WHAT DO YOU MEAN, 'LOYALTY'?

loyalty is not bought simply by offering rewards; it is earned by consistently delivering better value!

Can you resist articles about how much money people make? I can't. My deep-rooted insecurity always drives me to discover how I'm doing compared to other people. So much so that recently I was reading about Asian salaries in World Executive's Digest.

Despite frequent requests I'm not emigating to Jakarta just yet; but in the same issue was a letter which I started reading because it came from Mary Carse, who used to work with me, and kept reading because she made so much sense. She is clearly biased: her firm runs loyalty programmes; but you may find a precis of her views valuable.

A rewards programme, she maintains, can only work as part of a loyalty management strategy. Many firms institute them, wrongly, as a quick fix. But loyalty is not bought simply by offering rewards; it is earned by consistently delivering better value. To do that your company's culture must be so customer-focused that you can guarantee to deliver that product or service promise everytime and at every point of customer contact.

That has implications across your entire organization; from the staff reporting sturcture and how employees are trained, to the type of computer systems and procedures. Companies do not consider these crucial when they see a rewards programme as a marketing tool to deliver results in the short term. This leads to a me-too format, developed to get programmes going quickly regardless of how this may affect their existing operations.

Take some practical examples. how will points or miles be alloted, captured and communicated to the customer? How will redemption be handled? These processes are not part of many firms' present sturcture, so they don't appreciate what skills you need to manage them. Moreover, many programmes fail to tailor the type of reward to the customers' status. For example, 'soft' rewards which focus on privileged service and recognition tend to become more importantthe more loyal a customer becomes, whereas 'hard' rewards like free flights are more important to first-time or infrequent customers.

Another feature of such programmes is that 'success' is measured by volume of membership rather than value. So money is wasted trying to convert persistent promiscuous users into loyal customers. This is particularly true where expensive statements and newsletters are mailed regularly to customers who haven't bought for long periods. Why not spend less on those people and use money more sensibly by rewarding those most likely to become loyal?

Companies that do not understand that rewards are no substitute for consistently delivering value may actually create programmes that create more, or less, promiscuous customers. Such customers and prospects begin to expect an incentive to purchase or respond, thus diluting profit margins. They start to compare offers and buy depending on the best offer.

I agree entirely. I'm sceptical about these schemes; your competitor can always outbribe you. To me they are merely frills unless you are near perfect. Until then, invest your money in better service and communications. As a friend who runs the world's largest wine club observed; 'We sell service as a profit: it just happens to be delivered as grape juice in a glass."

Dated: June 1996

Key words: Articles, World Executive's Digest, emigate, rewards programme,marketing tool, redemption,  promiscuous

Source: Marketing: Insights and Outrages, Drayton Bird 

CONFUSED? YOU WILL BE!

Are the talents needed to rise to the top in these huge firms those required to run them?

Have you been following, as I have, the thrilling adventures of 'Big Ed' Carter, who has been brought over from the United States by BT to introduce their Friends and Family programme? For the life of me I can't think why; the idea started in the United States with another firm he worked for. Why didn't someone from BT go over, study it and just knock it off? It's not that complicated. They're too lazy, I suppose.

Carter is 1.9 metres tall. Suppose he were like a certain type of US citizen - as vast in girth as height. He would be a very barrage balloon of blubber - overweight, overpaid and over here, to adapt the old line. Maybe he's lean, lithe and magnificent, but one thing is for sure: he has quite a name for thuggish behaviour - his physical violence caused BT's agency, AMV-BBDO, to ban him from their premises. We should salute them: it takes courage to do that to somebody influential at the country's biggest advertiser, whereas it takes very little to thump people if you're built like a Sherman tank.

They have not reaffirmed the ban, because of their clients, Simon Esberger of Cellnet, has hired Carter to start a Friends and Family type programme and help them 'escape the industry's looming price war'. This may be a good idea, even if it's a shame he can't get somebody house-trained to do it, but the logic escapes me. Joking apart, friends, what would you call a scheme whereby you pay less when you ring several specified numbers? In Ashton-under-Lyne where I was brought up, folk would say it is about price. In fact even in London, where they like to complicate things a little, I imagine most people would say it is price-led. So what is Mr. Esberger talking about, or to be more exact what is he talking through?

