Measurement

From a company that was founded in 1850: "If you can't measure it, don't do it." Old school thinking?

Copy This: Facebook is Good for Cupcakes

The Los Angeles Times writes about a small cupcake business that leverages Facebook to communicate with their fans.

"Each day on the website, Sprinkles announces a secret word, such as "ganache," or "bunny," or "tropical," or "love," and the first 25 or 50 people to show up at any of its five stores and whisper that word get a free cupcake.

"On Facebook, we can ask our customers what's the next location they want," Nelson said. "What do they think of our next flavor? It's an amazing way to communicate with our fans."

Facebook is not just for friends anymore. The free social networking site -- blocked in many workplaces as a potential time-waster -- is increasingly becoming an inexpensive marketing tool for small businesses."

Think about innovative ways to replicate this to communicate with your customers and gain insight into new products and services.

P.S.
Be sure to look at the comments on the Sprinkles FB page such as:

"Got mine this afternoon in Newport beach! It was sooo GOOD! You need to make this a daily flavor. :-D

p.s. DO NOT ever go to Three Dog Bakery a few doors down. The only customer service I received was from the dog."

*image taken from Sprinkles FB photos page

Social Networks, Raising Money and Awareness for Charities

Still not sure about Facebook or Twitter? Check out this article from the San Francisco Chronicle to see real examples of charities raising money and awareness through social networking.

Are You All on the Same Page?

In my experience, one of the most crucial steps in selling sponsorship is to get internal buy-in. If your team (marketing, licensing, project management, interactive, creative, sales) doesn't believe in your approach, it could be damaging to your ability to reign in and activate a successful sponsorship.

Step One: Make sure you are all on the same page. This will pave the way for success and even innovation.

ING's Sponsorship

Sports Business Journal ran a very insightful story about ING and their sponsorship of the New York City Marathon. Although the sponsorship has been a success on both sides, that may not really matter. Why? Because one of the economic buyers, in this case the new CMO, prefers media purchases to sponsorship and events. In addition, Ewald Kist is no longer the ING Group chairman. Kist was a big marathoner who obviously had a passion for the sport.

This is a classic example of change being constant and the importance of developing as many relationships as possible to create a solid network.

ING to shift strategy for marathons?
"ING has finalized an extension to continue as title sponsor of the New York City Marathon through 2013, but the company’s long-term commitment to its full marathon program is less than certain.

At the conclusion of its new deal with the New York Road Runners, ING, the sport’s largest non-endemic sponsor, will have sponsored the world’s most renowned marathon for a decade, expanding brand awareness and building U.S. business for the Dutch financial services conglomerate.

However, ING’s sponsorship support of the other marathons and half-marathons in the U.S. is less clear. In addition to New York, ING also title sponsors the Miami, Georgia , Bay to Breakers (San Francisco), Philadelphia and Hartford races, and it sponsors Denver and Twin Cities marathons at lower levels. All those sponsorship deals run through next year. Officials at several of those races said that over the past three weeks they have been told that ING will not renew their deals and that organizers are free to recruit a replacement. Additionally, ING has been negotiating with the Competitor Group Inc. about its Rock ‘n’ Roll Marathon Series, which currently represents 13 races, for an omnibus title sponsorship deal, but that, too, is on hold.

“We are committed to all our marathons through 2010,” said Scott Rolf, ING vice president of brand sponsorship. Beyond that, Rolf acknowledged “we had a first right of refusal, and by certain deadlines we had to tell them whether we are in or out. We did not commit either way, which does give them the right to shop their marathons if they wish to. However, we have not said to any of our marathons that we are not renewing.”

But sources within the running and sponsorship community said ING’s exit from its number of American marathons, except New York, was fait accompli and they pointed to several catalysts.

The company’s CMO, Ann Glover, hired in April of 2008, prefers media purchases to sponsorship and event marketing. Support of the marathon sponsorships at the highest levels of the company is also not what it was when ING signed on as the New York City Marathon’s first title sponsor in 2003, and then launched its supporting marathon marketing platform across the U.S. and globally, including races in Amsterdam, The Netherlands, and Brussels, Belgium. At that time, the ING Group chairman was Ewald Kist, a former Dutch Olympic athlete and avid marathoner, who ran in a number of New York City Marathons, including the first one sponsored by his company. Additionally, at a time of distress across many financial services companies, ING is no exception. Last year, the Dutch government gave ING a $13 billion bailout after it suffered its first loss.

Sources said there is also some thinking within ING that given the reach and breadth of the New York City Marathon, that perhaps that deal alone might suffice. Rolf said brand awareness had increased by double digits annually in New York since the sponsorship was signed. However, he said that ING is more recently moving toward using the sponsorship “to make the whole experience better for runners and the running community.”

