I’ve talked before about the new ways marketers are trying to engage with consumers. This ranges from QR codes to augmented reality and relies on using the one device we always have with us – the smartphone. Being able to pinpoint exactly where someone is, for example the specific aisle of a shop, means they can serve up relevant marketing material that could turn a browser into a buyer. It is no wonder that the likes of Apple and Google are investing in technology that can help make indoor mapping more granular and detailed.
The latest technology to be touted to drive engagement is the beacon. Essentially a small, low cost, Bluetooth-enabled box that can be quickly fitted inside a building, it enables companies to send messages to suitably equipped smartphones in the near vicinity. As beacon technology is built into the latest Apple products, there are already over 200 million iOS devices out there that can act as both receivers and transmitters.
The possibilities are getting marketers, particularly in the US, extremely excited. Companies can automatically send relevant offers if you are in particular areas of a shop, such as in front of their products (or, if you’re being sneaky, in front of your rivals’ products). Airports or train stations could send automatic updates on delays or gate/platforms changes. Beacons can be used to measure dwell time in specific areas and provide offers of help. William Hill is planning to use beacons to send in-app betting messages at the forthcoming Cheltenham Festival, while outdoor advertising companies are looking at how it can drive engagement with adverts. Mobile phone networks EE, O2 and Vodafone have invested to create a joint venture – Weve, to target the space, with Eat trialling their technology. The reason for the interest is that essentially beacons promise the same digital tracking possibilities as online, but in the physical world.
However there are a still a couple of elephants in the room when it comes to mass market adoption. Consumers need to switch on Bluetooth, download an app, enable location services for the app and opt-in to receive notifications. So, even though iPhones now come with Bluetooth on as standard you still need to jump through a lot of hoops to be beacon ready.
And then there’s privacy. Perhaps you don’t want marketers to know whereabouts in the shop you were loitering or what you are buying at a detailed level. As the success of social media and loyalty cards have shown, people are willing to give up some of their privacy in return for a better experience and targeted offers, but none of these are as instant and real-world as beacons zapping a message straight onto your screen in real-time. At the moment all the advantages seem to be skewed towards retailers, with very little concrete benefit for consumers that will make them want to go through the rigmarole of making their phones ‘beaconable’.
At a time when consumers are just about getting their heads round paying for things by swiping cards rather than laboriously typing their PIN, I think beacons have a big job ahead to accelerate consumer adoption. The whole process needs to be made seamless and simple, with a focus on the benefits, rather than looking like another way to invade privacy and sell you more stuff. Only then will beacons deliver the insight that marketers and businesses are looking for.
Probably because it is a difficult discipline to predict, we marketers love the idea of systems that are proven to deliver results. Whether it is putting the call to action in a certain font, including a free pen with a mailing or emailing at a specific time of the day, anything that can help convince consumers is considered fair game.
So it is no surprise that marketers, and particularly advertisers, have long looked at psychology to help predict what will work and what won’t. I’ve previously talked about Mark Earls and the theory that, basically, we all want to belong to the herd, an ingrained, unthinking, attitude that makes us enormously susceptible to peer pressure.
Much of herd theory is related to the work of Daniel Kahneman, a psychologist who was awarded a Nobel Prize in 2002. His work (including the seminal Thinking, Fast and Slow), shows that the human mind is comprised of two systems. The first (system one) is intuitive, making decisions automatically, while system two rationalises the ideas of system one and sometimes overrules it. Essentially, what this means is that we think far less about decisions than we believe we do, and are much less rational than people expect. As Kahneman put it, “We are to thinking as cats are to swimming. We can do it if we have to, but we don’t particularly like it.”
Theories such as these are a godsend to marketers. If you can convince system one to like/buy something then chances are it’ll slip past the lazy watchdog that is system two without anyone noticing. Potentially scary if you are a consumer (or a citizen during an election campaign) but perfect for ad agencies.
Hence, as a recent story in The Economist points out, the phenomenal success of Cadbury’s Dairy Milk Gorilla advert, which delivered an ROI three times the industry average. In reality the advert had nothing to do with chocolate at all, but led with emotion (rather than information) and brand (rather than product benefits). Ad men love Kahneman’s theories because:
(a) They get the chance to do fun, extravagant ads that could win prizes rather than list the benefits of cough syrup
(b) Traditional ways of measuring ad impact don’t work with system one-led ads. So there won’t be an annoying (uncreative) market researcher telling you your ad doesn’t resonate with the audience.
As the current crop of Christmas adverts shows, reason and rationality have very much gone out the window, with a focus on brand, emotion and slowed-down songs sung by female pop stars. But I don’t think all is lost for the system two adverts – if they are clever, informative and delivered with humour they can appeal to our rational selves, and by being the opposite of the mainstream can stand out by being different. There’s always a trade-off – if all things were equal, most of us wouldn’t choose to fly Ryanair, but system two looks at the price difference on tickets and forces us onboard. So, before they get carried away, marketers and ad men shouldn’t throw system two out with the bathwater (or should that be gorilla?).
As everyone by now has been reminded by their children/mother, there’s less than a month to Christmas, cueing mass panic and a rush to Amazon.
