Canadian Marketing Blog

Is the Customer still "always right"?

"The Customer is always right". We've all heard the phrase before. I was surprised to learn that the phrase has been around for almost 100 years. Back in the early 20th century, Customers were more known to their retailers. Whether it was the mom and pop shop down the street, or the new large department stores opening up all across the western world. There was a direct connection between retailers and Customers and a mutual understanding of how to treat each other.

Retailers treated Customers with respect and dignity in most cases. Customers knew that even though they had choices of where to shop, the number of choices were relatively small depending on where you lived. Therefore Customers might limit their complaints and demands to the retailer. Just think about how most of us behave when we're at our local corner store/hair salon/deli/drycleaner etc. We get treated fairly well and we act respectfully, knowing full well that there isn't another convenient choice should we start making unreasonable demands or complaints.

Today we have more choice than ever when it comes to most purchases. . There is a big box store or a mall within 20 minutes of most of us. We can shop online at stores all across the country and beyond. We have so much choice that we can make demands on retailers or take our business elsewhere without giving it a second thought.

Even today most Customers are reasonable and act respectfully. If they treat a store with respect (buy regularly, do not return more than the average person) they should expect to be treated fairly, and usually are. Unfortunately a new breed of Customer has emerged and are stronger in number, than ever. These Customers make demands on retailers that are unreasonable. For example, returning an item after 50 days even though it's been worn 20 times or they'll take their business elsewhere. Being overtly rude to the front line representative because they had to wait in line 10 minutes (even though it's not that front line representative's fault). The Customer that returns 99% of what they buy because the retailer has a "no questions asked" money back guarantee.

In all of these situations the Customer is taking advantage of the retailers attempt to deliver on "the Customer is always right" philosophy.

Click here for part two of how retailers are using a relatively new retail trend to combat this new breed of Customer.

B.P.U.

If you have membership in this organization revoke it immediately. If you know others who are members get them to leave by any means. Even if it takes an intervention.

What is a BPU? It's an acronym for something sinister known as the business prevention unit. Its purpose is self-explanatory and it can be a marketer's worst nightmare.

What's scary is that most in the BPU will deny they are members. If you thought the Masons, Sigma Chi fraternity or the Illuminati were secretive - you ain't seen nothing yet.

BPU members may be part of variety of departments or support groups such as Human Resources, Finance, IT, Operations, Public Affairs, Accounting and Legal. They have already infiltrated Marketing and Sales as well.

No department is immune and denial won't work. Deep down we know it exists because most firms have at least one suspected BPU member or division within their ranks.

Make no mistake. BPUs are a threat on a local, provincial, national and international level. They operate covertly and overtly and their impact on business can be staggering.

BPUs over-zealously stymie marketing innovation by any means necessary. Processes, policies, procedures, infinite forms, numerous meetings and the deadly 'we've never done that before' are all part of their arsenal.

The good news is that resistance is not futile. There is a solution. Get colleagues from other departments involved in your marketing initiatives from Day 1.

If colleagues don't understand what you are doing explain it until they do. Proactively ask for input. No one has all the answers (including marketers). This does not mean management by committee either. There is a difference.

By involving others they become stakeholders in your success. They also become your staunchest allies and go to war for you. It's about critical mass.

That is only way to defeat the international BPU conspiracy.

An Inconvenient Marketing Opportunity

"An Incovenient Truth", Al Gore's documentary about global warming, is the most important movie I've ever seen. But as an inhabitant of this planet as well as a sometimes cynical/pragmatic marketer, I think we can increase global awareness of this desperate situation while furthering our respective corporate causes. Unlike Michael Moore's "Bowling for Columbine" or Helen Caldicott's "If You Love This Planet" which were successful at raising awareness of gun proliferation and nuclear war respectively, Gore's documentary is not sensational and presents the stark facts in a matter-of-fact, if not overly unbiased manner. My fear is that as important as the movie is, it may slip into oblivion as it avoids the rhetoric sometimes required to stir the emotions. Yet this issue, global warming, threatens the life of every one of the six billion people on Earth. This is serious. Corporations need to put pressure on citizens, politicians, and other companies to become part of the solution. While we all know we should do the right thing, doing the right thing while also benefitting from that perception may be more palpable for companies, particularly those that struggle the most to reduce CO2 emissions. See the movie and spread the word. If you can solicit your firm's involvement in this issue, do that too.

