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Did Nike Make the Right Call?

Legendary UCLA basketball coach and hall of famer John Wooden had several rules for his teams. One of them was no long hair and no facial hair.

“One day, All-America center Bill Walton showed up with a full beard. ‘It’s my right,’ he insisted. Wooden asked if he believed that strongly. Walton said he did. ‘That’s good, Bill,’ Coach said. ‘I admire people who have strong beliefs and stick by them, I really do. We’re going to miss you.’ “  -Rick Reilly “A Paragon Rising Above the Madness”

I have always loved that story. Sometimes, to “have strong beliefs and stick by them” will cost you. Are you willing to make that sacrifice?

Image result for Nike 2018 just do it colin kaepernickThat is basically the heart of the new advertising campaign by Nike that features Colin Kaepernick with the slogan …

“Believe in something. Even if it means sacrificing everything. Just do it.”

Not only is that their campaign, it is what Nike itself is doing. The company has taken a hit for this campaign. Stock prices have dropped. People are threatening a boycott of the company. People are making videos showing them burning and destroying their Nike clothing.

The funny thing is these protesters are doing the very thing the ad purports. They are sacrificing ever buying Nike clothing because they believe so strongly against Mr. Kaepernick’s form of protest.

But I’m not here to talk about the politics. Let’s explore instead the decision Nike made to release this ad.

TAKING A STAND

The ad itself is about taking a stand. Nike had to believe there would be short-term backlash. I also believe they will see those gains comeback in multiples. Why? Choose who to lose.

Advertising is interesting. It works primarily like a magnet. Its ability to attract is in equal proportion to its ability to repel. In other words, for every person out there burning a pair of shoes, there is someone else lining up to buy Nike that wouldn’t before. I saw one post on FB from a friend showing the ad. He wrote one word … “#nikeforever.”

Nike is betting on a large segment of the population becoming more engaged with their brand because of their stand. Millennials and Gen Z are two generations who want to know where you stand, and will use that to influence where they spend their money.

One more thing to understand … Nike never actually endorses Colin’s protests, only his willingness to sacrifice for his beliefs. While not everyone will see it that way, many do notice the subtle difference.

NOT AS BIG OF A RISK AS YOU THINK

The other thing at play here is that general public opinion favors the side Nike has taken. According to a 2017 Seton Hall Sports Poll, 84% of Americans believe it is okay for NFL players to protest. 49% did express that the players should find a different way to protest, but that means 51%, or a slight majority, are okay with what Kaepernick has done. I am pretty sure the Nike advertising team knows those numbers and are willing to piss off a handful of people for a chance to more strongly attract the other 84%.

Plus, when you look at the demographics more closely, the number of athletes, especially African-American athletes, who support the protest is even greater. At the end of the day Nike is an athletic apparel manufacturer. Appealing to athletes at the expense of others is a smart marketing plan for an athletic apparel company. Choose who to lose.

WINNING WORD OF MOUTH

Another positive for this campaign is the way it has gone viral. I’m talking about Nike. Every news channel is talking about Nike. Bloggers all over the world are talking about Nike. Social media is sharing the ad by the millions. Nike has probably now received enough free advertising exposure with this campaign to pay Kaepernick ten times over.

The only question left is to see how strongly are these Nike beliefs and how much is Nike willing to sacrifice in the short run to stand by these beliefs (and the gains they will make in the long run).

The lesson here is that it is okay to take a stand. In fact, the two youngest generations who will be influencing most of the spending over the next couple decades are looking to see where you stand on issues. But you have to do it smartly. Nike took a stand that aligned with their Core Values and more strongly attracted their base customers. Back in March I gave you this post to talk about when you should take a stand. Read that and you’ll see how Nike’s decision to include Colin Kaepernick in this year’s Just do it campaign makes even more sense.

Although Colin Kaepernick probably wouldn’t be allowed on a John Wooden team, I believe John Wooden would have admired him.

-Phil Wrzesinski
www.PhilsForum.com

PS The only thing that would make this Nike campaign better, in my opinion, is if the company aligned its own business practices with the same slogan. While founder Phil Knight vowed to clean up the company after reports in the 1990’s of child labor and sweatshop conditions, reports and protests of sweatshops surfaced again a year ago.

PPS Although Nike doesn’t like to see anyone burning their clothing, they probably took into account the fact they have contracts with dozens upon dozens of colleges which will keep some of the demographics of the protesters still in their camp. I doubt too many hardcore University of Michigan fans are going to drop Nike completely. Maybe they’ll cover up the logo, but they already paid Nike for the shirt. I predict Nike’s stock will climb back up by early next year after a strong fourth quarter in sales. They also took into account that many people shop for shoes without a care in the world of the political leanings of the company. Athletic apparel is also a fashion industry. If the fashion fits, people will buy it. If the shoe works because of fashion or design or fit, people will buy it.

PPPS You should see some of Nike’s other ads in this year’s Just do it campaign. From an advertising stance, I love them.

Having Fun, Helping Others, Eating Lunch

For the past three weeks I have been making several drives from my home in Jackson to the Oakland County area for lunch. For those of you not in Michigan, Oakland County is one of the three counties (including Wayne and Macomb) that makes up the Greater Detroit Metropolitan area. Oakland County is the northernmost of the three and includes several cities, villages, townships, and lakes.

Oakland County is home to twenty-one Main Street programs in the various cities, villages, and townships, and also home to one of the largest county-wide Main Street support programs. It was Main Street Oakland County (MSOC) that hired me to make these drives each week to do a “Lunch-and-Learn” series of workshops. The workshops are four-week-long tracks on one of three topics: Selling & Customer Service, Marketing & Advertising, or Retail Math.

We rolled this out to three different communities. Two of the communities chose Marketing & Advertising, one chose Selling & Customer Service. All three are reporting back with incredibly positive feedback. Other communities are already bugging MSOC to be included in the next round.

The fun part for me is that I like driving and I love doing these presentations, mostly because I know the difference one or two good tips or techniques can make for a small business.

