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Hiring Customers to Write Your Ads?

More Efficient Ways Exist to Involve Your Customers

October 2006 By Denny Hatch
11

In the News

Letting Consumers Control Marketing: Priceless
ORLANDO, Fla.—REMEMBER the old advertising slogan, “Let Hertz put you in the driver’s seat”? Marketers of all sorts are now being urged to give up the steering wheel to a new breed of consumers who want more control over the ways products are peddled to them. Exhortations to bring consumers into the tent dominated the agenda of the 96th annual conference of the Association of National Advertisers, which took place here Thursday through yesterday. The nearly 1,000 people who attended the conference—a record for the trade group—heard one speaker after another describe a need to replace decades worth of top-down marketing tactics with bottom-up, grass-roots approaches.
Stuart Elliott, The New York Times, Oct. 9, 2006

“Ban’s new approach seems to be working,” reported The Wall Street Journal. “After a three-year decline, sales of Ban rose 13.6% in the 52 weeks ended November 27, according to market researcher Information Resources, Inc.”

Trouble is, the campaign seems to be working. Is it really? Or was it a hot summer and sweaty young women grabbed the first deodorant they saw on the shelf? In that case, the sale was the result of placement. Or was it point-of-purchase advertising? Or TV? Or the recommendation of a girlfriend?

The object of general advertising is to create awareness in the hope that the message will be remembered later at the store. General advertising is a fuzzy, inexact science.

Direct, on the other hand, is all about changing behavior—making an offer and getting a person to respond with an inquiry, order or donation.

For example, a direct marketer would add a $1 off coupon to the bottom of the Ban ad, count the coupons and know for sure whether or not the effort made money.

The word “seems” is not in the direct marketer’s lexicon.

Why Bring in Amateurs to Do a Professional’s Job?
The amateurs—mostly teens and kids in their early 20s—already are making little video movies about products that interest them to post on the Internet or creating audio files for use in iPods. Some are real while others are parodies. Some are raunchy, such as the variations on MasterCard’s “Priceless” promotion.

GM, Subaru, Nike and Procter & Gamble have tapped these fledgling marketers. “The power is with the consumer,” Procter’s CEO A. G. Lafley said. “Marketers and retailers are scrambling to keep up with her. We’re on a learning journey together.” Describing some consumer efforts he said, “Most of the experiments don’t work, but we have to be out there, trying.”

Video game manufacturer Electronic Arts invited 15 players to California to make films based on scenes from the games; these are scheduled to start running this month in print, online and on TV.

The Fallacy
Most of these consumer ads are created by very young people, presumably with time on their hands because they’re not yet in the work force. If you want to get into advertising or filmmaking, modern electronic technology is marvelous in enabling you to create a portfolio of work. It can be e-mailed instantly all over the world to prospective employers or producers—along with a cover letter and résumé—without the cumbersome business of coming to an office and doing a lame monologue while threading film into a projector.

But these consumer-driven ads by kids and for kids make up a tiny universe of advertising opportunities. They’re cute. They’re fun. But they cannot ever be big business.

In addition, these young people probably aren’t students of advertising and don’t know a benefit from a Benifer or the purpose of a headline, subhead and body copy. They don’t know how to write persuasive copy or make an offer. If the statistics about American education are to be believed, a large percentage of young people aren’t proficient in the English language.

Involving Customers: Focus Groups
I’ve observed many focus groups where selected consumers have discussed a product or service—why they like it and why they don’t.

Marketers who think they can run their own focus groups make as big a mistake as do advertisers who spend money on a campaign that’s entirely created by customers.

A focus group is made up of a panel of consumers who are usually offered an honorarium for their time. They gather around a conference table in a two-room suite—a meeting room and a hidden room where the proceedings can be videotaped and observed through a one-way mirror by clients, account executives and corporate management. Light refreshments are provided.

The key to a successful focus group is the facilitator, a seemingly neutral emcee who asks dispassionate, matter-of-fact questions with one object in mind: truthful answers that the client wants to hear and doesn’t want to ask about his own product or service and those of the competition. Above all, a successful focus group will come up with marketing ideas.