Should Marketing Have a Bar Exam?

This post was submitted to the CMA from Jonny White, an online business owner and an academic with a strong interest in media influences www.jonnywhite.ca

What follows are excerpts from a paper he wrote during his MSc. in Organizational Psychology at Saint Mary's University in Halifax, where he ponders the impact of marketing and communications on society.

"A communications system is totally neutral... It is, in sum, no more and no less than the men and women who use it."
- Edward R. Murrow, Legendary CBS Newsman

"An organization to review and assess the marketing profession does not have to know everything about marketing. Simply put, everything about marketing, or any other profession for that matter, is not known. The standard regulating who could be a doctor was in place even when doctors still believed in the four humours and were blood-letting to cure people of their demons. That standard, however, has helped to develop medical knowledge and the profession to a point of contribution, responsibility, and accountability without which we would still face the illnesses and strife of the last millennium"

Marketing does not simply encourage the purchase of products and services, just as social marketing does simply increase the frequency with which people brush their teeth or recycle. Marketing and social marketing change our view of ourselves within the world and change what is important to us. This has been shown in numeorus empirical psychological studies and experiments. Putting aside logistics for the moment, there is an ethical argument for the idea that there should be no marketing allowed at all.

Marketing influences ideologies. It changes who we are. Is it worth the advantage of a more robust economy or decreased heart disease to have our very natures changed at the whim of a message sender who does not understand the total impact of their message? An examination of our culture, widely accepted now as a 'consumer culture' gives a hint as to what role persuasive mass communications plays in the evolution of a society's attitudes. Every marketer, social or commercial, places selling their product or ideology ahead of all others and competes to create the most persuasive communication possible. If marketing impacts society at present, its influence will increase exponentially as marketers' use and knowledge of marketing psychology increases, and the ability and technology to communicate its messages improves.

Psychologists, accountants, carpenters, dentists, doctors, lawyers, and teachers are reviewed to ensure a minimum standard of awareness and competence due to the possible implications for the public of a misuse of their craft. Should we not hold marketers, given the known potential effects of persuasive media, to some standard as well?

To approach the argument from another angle, consider that psychologists must go through extensive ethics approval in order to run an experiment because it could have an adverse impact on the lives of the participants. Yet those who use the psychology of persuasion to influence others for their own benefit are held to no ethical standard. It is media, persuasion, and marketing researchers and psychologists who are best suited to create and implement that standard for marketers, as theirs is the most reliable knowledge about how marketing affects the target audience.

A licensing system would not only be a moral victory and a protection but also an aid to the users of the media in certifying professionals who understand media effects and marketing theory. Companies would not only be getting promotions that look good, but promotions that work. Creativity is still an absolute necessity but that creativity can be teamed up with knowledge, research, and testing to better understand marketing and to avoid adverse impacts as much as possible, and more and more as our understanding increases. The media really is a reflection of us: Largely image conscious, materialistic, and fickle, but at the same time given to truth, inspiration, and great ideas on occasion. With the rapidly expanding base of knowledge that now exists we can begin to harness the power of the media for the betterment of society, or at the very least, reduce the adverse impacts.

The future of social networking

We've all seen the power of MySpace, YouTube, Facebook and the countless other social networking sites. The circle of friends concept first used by ClassMates has really taken off. The new face of social networking doesn't quite work that way. The days of posting photos from our latest trips and best friends has evolved into creating avatars of our desired persona through Second Life. Not only is Second Life a new and interesting way to meet other people, the opportunties are limitless. In fact, Anshe Chung, a real-estate tycoon in the digitally simulated world known as Second Life, has apparently become the first virtual millionaire--i.e., someone whose holdings in a make-believe world are legally convertible into genuine U.S. currency worth more than $1 million. What's even more interesting is the US government is thinking of ways they can tax the "virtual" Linden dollars. Why am I not surprised.

Will they ever "get it"?

In the Media and Advertising section of today's New York Times you'll find an article entitled " Yes, It's a Spoof, but It's Also Selling Something". In it, the writer describes how "spoofing" or "genre-jacking" is all the rage in advertising these days. According to the article "Straight direct-response pitches hardly ever work anymore..."

