Measuring Up

A non-story after 100 days in office

The President's 100th day in office was marked by a press conference and lots of news stories rehashing the good and bad (it was mostly reported as good, in case you were tuned out) of his administration. And, once again, many outlets like CNN focused much of their spotlight on how Obama ‘apologized’ around the world for America's poor behavior over the last eight years.

The amusing slant to this story (for me at least) is how we should all be shocked that an American president would do this. The rhetoric surrounding his supposed contrition is equally as entertaining.

Let's see. A liberal, democratic president openly exclaims to the world that the former, right wing, Republican administration did everything wrong. And, these past government leaders should be ashamed of themselves. Hmm... wow, that has to be a first. What a fantastic story!

OK, OK. I know. Obama didn't exactly use those words. And, in fact, he never actually ‘apologized’ (contrary to what CNN reported, which I'll get to soon.) But, hopefully my point is starting to resonate now...

Whether you agree with their military/non-diplomatic policies or not, it's hard to argue against one fact. Eight years of war under George Bush and Dick Cheney has greatly strained US relations across the globe. Of course, any new president from the opposing party (with 180-degree different views) is going to come into office trying to massage those relationships back to health. And, the most obvious way to do this is to blame those from the ‘enemy’ party that held office right before him. As my partner likes to say, Obama's international tour to do just that was a ‘no brainer.’

No surprise, the sensationalistic way our media labeled this trip abroad (‘the Apology Tour’), is typical and represents bad form as well. Even last night when Wolf Blitzer interviewed Defense Secretary Gates, the interview was pre-promoted for an hour as Gates commented on ‘Obama apologizes to the world.’  Yet, the secretary quickly tried to correct these mistruths by saying that the President hasn't been apologizing at all. But, instead he's building relationships by discussing how this administration will work with foreign leaders in a different manner.

Is it news that Obama continues to travel from country to country repairing bonds with their leaders? Sure. The media should cover and report this to us because he is the President and it is a change of strategy. But, is the message coming from him so surprising? Absolutely not. In reviewing history, Jimmy Carter lambasted Nixon/Ford and eight years of Republican rule to the international media when he came into office. And, his predecessor Ronald Reagan, did the same and beat up on Carter's diplomatic weaknesses as well.

Ladies and gentleman of the media, it's time to move on.

Bravo for BerkShares

Have you heard about BerkShares? I first learned about it Sunday night on this ABC News segment. This  alternative currency named after the region for which it was originated in Western Massachusetts (Berkshire County) has caught on like wildfire. And, I can see why.

Started in 2006, BerkShares are now being substituted for official US currency in over 370 businesses in Berkshire County. Basically, any citizen of this county can go to one of 12 banks there and pay $90 for $100 worth of BerkShares. (That's a 10 percent discount for those of you who aren't very good at math.) If you go to its web site, you can see that pretty much every type of service and product business from bakeries, and clothing stores, to restaurants, hotels, fitness centers and landscapers accept and transact business with BerkShares currency. Even residential and commercial landlords are accepting BerkShares as payment for rent. And, that is the critical point because the more consumers and businesses conduct commerce with any currency, the more value it will provide to the community by keeping money in the local economy. In fact, there is now over $2.3 million worth of BerkShares circulated within this small New England community.

There's nothing new about specific regions or communities creating alternative currencies. In fact, BerkShares are actually a throw-back to the Great Depression when a number of cities tried to print and circulate their own currency because our national one was worth almost nothing. The difference this time around is that nothing has ever been so widely adopted and enthusiastically accepted as BerkShares. And, that's pretty cool.

Everyone continues to look for bright spots in this dark economy. I think the Berkshire region has found a gem. The ability for its citizens to receive discounts on almost everything they buy with this currency is certainly the core economic benefit. But, what is really exciting to see is that this story is more about how a community is truly unifying in the toughest times to find ways to prosper. Many people in the Berkshires seem just plain giddy about what their tiny community has developed. And, a little happiness goes a long, long way these days.

"What’s in a name?” Plenty.

Today, Michael Dresner, CEO, Brand² Squared Licensing, A Division of Peppercom, has written the following special guest post.

