For brand loyalty … follow the money.

When it comes to brand loyalty, are we mercenaries? Loyalists?  Cultists?

Or maybe we’re just lazy?

With major brands spending billions of dollars each year using various strategies to build and keep brand loyalty, these questions are important.

Recently-published consumer research by Maritz Motivation Solutions and Wise Marketer Group seeks to get to the nub of the issue.

Maritz/Wise surveyed nearly 2,100 American adults age 18 and over via online questionnaires and consumer research panels. The respondents were filtered to include purchase decision-makers or key influencers within one or more of six major consumer categories:

  • Airline travel
  • Banking services
  • Credit card services
  • Hotels/lodging
  • Restaurants
  • Specialty retails

The results of the research reveal that brand loyalty isn’t one monolithic mindset, but consumers tend to fall into one of four categories, as follows:

  • “Mercenaries” – Loyal to brands that pay them to be loyal: ~55% of respondents
  • “True loyalists” – Stay true to a brand because people connect with it above and beyond any explicit incentives to do so: ~30%
  • “Sloths” – Can’t be bothered to switch brands due to inertia: ~8%
  • “Cultists” – The brand represents their personal identity: ~7%

What the Maritz/Wise research also tells us is where people come down on brand loyalty attributes is based more on attitudinal characteristics than something that can be segmented easily based on conventional demographics.

In other words, brand loyalty characteristics aren’t driven by age, gender or income level; mercenaries and cultists are found in their expected proportions across the spectrum of loyalty.

In another finding, when it comes to the “transactional” nature of brand loyalty, the research discovered that the “art of the deal” is based on money.

Gift cards, cash-back and credits are overwhelmingly preferred forms of reward for brand loyalty – and these apply to everyone no matter where they may land on the brand loyalty spectrum.

So, the next time we hear the old saw that “money can’t buy love” … we all know that the truth is a bit more nuanced.

Blogging and social media in B-to-B marketing: Continually falling short.

As a MarComm specialist and head of a marketing firm for several decades, I’ve worked with my share of marketing tactics — the tried-and-true ones as well as the “next new things.”

Along those lines, working with numerous B-to-B companies in their attempts to turn social media and blogging into significant sources of new business, the track records have been more often ones of failure than of success.

I think the issue boils down to something pretty fundamental: Unlike consumer products, where customers can fall deeply “in love” with particular brands, or at the very least develop feelings of brand affinity, in the world of business products and services, the brand dynamics are seldom “emotional.”

The reality is, business buyers are looking for products and services that will solve their problems and also provide all-important CYA peace of mind. Few B-to-B buyers are truly “excited” about these purchases, and they aren’t personally “invested” in the brands in question, either.

Instead, they’re looking for solutions that work. Ones that deliver on a checklist of criteria, and ones that don’t risk unpleasant developments down the road.

In such a world, the notion that buyers are waiting around to read the and interact with the next blog article or social media post that’s published by a supplier is fanciful at best.

News flash: The target audience doesn’t care about things like that.  Business buyers don’t have time in their busy schedules to read the posts.  The few times they will is when they need to satisfy a business need and are looking for information to help them make an informed buying decision.

But of course, it’s precisely then when content needs to be easily findable on the web. Brands that have published deeper and more relevant content than their competitors are going to be the ones that show up on search engine results pages (SERPs), because those are the websites the search engines reward with higher rankings based on the perceived “relevance” of the web pages in question.

This view of B-to-B audience dynamics isn’t just my personal one; survey research of B-to-B buyers reveals similar attitudes.  For instance, market research and communication firm KoMarketing publishes an annual B2B Web Usability Report, and the findings they uncover are consistent:

  • Most B-to-B buyers don’t think a blog adds much to a supplier’s credibility as a company.
  • As for social media activity, three-fourths of buyers find such platforms irrelevant to their interests and concerns.

So, what is it that buyers are seeking?

It’s more “actionable” data such as sales contact information (who to call), a list of customers a supplier serves (addressing the credibility factor), plus customer testimonials, case studies and similar reports that help buyers “see” themselves in the experiences of other customers.

That’s pretty much it.

Which brings us back to blog posts in the B-to-B realm. Informative articles that center on customer testimonials and before/after case studies provide the best of everything:  content that buyers will actually find useful, along with the “relevance” and “robust activity” that search bots are seeking in making their quasi-mysterious calculations on how high to rank a particular web page on SERP pages.

