Wednesday, July 30, 2014

The Secret to Creating Marketing That Inspires

The Secret to Creating Marketing That Inspires

by Aubrey Beck

Date July 30, 2014 at 11:00 AM

467696289Simon Sinek, an ex-advertising executive and author, is perhaps best known for his concept of the Golden Circle. The concept revolves around the thought leadership and messaging approach utilized by some of the world’s most exciting leaders and brands — the Wright Brothers, Apple, and Martin Luther King Jr. — who, as Sinek puts it, “start with the why.”
According to Sinek, most people communicate by starting with the “what” they do aspect and eventually work their way back to talk about “how” and “why” they do what they do.
However, companies that are universally identified as unique and successful communicate with an “inside-out” type of thinking, observes Sinek. They start with the why and only then do they move on to talk about the how and what portions of what they do.

The Science of It All

So, why does the order in which we communicate matter? It has to do with the parts of our brain that are engaged when we communicate different types of information.
When we’re talking about what we do, we’re speaking to a rational and analytical part of the brain that’s tied to language. But when we talk about the why and how, we’re communicating with feelings and dealing with human behavior – gut decisions – that have no capacity for language.

Dell vs. Apple

Think about Apple under the leadership of Steve Jobs. Apple is really just a computer company, but people have never seen Apple as “just a computer company.” In fact, Apple and Dell sell pretty similar products, but it’s safe to say that the two companies are held in very different esteems in the public eye. We happily buy more TVs, music players, and all sorts of other devices from Apple because we’re inspired by the story it tells.
Let’s compare the way Dell and Apple communicate with customers:

Dell starts with the WHAT

When you land on the Dell website it says, “Welcome to Dell!” From there, you choose from the “For Home” or “At Work” sections that tout “products designed specifically for home use” or “business and public sector products, services, and solutions.”

Apple starts with the WHY

"Everything we do, we believe in challenging the status quo. We believe in thinking differently. We challenge the status quo by making beautifully designed products that are simple to use."
Now which company do you want to buy from? With Dell, you’re being sold a computer – end of story. But with Apple, simply by reversing the expected order of communication, the company is able to inspire us – to tap into a more emotional part of our brain where we make decisions based on feelings. And let’s be honest, Apple just feels better than Dell.

It’s All About How You Frame It

This Golden Circle approach to messaging can be applied to content marketing and marketing automation plans as well. Marketing automation tools rely on workflows – populated with emails, triggers, and various types of content – created for the purpose of moving consumers through a natural buying process.
These workflows are designed by marketers who, in theory, have taken the time to understand buyer personas and pair appropriate content to the different stages in the buying cycle.
The next time you’re planning content – email copy, e-book titles, calls to action, blog posts, etc. – anything for a marketing automation flow, take time to think through the way you’re choosing to tell your story.
Connect with your customers first by expressing the why of your story. Tap into the emotional side of things – your mission statement, or reason for being – and begin to educate or build awareness from there. Let them know why you do what you do. Then, and only then, let them know the how and the what you do.
Remember, people engage with inspiring and entertaining content and inspiring brands communicate from the inside out.

Advertisers Are Struggling to Keep Up as Spending Shifts to Mobile

Connecting the Dots: Consumers Mixed over Connected Future

Connecting the Dots: Consumers Mixed over Connected Future

High enthusiasm, low awareness about the internet of things


The premise of the internet of things (IoT)—that everything can and will be connected—is by turns enticing and intimidating. Who wouldn't want the ability to cool a room before returning home or have the oven start to cook the evening meal remotely? What business wouldn't want to keep closer, more up-to-the-minute tabs on inventory thanks to stock items that can communicate levels and whereabouts?



On the other hand, the prospect of having to, in effect, “reboot” an entire home or warehouse when a virus strikes or the internet glitches is an unwelcome extension of the challenges consumers and enterprises already face daily with their various computing devices, according to a new eMarketer report, “Key Digital Trends for Midyear 2014: The Internet of Things, Net Neutrality, and Why Marketers Need to Care.”
A completely connected future, while increasingly within reach from a technological perspective, remains cloudy from the consumer standpoint. General awareness of the IoT is still low.
Consider the results of a May 2014 survey from SOASTA, a platform for performance testing websites and mobile apps. The survey found 73% of US adults were unfamiliar with the IoT, while only 6% of respondents described themselves as “very familiar” with it. However, when prompted with more details, 67% said they were excited about the promise of greater connectedness.

Enthusiasm about the prospective benefits of a more technology-driven future is a long-running theme that dates to the Industrial Revolution. Emblematic are the results of a March 2014 survey by Pew Research Center's Internet Project in conjunction with Elon University’s Imagining the Internet Center. Some 1,606 technology experts and highly engaged US internet users were polled about whether they thought the IoT would have “widespread and beneficial effects on the everyday lives of the public by 2025.” A significant majority—83%—said yes.

But the road to that technology-centered future will be long. Thinking of just one small niche within the broader IoT landscape—the smart home—most US internet users (85.0%) did not own a single smart home device, according to a May 2014 AYTM Market Research survey. And of that group, over half expressed little interest in owning one.

“Consumers have pretty limited awareness of the internet of things as a concept, but there is enthusiasm for a future punctuated by a range of new, internet-connected devices and applications,” said Noah Elkin, executive editor at eMarketer. “As more name brands get into the game, from Apple and Google to big-box retailers like The Home Depot, Best Buy and Staples, just to name a few, expect consumer awareness to grow. Just don't assume uptake will happen overnight.”
There is no standard definition for the “internet of things” (IoT). The term generally denotes an advanced level of networked connectivity between objects, platforms, systems and services that enables the exchange of data without human intervention. The premise behind the IoT is that any object, whether natural or manufactured, can gain the ability to transmit data over a network.

