Posts Tagged ‘snowsports industry’

Brother, Can You Spare A Dime?

Recently I was in downtown Salt Lake and came across two people begging for money, clothing, anything. This time I looked closely, without the “go find a job” attitude that I normally carry. These were people who were looking for jobs. The signs were heartfelt, and I thought, authentic. I believed they would drop everything and follow me if I offered them a job. 

And then I started thinking about all of the excess inventory that the outdoor recreational industry dumps every year. Jackets, socks, pants, long underwear. Inventory that manufacturers try to hide from retailers by putting the stuff in the backchannels and then the product sells for dirt cheap. Or retailers try to hide excess inventory from the manufacturers by going online under another banner and selling stuff at a steep discount. (More about that in a post coming up.) 

Is there a better way?

I think so. Here’s an idea. 

Instead of dumping inventory into these back channels, take it and offer it to the out-of-work/homeless folks in ten major cities. It comes with a price tag. To receive the clothing package each person-in-need must sign-up for the brand’s environmental or humanitarian cause in that city.

Brand volunteers go out into a city and find the real people who want to work and contribute. These people get assigned to a project and are told where and when to show up. River clean-ups, parks, beach clean-ups…there are a millions projects out there. 

The projects last for a weekend. On Saturday and Sunday…breakfast, lunch, and a dinner will be served to the homeless at the project locations. At the end of that weekend the volunteers get a great clothing package from the outdoor manufacturer. 

Local retailers would volunteer and offer other types of support… and benefit by having their establishments featured in the local press. 

Can you imagine the public relations benefits of such a program? Every local television station would go “live” from a volunteer location. Radio and print would be all over it. And in ten cities. Get your PR folks to talk with the big guns…like The Today Show, GMA, etc. Would this appeal to them? Uhhhh, yea. A manufacturer giving back to ten cities and to the folks who need some help. Headline:  Manufacturer, Homeless, and Local Environmental Groups Combine To Make A Difference. 

And new media would take the story and run with it. Outdoor blogs. Green blogs. Political blogs. Big time. Bloggers would be wondering how else we can employ the unemployed for the benefit of all? Twitter would be on fire with the brand volunteers, press, bloggers, etc.  who witnessed these events. 

So, instead of dumping product, a manufacturer is putting that clothing to good use. And leveraging it by getting more publicity then that manufacturer has gotten in the last three years-combined.

Too expensive? How expensive is it to find a home for all excess inventory that disappears without profit, with no benefit to the company, and all the while contributing to price erosion?

So find a home for that excess inventory in a place of gratitude, work, and good will. Who knows, the company might change lives, and those are follow-up stories worth gold. 

Outdoor recreation has soul. I’ve seen it. Show more, and the benefits to the company will come in all forms.

Homeless person to a brand representative:  ”Thank you for the long underwear. I’d like to help further with the clean-up. Will you be doing this again?”

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

The Next Big Thing

 

I read a short good article today in Junta42 about what will be the next big thing. And that is media becoming part of a brand. I started reflecting back on my Channel Signal presentations to some of the larger players in the outdoor recreational space in the last couple of weeks. That same question was asked by the company leaders. Maybe not in these exact words, but the dialogue is close. 

CEO: “So, where are we going with all of this? I get the importance of new media, but where is this taking my company?” 

Me: “You will become a media company along with a manufacturer.” 

Then I get the stare. 

CEO: “We know nothing about media, we make products.”  

Me: ” You make products and your customers now want to know how to best use them and perform better with them. And that means you publish that information as part of your product and brand offerings. 

CEO: “How do we get paid for that?”

Me: “The better the information and the better your distribution of that information, the more your brand and products spread throughout new media. And the more it spreads, the more consumers will learn and ask about your brand and products. Your sales go up.” 

CEO: “So, how do we distribute this information? I know we can develop the content, but how do we get it out there?”  

Me: “Find the influencers in your vertical markets?”

Another stare while this info gets processed. 

CEO: “What can they do for us?”

Me: “Spread your brand, product, and messaging faster and better than anything you’ve ever done in the past.”

A pause.

CEO: “If that is the case, then we need to think about the long term restructuring of this company.” 

 

And that leader is on his/her way to sustained growth.

“Ship to ship.” — Kirk, “Hailing frequencies open.” — Uhura,

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

When Brands Tweet

Corporate Tweeting. What is it? It’s when brands, more specifically public relations or marketing folks working at the brands, tweet with the purpose of selling product. And that’s where I have the problem. 

 

First, I appreciate the outdoor brands following me on Twitter. Nice compliment and I don’t take it lightly. And I follow them.

But for me, or anyone else, to get anything out of a corporate tweet we have to get past this SELLING THING. Here are some recent examples: 

Corporate Tweet: Just walked outside and it is raining! Sure glad I have my “BRAND” waterproof-breathable shell on!!