This week, MSN had a slide show called “14 Brands in Danger of Disappearing,” with ominous predictions for   Hummer, Gleem, and Saab (among others). MSN’s claim:  “Consumers are cutting back, and corporate America is responding  with cuts of their own.” This is accurate, though not a new trend. Corporations have long acknowledged they could spread resources across only so many trademarks. Brands that cannot justify the attention, R&D, and ad dollars were divested, or placed in corporate archeology. But even in bad times, the liability of one entity can become the asset of another. So rather than assuming Hummer, Gleem and Saab are recession-driven endangered species, MSN might document a more predictive – an interesting – analysis on what these brands may become. Examples abound:

Sharper Image was a specialty gift and electronics retailer with nearly 200 stores focused on early adopters seeking the next innovative gadget. Big box retailers like Staples, Bed Bath & Beyond, and Macy’s began offering similar merchandise at lower prices, while mall traffic was declining. Sharper Image filed for bankruptcy in 2008. The brand had deeply satisfied millions of consumers over 31 years. Those consumers didn’t feel differently about the brand because of corporate distress. So Hilco Consumer Capital purchased the brand name and now licenses into the kitchen electrics, men’s personal care, bedding and MP3 categories. And, these products are now available at... Staple’s, Bed Bath & Beyond, and Macy’s. 

Starter athletic wear brand, founded in 1971, was among the first to establish alliances with major leagues, colleges, universities and the Olympic Committee. Starter was acquired by Nike in 1999 – and internal competition was rife.  Starter could never command the attention or resources of the Swoosh. Yet, Starter had a generation of consumers that grew up with the brand and still embraced its equity in sports league and team partnerships.  Starter was acquired by Iconix in 2007. A much broader and advanced product line was developed with licensees.  Now Starter is the pre-eminent athletic brand at Wal-Mart. 

The list of operationally distressed– yet consumer beloved and thus relaunched - brands is endless. White Cloud. Calgon. Right Guard. AT&T– once Ma Bell trademark, today (under new ownership) iPhone delivery brand. Whoever finds a way to relaunch Kayo Chocolate will retire early. So why would the Hummer trademark drift into obsolescence?  A new owner, without the baggage of its predecessors, can easily leverage the military-like, powerful equities of this ultimate “off-road” vehicle to create a dirt bike line.  A toy company can turn Hummer into a competitor to Tonka.  Hummer may compete against Swiss Army in the categories of army/navy, or outdoors-inspired, apparel, gear and accessories. 

The revenue opportunities for Gleem under new ownership are limitless. It can easily extend into toothbrushes, floss, mouthwash, or teeth whitening.  An agile acquirer can refresh the packaging, tap into oral care innovation happening in many places far beyond P&G (Gleem’s current owner/hopeful seller), relaunch with a superior proposition, and reign back Gleem brand enthusiasts. 

When it comes to an acquirer’s ability to see these brands for the future economic potential they have, let’s not underestimate the possibilities. Hummer, Saab and Gleem will likely be a part of our lives for a long time to come.  And if you are the proud owner of the Kayo trademark– you have pent up consumer demand and a gold mine in your pocket. There’s no better time to leverage it.

Too fat in Britain? Here comes the tax man...

I heard an interesting debate on British radio this morning. Seems there's a dispute brewing as to whether overweight British citizens should pay higher taxes than their healthier brethren because they need to use the nationalized healthcare system more. If this became a reality, citizens would need to be weighed periodically and if they failed to stay below a certain national level, then the percentage of taxes they pay towards healthcare would rise.

The commentator who was arguing for this (no surprise, a more conservative chap) feels that it isn't fair to make all Brits pay the same level of taxes to support a government run system, when those who range from overweight to obese, clearly need more medical resources, drugs and hospital stays. This group should pay a larger percentage to the tax man. He was all for breaking out the scales as quickly as possible.

His colleague (a more liberal minded bloke from the Labour Party) argued vehemently that socialized healthcare was created to help all citizens equally. Thus, each should pay the same amount into it. He also rebuked his colleague by reminding him that obesity is a disease and that a moderate percentage of those who are weight challenged have spent their lives attempting to lose the extra pounds. But, because of their unique metabolism, thyroid and other health related problems, it just isn't possible. He asked why should these people be penalized for that.