Monday, July 28, 2014

Five Shocking Facts That Will Change Your Entire Approach to Social Media

Five Shocking Facts That Will Change Your Entire Approach to Social Media


Social media is fraught with legend, hysteria, and mass confusion. Because of its intensely personal nature, we tend to approach social media with a lot of strong feelings about its effectiveness, lack thereof, best practices, and how things should be done.
Since most of us use Facebook, we think we know how effective it will be, or what kind of posts garner the most attention and interaction. Since we have a Twitter account, we have a sense of knowledge about how it works, and what a business should do (or not do) on Twitter.
All that is great, but how much of our social media behavior is founded upon fact? I decided to dig into the data and do some research. What I’ve extracted below are five surprising data points that will have a profound effect on how you approach social media.

1. Email marketing has an ROI of 4,300%.

Source: Direct Marketing Association
What? A statistic about email? You thought this was about social media, right?
My title is “Five Shocking Facts That Will Change Your Entire Approach to Social Media.” This statistic qualifies as shocking, and it impacts the way we approach on social media.
The basic fact is this: Email marketing has a huge ROI — way better than any social media marketing ROI can ever dream of achieving. Compare 4,300% that with the ROI of social media, which is crawling around on the floor. Is there even a comparison?
Take a look at this chart, released by Custora in 2013. They surveyed the owners of ecommerce sites to find out where these sites got their customers. Here are the top six sources:
acquisition by channel
Paid and organic search have the highest customer acquisition percentages. The next biggest contender is email. Based on its ROI — higher than paid and organic search — it’s a no brainer. Email marketing is awesome.
According to the chart above, the fascinating thing about email marketing is that its acquisition rates are rising dramatically. It has quadrupled over the past four years. Email marketing’s effectiveness far outranks any social media platform, and its growth outstrips them.
Even the customer lifetime value (CLV) of social media is hardly worth a second glance. Again, email marketing crushes social media by a huge margin:
customer lifetime value by channel
Simply put, email marketing is way more effective than social media marketing. It has greater effectiveness, better ROI, and higher CLV.
Learn this lesson: Spend more time and money on email marketing than on social media marketing.

2. YouTube has the highest engagement and lowest bounce rate.

Source: Shareaholic
Whenever we think of “social media,” we automatically think of Facebook, Twitter, and Google+.
What about YouTube? Check out these engagement stats!
  • Average time on site: 227 seconds
  • Average pages per visit: 2.99
  • Average bounce rate: 43.19%
How does this stack up against the rest of the social media landscape? Decide for yourself:
social media post click engagement
The Shareaholic analysis is based on post-click behavior, which refers to clicking on a link that a friend shares socially. As the Shareaholic analysis stated, “YouTube is the undisputed champion. YT drives the most engaged traffic.”
YouTube deserves more of your social media time and effort. You can’t afford not to put more work into creating and adding videos. The more YouTube content, the more you’ll engage your potential customers.
Learn this lesson: If you want engaged traffic, spend time optimizing YouTube.

3. Facebook drives more referrals than any other social platform.

Source: Shareaholic
Want to know which social media site sends you the most amount of traffic? It’s Facebook — by far.
Shareaholic analyzed metrics taken over four months, measuring the effectiveness of social media platforms. There was no contest. Facebook crushed the competition, asserting itself as the most powerful social media referral engine on the planet.
social media traffic referrals
Companies gripe and complain over the way that Pages have been squashed in the Facebook algorithm. I get that. Facebook wants more ad revenue.
But even though page interaction is shrinking, there’s nothing shrinking about the number of referrals that Facebook continues to drive. Simply stated, Facebook still drives more traffic than any other social media site, soaring way above its nearest referral competition, Pinterest.
social media traffic referrals
The reason why I’ve included this in my list of facts is because many marketers have become disillusioned with Facebook.
Kevan Lee of Buffer writes:
Nowadays, when I endeavor to check my Facebook statistics, I do so with the window open, birds singing, a pint of ice cream at my desk, and party jams playing on my jambox….Checking Facebook statistics has been bad news for a lot of us lately as we wrestle with declining numbers and shrinking reach.
While Kevan is staving off Facebook depression with ice cream parties and fresh air, Eat24 just decided to end the relationship with a “How dare you!”
6-how-dare-you
The super long breakup letter that went into overtime with a P.P.P.S.S.S. was full of foodie talk and hurt feelings. But they were gone from Facebook for good.
If you have a fan base below 10,000 (that’s most of us), and only 28 interactions per post, please don’t be discouraged, don’t binge eat, and don’t write a breakup letter. You’re right where you ought to be, as ranked by Social Baker’s average interaction chart.
average interactions by page size
And if you’re in an unsexy industry like finance or telecom, you can expect your average post interaction to be lower, than say, an alcohol or fashion site.
average post interaction by industry
In spite of the apparent downward spiral of Facebook metrics, I suggest not giving up on Facebook. Though it is fickle, and though your page isn’t featured at the top of everyone’s news feed, and though you may have to turn up your party music while you check your stats, Facebook is still giving you referrals.
As Kevan’s brilliant article concluded — “A counterintuitive way to combat Facebook reach: Stop caring about it.”
Learn this lesson: Stick it out with Facebook.

