Blogging: How to connect with your customers.

I’m focusing my blog on two specific organizations that I believe have created a strong blog. How do I define a strong blog? One that has a strong following, calls customers to action, and also strengthens the company’s image. In strengthening the company’s image, it needs to fit in with their values. For example, Burger King would be smart to avoid a blog in healthy eating and organic ingredients. In Groundswell, we see that creating a blog can allow for unmoderated conversation; however, if a company is to start one, they can offer a greater amount of control. Companies who do not blog can inadvertently allow others to change their image and it can be either positive or negative.

The first company I would like to focus on Southwest Airlines. As a company with a strong cult following, the blog is an enhancement of the brand. Southwest uses their blog primarily to gain experiences. They share historical pictures, stories about their routes and their fun workplace. A customer reading this blog would see the reoccurring theme that defines Southwest- fun. Responses to the blog posts tend to be favorable comments about memories with Southwest, or some insights into flight routes that customers would like. Currently, they offer an opportunity for their customer to connect to Southwest with their stories about historical events and key employees. I see an area of opportunity for Southwest to increase their blog posts that offer more two way interaction. For example, they could offer a contest to share your best love story involving Southwest. This also plays into their home base of “Love field!” In southwest’s case, I believe their best use of the blog is to gain customer insights. While they could do a “surprise and delight” and occasionally give away free tickets or swag to enhance the Southwest experience, I think they should focus on gaining insights. Southwest has always been very customer centric, and the blog could add another robust aspect.

The second blog I’d like to talk about it Eat, Live, Run. This is personal blog, with a focus on a healthy lifestyle. Here’s where I see an opportunity for companies to create experiences. Jenna, the author of the blog, often reviews food products. In the last few years, companies have sent her products to try. When reviewing (whether the item is a sample, or purchase), she shares her thoughts with her loyal readers. Comments often include discussing favorite flavors, or new uses for the product. This viral conversation can often create a buzz about a new product, and a company can benefit greatly. In Groundswell, the focus on not what technology a company uses, but more importantly, the relationships is creates. The relationship that Jenna has with her readers is one that any smart health company could viably tap in to. Creating experiences in an environment where there is already trust built between the reader and the blogger is a great way to share products. Understanding the demographics of the Eat, Live, Run reader could help companies better focus their marketing plan as well.

Blogging is a great way for companies to create relationships or gain insights. However, the company must first make sure they understand the customer’s engagement of their product in order to best focus their efforts. For examples, I can’t imagine City of Austin Gas trying to successfully create a fantastic experience for me that makes me sing their praises. However, I would be happy to offer them feedback on their billing system and website to make my interaction with them easier.

Walmart, information giant or big brother?

This article offers up a very detailed viewpoint on the amount of information Walmart is learning about its customers. While the potential for abusing the information is scary, thus far there hasn’t been any cause for concern.

I do believe that the exorbitant amount of information that Walmart collects has helped them gain a competitive advantage. For example, when I go into a Walmart store, they usually have the end caps with “wants, not needs” items, for example, soda or brownie mix. I presume they use the data of what they have sold in order to determine what purchases, outside of the necessities, that are strong sellers in each individual store. As I’ve learned in my integrated marketing course, the purchases that are peripheral route processing which means they tend to be quick decisions. With these products that are minimally processed, Walmart can push their own brands, or whatever brands they are promoting on the end caps, using the data they have on purchasing. They also use the data to focus their store product and design based on the customer’s demographics. This could allow them to better understand when shopping is more prevalent, or what products need in store advertising to boost sales. For example, knowing your shoppers buy more produce on Sundays at noon, you could change your delivery times to ensure fresh fruits and vegetables. This strength based on data, combined with the low prices, helps Walmart to be a market leader.

I find it impressive the ability to sort the data, particularly, and if the data is used effectively, it can enhance sales. For example, Safeway tracks the number of apples a customer purchases per visit. This could help them to sell a bulk bag based on the average number of apples people buy. What concerns me with Walmart is the social security number and driver’s license. While the purchase and demographic information makes sense, but the other information gained from social security and driver license information is concerning. What use or need does Walmart have with access to your mortgage payments? If they know that, will they try and buy areas where people are defaulting on their loans and build a new store? The detail of information they have does bother me, and I don’t trust them with that depth of customer information.

Using the data, Walmart is able to use not only their economies of scale, but their detailed information to get what they need, at the price they want, from their suppliers. This detailed data they are keeping allows them to push their supplies to give them greater discounts and more control over what they sell. A friend used to work at Nestle, and they renegotiated their contract based on detailed sales info about decreasing sales, and cut their margins. Nestle was forced to comply, as Walmart was their largest customer. While the information garnered may be able to help suppliers determine information about their products like; what size, color or style is a best seller, it can be used for Walmart to use their formidable strength to bully their suppliers. Without a reasonable amount of profitability, Walmart could potentially drive their suppliers out of business if they abuse the data they have.

Walmart continues to impress me with their innovation in gathering data, and using some of this information to better their stores. However, who is going to monitor Walmart activities as they continue to learn more and more about their customers?

Nike: How to "Just Do It"

My idea is to look at Nike to see the different ways they drive innovation through customer insights. I know from the attached articles that they are starting to do ethnographic studies, but how frequently and who are their prime targets? Whether it’s a new piece of clothing, or advertising, what research is being done to figure out what the customer’s needs are? I’d like to see in what areas they are focusing their customer innovation; clothing, sporting equipment, or a greater customer centric online presence. I’d also like to know if they have determined in which major category their customers fall in; people who are more drawn to the function of the clothing or people who like the brand for its recognition. Finally, I’d like to get a better understanding if their competitors are doing similar marketing research and what they are doing with the information.