It dovetails with my typical advice to business clients:

  • Don’t publish blog posts because you expect people to read them like they would a newsfeed. Publish them for relevance and visibility when your prospect is actually seeking out information and insights — which could be months or even years after you publish the post.
  • Make sure each blog article addresses “problem –> solution” topics centered on the challenges your customers are most likely to face.
  • Twitter or Facebook? Unless your marketing have plenty of time on their hands and nothing better to do, don’t bother with these social platforms at all — because the payoff is so mediocre.

What about you? Are your B-to-B marketing experiences different?  If so, please share your perspectives in the comment section for the benefit of other readers.

Celebrity endorsements run out of steam.

“Paid product endorsements are meaningless. I want to learn about the product from experts who are advocating for it – not just some random person who happens to have a job that makes them well-known.” 

— Consumer panel participant, ExpertVoice, May 2018.

The next time you see a celebrity spokesperson speaking about a product or a service … don’t think much of it.

Chances are, the celebrity isn’t doing a whole lot to increase a company’s sales or enhance its brand image.

We have affirmation of this trend in a report issued in June 2018 by marketing firm ExpertVoice, which recently investigated a Census-weighted audience of ~500 U.S. consumers on the issue of who consumers trust for recommendations on what to buy.

The findings confirm that while celebrity endorsements do raise awareness, typically it fails to move the needle in terms of sales. In fact, just ~4% of the participants in the ExpertVoice research study reported that they trust celebrity endorsements.  (And even that percentage is juiced by professional athletes who are more influential than other celebrities.)

As for the reason for the lack of trust, more than half of the respondents noted that their greatest concern is the monetary compensation given to the people from the brands they’re endorsing. Consumers are wise to the practice – and they reject the notion that the endorser has anything other than self-dealing in mind.

By way of comparison, here are how celebrities stack up against others when it comes to influencing consumer purchases:

  • Trust recommendations from friends/family members: ~83% of respondents
  • … from a professional expert (e.g., instructor or coach): ~54%
  • … from a co-worker: ~52%
  • … from a retail salesperson: ~42%
  • … from a professional athlete: ~6%
  • … from any other kind of celebrity: ~2%

A big takeaway from the ExpertVoice research is that more people are influenced by individuals who are making recommendations based on actual experiences with the products in question. Moreover, if it’s people they know they know personally, they’re even likelier to be swayed by their opinions.

In a crowded marketplace full of many purchase choices, consumers are looking for trusted recommendations. That means something a lot more authentic than a celebrity endorser.  Considering the amount of money companies and brands have historically had to pony up for celebrity pitches, it seems an opportune time for marketers to be looking at alternative methods to influence their audiences.

Click here for more information regarding the ExpertVoice research findings.

What’s happened to influencer marketing?

Over the past five years or so, one of the key tactics of branding has been convincing “market influencers” to promote products and services through endorsements rather than relying on traditional advertising. Not only does “influencer marketing” save on paid advertising costs, presumably the brand promotion appears more “genuine” to consumers of the information.

At least that’s how it’s supposed to work according to the textbook theory.

But let’s dissect this a bit.

Some of the earliest forms of “influencer marketing” were the so-called “mommy bloggers” who were stars of the social media world not so long ago. The blogs run by these people were viewed as authentic portrayals of motherhood with all of its attendant joys and stresses.

Mommy blogs like Heather Armstrong’s Dooce.com, Jenny Lawson’s The Bloggess and Glennon Doyle’s Momastery once held sway with stratospheric monthly traffic exceeding the million page level.  But once that volume of engagement happened, it didn’t take long for many bloggers to begin to command big dollars in exchange for product mentions and brand endorsements.

Various meetings and workshops were organized featuring these bloggers and other stars of the social media world – moms, style gurus, interior decorators, fashionistas and the like – providing a forum for consumer product and service companies to interact with these social movers-and-shakers and pitch their products in hopes of positive mentions.

Eager to jump on the bandwagon of this phenomenon, several years ago I recall one of my corporate clients attending their first conference of bloggers — in this case ones who specialize in home décor and remodeling topics.

