Category Archives for "ADVERTISING"

48 State Farm is Where??? A customer service disaster.

By John Furgurson

A couple years ago, when my kids were just 9 and ll years old, the subject of insurance came up at the dinner table. God only knows why.

My kids could recite — and often sing — the slogans of every major insurance company in the country. They had been exposed to so many commercials, they knew ‘em all…

“Nationwide is on your side.”

“Like a good neighbor, State Farm is there.”

“You’re in good hands, with Allstate.”

Prudential. “ Like a rock.”

As a parent, I was aghast. As a branding professional, I was amused, and a bit curious. Why would the insurance companies spend millions advertising on the Disney Channel and on ABC Family? At first glance, it seemed like a lot of wasted exposure.

Then I think about my own experience, and it sort of makes sense.

My parents were insured by State Farm. My wife had a State Farm agent when we got married. It never occurred to me to look anywhere else, and we’ve never had a compelling reason to change.

Insurance is one of those low-interest, out-of-sight-out-of-mind service categories that no one really wants to think about. I’d rather have a root canal than deal with insurance of any kind. And that’s why those early branding efforts are so important… once they have ya, they have ya.

We’ve stayed with the same insurance company for almost 20 years not because State Farm has good service or great rates. Not because we’re loyal to our agent, who lives 120 miles away and never speaks to us. It’s because we absolutely hate the thought of switching.

It’s like brand loyalty by default. Life, auto, home, boat, cabin… We’re all in, and the hassle factor of changing insurance carriers is just too much to even contemplate.

But that was before we ever filed a major claim. Before our little winter disaster.

It always snows a lot in the Oregon Cascades, but January 2008 was crazy. The garage/shop at our mountain cabin eventually collapsed under the weight of 10 feet of heavy, wind-packed snow. It was a total loss, to the tune of about $60,000.

Naturally, we called our agent. Her assistant put us in touch in contact with a claims adjuster, and for the first time, we realize that State Farm is like two separate companies. The independent agents who set up the policies and collect the money have nothing to do with the claims adjusters who pay money out.

For 80 years, State Farm has branded itself as a neighborly, down-home sort of company that would be there for us, if we really needed ‘em. That’s the perception they’ve spent millions to maintain.

The reality, however, is quite different indeed.

The lady who’s supposed to be handling our claim definitely didn’t get the memo about being a good neighbor. In fact, any goodwill that State Farm has built up with us over the years went right out the window with just one claim.

It’s been seven months, and they haven’t even finished cleaning up the disaster area. Our neighbors are not happy. State Farm is going to cover the loss, eventually, but the process has been painful at best. When we called our devoted agent to complain, we got nothing but excuses and second guessing.

I can’t even imagine what the Hurricane Katrina victims must have gone through. The State of Mississippi finally had to sue State Farm to get them to pay the claims due.

Talk about a PR debacle. Instead of looking like a good neighbor, State Farm came out of that storm looking like an evil, corporate giant that could care less about the little people. I’d love to know how much market share they’ve lost since then.

There are two important morals to this saga:

1. When it comes to branding, actions speak louder than words. You have to be very, very careful about promising something in a slogan or ad campaign that you can’t deliver day in and day out. Fifty years ago, State Farm probably could deliver on their promise. But not anymore. Today, State Farm is country’s largest home insurer and in the top 30 on the Fortune 500 list, It’s too big to be a good neighbor.

2. Branding is not just a function of the marketing department. It’s also an operational issue.

State Farm’s operation is totally out of alignment with their brand. The sales side and the claims side are not operating from the same playbook, and State Farm can’t fix their problem by changing their tried and true slogan. They have to change the way their claims division works in order to live up to that slogan. They need to align the experience with the brand promise.

A tall order, no doubt.

Brands have always been about trust, and promises kept. For me, State Farm betrayed that trust. The behavior of one claims adjuster was so “off brand,” I’m ready to start the long and painful process of changing insurance companies.

I think.

If anyone knows of an insurance company that doesn’t operate like two separate entities, let me know. And if there’s anyone out there who works for State Farm and would like to expand on this, please do!)

7 branding bend oregon brand strategy

Put some meat in your marketing messages.

branding blog branding bend oregon put some meat on your marketing messagesEvery year, millions of dollars are wasted on advertising that is glizty and well-produced, but not very well thought-out. Kind of like a supermodel… nice to look at, but there’s just no substance there.

A few years ago I was talking with a restauranteur about this very subject. He had retained an ad agency to help promote his launch. They produced a website, some digital ads, a radio advertising campaign, some social media posts and a slogan without having a single, meaningful conversation with him about his business. If they had, they would have realized that this particular business owner didn’t understand his own brand.

He had an exquisite restaurant in a perfect location with an impressive interior and outstanding cuisine, but he has no story to tell. No clear idea of what his core message ought to be. Unfortunately, his ad agency was relying on him for the brand strategy, so what he ended up with was a campaign that “doesn’t really fit this place.”

He and I did more quality thinking over coffee than he had ever done with his ad agency. After our conversation he was convinced he needed to start all over. It was an expensive lesson, and an all-too-common false start with his ad agency.

He should have hired someone to help him define his brand strategy. Before he paid a top-name architect to design the restaurant. Before he paid for an ad campaign. Before he ever trained his servers or developed the menu, he should have known what his establishment was “all about.”

That’s the difference between a strategic branding company and most small ad agencies. Branding starts earlier — further “upstream” — and goes deeper. It touches all facets of the business, not just the outbound advertising messages. It’s about the meat of the business, not just show business.

That particular business owner was not unique. A recent article in the Harvard Business Review shows that the majority of VP and C-level execs don’t know their company’s strategy. Or at least they can’t verbalize it without launching into long-winded corporate mumbo-jumbo.

Companies that DO have a clear sense of their marketing strategy have a huge leg-up on the competition. Little branding bend oregon brand strategyCaesar’s is a classic example. Their brand strategy was simple: Sell value and compete with Dominoes on price. How? Sell two-for-one pizzas, to be exact. That was the strategy that they took to their ad agency, and it was spelled out quite nicely: “Two great pizzas for one low price.” Then the creative folks at Cliff Freeman & Partners figured out how to communicate that simple strategy in a provocative way:

“PizzaPizza.”

If you’re old enough, I’m sure you can still hear that quirky voice in your head. The chain used that line for almost 20 years, and then went back to it in 2012. The tagline actually outlived the promotion… they’re not offering the two-fer deal any more, but the line still works.

According to Ad Age, “They’ve been able to grow the brand with a price point that was affordable option for most Americans… They really stand for value more than any other brand. A recent Sandelman & Associates survey rated Little Caesars the best value for the money.

That’s their story, and they’re sticking with it.

The benefits of a clearly defined and well-written marketing strategy are clear: You won’t run pretty ads in the wrong publications. You won’t change directions every year, just to be fashionable. And you won’t have digital advertising effort that doesn’t jive with the rest of your branding.

Bottom line… you’ll be more focused and efficient in everything you do.

But how do you get there? In most small ad agencies strategy is not a deliverable. Account executives do it by the seat of the pants based on information provided by the client, and on gut instinct. Then they’ll just jump right into the sexiest part of the project… the creative execution.

bend branding firm bend ad agencyThat fits with the prevailing perception: Most business people think of strategic planning as a left-brained activity, but ad agencies are enclaves of right-brained, creative thinking. Therefore, you can’t possibly get a brand strategy from them.

Right???

Traditional thinking also says you need a consulting firm for strategy.

What’s more helpful is a sensible combination of both services from one team: Strategic insight and disciplined execution. A left-brain, right-brain, one-two punch. That’s how my firm approaches it… insight first, THEN execution.

