The Power of Print Media (or lack thereof)

TCG is holding a monthly teleconference for marketing directors from their member theatres. It seems that everyone is talking about how major daily newspapers are losing power with their declining number of subscribers. Lately, I have been noticing something similar in the Washington, D.C. area. The major daily paper is The Washington Post, and according to our sales reps, it is the fifth largest newspaper in the world when looking at circulation. So, you would think that a strongly positive or negative review could potentially determine the success of a production (much like how New York City waits for Ben Brantley to send his word from on high).

To be honest, I have seen the exact opposite since I have been at Arena Stage. Arena Stage opened its season with Moises Kaufman's world premiere 33 Variations. The show got a lackluster review from the Post critic but was an immediate hit with our audiences. The second show of the season was Lisa Kron's Well which got an amazing review from the Post critic, but didn't seem to have the word-of-mouth that 33 Variations did. From a financial point of view, even with a not-so-positive review, 33 Variations performed very well. In years past, I have heard that if a show didn't get a positive review from the Post, it was very unlikely to succeed at the box office. However, that isn't the case today. So if potential audiences are no longer being influenced by reviewers from the major dailies, who are they listening to?

30% of 0ur audience when asked states that their decision to purchase a ticket was influenced by word-of-mouth from a friend. That is way above any other factor. So I have started to concentrate on how word-of-mouth travels, especially as it relates to new technology. New technology allows discussions to happen instantly. Audience members can text their friends from intermission, giving either a thumbs up or thumbs down. These are the people who have the real power -- the audience members themselves. And that is how it should be. Empower your audiences to be your advocates and sales will increase.

I would also pay attention to a relatively new website called Yelp. Yelp.com allows the average person to experience an event and then review it online (much like a travel website). However the Yelp community is growing very rapidly. Recently I invited several "yelpers" to attend a performance of a show and asked them to honestly review the production. We treated them exactly like a member of the press. I would encourage you to do the same. The power now resides in the hands of "citizen reviewers" instead of the reviewers from the major dailies.

Timing is everything

I rely heavily on many websites to help me research the financial institutions I work with...one of which being www.FDIC.gov. It has been a point of frustration for me that half way through the current quarter, the previous quarter data is not available yet. Really? It seriously takes that long? UGH!

This week I am focusing on a presentation regarding the various avenues a financial institution can pursue for e-marketing. I have some incredible references and am excited to give the presentation.

(Stick with me...I may seem all over the place right now, but I have a point...I promise!)

Last week, I had the pleasure of attending the ABA Marketing Network New England Chapter Fall Marketing Conference. It is a mouthful to say, but essentially all these incredible New England bank marketers get together, network, learn and generally have a great time. This conference focused on some new technology used to further the banking industry such as remote deposit capture, e-marketing, and new media. It was a great opportunity for all of us.

I sat in on the new media presentation and had an "A-HA" moment that quickly changed to a sinking feeling and then one of guilt and regret. So, here's the thing...Blogging is considered to be a new media in that is a way to share ideas, advertise and present information in a non-traditional format. This new media has no boundaries and knows no industry. It's an opportunity for us all. But there's a catch...

USE IT OR LOSE IT!

If you make the commitment to blog then you must blog and blog consistently, and I have failed you. The feedback we got when we began this blog was wonderful. You all saw the value in what we were communicating with you, but have consistently delivered our blog to you inconsistently.

Blogs are a very important tool. For many non-business it is an avenue to praise a business or express dissatisfaction with customer service. For others, it is a way to communicate a message, promote a service, or even get the word out on a new idea.

Here's the ultimate lesson I have learned about blogging... The commitment to blog is a promise you make to communicate with the people who want to listen to what you have to say. When you deliver on your promise inconsistently the people who used to want to listen to what you have to say become indifferent. This is a bad thing.

It is my intention to do a few things with this blog entry.

1. Make certain that all the bank-marketing-gurus who are considering implementing a blog for their bank understand that it is a promise you are making to the on-line community to deliver information consistently. It is a very powerful marketing tool that should not be taken lightly.

2. Apologize to you for not being consistent in our delivery of information and try to earn back your trust and loyal readership.