Corporate Tweet: Just saw our new catalogue. Have to admit that we sure have some new cute things in it!!

Corporate Tweet: Got to get outside today and test out my new “BRAND” bike. 

You get the point. Brands have got to stop directly trying to sell product through Twitter and start leveraging the communication channel. It’s the wrong channel to sell product. 

The communication channel mainly consists of people who are familiar with the brand’s products…at least the general product line. These people know the outdoor space and most of the major players…brands, major retailers, etc.  Many are avid equipment users. Many work in the industry. They do not want to know about specific products and where to buy them. 

What do they want to know? 

Tell me what the BRAND is doing right now. Just like Twitter says. What are the brand’s employees and athletes doing?  Tweet about your environmental initiatives, the grass roots events, how the brand is helping people with special needs to get outside and recreate. And tell me what your customers are doing and how they are making a difference in their communities. Make your brand come alive through all sorts of people and events.  Give me a 360 degree brand education. Inside and out. In real time. 

It’s Earth Day. So, tweet about the brand’s activities to celebrate the day. Tell me that you and your fellow employees are getting out of the cubicles and picking up trash. Tell me that you are planting trees at a nearby park…on behalf of the brand. Tell me you are part of a group taking pre-schoolers out to a farm.

Show me your corporate soul. 

And the next time I’m in an outdoor specialty store, which is at least once I week, and I need something…guess who will come to mind? That’s right, you. Why? Not because of an individual product but because you have distinguished yourself by telling me that your brand has purpose in life. 

You stand for what I stand for. And man, I’m gonna buy you.

And will this grow your Twitter base? Damn right. 

And will this approach travel to a larger consumer audience? Same answer. 

Damn right.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Best Buy Did It Right

Patric Welch writes a blog called Noobie, an advice column for people wanting help with technology. Welch wrote a piece about how Best Buy broke his son’s heart on Valentine’s Day. Welch had ordered a Madagascar DVD on BestBuy.com and it wasn’t delivered with the promised “plush penguin” gift. His son was very disappointed. Here’s what he didn’t get. 

Here’s the reply and the course of action from Best Buy.

Dear Patric,

I’m Jason, Community Connector for Best Buy. We frequently review our customers’ blog and forum posts to gain insight into their experiences to identify areas of improvement.

Valentine’s Day is a special occasion for many individuals and I am sorry to hear you were unable to get your son a plush penguin. I realize it can be frustrating when you do not receive the service you expect and I am disappointed we did not meet your expectations. I would like to invite you to discuss this issue with us further by emailing me at jason.communities@bestbuy.com. Please reference issue number 57801142 and we will do our best to assist you.

Sincerely,
Agent Jason
Community Connector

Best Buy has a team of 10 community connectors that search the Internet for customer relations problems. So Jason went to work after a search pulled up Patric’s problem.  Several online discussions proved that Jason was having a tough time finding any penquins.  Suddenly Patric found two “plush penquins” in the mail; one for each of his sons. Patrick and his sons were ecstatic. Best Buy also credited the Welch’s account for the DVD. 

20 comments have come into the Noobie site, all expressing admiration for Jason the Community Connector and Best Buy. One has even said this story is turning around his impression of Best Buy. 

You cannot buy this. And this is New Media at its most powerful. Where real people from brands help customers by searching online for complaints, reaching out and solving the problems. Now Best Buy has a powerful ally. Do you think Patric will recommend Best Buy to his readers and customers when suggesting technology to solve their problems?

And how about the viral component. This story was emailed to me by a friend. Major media picked up on the story and ran with it. Other bloggers, like me, are picking up the story. And how many people will be talking about the “plush penguin” story in conversations. How many people will congratulate Best Buy? How many Best Buy employees will hear about this. And what kind of positive momentum will this little story sponsor across all distribution channels for Best Buy. 

How many unsatisfied customers do we have in the outdoor recreational space? How many hundreds or thousands of customers are out there talking and writing about certain brands due to incompetence from either online partners or brick and mortar retailers? How many products are stashed in closets, their customers disgusted with the fit, performance or both.   

Don’t have a program to uncover many of these problems? You should. 

Here’s a belated Happy Valentines Day, Best Buy. You earned it.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Why Storytelling Matters in New Media

Strong storylines have been the backbone of the great religions, kingdoms, and peoples throughout history. They were the glue to unity, cooperation, and belief. The Power of Myth by Joseph Campbell maps out a compelling case for this. 

As we entered the industrial age, brands also became big players in society. Some brands have adhered to a strong storyline and have prevailed.  Others have had no storyline, and consequently have been whip-sawed by every turn of event in the road.

Here’s why strong brand storylines are important as we enter into the New Media era. 

1. An authentic brand story leads to a credibility that resonates with consumers both

 online and offline. 

