Perception Analyzer Dial.Log

If This is How They Treat Their Best Customers...

I shop at a high-end retailer that has a loyalty program - for every $40 spent I get a card stamped and after 10 stamps I get a $40 credit toward my next purchase. Not a bad deal. I essentially get 10% back on every $400 spent. The problem is, they stick it to you with ridiculous rules.

First, you must spend $40 during each visit to the store in order to get credit for that purchase. If you only spend $30, for instance, then no credit and that $30 does not carry-over to next time. This rule is just unnecessary. I will spend the same amount of money over time or I won't earn the credit, but why force me to spend more than I want to on any specific visit? Either way, they still don't give me a $40 credit until I first spend $400, so why not let me earn it the way that works best for me?

Second, a completed card may only be redeemed on the next visit. I learned of this when my last purchase was $85. I needed one stamp to get my $40 credit. I asked if they could stamp me for the first $40 of my purchase and apply my $40 credit to the remaining $45. They said, "No, the card may only be redeemed on your next visit." So, then I asked if I could split it into two purchases. Ring me up for $40, stamp my card, then ring me up for the remaining $45 and apply the credit. This time the "no" came before I even finished my thought - clearly they had heard it before. And, to make it even more silly, since my purchase was $85 and my current card only needed one more stamp, they completed my first card and had to start a second one for the stamp for the second $40 I spent (though no credit for the remaining $5, of course). Now I have two cards. One that's full and taunting me until I go back to redeem it and one with a single stamp.

So, this is what they call a loyalty program, eh? I understand they want to get me back into the store and not redeeming my card until next time is a way to force that to happen. But, by the time I have a card full of ten $40 stamps, haven't I already established myself as a repeat customer? It's not like I'm going to spend $400 at their store just to get my $40 credit and never return. I'm not asking for anything more than they currently offer - $40 credit after $400 spent. Just don't stick it to me with ridiculous rules designed to force me to shop more at a store where I have already established myself as a good, repeat customer.

Bottom line - loyalty programs are for our most loyal and valuable customers. They spend the most, return to us most often and provide powerful word-of-mouth (positive and negative). Let's be sure to show them the appreciation, and treat them with the respect, they have earned.

Gaming Up

MediaPost's Media Daily News reports on a Ziff Davis Media study that provides more data on the impact video game playing is having on television watching and other media consumption:

• 54.5 million U.S. households play console-based video games
  
• 52.3 million U.S. households play PC-based video games
  
• 26% of respondents said their TV viewing has decreased in the last year as a result of video game usage
  
• 20% of respondents expect their TV viewing to decrease in the next year as a result of video game usage
  

I previously addressed the impact gaming is having on television watching and there is more good info in the MediaPost article, as well as over at Adrants.

Alienating Your Best Customers

Not only is it nearly impossible to book an airline seat using frequent-flier miles anymore, but now United is increasing its fee for making changes to award tickets from $75 to $100 and adding a $15 fee for any award ticket not booked through United.com. I remember, not long ago, when you could change award reservations indefinitely and didn't have to pay extra to talk with someone. Those who have frequent-flier points to use are those who have earned points by either flying United or spending money with partners that in other ways benefit United. It's these loyal customers that United and the others must cater to the most, not alienate with fees, inconvenience and frustration.

UPDATE: Per Clinton's comment below, Northwest Airlines is also adding a $5 - $10 fee for tickets not purchased through the company's web site. Northwest is comparing this move to discount airlines (such as Southwest and JetBlue) that offer lower prices online, but I say there is a difference between offering a lower price online and charging a fee for not ordering online.

Airport Art

First the JetBlue terminal at JFK gets an Oasis day spa and now the once vacant Terminal 5 at JFK gets turned into what reads like a living, breathing artistic experience. The web site is cool (turn up your speakers) and the concept actually makes me want to visit an airport terminal. All they need to do now is settle on either "Terminal 5" or "Terminal Five" as my brand-consistency early warning system started beeping when I saw both used on the web site.

Here's their description of the project:

"Terminal 5 is an event for air travel. The airport terminal designed by Eero Saarinen at John F. Kennedy Airport, New York, was left vacant in 2001. The site reopens with an exhibition curated by Rachel K. Ward to respond to the transitory nature of travel, architecture and contemporary art. Sculpture, installation, sound, performance and other media take place within the luggage carousels, ticket counters, VIP lounges, staircases and the tunnel walkway. The terminal also hosts an airport media lounge, airport gift shop and ongoing "Arrivals," a series of public events."

[via Right This Way]

Media Multitasking (III)

Whether consuming multiple forms of media at the same time or just trying to consume all types of media faster, the way people interact with media is changing fast. This article at seattlepi.com sums it up very well. As I've previously addressed here and here, marketers and advertisers need to keep-up and find new ways of getting their messages through.

As an aside, I love the way a well written piece can make you feel the emotion and pace the author is trying to convey. I actually found myself speed reading this article without even thinking about it. Fun read.

[via Lost Remote]

AAARRUUUUGGGGGG!

