Nonprofits Should Sell Competence

We all use stereotypes or broad assumptions to help us predict behavior in demographic categories and groups.  I think we can all agree that stereotypes are, in general, bad.  Yet we still do it.  According to research, one effect of stereotyping is giving nonprofits a very bad name.

In the Journal of Consumer Research, in a paper titled, “Non-Profits Are Seen as Warm and For-Profits as Competent: Firm Stereotypes Matter,” the researchers paint a bleak picture all nonprofits should take into consideration when crafting grants, proposals, case statements and fundraising presentations.  What the researchers found was that the stereotypical view is that nonprofits are “warm, generous and caring organizations.”  All of those are nice attributes and understandable for nonprofits.   However, the research also found that nonprofits are viewed as lacking  ”the competence to produce high-quality goods or services and run financially sound businesses.”  For-profits were viewed as “competent” in that area.

What this means is that in your next grant or proposal, there should be a clear plan for follow-through, reporting, fiduciary responsibility and quality controls.   I’ve noted that some nonprofits are receiving ISO certification to help counter this particular stereotype.

You can’t assume people know you run the business side of your organization well.  In fact, according to the research, you can assume that the there may be a “baseless misperception of incompetence.”   You will need a strong presentation that includes proof-of-performance examples to change the stereotype and build credibility in the business side of your organization.

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I’m at “Peace” Being a Boomer

I’m a boomer and proud of it.  However, I just read a piece of research from the Stanford Graduate School of Business that surprised me–but it does explain why I like listening to spa-inspired, Native American flute music now.

What researchers Sep Kamvar, Cassie Mogilner and Jennifer Aaker found was that “younger people are more likely to associate happiness with excitement, older people are more likely to associate happiness with feeling peaceful.”   I was watching a casino ad the other night that first was ‘screaming’ throughout the commercial, and in the titillating copy the word “excitement” was used several times.  Considering how many ‘boomers’ go to casinos, I thought the ad was way off target.  This research indicates that boomers view happiness in terms of being low stress, a good use of time, carefree and relaxing.  (Maybe boomers don’t want to be happy in a casino.)  A phrase a boomer would not say is, “I am so stressed, but loving life.”   

According to Nielsen, boomers comprise 1/3 of TV viewers, online users, social media users and Twitter users; watch the most video per day (more than 9 hours), and dominate all packaged-goods categories .  Nielsen’s research show that this demo will be an active consumers much longer than we all expect.  Companies, and especially non-boomer marketing managers, designers and producers, will need to relearn how to successfully message to this demographic group.   

Another, more troublesome surprise, is the fact that Nielsen estimates only 5% of advertising dollars are targeted toward boomers.   Maybe part of the economic slowdown is that business (marketing, service providers and product engineers) took its collective eye off the largest, most affluent and most powerful consumer group.  Next time you see someone with an iPad, ask about their age.

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Why Europe Hates U.S. Marketing

When we were in the Czech Republic this year, I noticed just how good U.S. companies are at marketing.

I realized this as  we were wandering about a  touristy area of Prague.  At one corner, I was handed this coupon.  It was the only coupon I was handed the entire trip.  There is nothing breakthrough about a coupon, other than the fact that no other business was doing it.

It had a clear map, even to non-Czech-speaking people, consistent colors and logo usage, and a pretty good offer (at least I think it did). 

U.S. companies abroad utilize marketing basics that really stand out when few are following the basics.  And I think that is what makes many Europeans, and people who visit, disappointed to see U.S. companies settle into an area.  Some call it commercialism, I call it good branding.  And when you’re thirsty, it is nice to see a familiar face in the crowd.   According to the Wall Street Journal, Coca-Cola gave away red plastic encased TVs and tables with the Coke logos to bars in Johannesburg.  Coke World Cup flags were given out to fans.  Coke’s Celebration mix hit No. 1 on Apple’s iTunes store in 15 countries.

There was a billboard campaign that caught my eye which featured clear benefits even if you didn’t understand the language.  I asked a Czech native about the advertising and she said that an American advertising agency was hired by the party to help “sell.”  Well, it did sell.  And I can see how some power photography, bold graphics, benefit selling, bulleted copy and consistent look and feel really work in the US and abroad.

