Category: SolutionSet

“Concentrate on the relationships, not the technologies.” – Groundswell: Winning in a World Transformed by Social Technologies by Charlene Li and Josh Bernoff

SolutionSet works with Fortune 500 companies to design their online communities and social business sites. These sites range from 1000s to millions of pages, interactions, tasks and states. Rather than build these complex applications from scratch, SolutionSet is a preferred professional services vendor of Jive Software, the leading social business platform. We work with clients to develop and customize the platform to meet their business and user needs. Recently, SolutionSet engaged with a client on a large-scale redesign project to fix navigational and usability issues of their private community. The approach was to identify key usability issues and design user interfaces and navigation to solve them. Then, the designs were validated with remote and face to face usability testing on low and high-fidelity prototypes. This post showcases the five lessons that our team learned about user experience on Jive and communities from this iterative design process.

User and Task Analysis is a Very Necessary First Step

Typically in development work, thinking about the user comes into play during functional requirements and use cases. These are key deliverables, but they may miss the mark on a good user experience. Typically use cases and requirements focus on how a user can use the system, not how they want to use system. Interviewing users to identify their wants and needs of the business and social community will allow the user experience team to design to their key tasks that the system and community can support. For example, creating a custom Jive widget with links and functionality that support these key tasks and placing it in a priority position – like top left - will help the user complete those tasks on the community site.

Have One Home Page

Jive offers two versions of a home page: an “All Content” page that is customizable by the business and a user dashboard that a user can customize. The latter is hidden behind a tab. In usability tests and a community audit, we found that once users login to a social site, they expect one home page personalized to them. However, since this is hidden in Jive by default, they typically did not access the user-customized dashboard unless directed to do so. On this project and others, we’ve found that it is confusing for users to have multiple home pages and the choices on the All Content page were overwhelming. Upon login, there is no need for a second, generic home page. The concept of Home is a failsafe for online users – it’s an easily learnable “place” they know to always go to find “their” content or an exit if they cannot find their way through the site. It is worth considering having one home page for the user with core navigation that shows information most important to the user.

Give the User a Starting Place

Jive is incredibly robust and offers many widgets for user functionality and content. It can also be tempting for a business to fill all available space with these widgets. We have found that the more widgets on the home page, the more confusing it is for the users. The world’s most famous web page, Google.com, has one starting place for the user – a search box. Users desire this focus and will look for direction. Otherwise, we found users feel very overwhelmed and unsure of where to start. Their impressions of the page were typically, “too cluttered” and “too much going on.” It’s a design balance to ensure the page meets the business goals, shows the breadth of the site, and focuses the users on key tasks.

A Social Community is Like a Neighborhood BBQ

In a community review for this project and others, we found that users typically browsed community sites to see if they find information of value and then engage. In observing this behavior and interviewing users, the analogy to a neighborhood BBQ applies – one attends, see’s what’s going on and who’s there, and then decides to converse and stay.  It’s important for a community to be a good host and show the value of the site before demanding interaction. Community sites can do this by sending emails on topics relevant to user to incite action, curating to provide useful information, and showing valuable and related information on home and main pages. It’s the responsibility of the community business owners to find out what information is valuable immediately, but over time the community members will curate the content. Allowing users to rate content and interaction as helpful or not will ensure that the most valuable is surfaced.

Not Everyone Speaks Jive

Jive uses terminology like spaces, subspaces, places, projects, and documents. We found in the usability tests, community reviews, and interviews that users typically didn’t understand these Jive concepts. The users typically look for a subject or topic that means something to their world and the company. A link or heading called “Spaces” doesn’t mean anything. We saw users scan pages for key words that indicate they are on the right path to solving their problem or discovering a new idea. Communities need to facilitate that by showcasing links in the users’ terminology and not the platform’s.

Conclusion

The user-centered iterative design process for this client illuminated specific user behavior and validated and refuted assumption. Overall, the community design met the user needs and continues to be refined based on feedback. With this project and others, SolutionSet is dedicated to delivering excellent user experiences on the Jive platform.