My personal opinion on the matter is that both of these gentlemen are missing the real point here. There is no doubt that obesity can be linked directly to added medical costs (as well as very serious diseases and ultimately death.) But, just because someone is weight challenged doesn't mean he/she will always use the healthcare system more than others who aren't. There are plenty of people with other chronic diseases (Type 1 diabetes, asthma, high blood pressure, depression, etc.) who need constant doctor and hospital treatments and use a considerable amount of drugs to stay healthy or maintain balance in their life. And, there are plenty of people who just like to see the doctor a lot and are constantly being prescribed drugs to treat anxiety, insomnia and a variety of other mental problems. Many of these citizens aren't overweight. Yet, they take advantage of the healthcare system far more than the average Simon in England.

So, my point to all this is that I agree that fairness in this socialized system would be to tax some more than others. But, that should only be based on those who actually use the system more, not those who seem to be the unhealthiest lot and will probably need an abundant supply of medical care sometime in their lives. 

Our healthcare system in the United States is quite different. Both are quite dysfunctional, but in our case, the government cannot step in to force citizens to pay higher rates. No, in this case, private health insurers have all the power. As an employer who shoulders most of the healthcare cost for our employees, I have no problem following the same rule of thumb recommended above. Those who use the system more should pay higher fees to support the overall cost to each company. That's only fair to the majority who really only see a doctor once a year for his/her regular physical.

A year ago, I remember when the Japanese government instituted a policy that literally measured the wastes of its citizens at work (in front of colleagues) once a quarter to see if they were "too fat." I pray that I never live in a society where that type of action is forced upon its citizens for the sake of a few hundred dollars each year.

We sneeze and the UK gets a cold

That’s the line I’ve often heard in London when anything bad happens to the U.S. economy. I’m here again. And, these days the US and UK are both very sick. So, I’m now hearing a different type of analogy that goes something like this, “We’re both taking medicine, but our (UK) sickness has taken hold and won’t leave our bodies for a long time, while, you Americans will find a way to be healthy very soon.”

It’s an interesting (maybe the word should be sobering) time to be living and conducting business in the UK. In many ways, this country took even more risks in key spots of its economy than the U.S.  Among those egregious areas are: Personal housing mortgages (some loans were given for more than the property was even worth), credit cards (given out to anyone like umbrellas on a rainy day) and private equity (acquisitions and financing made with outrageous amounts of debt).

The feeling I’m sensing is that while both of our countries are in a heap of trouble, the belief is that the US will move beyond these choppy waters in much quicker fashion than the UK. This is because our appetite to learn and create quick solutions to problems is more a part of the American way of life. More specifically, the American culture will always be entrepreneurial and one that evokes real capitalism. And, while unbridled capitalism run amok got us into this mess, it will also help lead us to the new fertile ground that our economy can focus on. Many people (including this blogger) feel that this is true even though our government now owns some percentages of many US banks.

The Brits (on the other hand) have had enough of this ‘capitalism thing’ and do not have the stomach for so much risk, even if the rewards can be plentiful. I’ve heard this from a few leading business executives here. And, have now watched it over and over again on local TV and read it in the newspapers.  The UK economy has always been one that nervously straddles the line of free market capitalism versus serious government intervention and regulations. Taxes have always been more onerous here. Government intervention and ownership of such things as a socialized healthcare and a pension system have never changed. And, now it seems that while the government’s new role as owner of many banks/financial services entities may not last, it certainly instills an economic landscape with long lasting regulations and laws that will look down upon any type of financing, business methods or economic strategies that allow markets to take any real chances.

The net result could be a British society that looks much more like that of France or Germany- very little risk taken, with little to no upside as well. It also could mean that the next time the US sneezes, our transatlantic friends over here will just turn their heads politely and smile.

Still searching for the perfect PDA

I'm sitting in the airport watching various passengers fumble around with their many mobile communications devices. It's a funny sight to see.

Let's see. There's the 20-something business woman who is constantly going back and forth between her iPhone (for music), a BlackBerry for email and another plain cellular phone to make calls. She seems to be a tad stressed searching through her bag to find each one.

