Archive for the ‘Uncategorized’ Category

Burger King Whopper Sacrifice Promotion Tests Friendships

Saturday, January 10th, 2009

Creating digital word-of-mouth requires thinking outside of the box. And that’s just what Burger King’s ad agency, Crispin Porter Bogusky is doing with the new BK Whopper Sacrifice Facebook promotion.

The idea behind the promotion is that you can trade in 10 of your Facebook friends for a free Burger King Whopper.

BK Whopper Facebook Application Promotion

BK Whopper Facebook Application Promotion

What I like about the idea, is that it gets people talking. Even if someone is exposed to the idea but doesn’t act on trading in friends, they can still talk about it. And even better, is that the whole promotion is built around Facebook, which is all about conversations.

The application sends a message to each of the banished friends, bluntly alerting them that they were traded in for a free Whopper. Which is sure to generate additional conversations.

I’ve installed the app on my Facebook profile and it does create a nice visual on my profile page that reads, “Kevin is 10 sacrifices away from a free Whopper.” And asks, “Who will be next?”

One disappointment is that the installation does not appear to generate a Facebook story feed in my profile announcing, “Kevin has added the BK Whopper Sacrifice App to his profile.” With something extra like, “Be careful, or he could trade you in on a Whopper. If you’d like to trade Kevin in, click here.” Such a feed would generate a lot more digital word-of-mouth as it would begin to appear in status updates visible by my friends who are checking out my status updates.

This puzzles me since Facebook tends to generate a feed on about any other similar social action I choose. Perhaps I’ve missed something there.

I’d also be curious if the application announces a friend has been dumped on the friend’s feed as well. That would generate a lot more conversation, i.e. ribbing from their friends.

Measuring The Campaign’s Success
Since the application’s launch in late December, nearly 75,000 Facebookers have been traded in for a BK Whopper. That amounts to more than 7,000 coupons for free Whoppers.

But as is the case with social media, there are results that this campaign has created that we can’t measure. We can guess that 75,000 conversations probably at the minimum have occurred as a result of those who’ve received messages saying they’ve been dumped for a Whopper. But that number could 2x, 3x or more.

Another thing we can’t measure is how many people have purchased Whoppers sans coupon simply as a result of all the online and offline conversations and media publicity the promotion is generating. The story has been picked up a number of media outlets including the NY Times.

And I guess another thing we can’t measure is the negative impact it might have. If you were one of the friends to receive an email saying that you had been dumped for a BK Whopper, how would that influence your opinion of the brand? My hunch is that BK understand their audience well enough to realize that anyone that uptight has already been turned off by previous BK advertising anyway.

Despite the lack of measurability other than overall BK sales, I can’t imagine there’s not a marketer out there that wouldn’t love a marketing tactic that has this much potential to create digital word-of-mouth as well as traditional word-of-mouth.

From my own monitoring of the consumer feedback on blogs and such, the reactions are mixed. Which seems to be the case with anything online that generates response from more than a handful of people. Some love the cleverness of the idea, while others feel it’s crude and insulting.

Regardless, other conversations surrounding the promotion are starting to take place, even among those who haven’t traded-in friends. I’ve noted 2 of my Facebook friends have shared the BK Whopper sacrifice news stories on their profiles in the past 24 hours, as have I. Also, it’s generating some fun, as we’re now posting messages to each others’ profiles as the promotion ultimately leads to the burning question: “Which is worth more to you–my friendship or a BK Whopper?”

–Kevin McIntosh

Branding And The Human Brain

Saturday, January 3rd, 2009

Originally uploaded by Gaetan Lee

Last night while lying in bed trying to fall asleep, for some reason I started thinking about branding and why it works. This led me to start thinking about how the human brain works in general.

If you think about it, the branding process is simply about applying shortcuts to the decision-making process. Which is exactly how we like to process information anyway.

