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Archives for 2009

Has Skittles Hijacked Social Media?

If you like the Skittles candies, with their strong, sour-and-sweet tastes, colorful and cool colors and the way they melt in your mouth, then you’re going to love this new idea that they’ve done of late.

Or, maybe you won’t.

Now, when you go to the Skittles home page, you will get a Twitter-type page and not your expectant custom site. No, don’t hit the back button. That may be an inconvenience as it will simply take you to the Wikipedia page for the Skittles write-up. Yes, Skittles is everywhere!  Still love it?

While I am just too impressed that they have tapped in to social networking this way, I am also a little taken aback at the way they’ve done it. In other words, I wish I could have been a little more prepared at what I got when I went to their site. I go Twittering every day, so when I went to the Skittles site, I thought I had inadvertently typed in the wrong address. No, I had simply been Skittled.

skittles

So, my next question is, what is their point? Do they want to promote the Twitter brand? Do they want people Twittering…or Skittle-ing? Do they even want traffickers talking about their brand, their site, the makeover or what? I’m sure that I, along with many other of my fellow bloggers, am helping them further their branding efforts and bring even more attention to their site. But, what is their desired end result?

Often in social media, you want to get people simply talking about you. Unlike in many public relations processes, in social media all attention is good attention, whether it’s positive or otherwise. What will happen with this idea is that people will become curious and will go to the site to see what all of the ruckus is about. People will be talking and Twittering/Skittling, linking and connecting. Social networking will be a glorious thing for them. And no doubt that Skittles has maybe hired a few professional online social networkers to get the party started. Whichever way they’ve decided to go with it, things will be buzzing for Skittles.

How do you feel about the new home page for Skittles? Do you think it will last a while or will people tire of it? Or will it ignite and spark the creativity in other companies and perhaps they too will start Twittering bands on their own home pages? Whatever their desired result is, most of it has definitely been achieved today, even with my post. Lots of attention there for them. Good job Skittles!

Investor Relations and Executive Pay

In Washington, politicians are making hay with the public’s perception that greedy CEOs and executives were asleep at the switch as their companies circled the drain.

So far, the only concrete action taken has been the limit placed on executive compensation at financial institutions that receive Federal bailout money under the TARP program.  But, that doesn’t mean that more noise isn’t being made in more quarters than ever before.

The problem, of course, is perception.  Most people, and even most investors, have never risen into the executive ranks, so they have no idea what the view looks like from there.  Even fewer have ever been privy to the inner workings of a corporate board.  It is no wonder, then that from the outside, it looks like a seat on the Board of Directors is a free ride and that everyone from CEOs and CFOs to junior executives are grossly overpaid fat cats who smoke cigars and laugh inside backrooms as thousands of “real workers” are laid off.

Investor Relations and the Perception of Executive Pay

While it is undoubtedly too much to ask for any IR department to turn around the public perception of CEO and Board member pay, there is still much good that can be done.

Even before the current economic crisis much of the population viewed the high compensation of CEOs and others as nothing more than undeserved mega-salaries that were rubber stamped by do-nothing Boards of Directors who have seemingly never in the history of business found any reason not to award substantial performance bonuses regardless of how far the company had sunk.  Investors have given more benefit to company executives under the auspices that if the company is well managed and it (or more specifically its stock) performs well, then who cares how much the guy in the big office makes.  Even this goodwill has worn thin among recent revelations.

How then, can something as simple as an IR website make a difference?

First, ask this simple question.  Where on the company website can someone find information regarding executive compensation?

How many clicks does it take to get there from the IR homepage?  What text is displayed on those clicks?  How many people out of 100 would know to look under those clicks.

Second, ask this question.  Regardless of where the information exists, does it say anything other than the equivalent of the board will set performance goals and then set compensation based on how well those goals are met?

The answer to the first question is exactly why people, both investors and the general public, think that companies are hiding something when it comes to executive pay.  When it comes to how executives are paid and evaluated, it is often easier to find out the percentage change in the amount of depreciation written off against a three-year old take-over target’s assets in regards to… Well, you get the picture.

The answer to the second question is why investors, politicians, and the public think that executive pay is a blank check passed out without regard to any factors whatsoever.

A Better IR Approach

While specific performance objectives and actual target figures are often confidential for a variety of reasons, it does not follow that no information at all can be offered to investors who want to know just how the management of the company they are potentially interested in investing in are being evaluated and paid.

First, offer a better path to information regarding executive pay.  Yes, you know, as do many sophisticated investors, that such information is frequently listed under Corporate Governance, or something similar.  However, a link from inside the main IR areas can do wonders to decrease the perception that this data is deliberately being hidden.

Second, consider plain language explanations regarding certain compensation features, especially bonuses.