I'm also sitting next to a mid-40s gentleman (my guess on age) who is desperately trying to receive emails from his iPhone. The problem is that they aren't coming in quick enough. So now he's turning on a laptop to wirelessly achieve download fulfillment. This guy is just plain frustrated.

I could point out three other people with similar stories... but you're probably beginning to see my point.

I think many of us are still longing to find that one-size-fits-all, perfect PDA. I know that this is true for me. Don't get me wrong. I'm perfectly happy with my latest BlackBerry. Because I only want to carry around and use one device for efficiency's sake, this one generally serves the purpose. The only issue at hand is that my calls (I have AT&T) seem to be quite expensive (and I'm not sure why.) So, while I choose to use it as a mobile phone as well, it isn't quite nirvana because my company is paying far too much for what is now a commodity feature.

I don't get why so many people like, or maybe the word is are 'satisfied,' with having to cart around two, three or even four electronic devices to fully communicate and be entertained. To me, that's simply a hassle.

But, then again, I'm still wondering why one of the many technology leaders out there hasn’t created a single device that can provide the masses with one-stop shopping across the board. Apple and RIM (the maker of BlackBerry) are racing to the finish line with something that can appeal to both consumers and professionals alike, but it just feels like this particular innovation should have become a reality by now.

Until that happens, I'll just keep using my BlackBerry to satisfy all my email/Internet/cellular needs (albeit at a higher cost.) And, I'll entertain myself by watching more soon-to-be fellow passengers stressfully switch back and forth among their many cumbersome gadgets to successfully live in this new digital age.

Five tips on how to get the most value out of measurement

It feels like prospects and clients ask the measurement question in almost every meeting I’m in these days. It goes something like this, “My boss or CEO needs to see some type of return for this program….especially while we’re all just trying to survive this rotten economy. Uh…how could you…or would you propose measuring this in a way that is meaningful?”

Then we typically have a pretty substantial 15 to 30 minute discussion on how Peppercom creates tailored measurement programs for specific campaigns. Usually,  I find myself either raising a few points or correcting some misconceptions about how measurement can and should work to really help assess ROI. For those interested in metrics, here are five of those tips or guiding principles to set up the right metrics system for your company.

1)    Stop equating media relations to advertising buys – There is absolutely no correlation between a half-page article in Business Week and a similar sized advertisement in the same publication.  Readers assess the two completely differently because they are 100 percent different.  So, just because an ad in this publication costs $60,000, it doesn’t mean that the value obtained through your article will equate to the same. Please stop measuring your media relations campaign as if it were a corporate ad program. It simply doesn’t compute, and you will be just fooling yourself.

2)    It helps to understand  what your white space could be – We’ve found that a really effective measurement program needs to begin by understanding where the clear openings, opportunities or “white spaces” are from a communications ownership standpoint. Once identified, then the metrics program can be very strategic by periodically measuring how the public relations program is moving the needle (or not) in helping said client own a larger chunk of that opportunistic space.

Too often, broad assumptions are made as to what themes/messages/categories should be measured without enough proper due diligence to really see what actual opportunity exists versus how saturated that space may be with three or twenty-three other competitors owning it.  So, measurement for measurement’s sake really doesn’t mean anything unless there is a very real possibility that the program being paid for is helping to achieve real marketing and business goals.

3)     If you really want to measure ROI, then do it  - So, many communicators talk about the need to show their financial executives that the company’s PR program is having a direct impact on something important. It might be reputation, sales, employee retention, or whatever. But, when the rubber hits the road, my experience continues to be that many of these same executives really only want to measure the quality and quantity of a media relations campaign (or outputs), but never really desire or intend to see if these outputs had any direct or indirect impact on outcomes (that impact business).

It really makes very little sense because C-level executives (mostly) want outcomes. They aren’t only interested in seeing if the stack of national media articles Is rising, or even if the message quality is improving as well. I’ve said it before…so here it comes again. A good measurement program can and should be able to show whether business goals (ROI) are impacted by a particular program as long as relevant data is tracked and assessed the correct way. I’d love to see more organizations stop talking and start acting by connecting communications to business in this way.