IF YOU’VE GOT A GIG IN LOYALTY MARKETING, YOU MAY WANT TO SING ALONG WITH SOME OF MUSIC’S RISING STARS.

Back in March, I proposed that loyalty programs might better be thought of as “Brand Fan” programs – designed to engage your best customers to groupie level obsession with you. While points programs may still have a place with some brands to drive frequency, Brand Fan programs make me think more about a customer who sees and treats your brand like an “11” on their attention dial.

Taking a lesson from myself, I thought to look at just what’s driving fan-dom in the quintessential category of fans – the music business.

While to some it might seem a bit of an unlikely source to get insight into better marketing loyalty programs, what I found could well have you wondering if your daydreams of raving groupies of your own may be closer to reality than you might think.

The fall of yesterday’s empire

The music industry has long thrived on a well-established supply chain – from label to distributor to cash registers ringing under the din of the latest hit booming at your favorite record store. Enduring the shifts from vinyl to 8-track to cassette to CDs, this monolithic machine set the trends and secured the fate of many a star – and created an outpouring of fans (and their cash) for many years.

Then came the MP3 – music’s digital change agent.

Now stocking your music library no longer means canvassing a record store or sifting through bin after bin in hopes of finding that limited release. Now the album – or song – you just fell in love with is only a short click away, downloaded and in your playlist in moments.

According to Strategy Analytics, MP3 downloads are set to overtake CD sales by 2012. In what seems like an instant, the entire value system has been changed. Yesterday’s system for creating stars and locking in loyalists is undergoing a revolution – some might even argue crumbling entirely.

The rise of today’s fan

The shift to a digital music exchange has stripped and shifted the value and values of the music industry and music fanning in profound ways.

For one, there’s no “show” for a purchase besides new album art in your library and a digital receipt. While extremely green, this leaves a true fan a bit wanting. The ritual of band worship is much easier with an album to fondle, a sticker to put on your laptop lid or some other symbol on which to fix your dedication and garner respect from your friends. The gratification of finding and belonging to a band brand has been displaced.

At the same time, access to the market has exploded for new and innovative talent. Record labels no longer monopolize the world of music. There’s a new bounty of artists writing, recording and selling direct from their own web sites – sometimes even through virtual “live” concerts (yes, even nightclubs have lost a bit of their grip over who you’ll hear this Saturday night).

With all this displaced value and great new talent entering the music world, it’s not surprising to find creative innovation. And it’s not just in the music itself – it’s in the way fans are courted, encouraged and engaged. New musicians keen to the needs of their followers are offering special rewards, recognition and participation. Along with selling MP3s on their sites, they’re including other avenues for fanning:

• Artifacts – Many artists have online stores with limited edition artwork, shirts, books and the classic stickers – ways for fans to support more and collect the badges they want. For an example, check out Matthew Dear’s Black City:
http://www.matthewdear.com/blackcity/
• Subscriptions – Creating followers can simply mean making something to follow. Savvy musicians are offering just that – a way to follow their work as it evolves. This can be as simple as a subscription. A straight forward example is the Noir Club:
http://jimnoir.com/jimsplash/page.html
• Experiences – Musicians of today are making themselves more accessible than in the past. They are working with their fans, taking input, answering email – creating a valuable relationship. Some offer lessons, jam sessions or virtual access to the recording studio. To see more, check out artists listing at jamewave:
http://www.jamwave.com/
• Crowdsourcing – Many large corporations have discovered this tool for garnering engagement. Not surprisingly, the world of independent musicians in on board too. This time, they’re using forums and group interest to help fund their futures. Check out Kickstarter to see a very direct way artists are using this idea:
http://www.kickstarter.com/

Kickstarter has risen over $50 million for independent artists in its first 2 years – mostly through simple referral and influence. It seems there’s a lot of fan passion to be tapped out there.

Get your own groupies.

Artists and musicians – new and old – are reinventing the passion of being a fan in the digital age. They’ve discovered rich new territory to add value to the basic product – in this case, digital recordings downloaded directly.

Many retail and service companies are facing a similar challenge. Economic pressure and the sheer volume and commoditization of products and services has deflated the raw value of most brands.

