Posts Tagged ‘brand’

Reward your customers and save your reputation, the O2 way

Wednesday, June 10th, 2009
Apple's iPhone 3GS. New customers have better deals than O2's loyal customers. This is wrong.

Apple

Britain is a country with little focus on customer care.  In fact for many UK businesses rewarding customers for their spend and loyalty appears to be an after thought.  Rarely do companies invest in their customers so to get them to do the ‘word-of-mouth’ sale on their behalf, which as we know is the best endorsement and way to get new customers in.

Just look at UK mobile phone operator O2, which yesterday released details of it’s pricing policy for the Apple’s much anticipated iPhone 3GS, over which it has exclusive UK rights.  The sting wasn’t the 18-month fee of between £96 and £274 depending on your tariff, but the cost for current customers who signed up for the minimum term this time last year.  Existing customers were told that they would have to pay for the remaining terms of their existing iPhone 3G contracts, which could be anything over £150.  All very different to when O2 offered a free upgrade from the first iPhone to the current hand-set.

You would have thought that pricing policy for such a desirable product would have been developed whereby existing customers aren’t made to feel hostage.  In fact, the sweets have been offered to new customers while existing ones are being ignored.  A big mistake given that many O2 iPhone users have turned against the company, complaining not just about its pricing policy but it’s lamentable 3G nationwide coverage, to name but a few points.

You wonder why the company didn’t think of empowering its customers with new models so to reward them and encourage them to further promote the company and brand to others.  Blogs though are being written picking on all of O2s issues, working to dissuade customers from switching to a company that cares little for their users.

The #O2fail hashtag and Twitition on Twitter have over 2100 people signed-up.  And the blogosphere is certainly working hard to knock O2 where it hurts.  The media is also running stories, with The Daily Telegraph and Sky News highlighting the concerns from loyal customers.

As it stands and having set a populist precedent with the free upgrade between the first and second generation iPhone O2 have a lot to do to stop the steady stream of complains.  It takes a lot to build a reputation and it looks like they’ve forgotten the golden rule of ‘looking after our customers’ first.

How not to sign up a brand ambassador

Wednesday, March 25th, 2009

Bookmakers Better Bet have signed former Arsenal player Paul Merson as their new Brand Ambassador.  An interesting choice given that Merse claimed some time ago to have lost £7 million on gambling, which led to him being declared bankrupt in 2007.

So why appoint a self-confessed [former] gambling addict as the face of a bookies?  Surely appointing Merson is like appointing La Winehouse as the brand ambassador for the Colombian Tourist Board.

Since those dark days of his, Merson has been a regular on Sky Sports News as a pundit on the Gillette Soccer Saturday show.  So I guess that must have been the clincher for Better Bet; sign-up a pundit that regulars down the pub can recognise and your in the money.  Because I am sure that many people would want to place a bet after seeing Merse, after all, what could go wrong with one little wager, eh?

Brand Ambassadors after all are by nature people that can help promote and advertise a product, company or brand.  They have an element of celebrity that can help the company promote itself and its products in a controlled manner.  They become the human face of the organisation, a person that clients and importantly potential clients can associate themselves with and can help drive sales.  Ambassadors have to be asprational characters that can help get the clients messages through.

Just look at how David Beckham helped Gillette increase sales even with all the gossip that was surrounding him at the time.  Sales of Gillette products in the Far East, where there’s still an obsession with all things Beckham, broke records.  The deal was put together by Hill & Knowlton’s London office and while it was claimed to be one the biggest sponsorship deals the client was pleased with the results of their association with a person that even today is making headlines wherever his career takes him.

Meanwhile, in a statement Better Bet said: “The customers love Paul and can relate to him.”  Before adding: “I don’t know about his gambling problem in the past. He doesn’t hold an account with us or bet with us.”  It’s a kind of bearing your head in the sand after the horse has bolted (at the 3.15 at Lingfield no doubt.  Ed.) comment.

When researching candidates for the position of Brand Ambassador the first thing an in-house PR team or agency must do is analyse how candidates will affect the brand and reputation of their client or employer.  It appears that this hasn’t been done.

Sports sponsorship is an import tool in the PR armoury, especially in the US.  Get it wrong and you damage your brand.  Get it right and everybody wants a piece of the stardust that your ambassador brings to the company.

This is one to watch!

And if you want an alternative view on the deal then read ‘Celebrity Sell Out’s Altenative View of the Merson Campaign.’

***UPDATE***

Today, 26 March 2009, Betting firm Better have annouced that they have dropped their brand ambassador Paul Merson from the advertising campaign due to the large number of complaints they’ve received.  I wonder what they’ll be saying to their PRs?  A serious and harsh word if I were them.

More here: “Betting firm drops Merson from ad campaign.