4. Pinterest pins are worth 78 cents each.

Source: Piquora
First off, a Pinterest disclaimer (or two), and then a Pinterest happy dance.
The first disclaimer is this — Pinterest has high bounce rate (53%) and low engagement. Disclaimer number two: Pinterest doesn’t work for everyone. If you are into food, crafts, photography, weddings, design, fitness, humor, travel, fashion, and inspirational quotes, then Pinterest is killer. It holds promise for some, but not for all.
The happy dance is this — Pinterest is the second biggest social media referral platform. Though it trails Facebook distantly, it still beats out Twitter, YouTube, Google+, and LinkedIn by a sizeable margin.
Now, let’s talk about ROI. Pinterest, as it turns out, does have one. But it’s a delayed reaction. When a pinner curates his or her pinboard, it takes a while for there to be social buildup, let alone revenue. Unlike Twitter, which has a short half-life, Pinterest visits increase as time goes on. It’s like wine. The older, the better.
cumulative visits from sites oldest pins
As it turns out, the revenue doesn’t start happening until more than two months after pinning. Pinners spend more time exploring other people’s pinboards then they do searching for stuff offsite to pin. The average Pinterest pin gets 10 repins, but it takes time for those pinners to start repinning pins. This leads to a corresponding delay in revenue.
cumulative revenes and orders from sites oldest pins
Pinterest is money, but it’s slow money. It’s like investing in a CD or a bond. The egg just takes a little while to hatch.
Learn this lesson: Use Pinterest. And be patient.

5. 65% of Twitter users expect a response in under two hours.

Source: Lithium
Customers use Twitter like a company hotline. If you don’t respond within minutes, you’re toast. Here are the lofty chronological expectations of Twitter users, in all their statistical glory:
twitter response times and customer happiness
Image from Hubspot.
The Lithium study that produced this statistic had the headline, “Consumers Will Punish Brands that Fail to Respond on Twitter Quickly.” The flip side, “consumers will reward brands that harness Twitter’s power to meet their rising expectations.”
What kind of punishment are we talking about?
  • “38% feel more negative about the brand.” As a result, they may no longer purchase from the company.
  • “60% will take unpleasant actions to express their dissatisfaction…publicly shaming the brand on social media” In other words, they may spread their grief further on Twitter. It’s easy to tweet off a 140-character-or-less gripe about the company. “74 percent of customers who take to social media to shame brands believe it leads to better service.”
What’s in it for brands who are on the ball, and who respond to Tweets instantaneously?
  • 34 percent are likely to buy more from that company;
  • 43 percent are likely to encourage friends and family to buy their products;
  • 38 percent are more receptive to their advertisements;
  • 42 percent are willing to praise or recommend the brand through social media.
There’s a lot to gain by a quick response, and a lot to lose if you don’t. So if you get that Twitter notification on lunch break, don’t wait. Step on it, respond right away, and please your customers’ socks off.
Learn this lesson: If you’re going to use Twitter, stay on top of it.

Conclusion

Here are the five lessons we need to learn
  1. For right now, spend more time and money on email marketing than on social media marketing.
  2. If you want engaged traffic, spend time optimizing YouTube.
  3. Stick with Facebook.
  4. Use Pinterest. And be patient.
  5. If you’re going to use Twitter, stay on top of it.
Facts are indisputable, and the action points are obvious. Let’s not get lost in the romance and novelty of social media. Let’s stay clear headed, smart, and engaged. There’s power in social media, and we need to handle it in the right way

Virtual Reality: Advertising's Next Big Thing?

Virtual Reality: Advertising's Next Big Thing?