Perhaps nothing rankles Main Street, and their representatives in Congress more than seeing an executive at a struggling company receiving fat performance based awards.  The problem often stems from a misunderstanding that all performance metrics are based on “this year” or some other time frame.  An executive who joined the company 7 years ago with substantial bonuses for growing earnings by 10% might still be reaping those deserved awards despite the current negative trend, which can still easily be above where the company was 7 years ago.

Simply breaking out a general category of compensation among such broad areas as long-term performance awards, previously met objectives, or something similar can begin to clue in investors that these are not phony bonuses and awards.  As an added bonus, it reminds investors that the current management team has had success running the company in the past and that they are likely the best people to right the ship in whatever stormy waters the economic winds have whipped up.

As is often the case, broader more available communication can go a long way in creating a better investor experience and expectation.

5 Ways to Achieve Experience-Based Brand Differentiation

coke-museumThe correlation between the need for superior customer service and stellar customer experiences with brands AND a struggling economy is not rocket science.  It makes sense that people are going to be more price sensitive than ever during an economic downturn, but they are also likely to be far more affected by negative or positive customer experiences — and that includes experiences with brands.

It’s a simple concept really.  When every dollar counts more than ever (like during a recession), consumers are far more aware of who they give their money to in exchange for products or services.  You better believe they remember and pay more attention to people who talk about positive or negative brand experiences.

What’s the solution for brand managers and marketers who want to achieve experience-based differentiation when the economy is weak?  Again, it’s simple.  [Read more…] about 5 Ways to Achieve Experience-Based Brand Differentiation

A Tale of Two Stanleys

AARP

Going Gray looked at some of the benefits and challenges associated with recruiting older workers. Recap: 50+ workers represent a cost-effective resource pool, but Careers messaging often ignores them. And as we saw with the comparison of Hewlett-Packard and Securian . . . youth bias can be quite subtle.

To dive a little deeper, let’s consider another pair of examples.  Stanley Associates is one of the companies included on Fortune’s 2008 list of 100 Best Companies to Work For. And Stanley Consulting is on the AARP’s 2008 list of Best Employers for Workers Over 50.

Here’s the Careers landing page for Stanley Associates:

stanley-associates

And here’s the landing page for Stanley Consulting:

Stanley Consulting

Now. Pretend you’re a 50-something job seeker, looking at each page for the first time. (And keep in mind that we tend to notice pictures first, then read text.)

Which page makes you feel more welcome? The one with a gray-haired woman in the second row—or the one that spotlights an age range from 3 to 30? (As for that group picture in the upper left of Stanley Associates . . . I’ve zoomed it as far as it will go, and if there’s anyone there over 39, I envy their youthful appearance!)

The Stanley Consulting page reflects the company’s interest in actively recruiting from the 50+ pool. Over-fifties comprise 34% of their workforce, and the average tenure of Stanley’s 50+ employees is just 5.74 years—a very interesting figure, since it means that many of these employees have not aged into the over-fifty category, but were hired in maturity. Among the policies that attract over-fifties to Stanley Consulting: flextime, telecommuting, and phased retirement.

In addition (according to the AARP profile), Stanley Consulting has an employee who is directly responsible for maintaining relationships with its current group of 144 retirees, and the company acknowledges retirees with regular communications, invitations to company events, and opportunities for temporary work assignments, consulting and contract work.  As employees age, they have choices about their role with the company.

Which brings us to an often-overlooked point. Even for companies where recruitment priorities skew away from older employees—there is still much value to creating an age-inclusive message on the Careers site. It lets the visitor know that experience and maturity have value to the company. And that message will be meaningful to younger job-seekers (who might, after all, hope for a long career in the company!) as well as older ones.

Finally, it’s worth noticing that a majority of the companies on the AARP list are in the health care field, with insurance and financial services, education, and consulting also well represented. Retail appears to be almost absent—but L.L. Bean makes the list at #20, and their creative approach to age-inclusive messaging is worth a look:

LL Bean

No faces on the page, either young or old. Just an iconic image that captures the company’s branding perfectly, and invites job-seekers to lace up and join in!

CEO’s and Managers, Take Note – – Obama Knows How to Get Re-Elected: Talk, Talk, Talk

In this time of economic crisis in the United States, there is worry and concern on the minds of citizens all over with issues ranging from housing and healthcare to education and entertainment. Taxpayers are worried about more than just what is immediately before them, but they are also concerned about the uncertainty of their future. They worry about their children’s education (or the lack thereof of availability), their retirement finances, current employment, securities, etc. And they understandably should be concerned about these things because they are very important.

With so much going on, you would think that the crisis is the only thing that should be on someone’s mind. But no, it is not. Judging from the way that U.S. President Obama has positioned himself and his interactions with the media, he has plans…big plans!

