Add Unilever and Kroger to the growing ranks of digital coupon partnerships, as consumers become more and more willing to seek out high-tech sources for old-fashioned deals. "We are working with a number of our customer partners to deliver digital coupons, to ensure that Unilever delivers coupons where consumers are looking for them -- via print or online," says a Unilever spokesperson. "We are currently partnering with Kroger on a digital coupon program in which consumers can go online, register their Kroger loyalty cards and add Unilever coupons to them." Increasingly, Americans aren't just willing to get coupons from such new sources -- they're happy about it. A new study from Scarborough Research reports that 8.6 million - or 8% -- of U.S. households currently get at least some coupons via text message and/or email. And while the Sunday newspaper is still the primary source of coupons (with 51% of households relying on them), followed by in-store coupons (35%), loyalty cards like Kroger's are a huge draw, with 21% of households drawing on them for savings. And in an analysis back in May, comScore reported that online coupons were the top-gaining category on the Internet -- with sites like Coupons.com, which captured the No. 1 position with more than 15 million visitors, gaining 85% from the previous month. (Eversave.com ranked second with 3.8 million visitors, followed by RetailMeNot.com with 3.5 million visitors.) Scarborough reports that the shoppers most likely to get coupons via text, email or the Internet tend to be young, affluent, educated and female, and they are 51% more likely to be college graduates or have an advanced degree. Providence, R.I. tops the list for email/text coupons with 12%, followed by Washington D.C., Atlanta, San Diego, Austin and Chicago, with 11%. "Coupons received via text messaging are typically sent only to consumers who have opted-in to receive them," Scarborough points out in its report. "This increases the relevancy of the offer and the potential for the consumer to act on that offer. An additional benefit is the mobility of cell phones and other personal communications devices, which allow consumers to access the coupon at the point of purchase."
Overall customer satisfaction with auto insurance companies is up significantly in 2009, according to the J.D. Power and Associates 2009 National Auto Insurance Study. Lincoln, R.I.-based Amica Mutual ranks highest in customer satisfaction with auto insurance companies for a 10th consecutive year, followed by State Farm, Shelter, Auto-Owners, Erie Insurance and Country, respectively. The bottom five finishers are Travelers, Commerce, 21st Century, GMAC and AIG. The satisfaction is driven primarily by low premiums, according to the study, which measures customer satisfaction with auto insurance companies across five factors: interaction, policy offerings, billing and payment, price and claims. Overall customer satisfaction with auto insurance companies has reached a five-year high, averaging 801 on a 1,000-point scale -- up by 14 points from 2008, according to the study. More than one-half of the 32 companies ranked in 2009 have improved significantly year-over-year. While satisfaction has increased for the four most important factors contributing to overall satisfaction, the most notable increase has occurred in the area of price, which is up by 32 points from 2008. About 42% of customers reported that their premiums decreased -- without the customer switching to another insurer -- which is nearly twice the rate from 2008. About 12 months after the start of the 2001 to 2002 recessionary period in the U.S., overall customer satisfaction with auto insurance companies declined considerably as insurance companies raised rates, according to historical data from Westlake Village, Calif.-based J.D. Power and Associates. As signs of market hardening and rising rates are already beginning to show in the 2009 recessionary period, a similar decline in customer satisfaction could ensue in 2010 and 2011. "If history repeats itself, one could anticipate a notable decline in overall customer satisfaction as a result," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, in a statement. "However, such upheaval in the marketplace creates opportunities for insurers to differentiate themselves and gain a competitive advantage. Most notably, companies that compete less on price and more on quality of services or through affinity relationships may be able to mitigate some of the expected decline in satisfaction." One way that insurers can reduce key dissatisfaction is engaging customers in discussions about rate increases prior to policy renewal time, Bowler says. When customers are notified in advance of rate increases greater than $100, and insurers or agencies offer to discuss coverage or policy options available that may mitigate the price change, customers are significantly more satisfied with their insurer overall. The study finds that important shifts have occurred in the area of non-claims interaction, which is the most important factor driving overall satisfaction. Customer satisfaction with Web sites and call centers has improved considerably. In addition, while agency insurers perform more strongly in the interaction factor than direct insurers, the advantage of agencies in this regard is slight -- an increase of only seven index points. "Insurance customers are increasingly seeking the ability to research and change coverage options at their convenience and beyond typical agency hours," Bowler says. "While direct insurers have updated their Web sites and phone-based customer service systems accordingly, a number of agency insurers have some catching up to do." The 2009 National Auto Insurance Study is based on 22,930 responses from auto insurance policyholders. The study was fielded in March and April 2009.
