10. And while her clients thought that was impressive effort, something very different was happening under the table. 

All the Sprat pitches received coverage. But all the Joan pitches received none, except one. And that one, if everybody is being honest, was a fluke. Joan couldn't understand it. And finally she could not stand it. 

"How is it, Jack, that I do ten times the work and come up quite dry," she scolded. "But you, oh so lazy, come out quite well."

"My dear Joan, you might see it if you read," laughed Sprat with a shrug. "I never send fat, just the meat and some bones."

The meat and some bones will always do better than everything. 

To be clear, the first public relations firm sent three pitches. Of the three bands they pitched, one didn't fit. But the public relations firm knew it and included some information about the band's nonprofit affiliation. We do feature causes, and it was a good one that tied in with their music. We'll cover it soon.

On the other hand, the second public relations firm sends us pitches on everyone they represent, not only new album information but remixes and coverage by other pubs. But most fall so far away from our musical leanings that we have to laugh. Don't get me wrong. I don't really mind. Sometimes the pitches are entertaining, even if it's all too clear they don't know who we write about.

Over time, you have to wonder how an editor or publisher might develop an impression of the firm. While I don't mind the 10-1 pitch difference, it doesn't earn much respect. Neither did asking us to exchange a few facts for fluff the one time we did cover one of their clients. 

Conversely, the first public relations firm even gave us a head's up when they knew one of their bands  would avoid one topic. We asked anyway and the band didn't bite, but no one was worse for the wear.

But the main point is much simpler. Lean makes a publisher look forward to more. But even funny fat and gristle begin to convince them that emails from that sender can wait. Think about it.

Imagining Social Networks: The Futures Company

According to Alex Steer, writing for The Futures Company, social networks might be losing their way. He has an excellent point.

"...it's a shame that so much of the conversation around the future of social networking focuses on technology. In the last few years we've heard that real-time access, mobile apps, geolocation, near-field communication and other innovations would transform social networking. To some extent they have: many of the changes over the last decade have been technology driven. But what's often missing is the simple, human question: how do we want to interact online, and how is this changing?" — Steer

He's right. The emphasis on technology sometimes forgets the real driver of the social networks, the very people who participate in them. In fact, one could argue that the failings of social networks often leads to the content generated about them.

Consider Mitch Joel's Myth of Reciprocity post. Or Anastasiya Goers' Tips for Social Media Time Famine post. Or Ian Chang's Google+ Circles: Inverted Personal Privacy Dilemma post. All three of them have an unlikely common ground.

While they all read like they are about the failings of people (shortcomings and solutions), the real failure is found within the network. And more than that, they indicate how people are so used to bending to networks (and telling other people how to bend) that we've forgotten technology is meant to serve and not make us subservient.

Six Critical Decisions That Consumers Are Making, From The Futures Company. 

1. Scale. The benefits of a large network or the intimacy of a small network.

2. Privacy. The convenience of use and access or safeguards of private data.

3. Specificity. The investment of time on some networks or divided time on many.

4. Pervasiveness. The choice between being always on or to access when we need them.

5. Utility. The perception of seeing networks as places to play or as a professional tools.

6. World view. The choice between reinforcing our habits or challenging our preconceptions.

The Futures Company is largely right in placing the focus on these apparently contradictory pivot points. Their brief, called Status Update: The Six Decisions Shaping The Future Of Online Social Networking, is worth checking out. It may even help some people see social media differently.

In fact, it isn't even until page 34 that it loses me a little. Almost immediately considering all the pivot points, it slips a bit backward for marketing purposes, suggesting marketers learn to bend better. There is nothing wrong with that per se, except that maybe nobody has to bend anything except the tools.

Isn't that the real usefulness of six critical decisions that consumers make? People do not want to accept that choosing this means losing that. They want both at the same time and not necessarily one or the other, subject to change. And that leads to the real question on my mind.

How do we build a social network flexible enough to change with the whim of consumers? 

Nobody has done it yet, not really. If they had, social media evangelists wouldn't have the need to rush and build a huge network only to eventually declare they miss the intimacy of having a small one. No one would worry about social media time famine because activity wouldn't feel like a necessity, scored and rated. And privacy wouldn't be as much of a concern, even if the latest effort really aims at convincing us to give up more of it.

Because these aren't the failings of participants. They are the failings of the technological design created with an addictive allure meant to keep us captive as long as possible. And in many ways, it's the traditional media model all over again. There must be a better way.

It seems to me that an on-demand network could consist of intimate, interconnected spheres existing in a larger environment, allowing us to slide back and forth between smaller personal connections and large public gatherings. It would certainly give us an opportunity to go out and challenge our preconceptions while still having a place to feel secure among like-minded people.

And in that regard The Futures Company is right. By paying more attention to people and less attention to technology, we start to see a more fulfilling future for social media, with less bending.

Marketing Shift: Consumers Want Experiences

Although conducted in the United Kingdom, a recent survey from Experian CreditExpert captures a sentiment in the United States too. When men and women in their 40s or 50s are asked what dream they want to fulfill, they aren't choosing extravagant purchases like sports cars, designer clothing, or cosmetic makeovers. They're giving answers more aligned with what the Futures Company called a Darwinian Gale.

• 70 percent said that they would like to travel the world
• 46 percent said that they would like to learn new things
• 29 percent said that they would like a full-time hobby

Only about one in ten confined their answers to the proverbial middle aged crisis stereotypical answers like cosmetic surgery (13 percent women; 3 percent men). No one listed purchasing a new sports car. And designer clothes were not part of the equation. In short, material possessions have fallen off the bucket list.

Consumers want life-changing and self-affirming experiences. Does your marketing measure up?

The study affirms consumer advertising observations from a week ago, at least in so far as the middle aged consumer is concerned. The survey reveals men place work-life balance as a top priority (to presumably seek new life experiences); women want new life experiences as a top priority.

That is not to say that having the monetary means to fulfill their goals is being discounted. About three-quarters of those surveyed felt that their financial situation was the only thing holding them from realizing their dreams. Sixty-nine percent said a sudden windfall is all it would take for them to begin making life changes, including making new friends or changing their careers.

But that is not the only change. It seems people are thinking of these dreams more often. A recent USA Today poll found more than 34 percent of the population is thinking of their goals on a daily basis; 26 percent weekly; 17 percent monthly. Only 21 percent are thinking of their goals rarely or never.

What's really holding consumers back from realizing life-changing and self-affirming experiences? It might be your marketing message.

Is it any wonder that software, books, and videos are among the highest selling products on the Internet (26 percent). Airline tickets and hotel reservations are second (21 percent). Consumer electronics and hardware are third (16 percent). Or that Kindles, iPads, acupressure mats, and two specific movies (Avatar and Inception) made up the top five best-selling products on Amazon. Or that SAS, Boston Consulting Group, Wegmans Food Markets, and NetApp (listed among the top five places to work) all have customer experience-centric offerings along with an equally strong internal brand alignment.

Not really. Don't sell lipstick, sell the places you can wear it. Don't sell apps, sell what they can do. Don't sell the price, sell the experience. Don't sell a network, sell the strength of the connections. Don't sell cars, sell where you can take them. Don't sell the salary, sell the vision, camaraderie, and security.