ING is completing its marathon marketing for this year’s event by building a Runners Nation platform that will be rolled out over the next two years, with social media extensions planned for this year and a greater experiential presence and Runners Nation lounge next year at the Runners Expo during the marathon. Of course, these executions could be used with or without a network of supporting races.

“Runners are planners, and there is a great correlation before planning for a distance run and those inclined to plan their financial future carefully,” Rolf said. “But some objectives we are looking at may change, and until we get our national plans together for 2011, I can’t commit to anything. Running has been a great platform for us and our conversations on running continue on a daily basis.”

ING signed its original deal to sponsor the New York City Marathon in 2003 and had two renewals since. It is believed to be paying $2 million to $3 million per year.

On the property side, ING’s sponsorship has produced benefits beyond revenue.

“Having a title sponsor was a great legitimizer for us,” said Ann Wells Crandall, senior vice president of business development and marketing for New York Road Runners, which owns the event. “ING’s made our sport more relevant to a broader audience, so we are happy to get this finished at time when it isn’t easy to get sponsorships done.”

Pew, 47% of Adult U.S. Internet Users Use Online Social Networks

ClickZ has a piece about the Pew research on social networking:

"Forty-seven percent of adult U.S. Internet users use online social networks, and 19 percent now use Twitter or other status update services, according to research by the Pew Internet and American Life Project." continued here

VIP Event and the Nanny

A few years ago we were hosting an ultra VIP event to cultivate new prospects and retain existing sponsors. This was an event where people had to RSVP and only the person who was invited could attend. The purpose was to prevent the VIP from passing the invitation on to their assistant, which occurred way too often.

The day of the event I received a call from a major prospect telling me that she couldn't attend, but wanted to give the invitation to her nanny and her husband (!). I had to tell her that I was sorry but we just couldn't do that. She had a hard time accepting this and I told her that this was a very intimate event for selected C-Level guests. I then suggested that she give her invitation to someone else in her organization that would benefit from networking with the high-level guests. Well, she just couldn't think of anyone.

I have a feeling that several factors were involved in this decision: 1) She was disconnected with the VIPs and couldn't identify the right person 2) She would have been humiliated to ask a VIP to attend the event at last minute, and 3) She wasn't a strategic thinker and didn't understand how to fully leverage this asset.

Ad Age, Marketers Go for Squeeze Play

There is a great column by Rance Crain in Ad Age that brings more light to Bank of America's thinking around sponsorship. Here is a snip of the column:

"One thing we have learned is that avidity is so critical when it comes to how well a sponsorship works," said Ray Bednar, senior VP-global sponsorship executive at Bank of America, in a discussion with Street & Smith's Sports Business Journal. "So that's leading to great conversions with properties about the fact that winning matters for marketers, too. ... So if winning does matter, properties should be paid more when they win. Conversely, when they don't win, they should get paid less."

He said BofA has started inking variable compensation deals -- pay-for-performance models based not only on winning, but also on the property delivering business. "The bankers I have to go to for budget approval don't really care if we have a suite or a sign. They want to know how much money they're going to make."

Mr. Bednar also said the bank tells sponsorship properties that, for instance, it's going to put their brands inside 1,000 banking centers. "Then they will have X many impressions, which would cost them $2.5 million to buy, so we're going to factor that in as part of the sponsorship price."

The most telling quote is, "The bankers I have to go to for budget approval don't really care if we have a suite or a sign. They want to know how much money they're going to make."

In my conversations with major financial institutions, this has always been the case. Marketing, Advertising, Sponsorship is there to help drive the bottom line so the bankers ask: how will I make money, how will I get new clients, how can I leverage this to interact with my current clients?

It is crucial to think about ways to help your contact sell the opportunity internally. An open conversation with your prospect is the best way to do this.

Your Gala, Their Goals

So you have this huge gala coming up and your CEO wants you to get a sponsor...NOW!

Because companies are looking more closely at their marketing investments and how they are impacting business goals, you may want to (or you may have to) change your strategy.

Think about making the gala a piece of a larger, more innovative package. Extend the opportunity arc of sponsorship out to three years rather than a one time event.

Remember to look at the opportunities through the eyes of your corporate partner. What are their business goals and how can you work together to form a cohesive partnership?

Keep it New

I've spoken with several organizations that seem to be in a rut in terms of new ideas to offer corporate partners. For example, an arts organization hosted a workshop series (that was not very well attended) sponsored by a major financial institution. That sponsor pulled out a few months ago. They said it was because they needed something new and fresh.

Unfortunately the arts organization hasn't come up with a fresh idea so they are now trying to sell the old workshop model to other financial institutions.

Take away: Constantly keep in touch with your corporate sponsors. Be prepared to develop innovative promotional elements to keep the partnership fresh.

BAMbill

This evening I attended Songs of Ascension at BAM. Going through the BAMbill, I noticed how different the messages were from the BAM supporters who had a one-page ad. Most were self serving but some were actually pretty good. Here are a few examples with my grading:

Continental Airlines: D-
Get a meal, not a song and dance.
Still serving free meals at mealtime.
The competition has nothing to show but cutbacks. That's not the case with Continental. We're still providing you with free meals at mealtime. For us, it's all about giving you good service, not dancing around it. For reservations and information go to..."

R/GA: C
A proud supporter of the Brooklyn Academy of Music.

Bank of America: B-
"Performing does more than entertain - it enriches us all.
Those who march to a different drummer share our passion for creativity and out-of-the-box thinking. That's why Bank of America is proud to sponsor BAM and be the presenting sponsor of The Bridge Project."

CRUNCH: A
CRUNCH is a proud partner and neighbor of BAM. We salute the thriving urban arts center for cultivating and celebrating the leading creative voices that shape our community and culture.

Sovereign Bank: A+
Sovereign is proud to support BAM. And, we salute all those involved in keeping the performing and cinema arts alive in this community. Thank you for your hard work and dedication.

Quiz

Listen to people as though you'll be quizzed on it later.

Permanent Pop-up?

Crain's New York reports that The Limited's SoHo pop-up store has done so well that they are considering making it permanent.

I just don't think they will see the same results if they make the pop-up permanent. People are attracted the the pop-up because of the limited (no pun intended) editions, different experiences, buzz and merchandise that can't be found at the "permanent" locations.

Live to Virtual

Last week, Event Marketer wrote about bringing live event attendees into the realm of virtual events. It's a good read and helpful when thinking about the 360 experience.

I would also add American Express, OPEN Forum as a great model to replicate. They created a platform that fosters communication, scales live events, engages users and hosts valuable content. In addition, they have great resources just for AmEx card members. Which, by the way allows them to collect data, gain and retain customers and differentiate themselves in a crowded environment.

Cause Marketing and Self Magazine

WWD ran this blurb today about the Self magazine study on cause marketing.

"Self magazine commissioned a study on cause marketing several years ago as a response to the dozens of calls it was fielding from marketers, asking how they could get involved in philanthropy. Vice president and publisher Kim Kelleher visited more than 100 marketers after that first study was released and now she’s on the road again, with more research to share on the subject. “This space has exploded in the past 10 years,” Kelleher said. “I’ve already talked to over 40 companies on the next wave of research.” Kelleher said firms leading the way in the space include Procter & Gamble, Burt’s Bees, Estée Lauder, Avon, Paul Mitchell and Neutrogena. “Consumers are very afraid that companies will walk away now [because of the downturn],” she said. “Consumers don’t have enough money so they are looking for companies to fill that void. Engage with your customers and let them know you’re still involved. They will come back in full when things get better.”

According to the study, the causes that attract the widest followings are related to medical research and diseases, child welfare, education and literacy, animal welfare and poverty. Kelleher noted the new findings are also opening doors for the magazine, and she is meeting with advertisers now that had previously said no to a traditional meeting."

Several interesting points to think about:

- Marketers were calling the magazine to get involved in philanthropy.

- Philanthropy is a vehicle for customer engagement.

- This study is helping Self magazine to land more meetings with advertisers. It was brilliant of Self to 1) see this opportunity, and 2) use the study to differentiate themselves with advertisers.

Brooklyn Museum Deal of the Day

Check out this interesting promotion that the Brooklyn Museum has going for one day only.

Living Hand to Mouth

An executive at a major New York institution said that arts organizations "have been living hand to mouth. This is the way it has been and this is the way it will always be."

Hmmm, I don't call that a good business model at all.

ad:tech New York

Going to ad:tech New York this year. Looks like a great agenda.

Luxury and China

Keep an eye on China. The WSJ Wealth Report blog posted a summary of the Bain & Co luxury forecast here and then WSJ wrote a piece about the report here.

Toolkits and Tricks

I know that the word sponsorship ranges in meaning from events, activities, products and online ads to partnerships, long-term relationships and so on. For years we've had access to toolkits, out-of-box packages and tricks to win sponsors.

What our industry needs now is to start more conversations around what we should be doing differently to navigate the new economy. We need to listen to what prospects are looking for today: more bang for the buck, ownership, deep emotional connections, return on business objectives, ways to differentiate, interactive platforms for thought leadership, money can't buy experiences and interesting ways to leverage social-media.