4)    Measurement doesn’t work well through constant starts and stops – There’s a hell of a lot of change going on right now in the corporate world. People are losing jobs, divisions are being consolidated, companies are being sold. So many campaigns and their measurement programs are terminated or temporarily halted in mid-stream. That’s understandable. However, it’s important to understand that it really doesn’t make sense to implement a measurement system unless it can operate for a continued period of time (hopefully for 18 months or longer) for an ongoing campaign. Only over time can one correlate whether a target campaign is really having a direct impact on those important business outcomes versus  what could be a momentary spike, or accidental lapse in results.

5)    Now that we’ve got the analysis, let’s make some real changes – Even the most rudimentary metrics systems (like ones that simply track media by amount of impressions/quantity of messages) should have some sort of analysis step when the metrics results are in. I’ve seen how organizations love to track the attention they are receiving, but they never truly sit down to analyze the good and bad to make needed changes that can maximize ROI. This is kind of ridiculous, right?

Assessment seems obvious. But, sometimes it’s all about having an objective third party sit down with measurement findings to analyze and then offer some real feedback to those communicators in charge. Then, it’s up the agency team or corporate communicators to use that information to improve and focus continual efforts on those areas where ROI can be greatest, etc.

“15,000 youths came into the streets!"

That was the quote from a Moldovan blogger who, with a handful of friends, harnessed Twitter, Facebook, blogs and text messaging to create quite a powerful protest in this little known, obscure country yesterday.  

In actuality, 10,000 young protestors showed up at a solidarity rally to voice disapproval with the national elections which voted the Communist party into office again. Their anger arose because a serious question remains as to whether these elections were rigged to eliminate the other party from having any chance of being voted in.

It’s sad to see that this protest turned violent as the youths ransacked government offices and clashed with police. But, that’s not the part of this story I want to focus on. What’s truly amazing (instead) is how (when used correctly)  the latest, greatest social media tools can serve to inform, shape perceptions and act as a rallying cry to whip thousands of human beings into a frenzy in only a few short hours. Think about it. These young Moldovans weren’t just offering their support on the Internet. No, instead they were watching, listening and communicating in mass. Once they had built a large enough community (or mob in this case) through Twitter (and other social media tools), their newly formed organization had direction and a mission to take to the streets. A young civil rights leader in the early 60s once had the same effect. But, he needed to influence and create action through many stump speeches at churches and within communities. And, even with the impact that his publicity afforded him, Dr. King’s marches often took weeks and weeks to organize and prepare for. And, hundreds of organizers were needed to plan, direct and lead each initiative.

In this case, by creating their own searchable tag on twitter, a handful of protesters were also able communicate a host of newly popular topics (such as the questionable election process) through this social media tool to people around the world. This in turn has raised the level of concern and suspicion aimed at the governing Communist Party from the European Union, the Organization for Security and Cooperation in Europe and many other powerful international interests across the world. Here we see a great example of how a tool like Twitter truly has no geographic borders or limitations.

Young people have used social media tools to organize politically before. Through cell phones and text messages, they were able to energize protests in both Ukraine (2004) and Belarus (2006). And, of course, the Internet played a key role in helping our current president build support among many different voting groups just last year.

But, this latest movement truly feels like a landmark social media success moment in the grand scheme of the Internet’s relatively short history. It will be interesting to watch and see how other savvy people (probably most of them being from our younger generation) will leverage Twitter and whatever comes next to influence even more significant outcomes than what happened yesterday in the tiny country of Moldova.  

Confidence inspires confidence… or does it?

This weekend GM launched its highly touted “Total Confidence Package."  Through this program, GM is doing its best to bring customers back into the showrooms to buy. The Total Confidence Package offers any customer up to nine free payments on a newly purchased car should he/she be laid off within two years after vehicle purchase.

It’s a semi-knock off of Hyundai’s ‘Promise’ guarantee which allows customers to literally hand in their vehicle (and payments) should they lose their jobs. I thought this program was a very innovative and wrote about it in February when it came out.