Hmmm, tell that to this year's winners of CMA Awards, International ECHO Awards, Caples Awards, or Cannes Festival Awards in their respective DRTV categories -- or anyone who practices the discipline. The article further asserts via mass Creative Director Ted Jendrysik, that "Direct response advertising as a genre is especially appealing to parody because it's 'so cheesy'." Now, in fairness, the article and its pundits think they're referring mainly to the "slicer-dicer" informercials popularized by late-night "schlockmeisters" Ronco and K-Tel.

However, the fact that he lumps those infomercial-makers in with everyone else by generically referring to the genre as "DRTV" and "Direct Response" demonstrates a significant lack of savvy in today's more direct-oriented media-scape. (See my very first post in this blog.)

In fact I had to laugh when, later in the article, the writer describes a campaign for MSN Search, a competitor of Yahoo! and Google. A viral campaign for the site (direct response, no?) pokes fun at late-night infomercial kings like Tony Little. "In its quest to compete with Google and Yahoo, MSN wants to be seen as 'big and bold' [and presumably cheesy] as the infomercial kings."

After the site was launched, MSN's agency sent email messages containing links to the site to a select list to get attention for the campaign. Shhhh, don't tell them email blasts are considered Direct Response. Let's just keep that between us.

Canadian Investment Marketing Awards

Just when I'd given up trying to identify good examples of differentiated marketing within the herd we call financial services, I was fortunate to attend The Canadian Investment Awards last week where they acknowledged some shining examples. There were three campaign finalists in Canada:

"Portfolio Funds RSP" campaign by Scotiabank
"Burn Rate" campaign by Mackenzie Financial Corp.
"Be" campaign by E*Trade Canada

The "Burn Rate" campaign was an online campaign, particularly innovative at explaining a financial concept in humorous, layman's terms. Well done.

Is the Customer still "always right"? (part 2)

Please see part one of this blog for reference.

In the late 20th century retailers have found a (relatively) new way to entice Customers to remain a loyal shopper to their establishments. Loyalty programs such as Air Miles, Petro Points, HBC rewards (the list is endless) have emerged in the past 20 years to create rewards for loyalty. Even the local coffee shop may give you a free coffee on your 10th visit. Canadian Tire is considered a pioneer in loyalty rewards in Canada by offering cash back in the name of Canadian Tire Money starting way back in 1958.

Loyalty cards are valuable to many consumers and may influence where they purchase their items. Loyalty programs are valuable to retailers because of the same reason. There is another tangible value to retailers that emerged perhaps as a secondary benefit. Retailers could now monitor the purchase habits of Customers. Air Miles provides aggregate information on consumer spending to their sponsors as part of their business offering. Retailers now have valuable information on what Consumers are likely to buy, and their actual buying behaviour.

Retailers are now using this massive database to decide who their profitable Customers are, and who are the "less than desirables". Liz Pulliam Weston has a great article that expands on this topic. Complaining too much or being over-abusive? Returning too much? You may find that your Customer file is being updated with all of this information. Most of us know that there is a growing database of our consumer spending habits, but we haven't reached the point where it's affecting us, right? Well you may be surprised how much we're affected by it. For example, when you call your bank and enter your bank card number, their call switch software may decide your wait time based on your profitability. If you're answered quickly, you are a great Customer. If you are waiting for a long while, you may not be the Customer they want to please. When you travel, you'll notice the people who are high spending, highly profitable Customers. They are the ones that can line up at the business class and platinum rewards line. The line usually has 1 or 2 people in it, and is staffed by the very best representative of the airline. Blackberry Customers (highly profitable) may get faster service when calling than the pay as you talk Customer. If you are a desirable rewards Customer at a hotel, you'll likely get upgraded without asking. It's everywhere, and retailers are getting smarter and smarter at catering to their best.

The next step in this database driven retail world is how to lose your losers. Companies are using this valuable information not only to reward their best Customers, but to fire their worst. Those Customers that are no longer desirable to deal with (whether it be for abuse of policy or staff) are being asked to leave, and to take their business elsewhere. The tide is changing on these Customers that feel entitled to make unreasonable demands on retailers. These undesirable Customers are no longer able to use the threat of taking their business elsewhere. The retailers are making the decision for them.

A relatively small group of Customers causing a relatively large problem for retailers. Retailers now have an answer.

Most of us are not on this list. Those of us that treat retailers with respect will enjoy the rewards that retailers offer us for being loyal.