SBJ’s Sports Sponsorship Symposium

In September, Promomagazine.com reported on the Sports Business Journal's symposium and this quote from Bank of America caught my eye:

“The biggest mandate we have right now is ‘We have a lot of stuff, let’s get more out of it’,” said Ray Bednar, senior vice president and global sponsorship marketing executive for Bank of America.

Bank of America currently maintains sponsorships with MLB, the National Football League and the Olympics."

Sounds about right, as they did ask the USOC to come up with ways to provide more bang for their $12 million dollar sponsorship and then pulled out because of "the inability to generate sufficient business results."

Focus

When talking about your sponsorship opportunity, it's important to be clear and focused. People don't have time to read a long letter or proposal to try to figure out what you are offering.

When I wrote about The Allstate Foundation's Click to Empower Campaign, I asked the organizations to sum up in ten words why people should vote for them. One of the best responses was from Charity Cars (who also won the $100,000 grant): "Cars save lives by enabling survivors to escape their abusers." The response is clear, focused and compelling. In addition, it's easy to remember and easy for people to spread the message.

Teacher, Boss or Empowerer

Are you a teacher, boss or empowerer? Do you get the right idea across to others? Think about it.

Copy This: Live Video Webcast with Vanguard CEO

As a customer of Vanguard, I just received an invitation to participate in a live video webcast with Bill NcNabb, the CEO. The webcast is in the evening and you must register in advance, which is fair.

Why not copy this and facilitate a conversation between your CEO and your customers? It could be quite a valuable learning experience.

Role Play

Before you go on a call or into a sales meeting, do you role play? If not, you should. It's an excellent way to get your team prepared and on the same page.

Clear Understanding

It's great to be flexible in your thinking when meeting with prospective sponsors. However, don't go into a meeting without clear ideas. Because you know your property inside and out, it is up to you to paint a vivid picture of what the partnership could look like.

Always remember, if the prospect doesn't understand what you are offering, they won't buy.

Daily Candy and Urban Daddy

Daily Candy and Urban Daddy pride themselves on delivering the "latest and greatest" and the "latest piece of need-to-know" around town. I subscribe to both. Today, they both posted a piece on the Highlands, with the same promo picture. Good for the Highlands PR, bad for Daily Candy and Urban Daddy. In my opinion, this just diluted both of their "insider" cred.

Break Out

Sometimes it's good to get out of your known industry (shell) and learn what other industries are doing. It just may spark some great thinking.

Conversations First

Never start with a fixed proposal. You will surely end the conversation.

When approaching prospective sponsors, start with a conversation. Then, if all goes well, you will craft an innovative and mutually beneficial proposal together.

Big Ad Gig Winner

So, they announced the winner of the Big Ad Gig. What do you think?

Art & Innovation, New Revenue Stream

I was thinking more about what George Lucas said about art driving innovation. Could this be an opportunity for arts organizations to form exchange programs or create "innovation" courses, exchange programs or tours for corporations?

It just may be a new source of revenue for arts organizations, both large and small. I would start with agencies since we know that they are always looking for new and fresh ideas.

Art Drives Innovation

There is a great posting on Business Week about what George Lucas said about art and innovation at the World Business Forum in New York:

"George Lucas, the film-maker behind such hits as the Star Wars and Indiana Jones franchises, shared some uplifting thoughts on artistic passion and technological invention at the World Business Forum in New York on October 6. Tracing his career to its beginnings, he modestly said that it was the pursuit of art, not profit or invention, which fueled the many innovations he can be credited for, from early movie-merchandise strategies to the realistic computer-generated effects pioneered by Lucasfilm and featured in movies such as Jurassic Park.

Art is about communicating emotion via technology, he said. So it fuels creative thinking not only in terms of content, but also execution. It’s been the case since early cave paintings and Michelangelo’s Sistine Chapel frescoes. To achieve stunning effects, an artist often needs to push the boundaries of current technologies, and then discover a new way of doing things. And that very artistic process can lead to tech that can be highly monetized; in other words, innovation.

The takeaway from Lucas’ talk at the World Business Forum? Let employees be creative first to appeal to your audience’s emotions (and “audience” can apply to customers, of course) when devising new products, then worry about how and if a potential invention will be profitable. It worked for Lucas, clearly. He said he was always thinking of the emotional impact of his work since the beginning of his career, and not how he was going to make millions or build an entertainment empire. Perhaps corporations could learn from artists like Lucas, just as they have been increasingly been learning from designers such as IDEO’s Tim Brown. Call it art-thinking."

