Tis The Season…To Email Your Customers

Alright, I can’t keep my mouth shut any more.  They’ve screwed up too many times to not say anything.  And of course, I’m talking about Netflix!

I know everyone seems to be writing about the Netflix “debacle” these days, but it has gone too far and I feel the need to speak my mind too. Unless you are anti-internet and anti-news (or you live under a rock), you have most likely seen Netflix making headlines; each message more negative than the previous.

Within 90 days, Netflix has taken customers on more twists and turns than a day at Cedar Point Amusement Park!

Here’s a quick recap of the roller coaster ride that has been Netflix’s news releases over the past few months:

First, the company announced on July 12, 2011 that it was separating DVDs by mail and unlimited streaming into separate plans, which could lead up to a 60% price increase for customers who wanted both. This resulted in the inevitable: a plummeting stock price and a loss of over 1 million customers.

Then, to rub salt in the wounds of millions, Reed Hastings, the co-founder and CEO of Netflix, personally announced that the DVD mail service was going to be renamed Qwikster and that customers would access a completely different website for DVDs than the existing Netflix streaming site.  Even worse, subscribers of both Netflix and Qwikster would be billed separately!

Hastings’ meandering message started by saying that he “messed up” and “owed everyone and explanation,” but essentially still failed to explain why it was necessary to introduce the new pricing strategy and left customers with more questions than they already had.

And now they’re at it again, announcing on October 10, 2011 that DVDs will be staying at Netflix.com and there will be no Qwikster.  They are basically saying that it was all just a bad dream and to ignore everything they said before (and more importantly, let’s never mention the whole Qwikster Twitter name fiasco again).

Look, I get it.

Netflix is growing company that needs to invest in their digital infrastructure in order to be able to offer better quality streaming and make more movies and shows available to customers. And in order to do that, the company needs to generate more revenue.  It’s simple business principles really.  But they have done a pretty crappy job communicating that to customers in my opinion.

This experience, however, has not been all negative. Netflix and other companies, B2B and B2C alike, can take some lessons from the Netflix debacle:

• Communication is key

Hastings introduced the price changes through press releases rather than addressing existing customers first. Customer loyalty has always been and will always be at the center of a good corporation, and it is as important as ever to provide existing customers with the service and respect they expect to receive.

• Planning and strategy is vital to successfully implementing change

Let’s face it, not many people embrace change; especially when there is a price increase attached to it. By planning in advance, establishing a more gradual timeline and implementing this change in a more strategic way that benefits both the company and the customers, this change could have been successfully implemented.

• Understand your customers

This point cannot be stressed enough. By doing some simple research before undergoing this initiative, Netflix could have seen that customers wouldn’t take to this plan and could have avoiding this debacle altogether. Always understand your customer and try to figure out exactly what they are looking for!

Let’s not forget that less than a year ago, Netflix was seen as an innovative company who was single-handedly changing the movie watching industry altogether, and was even branded as the “industry hulk” by the WallStreet Journal in December 2010.

A lot has changed since then, but its reputation is not beyond repair. The real question now is whether Netflix can regain some of its lost customers and continue to create loyalty to the Netflix brand. If not, there will be plenty of competitors looking to swoop in.

Do you think Netflix has gotten all the bad news releases out of its system? Are you a Netflix customer? If so, are you sticking with Netflix, even after they continue to throw you curve balls?

In my last blog post, I discussed the recent emergence of Quick Response codes (or QR codes) and how these new digital ciphers have the ability to make traditional marketing pieces, such as print ads and brochures, more relevant by bridging the gap with online mediums.  QR codes provide users with a way to respond quickly to an ad or piece of information (hence the term “quick response code”).

But after having just recently come into prominence, have QR codes already jumped the shark?  That is, are they becoming counter-intuitive?  After re-reading my last post, it struck me as to how silly it seemed to place a QR code on a webpage.  I mean, is reaching into your pocket, grabbing your mobile device, snapping a picture of the QR code on your screen and waiting for the page to load on your mobile device really faster than just clicking a simple button or link?

Take this QR code below for example.  This bad boy links directly to my previous post, both by scanning it or clicking it.  Which method would you use?

I’ve read that advertisers are going to start placing QR codes on TV shows and commercials.  It’s an interesting concept that might work in bridging the gap between TV and online, but will viewers really scan the codes?  Or will they ignore them and get frustrated that it is in the way of their show?

What about placing QR codes at the end of movies or movie trailers?  It’s not so far-fetched.  But will movie-goers really scan the QR code at the end of a killer trailer to immediately check out more information on that upcoming flick?  I thought mobile phones supposed to be turned off at this point during the movies?

Or how about this?

Guys, try and stay with me here. Apparently, Britain’s female beach volleyball champions are going to be flaunting a stylish new bikini bottom that includes QR codes to a gambling site.  This may seem like a good fit for a gambling company most likely targeting the male population, but honestly, how are people supposed to snap a picture of a volleyball player’s fanny while she’s constantly diving around the court?  Someone wasn’t thinking that one through.

In my opinion, marketers are going a bit QR code crazy!  Don’t get me wrong; QR codes can be very useful tools for both B2B and B2C marketers, and at times they can generate more excitement and anticipation than deciphering a Dan Brown novel, but maybe we as marketers are taking it a bit too far.

Do you think QR codes are becoming irrelevant in these new mediums? Do you have a QR reader on your smartphone? How can I explain to my wife that the photo above is merely research?

Remember the good old days of advertising, when what we now call “traditional forms of media” (print ads, brochures, etc.) were the only forums for communicating marketing messages to consumers, B2B and B2C alike? What ever happened to those days?

One word – technology.

Traditional mediums are still very relevant today as they allow marketers to engage their audiences in creative way. However, they are limited in their ability to provide consumers with the opportunity to act soon enough. Unfortunately, the time between when a customer views an ad and when he or she decides to act on it causes a high percent of disengagement, leading to less actionable responses.

Scan or click the QR code to see some really cool QR code designs!

A majority of this problem was addressed when the internet came along and with it, banner ads and text ads (here’s looking at you, Google Adwords).  Online messaging allows users to click through to the exact location where they can act immediately on an ad’s message. And because there are endless amounts of data and analytics available to marketers, the messages can be extremely targeted to specific segments, and even individuals. People are self-selecting where they go to get their information, and now marketers can too.

So where does that leave some of the more traditional B2B marketing methods of print ads, brochures, even trade show booths?  Well, with the somewhat recent rise of mobile technology, a new way of bridging the gap between print and online mediums has emerged in the form of Quick Response codes (or QR codes).

QR codes can be incorporated into any kind of advertising medium and address two very important flaws that are visible in the more traditional approaches.  First, they have the ability to place a consumer directly on a site for them to take a final action without making them sift through other clutter first.

Second, and more importantly, QR codes allow consumers the chance to take action at the exact moment that your message has piqued their interest.  Using mobile devices, consumers can snap a picture of a QR code and be allowed to take action before talking themselves out of it, whether that action is purchasing a product or service, or providing information.

This is a vital part of the marketing process that is non-existent with more traditional approaches.

Has your firm started using QR codes in your marketing communications? Do you think it is relevant to your business? Where’s the most interesting place you’ve seen a QR code?

Measuring Your Educational Impact

As a full-service B2B marketing agency, our team at Canyon Communications focuses on identifying our clients’ specific marketing challenges, then helping rise to those challenges through proven, multi-touch end-to-end B2B marketing communications strategies.

We’ve enjoyed great success with many of our clients by utilizing a variety of specific tools, and one of my favorite client-service success stories involves the introduction of Brainshark as an online training, education and presentation tool for our client Horizon Distributors.

Horizon is a professional landscape and irrigation distribution company within the green industry that is committed to providing its customers with innovative and professional service and quality products in four product categories: irrigation, landscape, equipment and specialty products.

Horizon places a large focus on providing business-building resources for its professional landscape and irrigation customers to help them succeed in their business ventures. That’s why they created the BizPro eSources training portal, an online resource that is filled with tools, tips, training videos and much more to help green industry professionals grow their businesses and increase their profits. The BizPro eSources website includes access to these resources, including the ability to watch training presentations on irrigation, landscape, equipment or specialty product topics.

Working with Horizon, we discovered that we needed a way to provide Horizon’s customers with valuable, educational content that was easily accessible, visually entertaining, creative, and most importantly, trackable. After reviewing all of the options, we turned to our previous experience implementing Brainshark presentations with other clients. Brainshark ticked all the boxes to meet our goals, making the choice to implement the software a no-brainer.

The easy-to-use cloud format enables us to include image links within e-mails, which provides customers with a more enticing reason to click through to the portal.  Brainshark also allows us to embed the presentations directly on the BizPro eSources website, giving Horizon’s customers detailed educational and training materials without having to leave the portal.

The video format of the training presentations proved to be a great way to engage our audience and provide them with valuable information and tips.  And the ability to track not just who viewed the presentations, but also when and for how long has proven to be an incredibly useful tool to show our client how the portal is performing.  It also provides the actionable data to analyze used to refine and optimize performance, driving greater value for both the audience and our client.

Integrating Brainshark into the BizPro eSources training portal has produced amazing results for Horizon, dramatically improving the performance of its BizPro eSources training portal by increasing the number of customers accessing the site. Horizon’s conversions rate for video plays is 15%, providing fantastic visibility into the great business-building resources.

Are you ready to swim with the Brainsharks? What educational tools do you use when driving B2B content online?