The reason I am choosing Nike for my project is twofold. Firstly, they are my dream company to work for; I’d like to work for them as a national account manager dealing with key retail accounts. Secondly, as an industry leader, on the cutting edge of innovation, they tend to be on top of new trends in marketing. When a new concept of understanding customers is available, they are among the first companies to explore its applications.

The first article I am using as a reference is called The Nike Project. The study, commissioned by Nike, was done by a youth focused marketing research company, J. Langvad & Co,. It focused on the FOT(the football obsessed teenager) in Latin America. The goals were to figure out what “teens need in order to go after their aspiration,” and to continue to authentically represent football (soccer) in Latin America. The study was the first ethnographic study for Nike. The researchers used the following tools:

Setting Invasion: They followed the FOTs pre-game to watch the set up and plays for the game, and look at their motivation to train for the game. They also followed them on their off time to get a more holistic understanding of the teens.

Photographic Study: They did a photo diary of the FOT to have a better visual understanding of the FOTs.

Virtual Ethnography: They asked them about their digital habits to make sure they had a robust understanding of the FOTs.
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The second article I am using is Interview with the Nike Marketing Director about Youth. Daryl Butler, the head of Nike Marketing, believes that youth are emotionally driven to brands. Young women are going to be more than 50% of high school sport participants, which will change the way that Nike markets. They are moving more to a digital and web focus, instead of solely traditional methods. Butler also cites the importance of just talking to the consumer. He strongly believes in honesty and accessibility for the youth customer. Finally, he knows that you must stay true to your core product, especially with youth.

Blog 2

Kenna’s Dilemnia
Kenna’s dilemnia talks to us about a way in which we are boxed in to figure out what our opinion on things, whether they are music or food. We are asked to describe our like and sensation and that to us is too complex for the average person. We also can’t judge accurate differences on “pieces” of the item- like listening to some of Kenna’s song without having the experience of seeing him live. Reactions by questions are not the same as observing the behaviors of people as they see/try a new food or experience. Chekin believe that we put the product and the packaging as one. We are unable to separate our thoughts on the previous distinctions.
I believe that the context in which we receive something makes a difference in the way we evaluate it. The experience is more robust than just the taste of something but how you eat it, what it looks like and how it’s displayed plays strongly into that. I agree also that the article is right when it says different is often interpreted as bad, while it is is just that, different.

Turn Customer Input into Innovation
Asking your customers for outcomes is the best way to do R&D because they know what they need things to do, but they aren’t able to think of the way to make that happen. Trusting your customers can be hard, but they know what they want and using lead (above average) users. Working this way ensures sales as your customers had a major hand in produce creation.
This approach resounds with me. After being in sales, my focus is always on the customer needs and this exemplifies what the customer needs being met. This also learning about your customer in a higher level and not boxing them in buy questions, but letting the work on open ended statements. Then you can take this data and work with what is most strongly aligned with your goals.

Metaphorically Speaking
With the need to better understand the how customers experience data, came a new method called the ZMET process. This combines knowledge from the humanities and science (social and biological). The key points in most communication is non verbal, though market research currently tends to focus on words and verbalization. Thoughts occur in images, so we will want to do research that allows us to get closer to that. Metaphors are key in speech and a strong indicator of feelings. Reason and emotion make up decision making. ZMET uses this information to ask people to find pictures to share their feelings, also ask for metaphors. This really ensures there isn’t any interviewer interference in the process. Constructs are a huge part of ZMET using a consensus map, they are able to see repeat statements and summarize findings.

I liked this approach, however I questioned the cost factor involved in this, as well as the effort needed from the research subject. There had to be some sort of financial incentive to make this feasible. I thought the validity of showing it in media format, preserved the work and also was a better way to see the data, as opposed to quantitatively.

The new student: How much can you fit in one day?
She can’t fit everything into her backpack. Where exactly does the day start and end? The new office is a mix of the MBA student center, the road, the classroom, and her desk at home, and occasionally a local coffee shop.

School:
Early class requires a large amount of caffeine, between 12-24 ounces daily. A metal travel mug is a part of the uniform, filled with green tea, coffee or water. Shoes that are comfortable, but nice are a key part of her outfit. Laptops and blackberry’s are the most frequently used objects in her large purse. Shoulder pain and backaches are standard when you lug around 20 lbs daily. Snacks that are portable, healthy and small are important. Networking to gain more connections for internships and future jobs is vital and it’s a part of everydays to-do list. Convenience makes her day go more smoothly, and any tool that makes that possible is a key part of her life.

Life:
It’s a balancing act between fun, fitness and friends in her limited free time. Drinks are a part of the week, but so is a good workout, and the constant challenge of making sure healthy eating is vital part of every day. There’s a need for whole body workout, one that work to calm her overworked mind. Saturdays start with a class at YogaYoga. Whole Foods and Central Market are frequent stops for healthy meals, ones that fit student budgets. Cooking at home is an easy simple, one dish meal. The occasional splurge of pampering herself is always welcomed. Nights out include 6th street, dancing, wine bars, and movie nights. Exploring Austin is a priority, particularly events that are unique to the area like SXSW and ACL.

Influences:
The Wall Street Journal and MSNBC.com for business trends. BrandWeek and AdWeek for marketing trends. Hulu, to catch up on TV shows, and LaLa.com for music needs. Bookit.com and the Travel Channel website for travel information and tips. Facebook for social networking, picture uploading, and connecting, and Google Chat for catching up with friends. BCBG.com and People.com for clothing and style influences. Fitsugar.com for health information. Vault.com for company information. Google.com for searching.