Good facilitators don’t use the subjective. Asking a consumer if she would buy such-and-such a product at this price or that price is a waste of time. The quiet comfort of a conference room with no interruptions bears no relationship to the real world, where buying decisions are made: a home with kids running around or a store in a busy mall with crowds of people pawing over merchandise.

Where focus groups can be enormously helpful is in articulating product benefits, copy points, unique selling propositions and user reactions—both to a product and its marketing.

For a copywriter, the focus group can be marketing gold. Hopefully, participants’ words and ideas can be shaped into a marketing campaign that will kick butt.

Involving Customers: Testimonials
The hierarchy of customer relationships is well known:

* Suspect—a person who fits the qualifications of a customer—a man, a woman, a kid, a boomer, someone who has some money to spend and isn’t homeless.
* Prospect—someone who evinces interest in what you have to offer.
* Customer—a first-time buyer.
* Repeat Customer—here’s where you start to make big profits.
* Advocate—a repeat customer who loves to tell others about the product and will give you a testimonial.

Direct marketers have in their brains a built-in checklist of the essential mechanical elements for a marketing effort: offer, response device, guarantee and testimonials.

Whenever I acquire a new client and am in the learning phase of the business, I always ask for customer testimonials. I cannot tell you the number of marketers who receive testimonials from happy customers and do nothing with them and aren’t even sure where they’re filed—if filed at all.

If a customer mails or e-mails a testimonial, you don’t own it and may not use it without permission. Under the copyright law, all the words—and the illustration, if one is included—are the creator’s property.

Here’s what to do when you receive a testimonial that you’d like to use:

* Write or call the person with effusive thanks for the kind testimonial and ask if you can use it in your advertising. If the answer is yes, mail a permission form.

* Have your lawyer draw up a permission form. At the top should be a warm thank you for the kind words reproduced below. The next paragraph is a statement—probably in the first person—saying that the person approves what has been written for use in advertising and marketing. Keep it simple, sans mousetype and legalese. Edit it lightly if you must, using the words you want and cleaning up the syntax. Provide a place under the testimonial for a signature.

* You also must gain permission to use the person’s name. Is it “Doris Smith” or “D. Smith” or “D.S.?” Can you use the city and state or just the state or no location at all? If B-to-B, can the person’s company be listed?

* Enclose the following: A warm cover letter, two copies of the permission statement—one for you and one for the person’s files—and a return envelope personally addressed to the signer of the cover letter with a First Class stamp affixed (not a metered indicia). This gives a sense of personal connection to the product and the company.

Involving Customers: Surveys
One of the smartest guys I ever worked for is Bob Doscher of Response Innovations. When he was marketing director at Historical Times Publishing outside Harrisburg, Penn., Doscher designed a series of customer questionnaires.

His marketing and creative team researched product ideas that were boiled down to a one-paragraph description of 250 to 300 words. Beneath these paragraphs were boxes to tick that rated the product: Would Order; Might Order; Some Interest; No Interest.

This survey was mailed to a select group of customers—presumably repeat buyers who recognized the company and liked its products. Included were a cover letter and a $1 bill.

When all the responses were in house, Doscher would practice his proprietary alchemy and come up with a list of products to produce, and, amazingly, highly accurate sales and revenue projections and the bottom line.

One year he handed me the specs for nine products and I wrote nine direct mail packages for these brand-new, untested products. Eight of them went on to be highly successful controls. The one that bombed was a needlepoint product where the design was at serious variance with what the survey described and never should have been mailed.

Involving Customers: Listen to the Marketplace
When my wife, Peggy, and I were publishing the newsletter, WHO’S MAILING WHAT!, we analyzed 1,500 to 1,800 mailings a month and listed them in the back of the publication. Subscribers could order photocopies—black-and-white folding dummies—of these pieces for a price.

