If you think about it, intention, action and reaction is only about 1/4 of a brand’s value. The customer controls the remaining 3/4 of the brand’s value based on their perceptions of how the company delivers, whether it be product quality, service and fit with the customer’s needs, values and expectations.

Company’s influence their brand value through interactions. Customer’s control brand value.

If you got up this morning believing your company is in control of its brand, your year is already off to a rocky start.

The good news is it’s only January 3. You still have a few days to make changes.

Will you make them?

You cannot control your brand | Dave Harkins

I decided to try a little social media experiment at the Licensing Expo to see if we could get into the attendees life stream and create personal engagement.  We advertised our presence on Twitter in print and on signs in the booth, we engaged followers of the Licensing Expo Twitter feed (#LX9) on the floor, and we brought a magician to the booth to create a different life experience on the show floor.

Were we successful?

Our Twitter follower numbers are up modestly since the advertisements began to appear, but the real success comes from the buzz we generated on the show floor.  We tweeted multiple times a day, awarding prizes, sharing memorable visits and talking about our booth activities.  The folks at the Licensing Expo and others took notice and retweeted.  Many booth visitors said the tweets were the reason for stopping.

It seems that we were not only successful in getting into the life stream of attendees, but once we gained their attention we also did well to create a memorable experience (with our magician) when they engaged.  This good memory we helped to create launched many deeper conversations about our brand and our opportunities.  Although, had we not made good use of the moment when we captured their attention, attendees would have been off to the next thing.

Some have said this was a successful use of the digital channel, or perhaps  savvy social media marketing.  Maybe, although I no longer believe in marketing channel silos when it comes to building customer relationships (see my 2003 whitepaper, Customers are Channel Neutral for details).  Customers effortlessly move between channels, so our old definitions are no longer truly relevant-except to say that the customer experience must be consistent regardless of when and where the customer connects.  Today, marketers must subtly connect, be accepted in the life stream, and engage with passion so that it creates a memory for the customer.  So, it was not the use of the social media that mattered in our experiment, rather it was the memory we helped to create.  Social media and digital technologies are only tools to help spread the message.  What is most important for marketers to remember is simply: great stories and memorable experiences spread quickly to build brands–the channel and the tools are irrelevant.

With people from all over the world attending, the Licensing Expo provided a microcosm of what is happening in our culture.  Our personal and work lives are intertwined and we engage both regardless of our location.  Life is no longer exclusively defined by what is happening in our physical presence.  For many of us it resides in the palm of our hands and is illuminated by a tiny screen. As marketers, we must adapt to these changes without being intrusive or obnoxious if we are to keep our brands relevant.

As I see it, this ever-present digital and wireless connection to the world can no longer be called a “channel.”  Digital technologies simply and effortlessly extend the connections in our lives; and life connections are not channel dependant.

Digital is not a channel; it’s a life-connection tool. | Dave Harkins

One can hear, but not be listening.  One can listen, but not really hear what’s being said.  Either way, the conversation goes on just the same.  People are talking to you and about you, but you may not be making the connection that its “you” who is the topic of the conversation.  Take it from a guy who has had the benefit of hearing impairment most of his adult life.

Those same conversations go on about organizations and brands every day.  Everyone talks, but few organizations really listen.  It seems to me that most organizations are “hearing or listening impaired,” and the older the organization the worse the problem.  Granted, most organizations try to hear what is being said, but some are still using an old-fashioned hearing aid (ear trumpet).  There are others who let their hearing aid batteries weaken, or worst of all, still others have removed their hearing aids because they don’t like what their hearing.

Don’t believe me?  Do you work for any of these organizations?

The Ear Trumpets
Organizations listening to customers with the ear trumpet funnel many voices down a long tube where only the loudest are heard.  In an organization, this is like sending all the calls to “customer service” or the “help desk.”  The ear trumpet solution works poorly for the hearing impaired and even worse for organizations.  Think about it: just because the organization is not hearing the softer voices doesn’t mean friends, neighbors, and competitors aren’t.

