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Why The Plenti Loyalty Program Failed

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Tuesdays With Coleman

On May 4, 2015, American Express announced the launch of a “coalition loyalty” rewards program called Plenti.  A coalition loyalty program offers incentives to customers of two or more businesses in exchange for user data.

On April 16, 2018, members received an e-mail notifying them of Plenti’s demise.

What went wrong?

American Express should be commended for its ability to bring a remarkably wide variety of brands together to participate in Plenti. These brands included Macy’s, Chili’s, Direct Energy, Hulu, Nationwide, Enterprise Rent-A-Car, Expedia and AT&T.

One by one, companies dropped out of the program until it caved completely.

As many radio stations we work with understand, building a coalition is no easy feat.

A News/Talk station may learn via research that fans of one show are not fans of another.

Adding 90’s Country to a Country station may take away appeal from an on-air mix based on Contemporary Country, but adding 00s Country may add appeal.

That’s why our clients are able to utilize research to identify coalitions to help them build more cohesive products.

In Plenti, you had a national coalition loyalty program that brought brands together in different categories, with customers displaying completely varying characteristics.

As one analyst put it, “researching consensus on how the program is structured can be a lot like herding cats.”

I may use AT&T for my phone, but Netflix (not Hulu) for my streaming. Perhaps I’m a member of the Gold Plus Hertz rewards program, so I couldn’t use my Plenti points with Hertz. This pretty much nullifies my interest in the car rental benefit Plenti is offering.

Consumers may be loyal to Enterprise or Nationwide or AT&T, but they’re loyal to them individually because that brand carved out a position and built a relationship with that consumer.

The consumer has the relationship with each individual brand, not with the Plenti program itself – just as listeners have relationships to a single radio station or a single podcast.

There are plenty of other reasons why Plenti failed. These include a clunky interface, low brand awareness and a confusing rewards system, as well a group of companies that each had their own agendas.

But at the end of the day, American Express tried to force a coalition to work. Without clear synergy, brand and product coalitions are destined to fail.

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Identify A Need And Fill It

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Is your radio station filling a need? Many brands that identified the needs of their customers and then served those needs are finding great success.

Do you remember the term, “Bankers’ Hours”?

Not often heard in the lexicon anymore, this referred to a short working day because banks were traditionally open to the public from about 9am-2pm.

The banking industry has gone through enough disruption to minimize the once common usage of the term, “Bankers’ Hours”. Adoption of online banking means you’re not limited to managing your accounts during the typical 9-5 workday. Many banks offer extended hours—some, like Coastal Federal Credit Union, use centralized tellers to offer services 7 days a week into the evening.

As the saying goes, the only constant is change. If you can identify something that needs changing based on negative perception and you fill that need, positive results could be on the horizon.

You know the feeling of calling a technician when your heating or AC goes out? You know, with certainty, that the company is going to try to sell you a new unit.

So, what if the company didn’t sell furnaces or air conditioners?

6 & Fix addresses two issues in the HVAC industry. One, they only service the unit—so they build the perception that they will do everything in their power to fix it with no upsell. Second, if you call before 6pm, they guarantee service the same day. Trust and convenience.

Getting a flu shot can be a hassle, especially if you have to make an appointment with your primary care physician.

Now you can walk into most pharmacies, get the shot (usually without much wait) and even pick up some Benadryl and a bag of gummy bears if you’re so inclined.

CVS took it to the next level with their in-store “Minute Clinic”, offering everything from physicals to B12 injections.

Dollar Shave Club identified a need for cheaper, quality razors.

Uber identified a need for a better taxi.

We work with a great many successful radio stations that utilize research and strategic insights to identify listener needs.

When you know what listeners want and what lane is available, the strategic plan and path to success becomes crystal clear.

Identify a need and fill it.

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Why Toys “R” Us Is Closing

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Tuesdays With Coleman

“Digital photography killed Kodak’s business.”

“Netflix put Blockbuster out of business.”

“Amazon put Toys “R” Us out of business.”

When an iconic brand goes under, the blame game always commences.

The truth is, Amazon didn’t put Toys “R” Us out of business. Neither did Target or Wal-Mart.

Toys “R” Us put Toys “R” Us out of business.

My colleague Warren Kurtzman wrote last week about how essential it is for every brand to have a clearly defined base position. But is that enough?