The fun part for the attendees is that they get a free lunch (or breakfast) and four 45-minute presentations jammed with eye-opening ideas, out-of-the-box thinking, and surprisingly simple techniques to improve their businesses.

The fun part for you is that there is still time to plan a Lunch-and-Learn in your neck of the woods (as long as you are within two hours driving time from Jackson which would include Grand Rapids, Kalamazoo, Fort Wayne, Toledo, Detroit, Flint, and Lansing areas).

Here are the three tracks with class titles and descriptions.

Option A: Marketing & Advertising

  • Week #1 Boosting Your Brand to Attract the Right Business – A quick lesson in branding to show you how a well-crafted brand makes a huge difference in attracting the right types of customers and business. You’ll learn how to uncover the true value in your brand and make your brand stand out in the crowd
  • Week #2 Marketing Your Business on a Shoestring Budget – Seven different ways you can get the word out about your business and draw traffic in without spending a fortune. You’ll learn how to leverage your talents and time to attract more customers to your business right away.
  • Week #3 Making Your Ads More Effective – We hate ads, not because there are too many, but because most ads suck. This presentation will show you the six principles that make the difference between your ad being remembered and acted upon or being simply ignored. You’ll learn techniques even the most highly paid professionals sometimes get wrong, and how you can apply them to your own advertising efforts
  • Week #4 Generating Word-of-Mouth Advertising – We all know Word-of-Mouth advertising is far more effective than traditional advertising, but do you know what it takes to actually get your customers to talk about you? This presentation shows you four proven ways you can generate word-of-mouth advertising. You’ll walk away with tips and techniques that get people talking the very next day.

Option B: Selling and Customer Service

  • Week #1 Selling in a Showrooming World – Online shopping is here to stay. So is the concept of Showrooming, where a customer uses your store to touch and feel the product before ordering it online cheaper. This presentation shows you the two types of customers, how to recognize them, and the very different ways you sell to them. Learn this and you’ll close far more sales than ever before.
  • Week #2 Raising the Bar on Customer Service – Every store thinks they offer Great Customer Service, but every customer can regale several stories where the customer service fell far short. This presentation gives you a different perspective on customer service and shows you how to up your game so that Great Customer Service is only the minimum. You’ll learn how to surprise and delight customers at every turn.
  • Week #3 Building the Perfect Salesperson – Finding the right salesperson is the key for any organization. But how do you identify the perfect fit? This presentation will change the way you look at interviewing and hiring and even training. When you’re done you’ll have a better understanding of how the best companies find the best employees time and time again.
  • Week #4 Training and Motivating Your Team to Perform Their Best – The carrot and stick might be good for a donkey, but it won’t get the best out of your team. This presentation will show you what really motivates people to do their best work and how to get the kind of creativity from your team that sets you apart. You’ll also learn how to turn staff meetings and training times into something your staff looks forward to attending.

Option C: Retail Math

  • Week #1 Reading Your Financial Statements – Your accountant will be glad you attended. This presentation will show you in layman’s terms how to read the two most common financial statements – the Profit & Loss and the Balance Sheet. You’ll learn how they are calculated, what they show, and an intuitive way to use them to check the financial health of your company. It isn’t as scary as it sounds.
  • Week #2 Inventory Management – Cash is King. In retail, the biggest use of your cash is your inventory. This presentation will show you simple and smart ways to manage your inventory levels better including how Open-to-Buy programs work and easy ways to increase cash flow. You’ll learn how to turn slow moving merchandise into cash and make your inventory work for you.
  • Week #3 Pricing for Profit – Most businesses leave thousands of dollars on the table because they don’t understand the principles behind how to properly price their products or services. This presentation shows you how you can raise prices and increase unit sales by harnessing the power of perception. Learn these techniques and you’ll start making more money the very first day.
  • Week #4 Unlocking the Hidden Cash in Your Business – There is more to retail than just buying and selling product. This presentation will show you some different ways to measure your business and some simple ways to make a little extra cash that might just be the difference you need to pay yourself a bonus this year.

If you just read those and said, “Dang, I could use this!” pass this post along to your DDA Director, your Chamber of Commerce, your Main Street Director, your Economic Development Director, your Shop Local director, and tell them, “Dang, we could use this!”

(Heck, you don’t even need one of those organizations. Just get a few other small businesses together and give me a call.)

Then contact me. We’ll go over what it would cost, creative ways to finance it, how to get the food and venues, and what dates to schedule this fall to have some fun helping small businesses grow and thrive, all while having lunch.

Sound yummy to you?

-Phil Wrzesinski
www.PhilsForum.com

PS Not within that two-hour drive? No worries. Instead of four lunches, we’ll do one big brunch and put all four lessons into a three-hour workshop. Call me.

PPS The beauty of what you’ll learn in these tracks is that the dividends are immediate. With many of the lessons you’ll see results right away. Having this information fresh in your mind leading into the busy holiday season will make a huge impact on your bottom line this year. Lets get some dates locked in now.

PPPS If you’re in Oakland County, MSOC is already working on the budget for 2019. Contact John Bry at MSOC and let him know you want in. If you want something this fall, however, check with the other organizations in your community to see if they will help you organize this.

Roll With the Punches

I picked up my son from summer camp today. He was in the Counselor-in-Training (CIT) program out at YMCA Storer Camps. As I have always done with my boys after a session at camp, Ian and I sat down to talk about the experience right away while it was still fresh in his mind.

After regaling all the experiences, I asked my son what was the one thing he felt he really learned at camp these past two weeks?

“How to roll with the punches.”

Image result for roll with the punchesRolling with the punches is a boxing technique. As a punch is about to land on you, you turn or roll your body away from the blow to lessen the impact. At freedictionary.com they also define it as, “to adapt to setbacks, difficulties, or adversity so as to better manage or cope with their impact on one’s life.”

I’m pretty sure Ian meant the latter definition. His first cabin of kids had a few setbacks, difficulties, and adversity for him and his lead counselor to handle.

For business sake (this is a business blog after all) let’s break that definition down further …

We know what setbacks, difficulties, and adversities are. In business we all have them. Local economic woes, street construction, your favorite line of products suddenly discounted online, a bad review on Yelp, a 20% jump in insurance costs, the landlord wanting to raise rent, a new competitor in town.

You’re never without setbacks, difficulties, or adversity.

The successful boxer rolls with the punches. The successful business “adapts … so as to better manage …” Just like the boxer, you have to anticipate the blows that are coming so that you can adapt to them and lessen the impact.

Street closures? Are you following the news, attending city council and planning meetings, or subscribing to government emails? Are you going to public hearings to not only hear what is being done, but have your voice be heard to find ways to lessen the impact these closures might have on your business?

Insurance costs? Are you working with a good business insurance agent and agency that can shop your account around to find you a better deal or work with you when rates go up to help you be aware more quickly? Are staying on top of all your expenses before they blindside you with a punch to the gut?

Landlord raising rent? Do you see your landlord as an adversary or partner? How would that change the relationship? How much sooner and with better intent would a partner inform you of a rent increase than an adversary?

Local economic woes? Are you measuring your market potential for your community by tracking national sales for your industry combined with local household income and population growth (or decline)?

Got a bad review? Are you actively monitoring social media and sites like Yelp and Google for mentions of your business? Do you have a plan in place for how you respond? Do you know the right questions to ask before you respond?

The successful business owner is rarely blindsided with a gut punch. He sees most hits coming and can roll with those punches. The key is to know that there will always be blows. You know which punches hurt the worst, too. Put a system in place to help you see those punches coming before they land directly on your business, and you’ll know how, “to adapt … to better manage or cope with their impact.”

-Phil Wrzesinski
www.PhilsForum.com

PS Two of the most profitable years in the Toy House’s 68 years of business were in 2009 during the Great Recession, and 2014 as our local economy and market was dying out. Although we took a gut punch in the fourth quarter of 2008, we saw the punches coming in 2009 and 2014 and were prepared for them. I know you already wear a few dozen hats. Being involved in city politics and tracking other numbers that affect your business might not be in your wheelhouse, but they do make a difference in how well you roll with the punches. Only you can decide how many direct hits you can absorb before you’re knocked out.

PPS Every boxer also knows the better you learn to anticipate the blows, the better you can counter-punch, too. That’s how you get ahead in boxing, in business, as a CIT at YMCA Storer Camps, and in life—by anticipating the blows, rolling with the punches, and throwing counter moves.

How to Find Out Your Business Reputation

Some of you read them. Some of you don’t. I often get asked why each blog post has a Postscript (PS) or two. Postscripts are also called “afterthoughts.” In the case of my blog, I use them to reinforce different points made in the post, without clunking up the writing. I also use them to clarify and/or sum up something I’ve said. Often the PS is an action step or an application of the idea posed by the post. Sometimes it is a humorous anecdote or story from my past experiences.

Sometimes the PS hints at the next post. That was the case yesterday.

According to Roy H. Williams, aka The Wizard of Ads, your brand is “every single interaction someone has with your business, plus how they feel about it.”

In other words, your brand is not your slogan, your color scheme, or your logo. It is the way people feel about your business. It is your reputation.

In 2005 I wanted to know what people thought and felt about Toy House. Before I could create a stronger brand, I had to know from where I was starting. To do that, I needed to do a survey. Here is what I did.

LOCAL COLLEGE STATISTICS CLASS

Image result for phone surveyI contacted a professor at Spring Arbor University who taught statistics. Fortunately I already knew him. We had met at a networking event (one more reason why you should attend those events).

I told him what I wanted to do. I had a survey. I had the questions. I just needed someone to figure out the sample size, do the calling, and compile the results. It would be a live exercise for his statistics students. I agreed that I would write a letter of recommendation for all the students who participated, and that I would host a pizza party for the students when they had the results.

The professor thought it would be a fun exercise, and put it into his lesson plan at the appropriate time.

The students did the math and figured out we would need a sample size of 400 Jackson County residents to accurately measure the entire county within an acceptable margin of error. They also devised a random way to find those 400 people using the phone book. Each of the twenty students was then tasked with getting twenty survey results back within a two-week window.

QUESTION #1

The script I gave the students came from Roy. In a class I took, he showed me how to get an accurate assessment of where Toy House stood in the minds of Jackson County residents. It also showed how I compared to other stores selling toys in the area.

When someone answered the phone, the student would say …

“Hello, my name is (____). I am a Spring Arbor University student. My statistics class is doing a survey on toy shopping habits in Jackson County. Can I ask you a couple questions?”

If they said yes, the first question was this …

“Please name all the stores you can think of that sell toys in Jackson.”

The students had a worksheet with all the possible places listed and a few blanks for some out-of-the-box thinkers. As the person named stores, the student would number them in the order they were named. After the person stopped, the student would say, “You named (list of all stores they named). Can you think of any others?” This went on until the person said they could not think of any others.

The beauty of this question is that it helps you see how much awareness people have of your existence. You also see how you compare to everyone else in your town. It was eye-opening to see what percentage of Jackson County shoppers knew we existed. The results looked like this.

  1. Toys R Us 84.1%
  2. Meijer 82.3%
  3. Walmart 69.5%
  4. Toy House 64.8%
  5. Kmart 59.1%
  6. Target 45.2%

Thirty-five percent of the population could not think of us when asked to name a store that sold toys in Jackson. That was a shocker. (So was the fact the 16% couldn’t name the iconic national brand of Toys R Us and over half the population didn’t think of Target as a place to buy toys.)

QUESTION #2

Once the first question was answered, the student would then say, “For the second part, I am going to read you a few words. From the list of stores you just gave me, I want you to tell me the first of those stores that comes to mind with each word. There is no right or wrong answer. Just blurt out the first store you think of.”

The list of words I had the students read included positive words like Affordable, Caring, Clean, Friendly, Fun, Helpful, Knowledgeable, Quality, Value, and Welcoming.

The list also included negative words like Arrogant, Cluttered, Confusing, Dark, Deceptive, Dirty, Expensive, High Pressure, Indifferent, Over-Priced, Pushy, and Rude.

The list also included one word that upon reflection could be considered either positive or negative—Cheap.