A new, $11-million campaign from Cruzan Rum departs from recent years' more lighthearted efforts to focus on the brand's quality and authenticity. The core elements of the creative for the out-of-home-focused campaign are the tagline "The Legendary Rum of St. Croix" and photographs by Nadav Kander of real St. Croix locals (Crucians) going about their daily routines on the U.S. Virgin Island. One of the six executions from Fallon Worldwide, for example, shows a local bartender with a bottle of Cruzan on the bar, the headline "Still Served in Bars Where Hemingway Drank," and the "legendary" tagline below. The out-of home will be national, but focused on Florida, Texas, New York, New Jersey, Seattle and Southern California. On-premises events will be concentrated in the same markets. The ads will also appear in select business and trade publications, and will provide the theme for new point-of-sale materials to replace current ones starting next year, according to Cruzan Brand Education Manager Andrea Bearbower. The campaign kicked off during a Dave Matthews Band concert at the Cruzan Amphitheatre in West Palm Beach, Fla. last Friday. Traditional Caribbean Bimini Ring games, a steel drum band and "legendary" Cruzan cocktails were featured -- the same elements to be featured at the brand's bar events. Beam Global Spirits & Wine acquired Cruzan from Pernod Ricard last year. The more serious/sophisticated campaign approach from the new marketing team is a shift away from the tongue-in-cheek tone and cocktail recipe orientation of the brand's recent efforts, points out Bearbower. Beam appointed David Turo, formerly of Allied Domecq and Coca-Cola North America, as Cruzan's senior brand manager. Beam Global, which prides itself on developing "bold, innovative, creative and unique campaigns that engage our consumers in meaningful ways," is committed to investing in increasing consumer awareness of Cruzan to drive its growth, confirms Anne Cyron, Beam's senior director, cordials and rums. The new campaign is intended to appeal to consumers who are looking for "a refined and sophisticated rum," says Cyron, in the campaign's announcement. Beam, which prides itself on developing "bold, innovative, creative and unique campaigns that engage our consumers in meaningful ways," is committed to investing in increasing consumer awareness of Cruzan to drive its growth, she confirms. First distilled in St. Croix in 1760, Cruzan has been made there by the Nelthropp family for three generations. Gary Nelthropp is currently the liquor's master distiller and president. Fallon Worldwide designed the campaign's point-of-sale and sales tools, as well as the ads. Starcom coordinated the out-of-home media buys. On-premise event executions will be led by Relay. SHIFT Communications (Boston) is handling public and media relations, and Qorvis Communications (Washington, D.C.) is directing business and trade communications.