For companies struggling to invigorate their brands and earn loyal fans, I think there’s no harm in being influenced by your favorite rock star. Could any of the four techniques above work for you? What of your culture can translate to icons. Zappos makes following fun – can you create a subscription or regular flow of videos. What about allowing your best customers access to key decisions? Fans need a story to tell and a badge to wear – arguably more than earning points they may never redeem. What can you offer them?

It may not be time to pull that old guitar out of the attic, but with a little riffing on new ideas and a few test gigs, groupies just may be in your future.

In the history of the world, no one was ever bored into buying anything.

In the history of the world, no consumer ever woke up wondering how they could help you sell more stuff today.

In the history of the world, no one ever went on Facebook to help anyone increase marketshare.

In the history of the world, no amount of data ever replaced the ability to interpret it.

In the history of the world, “best practices” never replaced “better thinking.”

In the history of the world, a pound of intelligence never trumped an ounce of creativity.

In the history of the world, no client ever got its money out of its agency by telling it what to do.

In the history of the world, no meeting was ever too short.

In the history of the world, no technology ever found any degree of success until it made someone’s life better.

In the history of the world, nothing great ever happened to a company that didn’t have a clear vision of its reason for being.

In the history of the world, duty never beat desire.

In the history of the world, nothing has ever changed. Everything has just gotten different.

SOCIAL NETWORKING MAKES “FRIENDING” A FASTER PATH TO ANSWERS THAN “FINDING”. IT’S TIME TO START THINKING ABOUT YOUR FEO* STRATEGY (*FRIEND ENGINE OPTIMIZATION).

Searching for the right words used to be a task predominantly associated with writing and explaining yourself for getting home late while still in high school. In today’s world, it’s one of the key skills in finding the information, services and products you need or want – it’s the secret to being a good web searcher.

But a prolific vocabulary and expert skills in crafting Boolean search strings may soon return to their more classic associations – even while search engines of today continue to catalog all we know and say down to the last tweet. And interestingly, the change agent this go around isn’t a new algorithm or a breakthrough in artificial intelligence – it’s the ancient and favored information source we’ve enjoyed for millennia. It’s socialization.

Metadata meets social smarts

The convergence of social power and search is already well underway. Google has just launched “Google +”, which integrates socialization at multiple points – most notably through “Sparks”, allowing you and your networks of friends to share and recommend sites and information to drive up relevance to individual search results.

Bing has integrated similar functionality by harnessing the “Likes” and social circles that already exist in Facebook. They claim intuitive search results based on associations with your network, quicker insight into who thinks the results are good, and a number of other integrated crowdsourced tips and insights from groups you trust.

A new player, Blekko, touts “spam-free” search, completely curated by users. They are quickly gaining credibility as a reliable, fast and easy way to get to useful results.

Leaving the “who’s gonna win this war” debate aside, it’s clear these players recognize the power of people to create greater relevance. They know what we’ve been seeing in retail research – easily 75% of shoppers today look for a review or recommendation from a friend or influencer to help them make a decision. The search engines are tapping that power as a next generation in search.

People power beats processing power

There’s already a trend in play that holds even more potential to reshape search – socialization itself.

How many of us have been pinged by our Facebook friends for a restaurant or movie recommendation? Perhaps you’re not an active Facebooker, but a growing majority of people across the globe are, and they don’t have to think much about search terms at all. Simply float a question to your network – “Hey, anyone know what might be wrong with my old 94 Yamaha? It keeps dying on me!” – and answers are volunteered. It’s fast, easy, and is proving to be reliable.

This kind of search is arguably the preference for Millennials and Gen We, who have grown up with these tools and have friend networks that average at or above 500. They are growing up with social intelligence as a norm and readily use this form of “Life-Lining” for information.

Time to get socializing

Search engine marketing has earned a well deserved place as a critical component of virtually any marketing plan. In today’s world, search usually plays an essential part in a customer finding you.

But that role is bound for redefinition – perhaps quickly. Engaging socially – listening, providing relevance and connecting to networks will be market making activities (if they’re not already). It’s time to ask yourself: What’s your FEO (Friend Engine Optimization) strategy?