The Weak Batteries
Those organizations that operate on weak batter power for their hearing device miss critical elements of the conversation with their customers.  The conversations continue, but the organization picks up only bits and pieces—like a conversation with your mom on a bad mobile phone connection.  She keeps talking; unfortunately, you’ve dropped enough of what she is saying that don’t realize you’ve been offered a free trip to the Bahamas…  and declined to go.  The same thing happens with customers when an organization only hears parts of the conversation—good opportunities are lost.

The Not Listenings
The organization that removes its hearing device, or has decided not to buy one in the first place, does not want to participate in the conversation with its customers.  It would rather yell at a customer and hope a few want what it’s selling, than open up a conversation with the customer about needs, values, and expectations.  Who likes to be yelled at all the time?  Not me, and I’ll bet not you.  Aside from great products and exceptional service, all customers really want is to be heard.

Social media tools help level the playing field for organizations that are “hearing impaired.”  It’s like having a pair of super-charged, digital hearing aids that help you amplify just those frequencies you need to hear.  This ability to listen, hear and actively engage in conversations 24/7 allow your organization unbelievable opportunities to learn from your customers, correct your mistakes, and build a loyal following.

Now, turn on those hearing aids and engage in conversation.  You’ll be surprised what you will learn when you start listening again.

People are talking. Are you listening? | Dave Harkins

There are more than 40 million users in the United States alone. The Blackout folks didn’t even register a hiccup. In fact, Alexa.com did not show a sudden drop in pages views on December 15, or a sudden increase in page views on December 16.

The core generation using  Facebook understands that the masses can move the direction of a company.  They understand that the customer (in this case a Facebook user) can control and guide the brand.  The problem here seems to be that the users think they “own” the brand that Facebook has developed. It’s a subtle, but important difference for both Facebook management and its users to consider.

We understand that Facebook management wants to build a website that attracts the masses, build user stickiness, and tastefully monetize the website through advertising.  Management’s goal is likely to make money for investors (0r at least cover the cost of operating the service.)  We also understand that users just want to interact with each others using the website and tolerate the advertising in exchange for free user of the tools.

Facebook management does seem to listen to requests and input from users, but I doubt the Blackout garnered much of their attention. Although, if the Blackout participants had numbered 10 or 20 million it might have raised an eyebrow or two. Facebook, like many Web 2.0 services, is designed for “the many” and not “the few.”  It’s a very small number who are complaining about the changes Facebook management is making.

I suspect “the few” just don’t like any change in their lives.

Yet, in our online and offline worlds, change in our lives is the only thing on which we can depend. So, you (Facebook user or not) really have just three choices:

1.  Drive change
2.  Accept change
3.  Freeze from fear of change

What will you chose in 2009? I hope you don’t choose the third option.

Happy New Year!

The “Great” Facebook Blackout | Dave Harkins

Most told us they just punched the last prompt they heard, but 99% of those misdirected callers should have chosen the first prompt they heard. I suppose one way of looking at this is that they customer was interested enough to listen to all the prompts before deciding. I think what truly happens is customers are waiting for a better “fit” with their needs and are responding to the last thing that they hear because they can’t remember what came before.

You do this, don’t you? I certainly do. We are always looking for something that better meets our needs, so we filter information that we don’t believe is relevant at this moment. We say to ourselves, “I don’t need that now. I’ll look for it again, when I do need it.” Things you don’t need never make your radar; the last thing you hear always does–even if it’s not what you need at the time.

For marketers, this is a huge problem. What it means is that we cannot just strive to be first name that comes to mind, we must also be the last name heard.

This is a task more difficult that it sounds.

Accomplishing both means your brand has to be everywhere, or at least seem like you are everywhere your customer. To be sure, it means you have to look for alternative ways of reaching customers. It definitely means you have to go to the customer and stop waiting on them to come to you. You also have to engage in the conversation and make sure your voice is heard. You have to understand your customer better and anticipate their needs to the best of our ability. However, more than anything, this means you have to be where you’re not expected, as well as where you are expected.