Several subscribers stopped me at a DMA conference and told me they were suppliers to the direct mail industry. They would pay me a nice pinch of change, they told me, if they could get the names and addresses of the mailers of these packages for prospecting purposes. That was in March.

Three months later I heard directory expert Russell Perkins give a talk at the Newsletter Association conference in Washington, D.C. I introduced myself, briefly described my newsletter and what my subscribers told me.

“Is this a possible directory?” I asked. Perkins thought a moment and said, “Absolutely.” Together we published “The Directory of Major Mailers & What They Mail,” which is still in print today.

Takeaway Points to Consider:

* Loyal customers—repeat buyers of your products—often are glad to help you with your marketing and advertising.

* I would suggest that this be done on a highly personal basis—not using any kind of mass communication.

* If you go the focus group route, use professionals who specialize in this form of research. Don’t try it yourself.

* Never use a testimonial without a signed permission. A surprised customer could feel betrayed and make trouble.

* For surveys, employ a specialist in this form of research.

* Get out and talk to your customers, enjoy their praise, take their gripes seriously, and if their ideas have merit, act on them.

A Word on Upcoming Issues of BusinessCommonSense.com
My wife, Peggy, and I are leaving Saturday for the Direct Marketing Association conference in San Francisco. The next issue of this e-zine is scheduled for Tuesday, Oct. 24, 2006.

In addition to publishing the show dailies from San Francisco, the Target Marketing Group also will present “Live from DMA 06” online during next week’s conference.

You can find show dailies, slide shows and podcasts, including a special edition of Business Common Sense, on any Target Marketing Group magazines’ Web sites:

http://www.TargetMarketingMag.com
http://www.CatalogSuccess.com
http://www.FundRaisingSuccessMag.com

Finally, if you’re attending the DMA conference, please stop by to say hello at the Target Marketing booth where Peggy and I will be hanging out during the show. Booth No. 902.

Web Sites Related to Today's Edition:

Russell Perkins, president, InfoCommerce Group Inc.
http://www.infocommercegroup.com

Bob Doscher, Response Innovations
http://www.responseinnovationsinc.com
 
11

COMMENTS

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Most Recent Comments:
Susan Pepperdine - Posted on October 16, 2006
Both Patricia and Jay think there is a word "alot." Actually, a lot of people think so...but the term is ALWAYS two words. It's hard to concentrate on their opinions when their spelling is wrong.
Anita Charney - Posted on October 13, 2006
Denny, In response to your column, "Hiring Customers to Write Your Ads," several years ago, as a direct mail vp for a company in San Diego where I had to create & implement the marketing plan & then write the copy, I successfully re-designed a company's 2-page space ad campaign using powerful customer testimonials as the grabber headline that promised a solution to the main challenges that faced the target audience.
Scott - Posted on October 13, 2006
Has anyone stopped to think that the campaign to create the ad is actually the ad? Involve your client, make them come up with reasons they like it, want it need it, talk to their friends about it. Teens who win or who submit will tell their friends about the product. Word of mouth advertising is a great way to generate extra business. They key being extra business. The main focus should be on all the things that Denny mentions. Referral's are the lifeline of a lot of business. They campaigns are just another way to generate word of mouth. The problem is you can't measure it and you sure can't depend on teens keeping you in their current fad.
Patricia - Posted on October 13, 2006
I enjoy reading Denny Hatch?s Business Common Sense and have learned alot about direct marketing through the insightful observations provided. But I?m not 100% sure about your skepticism here. Although there are bound to be major flubs when trying new marketing approaches [Chevy Tahoe of course], these new consumer-drives-the-content approaches are symptoms of something larger. Sure they?ve been around in some form for a while, but it?s taken the internet and perhaps ?web 2.0? to push it into the zeitgeist. The disintermediation that internet relationships cause [between advertiser, consumer, and product provider in this case] is increasing. The middleman is being assaulted. Napster was the music industry?s call to arms, Ebooks and online content for publishers, and now we have consumer created advertising challenging the traditional ad agency, another form of middleman. Technology is what?s driving this. Without it, consumers would still be passive, but in this new online environment everything is up for grabs.

