The Little Things That Matter

micro InteractionsWhy The Little Things Matter

Adam KmiecAugust 22, 2008

Good Morning

"If I sent a child into one of your storeswith a broken salt and pepper shakertoday, would your policies allow yourworkers to be kind enough to replace it?"

-Randy Pausch

Letʼs Have Some Fun

micro Interactions?

Not This

This - At a Basic Level

Every day we interact with dozens, if not hundreds of brands. We share our opinions about those brands and their products openly and freely.

Each brand experience is another chance for the brand to build equity with YOU and keep YOU as a customer. Ultimately itʼs to their advantage to keep you happy and satisfied.

Most of these brand interactions are on a small, personal, and individual level.

You are more influential than you know. Brands are starting to recognize your influence. We operate in a world where the paradox of excellence exists and all it takes is one negative interaction to deplete the equity bank.

-Adam Kmiec

Isnʼt The WorldChanging?

Customers Reached

Leve

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Dia

logu

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100s 10,000s 100,000s 1,000,000s 100,000,000s

Pre-1900:

your local store

owner knew you

1900 -1950:

Department Stores

1950-1970:

Malls, mass media,

mass merchandising

1970-1990:

Catalog marketing,

telemarketing

Early 1990s:

Superstores

1990s-2000s:

Internet marketing

& selling

Y2K:

Individualized

Internet marketing

mass customization

Thanks to Hans Peter Brondmo, The Engaged Customer

You HavePower!

Political CandidatesDebate On YouTube

Engagements Are Announced Via Facebook

Employee References AreChecked On Linkedin

We Watch TV OnOur Computers

Weʼre Finally RewardingLoyal Customers

IM-ing And TextingAre Killing Email

We Talk Less, ButInteract More

25% of GMʼs BudgetWill Now Be Online

The Purchase FunnelIs No Longer Linear

Itʼs Becoming HarderTo “Target” Consumers

Less Of This

More Of This

Less Of This

More Of This

One To One MarketingIs Not Putting My Name

On A Form Letter

Media ConsumptionIs Changing

From This

To This

Donʼt Believe Me?

Huffington Post vs. Star Tribune

Internet PenetrationMobile Adoption, And

Social NetworkingAre The Enablers

82%* Of The U.S. Is Online

363 Billion Text Messages

ESPN Pffff.

Good MarketingMeans Marketing

As A Service

Someone Gets It

Nike+ Performance‣ As of February, 2008, Nike+ members have:

‣ Run over 50,000,000 miles

‣ Logged over 14,000,000 runs

‣ Issued over 450,000 challenges

‣ Created “the worldʼs largest running club” with 75,000,000 members

‣ 40% of community members who didnʼt own Nike+ ended up BUYING!

‣ 94% of consumers agreed to recommend NikePlus.com to a friend

-Cannes Award Submission

OK, So What Do WeDo About All Of This?

Embrace ItMake Every Interaction Count

Why?

So We Donʼt EndUp Like Starbucks

AUSTIN, TX (KXAN/AP) - Earlier this month,Starbucks announced it is closing over 600 storesdeemed "unprofitable." Now we know which locationsare on the chopping block.

The company had previously planned to shut 100stores. The 500 more that will be closed had been onan internal watch list for some time. They were notprofitable, not expected to be profitable in theforeseeable future, and the "vast majority" had beenopened near an existing company-operatedStarbucks, Bocian said.

From: Howard SchultzSent: Wednesday, February 14, 2007 10:39 AM Pacific Standard TimeTo: Jim DonaldCc: Anne Saunders; Dave Pace; Dorothy Kim; Gerry Lopez; Jim Alling; KenLombard; Martin Coles; Michael Casey; Michelle Gass; Paula Boggs; Sandra TaylorSubject: The Commoditization of the Starbucks Experience

As you prepare for the FY 08 strategic planning process, Iwant to share some of my thoughts with you.