NBC paid God-knows how much money to air the Olympics on its multiple networks and results of events that will not air until tonight are splashed all over MSNBC.com's home page. I know MSNBC.com is a news site and they need to report the news just like everyone else, but this sure seems like a disconnect to me and it's as bad as reporting spoilers to movies. Why not instead put a prominent link on the home page to a section of the site where the Olympics are reported? Those interested can go there and everyone else can still surf news sites without learning who won every event we have yet to watch. And, even if every news site didn't want to do this, you'd think NBC would try a little harder to protect its investment and work something out with MSNBC.

Blog Jam

For the next two days I will be contributing in some small way to Blog Jam, the first anniversary celebration of FC Now (the Fast Company weblog). Since most of my posting will likely take place there, I will update this post with links to those posts. Click on over and check it out.

My FC Now Blog Jam Posts:

Take It Outside

Nissan's Power Wall

Simple As That

Top Ten List

Supermarket Tech

Five-second ads

In stark contrast to advertisers testing 90-second television commercials in order to get viewer's attention in a fast-forward world, the campaign of Indiana Governor Joe Kernan is running five-second ad bursts that convey quick, simple messages.

In a damned-if-you-do, damned-if-you-don't kind of way, the opposition is actually complaining about the uber-short ads, saying they "don't accurately portray Indiana's still-struggling economy." As Adrants points out, "One would think the opposition would be happy his opponent was buying less airtime."

Steady Rise of Online Video Ads

This article by eMarketer highlights stats by Jupiter Research that predict online video ad spending will jump from $77 million in 2003 to $657 million in 2009. Online video ads first caught my attention back in May of this year, at which time I wrote this.

With DVR's (like TiVo) making television commercials easier to skip, people's attention split through media multitasking and broadband penetration leading to less time spent watching TV, it's no surprise that advertisers are taking their messages where the eyeballs are - online.

Get 'em While They're Young

Disney has created a desktop computer designed for children called the Disney Dream Desk PC. The $599 PC will include a DVD player, a CD-RW, an ergonomically designed kid-sized mouse, a multimedia keyboard and a digital pen. The 14.1” Mickey-shaped TFT LCD flat panel monitor with embedded speakers will be available for an additional $299.

Fastest-growing Ad Medium: Cinema

With 38.4% compound annual growth over the last five years and revenues expected to grow from $470 million in 2004 to more than $1 billion in 2008, cinema advertising is the fastest-growing ad medium. I'll tell you, after watching "The 2wenty" for a while now at Regal cinemas and thinking of all those years of listening to crappy music and watching still images flash on the screen, this doesn't surprise me one bit.

via Lost Remote

Into the Void

Less than half of emails sent to the world's best-known brands actually get a reply. For the study, companies were contacted either through their info@ email addresses or using contact forms on their web sites. The study was conducted in English and Spanish and this article at Internet Retailer goes into detail on the stats. Highlights:

Request for product info:
English - 42.7% response (average resp. time 2.9 days)
Spanish - 46.9% response (average resp. time 2 days)

Complaint:
English - 49.4% response (average resp. time 1.6 days)
Spanish - 35.8% response (average resp. time 3.8 days)

Compliment about the site:
English - 35.6% response (average resp. time 3.1 days)
Spanish - 35.4% response (average resp. time 1.8 days)

Where to buy the company's products:
English - 50% response (average resp. time 1.7 days)
Spanish - 33.3% response (average resp. time 2.8 days)

What I think is important to look at though is the sheer volume of email these companies actually get and what percentage could be replied to without requiring unreasonable staffing levels.

via MarketingVOX

The Color of Branding

Good article at MarketingProfs about the use of color in branding. An interesting example they cite is UPS using the color brown, one of the least used colors in marketing (blue is the most used, but the way). It turns out, "brown represents steadfastness, simplicity, friendliness and dependability—perfect for a logistics company." Good info as well about the connotations of other colors and the double effect of using a color in a company name like jetBlue or Red Envelope.

Airport Oasis

New York day spa, Oasis, is teaming-up with JetBlue Airways to offer a full service spa at the JetBlue terminal of JFK airport. Treatment times will even be coordinated with arrivals and departures.

From my perspective, what is so interesting about this is the blending of a high-end NY spa with a low-cost airline. Many (if not most) people who fly JetBlue don't do so because they can't afford other airlines, they do so because they appreciate the low fares and level of service for which JetBlue has become known. These are people who will still drop some cash on a nice spa treatment for themselves, especially when it is custom fit into their travel schedule. The spa opens around Labor Day and it will be interesting to see how it is received.

Thanks to one of my new favorite blogs, Right This Way (the Fodor's blog), for the link.

Trump World

According to The New York Times, Donald Trump is launching a new bimonthly magazine this fall called Trump World with the focus to be on "his personal interests." According to the editor and publisher, the magazine will "feature Mr. Trump's business and real-estate advice, as well as helpful hints on spending the riches that result."

I'm not sure I'd need hints on spending riches (were I to have them) but I must say, Donald Trump is the master of a consistent branding. Like him or not, he is nothing if not always on message. For that I say bravo and whether or not I do so in public, I will definitely be checking-out the magazine, if for no other reason than to stock-up on tips for when the trucks full of cash start motoring to my house.