Here's something else I can't quite get my head round. Lloyds Bank-TSB is getting out of estate agency. Ten years and God knows how many millions (billions?) later they've decided it was all a bad idea and are looking for a management buy-out. But was the idea so bad? A network of financial service firms cross-selling to each other makes perfect sense. I suppose not enough thought was applied to the boring details. You have to ensure every likely relevant opportunity is exploited and every appropriate communication sent.

These people think strategies execute themselves. When they fail to do so, the solution applied often puzzles me. They squander shareholders' money to buy some firm for more than it's worth. Lots of people lose their jobs - 'economies of scale'. Things go wrong. Then the very people they employed - who failed - borrowed the money to buy the firm back and end up making millions each. Why couldn't they do it before? Maybe they were just badly managed.

Are the talents needed to rise to the top in these huge firms those required to run them? And why do these precious economies of scale never reach as far as the top?

Dated: February 1998

Keywords: Adventures, 'Big Ed' Carter, United States, programme

Source: MARKETING Insights and Outrages, Drayton Bird, 2000

PR And The Blogosphere: A Short Guide To Success

As a PR practitioner who spends most of his life in the digital world, I can’t help but notice the mistakes of others in the industry who sometimes give the rest of us a bad name.
 

Ignorance is no excuse, and PR people need to treat bloggers and web publishers with the same respect as they would their print counterparts. If anything, I’d argue they need to treat these people with even more respect, because as time moves forward and deeper niches are drawn out in the media industry, having those key bloggers as allies can be vital for your success.

The PRs world is buzzing about blogs (and has been for quite some time). All the glossy trades have articles talking about campaigns, case studies and statistics; companies and firms are vying for blogger’s attentions, and the interaction and experimentation in the blogosphere is well underway.

New media sounds fresh and exciting (it is), and everyone wants to get involved. It is dangerous, however to dive right into the blogosphere without knowing what you’re getting into. In this space, anything you do can (and usually will) be exposed, so don’t send out anything you wouldn’t feel comfortable published publicly for the entire world to see. If you pitch a blogger, for instance, don’t be surprised to see that he or she has posted your entire pitch (potentially along with your email address) for the world to see.

Realize that most bloggers aren’t blogging for the money. Most keep a blog purely for the passion of their subject matter. And, even the ones who are making money blogging still realize that they could easily lose their audiences they have worked tirelessly to build up over the years if they publish material that isn’t ultra-compelling for their users. Don’t think that just because you have found a popular blog on your client’s subject that it’s going to be easy –just the contrary.

Most (but not all) blogs also skew towards the younger demographic, and many of them are not journalists by trade (although many journalists do keep blogs now too). If they aren’t already fans of the brand, they may be weary of your news, or even of someone just directly reaching out to them altogether. It may be an entirely new experience for them.

Get in the mix
 
The only way you will ever fully comprehend the blogosphere is to jump right in. As I mentioned before, every marketer and PR professional should have a blog. It’s beneficial on so many levels, you will:

• Get perspective on what it’s like to blog
• Understand what motivates bloggers
• Document your professional expertise
• Create a strong personal brand and a standout resume (yes, your blog can act as a resume – one that potentially gives you the edge over someone else)
• Learn a little code
• Have an altogether learning and positive experience and perhaps even make some new friends

If you’re unwilling to take this step, then it may be wiser to leave the blog

outreach to someone else.