3. Recommit to the consistent delivery of this blog.
I, Jenna Rowland, PROMISE to blog at a minimum, every other Monday, starting TODAY.
You can write it down on your calendar...I will be back on Monday, November 5 with new words of marketing wisdom to share with you.

So, in a nutshell, don't be afraid to explore new media to promote your bank and your ideas. The opportunities are endless...did you know Wells Fargo has a branch in Second Life (not sure what that is? email me and I will show you...jrowland@marketmatch.com...more than $1million were spent there in the last 24 hours).

Try a blog, or at least think about it. It's free, it's easy, but it IS a promise that you make to your loyal readers. New media is an avenue to new opportunities. Find the one that reflects the essence of your brand and go for it!

See you on November 5!
Jenna

p.s. If you set up a RSS feed you will know when we have new posts on our blog!

Virginia is for lovers...

First off, my apologies again. I have been on sabbatical from my blog for a little over a month. Soon after coming on board as the Director of Marketing & Communications at Arena Stage, we announced our groundbreaking on the Mead Center for American Theater. The company is in an amazing place in its history, and has raised over $100 million towards its $125 million goal for the new complex. But with growth comes growing pains. With that said, when we announced that Arena Stage would be breaking ground on the Mead Center in January, we also announced that the company would cease to operate in southwest DC for 2 and a half years while the building was being built. Instead, we would transfer our main headquarters to Crystal City (a section of Arlington, VA) and perform at a newly renovated, underground theater and at a separate DC location called the Lincoln Theater. And all of this would happen in a matter of months in the middle of our 2007-08 season. So how do we move a quarter of a million people annually to a separate location, across the river in another state from a place where people have been going for fifty years?

Over the next two months, I will be blogging about what we at Arena affectionately refer to as the "transition." For an arts administrator and arts marketer, the "transition" is incredibly complex, and therefore very interesting. I love taking on projects which I know will push me. So far I have become much more adept in city zoning and sign regulations than I ever thought I would be.

One of the goals of our transition communications strategy is to make the move as easy as possible on our long time subscribers and supporters. The new location is only three miles away from our permanent home, however in DC, the Potomac River serves as a physical barrier. In my eyes, we have one shot at getting our subscribers from Maryland and DC over to Virginia. If their first experience is difficult and aggravating, they won't return. So we have developed a reasonably extensive campaign to alleviate the stress on these folks.

Part of this campaign involves using PURL technology. I first learned about PURL technology when I was working as the Director of Marketing and Communications at Americans for the Arts. PURL stands for personalized URL. A direct mail piece is created for each individual with their own personalized website landing page. When they visit the landing page, they find information specifically tailored to them. A personalized website might have an address like this: http://www.chadbauman.arenastage.org/. We are sending all of our subscribers and ticket buyers a personal note from our Artistic Director with a PURL listed in it. Recipients will then go online, type in their personal website address, and will find the following: step by step directions from their house to the new theatre, a seating diagram showing them the location of their new seats, promotional offers from local restaurants, and an opportunity to sign up for our e-newsletter. I at first was a little concerned that some of our long-time subscribers wouldn't be on the internet, however Arena Stage conducts annual market research that shows that a huge percentage (over 95%) of our total audience is on the internet.

Hopefully the PURL campaign will be one tool that eases the transition to our temporary location.

Smells Like Teen Spending

I was painting my deck and fence yesterday with some high school students that my wife recruited (one benefit of having a high school teacher as a spouse is that you are never at a loss for good baby sitters and cheap physical labor). As we were painting, one the girls whipped out her cell phone and started to hold a very public conversation with her friend about borrowing $10 so that she can put a Homecoming dress on layaway (“Borrow” $10?!?! I’m about to pay you much more than that in cash!)

That’s my point. Here is a teenage girl, an hour away from cash income, and she’s already working a “loan” to cover her spending. This is worse than a payday loan – it’s a post-payday loan.