Since U.S. President Obama took office on January 20th (which is a little over 5 weeks), he has given several speeches and addresses to large audiences (including Congress) to update them on the country’s current economic status and plan of action. Can significant changes occur weekly that would really, really warrant an address from the president that often? Surely not. Although while I believe President Obama is extremely capable and qualified for the job, I do think he has another agenda…and that is for re-election. Obama is setting the stage now through the use of speeches, video addresses, forums, commercial-type addresses etc., to ensure that his name and deeds stay in front of the citizens in a positive light. And, when the time comes, they will act on it, remembering the great things that he did, and vote again, allowing him to enjoy four more years of his leadership. Not a bad deal.

CEO’s, managers, owners, leaders, take note! The best way to get your customers to become loyal, repeat customers is to stay in front of them in whatever platform is available. Obama has the luxury and the affordability to engage television media, radio media and even press media. In most cases, small-to-medium online businesses cannot afford these expensive venues and must opt for more lower-cost options. Whether it’s free radio time or sponsored ads on vlogs, they must be creative in how they choose to do their advertising and marketing.

But all is not lost as many online companies are turning to their own resources and employees skills to market their businesses and “become famous.”  There is always the powerful effectiveness of social marketing. Businesses fare well i this arena by staying in customer’s faces at every available opportunity. Do you Twitter? Then Twitter daily and post links to news articles from your site. What about FaceBook or Plaxo? Make sure your company updates the space often and with relevant information. And don’t forget your company’s own blog or vlog. This can be one of the most powerful ways of marketing. Be sure to load frequent addresses from the company’s leadership and managers. This is what impresses customers and keep them coming back. They are interested in what is said, and since you will have their undivided attention, use the opportunity to present information, products or services to them in a non-pressuring manner.

Just as Obama has used the media and is using the media to further his agenda, so can you. Maximize your opportunities to talk to your customers in whatever space is provided for you. Use the media, whether it’s vlogs, blogs, television or radio, to connect with your customers and stay in their minds. If Obama gets re-elected, we’ll know it works. Don’t wait too late to try it for yourself.

Does your company use social networking right now to address customers? Do you think doing this makes a difference, howbeit small, to your buying population, persuading to buy from/with you?

Social Networking for Senior Citizens?

The demographics of frequent internet surfers vary from region to region and are assumed to be young, college-educated, middle class, suburban living individuals. However, this perceived demographic description fails to address a sect of the population who make a significant impact on online media and social networking. They are fondly referred to as baby-boomers or empty-nesters. The impact that they have on how corporate media and social networks interact with their age group is something well worth taking note of. They are the generation who can make a substantial difference in a company’s bottom line.

Senior citizens are classified as the age group that covers individuals generally from 65-up. The impact of seniors on the media is somewhat significant, but does not get the amount of attention that is justly deserved. Internet usage is at a higher percentage than it was over five years ago. According to SeniorJournal, “the fastest growth in Internet use is being driven by the older age groups, starting at 55.” Senior Journal also performed a study and found information that reports, “in the 80 plus metropolitan markets surveyed regularly by The Media Audit, 61.2 percent of all adults visit the Internet regularly.” (emphasis added)

What sites are these senior citizens visiting? What types of interests do these senior citizens have? What are online companies doing to cater to this type of niche market?

Social Sites for Senior Citizens

Online social networking sites for baby boomers are also steadily increasing and becoming available to these boomers more frequently. Networking sites are taking note of this increase in internet traffic and are offering this niche market a place for information sharing, networking and personal interests. These networks that cater to the market are not catering to them because of who they are but rather what they represent, and that, a significant market share of retail dollars and a consistent resource.

One popular social networking site for senior citizens is the site called Eons.com. They offer pertinent information and sharing for that age group as well as other topics of interest for niche markets. Sites like Eons.com understand what the niche market seeks and take the necessary steps to make the welcome extended to the market. What could other online networks like Facebook or MySpace do to make the baby boomers feel more comfortable? Should they even try? Is there enough of an interest to warrant more sites? According to this article from TGdaily.com, Eons founder, Jeff Taylor doesn’t seem to think that it’s right for the older sect:

Taylor wants Eons to be a practical and friendly place for older people and you won’t see any Myspace-like videos and juvenile commentary.

Does that mean that MySpace isn’t for the mature crowd? There may be a mistake in dismissing the senior citizen crowd when it comes to the online world. They can offer a significant size of marketing dollars as well as significant traffic and their input from experience. Just because they’re not perceived as “hip” or “cool” is not reason enough to dismiss them and assume that they’re out of touch. TGdaily.com also says in their article:

Senior citizens are a lucrative demographic for companies to go after and Metlife recently released a study saying the baby boomer generation has a combine $2 trillion dollar worth of annual spending power. If corporate media chooses to portray the 65-and-over crowd as feeble, they are missing out on a significant portion of the population who make a significant contribution, both in presence and in sales.

What can your online organization do to cater to this market segment? What types of products or services do you have that senior citizens can benefit from?