Subscribe, read (daily), learn and follow the trends
 
If you desire success online for any degree of time, you have to realize that the web is the fastest changing system ever known to humanity. Trends, flavors, people, topics, music all come and go so fast, you need to really have your finger on the pulse of what’s happening if you’re going to stay ahead of the curve. Some ways to get started:

• Read Digg and Reddit and StumbeUpon
• Subscribe to blogs you want to get on – and read them…even the comments
• Subscribe to Techno//Marketer, Strategic Public Relations, and other marketing / PR blogs (these are just two fantastic samples, there are many – find the ones which speak to you);
• Have Google Alerts setup for the topics of your choice (industries you’re in, your clients, etc.)
• Have Google Alerts setup for your competitors
• Read BoingBoing and other Technorati Top 100 blogs
• Have your own Facebook and MySpace pages
• Mess around with Twitter and other popular web services
• Subscribe to the trade publications (ie, MediaPost, which is actually free)

Ditch the press release…at least for now
There are cases a blogger does want your press release. If you’re Apple, for example and about to release a new, revolutionary product – go ahead and send Engadget your release. It’s compelling for their users. It’s a direct fit, and something their readers are already raving fans of.

But what if you’re a company they haven’t heard of? Yes, you could just send them your press release, but that’s a better chance you’re lost in the shuffle of the thousands of emails they’re getting daily. If you’ve been reading their blog, you probably have a strong sense of what they write on, their tone, what they might cover and what they won’t cover. If you’ve been commenting on their blog (you should be) they may already even know your name.

Opening the doors of communication with a friendly email saying you’ve been enjoying their content is something appreciated, especially if you are in the blogosphere too and can share your content with them. Connect with them, and they may want to help you. Give them something you know their readers want, something that ties into their passion. If you’re passionate about it too (you should be), it will be obvious and it will create a smooth interaction. They may even ask for a press release later on with the full details – permission marketing in full effect.

A tailored approach is desired, and the blogger will appreciate it. Write it in their tone of voice, give them images and video (if you know they’ll want it), let them know this is unique for them, and you really think this would be a great fit. If you’ve been reading their blog, what you’re sending should be.

Tips for pitching bloggers:

• Read their blog daily, subscribe to their feed, comment
• Get creative, give them something they haven’t seen
• Always be prepared to see your pitch verbatim, in public
• Don’t just send your press release unless it’s really on beat, or you know that the blogger runs press releases
• Have compelling images and compelling copy
• Give a popular blogger an exclusive – even before mainstream media. The story, if exciting enough, could end up on the front page of Digg
• Treat them with respect, take your time, and be sure what you’re sending is on beat
• Respond to their comments directly and promptly, as bloggers move onto new things quickly. If you’re not quick, you may lose the story.
• Use services like YouTube to offer video along with your information. It’s an easy, quick way a blogger could embed content to go along with a post.

It’s an exciting space to be in, and with proper time, effort and creativity you can create positive buzz in this space. Bloggers and their readers are some of the most vocal people on the planet, and are clearly setting the trend for culture online. Success here is possible only if you take the time to learn, interact and contribute in ways which make everyone content.




Source: http://thefuturebuzz.com/2008/01/23/pr-and-the-blogosphere-a-short-guide-to-success/

Writing in school used to suck, and now, I want to be an educator

I am in an inspired mood for some apparent reason, and for some reason, I find myself reflecting my educational growth as student. As finals week is approaching quickly, I am alarmed that I would have one year’s worth of my degree. In fact, Monday will be the start of a week long journey of finals, and the birth of vigorous coffee drinking. In reality, I suppose late night, early rising, all-nighters might be an exaggeration to the truth of finals week, but I must say that we might appear to be underneath the pressure of last minute changes to a paper. Whatever the case may be, finals week is surely not the same fashion as a weekly ritual for a college student. What is the meaning for college? I mean, can going to classes, study your ass off, and graciously buzz through a three section test for about four years to say that you are qualified enough to work for a higher paying job? All of these types of questions used to swim in head, but now they do not because I find meaning and purpose in the academic lifestyle. I suppose each person is different, but as for me, I am excited about learning and growing academically. Can the building excitement for education inspire us?
 
