Identifying Value, or, The Challenge of “So What?”

By Paul Dumouchelle, Management Consultant, ADVISA

Sales occur at the nexus of customer need and company value.  Connecting those two requires a skill we’re addressing in a series of sales training workshops I’m conducting this winter.

A prerequisite for selling is to understand how your products’ attributes generate value.  Most salespeople are very familiar with the attributes of their business.  If you’re a manufacturer, you know the specifications of things you make.  If you’re a service provider, you know the parameters of your expertise and customer service that define a customer relationship.  For each specification or parameter you must understand the answer to the marketplace’s demand of “So What?”

For example, one of my projects involves a client whose salespeople are justifiably proud of the company’s strong community commitment exemplified in their local investments, their donations to charitable causes and the support they provide to employees’ volunteer activities.  But when I challenged them with a “So What?” all I got in response were blank stares.  For them, the commitment is an end in itself.  It is part of who they are.  This is a great sales story about their authentic and genuine commitment to their hometown but what value does this deliver to a prospective customer?

With further exploration we identified the relevant connection.  Part of their service differentiation is the relationships their sales representatives develop with their customers.  The community commitment is relevant to that relationship because it is directly tied to their deep roots in the community.  This company is not going anywhere and its people aren’t either.  They tend to have long-term employment so clients can trust what they say – when questions arise then the same person who sold them the program is going to be there to answer questions about that program.

For prospective clients, then, the value of the company’s community commitment is how this translates into committed employees who develop deep and trusted relationships with customers.

Brand Loyalty & Cars

By Paul Dumouchelle, Management Consultant, ADVISA

What a miserable week for Toyota!  The gas-pedal recall has the automaker reeling, suspending sales on its most-popular models.  Can you imagine a worse public-relations nightmare than nightly news videos showing worried Toyota-owners crying in front of Toyota dealerships that have no answer to the safety crisis?

So here I sit with two Toyotas in my garage – both of which qualify for the recall fix.  I’m on a bit of Toyota buying spree, my last three vehicles have been Toyotas.  My brand switch to Toyota from American brands did not come easily.

I was born in Detroit and grew up in the Downriver suburb of Grosse Ile.  Many of my friends, neighbors and family made a living from Ford, GM & Chrysler and some still do.  The brand loyalty of the Detroit area is as firm as ever, if my recent drive up the Southfield Freeway in Detroit is any indication.  For about 10 minutes I was the only foreign brand I saw on the heavily congested motorway – it was really quite remarkable.

My last Ford, though, was pretty much a lemon (requiring two expensive transmission replacements before reaching 75,000 miles) and its been Toyotas for me ever since.  Of course, Ford reported this week its first annual profit in four years, of the big automakers it seems to have the best momentum right now.

This gas-pedal recall shakes my confidence of bit.  If the thing actually fails on one of my cars and I end up flying off a freeway in an uncontrollable acceleration mishap – well, I probably won’t be buying any more Toyotas, if I survive.

Glove Love

By Paul Dumouchelle, Management Consultant, ADVISA

Smith & Hawken, which until last month was a specialty retailer selling premium lawn & garden products as a division of Scotts Miracle-Gro Co., closed its 56 stores at the end of 2009.  While the recession boosted do-it-yourself business in most areas, it doomed this retailer focused on high-end products skewed toward extravagant ornamentation and over-the-top uniqueness.  When I first heard the news I looked at my poor, tired hands and said, “Sorry fellas, back to ordinary gloves for you.”

I do a fair amount of gardening and work about the house and I’d found the most excellent work gloves of my life at Smith & Hawken a few years ago.  The palm-side was made of deliciously supple deerskin with padding in just the right places and reinforced double-strength in the areas my gloves typically failed after some rough use.  The backs were a  breathable, stretchable plastic mesh of some sort that made them fit like, well, a glove!  Finally, the gloves had Velcro pads to hold them on that adjusted to my wrist size.

The price on these gloves was ridiculous but the thrill of strapping them on as I headed to work outdoors in fine weather made me happy to buy a replacement pair when the first ones finally succumbed to repeated beatings.  I still use the old pair for painting – the few holes in them aren’t a problem for that work.  So when I heard Smith & Hawken was dying I rushed to see what brand was on my gloves to find out where I could look for them elsewhere and learned they were branded by the store.

Aaarrrrgh!