The deal here is that whoever is mentioned the most for that particular word owns that word in the minds of shoppers. That is your reputation, good or bad.

  • We owned the words Caring, Clean, Friendly, Fun, Helpful, Knowledgeable, Quality, Value and Welcoming from the positive list, and Expensive and Over-Priced from the negative list.
  • Walmart owned the words Affordable, Deceptive, Indifferent, Rude, and Cheap.
  • Kmart owned Dark and Dirty.
  • Toys R Us owned Cluttered, Confusing, High-Pressure, and Pushy.
  • Target and Meijer didn’t own a single word on the list.

(Note: in that first survey, no one owned Arrogant. We were in a virtual tie with both Walmart and Toys R Us for that word.)

The one thing I didn’t include in my list of words was all of our Core Values, but mainly because I didn’t know them in 2005 like I did in 2007. We did a second survey in 2007 adding Education and Nostalgia to the list and owned those words hands-down. The only other changes in 2007 were that Walmart tied us for Value, and we took over Arrogant.

RESULTS

There were several takeaways from these results. The first was the lack of awareness for our giant, colorful store that had been in business for 56 years in the heart of downtown Jackson. More people mentioned Walmart, yet they had only been open a couple months when this survey was done. When we did the survey again in 2007, our name recognition jumped from 64.8% to 76.0%, whereas Walmart’s only went from 69.5% to 76.5%. We were still fourth overall, but had closed the gap significantly. (TRU and Meijer held steady.)

I was okay with owning the negative words Over-Priced and Expensive. That’s a common belief of indie retailers and I expected it. I was especially okay because we also owned Value. Value and Expensive are not exclusive. Value and Over-Priced don’t go together, but for every person that thought of us as Over-Priced, there was someone else who saw the Value in our offerings. I was okay with owning Arrogant in the 2007 survey, too, since I also owned nine of the ten positive attributes.

Most importantly, we owned the things we wanted to be know for. We owned our Core Values of Helpful, Fun, Education, and Nostalgia. We owned the things we were already advertising such as Friendly, Knowledgeable, and Quality. We owned the one word that made my mom the happiest—Clean! So we knew we were on the right track with our advertising, but more importantly we were on the right track with our actions.

Advertising cannot change your reputation. It can only enhance it. Actions speak louder than words.

Now you have the blueprint for doing your own survey to find out where you stand compared to your competition. If you don’t like your results. First change your actions.

-Phil Wrzesinski
www.PhilsForum.com

PS The interesting question about doing a survey today is whether to do it online or by phone or both. Back in 2005 and 2007 most people still had landlines. Today, if you only do a phone survey with numbers generated randomly from a phone book (assuming those still exist), you’re missing out on a huge segment of the population. That will be the challenge for your statistics class to figure out. It might cost you a little more than pizza, but it will be totally worth it.

PPS One other benefit from the survey was that I had a classroom of 20 college students who now knew about our store and saw the reputation we had. That alone was worth the pizzas and a quick letter thanking them for running the survey.

If You Want to Be Known for Something …

Back in high school I had a friend who lived in a house that was hard to find. We always went to his house to play games because we could always get free pizza from Domino’s. They had their “thirty minutes or it’s free” campaign going, yet the drivers could never find his house. Thank goodness this was in the days before GPS.

In my high school days Domino’s was known in the pizza industry for fast delivery. Little Caesar’s was known for their “pizza, pizza,” two-for-the-price-of-one deal. Pizza Hut had the Pan Pizza. Everyone had their niche.

Image result for hamburglarThe burger industry was similar. Wendy’s had fresh-not-frozen (and Where’s the beef?). Burger King had flame-broiled. McDonald’s had the Hamburglar.

If you wanted to make a name for yourself in the pizza or burger industry you had to do something completely different. The more you looked for ways to differentiate, the better.

When Domino’s faltered and gave up their fast delivery guarantee, Little Caesar’s stepped in with an even faster claim—pick it up any time, it’s hot-and-ready. Little Caesar’s isn’t going to win any taste tests, but if you have a bunch of kids to feed, a twenty-dollar-bill and a trip through the drive-thru fills a lot of little bellies.

By now you know IHOP wants to be known as “International House of burgers.” They launched a clever viral campaign to highlight the fact that along with all the breakfast stuff, they also have burgers on the menu. It is getting a lot of talk, but not about the burgers. I have yet to hear one remark about the actual burgers good or bad. I have yet to hear one reason why I should try their burgers. They have done nothing so far to stand out in the burger crowd.

If you want to be known for something, you have to do something no one else is doing. 

Pizza Hut offers three different thicknesses of crusts. Little Caesar’s has pizzas ready for immediate pick-up without having to order in advance. They are doing something different.

I originally was going to title this blog “How to Stand Out in the Burger Industry” and help IHOP out. Here are some things no one is doing on a national level with hamburgers …

  • Home Delivery – why is it that pizza and Chinese food are the only foods delivered to our door regularly?
  • Free Sliders with every meal – You want to let people know you have burgers? Put a small, tasty slider on a plate and deliver it at no charge no matter what they ordered.
  • Condiment Bar – Wendy’s tried this at one time. It might be worth trying again, but with really cool and different condiments that make people talk.
  • The 24-Hour Burger – most IHOPs are already open 24 hours. Why not tout the breakfast burger? Heck, we’ve already been putting bacon and fried eggs on burgers for years, just not at eight o’clock in the morning.

Here is the lesson for you, the indie retailer. You don’t have to be known nationally for something. You only have to own it locally. The kicker here is you have to do something completely different from your competitors, preferably something they would never even think of doing.

Be the store known for…

  • Home Delivery
  • Giving away free stuff
  • Customizing things
  • Selling stuff made locally
  • Having live entertainment
  • Having classes and demos

Walmart right now is running a radio ad touting themselves as “The Best Toy Store in America.” Just like IHOb, this campaign is gonna flop big time.

You are judged not by what you say, but by what you do.