Over the past ten years, in order to achieve the growth,development, and scale necessary to go from less than1,000 stores to 13,000 stores and beyond, we have hadto make a series of decisions that, in retrospect, havelead to the watering down of the Starbucks experience,and, what some might call the commoditization of ourbrand.

Less Of This

More Of This

Less of This

More Of This

More Of This

Consumers Are InControl. Look, Listen,

Read, And Take Notice.

Theyʼre Easy To Find AndOpenly Share Their Lives

Donʼt Believe Me?

OK That Was Too Easy.Still Donʼt Believe Me?

Comcast Should Listen

It Took 11 Months.But, Comcast

Finally Did Listen.

So What IsComcast Doing?

"We get it, and not only do we get it,we're not just listening. We're alsochanging the way we do things. And we'removing from being reactive to proactive."

-Jenni Moyer, Comcast Spokesperson

More Specifically

1. Appointing senior VP Germano, who is charged with monitoring all customerservice issues and building an infrastructure for preventing problems and addressing them.

2. Having an in-house team poring over the internet looking for signs of trouble and discontent.

3. Creating mechanisms for real-time communication between customer-relations employees and repair/install dispatchers.

4. Shifting the incentives for frontline employees from "productivity" to quality; i.e., getting the problem solved versus getting on to the next caller/service order at the expense of the current one.

5. Resolving to host ("within a year," according to Germano) some equivalent ofComcastmustdie.com on its own site, rather than depend on a third party toentertain the criticism, frustration, anger and suggestions of its customers.

Perception

Perception

Reality

Ouch!

BrandTags Asks TheConsumer What TheyThink About The Brand

Itʼs Evolved

Brands By Day

Brands By Hour

Letʼs Talk About140 Characters

Dewey Decimal Be Damned

March 2008Total Users: Over 1 MillionTotal Active Users: 200,000 Per WeekTotal Twitter Messages: 3 Million/Day

Seems Small Right Now. But, Trust Me It Matters.

35W BridgeCollapse

Bridge Collapses6PM

Thanks to Matt Dickman

29 Minutes LaterThanks to Matt Dickman

45 Minutes LaterThanks to Matt Dickman

45 Minutes LaterThanks to Matt Dickman

49 Minutes LaterThanks to Matt Dickman

Mainstream MediaFinally Catches Up

Thanks to Matt Dickman

1 Hour LaterThanks to Matt Dickman

Some Alert Friends

Thanks to Matt Dickman

1 Hour 42 Minutes LaterThanks to Matt Dickman

Some AskQuestions

Thanks to Matt Dickman

3 Hours 8 Minutes LaterThanks to Matt Dickman

Some Reflect Back

Thanks to Matt Dickman

4 Hours 24 Minutes LaterThanks to Matt Dickman

People Upload PhotosFrom The Field

Thanks to Matt Dickman

ʻNuff SaidThanks to Matt Dickman

Pause

There Are Limitations

Facebook Might Be Making Me Dumber :)

This Does GoBeyond The Web

How Much Is A $24.00Lampshade Worth?

Specifically This One

Answer - $4,000

“Today, I tried to return a $24 lampshade (didnʼt fit) to Targetʼs Burbankstore. I had lost the receipt, but the return policy says you only need thecard you used to purchase. I had that.

The “customer service” clerk scanned the shade and said “We donʼt carrythis lampshade.” Fine. Here it is. Doesnʼt fit. Perfect condition. Just give mestore credit, and Iʼll go drop another $200 today in your store.

Nope. “Thereʼs nothing I can do for you.” she says. My wife goes to see ifshe can find an identical one on the shelves. She does. Clerkʼs Supervisor ishere now. She scans it. That one doesnʼt exist either. Hmm, strange. Flaw inTargetʼs system, theyʼll probably give me the benefit of the doubt at thispoint.

Okay, Target. Do the math. If you lose customers who spend $4,000 a yearover a $24 return (not a cost, you get to restock the merchandise), howlong do you suppose youʼll stay in business?Target, today you lost a family who loved shopping at your stores. Bye.”