Catalogs continue to be an important stimulus for sales—be it through phone orders, driving traffic to retail stores, or motivating buyers to take to the web to complete their purchase. Research has shown that traditional multi-channel merchants derive 70%-80% of sales from catalog mailings. The catalog, however, must not be the only vehicle used to inspire prospects to pick up the phone or pay a visit to our web sites as it has in the past. Online channels should also be deployed for prospects in the very same way we’ve promoted the co-targeting of our buyers.

We spend a lot of time ensuring we reach the right target audience in our mailing efforts using list specific selections, RFMP selections, demographic selections, zip selects, etc. Now is the time to expand our reach from the prospect’s mailbox to include their inbox. Increased exposure to your brand in on-line and off-line channels will result in incremental sales. So, why limit your prospecting only to off-line vehicles?

Some have historically found prospecting via email to be costly, problematic in managing ISP relationships, or just difficult to reach the desired target audience. Part of the difficulty in managing the process has been the struggle of tying relevance to the email event. What would be more relevant, however, than sending an email to a prospect who is due to receive their catalog the next day, or send an email to the prospect to reinforce the theme or offer of the catalog received the day prior?

So, how do you “create relevance”? That is, how do you obtain the email address and permissions to email these prospect records. Simple. Go to a resource of opt-in email addresses and append them to the prospect names from the catalog mail file. Negotiate a rate that’s about a penny or two per append, and now you’ve got a universe of relevant records to be emailed.

Use a reputable company that will help you send the emails, manage the process by applying opt-out suppressions easily and seamlessly, optimize contact cadence by establishing rules governing the number and frequency of emails prospects can/should receive, and helps you gain true insight into the results generated from multi-channel marketing efforts.

In the end, use catalog and email prospecting efforts in conjunction with each other to showcase and tell the story of your brand. Your stories may encompass why to buy along with what to buy. Use these multi-touch campaigns to maximum your marketing effectiveness and ROI.

Before your meeting starts, two forty-something managers discuss the latest episode of Men of a Certain Age, which the slightly older woman across the table missed from watching Glee with her teenage twins. The mid-level associate and her girlfriends are hooked on America’s Next Top Model, though last night they skipped it because of working late. The jeans and sneakers designer watches TV only on his computer. But with several freelance clients, a few original apps in development, and the search for venture capital for an idea he’s considering with a college friend, he doesn’t have much time for nighttime TV. Excited with the newness of the workplace, the only bright-eyed person eagerly awaiting your presentation is the intern: she’s so down with it.

Many managers consider this melting pot of generations a challenge. Smart business people see opportunity and, not so surprisingly, increased productivity.

From a total U.S. population of 307 million, about a half (154 million) is employed. At the younger (and more optimistic) end we find Millennials, or Gen Y, between 15 and 32 years of age, just arriving on the scene. Gen Xers, aged 33 to 45, are moving up. Boomers, aged 46 to 64, move beyond and are less optimistic. At the bookends we have Gen We, aged 0 to 14, and Matures, 65+. Here is a breakdown:

• Matures constitute 5% of the workforce (or 7MM). Their total population number is 40MM, which means 33MM of matures do not work.
• Boomers constitute 38% of the workforce (or 59MM). Total population number is 75MM. 16MM of boomers do not work.
• Gen Xers constitute 32% of the workforce (or 50MM). Total population number is 54MM. Only 4MM Gen Xers do not work.
• Millennials constitute 25% of the workforce (or 38.5MM). Total population number is 77MM, which means half of them do not work.
• And the population of Gen We’s totals 62MM.

In other words, a few more Matures work past retirement age than just U.S. Senators and Supreme Court judges. Boomers are, for the most part, not riding into the early retirement sunset of financial planning ads, but staying put and getting in the way of Gen Xers. Gen Xers have no choice but to go to work every day to pay growing bills. Gen Xers, and increasingly more Boomers, also provide for the half of the Millennials not holding a job yet, and for Gen We’s, which would be illegal to put to work, although some might be tempted. And the working half of Millennials has seen more layoffs in their short work lives than the rest of the generations combined.

