Jul 28 2009

Impressions of the Outdoor Retailer Show

First, I thought ORSM09 was a very positive show. Two things continue to happen. The stock market continues to move upward, reaching 9000 just before the Show. Second, this staycation thing is the real deal. People are staying home, taking up new sports, planning local family vacations, and the outdoor industry is benefiting.

It’s all working and our industry, although listing to port a little, is not capsizing. 

And I like the general attitude. “Yeah, things could be better, but we are still making some money, running a tighter ship, and we will make it through.” 

New media is growing in the outdoor space. Tweet-ups, constant tweeting from the Show floor, and many of the major brands looking at or engaging in the blogosphere. Outdoor Retailer is embracing new media and supplying more portals on the Show floor. All good. 

I still strongly believe that the Show should open its doors to the public on the last day. It will happen someday. It is inevitable. 

Now, to the darker side. I heard from several very reliable sources that a certain large retailer threatened several large brands if those brand did business with online powerhouse Amazon.

Let’s start with this. After too many years in the marketing business I must emphasize again that retailers and brands can not fight the market forces. For example, I remember about ten years ago, medium sized specialty retailers were running around the Show telling the brands that they would drop any brand who sold online. Several brands sought my advice. I asked this question,” where is your growth?” And they replied, “Online.” And I asked why? And they said, “Because we think that is where a growing percentage of the consumers will be.” 

Right direction. Right thinking. 

YOU MUST FOLLOW THE CONSUMERS. YOU WILL NOT LEAD THEM. YOU CAN NOT BULLY THEM. THEY ARE TOO BIG. THEY ARE IN CONTROL. THEY HAVE ALWAYS BEEN IN CONTROL. AMAZON IS GROWING FOR A REASON. 

So, to this large retailer, I say, you must stop this nonsense. Brands will follow the money. They will sell to retailers who bring them customers and offer growth. They have no choice. Their shareholders have put a bulls-eye out there and told management to hit it. Unless, you, large retailer, want to guarantee the returns necessary to keep these shareholders happy, then you must do it the old fashion way.

You must compete. You must continue to create a unique position in the marketplace, buy creatively, attract more consumers to your doors and online, offer great customer service and sponsor customer loyalty programs. You will sell more, and order more merchandise. And the brands will support you more. 

And speaking of support…how can you, large retailer, threaten brands when almost 50% of your floor space is now your own branded products? You, at times, drive consumers into your stores using other brands as the bait, and then you offer your branded products at a lower price while your salesforce whispers that your product has the same quality only it costs less.  

So you are partners with the brands, you compete with them in your own stores, and now you threaten them because they want to grow their businesses. No wonder brands are confused and, at times, angry.

You are a retailer. A damn good one. Probably, the best.  You have been solidly on the side of “good”. You have helped grow the outdoor business. Now, others with a different business model, want to do business and help grow the industry. Invite them in.  And sure compete with them, hard. But also talk with them. Educate them about expectations. Talk to them about the environment, sustainability and participation. Show them how to be a force for good in the business. Both of you will profit. Why? Because you are both capable of bringing millions more consumers into our business. And everyone will profit. 

So, be the leader that you are, and stop baring your teeth.

Peace. 

Out.


Jul 17 2009

Window to the World

I found the below graph from eMarketer (done by Ruder Finn)  very interesting. 

Overall, Ruder Finn divided online activities into six categories, listed from most common to least:

     * Learn

    * Have fun

    * Socialize

    * Express oneself

    * Advocate

    * Do business

    * Shop 

Men were more likely than women to go online for business, entertainment and to keep informed on news and current events.

Women, in turn, were more likely to use the Internet to advocate for a cause or issue, express themselves and socialize.

More than two-thirds (69%) of young adults ages 18 to 29 posted comments on social networking sites, 55% played games and 50% went online “specifically to rage against a person or organization.” 

Okay, much of this data doesn’t surprise me. What does is that 100% of the respondents are going online to “pass time”. Pass time? Who has got the time to pass the time? Once I got past feeling sorry for myself, then it started to become clear. 

The Internet has become an entertainment center, information center, education center, and a conversation center. It is becoming all things to all people. So, that monitor that sits in the house, or in the office…it truly has become the window to the world. 

So, if you are an outdoor business, then understand that your customers, consumers you want to reach, your vendors, your manufacturing partners, your environmental and social initiative partners, your reps, your retailers, your employees and their families are all looking “at the screen”. For many it is the first thing they do in the morning and the last thing they do at night, with many many visits in between. 

