Tag Archives: Scottrade

Rise of Experience: the next horizon to captivate customers

Spice Market (Mısır Çarşısı) Istanbul
Image by exfordy via Flickr

This is the fifth in a series of short posts related to The CMO Agenda research. Informed by recent CMO conversations and CMG Partners‘ collective experience helping top marketers develop marketing strategy, we have compiled a list of seven ideas or jump starters for further conversation. These are meant to spark discussion, ideas, and action as we all enter a difficult 2009.

Many industries and sectors have seen new growth opportunities shift from products to services. For example, take the classic case of IBM and the switch from product to services, which is cited many times over as what saved the company.

“Experience” might be next frontier as customer service is now becoming a qualifier for purchase decisions versus an order winner. Differentiating on an experience could range from engaging all the senses in industries like travel and leisure to providing simple surprise and delight moments in less experiential industries like technology or manufacturing. The Experience Economy by B. Joseph Pine and James H. Gilmore is a source for much more to think about along these lines.

Recently, I worked with a luxury travel company on defining a new set of products for the high net worth baby boomer market. Through focus groups we learned that boomers were craving experiences. The example that sticks out most was a person stating: “I want to be guided by a well know chef through the Moroccan spice market, hand select ingredients for dinner, then participate in the cooking process — culminating in the meal itself.” Oh.. and research shows that they are willing to pay through the nose to get this!

For a more grounded example…
Not too long ago, I opened a college savings/investment account for my newborn daughter.  I picked Scottrade because I had previously opened a brokerage account and was satisfied.  Within 4 hours of applying for an account online, the local branch office, one mile away, called to make sure everything went as planned and to see that any questions I may have had were answered.  It was a simple yet effective point of differentiation, and I loved it.

Whether meandering through a spice market or simply calling your customers to make sure they had a good experience, marketers need to think beyond the widget or service offering of today. How will your company or industry take advantage of this opportunity to win or retain customers with a unique experience?

Reblog this post [with Zemanta]

CPG vs. Service Marketers: skill-sets and executive hiring decisions

Headgear is mandatory in amateur boxing
Image via Wikipedia

Recently, I posted a question on LinkedIn in a effort to get some outside opinion on marketing skill-sets and how that is driving hiring decisions. While I was underwhelmed by the number of answers I received — three in total — I was intrigued by two responses.

My Question: What are the pros and cons of hiring a traditional CPG marketer vs. a Service Marketer? More specifically, what is the rationale you are using to make this decision.

I further referenced the following examples: CPG – P&G, Unilever, Kraft;  Services – iTunes, Scottrade, Netflix. Primary basis in these examples was a consumer-to-consumer apples to apples comparison.

The Responses:

Tough question – The necessity to qualify past performances and the other integral parts of the hiring process can’t be overlooked, but on a macro level this is [my humble opinion].
The traditional service marketer is able to move left to right brain more fluidly, based on the career choice to associate themselves with something that is fundamentally “untouchable”. The career progression of being successful in any one of your service company examples shows a high level of measurement as well as creativity. In my experience, the ability to think on both sides of the brain has become integral to any top performing marketing exec.
Matt Gill, Senior Vice President, Pile and Company- Executive Recruiter for Marketing Talent

Your service examples are really consumer products in that they are tangible goods. However, to answer your question: a traditional CPG marketer is usually working with a tangible product of defined value and generally a defined brand image. He/she is used to dealing with measureable goals and defining strategies against share of market objectives. Tactical tools are known and also quantifiable, such as promotions, packaging, collateral support. A good CPG marketer knows how to use these tools to best effect. On the other hand, a service marketer is selling something that is usually very intangible and tough to measure in terms of cost and value to its intended users. As Matt says, there is more need for both the left and right side of brain to come up with strategies and programs that will be of relevance to the user. In my experience, successful marketers of intangible services can more easily and effectively cross over to traditional product marketing. It is much harder for a traditional CPG marketer to cross over to selling intangible services. – John Fricks, CEO at Frix Group – Marketing/Strategists

The Bottom Line:

Flexibility, versatility are the highlights in favor of service marketers provided by Matt and John. Matt’s point that top marketing executives need the “ability to think on both sides of the brain” is more associated with service marketers. CPG marketers need to demonstrate they can sell what you can not see — a great analogy to selling the value you can create for an organization.

At CMG Partners, we have been conducting qualitative research with a number of top marketing executives across a number of industries and find that those with a “seat” at the executive table are best at working across the enterprise to drive transformation or change that enables growth.

Reblog this post [with Zemanta]

Service brands: vision of the future?

As a marketer and consultant, I always find it difficult to explain what a brand is to people that are not familiar with the concept (e.g. my mom). This task of explaining things becomes increasingly difficult when the brand is not something you can touch or feel like a service.

Service Brands are populating the landscape today and I feel a strong desire to learn from them as many other marketers should. Why? Because the idea of customer engagement, loyalty, or the idea of employees living the brand are old news to the service brands that get it right. Sure, the work is never done, but they are light years ahead of the consumer packaged goods companies.

I have put together the below diagram as an example of how the landscape of product-to-service brands is complex:

Examples Service Brand Landscape

The Bottom Line:

Three brands to take a page from are: Scottrade, Netflix, and Red Hat.

  • Scottrade has mastered customer service in my opinion. I must admit that I have a couple of accounts with them and within hours of making a major transaction on-line the local office (1 mile away) calls to make sure everything went as I expected.
  • Netflix mastered a simple concept of adapting to consumers lives and taking away the hassle of the rental store and late fees. Simplicity is their virtue. The next chapter of on-line and downloads for movies will likely test them.
  • Red Hat sells “free software”. In the early days, they boxed free software and made it easy to buy. Now they are leading and prospering in the enterprise business software arena and wining more than their fair share. The company’s culture of transparency and openness that is shared with the open-source community which fuels the software is Red Hat’s greatest asset. How else could you actually sell free stuff?

Links of interest:

Chris Grams Blog – Senior Director of Brand Communications & Design, Red Hat

The Official Netflix Blog

Scottrade YouTube Channel

Reblog this post [with Zemanta]

Follow

Get every new post delivered to your Inbox.

Join 796 other followers