Personally I find disintermediation interesting in that it happened 20 yrs ago in graphic design with the introduction of the Apple computer and DTP. In no time, everyone with a computer and some software transformed themselves into Graphic Design Experts, even if they didn?t know what they were doing. Those of us who were studying design and apprenticing couldn?t believe it. The result was some really awful design. It may have taken a while, but the same thing is happening all over again in advertising.
Craig Anderson - Posted on October 12, 2006
I have enjoyed Denny's Business Common Sense for several years now. But I have to say, this issue suggests that Business Common Sense is out of touch with new media trends of the internet. There are very effective ways to add user generated content to marketing campaigns. And there are ways NOT to do it, like the Chevy Tahoe campaign (google Chevy Tahoe). I suggest you listen to Joseph Jaffe's "Across the Sound" new marketing podcast to learn more about new media issues and lively discussions about using consumer generated content. Using consumer generated content does NOT mean giving up control to those consumers. This is the mistake GM made and was a disaster.
Willilam Gohde - Posted on October 12, 2006
Whenever I begin work with a new client I often talk to the sales staff. I do this informally, not in some stiffling conference room. And I keep names confidental. I want them to feel secure and comfortable. I also talk to the customers. The input is always good and often uncovers problem areas the client was not aware of. Management often is too to busy with operations and is insulated from what is happening outside in the trenches. You would be amazed at home many people (sales and customers alike) are gratified at having someone ask their opinion. In regards to having amateurs write ads: Sounds like the client has abdicated creative responsibility or has no faith in their agency or creative department. It also sounds like they are clueless when it comes to really knowing their customer.
David N. Rosen - Posted on October 12, 2006
This current fad of having consumers write your ads is another variation on the identity crisis traditional media is undergoing in a world transformed by the internet. And much like the analogous ?Reality? television, it is largely a bogus, contrived, manipulative imitation of the real interactivity and participatory DIY quality of the web. The brand marketing mystics will run with it as long as clients can be convinced that it ?seems? to be working, as indicated by gross sales figures and sophisticated surveys measuring ?share of mind?.
Virginia France - Posted on October 12, 2006
Fifty years ago BBD&O ran a campaign for the United Fruit Company inviting kids to submit slogans promoting bananas. The winning slogans were featured in ads in American Girl, Boy's Life, ad other similar magazines aimed at kids. The ads featured childish drawings(by a professional illustrator) and included--amazingly--the kids' names, age, and addresses. I remember all this because I won $25. with the slogan, "Banananananas-- hard to stop when you spell it, but harder than that when you eat it!" I also remember receiving a sackful of mail from other twelve-year-olds looking for pen pals. For me the big thrill was not seeing my name in print or even getting the check, but getting a long-distance phone call from BBD&O in New York.
Barb Riley - Posted on October 12, 2006
I don't think people in the industry realize how insidious this trend can become. This "by kids, for kids" advertising might be "cute" now, but they won't be kids forever. They'll grow up expecting to have control over everything they see and hear. They're all about buzzwords and fads. They think they can become rock stars overnight. The "me generation" has been reborn, in spades. You can't give them that kind of power and expect them to happily relinquish it. They'll become even more demanding and harder to connect with through advertising messages. Our jobs will grow exponentially more difficult over time.
As for testimonials, that's different. If they're used right, they can be a very effective tool. We use them on websites, in brochures, even in an ad campaign for one client where we invited people to share their "happy stories" with us about the product. Everyone who wrote was sent a logo hat. We selected a few for print ads in trade and consumer magazines, with photos of the writers, and they've been a great success.