To put it mildly, our client team was shocked at the “bazaar-like” atmosphere they encountered, with bloggers thrusting tariff schedules in front of their faces listing prices for getting brand and product mentions based on varying levels of “attention” – photos, headline story treatment and the like.

Even more eyebrow-raising were the price tags attached to these purportedly “authentic” endorsements – often running into the thousands of dollars.

Quite the gravy train, it turns out.

It would be nice to report that when the bubble burst on these types of blogs, it was because their readers wised up to what was actually happening.   But the reality is a little less “momentous.”  Simply put, blogging on the whole has stagnated as audiences have moved to other platforms. The rise of “mobile-everything” means that consumers are spending less time and attention on reading long-form blog posts.  Instead, they’re interacting more with photos and related short, pithy descriptions.

Think Facebook and Instagram.

Along with that shift, product endorsements have reverted back to something more akin to what it was like before the time of social media – product promotion that feels like product promotion.

Look at blogging sites today, and often they feel more like classified advertising – more transactional and less discursive. Photos and video clips are the “main event,” and the writing appears to exist almost exclusively to “sell stuff.”

Many consumers see through it all … and it seems as though they’ve come to terms with the bloggers and their shtick.  With a wink and a nudge, most everyone now recognizes that bloggers are “on the take.”  It’s a job – just as surely as the rest of us have our 8-to-5 jobs.

Still, it’s an acceptable tradeoff because in the process, useful information is being communicated; it’s just more transactional in nature, like in the “old days.”

So where does this put influencer marketing today? It’s out there.  It still has resonance.  But people know the score, and few are being fooled any longer.

It’s certainly food for thought for marketers who are thinking that they can use influencer marketing to replace advertising.

They still can … sort of.

Amazon’s Spark that Fizzled …

Amazon Spark: Less like a sizzle … more like a fizzle.

It’s now been more than nine months since Amazon launched its social media platform Spark … and so far, it’s hardly sizzled.

In fact, it’s made barely a ripple in the market.

There are plenty of people who contend that the last thing the world needs is yet another social network. But others would like to see new alternatives to the recently beleaguered Facebook platform.

As for its trajectory, it looks as if Spark is following the former rather than the latter path. The question is, “Why?”

Very likely, the answer lies in Spark’s questionable underlying raison d’etre.  Essentially, Spark is a social feed of photos and other images. That makes it similar to Instagram … sort of.

One difference between the two platforms is that Spark is open to exclusively to Amazon Prime members.  That limits the potential number of Spark users pretty severely, right from the get-go.  [It’s true that non-members can view Spark feeds — but they can’t post their own content. And what’s a social platform if you cannot interact with it?  It isn’t one.]

Another difference with Instagram may be even more of a fundamental problem. The rationale for Spark is to focus on products that Amazon sells.  Spark is directly “shoppable,” which differentiates it from Instagram and other social networks.  It also makes it less like a true social network and more like a garden-variety e-commerce site.

In other words, rather than being an interesting and engaging social platform, Spark is boring. Informative – but boring.

It isn’t that Amazon/Spark allows brands themselves to post content there; posting privileges are granted only to people it dubs “enthusiasts” or “onsite associates.” Brands must seek out “regular people” [sic] who are members of Amazon Prime to post content on their behalf about their products.

And I’m sure that’s happening – along with varying levels and forms of compensation flowing to these supposed “enthusiasts” in return for the product plugs. But can anyone imagine less compelling content than what results from this kind of commercialized “AstroTurfing”?  No wonder people are ignoring this social media platform.

Andrew Sandoval, a group director for media planning agency The Media Kitchen, summarizes Spark’s predicament by noting that lifestyle-focused people tend congregate on Instagram — a place that shows people living their lives through products. By contrast, “Amazon Spark is mostly just talking about your products, which is the hard-sell.  Ultimately, the e-commerce social experience is a little too far from the social experience,” Sandoval opines.

Have you interfaced with Spark since its July 2017 launch? If so, do you see redeeming qualities about the platform that the rest of us might be missing?  Please share your comments with other readers.

Consumer reviews are important to online shoppers. So, are more people participating now?

Based on new research, the time-honored “90-9-1 rule” may no longer be accurate.

The 90-9-1 rule states that for every 100 people active online, one person creates content … nine people respond to created content … and 90 are merely lurkers – consuming the information but not “engaging” with it at all.

