Notes on affinity marketing, 10.31.2014

Notes on things I read this week to help corporate pros in affinity, affiliate, and partnership marketing excel in a changing field.

Oreo markets at rocket speed -- but are sales moving with the same velocity?

Ever since it’s ‘You can still dunk in the dark’ tweet during the Super Bowl blackout of 2013, Oreo has received high praise for its ability to capitalize on cultural events and create buzz. Call it newsjacking, call it real-time marketing, call it cultural marketing … but can you call it effective? Fast Company wonders:

Since Oreo embraced culture, the brand's annual sales growth is up from the low double digits to more than 20%. But analysts attribute that to its expansion into emerging markets in Asia. It's very hard to prove that new-media campaigns increase sales.
[…]
And what did this do for cookie sales? Mondelēz does not yet know. Bonin Bough's tactics may well be revolutionary, and they certainly give Oreo the sheen of a vital brand. But in other ways his efforts really show that there is nothing new under the marketing sun. Real-time marketing is another gun in the corporate arsenal, and like all the others, it's damn hard to tell if it ever hits the mark.

Oreo owns this tactic, for sure. But it seems like they have to commit an awful lot of resources to speed and creativity for something that provides a murky ROI.

The Dark side of content marketing

Content marketing to a partner’s audience or customer base is a key part of many affiliate relationships. But wtihout a clear strategy and understanding of a partner’s audience, content marketing can be not just ineffective, but damaging to your brand. Amongst other scary facts, marketingprofs shares that 74% of site visitors get frustrated when content is irrelevant to them.

Congressman wants to regulate loyalty programs

Seems like loyalty programs, particularly in travel, are getting a lot of grief lately. Terms change on a whim (rarely for the customer's benefit) and now a Florida congressman wants them investigated:

But it just so happens that Grayson is a member of Congress. And as such, he can ask the U.S. Department of Transportation’s Office of Inspector General to investigate airline loyalty programs.
That’s exactly what Grayson, a Democrat, did this summer, and now an audit is underway. It will take about a year for the inspector general to determine whether airline loyalty program practices are unfair and deceptive. But when the dust settles, the DOT might be closer to cracking down on one of America’s favorite addictions: collecting points and miles.
Public opinion on the issue is split. While some frustrated passengers side with the congressman, others vehemently disagree that the government ought to get involved in regulating their points and miles. A new survey by market research firm Colloquy reflects this deep division. It found that 54 percent of U.S. loyalty-program members are “unhappy” with their reward options. Also, 48 percent say that they’ve been “frustrated” by the reward redemption process.

Others argue that reward programs, particularly with the airlines, are used to treat the most profitable customers much better than others. Well, of course they do. There's nothing wrong with catering to your most profitable customers. If the government wants to review loyalty programs because they may use shifty tactics to change rewards, then fine. But the argument that loyalty programs create an unfair divide amongst customers is ridiculous. 

 

 

Posted on October 31, 2014 .

Ten rules for building strong partnership marketing relationships

Here's the good news: it's pretty straightforward to stand out as a good marketing partner. Here's the bad news: You have to be well-organized, dilligent, and consciencious. Also: It's hard work.

All I can write is what I know, what's worked for me. I'm definitely not good at doing all these things all the time and I fail regularly. As do the many excellent people I work with, which is why being forgiving is critical trait for success.

But working in this space over time, I've seen that if you can be consistent -- not perfect -- in these areas, you'll be more successful than not. You'll also attract better people and companies to partner with.

Do what you say
Don't say you're doing to do something by a certain time and then not do it. Don't offer up a communication component in your partner program and then leave it out when it comes time to execute. Do what you say and say what you do.

This is really about organization, not honesty. Most people are honest in their dealings. But you need to keep track of your commitments and then execute.

If you're going to miss a deadline (as we all do from time to time) send up a flare in advance. Let your partner know the miss is coming, and reach out share the date and time when you will deliver on your commitment. You'll be forgiven fare more often than not.