Mick Prodger - Posted on October 12, 2006
As a creative director I can see sthe benefits of consumer input - it helps us stay current with the market (though I think the public at large is smarter than we give them credit for, and definitely wise to the manipulation of focus groups). But surely the real message here is actually a more contrived and actually quite clever (in its own way) piece of a much bigger picture. The real publicity is not in the cute (but lame) ads created by the teenage consumer, but in convincing the teenage market that these ads are actually created by their peers, rather than a disconnected and overpaid Madison Avenue executive! Putting your company, and thus your product, on a parallel with a segment of the market that sometimes has difficulty relating to corporate America. It's not particularly new, either - testimonial advertising messages delivered by "real" consumers was used for years until has-been celebrities cornered the market and took away any shred of authenticity allong with their six-figure fees. Teenage consumers creating ads is just a slightly new twist. Madison Avenue beware - it will live before it dies!
Jay - Posted on October 12, 2006
I vote with you--putting the power of brand marketing and advertising into the hands of consumers will prove to be a silly fad. The key to marketing is understanding what the consumer wants and the types of messages they respond to...Dimwitted home-made commercials or tag lines have a short shelf life..they might seem cute to the 30-something advertising execs...but like you said..is that what's really selling the merchandise...Proving once again that advertising industry keeps chasing its tail, and their clients are getting stuck up the tush with approaches that cost alot
Click here to view archived comments...
Archived Comments:
Susan Pepperdine - Posted on October 16, 2006
Both Patricia and Jay think there is a word "alot." Actually, a lot of people think so...but the term is ALWAYS two words. It's hard to concentrate on their opinions when their spelling is wrong.
Anita Charney - Posted on October 13, 2006
Denny, In response to your column, "Hiring Customers to Write Your Ads," several years ago, as a direct mail vp for a company in San Diego where I had to create & implement the marketing plan & then write the copy, I successfully re-designed a company's 2-page space ad campaign using powerful customer testimonials as the grabber headline that promised a solution to the main challenges that faced the target audience.
Scott - Posted on October 13, 2006
Has anyone stopped to think that the campaign to create the ad is actually the ad? Involve your client, make them come up with reasons they like it, want it need it, talk to their friends about it. Teens who win or who submit will tell their friends about the product. Word of mouth advertising is a great way to generate extra business. They key being extra business. The main focus should be on all the things that Denny mentions. Referral's are the lifeline of a lot of business. They campaigns are just another way to generate word of mouth. The problem is you can't measure it and you sure can't depend on teens keeping you in their current fad.
Patricia - Posted on October 13, 2006
I enjoy reading Denny Hatch?s Business Common Sense and have learned alot about direct marketing through the insightful observations provided. But I?m not 100% sure about your skepticism here. Although there are bound to be major flubs when trying new marketing approaches [Chevy Tahoe of course], these new consumer-drives-the-content approaches are symptoms of something larger. Sure they?ve been around in some form for a while, but it?s taken the internet and perhaps ?web 2.0? to push it into the zeitgeist. The disintermediation that internet relationships cause [between advertiser, consumer, and product provider in this case] is increasing. The middleman is being assaulted. Napster was the music industry?s call to arms, Ebooks and online content for publishers, and now we have consumer created advertising challenging the traditional ad agency, another form of middleman. Technology is what?s driving this. Without it, consumers would still be passive, but in this new online environment everything is up for grabs.