What’s a better base position than “the photography company”? Or “the movie store”? Or “the toy store”?

Kodak, Blockbuster and Toys “R” Us didn’t just have strong positions in their categories, they owned the dominant positions. The problem is, each of these brands lacked positive brand depth beyond their base positions.

An engineer at Kodak actually invented digital photography. In 1975. Navigating the consumer through the digital space using the brand equity of Kodak moments would have been a perfect and natural complement to its base position. Unfortunately, Kodak couldn’t see beyond its history as a film company, and competitors swooped in.

Blockbuster had an incredible, dominating base position. Unfortunately, it had negative brand depth in the form of late fees, which left it vulnerable. By the time Blockbuster removed late fees, it was too late.

If Blockbuster had entered the DVD-by-mail category or streaming category first, the company would quite likely still be around. Blockbuster had the chance to buy Netflix in the early 2000s for $50 million.  Today Netflix is valued over $100 billion, worth more than every media company that’s not named Disney.

Would Netflix have had that growth under the leadership of Blockbuster? Probably not, and that’s the point.

Netflix started as a DVD-by-mail company, but its base position centered around convenient entertainment delivery. All the moves and innovations Netflix has made, including doubling down on streaming and adding original programming, has been complementary to its base position. Netflix added brand depth.

Amazon started out as an online bookstore that became an online marketplace. Its moves and innovations, including ease of app use, marketing automation, customer service and free two-day delivery, have all supported its base position as an online delivery service.

Toys “R” Us had an enviable base position and an emotional connection to legions of children who wanted to be Toys “R” Us kids.

Where did the emotional connection go?

Although the road would have been challenging, Toys “R” Us could have added brand depth to its base position. It may have been through incredible marketing automation techniques (like Amazon and Starbucks) or hiring an ace social media manager (like Wendy’s). It could have been a research program that let kids test toys. It may have been partnerships with kids’ museums around the country.

Not to say any of those ideas would have definitely worked, but Toys “R” Us needed to try long before Amazon posed a significant threat.

Integrating Babies “R” Us into Toys “R” Us stores was definitely not the answer–it detracted focus from its own brand.

Last year, Toys “R” Us CEO David Brandon said the chain hoped to add playrooms where kids could try out toys and spaces for birthday parties.

Unfortunately, they never got the chance to give them a shot.

When we work with radio stations, we illustrate the base position on our Image Pyramid, but also explain the perils of a misguided Image Pyramid–which is what Kodak, Blockbuster, and Toys “R” Us all ran into.

Coleman Insights Image Pyramid

Clearly define your base position. Once you do, never stop adding brand depth.

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Reducing Friction On Your Radio Station – Part 2

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Tuesdays With Coleman

Where do you go when it’s time to brainstorm and talk shop?

Recently, the Coleman Insights brain trust found itself where it often does on a random Friday afternoon.

Chili’s.

Just before the server took our orders, I noticed our dining musical accompaniment featured the ambient beats of “Jive Talkin’”, which had seamlessly faded into “Got to Be Real” by Cheryl Lynn.

“Huh”, I remarked. “Disco Friday at Chili’s”.

Donna Summer came on after Cheryl. It was indeed Disco Friday.

This led to a conversation my colleague Jessica relayed to me later in the week, during which she was asked, “Does any radio station play disco anymore? And if so, who would?”

As you know, if you’re on the hunt for an all-disco station, it’s gonna be slim pickins on the prairie. That doesn’t mean there aren’t stations that play disco titles. Where would you hear it?

Last week’s blog discussed obstacles to the customer experience, sometimes referred to as friction. I mentioned some of the ways radio stations have traditionally dealt with listeners, and whether some should be re-examined in 2018.

Another kind of friction can occur when expectations of the brand don’t mesh with what the brand is delivering.

Does a little disco make sense on a Classic Hits station? Adult Contemporary? Adult Hits?

The answer could be yes in all those instances, but it could be tough to determine how much to play. Does the market see disco as a fit with your brand? Does it work with the core sounds you’re playing on the station? Or, should it perhaps be relegated to a specialty show or not played at all?

A Classic Rock station’s core may be 60s and 70s Classic Rock. How far this station can deviate from that core differs by station and market. Is the spice 70s and 80s Pop? Can it delve into 90s Alternative Rock?

