A Lesson From Taco Bell: What Makes Freebies Valuable?

Recently, Taco Bell offered it’s 6 million Facebook fans a free taco redeemable with no strings attached at any participating location.  Interestingly, only 3% of fans took up the offer.  So, what is it that makes a freebie valuable?  What made Taco Bell’s offer so unappealing to its Facebook fans?

For starters, a 99 cent taco lacks the perceived (and real) value that gets a person excited about receiving a prize.  While its great to win anything, 99 cents is easily replaced.

This blog thinks a lack of exclusitivity is what made the promotion fail.  Though it may be true that a promotion corresponding with a new product launch may have increased the perceived value of the giveaway, I do not believe it was the number one deterrant to it’s success.

So what was? 

In my opinion, it was the effort required to redeem the prize that was the biggest problem.  When you think about successful promotions like Tim Horton’s Roll Up the Rim to Win campaign, customers can redeem prizes instantly.  Taco Bell put too many barriers in place for customers to the point that, even if they wanted the free taco, it wasn’t worth the effort.  When it comes to promotions, instancy is the name of the game. 

Though the online landscape has opened doors to interaction between brands and customers online, instant access to physical products has been a barrier to the success of numerous campaigns.  Brands must figure out a new approach to these types of giveaways if they wish to make them worthwhile going forward.

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Mobile Publishing: Mygazines

In an increasingly mobile world, the need for content on Smart Phones and tablet devices can’t be ignored.  But how much should companies be investing to stay on the cutting edge?   With mobile applications still in their infancy and the cost of app development seemingly unmanageable for most small companies, the search for reasonable alternatives begins.   

Mygazines offers a great option for anyone from a freelance writer to a large publishing company looking to make their content mobile-ready, at a reasonable cost.  The service has some impressive marketing functionality as well, with options for content sharing, social media integration, built in RSS feeds and video integration.  The only catch is that the services requires a browser to launch; which takes most e-readers off the market.

Today, the need for app development may be dependent on a number of factors including; industry specific requirements, the types of content being displayed and the price customers are willing to pay to get what they want.   For everyone else, there’s solutions like Mygazines to meet customer needs without breaking the bank.

Price Sensitivity

With gas prices higher than they’ve ever been (and the obvious consumer discontent associated) it got me thinking about the threshold that exists for price increases. Gas is obviously a commodity that people need to get around, but at what point do people get so frustrated with the cost that they look to alternative forms of transportation? In some cases high prices are bearable and not worth the additional effort necessary to change a daily routine. However; there has to be a threshold at which people decide enough is enough. In most cases that threshold will probably be dependent on the cost of switching to a different brand or in this example, method of transportation.

Often publishing companies that operate on a subscription model battle with the best approach to annual price increases. As a product’s readership decreases the price needs to increase to maintain consistent revenues. But at what point will the customers that purchase the product look for an alternative because the cost of the product is simply no longer worth the value they receive in return?

The Van Westendorp Price Sensitivity Meter is an approach to researching pricing that asks the following 4 key questions to set a range within which people will continue to purchase the product in question:

1) At what price do you begin to think a product is too expensive to consider?
2) At what price do you think a product is so inexpensive that you would question the quality and not consider it?
3) At what price do you think a product is getting expensive, but would still consider it?
4) At what price do you think the product is a bargain?

In the digital age, one thing publishers have struggled with is putting a value on “content”.    Most consumers expect that the cost of a book be significantly less on a tablet because there are no costs associated with a physical product.   By implementing a Van Westendorp Study, you can more effectively use customer feedback to set prices in the range that optimizes sales and keeps customers satisfied.

Want to be the Best in the World?

I recently had a debate with several colleagues about the following question; would you rather be the best in the world at one specific task or a jack of all trades? Viewpoints on the question were mixed.

On one hand, being the best in the world makes you an authority on whatever it is you are the best at. A jack of all trades may have a wide range of talents, but is unlikely to be called upon for knowledge on one particular subject.

On the other hand people that are the best at what they do spend endless hours perfecting their craft, but are often one dimensional. What does a professional athlete do after his or her career is finished? Malcolm Gladwell’s title “Outliers” suggests that it takes 10,000 hours for someone to master their craft. That’s over five years (based on a 37.5 hour work week) of working on only one specific task.

Product Management is one career path where it’s viewed as beneficial to have expertise in a number of areas. As the link between a number of organizational functions including technology, marketing and sales – having broad knowledge is important for developing the trust and support of the stakeholders Product Managers work with on a daily basis. A Software Product Manager without technical expertise may have difficulty communicating customer needs to the internal technology team. An effective product manager though, must also be able to communication benefits to the product’s end user in a way they’ll understand.

In Product Management, being the best in the world is not a matter of mastering one particular task. What are the key factors to perfecting your craft?

Web Evolution – A History of Web Design Over the Past 20 Years

Below is a graphic developed by KISSmetrics outlining the evolution of web design since the world’s first website was launched  in 1991.

In only 20 years the definition of a “web presence” has evolved to the point that today, many argue that traditional websites are becoming obsolete.  When discussing the promotion of his new book, Guy Kawasaki recently suggested that he didn’t need a website to reach his target customers, but a Facebook page instead.

Static websites are a thing of the past and concepts like collaboration and crowd sourcing are becoming web standards.  Of course, the evolution will continue and even these concepts will become old news (probably even faster than traditional web pages).  The infographic below is a great reflection of where we’ve been in such a short period of time.  One can only speculate what this chart will look like 20 years from today.

Aflac Looks for New Voice

Known for it’s strong social media presence, Aflac (and its trademark duck) recently entered some unfamiliar waters… hot water.

After making a number of insensitive cracks about the recent disaster in Japan, the voice of the Aflac duck was relieved of his duties.  As a result, the insurance company was in need of a new voice to represent its brand through the various social media platforms that it has been active on over the last several years.  However; what could have been a public relations disaster has been parlayed into a creative social campaign designed to find the next voice of the Aflac duck.

Aflac’s quick response to the situation distanced the brand from the opinions of  the its former spokesperson.  While incidents like these are unfortunate, the company’s deep involvement in social media allowed it to reach customers quickly to involve them in a search for a new voice.  This involvement has not only helped people forget about the recent comments, but will also undoubtedly lead to a voice that customers can resonate with.

Social Media Metics and ROI

Since the emergence of social media marketing as a way of maintaining a continual dialogue and brand recognition with customers, brand marketers have struggled to understand the true impact of their online efforts.

Syncapse recently published a whitepaper on  understanding Facebook fan value and key return on investment indicators.  I recommend that any brand marketer interested in better understanding the online landscape and the value of engaging customers through social media platforms read it and consider how to provide relevant content to potential customers (and convert them to brand ambassadors) online.

Similar to a Twitter follower, a Facebook fan will be more valuable if they have a true interest in your brand and product offerings.  The number of facebook fans a brand collects is less important than who those fans are.  In other words, quality trumps quantity.  Knowing who is following your brand will go a long way in understanding their value and the return on your online activities.

What does your company do to assess the quality of your social media following?