Across generations, percentages of feeling awful or excellent about their jobs are low. Most are in the middle, feeling good or fair, with expectations of continuing to feel the same way in the next 12 months. Still, 50% of employees have considered leaving their job, and 21% have applied for another one in the past six months. It’s a restless crowd.

While half of Millennials don’t work yet, a majority of those who do (79%) are entrepreneurs at heart, either self-employed (27%), starting a new business because of being unemployed (21%), or moonlighting after regular work hours. This generation doesn’t lust after a private office. Cubes are fine but, basically, they can (and do) work anywhere. In meetings, if you see them slumped in their chairs, texting, or paying more attention to their laptops than the presenter, it’s because 71% think that meetings are a waste of time. Interestingly, 51% of Boomers agree.

Millennials see everyone as equal partners, people to collaborate with. Managers should pay attention when someone calls them “dude,” then shares ideas or asks for opinions, because Millennials seek proof that their contributions matter. They’d like a seat at the table, check-ins, and acknowledgment. They appreciate a good culture, are casual but not lazy, prefer a flexible structure, and put satisfaction over salary.

They also can’t (don’t seem to be wired to) hold onto a job. Six in ten have already switched careers at least once, with the same number feeling certain they won’t remain at the current employer forever. In comparison, 62% of Gen Xers think it’s very likely they’ll never leave, and 82% of Boomers expect to remain. With this much clogging of the way up, is it any wonder, then, that Millennials prefer to start their own gig?

Gen Xers, caught in the middle, are the saddest of the bunch. With mortgages to pay, Gen We’s to raise, and young Millennials in college, it seems that every Gen Xer works because he (and she) has to—this is necessity-induced equality at its finest. With so many obligations, flexibility is not a choice, but a need. Work must pay off personally and monetarily, though a great majority, if they could, would start over.

Gen Xers work hard, work to live, and don’t expect rewards. They are results-oriented and self-directed, creatively identify workarounds and, eventually, decide that enough is enough and pull a Slater—remember the flight attendant who escaped the JetBlue airliner down a slide onto the airport tarmac after a profanity-laced tirade? He’s now a hero of sorts, though the count of those seriously considering imitating him has yet to be computed.

In Boomer-speak, Retirement is passé, ReHirement the new black. Raised and groomed on the carrot and stick pathway to rewards, they’ve come to believe that a career path should be as flexible as they want it to be: less Walmart greeter jobs; more legacy opportunities, more chances to make a difference with experience, knowledge and meaningful mentoring. With downsized expectations regarding income, and part time aspirations regarding job commitment, this is the generation that may actually experience work/life balance. Except, that is, for those who will reach the far side of 60 before their children get to college.

Boomers fear loss of a job as much as they dread loss of health. They run, bike or climb mountains to maintain youthful vitality, but still two thirds believe that laptops and meeting efficiency don’t go together, and that cells contribute to a decline of etiquette. Yet they are more likely to friend you on Facebook than any other generation. At work, a private office is preferable to the Gen Xers cube, or the Millennials break room, Starbucks, or kitchen table.

So, put them in a blender, shake them all around, and what do we get: A potent concoction of people of all ages stretching the limits of flexibility. Millennials expect it, Gen Xers need it, and Boomers demand it. Casual is the new suit. Results the only measure of success. Mobility and flexibility equal productivity. And technology is the great connector. We shall call this Generation Flex.

Going back to your meeting, as you present, you notice that the twenty-something new hire barely looks up from his computer. He might be writing to the production department or forwarding his twitsume. The next woman replies to all texts, which might be from the client or the baby sitter. Only the mature guy takes notes on a notepad, but he could be drafting his will, planning a trip to Kenya, or writing himself a reminder to pick up his ten-year-old on the way home.

No matter how distracted they appear, you know that the work will get done, and faster than ever. And that more desire, thought and enthusiasm will go into growing your business, creating good systems, improving technology and collaborating for maximum efficiency than at any other time in history.

In multi-generational-speak: it’s sick, awesome, great. Dude.

All data gleaned from “Generations At Work,” a webinar by Iconoculture, May 24, 2011.

Getting customers to come back is one thing; making them loyal is another.