2. The brand story puts a human face on your company, which allows many others to associate.

3. A well told story is viral. It travels nicely through all channels of New Media. 

4. The story is the critical starting point for all great communication initiatives.

5. A solid story is timeless, and therefore cost-effective. 

6. A brand story demands continuity no matter the management team. 

7. A brand story sponsors loyalty which means many will defend when under attack.  

 

Develop your brand story. It will pay huge dividends as we move into the future.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Content is the New Juice

Time Magazine came out with a recent article about the continuing devaluation of content. In short, publishers are not getting paid as much for content because content has lost much of it’s value. Here’s the article. Time’s take on content.

 

So, if content has been devalued why is everyone in new media addressing the importance of content?Because there is a difference between packaged content to attract a mass audience and the major advertising dollars that go with it, and content that serves a much much narrower market. 

Traditional magazines and newspapers are broadcasting in a traditional media format. They write about Obama, recession, weather tradegies, wars, and the latest movies. Stuff that millions may be interested in. But it is general, and the information is pushed to the reader without the option of the reader responding. It is not dynamic, and the reader must pay for it in this traditional format. Ironically, the reader can go online and get much of this content for free. So, of course, they exercise this option. 

New media is narrowcasting…writing to a very specific audience, an audience that highly values the content. Let’s take weather, and more specifically tornadoes. Those interested in that topic, search, find the blogger experts, and opt in to read their stuff by email, rss feed, yahoo, etc.  And they can’t get enough of it. Because this writer is writing directly to them, and their tribe. And they respond with posts, and the author responds back, and a community begins to form about tornadoes: how they build, what precautions to take, tons of pictures, and most importantly, personal experiences. It is dynamic. 

Now, next time a tornado happens in the midwest, these passionate followers will be living it. Reading the tweets, getting hourly updates, seeing the latest photos…all well before traditional media can deliver it. 

That’s the new world. People find their hobbies online, find others with the same passion, and connect. Communities are built, and those in it…live it. 

People do want an overview, so broadcasting will stay with us, but it will migrate to being even more online. It will also shrink because consumers want the latest news and then they move on. Consequently large advertisers will only spend so much money with traditional media. Now the big money is searching for viable ways to connect with new media. 

And how about the outdoor recreational brands? What can be learned here? Consumers are in control. They know what they want, how to get to the information, and how to discover who writes it. The brands that learn to listen, post good content, engage with consumers, and build communities will reap the benefits. These brands will get massive help with product development, customer service and sales. 

How? It starts with finding the unique humanity in your brand. And once you’ve found that, you build a strategy, and begin to produce authentic content.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Starting an ROI for New Media

As I’ve written in this blog, new media will die if an ROI is not attached to it. In this environment, it is not good enough to tell prospects that their brands must engage in the online conversation because it’s the “new marketing thing.” CEO’s will ask the question, “what is our strategy behind all of these conversations?” And that answer better have something to do with sales.

So, let’s start with some basics. I am borrowing some thoughts from Connie Bensen, Community Manager for Techrigy and a good brain on the subject. 

using-social-media-monitoring-to-show-roi

I’m adding my thoughts for outdoor recreation companies who are considering moving into new media. Okay, let’s start.

1. Compare Your Brand with Competitors who are more established in New Media than you.  Using a new media monitoring device, measure a close competitor against your brand. If that competitor is getting more positive buzz, then you can assume that you may be at a competitive disadvantage.

2. Begin by Establishing a Baseline. Again, using a new media monitoring tool you can measure a competitor’s performance by breaking up the data into key areas such as brand perception, product acceptance and customer service performance. How? By breaking down each area into the number of online conversations a competitor is having with consumers. 

    Now we set a value. The estimated total cost of implementing your new media program is divided into the key competitor areas; brand perception, product acceptance and customer service. You divide again by the number of competitor conversations in each area to attain a cost per contact. Let’s just throw out an example using some out-of-the-air numbers for customer service.

  • 1000=your monthly cost in dollars of implementing new media customer service
  • 200=the number of online consumer conversations a close competitor is having on a monthly
  • basis
  • 5=your cost in dollars per conversation. This is your baseline for customer service.

3. Set Your Company Goal. Using the baseline of $5 a conversation set your customer service goal by approaching it from the number of conversations you hope to make.

  •     5= cost in dollars of each online conversation
  • 200= competitor conversations a month
  • 150= your goal in conversations in the first 30 days. 

This means your ROI in customer service will be -$250 for the first month. (-50 calls below the baseline X $5= -$250.)

4. The ROI. Measure all performance areas in 30, 60 and 90 days.  Remember your goal should be going up each month because your conversations will be going up. Your baseline, for this 90 day period, remains the same. Set up a graph and measure the difference between the baseline and your company goal. The difference is the start of measuring return on investment.

Okay, let’s be clear. In new media an increase in conversation volume will need to result in an increase in sales volume. When a company establishes a 5% increase in conversation volume over the competition, then does that result in a 5% increase in sales? Don’t know. Let’s find out.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal