Posts Tagged ‘sporting goods industry’

Manage the Information, Control Your Future

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Courtesy: New York Times

I’ve been talking with a lot of the brands in the outdoor space lately and I’m hearing the same theme. Something like…”new media is important. We are looking at its impact.  We have to determine how much time this will take, who will execute inside the company, and how much it will cost.”

Fair enough. All good concerns.

This brings me to the core problem. The more information we load upon ourselves the less time we have for…everything.

Herbert Simon, a political scientist, wrote in 1971, What information consumes is rather obvious: it consumes the attention of its recipients. The more information, the less attention, and the need to allocate that attention efficiently among the overabundance of information sources that might consume it.” Quoted from A Short Manifesto on the Future of Attention by the Design Observer

In my view, this problem is now pervasive. Consumers are focusing their attention to write messages to companies about products, customer service, and branding. And it is evident that companies do not have the attention span to:

1. Listen

2. Engage.

Why?

Because companies are swamped with so much information that much of  the valuable info gets ignored . The work force is in a dingy and the waves of information are ten feet tall.

Another problem:  many companies are still in the Broadcast Mode because it takes less attention. Executives are saying We are on Facebook, Twitter, and YouTube…and we have our own Blog. However, that company uses those channels to simply broadcast the message. Face it, that  company doesn’t have the “employee time” to engage with those customers.

Many brands suffer from information overload.  Reposition your company away from the endless silly emails that smack of over-communication in the form of “covering my ass” , positioning the responsibility to someone else ” I sent him an email!”, or ccing the universe “so I could solicit  feedback from the team” .  While all of this is going on, consumers are trying to communicate with the company.

Companies are more self absorbed than movie stars. Stop worrying about your brand image and look away from the mirror …and see.

To all major brands in the outdoor space: time to rebuild your marketing departments. Time to reallocate employee time for New Media. So they listen for the customer. Hear them. And then respond. Time to create content that consumers find worth responding to. Time to take money away from traditional advertising (and the push messaging) and invest it in real time feedback on your products, your service, and your brand initiatives.

Back to the future, where the motto is, “The Customer is King.”

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

When Lawyers Should Leave the Room

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Recently several companies have found themselves defending their logos and company names from this new creature called “the new media entrepreneur.” Logos are being bastardized and product knocked-off…all with the purpose of making people laugh, and then buy from these small start-ups.

Back in the day, big companies would bring in their crack legal team, and those guys would write a very nasty letter threatening legal action at the least, and  possibly “pain of death” if the action by the perpetrator continued.  My brother started a company called Bean Reef. Small tee-shirt company. Well, you guessed it. He got a “hang em high” letter from no other than L.L. Bean threatening legal action if he didn’t change the name. Now what L.L. Bean has to do with  a surf break off the coast of Puerto Rico…I’ll never know.

Things have changed. A couple of weeks ago, a large company directed its legal team to write a cease and desist letter, and the young guy  starting the company hired a lawyer, and went to the media and said “bring it.”  Fox News picked it up. So did new media. And the ball started rolling the wrong way for the  big brand.

Collateral damage in new media will hurt a company, even a large one, if they pick the wrong battle. Small companies who capture the fancy of the public by making products or creating marketing campaigns poking fun at a large brand  must be handled carefully. Otherwise, damage in the form of negative new media could end up in the millions of dollars.

With all due respect, lawyers are not trained to handle many new media problems. Marketing, public relations, and sales people are much better equipped to engage a small company in conversation. Perhaps there is a possible partnership. Perhaps this new entrepreneur could help bring the younger market to the larger brand.

But before the legal guns come out, companies should try a little conversation to learn the real extent of the problem. And work to find a mutual solution.

And it wouldn’t kill a brand to sometimes laugh at a funny new start-up, and do it publicly.

And this comes back to a bigger challenge for many large brands in new media, showing their humanity.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Three Things Companies Must Remember

  1. Choose only communication channels that best match your goals.
  2. If the news turns sweet or sour, monitor and measure across your channels to find the real issue. Only then do you respond with the corporate answer.
  3. Engage when the news is good, engage more when the news is bad.
Okay, let’s take these one at a time.
1. Choose only communication channels that best match your goals.
Just because Facebook, MySpace, YouTube, and Twitter exist doesn’t mean that your company should employ them as communication channels. Remember when all the buzz was about the power of newsletters. Well, 95% of those companies who launched newsletters found them to be a lot of effort for very little return.
I also like what Jim Tobin of Ignite Social Media says in his presentation. One of his clients said to his management team when they wanted to engage in all sorts of social media. “It’s like a puppy. Are you gonna feed the puppy? Take care of the puppy? Nurture the puppy?”
So, do you have the resources and commitment to employ all of these channels? Respond to all of the questions, comment on posts, and generally be in four conversations at once?  I think not, no matter how big you are. So, focus on what communication channels hit the target, write great content, engage, and do it well. To start, choose no more than two.
2. If the news turns sweet or sour, monitor and measure across your channels to find the real issue. Only then do you respond with the corporate answer.
Ad Age wrote an excellent synopsis on the Motrin Mom problem. As you’ll recall, Motrin created an ad aimed at young Moms carrying their babies around in slings. Message: take Motrin because you probably have a sore back or hips from lugging junior around. It back-fired and Motrin yanked the ad after only a few days.
Research indicates that:  1). not that many people were paying attention. Twitter, where much of the firestorm lived, is responsible for only .15% of the Internet audience. The ad received less exposure than a one 30-second spot on a cable news network. 2. 35% of the audience that was paying attention was offended by the television ad. So, 65% of the interested audience was positive or neutral on the ad.
Measure before you react. Don’t react because your VP of Marketing has 10 emails in his inbox lambasting an ad. Get a bigger more accurate picture.
3. Engage when the news is good, engage more when the news is bad.
Many companies fall all over themselves to respond when the news is good. ” Thanks so much.”  ”Working hard to develop good products.”  ”Appreciate your loyalty to the brand.” Many employees respond because it is very hard to make a mistake. Senior management simply hears of the good news and grins.
However, when the new media news turns bad, everyone in the company is called into a meeting and kept there for hours and hours. “What is our response?” “We must speak with one voice.” And once it comes out of committee the response is canned, wooden, legal…and useless.
When the news is bad, make sure it is bad. Measure while you are initially responding. Find out where the bad news is coming from and learn who the Influencers are. While doing that, measure the entire Internet with regard to that issue so you get a 360 degree read.
Tell the truth. If you are getting to the bottom of the issue, tell the Influencers. Tell them when you will get back to them. And when you do, have real information.
If you made a mistake, communicate that. And quickly follow that up with what steps you are taking to correct those mistakes. If you didn’t make a mistake, then find where the misinformation is coming from
and take action with that source. If you are not at fault…be a rock, but continue to communicate.
And have several people carrying the message into the market place. Remember, companies are groups of people. Portray yourself as a large concrete building talking with one Wizard of Oz voice and you will receive even more heat.
Be human.
Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Inside the Chatterbox

Just got back from San Diego and the annual conference of the outdoor leadership known as the Rendezvous. I was asked to speak on new media and so I built a session called Inside the Chatterbox. New media lawyer Andrea Anderson of Holland and Hart was my partner in the presentation. David Sweeney and Brad Werntz of Pemba Serves also were part of the program; David as an analyst and Brad presenting PembaServes’s new media strategy. Pemba is a rep group. Mike Wallenfels, president of Mountain Hardwear, also added valuable comments to our Hardwear section of the seminar.

Special shout-out to Darren Bush of Rutabaga, who introduced our event to the audience. He and the Pemba boys built a video to introduce me. Very funny and creative…it got the event off to a great start.

The audience was attentive and asked great questions throughout. Used Channel Signal as the monitoring and measuring tool for all of the case studies. The audience was impressed with the power and clarity of Channel Signal. We couldn’t have done the presentation without it.

I thank everyone; the sponsors, the Outdoor Industry Association, my partners and the audience for the seminar and the event. A real testimony to the men and women who work in this industry. We do not cut and run when it gets tough. We keep working at the problems. Good for us.

I also attended a gathering of new media folks in the outdoor industry before the Rendezvous. Informal, it was a great session where thinkers outside of the typical Outdoor Box expressed themselves about how new media could drive the industry forward. This group wants more of the passion to come back to the core group. They also admit that we need to reach out to more communities and groups to introduce them to the outdoors…but in a very organic way. Just like we were all introduced to it.

How? That is the question. New media is a central part of the answer. However, we do need to wrap it into our core personality and deliver. This is a problem that every vertical market faces. We are very fortunate to have smart passionate people who care more about the industry and the outdoor experience then the money.

That’s enough for now. I have so many thoughts in my head from these two events that I’m gonna walk away for a day or two. My sub-conscious will help to work through the terrific challenges coming up.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

The Funnel is Now Right-Side Up

In a recent conversation with Brad Werntz of Pemba Serves we were discussing the new business models that would develop due to new media.

For some reason my mind came up with a funnel and I started talking about it. By the time I was finished it made a lot of sense, which wasn’t surprising to Brad but a shock to me.

So the communication funnel has been upside down for a long time. Why?

Until recently all messaging by brands went into strict portals like magazines, radio, television, newspapers. Went into the top of the upside-down funnel. Media would receive the messaging, charge for it, place it in their formats, and then distribute.  Advertisers and the media told the brands that they could reach more people more cost-effectively then any other method.

And they were right.

So, all of this messaging went into the top of the funnel, got processed, and then was delivered to the target markets, and hopefully to a lot of people.

With new media this has all changed.

The funnel is now right-side up. Meaning that anyone can publish and can do it at no charge. The top of the funnel is open to the public. Opinions, product reviews, customer complaints, brand messaging, sales pitches, you name it…is flowing into the distribution systems.

Now, all of this information gets seen, and if good, it gets passed around. And if really good, it gains momentum and readership as it moves down the funnel. It also gets directed meaning that many people are involved and directing this information virally to the target markets that would be most interested. People like them.

So, with new media everyone can publish, everyone can express an opinion, everyone re-channels, and in the end the good information gains momentum and hits its proper target market.

So, why do brands still believe they control the message?

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal