jennebarbour

Day 29 - Segment

Posted by jennebarbour Employee Dec 29, 2017

In my prior life, I spent a good deal of time speaking and writing about customer loyalty and engagement, and how marketers needed to adapt to support customers’ changing needs.

Marketers have traditionally viewed customers in groups – segments – who exhibit common purchasing, engagement, or other behaviors. But with the increase in data companies can gather about their customers, together with the wealth of interaction data customers generate almost constantly, marketing stakes are higher today than ever before. Traditional segments are now too wide.

I regularly spoke about individualization – the practice of observing customers’ behavior, interactions, and needs, and delivering an experience relevant to a segment of one. I thought today would be fitting to share some of my thoughts on this subject with this audience of IT pros, many of whom help marketers and the businesses they support, address the challenges of the Age of the Customer. Though I would typically write for marketers regarding their customers in the B2C sense, IT pros perhaps understand these experience expectations even better than their marketing peers, complete with quick complaints and rare compliments.

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If you don’t like change, you’re going to like irrelevance even less.

- General Eric Shinseki, U.S. Army, Ret., Former Secretary Veterans Affairs

Customers are evolving, as is the technology they rely on, meaning marketers have to adjust their sails and navigate the winds of change. These changes provide us with the opportunity to transform our businesses for the better, provided that we embrace it. As General Shinseki alluded to in his quote above, you become rigid at your own peril.

What’s at the heart of all this change? Technology. The ever-increasing velocity of digital technology has accelerated what Forrester calls “The Age of the Customer.” We know how easy it is to pull out a smartphone or tablet and find out virtually anything – and that’s exactly what today’s consumer does. They can research and buy whatever they need – whether a product, service, or experience – with just a click, wielding tremendous, instantaneous control.

Of course, for marketers, this customer-driven dynamic can be maddening! Speed and control have transformed buying behaviors – customers expect to access what they want, when they want it, wherever they are... instantly. When they can’t find exactly what they want, they move on with just a click. That leaves little room for error, and no room for irrelevance.

In addition, the velocity of digital technology has created a cacophony of marketing noise and color, an onslaught of marketing madness competing to be noticed. As a result, details often get missed, and many marketers settle for “close enough.” But “close enough” means profiling audiences instead of building relationships with individuals.

Customers are flooded by marketing – it’s like living in Times Square 24/7. It’s a spectacle to behold, but it’s impossible to have a meaningful conversation in that environment. This intense availability of options makes it incredibly easy for a customer to try something new – especially when the cost to switch is practically non-existent. Without relevance, relationships are short, and attention wanders.

In spite of the noise in the market, customers are creating relationships with brands to get more value from the business they provide – COLLOQUY has seen loyalty program memberships more than triple over the past 15 years. That’s because customers are willing to create relationships with brands – if those relationships deliver value. And that value can flow both ways.

Rich insights come from a relationship where the customer receives a true value for the information they share – and that, in turn, empowers brands to improve profitability and increase engagement with their highest-value customers.

In fact, small shifts in loyal customer behavior drive huge rewards. Bain & Company has found that increasing customer retention by 5% increases profits by 25-95%. That’s why loyalty remains a powerful strategy for companies seeking a deeper understanding of their best customers and improved ability to retain, grow, and acquire more high-value customers.

So, if loyal customer behavior offers such tremendous advantages, why are so many companies struggling with their loyalty programs? According to COLLOQUY, it’s because even though overall membership shows growth, loyalty program engagement has decelerated. For example, while the average U.S. household holds memberships in 29 loyalty programs, that same household is only active in 12.

As consumers, we establish relationships with brands to get something of value from the exchange. But when that value exchange doesn’t meet our needs, we split our share of wallet with another brand. Because let’s face it – customers aren’t interested in a company’s org charts and system integrations. When individual understanding is left out of their experience, customers feel betrayed. Their brand loyalty is ignored.

And all too often, they move on.

For decades, many brands have built a wall between their loyalty and engagement initiatives and the entirety of their customer experience, and that’s what’s driving the decelerating engagement. COLLOQUY advises marketers to leverage loyalty learnings across the organization, and ramp up integration of all channels to improve relevance and increase engagement with members. Rosetta Consulting’s 2014 Customer Engagement Survey finds that customers switch platformsup to 27 times an hour, yet they demand relevance and coherence in every interaction with the brand.

Yet, Forrester found that only 34% of loyalty marketers feel their internal systems (such as their loyalty and campaign management platforms) are integrated enough to leverage the insights they need to connect with customers. Forrester says “marketers need to step up their technology execution and analytical prowess to act on the useful customer insights they create.” Without doing so, marketers neglect to recognize their most valued customers wherever and whenever they engage with the brand.

As Fara Howard, global VP of Marketing for Vans, said at the 2015 Gartner Digital Marketing Conference, when marketers fail to use the insights they’ve gained, the customer is left in the cold, saying, “I love you, and you don’t even know my name.”

I love you, and you don’t even know my name.

- Fara Howard, VP of Global Marketing for Vans

Now, organizations are racing to connect digital touchpoints in a loosely woven fabric of point solutions, and they’re attempting to collect – but not always integrate – information through every channel. But that often leaves loyalty and engagement siloed off to the side.

Steve Dennis of Sageberry Consulting described it this way: “The battle between what your customer wants, needs and expects, and that which your various silo chieftains and defenders of the status quo try to hold onto, is intensifying.”

For Emily Collins of Forrester, the relationships companies have with their customers and the loyalty they demonstrate to those companies trump traditional competitive advantages. Loyalty is mission critical, she says.

In too many cases, the recognition we enjoy as loyalty members is disconnected from our experience elsewhere with the brand. We expect that a brand with whom we have a relationship should know us and recognize us everywhere we go – we’re part of the tribe. And yet, when we’re treated like strangers instead of family? It’s damaging to say the least, and regularly ends the relationship.

The speed at which always-on customers move today, the breadth of options available to them, and the constant hail of marketing messages they’re pelted with all work to erode the customer relationship – and can keep it from even getting started. Without properly onboarding new customer relationships, or bolstering the one-to-one connection with high-value customers, those relationships wither away, if they ever take hold in the first place. It sends you scrambling to find more customers to fill the gap, requiring 6-7x more resources to acquire new customers to replace existing customers.

But it doesn’t have to be that way.

Engineering Serendipity

Futurist Jason Silva, host of NatGeo’s Brain Games, sees the vast oceans of data our customers generate as an opportunity for brands to connect with empowered individuals in a more meaningful way. “We move into a world of engineered serendipity,” he says.

We move into a world of engineered serendipity.

- Jason Silva

The word “serendipity” means a “pleasant surprise.” When brands create relationships that please the individual by consistently delivering convenience, unique rewards, engaging moments, and a true value exchange for the information they share – it may be a surprise for the customer, but it’s the product of considerable engineering by the marketer.

By unifying a brand’s disparate understandings of individual customers, they can clearly see the highest-value among them, those that have high potential, and get a better view of where they should be focusing acquisition efforts in the future. Then, by leveraging those insights through an integrated technology platform – they can engage your best of the best, surprise and delight them, and deliver value worthy of both the business they give the brand and the information they share.

That’s exactly the opportunity businesses have today. They can create an experience that captures the moment with the customer and holds them rapt, and experience that makes them deeply loyal and incredibly engaged with the brand.

Every new insight creates the chance for companies to engineer a little serendipity, by connecting in right-time relevant ways, by surprising and delighting their customers, and by rewarding their relationship and engagement with the brand through an experience that keeps them coming back. Because engagement that cuts through the noise and truly connects with the customer as an individual, is the new loyalty.

There are as many tools in the loyalty toolbox as there are brands looking to use them. Creating the right experience for your customers is about listening to the information they provide – and answering with the most relevant approach for their needs. Relevance is what cuts through the clutter, connects with the individual, and keeps them from clicking away. Intimate relevance – driven by individualized insights – elevates the loyalty programs of the past to the engagement of the future. Because it’s all about the individual. Individualized engagement – fully-integrated into your enterprise and your customer experience – enables brands to use deep insights to connect in a vibrantly relevant way, and deepen engagement with individuals in a more rewarding manner – ultimately driving customer loyalty.

By centralizing the customer view to include the traditional behavioral data together with emotional insights, marketers crystallize their understanding of who their best customers are, what they need and want from their brands. They shift from just addressing audience segments to co-creating value exchanges with individual customers. And that experience touches every point of interaction with the customer – online, offline, wherever she is and whenever she is ready to interact.

This two-way exchange establishes more lasting relationships, fuels engagement, and allows marketers not only to increase their share of wallet, but as Hal Brierley, founder of Brierley+Partners, says, grow “share of mind’ with their customers. Make no mistake. This ain’t your grandma’s loyalty program.

Disney MagicBands

Borne out of a desire to remove friction and deliver a more magical Disney experience, the MagicBand is the key to providing a superior experience. RFID-enabled bands are individualized to each guest, and remove the need for paper tickets, FastPass+, and even your wallet. And it allows Disney to track your visit through its parks.

Imagine the look on your little princess’ face when Anna and Elsa greet her by name – and even know that she saw Mickey and Minnie at breakfast. Describing this individualized experience, Disney COO Tom Staggs quotes Arthur C. Clarke: “Any sufficiently advanced technology is indistinguishable from magic.”

By reducing even the friction of choice – what lines to wait in, where to hunt down Disney characters, even deciding what to eat – visitors free themselves up to experience more of the park – so they do more, create more memories, and ultimately, spend more. It’s this magic that shows how well brands can create opportunities for customers to clamor to share their information. As Cliff Kuang of WIRED wrote in his article about MagicBands, “No matter how often we say we’re creeped out by technology, we tend to acclimate quickly if it delivers what we want before we want it.”

No matter how often we say we’re creeped out by technology, we tend to acclimate quickly if it delivers what we want before we want it.

- Cliff Kuang, WIRED

Starbucks Rewards

Today’s loyalty members are leaving the plastic far behind, instead carrying their memberships with them via smartphone. The 2015 Bond Brand Loyalty Report called mobile the “strategic high ground in loyalty.” Combining communication, unique ID, and a payment vehicle, it adds utility to marketing by providing the customer with a link between online and the real world.

This trend prompted Starbucks to transition all of its Starbucks Rewards members from plastic cards to the Starbucks mobile app in 2016. After all, we’ve all stood in line at Starbucks, and as we waited, what did we have in our hands? Certainly a more reliable way of tracking payments than a gift card you might leave out of your wallet. In fact, Starbucks mobile app transactions accounted for 16% of total revenue, with 7 million transactions tracked per week, across the 13 million active app users – and over 9 million active My Starbucks Rewards members in 2015. By engaging loyal customers through mobile, Starbucks has embraced the digital experience as much as they have focused on the in-store “third place” experience. This clear, cohesive focus on their customer’s experience across all channels shows what loyalty can achieve when it is embedded throughout the connected experience.

If we think about the tens, hundreds of times per day we interact with different brands, the opportunity for any of them to resonate in a meaningful way is slight. The apps we interact with obsessively for a few weeks [remember Angry Birds? Words With Friends? Candy Crush?], the websites we visit, the emails we receive that go unread – we waste interactions without reservation. And yet, consumers are embracing entirely new channels through which we can connect with them.

Apple Watch

The Apple Watch – and other connected wearables like it – provide a unique opportunity to individualize relevance in a truly intimate way. Gathering data and providing valuable information as American Airlines and its AAdvantage program is doing through its Watch app version – enables brands to connect directly with known individuals, with a right-time relevant value exchange so imperative to how we go about their day that a competing brand never has a chance to disrupt the relationship. Loyalty and engagement are changing – as all of marketing is. But though the mechanics are evolving, the power remains.

Building a relationship with a brand’s best customers provides proven results. Engaging customers to propel them forward outpaces acquisition every day of the week. Understanding customers more deeply as individuals empowers companies to create a differentiated customer experience that keeps their best customers coming back. By embracing real customer obsession, unifying loyalty and engagement and infusing it throughout the customer experience, brands communicate clearly the value they offer their customers, and give them a real reason to connect and engage with a company – and be loyal now, and in the future.

I believe in the power of the individual – and in rising above mere mass personalization to connect with the customer through a truly individualized experience. Loyalty has always been about engaging the individual – and this next evolution in individualized loyalty and engagement will enable marketers to harness that power to retain and grow their most profitable customers.

Rather than being classified into a segment, each customer should be seen as a “segment of one.”

- Jeff Berry, former COLLOQUY Research Director, now Senior Director, LoyaltyOne Global Solutions

The days of grouping customers as “close enough” profiled segments are over. The future of marketing is all about engaging the loyalty of a segment of one.

jennebarbour

Day 28 - Recovery

Posted by jennebarbour Employee Dec 28, 2017

During the time of which I speak it was hard to turn the other cheek

To the blows of insecurity

Feeding the cancer of my intellect the blood of love soon neglected

Lay dying in the strength of its impurity

Meanwhile our friends we thought were so together

They've all gone and left each other in search of fairer weather

And we sit here in our storm and drink a toast

To the slim chance of love's recovery

 

I spent a decade in an ill-advised relationship with a college boyfriend, one utterly destined for failure. The kind of pursuit that – some years removed – makes you wonder what on earth you were thinking. Of course, as with so many ventures in one’s 20s, sheer willpower seems to rule the day, and it did in this instance as well.

 

Many friends got married right after college, and that fact, together with an over-reliance on more traditional models of courtship, seemed to mean that I needed to make this pairing work, despite countless red flags. “DANGER, DANGER,” was the theme of that time, but once you’ve committed that far, you sometimes feel like you have to earn your way out.

 

There I am in younger days, star gazing

Painting picture perfect maps of how my life and love would be

Not counting the unmarked paths of misdirection

My compass, faith in love's perfection

I missed ten million miles of road I should have seen

Meanwhile our friends we thought were so together

Left each other one by one along the road of fairer weather

And we sit here in our storm and drink a toast

To the slim chance of love's recovery

 

Only about half of the couples from that era survived intact. Divorces abounded, separations were frequent, and for a still fairly traditional gal like myself, my view of love and romance was positively shattered. I could not imagine how I’d gotten it so very wrong.

 

I had a core group of college friends who’d managed to stay in touch since graduation. And not just in touch, like we’d see each other once a year, but really in touch, like we emailed [this was in the years before group texts] each other every day, all day, for years. Jokes, griping about work, dumb stuff we’d done the night before, whatever you can think of.

 

We’d scattered across the country, but thanks to the miracle of Hotmail, we were bound together through all the challenges of post-grad young adulthood. We counseled each other on relationship fumblings, we encouraged each other to take new jobs, we gave backup for hard choices, and we got each other through a lot of tough times.

 

That same group had heard my complaints so often, they were exhausted by me, as much as they were still my friends. They talked to each other without me on separate threads about the abuse, my poor choices, and what they should say to me – what would even make sense or break through. They watched me shrink away into a person they didn’t recognize much anymore.

 

I didn’t recognize myself much, either.

 

Rain soaked and voice choked like silent screaming in a dream

I search for our absolute distinction

Not content to bow and bend

To the whims of culture that swoop like vultures

Eating us away, eating us away

Eating us away to our extinction

 

It took learning I was going to be a mother to change course. At the time, I couldn’t comprehend a better life for myself, but I knew I wanted a better life for my child. I moved home, rebooted my career, became a Mom, and thought, OK, this will be my path. I consigned myself to focusing on mommyhood and work, and letting all that hard work of trying to build a life with someone just go.

 

As my favorite oceanography professor once advised me, you have to fall in love with yourself first. So, I worked on that – and on the considerably easier business of falling in love with my newborn daughter. My friends remarked that the me of college seemed to return, finally. I relaxed. I laughed more. I wasn’t the frenetic, hand-wringing, tear-stained mess I’d been for so many years.

 

And as it turned out, one of our close-knit group and I fell in love. We were already great friends. We already knew all the things about each other that test newer relationships. We’d each hit our bumpy roads with those college loves, and we’d both learned a huge amount from our failures. And each of our life partners happened to be right under each of our noses for a decade. For me, it felt quite like a romcom, where the leads – friends for ages, constant sounding boards for failed romance after failed romance – finally look at each other… differently.