Check out this insightful article about “uncommon customer loyalty” published by Retail Online Integration.

The goal of the “Summer Sale” initiatives by the USPS has been, since inception, to drive additional advertising mail volume (or at least halt the steady decline in advertising mail brought about by postal rate increases) through pricing incentives. The question is: How effective have these efforts been in achieving this goal?

This year’s incentive is a 3% reduction of postage costs for all mailers who apply a 2D (QR) bar code to all pieces in a mailing. The big, additional gain to the mailer, as we see it, is the opportunity for customers and prospects to scan this bar code with their mobile smartphone, which will then take them to a mobile commerce site (or other destination preferred by the mailer) enabling an additional non-invasive, zero-cost , multi-channel touch to the mailers marketing programs.

Based on responses to a recent poll we conducted, only 46% of responding catalog mailers will take advantage of this discount, and just 18% are taking advantage of the decreased rates to increase circulation.

We didn’t ask “why” to the low participation rate, but some responders volunteered reasons, and we have some, too. For one, this new summer sale was just approved in April leaving some mailers already “locked in” for print and name quantities for this summer. (Shifting mail into the discounted rate time period is not allowed by Summer Sale rules.) Secondly, for some catalogers, the cover “real estate” for QR codes on this summer’s books presents a timing challenge for catalog creative work. Another reason is that setting up an appropriate destination site was going to be problematic for those just getting into mobile commerce, given the compressed timeline for execution. Lastly, all pieces in a mailing need to carry the code to get the discount, requiring all co-mail pool participants use the 2D code for any to get the discount.

Will this Summer Sale produce results that will lead to the USPS goal of increasing advertising mail or at least reducing its volume decline? Maybe… maybe not… But this latest USPS effort, for those who participated, may tell us much about the benefit of providing customers and prospects an opportunity to try mobile commerce in an easy to execute manner, right from their catalog. Let me know your thoughts on this topic…and stay tuned for the results at summer’s end…

SMALL BUSINESS OWNERS KNOW HOW TO INNOVATE TO SURVIVE – SHOULD WE BE SELLING TO THEM OR SUPPORTING THEM?

In a clever twist that pumps up the suspense of the police drama genre, the CBS series “Criminal Minds”, stands the typical storyline on its head by asking not “who done it”, but “who’ll do it” or “what will they do next”. That show’s team of profilers sifts the details, stares at walls of seemingly disparate facts, and eventually see a link or a pattern that unlocks the key to solve the case and catch the suspect seconds before their next crime.

While, as planners, our suspense comes more from a ticking presentation bomb than an eminent slaying in a warehouse, our task is much the same. And those epiphany moments – they’re the gems that make a sweaty brow worth the effort.

One recent “aha” came on our ongoing case to understand the small business decision maker…

On the Case

We’ve been on this case for some time, and have lots of good insight and evidence. We’ve been reaching many of our targets, but want to better understand and better market to more.

But the small business decision maker is a wily character:

• Small businesses are defined very differently depending on industry – for example, annual revenue for finance versus number of employees for retail or services.
• Industry vertical can be a helpful guide in understanding unique business consumer needs, but needs within vertical are vast and unique (for example, “clothing retailer” wouldn’t really help you know whether it’s Diesel, REI, or a hand-made fashions boutique).
• The “decision-maker” is often two or more people (CEO, CFO, Department Head, Operations Jack-of-all-trades)
• There’s usually a gatekeeper watching the phone, mailbox, and possibly even the email box of the pooh-bah – filtering what reaches decision makers.

Thanks to a world that seems to be a steady mix of disruptive change of increasing magnitude, small business decision makers are also under intense pressure to adapt and survive as never before:

• Their decisions are hyper-critical to their business – the consequences are personal, professional and shared all at once. Being well informed and quick are essential to their survival.
• They have a financial budget and a time budget for everything – and they’re constantly re-budgeting as the dynamics around them change
• While thrift is important, flexibility is mission critical
• Constant change has increased demand on their decision making skills – if they’ve made it for more than a year, they’re likely very good at improvising

So what’s the AHA?