This is why we gravitate to metaphors and analogies when trying to process new information. Techniques such as these rely on familiarity. And familiarity is comfortable. It gives us a feeling of security. Which is why these literary techniques have been embraced by everyone from Jesus to Elvis.

You might say we’re all kind of lazy when it comes to thinking, and when it’s time to make a decision, we like to rely on shortcuts to help us get there.

The Brain Searches Brands Like Google Searches Websites

Fortunately, I have some recent research that backs up what I’m saying here.

A recent study conducted by the international brand consultancy, THEY, compares the process a brain goes through in brand selection to Google.

According to Tjaco Walvis, who led the one-and-a-half-year study, brand choice is largely unconscious.

“But in that process, the brain behaves much like Google. It seems to use a set of rules called an algorithm to pick the brand from our memory that best and most reliably fits our functional and emotional needs at that particular moment. It behaves rationally, but in an unconscious way,” says Walvis.

Based on the study, Mr. Walvis concludes that the brain’s “algorithm” for brand choice has three elements:

Firstly, the brain selects the brand it has learned is best able to satisfy our biological and cultural goals. We unconsciously select the brand that is the most uniquely rewarding, based on its associations with our goals and the brain’s reward centers (e.g. the dopamine system).

Secondly, the brain selects the brand that has shown most frequently in the past that it is able to fulfill these needs. Coherent brands that repeat their promise are more likely to be chosen. Volvo, Coca-Cola and Disney are examples of coherent brands.

Thirdly, the brain selects the brand it has interacted with most intensely in the past. Brand participation creates numerous new connections in our brain, facilitating that brand’s retrieval. Nike Plus is an example of strong participation concept.

But in all three cases, the brain is working with past information to make decisions. Again, it’s the power of familiarity.

Now I’m just waiting on a brain study that reveals why a single guy like me is lying awake thinking about branding instead of thinking about swimsuit models.

–Kevin McIntosh

Happy New Year, Everybody!

Thursday, January 1st, 2009


Confetti Storm

Originally uploaded by The Lost Wanderer

How Much Is A Customer Worth To You?

Monday, December 29th, 2008

Originally uploaded by emdot

What is a customer worth to you? I ask that question, because until you understand the lifetime value of a customer, you’ll always have trouble justifying spending money on marketing.

This is how companies like Coca-Cola and Proctor & Gamble can justify spending billions each year to sell products that cost as little as 99 cents. They aren’t advertising to capture a one-time sale. They’re advertising to capture customers for a lifetime. They’re advertising to develop brand loyalty. Their annual sales don’t simply reflect the marketing expenditures they’ve made over the year. Those sales reflect the cumulative impact of advertising over several years.

For example, let’s assume a restaurant owner runs an advertising promotion that brings in 150 new customers in a week who spend an average of $14.95 per customer. That represents $2,242.50 in revenue. Next, assume the restaurant has done its job in creating a dining experience that makes customers want to come back, and that these customers come back 2 times a month for the next 5 years, spending an average of $14.95. Each customer then is worth $358.80 per year, which in five years represents $1,794 in sales per customer. That single promotion then has earned the owner $269,100 in sales over a 5 year period ($1,794 x 150 customers). That doesn’t even begin to take into account the people who they may start to invite to the restaurant for dinner, who then become regular customers as well.

A few months ago, I had a client who told me a single customer could be worth as much as $50,000 in profit to his business. Yet this client had trouble understanding why he should spend a few hundred dollars to write and distribute a press release.

If a bank announced an investment product that could yield $50,000 in a short period of time for an investment of $500, there would be people lined up for miles to purchase it.

Marketing/branding is an investment. It’s an investment in attracting and retaining customers who could possibly generate revenue for you far in excess of your investment. And that doesn’t even take into consideration the extra revenues those customers could generate for you through word-of-mouth marketing.

So when it’s time to budget for your marketing projects, don’t just think about the immediate return on investment. Think about the lifetime value of a new customer gained.

–Kevin McIntosh