First Movers Coca-Cola, Nissan, HBO Bet on Tech's Future for Marketing

By Published on . 0


Oh baby! Virtual reality gets real
Oh baby! Virtual reality gets real Credit: Getty Images
You're on a wooden plank. Pivoting, you find yourself on the precipice of a deep pit. Taking unsteady steps, you cross with your arms outstretched for balance. You teeter to the end, exhaling in relief—and are told to about-face and plunge in.
None of this is real, a clearly evident fact. Motion sensors are strapped to your ankles and $39,000 black goggles, made by a company called NVIS, whose customers include the U.S. Army and Navy, cover most of your face and sit heavily on your head. But still, you're terrified.
So you cheat and close your eyes to jump.
It's a bit like the leap marketers such as Coca-Cola, HBO and Nissan are taking into the nascent world of virtual reality. Well aware of the hurdles agencies, brands and the media must overcome first—not the least of which are the current cost of the technology and the cumbersomeness of the equipment—these first-movers are wagering on a marketing future where goggles can be bought at Walmart for $300 and brands can deliver visceral consumer experiences. Imagine Budweiser taking you behind the plate at the World Series or Pepsi giving you a virtual front-row seat at a Beyoncé concert.
But since marketers still need to provide the hardware, their efforts are currently confined to experiential marketing at large events, like the South by Southwest interactive festival and the Detroit Auto Show. However, the pace of innovation is likely to accelerate as new uses emerge—if, of course, more eyeballs migrate to VR technologies.
That may start to happen soon. Research firm MarketsandMarkets forecasts that manufacturers of VR and augmented-reality hardware—including smart glasses and head-mounted displays—will generate $1.06 billion in revenue globally by 2018.
"Everyone who does something [in VR] now, for the next five years, is going to be inventing something," said Aaron Clinger, technical director at Venables Bell & Partners. "That's really exciting for those of us who have seen the mobile and web revolution."
Thanks to Coke
Virtual reality could be transformative for the ad industry. Instead of interrupting people with ads, marketers could sponsor virtual experiences people actually seek out. But first, the ad industry has to understand this new playground.
"The mistake every new medium makes is trying to take what the old medium was. They read books on the radio at the beginning of radio; in the beginning of cinema, they shot plays. There's a completely new form of storytelling that has to evolve for this new [VR] canvas," said Chris Milk, a filmmaker and music-video director. Last year he shot a short film of a Beck performance for automaker Lincoln's rebranding campaign. He also created a rendering of it in 360 degrees with six GoPro cameras.
Consider Coca-Cola's approach. Last month it staged a VR experience at the World Cup, where participants entered a replica of the locker room at Brazil's Maracana Stadium; then, after putting on VR Oculus Rift goggles, they moved from the locker room to the pitch and played on the field, all without getting up from their seat.
Matt Wolf, Coca-Cola's head of global gaming, said there's branding within the experience, but the more valuable aspect is that viewers are getting access to something that wouldn't otherwise be possible. "It's about the authenticity of being inside that stadium," he said. "Yes, thanks to Coke."
Coke put people on World Cup playing field.
Coke put people on World Cup playing field.
Then there are business-to-business applications. Already one marketer, insurer Travelers, is using VR to train employees in worker safety by virtually showing the consequences of not following the rules. But on a broader scale, market forces are at work to bring VR to the masses. Oculus is probably the most recognizable brand name in VR, due to Facebook's deal in March to acquire the maker of the eponymous VR goggles for $2 billion.
The Oculus Equation
The details of Facebook's plans for an integration are still unknown, but CEO Mark Zuckerberg has conveyed in no uncertain terms that his vision is to use Oculus's tech for social networking—and that his company is making a bet on the next emergent computing platform after mobile. (Which would you prefer: hanging out with your faraway friend in a virtual environment or keeping tabs on her via her occasional status updates?)
"Oculus has the potential to be the most-social platform ever," Mr. Zuckerberg said when announcing the deal in March. "Today social networks are about sharing moments, but tomorrow it will be about sharing experiences."
Facebook isn't the only tech giant in the race. Sony is working toward a commercial release of its VR headset, "Project Morpheus," and Samsung is also reportedly developing VR goggles that connect to its phones and tablets.
Assuming that VR headsets become less bulky and more available to consumers at an affordable price point in 2015, the zeal among advertisers to test the technology could grow intense.
Virtual reality goggles
Virtual reality goggles Credit: Sony
Currently, higher-end headsets used by academic researchers and institutional laboratories can go for as much as $50,000. But the Oculus Rift development kit—aimed at developers, not consumers—costs $350 for pre-order, and Oculus CEO Brendan Iribe told PC enthusiast site Ars Technica that Mr. Zuckerberg wants to sell the consumer version for the "lowest cost possible."
"The ones that are currently on the market haven't hit that sweet spot between functionality and price yet, but Oculus is getting pretty close," said Sun Joo (Grace) Ahn, an assistant professor at the University of Georgia who researches VR.
The most likely suspects to take the lead on developing VR experiences are brands like General Electric and Audi, which have cultivated reputations as early adopters of technology. However, the usefulness will be limited for other brands, said David Berkowitz, chief marketing officer of Publicis Groupe's MRY. JC Penney, for example, can successfully sell products online via jcpenney.com and Pinterest without setting up a virtual store, which, realistically, consumers may not want to spend their time browsing.
There's an obvious application for movie studios and record labels, which are already in the business of creating content that people seek out, but for more pedestrian categories, it might be harder.
"If you're a packaged-goods company, I don't think people are really going to want to wander the aisles of a virtual grocery store," said Aaron Richard, innovation strategist at San Francisco agency Heat.
Utility vs. novelty
Before brands make big investments in creating experiences, a broad swath of consumers must adopt VR technology and its immersive, 360-degree world. That's a big if, but numerous startups, filmmakers and production companies are betting they will.
Aiming to prove that VR isn't just for first-person-shooter gamers, Montreal-based filmmakers Félix Lajeunesse and Paul Raphael have created "Strangers—A Moment with Patrick Watson," an eight-minute piece showing a pianist in his apartment with his dog, playing music.
After the glowing reception of that effort, the duo decided to dedicate themselves to VR work, developing a 360-degree camera system they may eventually seek to license out. They've had discussions with ad agencies interested in branded experiences, but Mr. Lajeunesse said they're more focused on the music industry right now.
VR applications are looking up.
VR applications are looking up.
While it's bound to be gamers driving the adoption of VR headsets, a larger consumer market might not be far behind—especially as studios and developers churn out different types of content. And brands already honing their VR chops may have a first-mover advantage.
"There's a learning curve, and it's different from anything else you've done before," said Dario Raciti, director-gaming at OMD's Ignition Factory. "Everything is like starting from zero and trying to figure out what is the best experience for the consumer, whether it's a game, live action, concerts or CGI."
But from another point of view, VR could be another much-hyped flash in the pan. There are strong uses for this sophisticated tech in disciplines ranging from gaming and military training to education and behavioral therapy (for people suffering from PTSD or even arachnophobia). That doesn't mean there's a niche for marketing, however.
In Mr. Berkowitz's view, augmented reality is an example of a technology that has not lived up to its hype, even though brands continue to play with it, and VR could follow the same path. (A recent high-profile example of branded AR work is McDonald's' World Cup promotion; it transformed its fry boxes, making them into the entry point for a game on a soccer-themed app.)