How much can a Hot Adult Contemporary station rooted in contemporary sounds play in the 80s or 90s? How does it mesh with popularity and brand perception?

Zappos used to sell only shoes. Now, they sell shoes, clothes and accessories. This isn’t unusual for a shoe brand, but if they started selling televisions that may cause some friction.

In 1990 Coors figured they’d get in the water business because, you know, the water in their beer was so good.

Didn’t work.

Cartoon Network was known for showing kid-oriented cartoons but had developed a more adult slate of programming at night. Research guided them to spin their “Adult Swim” into its own network. This allowed each network to stay in its lane. Same with Nickelodeon and Nick at Nite.

Research can help answer questions like these. When brands have a clear understanding of their core proposition, they can better focus on delivering their product and know how to explain it to current and potential customers. They know what lanes to stay in, where there’s room to add spice to the recipe and which spices to add. We use measurements such as Fit and Compatibility to assist our clients in this process.

Aim for a focused, cohesive, consistent product.

Aim to reduce friction.

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Reducing Friction On Your Radio Station – Part 1

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Tuesdays With Coleman

Friction is a hot buzzword in marketing these days. It refers to obstacles in the customer experience.

Can’t find the “submit” button on a form? Friction.

Pop-ups getting in the way on a website? Friction.

Getting charged unexpected fees? Very irritating friction.

Are you adding friction to your radio station?

How much has changed in the ways radio station personnel deal with listeners?

Still asking for caller 9 to win a pair of tickets to the home show, only for the listeners to get a busy signal?

When a listener wins from a town an hour away from your studios, do you tell them you’ll mail the prize or do you tell them they have to pick it up because “that’s the policy”?

Do you make fun of “prize pigs” and tell them they can only win every 60 days, essentially inviting them to listen to another station? Or, do you celebrate people who are actively engaged with your content?

When a listener makes a request, do you tell them, “I’ll see what I can do”, or “I’ll get that right on for you” or “It’s coming up” (even though it isn’t coming up for 15 hours)?

Does your website make it easy to connect with the team, from the General Manager to the jocks? Is there an easy way for them to provide feedback?

Are you engaging with your audience on social media or using it as an advertisement, leaving their comments hanging?

Are you only allowing people within your metro to stream the station (and is that worth it)?

Are you paying attention to the spots and promos on the stream? Is it playing the same PSA over and over again, making it unlistenable?

What do Amazon, Southwest Airlines, Nordstrom, and your radio station have in common?

They are all brands.

What if you treated your listeners the way those brands treat their customers?

Strong brands research, develop a plan from the findings and execute the plan.

Friction is the enemy of plan execution.

Next week in Part 2 of “Reducing Friction on Your Radio Station”, we’ll discuss how radio stations can reduce friction by utilizing research to present a more cohesive product.

 

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Are You Listening To Your Customers?

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Tuesdays With Coleman

“Our way or the highway”.

“Because we’ve always done it that way”.

“We know what we’re doing”.

When one company takes over another, they often bring their own ideas, processes and people.

When Alaska Airlines bought Virgin America in 2016, and subsequently announced they would get rid of the Virgin America brand, I thought it was a terrible move.

On one hand (and a decent argument for the acquisition), Alaska and Virgin America both have solid reputations as customer-focused airlines.

In the annual Airlines Quality Rating report released last year, Virgin America was ranked the third best U.S. airline. Alaska came in #1 overall.

Airline Quality Report (AQR) rankings

On the other hand, there are some potential brand synergy issues.

Alaska is an old airline –founded in 1932. Virgin America is new school, having begun operations in 2007.

Alaska Airlines was generally not known outside of Alaska and the Pacific Northwest until they started expanding in the 2000s. Virgin America flew to both coasts from the outset.

Virgin America seems like a more logical national brand than Alaska. Where is Alaska, exactly?

In October 2017, Virgin founder Richard Branson let loose on the acquisition, saying Alaska Airlines “castrated” Virgin America.

Ouch.

While Alaska Airlines customers clearly like the company, Virgin America customers often evangelize about it on sites like Trip Advisor and Yelp.

Some of the things they love:

  • The leather seats
  • The ability to order (some pretty tasty) food and drinks from your seat
  • Free TV and movies at every seat
  • That purple mood lighting

Last month, we learned some surprising things about the “new” Alaska Airlines.