No amount of creative wizardry will save a marketing campaign that lacks a strong, well-defined sales premise. That’s why we put so much emphasis on message development and front-end strategic issues.

Setting aside time for some productive strategic thinking is the most valuable thing you can do for your business. And it’s not about spreadsheets, it’s about story telling.

Chances are, you’ll need help. You’re too close to the situation. Too consumed by the quarterly numbers. Or just too darn busy.

So find someone you trust. Block out a day, get out of your office, and think it through with your most trusted advisors. Look at everything you’re doing, and ask yourself this: what is this company really all about? What’s the message of substance behind your marketing? Is your brand all beauty and no brains?

BTW… That restaurant I referred to in the beginning of this post has since gone out of business.

Need help pinpointing your brand story? Shoot me an email or a LinkedIn Message. John Furgurson. Johnf@bnbranding.com.

Want more info on brand strategy and strategic message development? Try this post.

1 How to survive when the economy tanks.

There’s a lot of economic doom and gloom in the news these days; Unless you’re living in a cave somewhere, you’ve heard about the housing market, the unemployment rate and the rising price of groceries and gas.

For many business owners, it’s frightening. The fortune-teller economists are predicting even more “belt tightening” as the year goes on, and if you let it, all the crummy forecasts might scare you into doing something totally rash. Like nothing at all.

It’s pretty common, actually. When the leading economic indicators start heading south, many business owners go into immediate survival mode. Stop, drop and roll! Duck and cover!

The natural tendency is to adopt a siege mentality and hunker down until “things get better.” So they pull the plug on marketing and branding. Then P.R and charitable giving. Then training and customer service initiatives. They stop doing the things that helped them succeed in the first place.

It’s a strategy of inaction, and it never works. Not in the long run.

Studies of life and death survival struggles prove that action is the antidote for despair. You see it in cancer patients, in soldiers, castaways, mountaineers and disaster victims. Those who let despair take over, sit down and die. Survivors, on the other hand, take action.

Determination and a disciplined, almost clinical approach seem to be the secret. Survivors don’t place blame, make excuses or wallow in self pity. They accept their current circumstances and start working on a solution immediately by setting small, achievable goals. They don’t waste a lot of energy running around in circles, doing things that won’t get them to the goal.

For a climber in the Andes, it meant extricating himself from a crevasse and literally dragging his starving body and shattered leg 10 miles down a glacier. All the way back to camp. For one hiker in the canyonlands of Utah, it meant amputating his own arm with his pocket knife.

Makes surviving a recession seem like a cake walk.

Make no mistake about it, a significant economic downturn can be fatal to a small business. But businesses fail all the time, regardless of what the economy is doing.

The fact is, if you have a clearly defined strategy, and the discipline to stick with it, there’s no reason you can’t do much more than just survive a recession. You can thrive. You can gain ground on the competition. You launch new products and improve your entire operation. The history of American commerce if full of war stories that prove the point.

Post and Kellog’s were battling head-to-head in the breakfast cereal category when the Great Depression hit. W.C. Kellogg plowed ahead, doubled his advertising budget and even introduced the world’s first vitamin-enriched product cereal. Post cut back and Kellogg’s has been the market leader ever since. (Kellogg also cut hours in his plant for three of his shifts and added a fourth, just to spread his payroll among more workers. But that’s another story.)

But forget about the 1930’s. Here are some things you can do, right now, to survive the perfect, economic storm.

1. Use downtime to your advantage. Most managers have so many fires to put out they never get around to long-term strategic thinking. If things are slow, do it! Clarify your objectives and fine-tune your elevator pitch. Revisit your value proposition. Make sure you can communicate your strategy clearly and succinctly. (Few CEOs can.)

2. Get your bearings and refocus your efforts. In the woods, the last thing you want to do is wander around in circles. Same thing in business. Don’t waste precious energy and money chasing business that doesn’t really fit your model. (see item #1)

3. Renegoiate your media contracts. When it comes to print ad space and broadcast spots, you should be able to get a lot more for your money right now. So play hardball. Insist that your advertising salespeople work up innovative new schedules.

