Service that Justifies the Price

Yes, I have paid $180.00 for a pair of jeans.  And, contrary to the shock of most men including my father and husband, many other women have made this kind of investment for a great brand.

That being said, I’d like to recognize a company that makes this purchase worth it, and one that I question.

Nordstrom is exceptional.  The staff is incredible, happy to bring you countless pairs of jeans until you discover the perfect pair.  They will even grab you a pair of heels, just to get a sense of what length you need.  Hemming is free of charge, and often can be finished within 24 hours.  In one instance, they completed my significant hemming (I’m five feet) by the end of my mall visit.  Nordstrom, in its excellence, makes $200.00 denim feel justifiable.

I visited the National Jean Company for the first time last week.  The same jean brands were pricier here than at Nordstrom, and it lacked the same kind of energy. At National Jean Company (at least at this particular location), hemming was an additional $10.00.  This surprised me.

In an economy like this, where people are just starting to spend again, people want the most for their money.  This is why I believe service will become even more important in the coming months.  If you are going to invest almost $200.00 in a pair of jeans, or any item of clothing for that matter, shouldn’t the experience live up to the price tag?  I know that $10.00 itself is not much money, but it’s the principle. Simply having something for “free” means something to the customer.  Not only do they feel taken care of, they also feel better about making such a “ridiculous” (my husband’s word) purchase without the guilt.

With fuller wallets, customers are going to be looking for exceptional service like never before.  Regardless of the jeans, it will be the company genes that matter.

Internet, Down and Out

Just a quick note to let you know my internet has been down, but it should be fixed mid-week.

So if all goes as well, I’ll be back blogging soon!

Thanks for your patience!

Just curious…

Will high school reunion attendance decrease as Facebook usage increases?  Now, everyone knows everything about their classmates.  What they look like, if they are married, have kids, or if they are successful.

I just have to think it kills some of the suspense, not to mention the motivation to actually go.

What do you think?

Facebook: Companies and their Fans

In the last few years, Facebook has transformed from a simple networking site for college kids into an online community filled with parents, companies, and advertisements.

Companies, specifically, have all clamored to jump aboard this social media vehicle.  Instead of the actual companies, I wanted to look into the people that choose to be “fans” and those that walk away.

In my poll, I asked: “On Facebook, how many companies are you “fans” of?”  The results:
Clearly, the majority of my participants forgo their public admiration on Facebook.  I did find it interesting, however, that it seems to be all or nothing, with not a single person reporting just being a fan of a few.  I talked to both sides of the table.

The Alls
Kate is a fan of nine companies.  She often seeks them out, partly because she enjoys the product updates on her newsfeed.  However, she has very specific feedback on the companies that draw her in, and those that push her away.

One of her favorites?  Chipotle.   She likes that they update only when launching a new product, such as their recent vegan option.   She says, “What’s really important is they treat their fan page like a dialogue. If you look at all the comments that people post — 99% of the time a rep from Chipotle either comments or answers a question. I asked a question about a loyalty program on their page and their rep got back to me within a few hours.”

So on the flipside of this?  “Sometimes I feel that companies take advantage of that and bombard me with updates…Lululemon for example. It forced me to hide their updates. I didn’t care that much about a new pant or jacket three times a day.  Look, I’m being sold to all the time. All the time.  Lululemon could open up a dialogue on why you take yoga, etc., but no, all they do is post pictures of their new products. It really irritates me.”

The Nothings
Angela isn’t a fan of any companies on Facebook.  Why?  “I’m on every email list, so that’s how I hear from companies.  It would feel excessive to get it twice.”  I asked her what would sway her, if anything.  “If their coupons, incentives, and offers were exclusively on Facebook, I would become a fan.”

Megan doesn’t seem very open to it.  She feels that companies are invading Facebook, and she doesn’t think being a “fan” is necessarily pure.   “I feel like the majority of people that are fans work for the company and are biased.  Or, at least the ones that post on the company fan page wall.”

Halden shares her cynicism.  “I think being a fan of a company is dumb.  I made a page for my dad’s side business, but didn’t want to pay for advertising, so I did nothing further with it.  Although, a few of my friends that own his product did become a fan.”  He added, “The only time I’ve become a fan of anyone else was to get something for free.  After I got what I wanted, I’ve unsubscribed to that company.”

Future Fan Strategy
Like anything, it’s a mixed bag on this.  For the companies out there who are looking for admirers, recognize the fine line.  Be true to your business, but offer something people want, in a way they will respond to it.  Don’t use it as an opportunity to push the hard sell, and make sure to be fresh and relevant.  And just remember, “If you build it, they will come” was just a line in a movie.  In today’s world, you’ll have an empty stadium if you think that’s enough.