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Smile, You’re on a Domino’s Pizza Shoot

Watch this clip from Domino’s about photographing a pizza.  It is 3 minutes and a fun clip.   

It is a great way to show some of the lengths we take to make products look good in photography.  Really, it is no different than the primping you might do before the family Christmas card photo shoot.  You want to look your best.   (Do families really wear the same color clothing when they are out on the street?)

The Domino’s approach is great.  I love the honesty and behind-the-scenes peek it gives the consumer.  I’m laughing, because I’ve been there looking for that right piece of garnish.  I also know that if you don’t  shoot the pizza right out of the oven, the cheese turns translucent as it sits out.  It looks old.  You may eat day-old pizza out of the fridge, but it would not sell in a photograph.

So what can we learn from this?  You still need to primp, but we all go a bit too far from time to time.   You could try the Domino’s approach,  but make sure it fits your brand personality.  I’m sure the pizza chef in the Domino’s ad made sure his clothing was spotlessly clean (unlike most pizza chefs I’ve seen) and I bet they put on makeup to hide the shine on his forehead.

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BP is Now Darryl

Every brand has a brand personality.  Just like people, brands can be boring, exciting, interesting, fun.  BP realized it didn’t have a much of personality—or should I say, the CEO didn’t have much of a personality.

Meet Darryl.  He volunteered for this assignment (builds credibility) and he says, “I’m responsible for overseeing BP’s claims process.”  The ad is warm, honest and not over-hyped.  You like Darryl and you trust him.   

We have a need in all of us to anthropomorphize (humanize) inanimate objects to facilitate interaction or understanding.  The weather seems less of a threat if we call it ”Mother Nature.”   We name our cars and coax our computers and talk to them like people.

If you only advertise transactions and price, you cannot expect people to think more about you than they do about a light bulb.  If you don’t ever communicate that personality, then you are the wallflower of brands.  Pillsbury isn’t much without its doughboy.  It helps define the brand character in human ways. 

People want to have a relationship with your brand.  If you don’t have a likeable personality, you will never be able to participate in all that media—and especially social media—has to offer.  Why would you ever “friend” someone (or something) you don’t really like?  What kind of person is your brand?  And, would people like that person?

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Fast Facts on Tech

Have you ever heard someone say they don’t have time to watch TV and then tell you all about the show,movie or game they just watched?  Having worked in TV for nearly 15 years, it was a common occurrence.  People have lots of ideas about technology and TV, but here are some facts from Nielsen to dispel a few myths floating around:

• 63.5% of US households enjoy high-speed broadband service
• 25% of households use ‘smartphones’
• People watch TV and use the Internet at the same time an average of 3 hours and 41 minutues per month
• Adults 18-24 watch 26 hours and 45 minutes of traditional TV per week; adults 50-64 watch 44 hours and 20 minutes per week ; teens 12-17 watch 24 hours and 28 minutes of traditional TV per week.
• Adults 18-24 use the Internet nearly 3 hours per week; adults 50-64 use it 5 hours per week; and teens use it 1 hour per week.
• Half of US households have high-definition television.
• Digital video recorders have a penetration of 36%
• Time-shifted TV accounts for 1 hour and 20 minutes per week for teens 12-17; 1 hour and 31 minutes for  adults 18-24; and 2 hours and 30 minutes for adults 50-64.

Watching video on the Internet was relatively low compared with watching traditional TV, however it is rapidly growing.  Watching TV while using the Internet (a little multitasking) was up nearly 10% from last year. 

It is obvious the convergence is coming, but put the technology aside.  Content is the key.  If there is nothing of value to watch, it doesn’t matter the medium.  The medium is not the message, the content is.

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100th Blog

This is my 100th blog.  I’m not ready to introduce myself as a “blogger,” but that’s what I am.  It is estimated that 30 million people blog.  That seems high to me.  I believe the statistics don’t take into account all the people who start blogging and then stop.  Blogging is like dieting:  It is easy to start, but hard to stay with it. 

In a recent survey reported on Blogcount.com, 30% of people read a blog.  That fact makes sense to me.  A lot of people do read blogs, but 70% don’t—a number to remember and keep bloggers humble.  Blogging is not American Idol.  Nearly 60% of people think bloggers are as credible as newspapers.  Until bloggers are sued on a regular basis, I think you need to keep a skeptical eye toward anything you read from the blogosphere.