The common retail phrase in the 20th century was "The Customer is always right". In the 21st century "The profitable Customer is always right"

WWF Campaign (Not the Wrestlers)

After some posts by fellow contributors about the movie an Inconvenient Truth, I decided to see what the fuss was all about.

Our family was so impressed that we bought the dvd. Further to this, I have to point out a marketing campaign launched by WWF-Canada. I'm not referring to the male soap opera (formerly known as the World Wrestling Federation) but the World Wildlife Fund.

They've launched some television commericals that makes one stop and think.

The commercials have a simple call to action. Visit the save our climate website - which is very impressive.

It has strong creative, detailed information, an excellent call to action and is easy to navigate. There are links to a blog, an email viral campaign and a link to donate online as well.

One suggestion. On the donation pages, there was no mention that donations are tax deductible. I called WWF-Canada on Friday afternoon and gave them a heads up. Hopefully that slight change can increase online donations and conversion rates.

Other than that nit-picking, I have to say whoever created this WWF mutli-channel marketing campaign should take a bow. Well done.

Edmonton Re-ED-ucates Canadians

In an effort to create awareness for the City of Edmonton, a Canadian city that is too often overshadowed by the booming Calgary, a re-ED-ucation campaign was recently launched. (Notice the clever marketing strategy used in "Re-Ed-ucation" -alluding to the city of Edmonton and of course Education!). It's a very Canadian campaign with documentary-style commercials-nothing too flashy-that features regular Canadians off the street and certainly plays on our lack of knowledge about Edmonton, Alberta. Both educational and informative, these commercials hopefully put Edmonton back on the map! Check out the commericals.

Tag! I'm it.

So, I just got an email from the friend to whom I referred in an earlier post ("Tease Me!"). She writes an excellent blog and wanted to let me know that I'd been tagged. Apparently Mitch Joel from Twist Image and a fellow CMA Blogger, responded to a challenge and passed it on to Michael Seaton (yet another CMA contributor and Blog Founder) and others. Continuing the six degrees of separation theme, it is now up to me to share "The Five Things Meme" and pass it on.

1. My family knows I know how lucky I am: I have an amazing wife who puts up with all of my idiosyncrasies (see #2) while juggling her own professional Interior Design business, Motherhood, kids' schedules and School Volunteerism. I also have two children (Kate, 12 and James 10) who help me keep my priorities (and theirs) straight.

2. I don't like my food to touch. Fruit Salad should consist of one type of fruit (berries or melons please, not in the same bowl). No fruit in green salad. No nuts in cooked food. In a bowl by themselves is okay, and then, only cashews. Gravy is fine on meat but not running into the vedg or the potatoes. I'm a neat freak. Everything in its place. And the list goes on. I know what you're thinking -- "...and she married you because...?"

3. I have two large Labrador Retrievers. (Yes, my wife puts up with that too.) Few things makes me happier than strolling at the Beach with a coffee in one hand and a leash in the other. It's only better when my wife and kids are strolling with me. Simple pleasures.

4. I shaved my head three years ago on a whim, then wrote and published an article about the experience for the Globe & Mail Facts & Arguments page.

5. I'm a middle child. (Hmm, perhaps that explains some of those above-mentioned idiosyncrasies.)

Blackberry and BlackJack: Riding the RIM wave of success?

There is competition in marketing. But when does the competition break the rules?

RIM says Samsung’s “BlackJack” product name is too close to RIM’s “BlackBerry” product name. Clearly, they are competitive smart phones with sleek black casings. And the names are pretty similar, too. Maybe too close.

That’s the basis of RIM’s complaint in a California court. RIM claims that consumers may confuse the BlackJack with the BlackBerry.

For its trade-mark infringement claim, the legal test RIM must prove is one of likelihood of confusion: are the products and names similar enough to confuse consumers? The “consumers” in question are the general public: not careful and diligent purchasers, nor the “moron in a hurry” (I swear to god the “moron in a hurry” has been considered as a class of consumer, in British and other commonwealth courts). Also, it is not necessary to show actual confusion, only the possibility of confusion.

Did Samsung do it on purpose? The court doesn’t care. Accidental is the same as intentional infringement. Murder is a different story, but for trade-marks, whether you intended to infringe is beside the point.