In reality, aren’t these teens a fantastic market for us to target?
- Many have ATM/Debit cards
- Too many have credit cards
- They have nothing but DISPOSABLE income

But while targeting teens for checking and credit cards, I feel we have a responsibility to help them become more fiscally sound banking customers too! A few ideas came to mind as I lay in bed last night pondering this subject:
- Why not offer a special low balance, low interest credit card for teens. Too many companies take advantage of teens with 20%+ interest rates. If a card only has a $500-$1,000 limit, where’s the risk vs. the gain of building great relationships at a young age?
- Why not make students pass a written test about saving and credit before credit or debit cards are approved? If nothing else, it would help them to think about money in a new way and would differentiate our efforts in the minds of the student’s parents (and don’t we want to be hero’s in their eyes?)
- Many of us sponsor school activities, but how many of us really leverage them? Why not negotiate to hold a student focus group at the school. Use it to learn:
. - What percentage of students has a checking account?
. - Did they simply choose their parents bank or credit union?
. - Do they understand how interest works on credit cards
. - What features are they looking for (text updates, online banking, etc.)

I’ll have these students back tonight to finish the painting; maybe I’ll hold my own teen focus group and get back a little more for my investment than a beautiful back yard.

Cheers.

Customer Service at its finest!

Just when I thought I was out of things to talk about, I had a WOW experience!

Once a month, I travel to our corporate offices for some face-to-face time with the rest of the MarketMatch team. During my trip, I usually stay at a chain hotel that offers a great rate, a below average free breakfast and rooms that are pretty spartan (and not always very clean). Each time I stay, I usually end up switching rooms at least once because the room they originally gave me either smells like a smoke shop or is dirty enough to refuse to take your shoes off. But it's quiet, I feel safe and the staff is pretty nice. In my mind, that (almost) makes up for the shortcomings.

As I prepare for my October trip, I learn that the new Hampton Inn has opened and is ready for my reservation. I am already a HUGE fan of Hampton properties (well, Hilton in general is great, but I love the Hampton price point!) so it took me all of half a second to look into their rates.

Imagine my disappointment when I realized that their rooms are, on average, $30 per night more expensive than the previously mentioned not-so-clean chain hotel. To me, that $30 would be worth it, but in the interest of being economically responsible, it would be best to stay at the cheaper place. But just in case, I asked to speak to the manager.

I told the Hampton Inn manager (his name is Jason) of my experiences with the other hotel down the street and that while I am already a HiltonHonors Silver VIP member, I will have to continue my relationship with the other hotel because of his price. And that's when it happened. He offered me the AARP rate that split the difference. Now we're talking. A better night sleep, better breakfast, double dip points (that's what Hilton calls it when you earn hotel points AND airline miles in the same stay) and the peace of mind that the hotel is clean...it is brand new!!! No more sticky comforter!

I did however hesitate in that he didn't match the price, he only split the difference. Jason immediately noticed my hesitation and quickly jumped in with, "how about this...you stay here in October at this rate and when you get here we will talk about a permanent negotiated rate for all people who travel to this hotel for your company." DONE!!! I was so happy I could hardly stand it.

So, here's the obvious question...how does this relate to what you do? And the answer is...VERY CLOSELY.

While we all know that, as bankers, we never want to negotiate price, BUT, as bankers, we also know that our best customers can be tempted by the price down the street. And while our customers will still continue to do most of their business with us, when it comes to those customers who are business owners (or in my case, an employee) they will do what they have to in order to do what is best for their business. Even if that means they settle for mediocre service, no frills and fewer choices. In order to be economically responsible they sometimes have to settle for less to save more.

So here's my question to you...is it worth splitting the difference to get the business and fill the room? An occupied room at a lower rate is better than a vacant room. Or in your terms, a big loan at a lower rate is better than no loan at all...apply this to deposits...an account at a higher rate is better than no deposit at all.

I know that this is, essentially, negotiating a rate. However, I would argue that it is more about managing a relationship than negotiating price. And this may not be right for everyone...maybe just your VIP customers. And it really boils down to empowering your employees to do what is right to get the business and enhance the relationship with your best customers.

Your competition wants what you have...YOUR CUSTOMERS...especially your BEST customers. What will you do to keep them?


Not sure where to start? Call me. I'll tell you!

And to all of you ABAMN members, see you in Baltimore!!!

