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Archives for 2010

What Makes for Effective Investor Relations Sites? Part 23: More on Strategy

A while back (Part 18, to be precise) I wrote about the need for corporate investor relations sites to speak about strategy. The basic premise of the piece was that when buying a stock, investors are purchasing a claim on the future cash flows of the company and therefore need visibility into the future plans of the company. Many companies are reluctant to discuss strategy on their investor web sites, however, so when I came across a great example of a strategy discussion, I thought it would be an opportune time to revisit the topic.

Whenever I discuss this topic there is usually some push back from investor relations officers and executives along the lines of “We can’t tell them that – then our competitors would know what we are going to do” or “That’s way more detail than the regulations require us to disclose and therefore we’re not going to do it”. I understand these concerns (well, at least the first one) but feel that the importance of stating your strategy outweighs most concerns about how many of the corporate information you divulge. Besides, there are ways to discuss strategy that do not let the competition in on your innermost secrets.

ENI Strategy
click to enlarge

Take for example the way ENI, the Italian energy company, discusses strategy. They start with a general overall write up of their growth strategy, followed by a tabbed table that sets out their targets in a number of areas and follows that with more detailed discussion of the strategies to achieve their targets.

ENI Strategy
click to enlarge

The strategy discussion is followed up by a page that lays out the company’s growth drivers, so investors can get a sense of how ENI will achieve its strategic objectives.

ENI Strategy
click to enlarge

Finally, the company examines their outlook for the next year, which allows the reader to understand how everything is supposed to fit together.

The overall effect of all of this is to give the diligent investor a sense that ENI has carefully thought out its strategy and is confident enough in its ability to execute the strategy to put it out where everyone can see it. I think this is a very effective strategy section that many companies can learn from.

In this series:
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Next post: Presentations

Brand Confusion Always Benefits the Category Leader

question-mark-confusionEvery marketer should know the theory that a focused brand is usually a stronger brand.  But what happens when the entire category is unfocused and confusing to consumers?

The leader always wins.

Here’s why — the majority of consumers aren’t interested in doing the research to figure out claims, terms, guarantees, and so forth.  If they feel overwhelmed within a category, they’ll usually choose the most well-known brand assuming there must be a reason why it’s the most popular.  The problem is that the leader isn’t always the right choice for every customer.

That’s why it’s essential that you make sure your category is not confusing to consumers, particularly if your brand is not the category leader.  Sure, in so doing you might actually lose some potential customers who realize another brand is better for them, but in the long-run, you’ll do better because consumers who may have settled for the category leader in the midst of confusion can now make an informed choice and choose your brand.  These customers are more likely to be happy, make repeat purchases, become loyal customers, and spread the word about your brand.

The wireless carrier market is a perfect example of a category that is incredibly confusing to consumers.  No one really understands all the fees, terms, and conditions in wireless carrier contracts, so consumers typically choose a category with a brand name they’re more familiar with.  That brand instills more trust in consumers than the lesser-known brands, even if one of those lesser-known brands has a better plan for a specific customer.  It’s just too confusing to compare plans, so consumers settle for one of the leaders.

The same could be said of financial companies that offer mortgages, bank accounts, and other financial products.  Financial contracts are impossible for most consumers to understand, so they stick with leading financial institutions even though a smaller bank might have a better product or option for them.

The lesson to learn is this: if you’re not the category leader, make sure consumers can easily understand the various brands and products offered in the marketplace so they can make informed purchase decisions.  Be honest and you’ll be more successful than if you simply try to persuade consumers to choose your brand without all the facts.

Afterall, 2010 is the year of brand transparency, honesty and trust!

Image: stock.xchng

July Wrap-up


Beautiful Rose

Summer slowed down the posting for Careers in July, so this month the Wrap-up offers a few items that didn’t make it online.

A Note about Certifications

There’s a long-standing debate about whether certifications have real, practical importance.  Does professional certification increase someone’s worth in the marketplace—or is it mainly a source of revenue for the certification provider?  (Check out this lively international discussion for multiple perspectives on IT certification.)

From the individual’s perspective, there are some good reasons to consider certification:

  • Preparing for exams provides the chance to review information, assess strengths and weaknesses, and maybe even learn something new.
  • Passing exams and obtaining a certification can be a confidence booster.  Success feels good!
  • On the other side of the coin, failing an exam could be a needed wake-up call for folks who have been overestimating their skill level.

Although having a certification won’t magically double your market value or ensure a promotion—those initials after your name actually may add a little heft to business cards and resumes.

So for those who can afford the time/effort/money, and don’t expect a miracle, certification can make sense.  Unfortunately—no certifications available yet for Brilliant Online Corporate Careers Communication.  But until the BOCCC comes along, there’s the PHR (Professional in Human Relations) and the SPHR (Senior Professional in Human Relations) from the HR Certification Institute.  Visit their blog for a further view into the details.

Revisiting Disability

Recently, the USA marked an anniversary:  twenty years since the passage of the Americans with Disabilities Act (ADA).  For some reflections on the accomplishments since then—along with the gaps that still exist—listen to an NPR conversation:  20 Years After ADA, Accessibility Remains ‘An Evolutionary Process’.  There’s a transcript too.