What inspires us? How can the college lifestyle allow us to become inspired? I think for the most part, at least for me, inspiration comes from hard work. I love the quote from one of my professor’s door. The quote from Jim Fay, “Building self-respect comes from struggle and achievement, not from being made comfortable.” is truly something I really agree with because I can totally relate to my own struggles and achievements in the academic spectrum. But, in my other personal experiences, I can safely say that I experience various physical and cognitive disabilities that render my work a tidbit harder compared to if I did not experience the firsthand disabilities. With or without disabilities, hard work is hard work that creates self-respect. The first time I attended college, the quote aforementioned was hanging on the professor’s door, and used to think differently about it. I used to think that my self-respect needed to come from my educators and peers, but of course, I think differently about it now. Self-respect needs to come from the inside of us. People get to choice what formulates as hard work. The moment we start setting and achieving harder goals for ourselves is the moment we begin the process of having self-respect. Once we create and build our self-respect, I believe that it could be a harnessing tool to be inspired.

With that said, I am inspired because I have worked hard to be where I am now. With my language mechanics department in part of my cogitative disabilities, I used to agonize over the thought of writing, grammar, punctuation, and writing structures because I failed many, many, many times to the point of giving up. The giving up part started at a young age right after my accident, and I was constantly informed that my brain was damaged. Although, my educators and my parents under no circumstances told me that I would never achieve the normal excellence of a writer, I found other methods of communication to be much easier than to find ways to write properly. Before graduating high school, I maintained only an excellence of third grade writing level, and fifth grade reading level. I hid from my poor language skills through the invention of a word processor. I went to college for the first time to only to have the attitude of a “pricked-up-know-it-all” because I knew a few HTML codes. Short story of that – I flunked college and had to find other way to go about my life. Fast forward five years, and I ended up where I left off.
My first semester back, I enrolled for a developmental English course, where I would learn the very basis of English formality. I took the class very seriously, and allowed my English professors to perform open brain surgery on me. Once in my life, I rewarded myself with small but important steps to becoming a better writer. Once in my life, English writing made sense to me. Once in my life, I understand the importance of academic writing. All of these, “Aha” moments tie into the works of communication, and of course, I seek communication, knowledge, growth, and professionalism on a daily basis.

So how can these experiences make me desire to be become an educator? During of the course of this semester, my peers would come to me for assistance in our technology program courses. I enjoy helping students achieve success, and I always wondered why. I made the realization that the reason why I enjoy it is because I have empathy toward students. In essence, I was that lost student at one time, but today was different; I had one of my peers asked for my advice in a given subject. Can you guess the given subject? Yes! Writing – I felt honored because writing used to my weakest link, and of course, overcoming the struggles to be a lending hand in editing or advices surely gives me inspiration of what I am supposed to become. This post is a reminder for everyone to never ever give up! If you say you can’t or can-You are correct! I tell myself that I want to become an educator, but I have already realized, I am an educator and a student.



Source: http://www.digital-media-blog.com/blogging-bites/writing-in-school-used-to-suck-and-now-i-want-to-be-an-educator.html

11 ways to find your organisation’s go-forward strategy for 2013

News publishers that are open to an innovative, multi-media approach will be in the best position to grow their customer base this year.

Since I left Digital First Media in the third quarter of 2012, I have had the pleasure of working with a number of media companies in a consultative role, helping them define their go-forward strategy. It has been a very positive, eye-opening experience for me.

  I plan on using those lessons learned to help organisations of all sizes in my new role as vice president of interactive services for Affinity Express.
That being said, here are some thoughts to consider as you prepare yourself for 2013 and beyond:

1. The economics of the business are in a constant state of transition. The classified business has retracted to become a small minority of revenue for publishers, and the future of legals and pre-prints are in question now.
Publishers have to be ready to adapt their business to what their audience and advertisers want. I am in no way suggesting print will disappear, as I do not think that will be the case. But it will be a different business. I fear those who are unwilling to adapt may not survive.


2. There are a number of companies taking very innovative steps and trying new things. That is the best, most practical approach; if any one company had figured it out, everyone else would be copying the model.
   
   Seek out these innovators and find out what they are doing and how they are doing it.


3. At the core or your strategy, you have to sell advertisers things they want to buy.
   
   I believe those publishers that are constantly feeding the sales organisation new products and platforms, and are willing to find success through experimentation with a fail-fast mentality, will be the most successful.


4. I typically find the smaller the company, the more fluid and dynamic it can be. The digital agency concept is sweeping the publishing business, but few are fully committed to it.
   