Brands better be presenting themselves there. And they should educate, entertain, sell, and dialogue.  

Ten years ago this was a dream. Now it is here, with all of its advantages.

Go.


Jul 10 2009

Smile Away On Twitter

 

Recently I have heard from a growing number of my fellow tweeters who have been receiving “follow” requests from, well, not people they want to follow. I too have been getting them. These requests come from people who are trying to sell me stuff and its the kind of stuff that I don’t want to buy. 

a. I don’t want to work from home and make 50k a month selling god-knows what

b. I have no interest in establishing a relationship with a hooker or stripper. 

c. I do not want to be sold the latest stuff in marketing or branding.

d. I have no interest in a consultant who reaches out to me via Twitter…me and thousands of other people. 

Here’s what I want. I want to follow quality people who help me grow. I want followers who find what I am writing about worthwhile. And I think that is what most people honestly using Twitter want. 

So, if I have 100 followers and they are the right people, I win. And if I follow 100 people and they provide great insights, I win.  If new media is like a cocktail party, then throw a small one, invite the best people you can, and have meaningful conversations. 

So. as we conduct more and more searches at Channel Signal, we are becoming less intrigued with a tweeter who has 3,000 followers. Why? Because many of those followers are just hoping to get followed back. There may be no substance to that Twitter account.

To be sure, there are tweeters out there that have thousands of followers who are sincerely interested in the thoughts and experiences of that tweeter. Think Lance Armstrong, especially now since the Tour is happening. However, that is a minority.

Unfortunately here is the thinking of many tweeters:

“So, you follow me and I’ll follow you. I don’t really care about you and I can’t possibly read 3 thousand tweets,  but understand I’m using you to beef up my numbers. I, in turn, am beefing up your numbers, so you should be okay with it,  right?

Wrong. Twitter is a great tool. It broke the news in Mombai, Tehran, China, and in Honduras. It is the national dialogue running underneath our daily lives. It is a great search tool for understanding the discussions around very important topics. Twitter is wonderful and that’s why it is an important Channel in Channel Signal. 

However, we can not let the riff-raff into the conversation. Hit that “block” button that Twitter provides. And don’t feel bad. These people don’t know you, don’t care about you, and aren’t going to read what you write. They are either playing a numbers sales game or they want to beef up their traffic. 

Soon, technology will qualify the number of followers a tweeter has, and who that tweeter is following. Influencers will be judged not only on the quantity of followers but also the quality…particularly the quality. 

From his first and best album, Ram, Paul McCartney wrote a great rocker called Smile Away. “Block” when you don’t want to enter the conversation, say no thanks…and smile away.


Jul 2 2009

Companies Should Not Outsource New Media

                                  ”The biggest threat to companies is not disruptive technology

                                   or global competition but complacency.” Beyond the Brand by John Windsor

 

I’ve had several conversations with companies recently where the leaders have indicated that they are outsourcing new media to their public relations firms. I ask them, “how’s that going for you?” And they reply, ”Well, I assume okay. You know, I really don’t understand this stuff, but they tell me the pr people do.”

Dangerous position.

By outsourcing new media you put another layer between the company and your customers. Which means that you are further from the online conversation about your brand, products, and customer service. At a time when you need to be closer.

You want your customer service reps to be right on top of the customer conversations when praise is given and the pissed-off vent. Right?

And you want your product development people to be talking directly to influencers who have criticisms of a product. And to hear why the zippers are placed wrong on the jacket. And why the hood doesn’t work. And why the shoe laces are too long. Right? 

And your marketing people to listen to why a new brand message isn’t connecting or why the latest advertising is knocking it out of the park. Right?

For years and years and years…I’ve listened to leaders lament how they only wish they could measure advertising in some  way. They always said some variation of this: ” I know I have to spend the money but I sure would like to know what I’m getting for that money.” 

Well, now you can know, in real time. Instant feedback. A sensor placed directly into the marketplace. And you are going to outsource it???  You are going to have a third party decide what feedback is important and what isn’t? To package and then spoon feed you customer information critical to the development of your business?

Thousands of customers everyday are taking the time to talk directly to companies, most with sincerity and a real message. CEOs should shove aside all vendors who want to get in the way of that.

Go ahead Mr./Ms. CEO, get your companies up on the front lines. 

It will change your company, for the good.