Be everywhere. Be relevant. Be unexpected. Any one is good, but achieving all three will help keep your brand both first and last in your customer’s mind. That’s where you want your brand to rest. Nothing between really matters.

The last thing you hear | Dave Harkins

As Web 2.0 and social networking technologies gain a greater foothold on our culture, I often hear LinkedIn.com founder Reid Hoffman’s quote, “Privacy is an old man’s concern,” tossed about. There is some truth to that, I suppose. Although I suspect the real issue is “trust” and not “privacy.” Trust is certainly not an “old man’s concern.”

Baby Boomers and Generation X’ers view the increasing requirements of Web 2.0 for personal and private information with a wary eye. We are the children who came of age in a time that knew Vietnam, the concept of the Cold War, and Watergate firsthand. We are largely skeptical and don’t easily trust the “establishment,” whether it be the government, the corporations or unseen faces behind the wall of the Internet. To us, relationships are built one-on-one and face-to-face, and privacy is something protected until the deepest stages of the relationship.

The Millennial Generation, the generation fueling the development of Web 2.0, are children of technology. They have grown up with computers and technology, and their distrusting and skeptical parents (see above) were increasingly protective of them in their formative years. This generation’s social life was controlled by their parent’s ability (or inability) to take them where they could engage others (play dates, dance classes, baseball games, etc.) They saw little unstructured playtime in the neighborhood with their friends and their primary means of social interaction was (and is) online. Their online relationships are real and intimate because they are an extension of their daily interaction with their friends. To this generation, privacy is not something to be concerned about; it is simply the price paid for building trust.

Although the perceptions, behaviors, interactions are somewhat different between the generations, the act of sharing information and building relationships (face-to-face or online) is tied to one single factor: Trust. Trust is what makes the relationships work. Trust is the only thing that can make or break that relationship. It does not matter if it’s a personal, friendly relationship, or one build on expectations of your company or your brand.

Yet, companies violate our trust daily; and, we keep going back for more. Well, at least those of us who were skeptical and distrustful in the first place are returning. Our expectations were low at the outset, so we largely tolerate the violations of our trust. That’s about to change though. The Millennial Generation has higher expectations of our companies and our brands. Violate their trust, and we are history. We will not get a second chance.

Trust is still the currency for business success. It does not really matter how much private information is shared and kept by the company; it is what is done with the information to build trust that is important. As our culture continues to evolve, keeping the trust is going to be a lot harder than earning it in the first place.

Are you prepared for that?

Trust is still the currency | Dave Harkins

When I was the CMO of a software engineering firm at the end of the dot com era, my boss would find a way to work, “If it’s a good idea, it’s worth doing poorly,” into every conversation.  When I got over the annoyance of it, I realized he was on to something.

“We can’t drive innovation through planning. It only comes in the doing.”

- Dave Harkins

This is the time of the year that most of us work on our budgets for the coming year.  Many of us are cutting back on marketing expenditures. Why?  We didn’t deliver, because we used history as our guide. Basically, we didn’t keep up with the change around us and planned our marketing programs by looking through a historical lens.

Successful marketers today understand that we must keep our eyes open and our ears tuned-in to all that happens around us today. Yesterday is irrelevant in today’s culture.  We must be bold enough to take action on what little we know, or think we know, and connect the seemingly-unconnected patterns in daily living to find opportunity for innovation.

As you think about next year’s marketing budget, open your eyes and ears to what’s really happening in our world. You will undoubtedly see opportunities that you could never have planned in your wildest dreams. You can’t plan innovation. You can only live it.

Take risks. Big risks. If it seems like a good idea, do it…poorly. Do whatever you do poorly, if it means you’ll get it done sooner rather than later. You can always improve upon it daily hourly.

What are you waiting for?

If it’s a good idea, it’s worth doing poorly. | Dave Harkins

I’m sure you’ve all read the news about the few bad apples at one leading consulting firm who have cost the jobs and pensions hundreds, if not thousands of people. Both the consulting firm
and its client have lost large numbers of customers, again, because of the actions of these few individuals.