   Companies need to start thinking about what they are today and envision what they will be tomorrow. Then build plans accordingly.
   
   You can’t be everything to everyone nor can you do everything yourself. To quote Jeff Jarvis, “Do what you do best and outsource the rest.”


5. Small- to medium-sized businesses (SMBs) are dedicating a significant part of their overall expense budgets (not just marketing) to building out dynamic solutions and customer acquisition models online.
   
   Those publishers offering Web site design and development, coupled with search engine optimisation, pay-per-click, maps, and social solutions are able to get in front of virtually any business.
   
   And this is what SMBs want to talk about first. You can then layer on additional marketing opportunities across all platforms. But they need this foundation.


6. The more comprehensive the offerings, the better they are for SMBs when it comes to time, price, and relationship. Spreading money across multiple companies doesn’t allow them to properly leverage their total marketing spend to get the best possible pricing.
   
   Plus, publishers that can look to offer more than just one or two platforms will find the relationship with the SMBs will be richer and longer-lasting.


7. Multi-media publishers have the single most important advantage: an established, in-market sales force with existing relationships and a local brand. This above anything else distinguishes them from any pure-play competitor.


8. You have to think in terms of total audience as opposed to individual segments. The reach of a local publisher is greater than it has ever been when you combine print, online, mobile, and social channels.
   
   Offering a collective solution with robust targeting capabilities is a huge opportunity.


9. You need to take action. Stop talking about what you want to do and stop discussing what you can’t do. Focus on what you can and will do.
   
   Hire specialists to work with the existing sales staff who also will cultivate new business on their own. Remove complacency from the current sales organisation and look to serve the market as a whole.
   
   Stop constricting yourself by what you don’t know.


10. You walk a fine line between being aggressive and driving change, and taxing the bandwidth of the local sales organisation.
    
    I think you can fit only so much on one plate, and it takes time for things to really click. Make sure you have proper support functions in place so salespeople can sell.


11. You can build the best solution, create the best marketing material, have the best training, and sell the hell out of it. But if you cannot fulfill it, you will fail.
    
    Be overly prepared to support the sales effort and partner with companies that are strong where you are weak.

I hope, at the very minimum, this sparks conversation within your organisation. You may agree or disagree with the points above, but there should be internal discussion and debate around these topics.




Source: http://www.inma.org/blogs/integrated-advertising-sales/post.cfm/11-ways-to-find-your-organisation-s-go-forward-strategy-for-2013

What is market research?

The exchange between sellers (supply) and buyers (demand) for particular goods or services is called a market. A market does not necessarily exist in a single location, nor need it be a real location – products can be bought and sold online.
 
Markets change constantly and businesses need to have a clear understanding of both the supply and demand. The principal role of market research, therefore, is to provide a business with a comprehensive view of consumers in order to develop products and services that satisfy their needs better than the competition. Also, given the increased complexity of the business environment, it is no longer enough to make key decisions using a ‘gut-feel’ approach alone. Decisions need to be informed and market research helps to support this process, significantly reducing the level of financial risk attached with investment decisions.

Market research involves the capture and analysis of consumer, competitor and market trend data. This enables JD to assess more accurately the level of demand for its products. It also influences decisions to target capital investment on projects that will offer the best return on that investment, such as opening a new store or entering a new market.

Market research provides consumer feedback. It is essential for JD to have this dialogue with the consumer to gain insight into what they think about its range of products, brands and services. This enables the business to meet its demands and outperform the competition. It helps the business develop a clear and informed strategic business plan which all business colleagues can work towards fulfilling. For example, this information can create a winning marketing mix to target promotions to reach different customer groups or influence decisions on range planning in new stores.

Ansoff's matrix

Research can also provide information about the size and performance of markets. It can inform a business about who the key competitors are, what they are doing, and their market share. Potential areas of opportunity within an international, national and local context can also be identified. By using tools such as an Ansoff’s matrix to assess the levels of risk, JD can then decide which marketing strategies to focus on.
These are:

• market penetration – winning greater market share in its existing markets
• market development – entering new countries or new retail sectors
• product development – acquiring or developing new products or brands
• diversification – taking the business in a completely new direction.