And for a global perspective, check out the website provided by the UK’s Equality and Human Rights Commission.  Three good reasons to visit:

  • A colorful and creative design
  • A summary of the Equality Act 2010, as well as a full-text PDF
  • A guide to the United Nations Convention on the Rights of People with Disabilities (UNCRPD), as well as full-text versions

An Interesting Survey . . .

I’ve just browsed through a new survey being conducted by Aberdeen’s Human Capital Management practice.  I did not answer the questions, since I’m not in their target demographic—but I did get some ideas by reading the questions, so there will be a post in the future.  Meanwhile, see for yourself.  The survey is online for another week or so, and the results will be out in October.


(Many thanks to elbfoto for the “beautiful rose.”)


How Customer Services Affects a Brand

customer_service_agentHow do your company’s customer service tactics affect your brand?  Have you researched the relationship between customer service and brand image in your company and with your customers yet?  If not, you need to.  Customer service and brand image change in direct proportion to one another.

In other words, poor customer service (whether it actually is poor or is just perceived as poor doesn’t matter) leads to a negative brand image in consumers’ minds.  Great customer service, on the other hand, can have a significant impact in positive brand perceptions.  The power of social web conversations can boost these perceptions exponentially higher or lower.

How many times have you called a customer service line in need of help and found yourself spending 10 minutes navigating through automated services, desperately trying to connect with a human being.  However, when you finally can connect with a human being, that person provides you with inaccurate information or chooses not to be helpful at all.  Often there is a language barrier that makes it more frustrating for customers.

Sometimes, customer service agents are simply so unfriendly, bored or aloof, that the caller ends up feeling like he did something wrong by seeking help.  I understand that customer service is a thankless job (I’ve gotten on the phones in corporate customer service call centers more than once to get a better understanding of how the process works in order to better market it).  However, as a customer, you still deserve to be treated kindly and as if your call is important.  On more than one occasion, I’ve ended calls with customer service agents who have sounded particularly bored saying to the agent, “You’re getting paid to talk to me, right?”  The agent always answers in the affirmative to which I respond by saying, “Then you should really cheer up.  You are getting paid after all.”  I’m sure it doesn’t make a difference to the agent, but perhaps they’ll try to be a bit friendlier.  I can hope, right?

Of course, companies need to cut costs, and customer service is an easy place to do it.  However, the negative implications to your brand when customer service suffers are far-reaching and long-lasting. That’s damage that can be hard to erase or reverse.

Human nature makes it far more likely for disgruntled customers to tell people about their negative experiences with your company.  Happy customers are usually less likely to go out of their way to tell the world about how great your company is.  It’s important to go the extra mile to build loyal customers, but it’s also important to do the simple things that customers expect — such as giving them an easy way to get effective and friendly help when they need it.  After all, an essential part of brand-building is setting and meeting expectations for your brand.

Bottom-line, make a point to study how customer service affects your brand in the minds of consumers and how consumers react to those perceptions.  It’s more important than you might think.

Image: stock.xchng

Phenomenal Facebook, Part 2: Corporate Recruiting


EY Facebook Wall

Global powerhouse Ernst & Young was the first major employer to implement a full-scale Facebook recruiting strategy.  That was at the beginning of 2007—and by September of 2008 (according to a story posted on Attracting Talent) their FB Careers page had 18,000 “fans.”  A year later (according to our own Facebook basics story), that number had almost doubled.

And today?  48,029 People Like the EY Careers page.

That’s a lot of folks.  In fact, about one-third the total number of people already employed by EY.  Among the Facebook fans are former EY interns and employees, as well as people who want to know more about opportunities at Ernst & Young.

As explained in the EY FAQ:

Facebook allows us to share the EY experience with people who are interested in the firm, and creates a way for interns and employees to stay in touch with one another. The group provides a forum for people to share their questions, experiences, and comments regarding the Firm, and we can let you know when we’re coming to your campus for “Meet the Firms” nights, career fairs, on-campus interviews and other events.

Visitors to the EY Careers page will find an Updates tab (with news and useful information), as well as tabs dedicated to the specific interests of students and experienced professionals.  On the Wall tab, people post (usually) relevant questions about EY opportunities and (sometimes) get answers.

EY Facebook Students


EY Facebook Experienced


EY Facebook Wall


There are no job postings—the Facebook version of EY careers is focused on showing off the employer brand, and on creating engagement.  And it’s engagement approach is so successful that I actually wanted to look around, even though I’m about as far away from an interest in accounting as it’s possible to get.

Ernst & Young is hands-down the poster child of corporate recruiting on Facebook.  So are there any other good examples out there?  Judge for yourself by visiting:

Microsoft Careers

Taco Bell Careers

Science Careers

Accenture Careers (US)

MTV Networks Careers

State Farm Careers

Hyatt Hotels and Resorts Careers

 

Up next in the Phenomenal Facebook series: Enabling Facebook recruiting.