The gloves I loved were to be gone forever!

I don’t know who the product designers and marketers were who fashioned those gloves – but they did a great job.  By tending to the workaday needs of my gardening hands they had touched my heart.  I can’t say that about many of my branded-products experiences these days.

Then a ray of sunshine burst through the clouds of glove-deprivation, Target stores has bought the brand and will be carrying Smith & Hawken products this upcoming season!

I hope Target stocks my gloves – I may buy two pairs this time.

Food Stamp Failure

By Paul Dumouchelle, Management Consultant, ADVISA

While driving through Bucyrus, Ohio, on my way north to a client located on the shore of Lake Erie, I saw what looked like a classic mini-fiasco in marketing strategy.  What caught my attention was an abandoned convenience store, the snow underneath the gas pump canopy barely disturbed, and the promotional space beneath the empty gas-price sign proclaiming “WE ACCEPT FOOD STAMPS.”

It seemed a pathetic, desperate attempt to attract customers to a soon-to-fail business.  What is most pathetic, though, is the utter wrong-headedness of the maneuver.  Who wants to be seen as a customer of the store that advertises food-stamp acceptance?  I suspect food-stamp usage is more tied to grocery stores, in any case, and if so, the message runs counter to established consumer behavior.

I feel compelled to include a disclaimer that I hope this observation is not understood as demeaning in any way to those who use food stamps.  In January of 2009, with double-digit unemployment and an economy still suffering from a disastrous recession, food-stamp usage is way up and I’m thankful the tool is there for those that need it.

If the former convenience-store manager saw an opportunity in letting customers know about using food stamps in his store, I would have suggested doing it in a less-prominent way.

In my quick transit through Bucyrus, though, I saw several prosperous convenience stores on my route and the contrast with the food-stamp failure could not have been starker.  I took it as another lesson in marketing basics – e.g. focus on your core competency, find ways to add value through service enhancements, product innovation, differentiation, segmentation and communication.  Never forget, also, that when you abandon those basics and chase business through a quick-hit discount or a too-obvious and blatant appeal to a government subsidy you are forever cheapening your position – and that is the road to disaster.

Art vs. Science in Marketing

By Paul Dumouchelle, Management Consultant, ADVISA

During the holiday season we may pause to consider the more meaningful aspects of our lives – our connections with others, the special times spent with family, traditions that transcend the banality of daily life – and these elements of our life are very precious to us.  Marketers can take a lesson from this annual ritual and remember that brands are built from meaningful connections with our customers and not promotional gimmicks. 

The allure of promotional gimmicks is irresistible due to business “science” that can show a measurable ROI for these tactics when properly conceived and executed.  Plus, a promotion can be designed, budgeted, run and evaluated within the short life span of a brand manager on a new assignment – what could be better!

Valuable as it is, the science of promotion will never beat the art marketing when building a brand.  Even loyalty program marketers recognize this.   touches an emotion, a feeling, a sense of the possible that sparks the imagination and makes hair stand on end.

Marketing as art is rarer, certainly, and all the more valuable because of it.

Pastry Preferences and Marketing

By Paul Dumouchelle, Management Consultant, ADVISA

This week I did what I usually do when I’m waiting for the car to be serviced which is head over to the Panera Bread next door to the dealership and get a coffee and a cinnamon roll.  The cinnamon roll at Panera Bread is a pretty good one.  Probably not world-class, mind you, but something I can eat with regularity with some satisfaction.  I don’t like to eat gooey or greasy things with my fingers and Panera Bread always gives me a fork to eat the cinnamon roll; which is just as well since I’d have to ask them for one if they didn’t give one to me.

While ruminating on this topic I began to consider the marketing aspects of this situation.  In general, these days, I prefer to Panera Bread to other choices.  I don’t think I am alone, I recall seeing a Wall Street Journal article over the summer about how Panera was doing well, expanding in the recession and picking up cheap real estate along the way.

One of my other options for “coffee and a pastry” is Starbucks.  If it really is just a coffee I want then I prefer Starbucks, I think their coffee is the best.  I have a Starbucks card and use it fairly frequently but, in general, I’m probably more often inside a Panera Bread.  The barristas in Starbucks are just so juiced up on caffeine they are really a bit too perky for my taste most of the time.  And the pastries in Starbucks are lame.  Again, it seems I am not alone; Starbucks has been contracting – at least in number of outlets – for some time.  That is probably due as much to earlier overexpansion as anything.  For a time, Starbucks were popping up in every available square foot of empty retail space.