 

 

 

 

 

Source: http://businesscasestudies.co.uk/jd-sports/using-market-research-to-support-decision-making/what-is-market-research.html#axzz2JcWt1Iz8

Identifying and Targeting the Most Valuable Shoppers

Big data provides big opportunities for brands and retailers to identify and target their most valuable shoppers. According to IBM, the world creates 2.5 quintillion bytes of data every day. Beginning but not ending with purchase transaction records and loyalty card programs – and with the help of shopper analytics companies such as dunnhumby, EYC, Nielsen and Spire – brands and retailers are challenged with leveraging this abundant information in their shopper marketing.

"Most likely identification [of most valuable shoppers] is coming from frequent shopper cards," says Catherine Lindner, managing partner at Sagres Consulting and a former vice president, retail marketing, at Walgreens. "But it's also looking beyond that. Credit and debit card purchases, online behavior and other social media tagging are the wave of the future."

Understanding all of that information and using it to create effective strategies that target and motivate core shoppers is a key to success for brands and retailers. Unlike the length of time it took companies to figure out what to do with frequent shopper data, the "analytic power that has come from the Internet companies like Amazon.com has dramatically shortened the time it will take smart companies to aggregate big data," Lindner says.

The Kroger Co. and dunnhumby, which mines the supermarket giant's loyalty card data, are mentioned time and again as those that get it. Spire, which provides custom analytics for nine regional retailers, does as well.
"These companies are a good example that, more than just a good ROI, there is strong evidence that being able to identify and incent these shoppers is the difference between survival and oblivion," says Jeff Weidauer, vice president of marketing and strategy, Vestcom.

Identifying Most Valuable Shoppers

DunnhumbyUSA's Matt Nitzberg cites three necessary components to identifying a retailer's or brand's most valuable shoppers.

• Current spending: "Our global experience confirms that most brands and retailers have a core following, typically 20% to 30% of all shoppers, who contribute 70% to 80% of sales."
• Potential spending among current shoppers: Even the most loyal shoppers often spend less than 50% of their category and retail sector dollars on "one brand in a category or one retailer in a sector," Nitzberg says. The opportunity here is to win a greater share of wallet from current shoppers.
• Advocacy/social media engagement by shoppers with authentic enthusiasm. Whether or not they spend a lot with one retailer or brand, they can help drive awareness, positive associations and sales. Nitzberg says dunnhumby, through its BzzAgent social arm, has found that social marketing campaigns that leverage shopper insights to target known shoppers not only generate higher volumes of word-of-mouth endorsements online, "they also drive dramatically higher sales lifts in-store than campaigns that use demographics or store-level analysis." And when given the opportunity to move from loyal shoppers to brand advocates, they spend more themselves and make twice as many repeat purchases of the brand.

Other factors that come into play when identifying most valuable shoppers are loyalty and consistency. "Maybe I'm only devoting a third of my purchases to a particular brand, but I do it with great consistency," says Dan Sherr, vice president and general manager, integrated media optimization, Valassis.
Saatchi & Saatchi X's Christopher Gray, vice president, shopper psychology, says his company also takes a look at clients' fastest-growing spenders. "This can give us a sense of evolving shopper needs and emerging opportunities to further grow sales now and in the future."

Each brand's or retailer's definition of which shoppers rank as most valuable is unique. "Therefore, it's one of the key aspects of activating a strategy that can't be repeated by your competitors," says Nitzberg, "and one that can lead to a sustainable business advantage." Yet, he notes, many brands and retailers define their most valuable shoppers as those who aren't actually buying from them at all and spend most of their marketing and promotion resources on these uncommitted shoppers to generate awareness and trial with only a small spend to reward those who are loyal. "The economic irony," Nitzberg says, "is that it would take roughly 15 of these uncommitted shoppers to replace one lost most valuable shopper."