What about the fact that a blackberry is a fruit and blackjack is a card game? While meanings are relevant, the court will also consider appearance, sound, and commercial impression. Similarity of the marks in one aspect does not automatically result in a finding of likelihood of confusion.

We’ll wait and see the court’s reaction.

I suspect there is merit to RIM’s claim, but sometimes lawsuits can backfire…. I’m thinking of the record industry’s suits against kids who used Napster.

On the other hand, there is no such thing as bad press: the reports in newspapers, and even this blog, mention both RIM and Samsung.

My Holiday Wish List

I'm about to take the next three weeks off. So I thought I'd leave you with my wish list for 2007. I hope I get everything on my list again next year.

1. Brilliant creative that makes me laugh and/or think and/or feel, remember the product being sold, and respond because I simply can't resist.

2. Strategic, inspiring briefs. (Briefs are not work orders. They should be creative and consistent. They should be viewed as an opportunity for the Planner or Account Person to contribute to the brilliant creative that will hopefully result from them. Creative is never better than the brief they come from.)

3. Passionate creative people. (I've been fortunate to meet, hire and work with creative people who want to do whatever it takes to sell the end-consumer, sell the client, sell the account people, sell the Creative Director, and win awards with their big ideas. I love finding potential stars and helping them live up to their potential. And I love giving people breaks because I remember and appreciate every single one I've been given.)

4. Fearless clients. (This is truly the gift that keeps on giving. Certainly some business cultures don't lend themselves to being fearless. But in my experience, even within those environments you can find people who have the desire and authority to support great creative. You have to pick your battles, and you won't win them all. But the trick is providing a strong strategic rationale so that they're protected in taking that leap of faith with you. I'm not talking about creative for creative's sake here. I'm talking about taking baby steps if necessary toward smarter, more strategic, relevant creative to get better business results for your clients.)

5. Demanding account people. (Some of the best account people I know were the hardest ones to work with. But in every case, the best work came from the partnership. I want my ideas to be challenged and bulletproof. I want to be kept on my toes and I want to work with account people who want to be kept on theirs. And of course, I especially love account people who consider themselves creative. Those are the most inspiring ones.)

6. Finally, I want you to have a happy, safe, and peaceful holiday and a happy new year. Oh, and I would love a Nikon SLR digital camera.

Loyalty

A friend made the comment that most people in the business world have no loyalty or ethics. I took exception to that remark but he countered with examples of senior executives sticking it to employees and shareholders.

"File for Chapter 11, stash all your dough off-shore, serve a brief sentence in a country club and then enjoy the rest of your days on the shattered lives of others. And prison only applies if your high-priced lawyers can't get you off."

He then asked me for just one example where in business friendship/loyalty withstood the lure of money/greed.

I gave him one example, that appeared on the CBC television show The Dragons Den, where students who launched a Canadian start-up company turned down a venture capital investment because of loyalty.

Many have criticized Jobloft for being blindly loyal to their professor. Opinion of one but I respect them for sticking to their principles and with their mentor.

I have no doubt these guys will have successful careers, be it at Jobloft or elsewhere. Why? Those are the kind of people I'd want to be in business with. The kind who have ethics.

I met them at CaseCamp and was very impressed. It's nice to see loyalty still counts for something, especially by our future leaders.

In spite of cash being dangled in front of them, the Jobloft crew did not sell their souls to the dragons. That takes a lot of moxie on national television.

And those critical of their professor based on the above clip, granted it doesn't look good but television editing dramatically affects reality. Who knows what hit the cutting room floor?

It's in the CBC's best interests to make the Dragons look good. As opposed to someone working for Ryerson University that is not on the CBC payroll. And conflict, be it fabricated or otherwise is very good for ratings.

People in the academic world do not get paid well compared to those in business. There are exceptions but most professors and teachers I've met do it for the love of teaching.

Their professor helped for who knows how long with what appears to be zero financial gain. If after all kinds of due diligence, the Dragons were still prepared to invest $200k that speaks volumes about Jobloft's potential. There will be other investors.

Some critics said that being on the Dragons Den and turning down the investment capital was negative marketing for Jobloft. Sorry but I respectfully disagree.

They could never buy that kind of marketing exposure as a startup. Not to mention showcasing their integrity and loyalty on national television.

Nice guys might finish last but at least they finish.

Branded leadership

What are your thoughts on branded leadership?