To read some the press reports, we apparently should be surprised by the customer defections,
but losing those customers isn’t unexpected is it? After all, a relationship with a customer is based on trust-trust that’s built on a series of promises that a company has kept. Break a big promise and you’re immediately history. Not unlike our consultant friends above, whose primary promise was to assure shareholders that their client was financially sound.

On the other hand, breaking a small promise usually doesn’t result in the immediate termination of a customer relationship. Rather, it takes breaking several small promises to erode the relationship to the point of no return. Why would anyone want to do business with a company that doesn’t keep it’s promises? As the television character Gomer Pyle says, “Fool me once, shame on you. Fool me twice, shame on me.”

All it takes is a “wrong” word or inconsiderate action by one individual to start the ball rolling. How many customers have you lost due to broken promises brought upon by the actions of one or two individuals? Do you know? I would suggest you will not know many of them if you’re breaking the small promises. These customers aren’t going to complain, they’re just going to gradually slip away to your competitors. You’ll likely never know what promises you’ve broken or how often you’ve broken them, so repairing the relationship will be difficult, if not impossible.

Fortunately,fixing this mess will be easier for you and your company than it will be those firms we mentioned earlier in this article. But, before we talk about how to “make things right”, let’s look at some of the biggest causes of broken promises:

1. External messages.What literal promises are you making in your advertising, marketing or customer service messages? Are you promising 24/7 service, or satisfaction guaranteed? Maybe your promises are more subjective, like one insurance company’s “Like a good neighbor…” tagline. Are you fulfilling these promises? Can you fulfill these promises?Next, look at how your messages can be perceived by your target audiences or the public at large. Can an implied promise be read into your message that would lead someone to believe that you’re not keeping your promises? This can be especially true if your promise results from the ambiguity of a great tagline that is so subjective there’s little chance you’ll be able to fulfill everyone’s expectations.
2. Actions of staff.More often than not, the reason for broken promises has more to do with the actions of people, rather than the message presented. In the case of the previously mentioned insurance company’s “good neighbor” tagline, it’s the subjective interpretation of “good neighbor” by the agent and the claims staff that play a large role in determining if the promise is kept…or not.Remember, neither messages nor taglines-implied nor literal-break promises. People break promises. Make sure your staff understands how their actions affect the fulfillment of your company’s promises.
3. Misunderstanding customer NVEs.As always, understanding the Needs, Values and Expectations (NVEs) of your prospects and customers is very important. In this case, however, values and expectations are paramount. A business is not built solely on the products and services that it sells to meet the tangible needs of customers. It is perhaps more important that the company demonstrates value (and values) and delivers on expectations with each and every action.

Successful businesses deliver on promises each and every day and have the loyal customers to prove it. Those who break promises regularly-intentional or not-may find themselves waging a constant battle for new customers. It’s easy to know which of these businesses you’d rather be, the more important question is which business you are now.

Are you making promises you can’t keep? | Dave Harkins

It strikes me odd that so many supermarkets have loyalty cards. First of all, nearly every supermarket offers the programs with price-off incentives. In other words, have the card, get a special price. Where’s the loyalty in that? Many people (including those in my immediate family) have cards to all the local supermarkets and take advantage of the special pricing on key merchandise at all of the stores. Again, where’s the loyalty?

I know that some people are afraid to join the programs for fear of “Big Brother” tracking purchase patterns and products. The fact is, most supermarkets do little with the data collected other than, well, collect points. Worst of all, you can’t usually do anything with the point that you’ve collected and often you don’t really know how many points are in your piggy bank.

So, here’s a supposed loyalty program that accumulates points; does little with them to build an individualized relationship; gives you (and everyone else who holds the card) discounts on merchandise they want to “sell” but not necessarily what you want to “buy”, and; provides no incentive to shop only with this supermarket.

Odd, isn’t it?

Supermarket loyalty? | Dave Harkins

Please note that this presentation is Dave Harkins’ work created in other partnerships or organizations and the design templates have not been changed. Additionally, this content may now be dated but can still be used as an idea starter for your specific needs.

PRESENTATION: Keeping Promises | Dave Harkins