Advertising I Love: Happy Friday

“Tramontina Precision Knives. Ultrathin slices.”

Direct mail piece.  Advertising Agency: Leiaute Propaganda, Salvador, Brazil

Have a great weekend, everyone!  

My Fear of the Flu, and Love for CVS MinuteClinic

Flu season is officially here, and after today, it’s clear vaccinations are in high demand.

I’ve gotten flu shots for the last few years, mostly because I have a fear of germs and things beyond my control.  In the past, I’ve been in and out within five minutes, protected for the year.  Not the case today.

In most of Massachusetts, influenza vaccinations were delivered this morning.  

At my local CVS in Wellesley, the flu shot clinic began at 10 a.m.  I arrived at 10:38 a.m. and the line was snaking around the building.  I was informed I could not be guaranteed a shot but could stand in line, and take the place of someone if they happened to give up and go home.  

Instead, I went to the CVS MinuteClinic in Natick.  There were about twenty of us in line, most of us visiting this location as our second stop.  One woman said she first went to Wellesley, but left when she discovered people were waiting two hours for the shot.  Another woman, with her young son, said she already visited a place in Natick and they were completely out of shots by 11 a.m.  

After speaking to the staff, I learned that the MinuteClinic was slammed from the moment they started administering shots at 8 a.m. this morning.  As of right now, along with most other places in Massachusetts, they have no idea when the H1N1 vaccine will become available.  Based on the group conversation, the fear of H1N1 is extremely high. 

In addition to passing along my experience and recommending you confirm the availability of flu shots before you go, I wanted to praise the CVS MinuteClinic.  

My first visit there was also extremely positive.  I was seen within ten minutes, diagnosed with a sinus infection, and had my prescription promptly filled within thirty minutes.  Even if you have a primary care physician, this is a great resource for a vaccination or care for the common cold, without having to worry about wait times or appointments.  

This is a brand extension that not only makes sense, but also truly lives up to its promise.

VW Narrows it Down to Two: What’s Next for the Iconic Brand?

VW has had quite the ride.  Germany gave us the car.  Bernbach made it an icon.  VW gave us three little words, Da Da Da, that stuck in our heads for months.  VW also immortalized the feeling of youth and freedom in sixty seconds.  (One of my favorite spots, I included it at the end of this post).

However, just recently, VW also gave us the Brooke Shields “Routan Boom” advertisements that left us confused, and in some cases, slightly disturbed.  For those of you that don’t remember, Crispin Porter & Bogusky built a campaign around the fictional fact that people were having more babies simply “for the love of German engineering.”  It’s no wonder that Crispin  didn’t try to defend the business in the agency review.

Now it’s down to two agencies to bring VW into the next era, Goodby, Silverstein & Partners and Deutsch.  Weiden & Kennedy was just eliminated.  Undoubtedly, this will be a huge win for someone.  But, it will also be an incredibly difficult challenge.

VW sold 223,128 units last year.  Their goal is to sell 800,000 new vehicles annually in the U.S. by 2018. Considering the current economic climate, it’s clear their new agency of record will be under immense pressure.  Throw in the growing demand for hybrid and fuel efficient vehicles, and you’ve got a tall order.

I’m sure Weiden & Kennedy was disappointed when they were eliminated, but I can’t help but think they are slightly relieved they won’t be set up for failure, reminiscent of their 1993 Subaru account.

On the heels of Saturn’s exit and Saab’s demise, I hope the widely loved VW brand will stay strong.  To the winning agency, I wish you the best of luck.

Some inspiration…

Korean Air: Not Cleared for Lift Off

Last week, I asked you to watch this spot.

I wanted to know what brand you initially thought it was for. The results and commentary confirmed my suspicions that while the production is beautiful in places, it’s a completely ineffective advertisement for Korean Air.

In my poll, 63% thought this was a spot from Tiffany & Co., 25% thought it was some other company, and 13% had no clue. Of these participants, not one respondent thought it was from Korean Air. Some feedback from viewers:

• “I first saw that ad on a Korean Air flight and still didn’t recognize it until the scene with the plane. The green highlight wasn’t really prevalent enough in the decor and printed materials to tie it together.” -Katherine

• “Color made me think it was a Tiffany’s ad…set the stage for luxury, but not flying…” -Giny

• “When I first saw this ad a year ago, when Katherine was headed to Seoul, it actullly annoyed me as it has NOTHING to do with an airline or why I should fly it. It appeared to be a dream of many other corporate icons (Victoria Secret angel?) with no tie in. The flight attendant turning around at the end looks like she is about to be hit in the back of the head by the giant plane. This ad has beeen running for a year, more by far than any other airline, and totally misses the message, whatever it is.” -Don

Korean Air, did you test this spot with consumers at any point? If someone sees this spot on your actual plane and is still unclear, it may be time to go back to the drawing board.