No one believes Walmart is the best toy store right now, and unless Walmart does something other than have the typical messy, unorganized, poorly-stocked, warehouse-shelved, no-one-to-help-you toy department they currently offer, no one is going to change their minds because of a radio ad. When Walmart opened in Jackson in 2005, the newspaper reporter asked me how I was going to compete with them. I said …

“With free gift-wrapping, layaway services, home delivery, tons of toy demos, weekly events, triple the toy selection, and a friendly, knowledgeable staff on hand to answer all your questions, the better question is, ‘How is Walmart going to compete with us?’ “

Don’t just do it. Be known for it.

-Phil Wrzesinski
www.PhilsForum.com

PS Yes, I was a little arrogant in my answer. Fortunately, thanks to a survey I did shortly after Walmart opened, I reaffirmed what I already believed. In that survey we owned the words Clean, Friendly, Knowledgeable, Caring, Fun, Helpful, Welcoming, Quality, Value, Over-Priced and Expensive. Walmart owned the words Affordable, Deceptive, Indifferent, Rude, and Cheap. Kmart owned Dark and Dirty. Toys R Us owned Cluttered, Confusing, High-Pressure, and Pushy. Target and Meijer didn’t own a single word on the list. What words do you own?

What Not to Change

By now you’ve heard the buzz about the International House of Pancakes and their big announcement. They are changing their name from IHOP to IHOb. They made the announcement and asked us to guess what the “b” meant.

The first answer by virtually everyone was “breakfast.”

Image result for ihob logoI could wrap my head around that. I love their Colorado Omelette. They have waffles, French Toast, and crepes too. Pancakes are out of favor because of all the low carb diets. That would make sense.

Heck, I could even have seen it if this was just a marketing gimmick and the “b” was going to stand for bacon. Bacon is trendy and popular right now.

But then in a “Hey, New Coke, hold my beer,” moment they announced the “b” stands for “burgers.” 

Burgers? Really? That was your big marketing gimmick?

First, let me reassure you that they are not actually changing their name. They are doing some temporary signs and making a big stink about it through the media. In one way, it has worked. We’re all talking about them. In another way, they have definitely brought attention to the fact they have burgers on their menu (and have for some time).

But here’s something worth thinking about when it comes to branding. The vast majority of people were going with either breakfast or bacon because that is what the restaurant is known for. That is IHOP’s reputation, which by extension is the restaurant’s brand. No matter how many viral campaigns like this, they will neither change that perception nor ever be known as the burger joint. As much as this campaign has gone viral, it isn’t likely to get too many new customers going to IHOP that weren’t going already. In fact, it might drive some customers away who think they have stopped selling pancakes.

Not only was this campaign confusing to a lot of people, trying to be known as the burger joint is probably the worst arena to enter. It is already crowded with all the fast food joints, the Red Robins, the Inn & Outs, and a slew of other players. IHOP owns the pancake title. Hands down. They own it better than Coke owns Pepsi. Yet Coke tried the exact same tactic with New Coke and watched it become the poster child for failed marketing campaigns.

I know some of why they did it. It is tough being the frontrunner. It is tough getting people excited about your pancakes when you already own the category (and pancakes are not quite as popular as before). The people at IHOP saw this campaign as a brand-extension, a way to be known for more than pancakes. Unfortunately, there was a better way to do that.

Saying that you are known for burgers when you aren’t won’t work. Simply saying your burgers are great won’t change anyone’s mind, either. Having taste-tests won’t move the needle much (or Pepsi would have overtaken Coke during the Pepsi Challenge campaign). But asking your tribe, the people who already love IHOP for your breakfasts, to try a burger next time they are in, might get a few people to switch. Speaking to the people who love IHOPs for being open 24 hours (in certain locations) and reminding them you have more than breakfast might get a few people to try the burgers. Offering small sliders as a side with the pancakes (there’s a little surprise and delight for you), would be far more effective in getting burgers into everyone’s minds.

Then if your burgers really are good, people will talk. That’s the kind of talk that moves the needle. Right now people like me are talking in the wrong direction.

Right now the talk isn’t even about whether the burgers are any good or not. Most of the talk is about what the heck were they thinking? That doesn’t help the brand one bit.

The lesson in all this is simple. If you are known for something already, don’t confuse people by trying to be known for something else. Instead embrace it, amplify it, and become it so fully that no one will know anyone else but you in that category.

There is only one house of pancakes.

There is only one waffle house.

There are dozens of burger and pizza joints.

When you can be the only one, be the only one, and be happy with that.

-Phil Wrzesinski
www.PhilsForum.com

PS Yes, there are thousands of great breakfast restaurants including some regional chains and plenty of local joints, but in the national scheme of things, no matter where you go, if someone is asked to name a pancake joint, IHOP will be at or near the top of that list. That’s the power of their brand and the source around which the rest of the chain revolves. Move away from that and the brand will falter.

PPS Marketing and advertising cannot change your reputation for the better. Only actions will do that. Confusing people or trying to get them to believe something other than what they already believe hurts the brand more than it helps because it erodes more confidence away from what people already believe. Telling people their old Coke they’ve drunk for years doesn’t taste good (even though it was the best seller by a wide margin) wasn’t a smart move. This move by IHOP stands right beside that.

PPPS You’ve heard it said there is no such thing as bad PR. That statement is wrong. Don’t believe it.

Getting People to Talk – Part 3 (Domino’s for the Win!)

A new restaurant opens in town. Fine dining. The early reviews are good. Everyone is talking about it. Expensive, but worth it. The desserts are extraordinary. You call up some friends and the six of you make a reservation. While you’re waiting for your meal you see desserts going past. It looks like every table has ordered something scrumptious. You look at the menu and your mouth begins to water. Then you look at the prices and the six of you decide maybe you’ll share a couple of them instead of everyone buying one.

The meal is done and you’ve picked up the dessert menu one more time to choose a couple to share when your waiter walks over and says, “You guys have been such a fun table, I’d like to buy everyone a dessert on me.”

Would you be talking afterward about a meal like that? Of course you would! For the price of some sugar and flour (that the restaurant has already baked into the price of the meal), the restaurant is buying word-of-mouth through Generosity.

The key here is that they did not advertise it, it was given with sincerity, it had value, and it was unexpected. When you can give something away like that, people will talk.