They’re installing blue mood lighting in all their planes, as well as music that celebrates its west coast roots (how very hipster).

They’re putting in high-speed Wi-Fi, new seats and carpeting, and you’ll get the free shows and movies. The crew gets new uniforms and they’ll open a new hi-tech lounge in the Seattle airport.

Sounds like Alaska Airlines is becoming a lot like Virgin America.

It would have been very easy for Alaska Airlines to force Virgin to adopt their way of doing business. After all, they’ve been doing it successfully. But by listening to Virgin’s customers and employees, they found ways to adopt what was great about Virgin America to make their product better.

Time will tell if getting rid of the Virgin America brand was the right decision. However, this is an example of why soliciting feedback and staying on the pulse of your current (and potential) customers is so crucial. That includes your employees (your internal customers). Understanding strengths and weaknesses of where you stand in the market can help you make informed strategic decisions to constantly improve your brand. At Coleman Insights, we provide deep research analysis for media clients to help them make those decisions.

Whether you run a radio station, airline or any business, never forget to do one important thing.

Listen.

 

Press Releases

Jay Nachlis Adds Marketing Director Duties at Coleman Insights

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RESEARCH TRIANGLE PARK, NC, January 26, 2018 –

Coleman Insights announced today that Jay Nachlis has added the title of Marketing Director at the media research firm. Nachlis was hired as an Associate Consultant in July, 2017. The announcement was made by Warren Kurtzman, president at Coleman Insights.

“Companies succeed when they identify needs and then put people who have the talents and desire to fulfill those needs in place,” said Kurtzman. “Very shortly after Jay joined us last year it became very clear than in addition to the great work he was doing for our clients, his marketing orientation could also be put to great use by our company. That we are placing him in this unique dual role is a testament to what he brings to the table.”

“I’m thrilled to take on heading up marketing initiatives for Coleman Insights, you can visit their homepage and learn about our approach ” said Nachlis. “It’s such a unique opportunity. On the one hand, I get to work with clients and help maximize their success. At the same time, I get to tell the Coleman story and introduce our work to potential clients. That’s pretty special.”

Nachlis will have the newly created title of Associate Consultant/Marketing Director. He has more than two decades of programming and marketing experience, including on-air, music director and program director positions in San Francisco, Buffalo, Detroit, Syracuse, and Raleigh-Durham.

About Coleman Insights

Coleman Insights, headquartered in Research Triangle Park, NC, with offices in Philadelphia and Hamburg, Germany, is a firm that has helped media properties build strong brands and develop great content since 1978. Its clients include hundreds of media properties in North America, South America, Europe and Asia, including those owned by Emmis Communications, iHeartMedia, Entercom Communications Corporation, Univision, Bonneville International Corporation, Hubbard Radio, Newcap Radio, SummitMedia, Bauer Media, Salem Communications, Connoisseur Media, Corporación Radial del Perú, Neuhoff Media, Delmarva Broadcasting Company and Townsquare Media. Additional information about Coleman Insights is available at www.ColemanInsights.com.

 

Click here to download press release

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Google My Radio Station

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Tuesdays With Coleman

When it comes to building, managing, and protecting their brand identities, radio stations rightfully tend to focus on the most important thing—the on-air product. The reputation management services help one manage and get a peek into how many stations are represented in the digital space indicates some areas of opportunity, both in brand management and Search Engine Optimization (SEO).

One easy step stations can take is to simply search for variations of the station name in Google. Use the street name, call letters, and city.  Is the station represented the way it should be?

The title tag is the headline that grabs the attention of the user. Does the title tag show the correct name and the message you want to send? For example, does the title tag indicate your station plays rock music…when you’re a talk station?

A meta description is the text underneath the title tag that follows each search listing. Are you populating this with key features you want the user to remember (music, personalities, contesting), or are you allowing Google to populate this for you?

There are character limits for both the title tag and meta descriptions. Google generally displays the first 50-60 characters of the title tag, and they increased the meta description limit to 300 characters in December, 2017. Exceed the character limit, and you could fall victim to the dreaded “…” before the end of the sentence.

There are free tools available like the Title Tag Preview Tool on Moz.com.  The Yoast SEO plugin for WordPress is one of a number of tools that can help you easily navigate character limits, see previews on search engines, and assist with keyword optimization.