Underpromise and overdeliver
Exceed expectations in unanticipated ways. Leave yourself some wiggle room to overperform. Deliver ahead of schedule, or offer some extra value that maybe you didn't put on the table as part of the core negotiation.

Give more than people expect and you'll get more back than you expect. Very simple.

Hand-write thank you notes
This is a trick I learned from a former boss. No one does this anymore, because it's a pain. You need stamps, thank you cards, a decent pen, and penmanship that doesn't resemble hieroglyphics. So much easier to dash off an email -- which is why everyone sends the email.

I'm not always great about doing this, but when I do, it always has a positive effect. Try it five times and see what happens.

Listen
I'm an introvert at times, which is unique amongst many of my peers in partnership marketing. It also gives me an advantage. Because I'm not trying to dominate the conversation, I'm more inclined to hear what the other person says.

So just stop talking for two seconds. Ask good questions and hear the replies. You will craft a better partnership program and build more trust when you really hear what the other person is saying. They will see it in your actions, which will better align to their needs and goals. Listening pays off.

Understand your partner's business
Many of our best marketing partners could easily step in and pitch our business to someone else. They've internalized what PODS is about and align our business needs to their program.

Listening to your marketing partner is critical here, but so is a little research on your part. The internet is your friend. Read the partner's web content. What is their USP? Read customer reviews. Understand who else plays in their space.

In some ways, you're acting as an ad agency for your partner by providing them with marketing opportunities. Know their business and you will serve it better. Much better.

Understand what you accelerate
The only reason to enter a marketing partnership is to either accelerate or deliver more efficiently business growth and/or customer value. What are you bringing to the table that creates velocity for your partner? Why aren't they just doing it on their own? Think this through and be able to articulate it clearly and simply.

Jointly define success
You've put a new deal in place. You have your marketing plan and your action plan and you're ready to run. Where's the finish line? And is your partner's finish line in the same place as yours? How will you measure pace along the way to know if things are going well? Jointly agree on a set of metrics -- revenue, service level markers, lead conversion, whatever -- that sets a common and objective definition of success.

Say yes
Be open to new ideas and alternate ways of doing things. The best way to say yes and to be open to trying new things is to minimize risk -- the risk of wasting money, yes, but also wasting time. Develop a simple-to-implement testing framework that lets you address a subset of customers and see if it works. Your testing framework should let you ramp up and ramp down quickly. Sometimes we say no because doing a program seems like a ton of work and the return is uncertain. You can miss big opportunities that way, however. So set up your nimble marketing lab and always have petri dishes with interesting things growing in them. Some will grow bold and bright. Some you'll just toss in the trash. But you'll never blow up the whole building if you have your lab set up and experiment correctly.

Say no
Sometimes it's just wrong for your customers, for your partenrship strategy and capabilities, or for your company. And then you need to politely say no and move on. But in order to differentiate between what belongs in the testing lab and what belongs in someone else's lab, you must have a deep understanding of your customers, partnership strategy and program capabilities. Being able to say no quickly is a gift -- to yourself, your team and also to the other party, who, when you say no for the right reasons, will be given time and energy to work on something that will be more successful.

Be forgiving. Sometimes.
People make mistakes. They screw up. I do it daily. So forgive occasional transgressions and just move forward. Forgiving comes with caveats, however. Don't forgive patterns of mistakes -- the same issues over and over. And don't forgive bad or subversive behavior.

If you do forgive people for the same issues over and over, or tolerate unseemly behavior, then you get what you deserve: misery and a big drain on your time and energy. Know the difference between when to forgive and when to simply move on. When it's time to move on, do so without drama. You're not trying to win over someone else, you're trying to protect your time and energy.

Building great partnership marketing relationships isn't complicated. But it does take organization, strategy, and consistency. Start there and you'll have a strong foundation for your programs.

Posted on September 5, 2014 .