Should you blog for your business or organization?  Yes.  It is a great way to build credibility and expertise.  The hard part is that the blog world is a hungry beast, and it needs to be fed every week.  Also, it takes patience to build an audience, unless you are some kind of superstar.  So go for it, or hire a firm to help you do it.  Either way, it’s time to eat some virtual cake.

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Cool Direct Mail Misses Mark

I received a very cool direct mail piece the other day at work.  It is plastic with a see-through area.  As you can see on the photo, the top corner breaks off and is an extremely solid business card.  It is all really, really neat and well done, but it didn’t work at all.

Why?  It is from Farmers Business Insurance.  And, it is targeted to restaurants.  Now, we are an advertising and consulting business.  And before we were in the current location, it was an eye doctor office for years.

The key is that even though we send direct mailings or pump out hundreds of e-mails, there is a percentage (probably in the range of 10%) that just never makes it to the intended target audience.  In e-mail marketing, it can be up to 25% of sent e-mails are bounced out or undeliverable.  

Undeliverable emails are not necessarily invalid addresses.  They can be rejected for a host of reasons including bad addresses.  Don’t delete your reject e-mail addresses too soon from your list because it may have been a word in your subject line that got your e-mail bounced.

The best bet is to use highly reputable list companies for direct mail, and use e-mail lists you have built over time.   You will always have some waste in any large saturation direct-marketing effort.  However, with follow-up you can begin to better develop your lists—I’m still waiting for my follow-up call about the restaurant insurance.   I want to be sure to thank them for sending a blog idea in the mail.

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Baby Websites

One of my co-workers announced she is having a baby.  Nothing earth-shattering about that.  It happens about 11,000 times each and every day in the U.S.

What is unusual is that she announced the new arrival by having people visit her website.  It is a simple approach to an age-old question, “How do I let people know we are pregnant?”

Mini- or micro-websites provide a real opportunity to get out key, focused information about all kinds of events, social issues and announcements.   They also provide a slick way for people to forward the surprise announcement along without giving away the punchline.

Too many times companies and organizations will send you to their large, complicated websites for “more information.”  It’s like going to the mall to find a special T-shirt—you know it is there, but you may spend hours trying to find it.    On many websites, you just can’t find the information you were looking for, or you become frustrated it’s not more apparent and leave the site before you find what you were after.

The micro-site approach allows you to be targeted and focused in your message.  The smaller size makes you more succinct and searcher-sympathetic.   Babies are a great way to start people, and baby-websites (or micro-websites) are a great way to start communicating.

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Boomers Don’t See the Same

Why are designers of products, websites, product labels and print materials ignoring the needs of Boomers?  Boomers are powerful:

• Boomers rule: Nearly 50% of the US population will be aged 50 and older by 2015.
• Boomers buy a lot of stuff:  50% of discretionary spending power is controlled by Boomers.
• Boomers are in control:  80 % of all personal financial assets are controlled by Baby Boomers.

If you are a true marketer, you are finding a way to target this giant market.  So why are so many ignoring boomers?  We all talk about ‘user experience’ when it comes to websites, e-newsletters and e-mails.  Yet few deliver.  Just look at the font size we use.

There is even a group called BLIND (Boomer Legibility Initiative for a New Decade) http://www.linkedin.com/groups?home=&gid=3075173 to help increase font size on average by one point in 2010.

There is a science to this issue.  As we age, there is what is called a “ginger-ale effect.”  It is the gradual yellowing or darkening of images.  Yellows become more pronounced.  Blues, blue-green and purple become “murky.”  And you’ve all seen readers on your older friends.

To communicate with Boomers here are three things to remember:

1. Increase the font size.  Small fonts are for small thinkers.
2. Avoid text over backgrounds, especially complex patterned backgrounds.
3. Low contrast.  Black text on a blue or purple background is a mistake.
4. Reversed type.  Looks great, reads poorly.  It actually makes the font look smaller.  You want to invite readers, not send them away.

So if you’re under 40 and you want to know what your website looks like to a Boomer, just look at it on a mobile device.  Small content is an issue to Boomers and Mobile users.

New technologies, such as electronic readers, give the power to the reader by allowing them to make the font size larger–or in very rare occasions, smaller.

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