When identifying internal branding best practices, my firm cannot stress enough the importance of getting the leader out of the executive office. The leader must walk the halls and work at being accessible. Small group meetings are often more effective than Town Halls, allowing one-on-one engagement and more authentic understanding of the brand. Meeting one-on-one or in small groups also makes it easier to identify and encourage front-line champions, who are all-important among volunteer groups.

Although leaders don’t have to be flamboyant to make the brand promise come alive, they do need to be impassioned to be inspirational. They need to make a clear link between employee and volunteer behaviours and the success of the organization, helping them realize the importance of their role and how they contribute to the delivery of the brand promise. Sometimes one-on-one coaching of leaders is required.

Moreover, don’t overlook the importance of middle managers. Often they are the only visible demonstration of brand behaviours in everyday action. Help them recognize the importance of their role, and if necessary provide appropriate training

Lessons Learned for 2006

Another year of strategies and tactics have played out, and hopefully your revenue and growth wishes have all come true. With plans likely firming for 2007, it’s a good time to take a little breather.

For us, at SiriusDecisions, the end of a year marks another milestone of learning, gathering data, compiling best, worst and most practices, and generating a whole lot of research. In this issue of SiriusPerspectives, we share a sampling of what we’re walking away with from 2006, as well as how we believe these findings will impact the upcoming year.

1. “Productivity” is now the in word.
2. Shared metrics are becoming all the rage.
3. Inside sales is no longer the red-headed stepchild.
4. The technological architecture is beginning to catch up to aspirations.
5. Operations isn’t just for numbers crunchers anymore.

Perfect Gift Idea

During the last minute rush for the holidays people are trying to find gifts. I was going to suggest the gift of travel however that would be blatant self-promotion on my behalf.

Instead, I'm going to suggest something that will make you look like a star. I'm referring to the Famous People Players (FPP). Not to be confused with the cinema chain Famous Players but a not-for-profit organization that puts on incredible shows utilizing black-light technology.

Their tag line "What you see is sensational..what you don't see is inspirational" is very a propos. The shows are performed by physically and mentally challenged people. But don't be mistaken, the last thing they are looking for is pity.

They are professionals and their performances rank right up there with other broadway shows, sporting events and rock concerts I've seen. Go to a Leafs game or see the FPP? It's not even a close decision. And guess which is more affordable and entertaining?

The FPP have had numerous benefactors such as Liberace, Phil Collins, Nicole Kidman, Tom Cruise and other stars. Scotiabank and other companies are corporate sponsors. Candidly, I was proud to see my employer noted as a past contributor as well.

Twenty years ago my folks took me to see the FPP on tour and I was inspired. A few weeks ago, I took my family to a dinner theatre FPP run in Toronto and they loved it. The staff were incredible especially with young children. The smile on my wife's face during the show was priceless.

And so I'm not accused of being Toronto-centre-of-the universe focused, the FPP goes on tour across Canada and the globe.

Whether you're a family or empty nesters, look no further. If you are looking to take a client out or want to impress your date, look no further. If you need creative inspiration as a marketer, look no further. If Santa needs more gift ideas, look no further.

This truly is the perfect gift and an outstanding cause.

How Do I Stop Unwanted E-mail Advertising?

This question was recently asked by way of our blog. With 2007 approaching, and CMA's revised Code of Ethics and Standards of Practice taking effect in January 2007 - it's a good time to revisit e-mail used for marketing purposes - by both marketers and end users.

Apart from using the spam filter in your e-mail application or relying on your ISP’s filters, the short answer to the question is: Be careful who you give your e-mail address to! When you are sharing your e-mail address with an organization, take the time to check their privacy policy - if they don't have one it's a safe bet that you can't count on them to properly restrict the use or transfer of your information.

When you do receive unwanted e-mails or Spam, check for the privacy policy or "unsubscribe" link, usually at the bottom of the e-mail. Ethical marketers will provide such a means to contact them to be removed from their e-mail marketing lists.

Ethical marketers should only be contacting prospective customers by e-mail on the understanding that those consumers have consented to have their personal information transferred and/or used for marketing purposes. When someone visits a commercial website to obtain a service or order some product, and provides their e-mail address, the site owner must advise the consumer how it intends to use the information. On that basis the company has implied consent for relevant follow-up communication, although best practice is to explicitly offer the consumer a clear opportunity to opt-out of receiving further marketing offers. And such an opt-out must clearly be offered before information like an e-mail is transferred to third parties.