 

Oh. There you are.

 

Our individual tribulations and ultimate recovery from those foolish years had taught each of us an awful lot about life and love. Expectation and reality. Failure and true achievement. Frankly, life had beat all the nonsense out of us, and shaped each of us to be use to ourselves and to each other.

 

Once I abandoned any preconceived notions of how my life would go, I allowed that recovery to get underway, and my life began to unfold in a great many wondrous ways.

 

It’s the release that brings forward the recovery that has been a lesson I learn, and relearn, continually in life.

 

Oh how I wish I were a trinity, so if I lost a part of me

I'd still have two of the same to live

But nobody gets a lifetime rehearsal, as specks of dust we're universal

To let this love survive would be the greatest gift that we could give

Tell all the friends who think they're so together

That these are ghosts and mirages, all these thoughts of fairer weather

Though it's storming out I feel safe within the arms of love's discovery

 

How - and what - have you recovered in life? What lessons of recovery can you share with others?

 

Lyrics: “Love’s Recovery” Written by Amy Elizabeth Ray, Emily Ann Saliers • Copyright © EMI Music Publishing, Universal Music Publishing Group

Image credit: Mental Health Ireland

My parents – and my in-laws – like to tell us they’re cruising away our inheritance. Which is pretty much true.

 

But truer than that is the gift of so many memories. Last year, I wrote about love and cooking. Much of the time for me, these words are synonymous, though not exclusive. So many lessons of love were learned in my parents’ kitchen, and whether my children realize it or not, the lessons I offer them in my own kitchen are gifts of love – and down payments of their future inheritance.

 

I was reminded of this last night when my Dad emailed me, because he’d forgotten we recently changed our phone numbers to the Austin area code… while he and Mom were on a cruise, as it happens, spending our inheritance, of course.

 

Dad needed my Grandma’s peanut butter cookie recipe. Now, the context here is that Dad was calling from his sister’s house. Calling for their mother’s recipe. Which neither of them had.

 

I had to text my youngest brother to relay that I was evidently now the Keeper of All Family Recipes. Guardian of the Recipe Cards. The Recipe-ient. Top Chef?

 

I’m not sure exactly at what point all of these duties transitioned to me, but now my recipe box is evidently the Master. So I dug out my transcription of Grandma’s recipe [whatever has befallen the original???] and relayed the recipe to him so they could make the same cookies their Mom always made them.

 

I needn’t fear an estate tax. I have no land heading my way, nor titles, nor boxes of jewels. I have a greater chance of inheriting decluttering work than anything else, but I also have a wealth of love notes in the form of my family’s recipes. Most of which are already in my recipe box, but clearly many more to be gathered, not unlike the monks of yore copying ancient texts to prevent them from slipping into oblivion.

 

So while they aren’t anything revolutionary, I bequeath to you all one recipe, always made with love, by my Grandma, my Dad, and now by me.

 

Grandma Hamlin’s Peanut Butter Cookies

 

1 cup white sugar

1 cup brown sugar

1 scant cup shortening

1/4 tsp. salt

3 cups flour

1 cup peanut butter

2 eggs

2 tsp. baking soda

1 tsp. vanilla

 

Blend together sugars, shortening, salt, peanut butter, eggs, baking soda, and vanilla. Add flour and form into about 1” balls. Press down with fork tines, making a hash #. Bake at 375° for 10 minutes.

 

May you inherit memories a-plenty from your family, and may you pass them down like the finest of jewels.

 

What will your inheritance be? And what will those who come after you inherit from you?

 

Image credit: Saveur Magazine. Not even gonna Sarah Sanders you - I didn't make these cookies, but mine look basically just like this, as does essentially everyone else's.

jennebarbour

Day 16 - Backbone

Posted by jennebarbour Employee Dec 16, 2017

 

Jared Dunten is a loving husband and father, an extremely talented artist and copywriter, a fellow Aggie, and the quadriplegic survivor of an unfortunate diving accident.