Personally I find disintermediation interesting in that it happened 20 yrs ago in graphic design with the introduction of the Apple computer and DTP. In no time, everyone with a computer and some software transformed themselves into Graphic Design Experts, even if they didn?t know what they were doing. Those of us who were studying design and apprenticing couldn?t believe it. The result was some really awful design. It may have taken a while, but the same thing is happening all over again in advertising.
Craig Anderson - Posted on October 12, 2006
I have enjoyed Denny's Business Common Sense for several years now. But I have to say, this issue suggests that Business Common Sense is out of touch with new media trends of the internet. There are very effective ways to add user generated content to marketing campaigns. And there are ways NOT to do it, like the Chevy Tahoe campaign (google Chevy Tahoe). I suggest you listen to Joseph Jaffe's "Across the Sound" new marketing podcast to learn more about new media issues and lively discussions about using consumer generated content. Using consumer generated content does NOT mean giving up control to those consumers. This is the mistake GM made and was a disaster.
Willilam Gohde - Posted on October 12, 2006
Whenever I begin work with a new client I often talk to the sales staff. I do this informally, not in some stiffling conference room. And I keep names confidental. I want them to feel secure and comfortable. I also talk to the customers. The input is always good and often uncovers problem areas the client was not aware of. Management often is too to busy with operations and is insulated from what is happening outside in the trenches. You would be amazed at home many people (sales and customers alike) are gratified at having someone ask their opinion. In regards to having amateurs write ads: Sounds like the client has abdicated creative responsibility or has no faith in their agency or creative department. It also sounds like they are clueless when it comes to really knowing their customer.
David N. Rosen - Posted on October 12, 2006
This current fad of having consumers write your ads is another variation on the identity crisis traditional media is undergoing in a world transformed by the internet. And much like the analogous ?Reality? television, it is largely a bogus, contrived, manipulative imitation of the real interactivity and participatory DIY quality of the web. The brand marketing mystics will run with it as long as clients can be convinced that it ?seems? to be working, as indicated by gross sales figures and sophisticated surveys measuring ?share of mind?.
Virginia France - Posted on October 12, 2006
Fifty years ago BBD&O ran a campaign for the United Fruit Company inviting kids to submit slogans promoting bananas. The winning slogans were featured in ads in American Girl, Boy's Life, ad other similar magazines aimed at kids. The ads featured childish drawings(by a professional illustrator) and included--amazingly--the kids' names, age, and addresses. I remember all this because I won $25. with the slogan, "Banananananas-- hard to stop when you spell it, but harder than that when you eat it!" I also remember receiving a sackful of mail from other twelve-year-olds looking for pen pals. For me the big thrill was not seeing my name in print or even getting the check, but getting a long-distance phone call from BBD&O in New York.
Barb Riley - Posted on October 12, 2006
I don't think people in the industry realize how insidious this trend can become. This "by kids, for kids" advertising might be "cute" now, but they won't be kids forever. They'll grow up expecting to have control over everything they see and hear. They're all about buzzwords and fads. They think they can become rock stars overnight. The "me generation" has been reborn, in spades. You can't give them that kind of power and expect them to happily relinquish it. They'll become even more demanding and harder to connect with through advertising messages. Our jobs will grow exponentially more difficult over time.
As for testimonials, that's different. If they're used right, they can be a very effective tool. We use them on websites, in brochures, even in an ad campaign for one client where we invited people to share their "happy stories" with us about the product. Everyone who wrote was sent a logo hat. We selected a few for print ads in trade and consumer magazines, with photos of the writers, and they've been a great success.
Mick Prodger - Posted on October 12, 2006
As a creative director I can see sthe benefits of consumer input - it helps us stay current with the market (though I think the public at large is smarter than we give them credit for, and definitely wise to the manipulation of focus groups). But surely the real message here is actually a more contrived and actually quite clever (in its own way) piece of a much bigger picture. The real publicity is not in the cute (but lame) ads created by the teenage consumer, but in convincing the teenage market that these ads are actually created by their peers, rather than a disconnected and overpaid Madison Avenue executive! Putting your company, and thus your product, on a parallel with a segment of the market that sometimes has difficulty relating to corporate America. It's not particularly new, either - testimonial advertising messages delivered by "real" consumers was used for years until has-been celebrities cornered the market and took away any shred of authenticity allong with their six-figure fees. Teenage consumers creating ads is just a slightly new twist. Madison Avenue beware - it will live before it dies!
Jay - Posted on October 12, 2006
I vote with you--putting the power of brand marketing and advertising into the hands of consumers will prove to be a silly fad. The key to marketing is understanding what the consumer wants and the types of messages they respond to...Dimwitted home-made commercials or tag lines have a short shelf life..they might seem cute to the 30-something advertising execs...but like you said..is that what's really selling the merchandise...Proving once again that advertising industry keeps chasing its tail, and their clients are getting stuck up the tush with approaches that cost alot