Archive | Uncategorized RSS feed for this section

How social media sold OMGPOP to Zynga

17 May

Image

Until late March, OMGPOP was a little known game developer limping along and was running desperately low on money. This was until it created Draw Something. The game became an overnight sensation, catapulting the company into the mainstream and leading to its $180 million purchase by Zynga. The game’s addictive fun got people hooked but it was social media that generated mass awareness and spread the product virally.

OMGPOP hadn’t advertised or undertaken traditional PR but it became hugely successful within a matter of weeks. People shared their sketches, talked about the game and challenged their friends to play through their online social networks. The game quickly gained popularity as celebrities Tweeting about the game – such as Stephen Fry and Jimmy Fallon – created a huge amount of additional buzz. The rise of OMGPOP perfectly demonstrates the evolution of brand communication. The ability of social media to spread publicity and corporate messages means it’s now arguably more powerful now than traditional media.

Social media has changed the way that products are marketed and brands are built. Previously companies had to funnel their message through the media. This either involved brands earning placement in news or feature articles or paying for the privilege to place an advert. While these more traditional methods are still important and are an effective way for brands to reach their audiences as part of an integrated comms approach, social media offers a bigger opportunity to reach more people and create more buzz. The Guardian.co.uk, as an example, has daily unique visits of just over four million (March 2012) while Facebook had 483 million daily active users on average in December 2011 and 1.36 million visited Pintrest per day in March. Social media also enables brands to create campaigns that are highly targeted and reach the right audience. This shows the scale of social media and the opportunity brands have to reach a large audience but also the right one.

Despite there being a potential huge audience in the hundreds of millions, brands won’t get noticed if they don’t capture people’s attention. So what underpins any social media strategy is content that forces people to read, watch or listen and then share it round their network. This is why Draw Something exploded in popularity. The sketches that people drew and the game itself were the content that captured people’s attention and made them share around their social media sites. So while social is the platform, it’s great content that engages people and creates the buzz.

Nike, digital and its relationship with customers

12 May

Who does digital and who does it well?

There are many companies proclaiming they do digital. Only some have actually done intelligent things in digital. Then there’s even fewer that are actually doing intelligent things on a regular basis. While only the very few have incorporated it into the wider business and its becoming part of who the company is. However, of all the companies who actually do digital, there’s perhaps none better than Nike.

Nike has embraced digital communications and realise its value of creating, building and enhancing relationships with its customers. Whether it’s NikePlus, mobile apps or social media content that begs to be watched and shared (as per the below video which was part of the FuelBand campaign), you have to appreciate the brilliance of Nike’s digital strategy.

Nike used to rely on the mass media to convince customers to buy its products. However, Nike now uses digital to create a more lasting and intelligent edge to its marketing and brand building. As Stefan Orlander, VP Digital Sport, Nike, said at the launch of his co-authored book Velocity: “Once you have established a direct relationship with a consumer, you don’t need to advertise to them.” Therefore Nike has used its digital services in order to latch onto customers in order to develop a deeper and more meaningful relationship. And once this relationship has been created and nurtured, the customer will be more inclined to buy Nike and also advocate on behalf of the brand.

The below video (via the link) of Stefan speaking at the WIRED Business Conference is definitely worth a watch. In it he discusses the thinking behind some of Nike’s digital initiatives including the FuelBand, NikePlus and sharing data with its customers.

Nike on digital at WIRED Business Conference

Brand exclusivity perfected by German techno

29 Mar

Image

The abandoned power station situated on the former border of West and East Berlin can only be described as an institution. People queue for hours to get in even on a sub-zero morning in March. We joined the back of the line, fully aware of the daunting prospect that lay ahead. The base rang louder as we slowly snaked through the queue caged in by a metal cattle gate. We were eventually greeted by a troll of a man, half his face coloured with tattoos and studded with piercings. Not even glancing at us, he extended his arm towards the exit and growled ‘nein’. It was a swift rejection after a lengthy wait.

We were not alone in our rejection. There is no apparent reason why we and around half the people who try are turned away from Berghain. The club is not a place you wander across by accident. The people slowly flowing in the queue are there because they’ve researched Berlin’s nightlife or they’ve heard others preach about the club. People are fully aware about the challenge of getting in and the potential for a set back to the night but still take the risk because of its reputation. The story of the strict and apparent random door policy has added to Berghain’s prestige and brand. It’s simple really – if you know something has an air of exclusivity, it makes it all the more alluring.

This is also the same for marketing. If brands can create an air of exclusivity about them, they will ultimately create demand and a higher value. One example is of course luxury brands – whether champagne, a member’s club or car – which are aimed at the few and are exclusive due to high cost. Brands like Dior, Moet and Armani have perfected their image However, it’s not just cost that can create an unreasonable desire. Limited offers, the specific targeting at a demographic and invite only will also entice and fuel a craving for people to belong. Exclusivity is perhaps the easiest part to achieve as brands can limit who they sell to. But it is a far greater challenge for brands to create the desire for people to yearn to be part of the exclusive experience.

Berghain has perfected it. Would I queue up again, in the cold, with a high chance of rejection? Of course I would, without a second thought.

Online retailers earn loyalty at a cost

2 Jan

A host of online retailers took the brave decision to stop taking Christmas orders because of a delivery backlog caused by the bad weather in December. Amazon normally guarantees delivery in time for Christmas on the 23rd, but stopped accepting Christmas orders a few days earlier. It was also joined by others including John Lewis and Argos. While Firebox and Debenhams said they could not deliver to certain areas of the county due to the weather.

Now you can see their thinking – they didn’t want thousands of angry people creating negative noise online and also ringing customer service departments on Christmas Eve and demanding to know where their presents were. Perhaps a sensible approach, but in doing this they lost out on bundles of cash, which may have been scooped up by their rivals.

Geoff Galat, Worldwide VP of Marketing at Tealeaf, posted an interesting article on Econsultancy discussing brand loyalty for online shoppers. He argues people’s loyalty towards retailers has diminished as they turn to the internet to shop. This is no doubt due to the ease in which people can browse and shop around online compared to the high street.

So retailers could have taken the short-term view that people will not be loyal anyway, so they may as well take their cash and renegade on their customer service commitments. But the majority took the long-term view and are trying to build a good relationship with their customers in order to earn their loyalty. Galat goes onto argue that if retailers get their customer service right, they’ll build a loyal customer base. And because of social media these people may become an advocate of the brand.

It was of course the correct decision by these brands to stop taking orders for Christmas. Online retailers have very few differentiators, they offer the same products, at the generally the same price, with the same delivery timescales. But what can set them apart is customer service. There would be nothing worse than disappointing thousands of people for Christmas and it would diminish all hope of building a positive relationship. By being open and honest with their customers, online retailers took a positive step to creating brand loyalty by building trust.

Hello world!

22 Sep

Welcome to WordPress.com. This is your first post. Edit or delete it and start blogging!

Follow

Get every new post delivered to your Inbox.

Join 412 other followers