He pointed to the buzz around Yelp's AR feature "Monocle," which lets its app users see nearby venues in the direction they're pointing their phones. It debuted with great fanfare in 2009—a Gizmodo post entitled "Augmented Reality Yelp Will Murder All Other iPhone Restaurant Apps, My Health" was in the mix of coverage—and then fell off people's radar.
"You realized it was so much less effective than just looking at a two-dimensional map and seeing everything in one place," Mr. Berkowitz said. "It was a fun party trick for a week. Agency folks like me went and showed clients."
For any new technology, the question is whether the utility will outlive the novelty. "You need a use case for it beyond the PR alone," he said.
VR and marketing today
Entertainment marketers are a natural fit for VR, as HBO has learned. Its 90-second rendering of the 700-foot ice wall from "Game of Thrones"—which has sound effects to reproduce wind and actual shaking from the floor to enhance the experience for viewers as they ascend in a virtual elevator—is on a world tour. As of June, it had been seen by 83,000 people in cities including Oslo, Belfast and Austin, Texas.
'Game of Thrones' VR experience took three months.
'Game of Thrones' VR experience took three months.
Visual-effects studio Framestore worked for three months on the project, rendering the 360-degree scene in CGI. Framestore's head of digital, Mike Woods, said the company has been flooded by requests for VR work since then, and they've accepted some projects under non-disclosure clauses, some of which are with marketers.
Despite the newness of this type of work, the cost is relatively low, according to Mr. Woods. "It would fall comfortably within the budget costs of 90 seconds of any sort of high-quality fully CGI TV spot." He declined to give a specific figure, but a production executive put the price of a 90-second CGI spot at $1 million to $2 million.
Several agencies Ad Age contacted reported that they're working on VR projects but aren't at liberty to discuss details. Venables Bell, for example, is working on a sports-related project for a client in which putting on Oculus goggles would place the viewer on a playing field in an athlete's world.
Nissan's Motor Show promotion
Nissan's Motor Show promotion
Other brand VR work includes an experience developed by AKQA London that let attendees at last year's Tokyo Motor Show and January's Detroit Auto Show configure a Nissan IDx concept car. Visitors donned Oculus goggles and navigated virtual landscapes, where they had to make decisions. Choosing whether they were ninja or samurai, for example, would determine what kind of engines their cars would have.
Seeing is believing
When David Sackman first experienced the unnerving virtual pit in which participants walk across that thin plank at Stanford's Virtual Human Interaction Lab, he became fascinated by the technology and the sensations it can produce.
"Your rational mind cannot take over," said Mr. Sackman, CEO of the market research firm Lieberman Research Worldwide. "Your non-conscious is engaged."
He started visiting the lab about a year and a half ago and tried out some of the lab's social experiments designed to affect human behavior. For example, cutting down a redwood tree in a virtual forest would cause birds to fly away and the woods to become silent. After that experience, people might use fewer paper towels when cleaning up a spill.
From there, a business idea started to germinate. Mr. Sackman now has an "applied VR" division dedicated to working with brands on VR solutions. It's already done a project for Travelers Insurance to develop a workers' safety product. In that experience, rendered by VR software company WorldViz, the viewer flies around a warehouse and saves five co-workers from various injury possibilities, such as getting run over by a forklift. The idea is that workers who go through the experience will be inclined to take more precautions in the real world.
Mr. Sackman said there are currently 10 to 12 large companies taking serious interest at a C-suite level in the VR division. One is a credit-card company looking to build a VR product to help people learn to use credit more responsibly.
For now, the projects are constrained to venues where companies can make VR headsets available; they're not targeting homes.
Experiencing virtual reality.
Experiencing virtual reality.
Obviously in a year or two when Sony and Samsung and Oculus release goggles for home use at $200 to $300 each, and they can be used with the 30 or 40 million home-gaming systems, then it gives you a broader array of applications," Mr. Sackman said, noting that it's probably a six-figure commitment to build a VR product with Lieberman right now. "But we're confining ourselves to things that are doable today."
The business model is still being worked out. Lieberman is barred from selling the workplace safety product to Travelers' competitors, but may sell it to companies with manufacturing facilities or factories. In some cases, the intellectual property will be proprietary to the client, but where there's a broader commercial application, it may be sold to a wider market, with the corporate partner getting a share of the revenue.
Mr. Sackman said Lieberman is having conversations with Silicon Valley venture-capital firms, though the company hadn't been looking to raise money.
"Our belief is, in a couple of years, we'll certainly spin it out into a separate company," he said.
Zombies may lead the way
The VR ecosystem—including companies focused on display, like Oculus, and startups developing motion-sensing and content-creation technologies—is growing as venture-capital money flows in that direction. Oculus VR, for example, raised $75 million a few months before Facebook bought it.
Some are already thinking about how marketing could become a part of their business, even if it's not their core focus.
Take Survios, a Los-Angeles based company with a full-motion VR prototype that includes a head-mounted display and tracking for the entire body. It recently raised a $4 million round and intends to bring a product to market next year.
While Survios' focus is on games and the physical dynamics of game play, co-founder James Iliff already sees marketing applications in it—even with a zombie game.
"All that software and design work focused on making your hand look like it naturally wraps around a gun and being able to pick up objects with two hands—that nuance can be applied to a vacation simulator where you're on a beach and want to pick up a seashell," he said. One can easily imagine that scenario for Norwegian Cruise Lines' "The sea is calling" campaign, which shows people in TV ads picking up shells to hear the voice of the sea in them.
Mr. Iliff said brands have approached Survios, but it has declined those contracts because it does not have capacity for short-term projects.
Then there's Palo Alto-based Jaunt, which is aiming its 360-degree camera and the software that goes with it at content creators in Hollywood and elsewhere. The company recently raised $6.8 million from investors including U.K. media conglomerate British Sky Broadcasting, which Jaunt is already in production.
Jaunt's virtual reality camera
Jaunt's virtual reality camera Credit: Jaunt
Marketing and Megadeath
Jaunt's demo reel—seen via Oculus goggles—runs the gamut of uses for live-action VR. A viewer sits in the San Diego backyard of Megadeth guitarist Dave Mustaine and listens to him play; stands on a promontory overlooking the Golden Gate Bridge; and finds herself in the middle of a horror film, below decks on a ship, where she hears screams and catches glimpses of a squid-like creature at the end of a corridor.
Scott Broock, the company's VP-content, said he met with various CMOs in Cannes last month and showed them the demo with the idea of seeding their imaginations for future marketing programs. He said he believes the future of VR for marketing will be in thrilling branded experiences—think Ken Block's "Gymkhana" viral videos where the name of sponsor DC Shoes barely appears—and behind-the-scenes access.
One of Jaunt's content partners is already thinking about VR as a marketing tool. New Deal Studios is making a feature film scheduled for release next year, and it's shooting a few extra segments with a Jaunt camera. The idea is to build excitement around the release of the film among tech's early adopters who are likely to have VR headsets starting next year.
"You have a long production process on a feature film," said New Deal Studios CEO Shannon Gans. "But when you're creating virtual reality, you can give people an experience and a community."
Ultimately, the best applications of VR in entertainment and marketing are probably still to be uncovered. But futurists are already seeing the possibilities."This is a completely new platform for art, gaming, storytelling and communication," said Mr. Milk. "I think what it has that's different than almost any other form of media and art is that it truly is immersive and gives you a sense of presence."