Winners and Losers in an Improved Economy

Over the past year, I’ve been on a tight budget like the rest of the world. I’ve made some new friends in this time.  Trader Joes, Overstock, and my personal favorite, Groupon.  I’ve also become reacquainted with some old retail friends I thought I’d lost forever on a shoestring budget.  They brought me back with deals I couldn’t refuse.  Incentives flood my inbox every morning, and I love it.

Is everything going to change when the economy improves? I feel like there are two distinct categories to consider.  The ones who have given deals, and those who haven’t.  I further break down these categories below.  It’s my gut, not research.

Deal Makers
Free shipping, 50% off this, 60% off that, free gift with purchase, I’ve loved it all.  These deal makers have done what it takes to get people in the door and online, and make cash in tough times.  But at what cost?

When the economy improves, and people have more to spend, how are they going to react to business-as-usual, fixed prices of a better time?  Will people perceive your services or goods to be worth less than your original asking price, now that they know they can get it for less?

I think some will win and some will lose.  My round up:

Winners, defined as those that will still maintain their image and reinstate hefty price tags without public backlash in a better economy:

• My picks: Nordstorm, Neiman Marcus, Sephora.
• My thoughts: We know these deals were short-lived.  It was good while it lasted, though.

Losers, defined as those who have entered a blurred territory:

• My picks:
• Victoria’s Secret: In my informal online poll, I found that about 40% of participants won’t even visit a Victoria’s Secret store without an incentive (i.e. free panty, discount, etc.)
• Spas: If you’ve been able to offer services for half your original price for the good part of a year, how much did you inflate your original price to begin with?  You’ve got us wondering.
• My thoughts: Inadvertently, these providers have just established new prices in the minds of consumers.  We still want to visit you and give you money, but now we know just how much we can get if we wait for the right deal.  If the incentives stop, the masses will notice.

Deal Breakers
These retailers haven’t changed their prices or strategy in this economic downturn.  Or, if they have, we haven’t noticed.

Those who will be hurt:

• My picks: Restoration Hardware, Williams & Sonoma, Pottery Barn.
• My thoughts: We’ve realized $28.00 for a Turkish bath towel or a $179.00 decorative lantern may be a bit much. We can go without, or get it on Overstock.

Those who will remain unscathed:

• My picks: Apple, Coach, Tiffany & Co.
• My thoughts: These are premium and unique products we are willing to pay top dollar for.  We aren’t going to wait for sales (excluding outlets), because we know and accept that it won’t happen.

So for the retailers out there, what do you do?

Know your worth, and make sure your customers agree.  Get a firm grasp on your short- and long-term strategies, and don’t implement your short term plan long enough that people think it’s permeanent.  Also keep in mind, that even when the economy improves, your consumer may be very different.  Reverting back to your same prices, same messages, and same advertisements could create a very different outcome than anticipated.  For many retailers out there, it’s a great time (and neccessary) for you to reevaluate. Will you be ready for an improved economy?

Something Sweet for the Economy

Every fall, I go apple picking.  Here in Massachusetts, late October is beautiful.  The leaves start to change, and the air is clean and crisp.

This Columbus Day,  I visited Shelburne Farm in Stow.  I can say with absolute certainty, that I’ve never seen so many people gathered to pick apples.

While the usual suspects, families with small children and new couples (in the Northeast, it’s the kind of date that signifies the relationship has become official) were there in droves, I couldn’t help but notice an abundance of teens and college students.

Teen boys ate hot cider doughnuts by the bags, and college students actually paid the $16.00 for a picking bag.  Children lugged pumpkins to their parents, and begged for permission to ride the pony. Regardless of age, the place was packed, and some people waited close to ten minutes for a parking spot.

I think it proves the Staycation trend is still holding strong, where people are finding new and local ways to entertain themselves.  I think it’s also some great news for the economy.  In the store, I observed people with full arms, loading baked goods and crafts atop their piles.  The concession line snaked around the building.

People seem thoroughly excited and hungry to spend again, especially on such a wholesome experience.  In the greater scheme of things, it may just be small apples, but it’s certainly something to feel good about.