skip to main |
skip to sidebar
By Katie Lombardi
Thank you for suing us.You just read the first line in Taco Bell’s rebuttal to a class action lawsuit that claims the fast food chain doesn’t use real beef in its tacos and burritos. Last Friday, Taco Bell hit the public with a massive ad campaign to make it clear to the people who are suing them: "Not only is your claim a lie, but guess what? We are going to sue you!"
Public relations professionals know that in most cases it’s better to respond than to say nothing at all. Taco Bell’s tongue-in-cheek ad will certainly grab the attention of consumers but will it convince them that the Bell's seasoned beef is really 88% beef and 12% secret recipe? I am not convinced. However, I don’t typically eat at Taco Bell so the lawsuit and its allegations aren’t changing my behavior. Taco Bell probably shouldn’t worry about consumers like me anyway. But for those customers who are actually raising an eyebrow at the idea that its meat filling is a mixture of oats, ground meat, and whatever else is thrown in there, it’s time to call in an expert. Edelman just released the results from its 2011 Edelman Trust Barometer, which show Americans don’t want to hear from “a guy like me” (think Jarred from Subway). They want to hear from a trusted expert. Americans want a response from the CEO of a company or someone who has substantial credentials and authority.My advice to Taco Bell: Hire a team of food scientists to test and confirm that your beef is really beef. And if you can’t back up your claim then it’s time to be more transparent with the public. It’s difficult to sound believable when you’re the second guy to scream foul. It’s turning into a “he said, she said” game and for people who do care, Taco Bell should do more than just run a snarky ad campaign. But again I have to ask, do people really care and why? You’re eating Taco Bell, not buying organic groceries at Whole Foods. Are you really that surprised?Katie Lombardi is a student in the Masters in Integrated Marketing Communications program at Northwestern University’s Medill School and can be reached at katherinelombardi2011@u.northwestern.edu.
By Katie LombardiIf customer satisfaction is the key to businesses increasing profits how is it that some companies are missing the boat?
It seems highly intuitive that if you understand your customer – and I mean know your customer – you will not only increase sales, but repeat sales. It costs less to market to a customer you already have but much more to acquire a new customer. There’s a direct link to higher customer retention, increased average spend, higher margins, and lower marketing costs when customer satisfaction is important to a company. But for every business doing it right, there are handfuls of others failing to see the light. So what is keeping businesses from taking a more customer-centric focus?
1. Maybe they think they are.
Companies might think they know who they’re marketing to; they often think they know us. Take Johnson and Johnson, for example. The company launched a TV ad campaign for Motrin in 2008 that was aimed at “moms who wear their babies,” referencing the growing popularity of baby carriers and the pain associated with them. The “Motrin Mom-alogue” created a nasty backlash and outraged moms vented their anger online. Johnson and Johnson found itself quickly pulling the commercial. (Check out this funny spoof. It actually got more views than the original Motrin ad.)
2. It’s expensive.
You don’t get to know your customer overnight. It takes money and resources and a long-term approach. Companies willing to make the investment – engaging in qualitative research studies and focus groups, providing online forums, monitoring social media, and encouraging customer feedback both good and bad—seem to be on the right track. Quantitative data is important but it also depends on what data you have, how you got it, and how you want to use it – all things that need to be taken into consideration before you do the research.
3. Right solution, wrong implementation.
Customer Relationship Management (CRM) solutions are one way that companies can better manage their interactions with customers, both new and existing. CRM software can be the backbone for many sales and marketing teams but just because you have it doesn’t mean you’re using it correctly.
In the technology industry, for example, a sales team should use its CRM software as a tool for recording and uncovering sales, upcoming IT projects, potential issues, key contacts, purchasing timeframes and any other insights that can lead the sales team to better position IT solutions to their customers. There are some companies out there that are simply using their CRM solutions as an online rolodex, and that’s not getting to know your customer – unless you just need their telephone number.
4. You have the wrong customer. A recent article in Time magazine, "The Rise of the Sheconomy," revealed a shift in focus for marketers in seemingly male-dominated categories like electronics and car tires. Why the shift? According to the article, women make 85% of the buying decisions in their household. Not only are more women climbing the corporate ladder and outpacing their male counterparts in the education arena, they are making money and spending it! Women are increasing their buying power – 45% of money spent on consumer electronics and 58% of money spent online came from the female market.
Studies have shown that women are also more loyal customers – win them over and you have a potential life-long customer whereas men are harder to retain. Companies like Best Buy and Midas International have started to focus their efforts on marketing to women after discovering that a lot of women were buying tires, electronics, or other products typically marketed towards men. Understand the female mind, capture her heart, and increase your sales and customer retention.
By Katie Lombardi