Delighting People in 140 Characters: An Inside Look at JetBlue's Customer Service Success

Delighting People in 140 Characters: An Inside Look at JetBlue's Customer Service Success

by Lindsay Kolowich

Date July 28, 2014 at 8:00 AM

jetblue_social_supportWhen you tweet at a company that has over 16,000 employees, how quickly do you expect them to respond to you? How helpful do you think their answer will be? And, would you expect the person who reads the tweet to follow up on the issue in person?
You may not have very high expectations for most large companies, but JetBlue has done a great job differentiating themselves on Twitter by finding clever ways to exceed our expectations.
"We call ourselves a customer service company that happens to fly planes," Laurie Meacham says. (While this phrase isn't original to JetBlue, it's been in common use within the company since their first flight in 2000 -- before it became popularized by Zappos COo/CFO Alfred Lin.)
Laurie's been at JetBlue for over eight years now and has spent the last two as Manager of Customer Commitment. I had the pleasure of sitting down with her last week to chat about JetBlue's uniquely dedicated approach to Twitter as a customer service outlet, rather than simply a social media marketing tool.
"We're all about people," she explained, "and being on social media is just a natural extension of that. It's no different than any other part of the airline."
Let me give you a taste of what I'm talking about here. In January of this year, a man named Alex tweeted at JetBlue asking about their standby policy -- namely, why he would be charged $50 for getting on an earlier flight than the one he was ticketed for. Within three minutes, JetBlue had replied.
JetBlue answered Alex's question -- and he wasn't even mad about it. At this point, most companies would pat themselves on the back and call it a job well done.
... But not JetBlue. The JetBlue employee in Salt Lake City who responded to his tweet sent it to the JetBlue folks at Logan Airport in Boston. The folks at Logan Airport studied Alex's Twitter profile picture, and then walked around the terminal until they found him so they could follow up with him in person.
Half an hour later, Alex tweeted again -- this time about how amazed he was at the steps JetBlue had taken to provide him with an unexpectedly exceptional customer service experience.
Laurie told me this story with a smile on her face, naming it as one of the small wins that has stuck with her this year. Those small wins and acts of goodwill add up, she explained.

How JetBlue Uses Twitter for Customer Service

The employees behind JetBlue's Twitter handle aren't just social media marketers. There are three teams that tweet from the @JetBlue account: the marketing team, the corporate communications team, and Laurie's team -- Customer Commitment. Her team is made up of seasoned customer service professionals who answer customer service tweets on Twitter instead of on the phone.
Moving customer service to Twitter was a natural move for JetBlue, Laurie explained. That's where a lot of their customers were talking about them -- from thanking them for the ample legroom to asking about flight status updates.
But JetBlue doesn't just respond to everything blindly. They prioritize responding to tweets where they'd be contributing value. "We recognize how important it is to measure the ROI of our social media efforts, but we actually make a point of not measuring response rate on Twitter," says Laurie.
In other words, employees don't feel pressured to hit a response goal by sending quick responses to every single tweet that comes in. "We want our employees to engage smartly, and for the conversations to be organic and natural. We look for opportunities to add value and connect with our customers, not just respond to every single mention that comes our way."
And with 2,500-2,600 Twitter mentions every day, you can bet JetBlue has people working hard to cover their social media accounts 24/7 and read every single tweet that comes in. And, impressively, they average a 10-minute response time. I tested this out myself before boarding my JetBlue flight last weekend. Sure enough, the Saturday night team responded in 10 minutes on the dot.
JetBlueResponseTime
Even though I didn't have a question or complaint for them, the response added a little sunshine to my day -- and that is a form of value in and of itself.

Building the Customer Commitment Team

Believe it or not, JetBlue didn't always have a big support team behind their tweets. It wasn't until 2009 that JetBlue customers started asking too many customer support questions on Twitter for the small team to handle without help. At that time, JetBlue was nine years old and there were only four people fielding @JetBlue mentions.
But between May and August of 2009, something kind of crazy happened: @JetBlue's Twitter follower count doubled from 500,000 to over a million in just a three-month period. The customer support questions were pouring in, and to keep up, the customer commitment team knew they'd need to scale the team.
Almost immediately, the team requested headcount to help field questions and monitor the social media accounts around the clock. They looped in the JetBlue leadership team and educated them on what customers were saying and asking on Twitter -- and the value of JetBlue's Twitter responses back to their customers. It helped that responding to these tweets probably deflected some calls to the 1-800-JETBLUE contact center.
Once they were approved for hiring, the question became: How do you hire a relatively large group of people who care as much as the current team does? Where do you find high quality customer service people who are familiar with the airline industry and can learn to emulate your smart-and-witty voice?
For JetBlue, the answer was hiring from within. They sent out an internal call for job openings and hired only people who were already trained customer service agents with JetBlue. Five years later, the team is 25 people large.