-Kirk Skodis

Bikers Beware

BikeForums member ReachHigher stripped down to her sports bra andspandex after Walmart refused to let her enter the store with her $600 bike. A manager explained that since Walmart sold bikes, bringing in an outside bike would obviously be too confusing to handle. ReachHigher asked if they also sold shirts.

"She said yes so I took off my jersey and said well then I'd better not bring this in either..."

“Her expression when the shirt came off was absolutely priceless...I waspretty tempted to take off the spandex too but I wasn't sure whatconstitutes indecent exposure in Virginia so I figured I'd err on the side ofcaution. Still I had a decent sized crowd gathered before the end of thediscussion.”

More Than 5,000 Jumped In

Itʼs Free

Itʼs Measurable

Why Arenʼt WeEngaging Them?

Not Enough ScaleItʼs A Niche Audience

Too Much MoneyCanʼt Dedicate The People

I Donʼt Understand ItToo ComplicatedIt Doesnʼt Matter

Wonʼt Effect The Bottom Line

Really?

Why Do Some Get It?

H&R Block

“The recent social-media blitz to market H&R Blockʼsdigital tax solution produced a 171% lift in internetad awareness among the targeted audience and anoverall brand awareness lift of 52%. H&R Blockdevoted about 0.5% of its total marketing budget tothe effort.”

-AdAge

H&R Block twitter Engagement

The Catholic Church

The Pope Texts

Southwest Airlines

Instant Personal Connection

Let’s Examine

Obama & twitter

Hillary & twitter

Doesn’t That Really Sum It Up?

OK Let Me Make You Smile

Where The Hell Is Matt?

Matthew Harding14 Months And 42 CountriesThousands Of Lives Touched

9,000,000+ Video ViewsOne Smart Marketer

My Story

Airport Express - $99.99

AppleTV - $329.99

$10.00 Restocking Fee Are You #!@& Serious?

Like A Good Neighbor?

My Agent, My Neighbor

My State Farm Relationship

‣ 6 Year Customer - Adam‣ 10+ Year Customer - Cheryl‣ Home Insurance‣ Auto Insurance - 2 cars‣ Personal Articles Policy

The Situation‣ My car hit a pot-hole‣ Took it to the dealer - dealer estimated $4,600

‣ Called my agent - no one was there

‣ Called again - got voice mail

‣ Left voice mail - no one returned my call

‣ I called again - got a person, not my agent

‣ Claims rep called me 48 hours later

‣ My car sat at the shop for 4 weeks‣ Never heard from my agent - not a phone call, email, form letter, not a postcard, and

nothing by carrier pigeon

‣ I blogged about it 11 times, tweeted, and told everyone I ran into about the situation

What The Community Said

You Tell Me: 630.776.5346

I’m A Hypocrite.I Can Do More.

Opportunity

"If I sent a child into one of your stores with a broken salt and pepper shaker today, would your policies allow your workers to be kind enough to replace it?"

-Randy Pausch

Meet Randy Pausch

Randolph Frederick Pausch was an American professor of computer science, human-computer interaction and design at Carnegie Mellon University (CMU) in Pittsburgh, Pennsylvania, and a best-selling author who achieved worldwide fame for his "The Last Lecture" speech on September 18, 2007 at Carnegie Mellon.

-WikiPedia

Meet Randy’s Family

This Is Randy’s Book

$100,000 Salt & Pepper Shaker

Answer - YesLittle Things Matter

Thank You!

Contact Info‣ Adam Kmiec

‣ adam.kmiec@collemcvoy.com

‣ adam@thekmiecs.com

‣ www.thekmiecs.com

‣ www.twitter.com/adamkmiec

‣ www.slideshare.net/adamkmiec

‣ www.facebook.com/profile.php?id=714008050

‣ www.imediaconnection.com/profiles/adamkmiec

‣ http://www.linkedin.com/in/adamkmiec