 

Jared was paralyzed after diving into the Rio Grande in 2000 following a camping trip with a buddy from work. He began painting in 2002, and now continues to “paint himself out of the wheelchair,” focusing on not only his art, but his research advocacy for a cure for paralysis from spinal cord injury.

 

While Jared’s skill with a paintbrush is impressive by any standard, the fact that he expresses his vision while holding a brush in his mouth makes me feel both awe and a general sense of disappointment in my own skill level on a wide variety of subjects. His work spans a number of styles – some abstract, some incredibly detailed, landscapes, portraits, still life… I can’t imagine a subject he’s unable to capture beautifully.

 

He’s also an old college friend of my husband, which is how I came to meet him last weekend at his recent art show at Star Hill Ranch here in Austin. Matt and Jared spent some time catching up and talking about their days in the Corps at A&M, and I got to meet Jared’s wife Kimberly and their adorable twin sons, before our kids and I decided which pieces of his work we needed to add to our home.

 

We settled on a small print of The Chief and a canvas print of Randal, a bison in profile that we couldn’t get out of our heads. Jared shared that when he originally painted The Chief, the five-foot by five-foot canvas was so large that he continued to bump his feet into it as he leaned in to reach the canvas. He had to use extra-long brushes to avoid smudging his work, since he holds each one in his mouth. The detail of that work is incredible – I couldn’t paint as well if you gave me a decade to try.

 

As we wandered through the gallery, our son found Mea Culpa on a wall off to the side [as an original piece, it was protected from kids running around and adults with wine]. He retrieved me from the other side of the room, and quietly asked if it was about Jared’s accident. Four feet by two feet, it portrays a skeleton viewed from behind, and the detail and coloring appear purposefully unfinished, perhaps still under consideration.

 

While he was nervous to ask, my son asked Jared what the story behind the painting was. Jared explained that Mea Culpa means “my fault” in Latin. The work is his way of processing his accident, and his role in his resulting injury. It’s an acknowledgment of his responsibility, an expression of remorse, and an offering of forgiveness to himself for his injuries. He also shared that it’s a work progress – just as his healing process continues.

 

Despite the day-to-day challenges Jared and his family face, they’re as warm and kind as anyone you could meet. The twinkle in Jared’s eye and his broad smile are infectious, and his determination is obvious. He is confident that medical breakthroughs will one day allow him to walk again. I think he’ll be right.

 

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I meant to write this post differently. When I originally volunteered to write about the word backbone, I didn’t expect a both a figurative and literal connection – I just wanted to write about determination, scrappiness, staring down a challenge. Grit. But sometimes stories find their own way through.

 

I planned to write about my own challenges, and how being raised to have backbone in life helped me to overcome them. But suddenly, that seemed diary fodder, not helpful to anyone else, or interesting in any way. In considering his bravery, humor, confidence, courage, kindness, and joy I was struck by an entirely new imagining of the word – one personified by Jared himself. He’s both grit and grins.

 

Jared’s art show allowed Matt to reconnect with his old friend, and introduced me to someone I didn’t already know from those same A&M days. I knew Jared’s story before, and was as inspired by him then as I was meeting him in person.

 

Challenges incarnate variously. Some break us. It’s in the getting back up that we find our backbone. That getting back up may feel impossible or improbable. It can be an ongoing practice, day by day. It may take other hands to help lift us. And as we rise again, we may be more flexible, less rigid, but stronger none the less. It’s embracing that new possibility – that what comes after the tragedy may be a dawn different than what we expected – that proves our own backbones.

 

Because of the common Aggie heritage, and because inevitably, all thoughts of A&M lead me back to Robert Earl Keen, Jr. and my very favorite of his songs – The Front Porch Song – I’ve had this playing in my head while I’ve been writing this post. Now, you too can hum along.

 

This old porch is just a long time

Of waiting and forgetting

And remembering the coming back

And not crying about the leaving

And remembering the falling down

And the laughter of the curse of luck

From all of those sons-of-bitches

Who said we'd never get back up

 

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What are the challenges you've faced in life, in your career? What has tested your own backbone?

 

Image credit: Jared Dunten

Lyrics: Robert Earl Keen, Jr.

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