Starbucks tested the limits of their brand’s capacity and found the limits and went past them.  There were Starbucks in the Meijer AND the Target on Sawmill Road, for example, right across from one another.  The Meijer one eventually closed while the Target operation was still going strong the last time I was there.  It seems the Starbucks brand works better with Target’s demographics than Meijer’s – which doesn’t surprise me.

The free WiFi at Panera Bread is another important consideration – it meets my internet-usage needs when I’m travelling throughout the Midwest in my work.  Starbucks advertised “free WiFi” in connection with a Starbucks card and I was quite excited by that until I started the enrollment process and realized I’d have to sign up for AT&T’s WiFi service to access the available free hours.  The last thing I need is another “account” that taps into my credit card – even if I don’t charge anything there.

An honorable mention, of sorts, must go to La Chatelaine and their croissants – these are by far my favorite pastry in Central Ohio.  I like La Chateleine’s coffee, too.  They even have free WiFi, now.  Even with all that, I’m still in a Panera Bread more often than La Chateleine and the reason is convenient location (not to mention that La Chateleine is purely a Columbus-area chain).  If I’m meeting someone, as I often am, a Panera Bread is easier to find.  The last time I met somebody at the Dublin La Chateleine they were late because they couldn’t easily see it while driving back and forth on the busy Bridge Street.

My main complaint, such as it is, about the Panera Bread cinnamon roll is that the outer edges are a bit dry.  Cutting into one from the outer edge creates a veritable shower of crusty sugar bits from the coating they drizzle all over it.  I then have to spend the rest of my eating frenzy trying to get the little sugar bits to stick to my fork in some way.  Now I’m not so sure this is really a big complaint because I’ve had gooey-er cinnamon rolls that aren’t dry at all in any part and the frosting is really soft and smooth and I find those to be a bit much – it seems they are a bit undercooked and the frosting is really sickening.  I’m not a big fan of frosting, either, preferring a cake, for example, that is unfrosted or simply glazed. 

So I have to wash down those first few dry bites with my coffee.  That’s fine, that’s what the coffee’s for, after all.  But after I fight through the first sort-of-dry-ish outer ring then we’re getting into the real meat of the experience.  Perhaps the reason I really go for a cinnamon roll is that it reminds me of the cinnamon bread with raisins that my Mom used to buy.  I don’t remember where she got it, perhaps from the milk-delivery service that came to our house, but that cinnamon bread was great.  I used to pick out the raisins if there were too many and the best part was the crumbled sugar/flour bits or whatever they were on the top crust – but man that bread made some good toast!  When I finally make it to the soft inner rings of the Panera Bread cinnamon roll with the soft pastry and sweet brown cinnamon paste – well, it is a delight!

Niche Marketing Luncheon Speaker Highlights Hot Trends

At the December 8 Columbus AMA luncheon, Michael Daniels, Co-Owner and Co-Publisher of Outlook Media, spoke on demographic niche marketing in Central Ohio.  Daniels focused his discussions on how to market to Asians, African Americans, GLBT &  Hispanics.

The highlight of Daniels’ speech was focused on the need to create unique strategies to attract each group, including ads that are different for each group because they all have different needs and desires as customers.

Branding Cardinal Health During Healthcare Reform

Columbus AMA talked with George Taylor, VP of Customer Excellence at Cardinal Health, about how his company’s customer retention and customer loyalty programs are responding to the nation’s current desire for healthcare reform. Listen to how they react to potentially major change during these difficult times.

August CAMA Luncheon: Talking with Wendy's

Ever wonder what it takes to name a new food item at a popular restaurant? Columbus AMA found out at the August 11th Luncheon at BoMA. An exclusive interview with Liz Geraghty, VP of New Product Innovation at Wendy’s, reveals how they named one of the most delicious items on the menu

AMA Google Luncheon Review by David Culbertson

The following review of the April AMA Luncheon with Mark Marinicci of Google was written by David Culbertson of Lightbulb Interactive:

A brief summary of the April Columbus AMA Luncheon

Today, a representative from Google came to Columbus and local marketers turned out in droves – there were at at least 150 people attending. The Google rep covered Five digital marketing trends – more accurately, best practices: Continue reading