Rather than starting shopping I thought I’d look at the marketing behind Christmas and how it has evolved over the past centuries. From the Christian Church to John Lewis brands have attempted with varying degrees of success to link to a midwinter celebration. Here’s a top four of marketing successes:
1 The Church
Before people start getting upset about the hijacking of the Baby Jesus’ birthday by commercial interests it is worth going back to pagan times. Before the Christian Christmas began there was a major celebration of the midwinter solstice, around the end of December. There’s no record of when Christ was actually born in the Bible, so essentially the church merged the existing pagan festival with Christ’s birth from around the fourth century as part of a move to increase converts and popularity.
2 The Victorians
For popularising other traditions (such as present giving around the day itself, rather than at New Year, and Christmas trees) we have to thank Queen Victoria and her consort Prince Albert, helped by the pen of Charles Dickens. The stereotypical Christmas scene of snow, robins and greenery comes directly from Victorian times, despite the current lack of ‘seasonal’ weather on the day itself. What better way to spread colonial strength than by giving the world an excuse to celebrate?
3 Coca Cola
There’s a widespread belief that Father Christmas’ red and white costume comes directly from Coca Cola’s 1930s ad campaigns. This may not be completely true – his forerunner St Nicholas dressed in red and white bishop’s vestments – but it is certainly something that the soft drinks giant cannily exploits to this day.
4 John Lewis
Over the last twenty years the competition to own the Christmas experience has led to more and more lavish advertising campaigns. Thanks to a heavy dose of hype these ads now attract press coverage on their own, with commentators discussing their relative merits, and now monitoring the social media buzz. Undoubted winner of the past few festive seasons has been John Lewis, which has knocked Marks & Spencer off its perch as the must see Christmas advert. This year it has spent a reported £7m on its animated Hare and Bear campaign, which generated over 14,500 tweets in its first few hours of release.
So, why is it important? Firstly, Christmas has come to dominate the retail landscape, with many chains doing the majority of their business in the months around 25 December. Secondly, spending is still cautious (despite what official figures say about the UK moving out of recession), so competition for every pound spent is fierce. If you can tap into the Christmas spirit not only will you generate seasonal goodwill, but you will also bring in revenue from customers who will remain loyal over the whole year.
This means that while it is easy to sneer at the over-excitement about TV ad campaigns, they are only the successors to previous attempts by brands to ‘own’ Christmas and therefore win over their audiences – whether to sell soft drinks, Victorian values or even Christianity itself. As the investment shows Christmas is far too important to be left to Father Christmas. Myself, I’ll stick to Scrooge………
Jobs wax and wane in popularity and, while quite a lot of this is down to salaries or how interesting they are, their public image also has a big input. For example, mention you’re an accountant to someone and a mental picture of a grey man/woman in a grey suit pops immediately into many people’s minds.
So, taking this to its logical conclusion, which profession has the worst public image in the UK – essentially who is most loathed by the country as a whole? I’m taking out politicians as that’s too easy a target, but looking at what’s left, they seem to fall into two groups. There are those professions that are belittled for not doing their job properly, where the Daily Mail (and politicians) use the failings of a few to tar a whole group with the same brush. I’m thinking of social workers, doctors, nurses and teachers, where, often for political reasons, they are paraded as uncaring or uncommitted when nothing could be further from the truth.
The second group, which more people can agree on, is those that are accused of fleecing the Great British Public. So bankers, overpaid businessmen/women, footballers, bureaucrats (especially of the ‘meddling Brussels’ variety) and highly paid lawyers fit into this category. What’s interesting is that none of these people make physical things – vilified businesspeople tend to be fat cats presiding over service industries/shutting down manufacturing plants while increasing their pensions rather than the likes of James Dyson.
After the financial meltdown, I’d say that bankers topped the polls of the most loathed. Not only had they brought the world to the edge of financial ruin but weren’t contrite in any way. They still seemed to be rolling in enormous bonuses, while the rest of us were scraping by without pay rises in Austerity Britain.
But the last couple of weeks has seen a new target overtake even bankers – management at utilities companies. The combination of enormous, above inflation, rises in gas and electricity bills coupled with dire warnings about potential future power cuts have made them public enemy number one. Never a group to look a gift horse in the mouth, politicians have levelled their guns on the sector. From Ed Milliband threatening a price freeze to (of all people) John Major calling for a windfall tax on utility profits, it is open season on the industry. With a growing percentage of household incomes spent on utility costs, it isn’t surprising they are a target – even though the companies claim that a large chunk of bills goes either to the government in terms of green levies or is swallowed up by global price rises in the cost of oil, gas and coal.
But utilities aren’t helping themselves. British Gas decided to run a Twitter Q&A session on the day of its recent price rises – unsurprisingly it got more abuse than intelligent feedback. And Scottish Power has been fined £8.5m for misleading customers between 2009 and 2011. No wonder the whole industry has been summoned to appear before MPs shortly to explain themselves.
So, putting my PR hat back on, what can utility companies to improve their public image? They can’t reverse the price rises, but need to show that they genuinely care. That means no pay rises for senior management, closer work with charities that help those who can’t pay their bills and a commitment to providing better service to the rest of us. And this needs to be a long term move – not a quick PR stunt that ends after a couple of months. Only then will they be able to step away from the public eye and let others (probably bankers) take over the mantle of most loathed profession – at least until the 2015 election….