Yesterday my son pointed out to me something that fits that criteria. He told me Domino’s Pizza is filling potholes. I had to Google it right away.

Image result for domino's pothole
Image from Washington Post

Domino’s Pizza is paying communities real money for their crews to go out and fill potholes. All the community has to do is take a few cellphone pics of the crew and spray chalk the Domino’s logo with the phrase, “Oh yes we did” onto the newly filled pothole when they’re done.

The city manager of Milford, Delaware explains how they gave him $5,000 to fill potholes in his town. With a budget of only $30,000 for fixing potholes to begin, an extra $5,000 goes a long way. The spray chalk on the logo might seem offensive to some, especially if you don’t like Domino’s Pizza, but the talk they are generating from that money is unbelievable.

Yes, it was unexpected. Yes, it brought value. Yes, it was done without advertising. You can argue sincerity all you want, but the comment from Kate Trumbull, VP of Advertising for Domino’s is spot-on …

“This idea came from when you hit a pothole and you have a pizza in your front seat. It’s kind of a dramatic moment and dials up the fear factor that something would happen to your delicious pizza,” said Trumbull. “It came down to how we’re so passionate about pizza – and every single piece of the experience.” (from Yahoo)

Here is the clincher. They spent $5,000. Their logo was washed away with the first rain. The town of Milford, DE was just under 10,000 people in 2010. You can look at it as only 50 cents to reach everyone in that city. You can look at it as a way to make the roads better for their delivery vehicles. But the best way to look at it is that the city manager wrote an article in the Washington Post about it. The news stations all did stories about it. People who saw it on the road all told their friends about it.

The word-of-mouth—even from the people who hated it—is through the roof! Everyone is talking!

Even the haters are probably acknowledging that the potholes needed filling. Their complaint is likely just about the commercialization of it and where that may lead.

I give Domino’s a hearty win for this campaign. It is the kind of creativity that helps a campaign budget reach far beyond the money you spend. That’s the power of Generosity.

Four elements to make Generosity work for you:

  • Don’t advertise it
  • Give freely from the heart
  • Give something of value
  • Give something unexpected

You don’t have to pave the roads to get people to talk, but I’m sure you can find something of value you can give away for free.

-Phil Wrzesinski
www.PhilsForum.com

PS We gave away free helium balloons all day, every day. It helped parents get crying children out of the store, and helped them come in more often for “looking trips”. When helium balloons became expected, I brought in an art teacher to teach my staff how to draw doodle animals on the balloons. We never got the kind of talk Domino’s did, but people still talked, and that’s all that mattered.

PPS No, if you don’t like Domino’s Pizza, it probably won’t make you rush out and buy a pie. But it just might make someone on the fence, buy a “thank-you pie” just for fixing that pothole at the end of their street. It also has a long-term effect of making you feel just a little better about Domino’s as a company, and that ripple effect, while hard to measure, will be huge. Now, if they double-down and add some generosity to their product when they deliver it, they’ll knock it out of the park.

You’re Going to Offend Someone

I heard someone argue that Memorial Day Weekend shouldn’t be about shopping and big sales at the mall. We need to be properly honoring our fallen soldiers. I also heard someone make the same argument about backyard BBQs and trips to the lake/ocean/river/woods. It isn’t about partying, it is about properly honoring our fallen soldiers. It begs the question … What is “properly honoring our fallen soldiers?” You better learn or you will likely offend someone.

Publix has suspended support for an NRA-favoring political candidate after “die-in” protests in their stores. Pretty soon you will see a backlash against Publix from NRA members for withdrawing that support. Either way, someone is going to hate them.

To some people, if you don’t automatically hate President Trump, then you’re a racist, homophobic, misogynistic, religious nut-job. If you even hint at defending any of the President’s actions (or decry any of the President’s actions), you’re going to have haters painting an unfavorable picture of you (whether true or not.)

Some people are offended by the football players who take a knee out of respect for the flag but to protest injustice in America. Others are offended by the NFL for creating a rule demanding they stand to “show respect for the flag.” The camps are divided and no posting of memes is going to change anyone’s mind. Both sides believe they are right and the other is wrong.

The tough part is that in many of these cases you are being forced to pick a side as if the world was black/white and either/or. No matter which side you choose, someone is going to hate you. Even if you don’t choose, your actions will cause someone to choose your side for you. People are looking for new ways to be offended. Tolerance is missing. Nuance is gone. Thoughtful discussion is rare.

Image result for pendulum book
Pendulum by Roy H. Williams and Michael R. Drew

How do you, as a business, navigate this world of hatred, intolerance, black/white, either/or?

Two months ago I wrote a post about when to take a political stand. The actions and attitudes since then have made it likely that whether you take a political stand or not, someone is going to assign a political stand to you for an action they perceive.

Since you’re going to offend someone anyway, you might as well do it consciously. 

No, I don’t mean pick a cause and go out there and piss a bunch of people off. What I mean is, become even more true to your Core Values. Amplify the Values and Beliefs you already have in everything you do.

If one of your Core Values is Helpfulness, add more ways to help your customers. If one of your Core Values is Nostalgia, add more nostalgic displays and tell more nostalgic stories. If one of your Core Values is Fun, make sure every single part of your business is fun down to the experience in the bathroom and the answer on your answering machine. If one of your Core Values is Education, add new educational signs and new instructional classes.

Evaluate everything in your business from the signs on the front door to the tagline on your receipt to make sure they accurately and boldly show your Values and Beliefs. The more consistent and observable your Values, the better.

  • First, it is easier to be consistent with your Values than try to be someone you are not. People will see right through you. The more consistent your actions are to your beliefs, the more you boost up the visibility of what you believe.
  • Second, the more obvious you are about what you believe and value, the less likely someone can paint you into a corner you don’t wish to be.
  • Third, yes, you will offend people, but primarily only people who don’t share your Values. That’s okay. Your business is at its best when you strongly attract the people who share your Values. Don’t worry about everyone else.
  • Fourth, the more obvious you are, the more likely you will find those people who share your Values. They are much more fun to work with anyway.