Is your station utilizing Google My Business (GMB)?

If not, you may be at the mercy of what Google shows in that expanded box to the right of the search results. Here, Google often pulls information from Wikipedia (which, as you know, is always correct) and Google Images – which can (and often does) show old station logos. These can include old positioning statements or even pre-format flip station names. Setting up a Google My Business account allows you to control that content, and can help you organically improve your SEO (read: free!). Radio stations have some distinct advantages that can be used to their advantage in GMB.

  • Images. Google likes when businesses upload lots of photos to their GMB page to “personalize” the company. Many businesses struggle with this. “How many photos can we upload of our boring office?”  Radio stations can give listeners a virtual behind-the-scenes tour.  How many pictures do you have of the lobby, studios, concerts, and remotes? How about highlighting pictures of important artists at the station or backstage standing in front of the logo?

These photos can be a great digital “teaser” to get more visitors to your landing page and can help your SEO efforts. 360 degree tours has even become a business in and of itself.

  • Reviews. When a listener utilizes Google Maps for directions to your station, they’ll see reviews from other listeners. How about encouraging listeners to write a review when you see them picking up a prize or when they stop by a remote?

Here’s an example of a florist in Raleigh, NC that is utilizing GMB. Notice how they’ve got reviews and photos to grab your attention, as well as business information. The box on the right is the length of about nine search listings. Many radio stations, without a proper GMB listing, get a brief description of about three or four listings.

Google My Business

Microsoft also has a free product available, called “Bing Places for Business”.   Here you can also set up a free account to better optimize your search results on Bing.

Radio stations are local businesses with large numbers of customers who utilize their product. If other local businesses are successfully using Google My Business, radio stations should as well.

We encourage our client stations to follow the tenets of the Image Pyramid – and to take great care that their brand is represented properly.

There’s no reason why that this shouldn’t be extended to all branding in the digital space.

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Is Your Music Changing With Your Audience?

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Tuesdays With Coleman

After working as a Program Director at radio stations in various formats over the course of 20 years, I was fortunate to be involved in my share of research projects.

Six months ago, I began my new role as an Associate Consultant at Coleman Insights. I work on projects for radio stations in just about every format in markets of various sizes. I’d like to share a few things that have sparked my interest and attention on the research side:

Listener tastes can change in relatively short periods of time.

While I often had access to music research, I was sometimes limited to working with “safe lists” (lists of songs that have done well in the format that should, in theory, be safe to play). There were songs some people felt we didn’t need to test because “they always test well”.

It’s fair to say there are songs that generally do test well just about everywhere. But it’s also fair to say that tastes change and vary by station and market.

One of the first FACT360 Strategic Music Tests I’ve had the opportunity to analyze was for a Country client of ours. In that test, we found that 34 percent of the songs testing in the Top 200 had changed from the previous test. A year earlier, this rate of Title Turnover was 25 percent, meaning the rate of change increased.

Title turnover

The sound of the radio station stayed consistent because this client knows that a music test should not dictate their music strategy. That’s what their perceptual research is for. But, with 34 percent Title Turnover in the Top 200 and 41 percent in the Top 150, this station—by conducting regular library testing—is staying on top of what’s appealing to their listeners in their market and they can play the right songs at the appropriate levels.

History can reveal changing listener tastes when reviewing Billboard Hot 100 charts.

I once had a General Manager tell me to look through Joel Whitburn’s Hot 100 Charts book to look for ideas of songs to play. True story! And yes, you can get ideas of songs to play from year-end charts. On the other hand, if all the #1 year-end songs were on the radio, you’d be hearing “The Way We Were” by Barbra Streisand, “Physical” by Olivia Newton-John and “Macarena” by Los Del Rio more often.

They were the #1 year-end songs from 1974, 1982 and 1996, respectively.

The number one Hot 100 song of 2017 was “Shape of You” by Ed Sheeran. The number two song was “Despacito” by Luis Fonsi & Daddy Yankee (featuring Justin Bieber). Will one, both, or neither stand the test of time? Only time will tell. Music testing will help determine their longevity on your station and in your market.

Artist appeal can change.

When I programmed WBBB/96rock in Raleigh-Durham during the 2000s, Grunge was a consistently strong-testing sound and it wasn’t unusual for us to get at least seven Pearl Jam songs to test. “Even Flow”, “Alive”, “Jeremy”, “Better Man”, “Daughter”, “Black” and “Yellow Ledbetter” were staples in rotation.