Communicating and Collaborating From Great Distances

These 25 employees are all based in Salt Lake City, Utah, and they represent every single JetBlue flight on Twitter. To mitigate communication challenges, JetBlue set up a robust internal network to keep all social media teams informed and get information to and from every airport efficiently.
To keep everyone in the loop, one JetBlue team member is responsible for preparing and sending out an internal newsletter to the social media teams at about 5:00 A.M. every morning, which outlines current promotions and news they might get questions or comments about on social media.
Employees also share an ongoing thread where they can ask questions, share stories, and tag other people in the organization so issues can be fixed as quickly as possible. "Yesterday, a customer tweeted at us about an event JetBlue was sponsoring that the social media team wasn't aware of," Laurie told me. "In less than a minute, he confirmed with one of our PR people that we were sponsoring it, and he could tweet back to the customer a few minutes later." They also use phone, email, and instant messaging to communicate with one another.
If a specific airport gets mentioned, members of Laurie's team send an email to customer service representatives at the corresponding airport. Once the Salt Lake City team responds to the tweets, it's up to the teams at each airport to take it further if they choose to.
"The biggest wins this year are stories coming out of Boston," Laurie told me. JetBlue has the most flights out of Boston than any other airline. "Our Boston team is our most engaged team. Really, it's the people who work there that make it so special."
Take JetBlue customer Alexa, for example. She jokingly tweeted that she expected a welcome parade at the gate when she returned home to Boston. Laurie's team in Salt Lake City responded:
But when the JetBlue folks in Boston saw that tweet, they took it to another level -- and ten of them greeted her at the gate with signs, smiles, and marching band music.
Because hey, why not?
Laurie told me about another time this year, when a customer tweeted at JetBlue that he was about to board his 100th JetBlue flight that year. He didn't mention where he was flying to or from, but Laurie's team grabbed his name from Twitter and looked up where he was flying out of. It turned out to be Boston, and the Boston team greeted him at the gate with cupcakes and a banner.
It's magical gestures like these that set JetBlue apart from many other big brands, let alone other airlines. Sure, other brands answer customers' questions on Twitter, but how many of them have dedicated customer service professionals behind their Twitter handles? And how many of them use these Twitter conversations to delight in the real world, too?

Responding to Negativity

But as you can imagine, it's not always rainbows and butterflies in the airline industry. Not only are airlines heavily regulated, but there are a lot of moving pieces involved in giving customers great experiences. Plus, let's face it ... air travel isn't exactly fun and sexy.
I asked Laurie about a big challenge her team has faced this year and how they responded to it. She told me a story from earlier this year when JetBlue -- and all airlines -- had major disruptions to their schedules because of winter storms in early January. Flight delays and cancellations seriously impacted thousands of people, including those who were traveling home from vacations.
Customers were displaced, plans changed, and many travelers couldn't get home for days -- and when that happens, they often take to Twitter. "Our volume of Twitter mentions went way up," said Laurie. "We couldn't change the weather, we couldn't make conditions safe to fly, and we couldn't get them where they needed to go. But what we could do -- and did do -- was keep people updated on what to expect."
And sometimes, the team just has to accept the hits. And during large-scale events like those winter storms, there can be many hits. But Laurie's team empathized with their customers on Twitter, informed them, and tried to help whenever they could.
"But we also don't apologize to everyone," she said. "We’re definitely sorry they’re having to deal with this, but ultimately, there are reasons that flights get cancelled and if we ignore those reasons, we’re putting everyone at risk. Also, apologizing to everyone just makes us look apologetically sad and like we may not have a handle on things, when the truth is, we’re doing all we can to get people where they want to go."
JetBlue has had their fair share of crises like any other airline, and it's something Laurie talks about with the team frequently. "Social media is powerful and things can go south so quickly, so we talk to the team all the time about how to respond appropriately, when to blow the whistle, when to contact Corporate Communications."
Despite these challenges, JetBlue maintains a 79.1% on-time arrival rate, and a customer complaint rate of just 0.79 out of every 1,000 passengers. They're right at the top of the industry.

Looking at the Future

I asked Laurie about branding initiatives from here on out. "We're doing more with social media content, especially on Instagram and Facebook," she told me. She and her team will be experimenting with what resonates with customers on those platforms, so keep an eye on their Instagram and Facebook accounts.
In the meantime, her team of 25 will continue working around the clock to reply to customer tweets with the same dedication their customer support teams respond to customers on the phone. They've certainly set the bar high in the airline industry -- they now have 10 consecutive J.D. Power & Associates awards for "Highest in Customer Satisfaction Among Low-Cost Carriers in North America" -- and we hope to see other brands take the hint from JetBlue's Twitter successes and make similar customer service efforts going forward.

Friday, July 25, 2014

Could Beacons Push People off the Couch and to the Store?

Could Beacons Push People off the Couch and to the Store?

Retailers look to beacons to improve in-store experience, gather consumer data

  • Jul 25, 2014
   
While Bluetooth low energy (BLE) technology isn’t exactly new, when Apple introduced iBeacon as part of the iOS 7 update in September 2013, the move was viewed as a seal of approval. Marketers across industries noticed, and app developers scrambled to take advantage of the capabilities, according to a new eMarketer report, “How Beacons Are Changing Mobile Marketing: An Overview.”