Not sure exactly what are your Core Values? Here is a worksheet to help you figure it out.

I’m working on a new resource, too, one that will help you write your Belief Statements. In the meantime, here is an example of I Believe … statements from Toy House. Here is one from LauraJoyWarrior. Here is one from PhilsForum to help you get some ideas flowing.

-Phil Wrzesinski
www.PhilsForum.com

PS The stronger a magnet attracts, the stronger that same magnet repels. The more strongly you try to attract people who share your Values and Beliefs, the more strongly you will offend those who don’t share your Values and Beliefs. That’s okay. There are more than enough people who believe what you believe for you to have a rock solid business. Many of them just don’t know about you yet.

PPS This whole black/white, either/or, I’m offended mentality is going to take a few years to disappear. It was perfectly predicted in the book Pendulum by Roy H. Williams and Michael R. Drew. They predict a lot of other stuff in that book, some that has already come true (including exactly how Donald Trump won the election), and some that won’t be true for another ten, twenty, or forty years. It is a fascinating read and an eye-opener to what is happening around you.

PPPS To show you how easy it is for people to be offended, I saw on social media one person upset because another person thanked a veteran for their service. “Memorial Day is to honor fallen veterans. Veterans Day is to honor the living ones. Get it right!” 

Making the Most of a Street Event

Tonight the classic cars cruise into downtown Jackson. The fourth Friday of every month May through September is a Cruise-In. Most every downtown in America has some type of event that closes the streets and draws a lot of traffic. Many malls have special events also designed to draw new traffic.

The key phrase in there is “new traffic.”

DDA’s, Chambers, and other groups organize and host these events for three reasons:

  • As a fundraiser
  • To draw new traffic to the area
  • To make the area seem like a hip and fun place to be
Market sign by artist Laura Joy Warrior

That first reason explains why these events are not always retailer-friendly or in the best interest of you, the downtown business owner. Sure, you might be a downtown restaurant, but they brought in food trucks. Sure you might be a downtown gift shop but they brought in crafter booths. Sure, you might be an expensive luxury store but they brought in a middle income crowd (or vice versa). Those things are bound to happen.

But those other two reasons more than offset the problems of the first if you embrace the event and turn it into farming for new customers.

There are two types of new customers you’ll meet at an event like this:

  • People who don’t know you
  • People who think they know you

THEY DON’T KNOW YOU

That first group includes out-of-towners, newcomers to town, and people you haven’t yet reached with your marketing efforts. What do they need to know about you to be enticed to come back? What special services or products do you offer that would make someone want to drive to visit you? (Note: if all you can say is, “we’re friendly,” that isn’t enough to make people drive.)

You need to highlight what makes you unique, special and worthwhile.

  • Have large signs outside your business that are easily readable telling people about your unique brands they won’t find elsewhere.
  • Have large signs outside your business telling people of special services they won’t find at your competitors.
  • Put a table outside with the kind of products on it that make people want to cross the street to see.
  • Put a table outside with the kind of products on it that make people want to drag their friends over to see.

Put your best, most friendly people out front. Make sure they are fired up about the event and ready to meet new people. Make sure they are well-versed in what makes your store special. Make sure they understand how critical is their mission to make a positive first impression. (Notice how I didn’t say how critical it is to make a sale? Sales are secondary to impressions during an event.)

THEY THINK THEY KNOW YOU

The second group has already formed an opinion (usually negative) about you. Either they’ve previously had a bad experience, or someone they know had a bad experience, or it just might be a perception that because you are an indie business you have to be more expensive.

With this group you have to change their minds if you want to turn them into customers. You have to begin building trust with those people. One of the easiest ways is to use the concept of FREE. It doesn’t have to be FREE product, but just some giving of your time and energy away for free.

  • If you are a jewelry store, for instance, you could put out a sandwich board that says “FREE RING CLEANING WHILE YOU WAIT!” Get people in the door, clean and polish their rings while they look at all the fancy display cases, and make them feel more comfortable with your business.
  • If you are a shoe store, have a free gait analysis or foot sizing. Show them you really know your stuff when it comes to getting the proper footwear for them.
  • If you are a hardware store, have a power tools demonstration. Show people how to safely use different saws, drills, or yard equipment.
  • If you are a toy store have a make-and-take demo. Or even easier, give away free helium balloons from inside your store. When kids see other kids with helium balloons, parents will ask where they got those balloons.
  • If you are a restaurant, set up an appetizer or quick-bite stand outside. Serve only your best stuff. Give away tastes for free or a stupidly small fee. Set up some outside seating, too, for people who want to hang out and watch the other people at the event. (If it is a family-friendly event, put out a special family-friendly menu.)
  • If you are a clothing store, have a fashion show in front of your store. (Use local celebrities or kids from the high school sports teams as your models for added excitement.)
  • If you are a comic book store, have a comic swap, a drawing contest, or a photo op with one of your best cardboard cutouts.

Be creative, understanding that you are trying to make a positive first impression on a crowd of “new traffic.”

WHAT NOT TO DO

  • Don’t be closed. No matter what your normal hours, be open for the event. This will be the cheapest form of marketing and advertising you will get all year because the event organizers are paying all the money to draw the crowd.
  • Don’t put out a table of just your clearance stuff. Your tired, worn-out, dead merchandise is not the best first impression you can make.
  • Don’t be open, but do nothing. More people switch from their favorite stores because of perceived apathy than any other reason.
  • Don’t give away coupons and discounts just to try to make sales during the event. You’ll only attract a small handful of transactional customers who won’t spend much, and likely won’t be back until the next offer.

If you are going to give away anything to get customers in the store, give out gift certificates that are only redeemable after the event. If you give out gift certificates redeemable during the event, people will only spend the minimum. If you give them out to be used later, not as many will be redeemed, but the ones that are redeemed will be for a much higher ticket, and you’ll have a much better chance of winning them over with your excellent customer service.  People at an event are not necessarily there to shop. Get them back in the store when they are ready to shop and the promo will be far more productive.

FOOD

A lot of businesses will give away free food like popcorn, bottled water, or cookies during an event to draw customers through the door. It is effective for getting people in the store, but you need to do some of the other stuff listed above to get them to want to come back.