GM’s program is deeply flawed. Marketing is 100 percent about communicating the right stimulus to achieve a desired response. The wrong words or phrases can elicit negative responses if they are deemed to lack credibility by target audiences. I believe that in GM’s current disastrous state, this themed program has done just that. Think about it, how could a failing behemoth like GM ever create a program that leverages the word confidence? It just makes almost no sense. And, when I hear it, my reaction is that this must be a joke. GM… and confidence? Seriously? This isn’t a ‘Saturday Night Live’ spoof?

Now, let’s get beyond the poor choice of a name. Because even though it’s hard to believe, it actually gets much worse. Every single day we hear something new about GM falling closer into the abyss of bankruptcy. The intent of The Total Confidence Package is to calm customer fears. They needn’t worry about having enough money to pay for that large, ongoing commitment (car payment) because GM will be there to help if the worst happens. Yes, it’s a very nice thought.

But, will those same customers be protected when GM can’t even protect itself? Because, chances are that this company will end up in bankruptcy within the next few months. And then, what happens to all those trusting customers who bought into a confidence plan that really can’t provide much long term confidence? That’s right. My guess is that the plan is thrown right out the window along side of all those vendor contracts, employee agreements and billions of $$$ in debt payments.

I commend GM for trying. But, once again it feels like the company developed (or in this case copied) an idea that makes little sense for the times we live in. Making matters worse, it shows how out of touch it is by spending so much promotional money on a name that almost certainly will elicit the exact opposite response it had hoped for.

Should America apologize to the world?

These are the newest media headlines floating around the last few days.

Give me a break. The theme is just dumb. It's a great sensationalistic story. But, dumb for a variety of reasons.

I'll start this argument with one of my favorite sensational quotes from a great movie created out of another financial crisis – "Greed is good." Gordon Gecko from Wall Street made that line famous. I don't necessarily agree with it. But, the point is that greed is a universal attribute. It doesn't begin with American capitalists and it certainly doesn't end with so many other financial executives around the world who willingly took part to create our current economic mess.

Yes, our U.S. economic and political system should be blamed as a willing leader of this debacle. But, what about all those other banks who willingly took part based in Scotland (RBS), Great Britain (HSBC and HBOS), Switzerland (UBS), Iceland (every bank) and the list goes on and on and on...

And, I haven't even mentioned that it was AIG's London arm that led the entire derivatives program which helped to push the global insurer over the edge.

Like anything that is too good to be true, human nature pushes human beings to stop asking questions and jump on the money-making bandwagon. That's what happened here. And, the United States is but one large culprit. Many others clearly deserve blame as well. As the New York Times reported yesterday, the real cause is actually skewed financial incentives around the world. These distortions have operated on multiple levels:
1)    An imbalance in world trade – China has huge surpluses, while everyone else is operating in serious deficits.
2)    Bailing out world financial systems whenever they are in trouble – This has greatly distorted the market.
3)    Having banks in many countries that were simply “too big to fail” – These banks took too many risks because they knew that bail outs would occur should the unthinkable happen (which actually did.)
4)    Lopsided incentive plans for the financiers – This created havoc in an otherwise naturally working free market system.
I really have to tip my hat to CNN, the Financial Times and all the other media that have carved out and pushed this tabloid-like storyline. With President Obama in Europe for the Summit meeting, it makes perfect sense to admonish our economic system for being too capitalistic. And, those sound bytes from other socialistic European economic leaders really nicely pit our leader who supposedly represents ‘free market’ capitalism (Obama) against everyone else.

The main problem is that this is not a cut and dried issue. Yes, there are many extenuating situations such as the fact that countries like France and Germany have had stagnating economies for over a decade with some of the worst unemployment in Europe. So, while they blame the US for its laissez-faire ways, they shouldn't forget that their policies, which border on socialism, have created state governments that had problems competing on a world scale and couldn't even employ their own employable workers much before this global crisis ever hit.

Maybe it's time to turn the tables. How about if we pin the blame squarely on the shoulders of our media?  I know. They've only helped to spread the rumors and harp on these negative themes so that they would be believed by all of us. They certainly didn't create the laws, provide the loans, or make the funky markets that traded us into crisis. Still, their powers have gone too far and if we could villanize them just for a week or two, it could certainly entertain many more people than what their stories intend to do now.