Mad 4 Blog

Every fashionista worth her Balenciaga bag knows that the September issue of her glossy magazine is the most critical issue of the year, complementing the hype from New York City’s Fashion Week with cold-weather ensemble suggestions featuring the newest fall styles. The September issue traditionally expands from approximately 300 pages to somewhere over 700 pages (or 840 pages, according to the most recent record set by Vogue in 2007). Naturally, the September issue of any fashion magazine is the one that sells the most copies, and correspondingly sells the most interior magazine ads. It is these print ads which largely finance the continued production of the magazine.

Which is exactly why it’s such a grave concern that the past two years have shown a steady decline in magazine ad sales, which culminated in the dramatically dangerous dip in sales this year. Many magazines showed up to a 22% decrease in ad sales from recent years, including a loss in the double digits for some of the most well-known fashion and beauty magazines. This year, Anna Wintour oversaw a quick-fix brainstorm where funds were spent encasing the slimmer-than-usual September issue of Vogue in wrappings with a chic leather handle and buckle-clasp, proclaiming, “CAUTION (still) HEAVY.” Tongue-in-cheek, it was a clever sales gimmick–but only a temporary band-aid on the much more permanent (and far more solemn) problem of decreased ad sales.

And it’s not just fashion magazines that are suffering. From National Geographic to Scientific American, all magazines are feeling the drought. In fact, all print ad sales have dropped an average of 30% since last year. In an economy where newspapers across the country are closing down on a regular basis, the magazine industry must be apprehensive about its own future. Advertising experts caution that magazines should take heed of their recent losses. Magazines are advised not to cut their losses and bury their heads in the sand, blaming the economy and waiting for the slump to pass. One of the more likely culprits is the world’s increased wariness about its investments; caution has moved investors to examine new and alternative advertising options in pursuit of more aggressive and traceable ROI–such as web and mobile marketing.

This may also be why digital revenue for magazines is on the rise, with income from non-static sources doubling between 2006 and 2007 alone (presumably in direct proportion to a greater overall effort by magazines to modernize). And it’s advised that magazines continue seeking cutting-edge alternatives for their marketing strategies. Through interactive marketing, magazines will be able to rebuild relationships with their audiences in a new, modern way-before the chance is lost for good. In the past year, newsstand magazine sales have decreased by an estimated 12%. Better-than-ever subscription costs simply haven’t been enough to salvage proceeds in this economy. With competition from online blogs, newsletters and, well, digital magazines, it seems like print magazines are going to have to sharply redirect their focus and funds if they hope to survive.

Hopefully, they will embrace digital solutions and come up with smart, strategic plans to save print magazines from extinction. Because tech-savvy as readers are today, it’s still just not as easy or rewarding to flip through a laptop from a cabana chair on the beach.

If you know anything about Zappos then you know that it’s a successful online retailer that built its brand not only by selling a great assortment of footwear, but by delivering an exceptional customer experience. Perhaps that’s why Amazon paid so much leather to buy them. Zappos proved that if you deliver winning customer service you get back loyal customers who spread the love about your company. So then, why are retailers so reluctant to spend money to recruit better employees, provide ongoing training, and delivering great customer service at the expense of paid media and other marketing initiatives?

If you listen to Pete Blackshaw, Nielsen VP and author of “Satisfied Customers Tell Three Friends, Angry Customers Tell 3000,” it’s the failure of retailers in deeply understanding emotional psychology. That’s probably true. But I also think that C-suite executives living in the lap of luxury are so far removed from the “real” world that they have forgotten what it’s like to walk into a store as an “average customer” and sense how little their own stores offer in the way of service. Walk into Sports Authority and try to buy a pair of athletic shoes.
No one is there to help you find your size among a wall of boxes. (Chances are, they don’t even have your size in stock) Nor will a store associate try to locate it from another store, or order it for you and have it shipped. You’re much better off buying from them online and skip the expectation of in-store customer service altogether. Which is precisely what many retailers today are pushing their customers to do.

Not so at Apple. I have had nothing but great things to say about them to dozens of friends and colleagues. Why? Exceptional customer service. The staff is motivated and interested. They’re knowledgeable and accommodating. And they surprise and delight customers at every turn. From the Genius Bar in the store to their “expert” online. In fact, just a month ago, I went to their store because my 2-year old battery was shutting down at 14% remaining capacity.
The tech gave me a new battery…free!

Of course, good customer service extends beyond brick n’ mortar to a merchant’s online store, as well. Take Best Buy for instance. I recently purchased a 46-inch Toshiba at bestbuy.com and 3 days later saw a competitor  with a much lower price. So I contacted bestbuy.com and was told that the Best Buy Price Guarantee was only valid on purchases made at the store, not online. What? You’ve got to be kidding me? I’m not entitled to a “store policy” because I purchased  the item at your online store?  What’s more, the price guarantee is only valid if you find a lower price at Best Buy, not a competitor’s. Here’s the language of their policy: “The BestBuy.com Price Match Guarantee does not apply to other retailers or other websites. It also does not apply to Best Buy Retail Stores or BestBuy.com.” Shame on you Best Buy. You have lost a customer forever!

It’s instances like these that make me love Apple even more. But the real question is:  Does exceptional customer service cost so much that other retailers can’t replicate it and still earn a decent profit?  Why can’t Office Depot do it? Why can’t Macy’s do it? Why can’t Walgreens do it? Why can’t Best Buy do it?

Blackshaw thinks customer service is a competitive advantage. I couldn’t agree more. But I think retailers, especially the brick n’ mortar stores, need to get much better at this.  I fear, though, as the recessionary pressures continue to weight heavy on retailers like Best Buy, even Nordstrom, you may even begin to see these great customer service models begin to unravel.

The target audience is what drives the marketing campaign into prosperity or destruction.  They can either shell out the cash for a drug prescription, or throw it out an open window because of faulty marketing.  The main question the consumer asks is “So, what do I get out of this?” Well that’s elementary my dear marketer.

Examples or stories, like patient testimonials, scream credibility to the consumer. Using the experience of an actual customer in your message shows that other people have experienced your company’s services and have positive feedback, therefore enhancing the organization’s credibility.  Focus on the benefits of what the organization provides and not their features.  In other words reveal what the customer will receive not what you offer.

Healthcare providers who have a longstanding career in healthcare communicate longevity in their heritage.  This tells potential patients that they can rely on them for the long haul.  Healthcare has a plethora of long words, with infinite syllables, and meanings.  Be concise and clear to harbor a large audience.  Create messages around the lifestyle of your audience.  If your hospital is a multi hospital system, explain it in a way that includes your audience like ‘here in metropolitan Chicago.” This encompasses them in the big picture.  Your hospital’s mission and values are important.  Highlight what employees are doing to implement hospital-wide goals.  So what’s in it for the audience? Whatever they desire.