For CMA members, our Code of Ethics requires that every e-mail marketing offer to prospects and existing customers must include an "easy to see, easy to understand and easy to execute" click-through opportunity to opt-out. This makes it easy for consumers to stop any unwanted emails after the first communication.

The bottom line? If the online organizations you are dealing with don’t have a privacy policy and information and choices such as those outlined above, you should probably think twice before providing your personal contact information.

Gift Cards and Spaghetti

Now that the dust has started to settle and we are busy counting up our loot, it's time to figure out what to do with all of our refunds and gift cards. My office is located near a small shopping malll, so I got a bird's eye view of the nuthouse that is Boxing Day.

People were lining up to get into a variety of retail stores. I can imagine many had gift cards in hand. According to Phinjo Gombu in the Toronto Star, it was reported that 82% of large retailers made gift cards available in 2005, compared to 53% in 2003 according to Statistics Canada.

Apparently, the largest growth has been among retailers that were more reluctant in the past to introduce gift cards, especially clothing stores where gift card availability doubled by 79% from 2 years ago.

Why use gift cards? Statistics Canada found that stores issuing gift cards had more than twice the number of sales than stores that didn't offer them. Both Gas stations and grocery stores now issue them. They are quite the rage right now.

Another reason why gift cards are so popular is they can be purchased using points from loyalty or rewards programs and recipients are none the wiser. Apparently some people take offense to that. If I received one it wouldn't matter if it was purchased with dollars, points or Monopoly money.

I used to think all gift cards were created equally. You pay for the value but can replace one brand for another. Best Buy, Home Depot, Body Shop, Starbucks it's all the same isn't it? Not so. One offer that stood out was none other than the Old Spaghetti Factory.

For every $20 gift certificate purchased until December 31, 2006, it will include a bonus $10 Old Spaghetti Factory Gift certificate. You actually receive a discount for making a gift card purchase. With a deal like that, who needs the GAP?

Granted there are terms and conditions such as gift certificates are not valid on the date of purchase and must be used by March 15, 2007. But other than that, it's sounds like a pretty tasty deal. No pun intended. (Unless you don't like spaghetti.)

Cynics might question the economics of such an offer. Yes, there are cost issues as gift cards represent a liability on the balance sheet but the Spaghetti Factory must have crunched the numbers before launching this promotion. If not, better move quick before they figure it out.

The only thing to rain on the gift card parade is Ontario legislation expected to take place in 2007 which eliminates the expiry date on all gift cards. According to surveys, 60% of gift cards offered have expiry dates. Consumers would love such a change. Retailers less so.

Imagine if such legislation extended to loyalty programs such as Aeroplan? They already took a pounding in the news for time-stamping Aeroplan points with expiry dates. Something for the legal pundits to comment on but while they do so I'm heading over to the Spaghetti Factory.

However, before I do so I (belatedly) wish you and your families a Merry Christmas, Eid Mubarak, Happy Hanukah, Festive Kwanza and best wishes for any other holidays I ommited.

May your best of times in 2006, be your worst of times in 2007.

Has Home Depot Changed?

I wrote a blog awhile back about The Home Depot and the struggles they were having with their competition (Lowe's) in the U.S.

The articles I referenced showed that Lowe's is focused on the Customer Experience. The stores and staff are organized to ensure that the purchase experience is a memorable one, and will likely lead to future sales from loyal Customers. Lowe's showed that this focus was paying off at the cash register with sales growth higher than that of Home Depot.

Jose Lopez who, as of January of 2006, is the Home Depot's Senior Vice President and Chief Customer Officer is in charge of changing this trend. I had the chance to hear Jose speak at a conference in Boston this year, and I was impressed with his view on what Home Depot needed to do to improve the Customer Experience. His main focus was on improving the attitude and focus of the tens of thousands of Home Depot employees as well as to change the appearance of the stores to make them more user friendly.

Home Depot grew to be America's second biggest retailer by, basically, building a warehouse, filling it with home renovation products, hiring trade experts and opening the doors to consumers. Great products, great selection and experts on-hand was a recipe for success. Lowe's came along and took the same idea, but added a more luxurious store experience and hired more Customer focused staff. Their idea is paying off with better growth numbers.