It’s a bit of that last bullet plus some direct insight from a recent focus group. In that group, one participant noted: “If I happen to be looking for [a widget] and see a subject line about it, I’ll open the email. Otherwise, I’m putting the solution together myself”.

Leaving the email open rate debate aside for a moment, what emerged for us was clarity around how small business decision makers approach problems to find solutions. They don’t wait for them. They don’t warm to them. They draw quickly on resources they have. They clock the time this decision is taking. They look for flexibility over savings. They attack, adapt and resolve to get a solution fast. They’re smart, innovative survivors.

In short, they’re scrappy.

So what are we doing with this scrappy insight?

The small business decision maker described here is more of an archetypal role than any one individual. We are eagerly working on many plot lines that are drawing out different detailed characteristics of who these people are for different businesses and situation.

One thing this broader insight is helping us achieve is a shift from seller to supporter. In the case of larger enterprises selling to the small business, it can often lead to more information sharing, provisioning for decisions with tools or reports and diagnosing the relative flexibility of offerings. For smaller B2B companies, a clear value proposition can be the starting point, then a committed initiative to create and build networks and earn case studies and strategic partnerships.

This may be a fundamental shift in what you’re currently doing, or could be additive. Your brand, your product and your means to genuinely become a meaningful partner to the “scrappy” innovator will determine what this insight may mean for you.

Enough reflecting for now. Back to the basement with the Plexiglas note boards, photo montages and machine-gun banter. We’ve got more cases to solve.

Are consumers, by nature, loyal?  A look at long-term customer retention rates could allow you to easily conclude that consumers, by nature, are not loyal.  If they were, would we need all of the points and reward programs developed to stem the tide of customer attrition?  It is fair to conclude, therefore, that the innately loyal consumer either never existed or is, in fact, extinct.

But the state of customer loyalty is not in as dire a situation as you might think.  Recent research confirms that, as a marketer, you can set the stage for loyal purchasing behavior. In a study recently published in the Journal of Consumer Psychology, (Inherently loyal or easily bored?: Nonconscious activation of consistency versus variety-seeking behavior pgs 38-48, January 2011, Ayelet Fishbach, Rebecca K. Ratner, Ying Zhang) it was found that by reinforcing loyalty concepts, study participants exhibited more consistent (i.e. loyal) behaviors.  In one interesting experiment, a clipboard was handed to study participants to give them a hard surface upon which to complete a written survey.  Participants who received a clipboard with the words “The Loyal Cat” written on it exhibited more consistent behavior than those who received a clipboard with “Bored! Bored! Bored!” written on the clipboard.  In making choices, consumers adopt either a consistency or variety seeking consumption construal – which can be influenced by nonconscious clues (such as words written on a clipboard).

In presenting consumers with positive reinforcement regarding repetitious (i.e. loyal) behavior, it turns out they tend toward just that…loyal behavior.  But the contrary is also true: make consumers feel great about variety seeking and they’ll be more likely to ditch the old and try something new.

More than anything, the study confirms that our marketing efforts play an important role in setting the stage for more loyal customer behavior.   With that in mind, here are a few practical recommendations:

1. Please do not mail a “Thank you for being a loyal customer” campaign to your entire file.  I received one of these messages recently from a company from which I hadn’t purchased in years. This clearly showed that either: a) they have no idea who I am; or b) they’re so desperate for sales they’re willing to try just about anything.
2. Do mail “Thank you for being a loyal customer” campaigns to your loyal customers.  The response to this type of campaign, when mailed to the top few % of your customer base, will surprise you.
3. Use copy wisely to prime the loyalty pump.  Phrases such as “the quality and service you’ve learned to expect” or “the same great service” can be used to create a positive mindset toward repetitive purchasing.
4. View every customer touch point through the eyes of an existing customer and leverage your entire communication platform to reinforce why being a loyal, repeat customer of your company is better than the unknown and unfamiliar experience offered by your competitors.
5. In your acquisition efforts, employ the reverse: reinforce the positive aspects of variety seeking behavior with your prospect audience.

As long as there is choice, the loyalty of a consumer will be determined by a day-to-day decision making process. Our challenge as marketers is to make consistency the better choice – each and every day.