Jenna

The Marketing Silo

First off--apologies for not writing much lately. As you know, I am in the middle of transitioning jobs which put me in a place where I was working two jobs at the same time for a period of three weeks. Needless to say, that didn't give me much free time (or sleep). Now that I am settling in to my new position at Arena Stage, I am happy to say that I would like to concentrate a little more on writing.

Today's topic: the Marketing Silo. I find it interesting the more I work with large organizations, mostly from a consultant stand point, the more I find marketing departments which are functioning almost as a separate entity from the rest of the organization. For some organizations, the marketing department is somewhat of a mystery for people who don't have an external relations function in their job.

For most arts organizations, marketing is a critical function. Due to tight cash flow situations, marketing departments are expected to consistently hit their goals while reducing expenditures. To accomplish this, marketing must be looked upon as a central decision-maker for almost all operational decisions, not just the ones that obviously affect external affairs. For example, a shift in valet parking companies might cause longer waiting times resulting in unhappy customers and subscriber attrition. Although valet parking might not be viewed as a marketing function, it definitely affects the customer. I would encourage marketing directors to become involved in all decisions that affect or touch the customer.

With that said, marketing directors need to become ambassadors, especially at large organizations. Go out of your way to meet everyone, and encourage everyone to give you feedback on the activities of the marketing department. Yes I know, you might get that person who is incredibly nit picky and will visit you every week trying to convince you that if you increase the point size of the text in your ads one point that you will bring in exponentially more income. However, I have been incredibly lucky to work with brilliant people who came up with amazing ideas whose job function has nothing to do with marketing.

Marketing departments are being taxed with becoming more creative as budgets are cut and sales goals increase. If you work at an arts organization, you have a wealth of creative people just outside your door--reach out to them. Share your marketing plans. Invite feedback. Give thanks and recognize all contributions.

In just my very short time at Arena Stage, I have been visited by our Producing Artistic Associate, Master Sound Engineer, Director of Audience Development, and several others who have floated some absolutely fantastic marketing ideas my way. So if you by chance are working in an environment where marketing is consider an island to itself, break down those walls and eliminate the silos, and I guarantee you will be happy with the results.

CRM - The Forgotten Marketing Tactic

Hi Folks!
After a nice summer break, I'm back with important information on customer relationship management (CRM). Most companies, public, private and entrepreneurial typicaly get so caught up in revenue generation and customer acquisition they forget about retention and managing the relationship with current customers.

Is revenue and new customers important? Heck yeh. But don't forget that an effective CRM plan will also positively impact your bottom line and overall profit margin.

A Harvard Business review study on customer profitability and lifetime value revealed that companies can boost their profits by almost 100% by retaining just 5% more of their customers.

A study by CRMGuru found that company’s that successfully implemented retention plans increased customer satisfaction by 51%.

It's important to understand the complete Customer Relationship Cycle and what you should be striving for. The goal should be post-satisfaction stage and include loyalty, and ultimately, advocacy. This is where many companies, big and small, fall short.

Customer Relationship Cycle
--Awareness. Prospect recognizes need for service
--Knowledge. Gained thru PR or promotional presence
--Consideration. Prospect weights needs vs. solution
--Selection. Prospect seeks solution based on ease of information, opinions of others, how your product meets their individual needs
--Satisfaction. Prospect becomes client (many companies stop efforts here -- after the sale)
--Loyalty. Customer demonstrates commitment to firm by repeat purchases
--Advocacy. Customer becomes advocate of your product and actively promotes it. This is the most personal relationship you can have with your customer!

According to permission marketing guru, Seth Godin, the process to move a prospect thru the sales cycle is:
--Stranger to Friend
--Friend to Customer
--Customer to Multi-buyer
--Multi-buyer to Advocate

You see, the "advocate" is the golden goose. This person not only is loyal to your company with repeat purchases, but is your #1 free marketer – they tell their friends, family and business associates about your company's products and services and they're not even on your payroll!

So make sure you include a CRM Plan as part of your overall Marketing Strategy and benchmark meterics before and after plan is implemented...I'm sure you'll see favorable results.