Over the years I have learned that you can train almost anyone to perform almost any task (use computer software etc.) but it's very difficult to teach people how to be good at Customer Service. Some people are just pre-wired to understand how to speak to people nicely, and cater to their questions and wishes. When building Grocery Gateway's Customer Service department, half the staff I hired had never turned on a computer. But they were incredibly talented Customer Service people. Two months later they could use all the software with ease, and treated our Customers to a great (and award-winning) experience.

I have noticed some changes to the staff at Home Depot over the past year. There are less expert tradesmen working at Home Depot (who were great at what they did, but did not necessarily make great Customer Service people) and more great Customer Service people who may not be experts at what they sell. I'm not sure if this is part of Jose's plan, but I believe it's working.

I would rather take a few extra minutes with someone willing to find an answer for me (who shows the effort of focusing on my request) with smiles along the way, than deal with someone who knows the answer, mutters it to me and walks away (which was more often my experience at Home Depot years ago). These great Customer Service people will become experts very soon, and Home Depot will have hit a home run.

Yesterday I walked into Home Depot and someone greeted me at the door with a smile, and asked if she could help me look for something. Now that's a great experience!

2006: It was a very good year

What a difference a year makes.

There have been some very exciting changes and interesting directions taken within marketing, advertising and communications this year. The CMA blog and the participation in it is just one example of change in action.

This year saw the rise of what I like to refer to as Fifteen Megs of Fame. This is not just about achieving fame at an individual level but, more importantly, it is about achieving and sustaining it for brands. This year we saw experimentation, sharing, learning, collaboration, comparing, conversing and testing from companies big and small. The list of those on the move from traditional to non-conventional marketing was long. Those like Smirnoff, Mentos, Coke, Wal-Mart, GM/Chevy, Telus, Starbucks, Starwood Hotels and even Scotiabank found their Fifteen Megs, or more. Many of these brands were examples of putting quality above quantity and, although a few stumbled along the way, ultimately some large steps in the right direction were taken.

This year, words like social media, consumer generated content and citizen marketing (to name just a few) became part of the vernacular. Given my role in digital and new media, I admit I may be a bit biased. However, I believe the mainstream status quo has started to change. This is a good thing.

Reading blogs, contributing to wikis, listening to podcasts, joining virtual communities and increasing our participation in marketing conversations showed that significant strides are being taken inwards from the fringe. Each area demonstrated unique attributes that were increasingly applied across multiple discipline and channels.

We started to unleash the real power of where marketing is headed this year. Once misunderstood or seemingly complex elements are now seen as important tools. Such tactical enablers are being used for both internal and external purposes and seem to be growing exponentially. This is a very good thing.

At CMA National Convention in Montreal this year we learned about Life After The 30 Second Spot. We experienced what Experiential Marketing is all about. We were shaken up on Radical Careering and shown how the best advertising is an emotional play - an exercise in SISOMO.

At the Digital Marketing Conference just a couple of months ago we learned what Six Pixels of Separation means and, how our future state is based on the notion that Everything is Miscellaneous.

Themes throughout the year continually returned our attention to return-on-marketing-investment. We also moved to locate grass versus mass appeal. The focus seemed to shift away from the simple science of ”reach” to one of “resonance”. We began to think of audiences that we should attract, not just ones we could attack. The lines began to blur even further this year between where public relations stops and marketing begins. And, thank goodness we began to see transparency and accountability take centre stage in terms of going from a “nice-to-have” to a “must-do”.

So, my fellow marketers, this was a year where we fortified our preparedness and our manifesto to address those who are still standing on the sides that claim it is all hype. The future seemed to unfold in front of us each day as we witnessed legitimate change taking hold. Not a revolution but an evolution. Bottom line is that things are getting exciting all over again. And that is the best thing.

One quote to leave you with from CMA keynote presenter Joseph Jaffe is “Don’t get caught asking about or looking for the next big thing. The next big thing is right in front of you. It is today. It is all the opportunities seen in the new world of marketing that you have not tried yet.” I tend to agree.

For anyone reading this who wants to learn more about what is going on, look no further than the resources at CMA. As a representative of CMA's Digital Marketing Council, I encourage you to tap into our deep pool of resources. Ask questions. Raise the debate. Join the conversation. You will be glad you did.