4. Get creative. Brainstorm new strategic alliances, sponsorship opportunities or marketing initiatives. Look for ways to leverage your existing partnerships. Do something! And keep this in mind: When times are tough even small initiatives can have a big impact. Because everyone else is sitting around waiting for the rescue helicopters.

5. Recycle one of your favorite, old ad campaigns. A lot of people kill campaigns way too soon, before the public has ever been thoroughly exposed to the messages. So instead of creating a whole new campaign, go through your archives and dust off the advertising that’s worked for you in the past.

6. Spend a little extra time listening to your best customers. Forget about you, and find out what their problems are. Then help devise a solution.

7. Take extra care of your people. They’re reading all the bad news in the paper too, and it’s unsettling. So step up, and be a leader. As the CEO, you have to be an optimist. Because nobody follows a pessimist.

radio advertising

Is it car sickness, or just nauseating radio ads?

radio advertisingKids get car sick. Cleaning vomit from the back seat is part of every parent’s on-going indoctrination. But when adults start getting woozy every time they run a quick errand, you have to wonder about the cause.

Is it car sickness or the constant barrage of bad radio advertising that makes you want to throw up?

Thankfully, the automotive engineers have devised a cure. With steering-wheel mounted audio controls, drivers can change the channel, quite literally, without lifting a finger. So the instant a bad commercial comes on they’re outta there. Before the gag reflex forces them to the side of road.

You’ve heard the commercials I’m talking about. The worst offenders involve a ridiculous, up-beat jingle or dialog between two “real people” who are stiffer than a week-old corpse. In the worst-case scenario, it’s a double whammy of bad dialog with a poorly-produced jingle sandwiched on both ends.

How does this happen? Why do so many radio commercials degenerate into one long string of corporate cliches and yes-man mumbo jumbo?

Radio is potentially the most creative of all your advertising options. There’s a reason it’s called “theater of the mind.” In a 30-second spot there’s time for character development. Plot lines. Even intrigue. Well-written radio engages the human imagination and entertains while conveying a clear message about the character of your business.

You can be concerned, caring and compassionate. You can be convincing. You can create drama that moves people, or comedy that cracks them up. You can literally make people hungry just by using a few choice words and some sizzling sound effects.

radio advertising agency bend oregonUnfortunately, most companies come off sounding obnoxious, greedy or condescending. Announcers talk about “our friendly and knowledgeable staff. ” Jingle lyrics sing about “qual-i-ty and crafts-man-ship.” And in phony slice-of-life commercials people talk enthusiastically about douches and over-the-counter hemorrhoid medication. Puke alert! People just don’t talk that way, and everyone knows it.

If you want your radio advertising to be more palatable to the listeners — and more profitable for you — you have to do more than just the usual sales spiel set to music. In fact, the most memorable radio campaigns all contain five crucial elements:

1. A smart, coherent strategy.
2. An original idea.
3. Exceptional writing.
4. High production values.
5. Plenty of air time.

Devising a simple but intelligent advertising strategy is the single most important step in the whole process. Unfortunately, it’s also the most widely neglected. The radio stations won’t help with strategy. That’s your job — or your agency’s job. If you want results in the long run, you really need to spend some time thinking it through before you run out and book the air time.

Most advertisers use radio only as a tactical sales tool. But a long-running campaign can be much more than that. It can be a major asset to your business and a constant thorn in the side for your competitors. (You want them thinking, “gee I wish we would have done that.”)

A smart advertising strategy combines a high degree of business discipline with a good dose of imagination. It’s a creative thinking process that few business owners ever take time for and that many people consider pie in the sky… delving into issues like your core values, positioning strategy, brand personality and competitive analysis.