Understanding Their Behavior

Identification is the first step, but to truly influence spending, marketers must develop an in-depth understanding of the needs and motivations that drive purchase behavior. This requires the ability to develop and maintain relationships with individuals, rather than with a demographic bucket. "This is much more difficult than a simple definition such as 'female, head of household, age 35-49,'" says James Fraser, vice president, Hunter Straker.

"To truly inspire shoppers to buy our products," says Liz Boyd, president, LB Insights, "we need to get into their hearts and minds (through good, in-depth primary shopper research) to understand what triggers their inspiration." Boyd says it's about developing and nurturing a relationship as you would any other – finding out what they like, dislike, how they think, their attitudes and desires, and how they make decisions along the entire path to purchase. She suggests this can be accomplished through qualitative research such as ethnography, in-home interviews, shopalongs, neuromarketing techniques and quantitative research such as online surveys and virtual shopping. "One can't get at true attitudinal/emotional drivers of behavior by looking at panel or loyalty data," Boyd says, "and emotions are what drive our behavior as people, including our behavior as consumers and shoppers."

Focusing on most valuable shoppers is not a short-term campaign but an on-going relationship that needs to be implemented for the long haul and for long-term gains. "It is this point," says Fraser, "that challenges many shopper marketing organizations who are charged with delivering immediate ROI on dollars spent."

It's making a strategic decision to focus your spend and efforts in the places that will deliver the best results. You target the best shoppers, and you say "no" to others. "The challenge is that it's hard to say 'no' to things," Lindner says. "You are saying to others that 'I'll take your business, but I'm not going after it.' It's valuable because your resources are much more productive, but it requires some fortitude."

Marketing to Most Valuable Shoppers

Coca-Cola Co. has seen a four to seven times greater response with personalized shopper marketing activities, says Michael La Kier, group director, shopper marketing strategy and capability. He does admit that targeting at the right time with the right content can be difficult. "Lack of proper data is typically the culprit," he says. The company created the My Coke Rewards program in early 2006 to interact with its most valuable shoppers along the entire path to purchase. "Understanding the brands they buy, where they shop and what they are passionate about allows us to serve up more value," La Kier says. "In return, they reward us and our retail and other strategic partners with loyalty and seek more interaction with us." Core shoppers are also tracked by syndicated panel data, primary research, shopper card data and social media interactions.

Elsewhere, when Dr Pepper Snapple Group launched Dr Pepper Ten in 2011, the company used loyalty card databases to identify shopper behaviors that fit the beverage's most valuable shopper profile and used a variety of high-value offers to incent trial. "These targeted offers proved to be some of the most effective programs from an ROI standpoint as they allowed us to get the product in the hands of shoppers who were most likely to buy the product in the future," says David Knoepfle, shopper marketing manager.

For its work with a major Southeast grocer, Valassis receives frequent shopper program information on a regular basis from the retailer. They look at spending and loyalty and develop targeted programs based on those two segments. "You need to take the metrics and convert them into strategy statements and into accountable key performance indicators," Sherr says. "You can't spend enough time analyzing who your most valuable shoppers are and refreshing that every year. You also need to develop a methodology to track whether you're really getting it done."

Fraser cautions not to evaluate a long-term most valuable shopper strategy with short-term ROI metrics: "This has been the death of many potentially great initiatives."

Brand and Retailers Working Together

Campbell Soup Co. is able to partner with retailers on shopper marketing strategies that target both the brand as well as the retailer's core shoppers when there is alignment between the two companies, says Phil McGee, director, shopper insights. However, that isn't always the case. And when a manufacturer's most valuable shoppers don't sync with a retailer's, agencies are left trying to develop programs that serve both, Fraser says.

But, Fraser admits, if retailer objectives aren't met, programs may not be executed. "In the relatively new world of shopper marketing, retailers are holding most of the cards. The choice is to make compromises or be left watching the competition outperform your principled but ill-fated efforts." So, perhaps a brand isn't targeting its most valuable shoppers as directly as it would like, but the "increased store-level compliance that will occur because you have met the retailer's objectives will more than make up for a perhaps less-targeted effort."



Source: http://www.shoppermarketingmag.com/articles/?nid=118991