Web 2.0 grows up – how social media can help business

Sunday, February 1st, 2009
Social Media - bringing people together

Social Media - bringing people together

Social media appears to be growing up.  The Financial Times ran a special report on Digital Business this week with a lead headline that said it all, “Business starts to take Web 2.0 tools seriously”.  Jessica Twentyman’s article highlighted how, “far from being frivolous distractions, social networking tools can help streamline processes”.

Certainly social media has had an image problem since it was born.  Days didn’t go by without reports of people being caught out and embarrassed by what people posted on YouTube, Facebook, Bebo and MySpace.  Naturally this only tarnished and held back the potential of social media amongst business decision makers who had the power to harness this new form of communication.  Some employers went as far as banning staff from using social media tools in and out of office time.  Their concern was that what their employees got up to out of office hours could damage the reputation and image of their business. I know of one top law firm that has banned employees from using social sites.

But while some businesses were paranoid in the early days about the damage to their reputation by the out-of-office activities of their employees others were busy finding ways to use social media to further develop their brands.  These businesses were keen to enter into a dialogue with the public, working to make them customers.  And this is not an easy exercise as the general public is more cynical than ever before.

Rightly so, business wants to see how “Enterprise 2.0 could deliver real business benefits”.  Translating this corporate-speak into plain English, this means finding how social media can help increase sales.

But there is another cultural problem, currently too many companies in Britain and around the world still see the internet as an add-on to their business models.  Stubborn scepticism amongst businesses leaders, who do not understand the purpose or reason for entering into a dialogue with the public, prevents them for investing into this not so new communication tool and channel.

The equally sad truth is that too many large communications consultancies also see social media as an add-on to the communications plans that they develop for clients.  I have on too many occasions the “we’ll develop a Facebook page for you” only to see nothing new or engaging.  Equally, the blogs that have developed for clients lack real dialogue between the business and the consumer, let it be b2b or b2c.

At a recent P2PR meet in London a number of us agreed that there is a lack of upward education from communications consultancies to clients about the potential of social media.  Having Facebook, YouTube or MySpace pages just isn’t enough.  Even setting up a Twitter account doesn’t make the difference while these are add-ons to clients communication strategies and campaigns.

Social media is about listening to the public and entering into a dialogue with them.  And these dialogues have to be regular, refreshing and rewarding.  It is about making the client a friend of the consumer and working to helping them become a close friend, who celebrates with you the relationship that you have with them.  And how many of us hate it when we don’t hear from friends for some time.  The same applies to social media in business, dialogues have to be constant and creative, bringing in your customers into the business and making them feel part of the experience.  This is how you develop loyalty, or, saying it in corporate-speak ‘brand-loyalty’, which is what all businesses strive for.

Social media is changing.  It is growing up and it needs to be at the centre of communications planning, to develop the brand and protect the company.  This obviously has a cost, but the rewards are for the long-term. Businesses decision makers might think that they can only invest in social media if the metrics tell them that their interaction with clients leads to increase sales, the thinking that has driven adverting for decades.  Well, social media can be measured and communications consultancies can no longer get away with not offering this service to clients.

Wired's front cover

Wired

And as social media grows up, we should be aware that the technology is moving our communication thinking forward, ahead of the game.  While in Hong Kong in January this year I picked up a copy of Wired magazine, which lead with “Inside the GPS Revolution” an insight into how mobile smart phone technology is transforming how users “make connections and interact with the world.”  And these interactions are not just with friends but with businesses as well.  One of their reviews was for Shop-Savvy, a tool that will help you scan a barcode with a phonecam ad tells you how much the product not just costs online but in shops nearby.  It can also pull up reviews to make sure you are not skimping a little too much.

The technology is here.  It is driving business decision-making and driving pricing.  Shouldn’t we be bringing in social media into the centre of communications planning?  Is having a branded Facebook page enough?

Adidas's Facebook page

Adidas

I’ll tell you something, I’m on Facebook and I am a fan of Adidas.  I signed up to their Facebook page some time ago, hoping to get updates from the company.  I didn’t get anything.  There was little dialogue from them, until I got a message telling me how they’d had a ‘secret party and I could see the ‘cool’ pictures of what looked like a celebrity bash somewhere.  Erm, I signed up online so that I could be one of the first.  That message they sent didn’t bring me in to the brand and it did not make me feel closer.  It was not the social media experience that consumers should be subjected to.  Adidas, in my mind, doesn’t get it right.  Will the rest of business understand it?

It is up to us PR and communications consultants to champion social media.  Communication helps and in these challenging times we have to be creative and use new tools for us and the benefit of our clients.

about me

Hello. I'm Julio Romo, a London-based PR, communications and social media consultant. I am also a freelance journalist and advise clients across a range of sectors how to get their message across through traditional and digital media channels. 

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