In a recent analysis of what songs have stood the test of time based on Spotify airplay, the author makes note of how Pearl Jam has been “lost in time”. While testing results can be completely different at another station in another market, two separate FACT360 studies of a Rock station we work with showed five Pearl Jam songs testing in the Top 200 in 2015. In 2017, there were only two.

2018 brings fresh data, new trends and insights and I can’t wait to dig in! Keep your eye out for a new blog each Tuesday.

 

 

 

 

 

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Radio’s Encouraging 2018 Outlook

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For the first blog post of 2018, our three Senior Consultants—Warren Kurtzman, John Boyne and Sam Milkman—continue their roundtable chat to offer their thoughts on the radio industry and the role of research in 2018.

Coleman Insights Warren Kurtzman Jon Coleman John Boyne Sam Milkman

Senior Consultant Sam Milkman, Founder Jon Coleman, Senior Consultant John Boyne, and President Warren Kurtzman

WARREN KURTZMAN:

I think we need to start a discussion of how the radio industry looks in 2018 by looking at the largest radio companies.

SAM MILKMAN:

There are some very positive signs that started to take shape at the end of 2017.

WARREN KURTZMAN:

Right. Entercom’s acquisition of CBS should make it a stronger player, iHeartMedia continues to deliver strong operating results and will hopefully reach a deal with its bondholders soon. Cumulus should emerge from Chapter 11 as a healthier entity.

JOHN BOYNE:

With the three industry leaders in stronger financial positions, I’m hopeful we’ll see more investment in their products, meaning investments in people and talent, research and marketing. It’s pretty exciting when you see the medium-sized players—the Hubbards, Bonnevilles and Beasleys of the world—expanding their portfolios and investing in their products. They are seeing the results of those investments.

SAM MILKMAN:

That’s good for everyone, from listeners to advertisers to radio industry employees.

WARREN KURTZMAN:

I think radio is really figuring out its place in the digital space now, too.

SAM MILKMAN:

Definitely. The industry is increasingly going to advertisers with multi-platform solutions instead of just selling spots and that’s causing an increasing percentage of station revenue to come from digital.

On the content side, I think it is important that stations remember that all their digital assets are an extension of their brands and should be consistent with what’s coming out of the speakers. Visitors to a station’s website, readers of a blog, someone checking the station’s Facebook page should all clearly understand what the brand stands for.

JOHN BOYNE:

Smart speakers will play an important role this year.

WARREN KURTZMAN:

They will, and that’s another good example of radio embracing new technology. Many stations and companies were very quick to integrate their brands into Alexa Skills, running promos instructing listeners to use it, and are figuring out how they can utilize it to generate more in-home listening.

JOHN BOYNE:

We continue to see pretty big changes going on in the research side as well as a result of technology.

SAM MILKMAN:

Quality control is more important than ever. Technology allows us to measure things differently and recruit research participants differently, but it also opens up a whole bunch of additional factors that require researchers’ attention.

JOHN BOYNE:

Yes, I think quality control should be a consideration for any research company you decide to go with. We need to spend more time explaining this to our clients and the industry as a whole.

WARREN KURTZMAN:

Let’s do a little of that now! It all starts with using high quality sources of sample. It’s amazing how many vendors of questionable sample pitch their wares to research companies every day. We’ll talk about this more in future blogs, but one thing we need to stress is how much using high quality sample impacts the accuracy of the data research companies deliver.

JOHN BOYNE

Another of our biggest ongoing investments is in online security, which helps make sure that the people who participate in our studies are who they say they are. There are things we do to prevent hackers and “professional test takers” from getting into our studies in the first place and then advanced analysis tools we use once we have the data to weed out respondents who don’t meet our quality control criteria.

SAM MILKMAN:

My last thought is that as an industry, to get better, we need to constantly examine pre-conceived notions of what consumers want. We have to always ask if there’s a better way of doing things.

WARREN KURTZMAN:

I agree, Sam. To circle back to where we started this discussion, I believe our ability to do that should be enhanced by the improved health of our customers. It’s really fun to be bullish on the radio industry as we begin 2018; coming to work every day in an environment where there’s investment rather than cutting is dramatically more satisfying!