So if strategic thinking is not your strong suit, get some help. Find someone who can guide you through the planning process, help you prioritize your messages and hone-in on the dramatic difference that will resonate with listeners. Insist on a thorough strategy statement that will become the foundation of all your future advertising.

Once you know what to say you can begin thinking about how you’re going to say it. That’s where an original idea is absolutely invaluable.

Radio is great for conveying ideas, but lousy for listing details. People tune out when you start throwing laundry lists of products and services at them. You have to whittle it down to one main idea and then hammer that idea home time after time.

Doug Hall, Founder of the Eureka Ranch says, “articulating your overt benefit is a never-ending journey. You can always do it with greater relevance, interest and excitement. “

What you’re after is one idea that has thousands of possible iterations. Tom Bodett’s timeless, down-home humor for Motel 6. The Great American Hero series for Bud Light. Orkin’s authoritative announcer for their product that “kicks fire ant butt.” “Pizza Pizza” for Little Ceasar’s. These are big ideas that have produced big results over the long haul.

radio advertising agencyThere have been many copywriters on the Motel 6 account, but the campaign stays fresh because the idea is consistent, the character is well developed and the writing is sharp. Which brings us to the third major component of great radio advertising.

Every word has to be written with an ear for alliteration. You have to hear it. You have to sound it out. Then you have to edit mercilessly. Dialog should flow naturally, as if from the lips of a real person, not some cheap pitchman. It should be quick. Snappy. And smart.

Easier said than done. Some of the finest fiction writers in the world have trouble writing believable dialog. In Hollywood the problem is pronounced. The major movie studios employ writers who do nothing but re-work the dialog on existing scripts. And even then, there is a lot of really lousy dialog that gets through. It takes a special ear. Just because you got A’s in English class back in college doesn’t mean you can write a good script.

Of course a good script, an original idea and a brilliant strategy won’t get you anywhere if you cut too many corners on production. All the radio stations offer free production services. The sales rep will write you a script and the station’s producer will record the voice-over, add sound effects, drop in a music bed, do a mix, and cut the necessary dubs. The problem is, the producer might have as many as 40 spots to complete in a weekend, and after a while they all start sounding the same.

For instance, finding good voice talent is always a challenge. There are plenty of people on the radio with great voices who can’t act worth a hoot. And that’s what we’re really talking about here. Acting.

We can produce radio spots here in Bend, Oregon while using actors in London. So you don’t have to settle for a local DJ who’s also doing spots for a used car dealer. Keep in mind, your talent is the audio personification of your company. He or she better be able to convey genuine emotion using just the vocal chords. He better be ready to capture the flavor and the inflection of a well-written script without going through thirty different takes. Otherwise, even the most talented audio engineer with all the latest sound enhancement software won’t be able to save it.

The last piece of the puzzle is reach and frequency. That is, how often are your spots running and how many people are listening. (Without getting ill.)

The most common mistake is spreading your budget way too thin across too many different stations. Inc. Magazine recently published some good guidelines for this. “You should be buying more frequently over two weeks instead of spreading it out over a month, and buying 30 spots on two stations instead of 18 spots on three.”

A rough rule of thumb is that listeners need to hear an engaging ad at least three times a week before it starts to break through the clutter. Believe it or not, if your spots are well done you’ll get sick of them a lot faster than the general public will. So resist the temptation to change. Stick with it until the airwaves are saturated.

Radio is a wonderful, cost-effective medium. (Contrary to internet rumor mill, it’s not dying.) When all five elements come together in a 60-second spot it can be pure magic. Remember, you’re looking for solid strategy, an original idea, concise writing, strong production values and plenty of air time. Even four out of five would be nice. But when several of those elements are missing, there’s a good chance your ads will just be turning stomachs. And ultimately, it’s your responsibility as an advertiser to keep that from happening.

Need better radio ads and better results? Contact me.

Want to learn more about how to devise effective messages for your radio advertising? Try this post.

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