The economy may be causing marketers to scale back on expensive, high-production efforts, but one area is still likely to see some growth this year: cause marketing. According to IEG, North American companies will spend about $1.55 billion on cause marketing efforts in 2009, a roughly 2% increase over 2008. That is down from previous year-on-year increases in the cause marketing arena, but in the current economic climate, any increase in a marketing program is worth noting, says Dan Kowitz, vice president of IEG Sponsorship Consulting. "As consumers, if there's anything we want to see a company spend money on, it's a cause that's important to us," Kowitz tells Marketing Daily. "And marketers know that." As evidence of consumer interest in sponsorship, Kowitz cited a Performance Research survey from February 2009 in which 41% of Americans said companies should increase their spending on cause marketing, compared with 13% who said they should increase spending on sports sponsorships and 20% who said they should increase sponsorship of cultural events. Plus, cause marketing is generally cheaper than sports sponsorships, Kowitz says. Mott's, for instance, has said it will contribute up to $134,000 (the equivalent of feeding one million people through the Feeding America non-profit), which is much less expensive than the many millions it might cost to put a company's name on a sports arena. "When you talk about subjects outside of sports, they come at a much more cost-effective price-point," Kowitz says. Cause marketing, however, can be tricky, particularly among a public that has grown jaded and cynical, Kowitz says. The key for marketers boils down to one thing: authenticity." "Companies have to do this in an authentic way," he says. "You can't claim to be a green sponsor just by putting your logo on a recycling bin." And with consumers more empowered than ever to find and call out companies on how their business practices don't live up to their cause-marketing initiative, companies have to put a lot of time and effort into their chosen programs, Kowitz says. The good news is that many marketers have caught on and are living up to their promises. "Companies have done a better job [with cause marketing] than in the past 12 months," Kowitz says. "What they could have gotten away with six years ago, for instance, was to throw money at something and say they're supporting it."
A colleague from P&G said it best: "One generation of marketers has addicted three generations of consumers to the heroin of price promotion." That addiction has never been more obvious than today as we watch our mailboxes fill with 40, 50, 60%-off offers from nearly every name in the game. The short-term spin: Retailers need comp store sales growth. The longer-term implications? The retail universe will continue to devolve to "okay, available and cheap." A woman walks into a retailer looking for a designer dress for a cocktail party in Las Vegas. She's offered Anna Sui and Calvin Klein; she loves both. The salesperson goes off to find the perfect accessories as the woman sits in the well-lighted dressing room. The salesperson returns with the receipt and the woman is aghast. It's half the amount she expected -- here's the punch line -- half what she wanted to spend. The salesperson had clipped store coupons, opened a charge account and pulled other sleights of hand to reduce the bill into her perception of submission. But the customer was upset that the salesperson "lied" to get the discounts -- lied to the store that is. She kept the merchandise but it ruined the experience. The salesperson sliced her own commission, cut the retailer's profit, and by making assumptions, transformed a nascent relationship into an embarrassing financial transaction. This denigration of the shopping experience happens everyday -- and not just for designer goods. The wholesale wholesaling of retail is the marker of an engine running on empty. We're taking shopping out of the process -- to go straight to buying -- but physical retailers can't compete with the efficiency of the Internet regarding buying. How do we kick our addiction to price promotion? We must focus on the shopping (not buying) process, enhancing, entrancing, and engaging customers and salespeople in the dance. 1. Retailer, hire fashionista/passionistas. Instead of training salespeople how to up-sell, hire passionistas who are genuinely excited about the merchandise. Research we conducted for Passion Brands shows that their avocation is their vocation. Rather than hire people based on affordability, how about because they read Vogue and Glamour, are obsessed by "Project Runway" and come to us with a million ideas for in-store make-overs and fashion shows? Genuinely fashion-involved people are creative -- let them be. 2. Brand the experience, differentiate on style and design. The most salient emotional benefit of shopping is that "lucky" feeling. We can empathize with retailers who resort to the short cut of price promotion to elicit the "lucky" response. However, the folks who work more creatively to prompt the "I'm lucky I found it" reaction through enhanced shopping experiences win social and financial capital. When improved margins, share gain and loyalty are the key metrics, retailer and shopper forge winning strategies through which each feels lucky. Of course, every so often a sale can generate genuine luck. A great example is the semi-annual sale at Pink. Suddenly you see people all over carrying Pink Sale bags. No other advertising is required as you're aware in the most aspirational way that this savvy store is having a sale. 3. Change the tone, acknowledge the customer knows the economy is challenging. "Buyers days" and "white sales" are old school marketing -- like nothing is going on that has every retailer panicked. That's goofy. I tell clients there is no unfocused group person left in the world. Stephen Brown (University of Ulster) says, "Marketers know about consumers, consumers know about marketers, marketers know consumers know about marketers, consumers know marketers know consumers know about marketers." That being the case, marketers need to acknowledge it. Customers don't want to pay more than someone else. Why not have an "end of the quarter, we have to make our numbers, you have to do your part" sale? Make it fun, festive and fearless in trusting the customer. Hold it after regular business hours, serve snacks and umbrella drinks; engage your best customers. Customers want a unique proposition. When we offer that through service and support, or any of a hundred valid means, we de-average price. Then the challenge becomes to authentically explain why we're doing it and, when we do, "Today only! Free shipping!" will cease to the only workable mantra.