But now we have a survey by ratings and reviews platform Clutch which suggests that the ratio may be changing. The Clutch survey finds that around 20% of online shoppers have written reviews for some of their purchases.

That finding would seem to indicate that more people are now involved in content engagement than before. Still, when just one in five shoppers are writing and posting customer reviews, it continues to represent only a distinct minority of the market.

So, the big question for brands and e-commerce providers is how to encourage a greater number of people to post reviews, since such feedback is cited so often as one of the most important considerations for people who are weighing their choices when purchasing a new product or service.

A few of the ways that businesses have attempted to increase participation in customer reviews include:

  • Make the review process as efficient as possible by requesting specific feedback through star ratings.
  • Provide additional rating options on product/service performance sub-categories through quick guided questions.
  • Offering incentives such as a contest entry might also help gain more reviews, although the FTC does have regulations in place that prohibit offering explicit incentives in exchange for receiving favorable reviews.
  • Providing timely customer service – including resolving products with orders – can also increase the likelihood of garnering reviews that are positive rather than negative ones.

This last point is underscored by additional Clutch results which, when the survey asked why online shoppers write reviews, uncovered these reasons:

  • Was especially satisfied with the product or service: ~33%
  • Received an e-mail specifically requesting to leave feedback: ~23%
  • Was offered an incentive to leave feedback: ~5%
  • Was especially dissatisfied with the product or service: ~2%

For companies who might be concerned that negative feedback will be given lots of play, the 2% statistic above should come as some relief. And even if a negative review is published, the situation can often be rectified by reaching out to the reviewer and providing remedies to make things right, thereby “turning lemons into lemonade.”

After all, most consumers are pretty charitable if they sense that a company is making a good-faith effort to correct a perceived problem.

Peeking behind the curtain at Google.

A recently-departed Google engineer gives us the lowdown of what’s actually been happening at his former company.

Steve Yegge, a former engineer at Google who has recently joined Grab, a fast-growing ride-hailing and logistics services firm serving customers in Southeast Asia, has just gone public with an explanation of why he decided to part ways with Google after having been with the company for more than a dozen years.

His reasons are a near-indictment of the company for losing the innovative spark that Yegge thinks was the key to Google’s success — and which now appears to be slipping away.

In a recently published blog post, Yegge lays out what he considers to be Google’s fundamental flaws today:

  • Google has gone deep into protection-and-preservation mode. “Gatekeeping and risk aversion at Google are the norm rather than the exception,” Yegge writes.
  • Google has gotten way more political than it should be as an organization. “Politics is a cumbersome process, and it slows you down and leads to execution problems,” Yegge contends.
  • Google is arrogant. “It has taken me years to understand that a company full of humble individuals can still be an arrogant company. Google has the arrogance of “we”, not the “I”.
  • Google has become competitor-focused rather than customer-focused. “Their new internal slogan — ‘Focus on the user and all else will follow’ – unfortunately, it’s just lip service,” Yegge maintains. “A slogan isn’t good enough. It takes real effort to set aside time regularly for every employee to interact with your customers. Instead, [Google] play[s] the dangerous but easier game of using competitor activity as a proxy for what customers really need.”

Yegge goes on to note that nearly all of Google’s portfolio of product launches over the past 10 years can be traced to “me-too copying” of competitor moves. He cites Google Home (Amazon Echo), Google+ (Facebook) and Google Cloud (AWS) as just three examples — none of them particularly impressive introductions on Google’s part.

Yegge sums it all up with this rather damning conclusion:

“In short, Google just isn’t a very inspiring place to work anymore. I love being fired up by my work, but Google had gradually beaten it out of me.”

Steve Yegge

It isn’t as if the company’s considerable positive attributes aren’t acknowledged – Yegge still views Google as “one of the very best places to work on Earth.”

It’s just that for creative engineers like him, the spark is no longer there.

Where have we seen these dynamics at play before? Microsoft and Yahoo come to mind.

These days, Facebook might be trending in that direction too, a bit.

It seems as though issues of “invincibility” have a tendency to creep in and color how companies view their place in the world, which can eventually lead to complacency and a loss of touch with customers. Ineffective company strategies follow.

That’s a progression every company should try mightily to avoid.

What are your thoughts on Steve Yegge’s characterization of Google? Is he on point?  Or way wide of the mark?  Please share your perspectives with other readers here.