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There are a variety of factors accounting for the recent buzz surrounding beacons. One is the desire to improve the in-store shopping experience.
No one is seriously declaring the death of the retail store, but improving the in-store experience is top of mind for many—and mobile can be a catalyst. “Brick-and-mortar businesses need to come up with much more compelling reasons for consumers to get off the couch and actually show up to the store,” said Schuyler Brown, vice president of marketing at beacon provider Nomi. “And mobile apps powered by microlocation marketing, I think, is a key component to make that a compelling argument.”
Rachel Pasqua, senior partner and mobile practice lead at MEC Global, said clients are open to beacon’s capabilities: “I can’t think of a single client that isn’t very interested in the potential with beacons. ... Anything that will make shopping easier and more frictionless for people is going to win.”
There may be a lot of interest in beacons, but US retailers surveyed by the e-tailing group in Q1 2014 ranked iBeacons and BLE last among technologies they were employing this year to enhance the in-store experience. This is not completely surprising since tablets, inventory access and digital receipts are more proven tactics for omnichannel retailers.
Beacons also help retailers collect consumer data once consumers are in-store. Beacons can track shoppers and see how long they spend in certain departments, the paths they took and how offers affect their purchases—and also allow more in-store measurability. “The biggest opportunity is going to be when people can see the attribution of an in-store visit against all of their digital advertising,” said Scott Dunlap, head of product at Branding Brand, a mobile commerce vendor. “It’s going to put a lot of clarity on that and really help them get smart.”

Wednesday, July 23, 2014

Startup Turns Kevin Bacon And Other Celebs Into Content Marketers for Brands

Startup Turns Kevin Bacon And Other Celebs Into Content Marketers for Brands

WhoSay Lineup for Canon Includes Bacon, Eva Longoria and Mario Batali

By Published on 1
Kevin Bacon in a video for a Canon campaign.
Kevin Bacon in a video for a Canon campaign.
WhoSay, a startup that helps famous people post to social media and then curates their feeds for fans, is enlisting celebrities like Kevin Bacon, Eva Longoria and Mario Batali to serve as content marketers for a campaign with Canon.
Now in its fourth week, the Canon campaign -- called "Bring It" -- is the largest brand ad campaign yet for WhoSay, which was co-founded in 2010 by talent agency CAAand entrepreneur Steve Ellis. It comes less than a year after former Newsweek Daily Beast President Rob Gregory became chief revenue officer.
"We're turning celebrities into publishers -- building an entertainment media company," said Mr. Gregory, who earlier was also publisher of Maxim, Rolling Stone and Men's Health.
The effort comes as Canon is trying to turn around its camera business, where sales plunged 22% in the first quarter of this year compared with the same period in 2013 as consumers increasingly opt for smartphones and their high-quality cameras. The company is scheduled to report second-quarter earnings on Thursday.
Tokyo-based Canon spent $251.7 million on U.S. advertising in 2013, a 10.6% decline from the prior year, according to the Ad Age Data Center. The bulk of it, $172.3 million, went to non-measured media, which includes digital video and product placement.
Canon and its agency Grey declined to comment on the campaign. Mr. Gregory declined to say how much Canon spent on it with WhoSay or to discuss WhoSay revenue.
WhoSay consists of two apps and a website. One app is invite-only and allows famous people to post messages across multiple social media accounts, track engagement on their posts and monitor the number of people following and mentioning them.
The app also includes a private message center where brands can offer gifts to WhoSay users. Bose, for instance, used the feature recently to give headphones to about 100 WhoSay users, according to Mr. Gregory, who said no money changed hands between Bose and WhoSay. No strings were attached, he added, though some who took the product posted selfies with the headphones.
"We think there's an opportunity to monetize it down the road, maybe as part of a larger campaign," he said.
Celebrities that CAA represents comprise just 17% of the 1,600 celebrities signed up for WhoSay, Mr. Gregory said.
The other app and its companion website are for regular consumers, who can scroll through a stream of celebrity posts or follow specific stars.
A spokeswoman for WhoSay declined to say how many people had downloaded the app. She said 2.5 million people have registered with WhoSay either through the app or on the website and have set preferences for celebrities they want to follow. The company is compiling first-party data on those users to use in ad campaigns, Mr. Gregory said.
In June, WhoSay's unique visitors in the U.S. across desktop and mobile reached nearly 2.6 million, a 7% increase over the month a year earlier, according to ComScore.
WhoSay runs ads on its website, most prominently right now in the form of headline-recommendation modules from Disqus, but the Canon campaign marks a broader effort to tap WhoSay's network of celebrities to create branded content campaigns for brands who want their products seen in stars' hands.
Web publishers as a whole have struggled with downward pressure on display ad rates online, fueled by automated auctions for an ocean of ad inventory, and sometimes responded by pushing into so-called native advertising, which tries to draw readers' attention by mimicking the look and tone of the site.
"We figured out pretty quickly that if we were in that shrinking middle between programmatic and native content, then it's a race to the bottom," said Mr. Gregory.
For "Bring It," Canon and Grey worked with WhoSay to identify a dozen celebrities they would enlist to capture videos and still images using a Canon camera. A team at WhoSay edited the raw footage into short video clips, which the celebrities share on their social media accounts.
"It helps the brand because they're getting these videos out to millions of people," said Carlos PenaVega, star of Nickelodeon's "Big Time Rush" and one of the 12 celebrities working on "Bring It."
"We worked with Canon on a media plan and a target for impressions for the campaign," Mr. Gregory said. Celebrities were paid a "small fee" to be part of the campaign, he added -- and they got to keep the cameras.