As an agency owner, I work with companies across various industries and verticals, and so it strikes me as illogical how many -- even nonprofits -- hire marketing and PR firms to tout their company's abilities to the media and beyond with the exception of marketing (and related) firms. The irony here is that in an industry focused on selling ideas, brands and images, many marketing firms don't practice what they preach. When was the last time you PR'd or promoted your company in a calculated, consistent and authentic manner? (A canned press release on PRWeb does not count.) Some time ago, I had a conversation with a client (before he became a client) and asked about his agency's work. "Our work speaks for itself", he told me. Really? "Then why do you want to hire me?" I shot back. For me, that was the crux right there. Getting others to know who you are and what you do, whether your company is built upon selling tangible goods or marketing those of others. As a marketer, what you do for your clients is something you should be doing for your firm at every opportunity. You know, creating authentic, credible communications. If you aren't committed to your brand or don't convey that same passion about your "products," how can you expect others to? You'd be shocked to learn how many marketing firms have no real marketing or PR strategy to speak of. It runs more on an ad-hoc basis, driven only by the need to announce a new something or rather. Too often, I see marketing firms of all disciplines repeating the same mistake. They simply don't promote themselves like they do their clients. Great work isn't great until others really know about it. I came to this realization as I struggled with my agency's evolution. How could I gain credibility amongst my peers, and most of all, how could I "PR myself" when I was in the business of PR? It made sense that if I could promote my company effectively, I could promote yours too, right? I discovered that all it would take was time and commitment. And to practice what you preach. Practice what you preachTake some time (yes, you can spare some) to think about what you want/need to achieve. Market share, brand awareness, industry recognition and relationship building? You develop kick-ass strategies and campaigns for your clients to achieve those same goals, so do the same for your company. Decide what your goals are, then go in for the kill. And do it now, the recession's almost over. Don't do PR for DummiesOnce you've decided what's important, i.e., ego-tripping, lead generation, industry recognition, all of the above, call in professionals who speak your language and can remain objective about your business, while understanding journalistic needs, and they will sell your story the right way. Just say noTo the temptation of sending another press release. Journalists will thank you, trust me. Learn to understand what's really news: Differentiate from what's news for your customers and news for media outlets. We're talking two very different messages here. Unless you're a biotech company announcing a brand spanking new sustainable energy, the press release is not the be-all and end-all. Stuart Elliot is truly not interested in your new hire, new client or new whatever. And neither is Amy Corr. Give your targets what they want -- something of value. Dig deepBe creative in your approach, just like you do with your clients. In many ways, publicizing a marketer is so much harder because your skills and work are almost intangible. That's why you need to dig deeper. Find a common thread between your work (which, after all, is you) and the world outside your company. As basic as my premise is, it's still the fundamental basic of our existence as marketers. So forget the hype, create great conversations instead. Create opportunities to present your message where it counts most. And make that commitment to making your company a lot more visible today. Just do whatever it takes and start practicing what you preach.