Remember that these events are not about today’s sales. They are marketing events designed to farm for new customers for future sales. Make that awesome first impression and the events will pay off in the long run.

-Phil Wrzesinski
www.PhilsForum.com

PS The worst is when the event is taking place downtown, but not on your street. The event may only physically close one block, but perceptually it closes all of downtown to your regular traffic. Unfortunately, since you aren’t in the one block, you don’t get the benefit of the new traffic. If this is your situation, you have two options. First, petition the organizers to have a free booth at the event. Go mobile and make it the kind of booth that drives people to your booth and also to your store. Second, if you can’t have a booth, send people up and down the street with tons of helium balloons and gift certificates that encourage the event attendees to visit you later.

So You Got a Bad Review?

“You are not a one hundred dollar bill. Not everyone is going to like you.” -Meg Cabot

If you don’t already have a negative review online about your business, either you’re still too new to have any reviews or you just haven’t found where they posted it. No matter how nice you are, no matter how hard you try, no matter how much training you do, someone somewhere is going to have a beef with you and post it online for the whole world to see.

Image result for hundred dollar billThe big chains get them daily by the hundreds. If I told you those soulless corporations didn’t care, you’d believe me. They do care, but not nearly as much as you do when someone writes something bad about you.

To you, a negative review is like a kick in the gut. It is a dagger to the heart. You read it over and over, fretting about what you could have done differently. You worry about it, lose sleep over it, and turn a few more hairs gray. You’re ready to fire staff members and change everything you’ve done. At the very least you’ve gone out back behind the building where no one can hear you and let a few choice words fly.

Before you start drinking heavily and contemplating a mass firing of your team while writing a nasty reply to the reviewer, STOP!

Bad reviews are part of the game of being a retailer. How you respond to them is part of your brand image and marketing. Before flying off the handle with a criticism of the reviewer, stop and take a deep breath. In fact, the best thing you can do with a bad review is not respond right away while you’re still emotional. Instead take a moment to review the review.

Ask these questions internally …

  • Was it an attack on an employee and what he or she did? If so, talk to the employee and make sure they know the right thing to do. (Don’t accuse them of doing the wrong thing, just focus on doing the right thing in the future.)
  • Was it an attack on a policy you have and how it was enforced? Take a look at the policy and see whether it needs changing, it needs flexibility, or it just is what it is and there is nothing you can do.
  • Was it a misunderstanding between the reviewer and what your staff meant to say/do? See how you can eliminate this misunderstanding in the future.
  • Was it a legitimate complaint that needs a follow-up? See if you can contact the reviewer individually and settle the problem.
  • Was it just completely unfounded and patently false? (See below)

Be honest in your answers to these questions. Often a negative review is a legitimate complaint about a policy you have that might be more business-friendly and less customer-friendly. It might also be exactly what you needed so that you knew what your staff was doing behind your back, and how certain team members were treating your customers when you weren’t around.

If you respond to a negative review (and that is a huge IF), you should only do so for one reason—to thank the person for their review and apologize for their experience.

People are going to read your bad reviews. More importantly, they are going to read how you responded to those reviews. If all you do is get defensive and try to combat the reviewer, everyone else will believe that you’re hostile and not open to suggestions. If all you do is stoop to the level of the reviewer, you’re no better than them.

Instead say something like, “Thank you for making us aware of [the situation.] I am sorry that you had such an experience. The staff and I have discussed this at length to make sure we don’t have this problem again. We hope that you will give us the opportunity to serve you in the future.”

You don’t have to admit there was a problem. (Most often, negative reviews are based on misunderstandings.) You only have to own up to the fact that a customer, whether by her own actions or yours, had a bad experience in your store. “I’m sorry,” goes a long way to healing that experience and making others believe you are a caring company.

Most importantly, when you respond like this, the other people reading the review will see that you responded and apologized and took steps to correct the problem. That not only reassures them that they won’t have the same problem if they visit your store, but also that you are willing to listen to customers and put their needs first. That perception is what wins hearts and loyalty.

THE OUTRAGEOUS NEGATIVE REVIEW

You’ll get a bad review from time to time that has no basis in reality. It is simply bashing you for no reason or a made-up reason. Those don’t deserve a response. Leave them alone. The people that write these kinds of reviews probably won’t respond, even if you do try to engage. If they do respond, someone willing to write something that false will continue to write BS so you’ll never win. Either report them, block them, or ignore them. Don’t ever try to engage with them.

Most people who read reviews online will do like the judges in certain sporting events. They’ll throw out the best and worst reviews and read all the ones in-between.

There is only one response to those completely unfounded, totally false, negative reviews. Simply say, “Thank you for this review. We will look into it.” The other readers will see that you take all reviews seriously, and that is far more important than getting into a shouting match, being defensive, or calling someone out for being a loon.

“You are not a one hundred dollar bill. Not everyone is going to like you.” -Meg Cabot

Negative reviews, like credit card fees, are part of the cost of doing business. Don’t take them personally. Don’t attack the reviewer. Don’t go on the defensive. Do answer a few questions internally and see if there are steps you can take to reduce these types of reviews in the future.

If you make your policies customer-friendly, your staff highly trained, and your store an experience of wonder and delight, those negative reviews will be heavily outweighed by the positive ones.

-Phil Wrzesinski
www.PhilsForum.com

PS Sometimes your policy is the way it is for reasons beyond your control. We got a negative review for not taking back a used breast pump. Because of bodily fluids, we weren’t allowed to take it back. Occasionally you’ll have something like that. A short, simple, it-is-out-of-our-control explanation is okay in a situation like that. Otherwise, take the high road Every. Single. Time. Period. Period. Period. Other people are more concerned with your response than with the actual review, and what they think is all that matters.

PPS If someone has a legitimate complaint, see if you can solve it offline. Once solved, go back to the review (if they haven’t taken it down) and thank them for the opportunity to work with them to solve the problem. To the people reading the reviews, this is sometimes more powerful than having zero negative reviews. The average person knows you aren’t a one hundred dollar bill, too.