I like what Mr. Lucas says here, "To achieve stunning effects, an artist often needs to push the boundaries of current technologies, and then discover a new way of doing things."

We can also apply the pushing of the boundaries of current technology to the art of marketing and sponsorship to find new ways to engage corporate partners and audiences.

At Estee Lauder, Makeovers and Social Media

According to Ad Age, Estee Lauder is kicking-off a social media campaign on October 16, 2009 where they will be "offering free makeovers and photo shoots at its department-store cosmetics counters coast-to-coast to produce shots women can use for their online profiles."

It seems to have all the components for a successful campaign!

"Discovery Skills" and Innovation

HBR has a good Q&A blog post about the way innovators think. Check it out here.

On a separate note, I noticed that the Creativity at Work package is sponsored by Cargill. If you click on the logo, it links to Cargill's home page. They missed a huge opportunity to engage the HBR readers.

Since this is a series, I would have thought that Cargill would have at least created a specific landing page for those who click on their logo. They have a lot of great content and it would have made for a better experience for the HBR reader.

Waiting for a Company to Realize an Opportunity?

Last week at the Crain's conference, I had the pleasure of listening to a wonderful panel (The Major Institutions: How Size Matters) that included: Peter Gold, General Manager of the Metropolitan Opera; Sharon Gersten Luckman, Executive Director of the Alvin Ailey Dance Foundation; Zarin Mehta, President and Executive Director of the New York Philharmonic and George Steel, General Manager of the New York City Opera.

After the panel answered questions from the moderator, they opened it up to the audience. One of the first questions was about corporate sponsorship. It was interesting to hear the different viewpoints and words used to describe corporate relationships. For example, one panelist used the word "underwriting" to talk about corporate relationships (which indicates to me that they are short sided and only thinking about events), and another mentioned that sponsors are asking for more "bang for the buck" but giving less money to make that happen.

The most insightful comment was made by Peter Gold of the Metropolitan Opera regarding the The Met: Live in HD series which is in its fourth season and now sponsored by Bloomberg. Basically, when HD launched, the Met knew it would be attractive to sponsors. However, they did not land a sponsor immediately so they were "waiting for a company to realize the opportunity" around the series.

I'm sure that the Met wasn't idly waiting for a company to come around, but this made me think about the sales strategies (or lack of) around sponsorship.

Often, sponsorship is treated like a commodity, especially when we think that sponsorship "sales" is about sending out a list of benefits/levels then waiting for a corporation to call.

The world has changed and it is no longer acceptable to list sponsorship benefits and wait for a company to realize the opportunity. We need to be proactive and understand that sponsorship deals (not underwriting, not an event, not an online "sponsorship" ad) are often very complex with long sales cycles and many decision makers.

Do you have the right pieces in place for success? How about the following:

- a system that helps you to set priorities
- an understanding of the sales cycle and when to let a prospect go
- a solid pipeline of prospects. Know the company's mission, size, locations, products, financial performance, customer segments, leadership, competitors, etc
- a knowledge of interactive marketing/marketing and sales with an emphasis on consultative selling
- a deep understanding of your offering
- an ability to come up innovative (mutually beneficial) solutions

PR Metrics

Ad Age has a good article about PR metrics and how they've evolved over the past year. Take a look at the article here and think of how it relates to your conversations around sponsorship offerings, measurement and ROI.

Key points:

- Success is more focused on demonstrating the impact on business, lead generation and sales.

- Integration is key. Companies are looking at ways in which all channels (print, online, social media, events) influence and impact outcomes.

- We must move away from measuring just impressions and look for innovative ways to deepen and extend engagement with customers.

Customer Acquisition and Retention in 2010

According to a survey by Unisfair, Marketers’ top priorities for 2010 will be customer acquisition and retention, followed by thought leadership.

Go to eMarketer to see how the survey respondents plan to use social media tools such as Facebook and LinkedIn to acquire/retain customers.

Games, awards, surveys and donations may help with acquisitions, but how can you help your corporate partners retain and engage those fans/customers?

Nike Back Your Block Campaign Winners Announced 10/10

Winners of the Nike Back Your Block Campaign will be announced on October 10, 2009 on Facebook. The voting closed on September 16, 2009 and Nike only posted twice on Facebook since that time. I think they could have done a better job to keep the momentum and communication going.

One of the most common flaws of brands who use this sort of platform to build buzz and a fan base is to not engage fans constantly. I would suggest that Nike communicate at least once a day until the final announcement.

It will be interesting to see if and how Nike extends this campaign to communicate with those who participated. They are an amazing brand so I'm hoping for some innovative things from them.