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IN BOTH RETAIL AND POLITICS, “IT’S THE MESSAGE, STUPID!” | November 14, 2012 (1 comment)
Toledo, OH—Inspired by last week’s elections, Ellen Fruchtman, president of Fruchtman Marketing, draws some interesting parallels between political marketing and luxury jewelry marketing.
In her weekly T3: Tuesday Tips and Tricks newsletter to clients this week, Fruchtman penned an editorial riffing on Bill Clinton’s famous campaign slogan against George H.W. Bush in 1992: “It’s the economy, stupid.” Now, in an exclusive interview with The Centurion Newsletter, Fruchtman explains what luxury jewelers have in common with politicians (really!) but more, what they can learn from both successful and failed political campaigns.
The Centurion’s Q&A with Fruchtman follows her editorial, “It’s the Messaging, Stupid!”, reprinted here from her newsletter:
“I’m a political junkie. Years ago, prior to my obsession with the jewelry industry, I did a fair amount of political marketing in Northwest Ohio from mayoral races to Congress. Truth be told, not all of the candidates were worthy of the job. But hey, my duty was to sell the good, the bad and the ugly candidates. And, for the most part, our company did this very successfully.
What I knew then, and what I know now is this: You don’t win elections based on statistics. You win elections based on your ability to connect with your audience. Constituents, like customers, want to believe you think the way they think and want to believe you understand what they’re feeling. They vote—and yes, shop—on a very visceral level.
It is all in the messaging.
You win when you achieve that level: the level of emotional appeal that persuades consumers to walk through your door versus that of your competitor. It’s achieved on a multitude of platforms from your creative approach in your advertising; to your community support; to the way they feel when they walk in your store.
Women made the difference in the 2012 election. Women also make the difference in the success of your business. If you don’t understand what resonates to your target audience, you will never win. If you don’t understand what’s important to them, you will never win. If you don’t connect to them on a gut level, you will never win.
There couldn’t be any two industries that are more diametrically opposed on the scale, and at the same time more similar, than politics and retail. Your messaging must be emotional. Advertising that solely speaks of statistics (in your case, product and price) rarely resonates. Is there a place and time for this type of marketing? Yes. But consistently, no. The largest percentage of retailers who are successful (over the long haul) do the following:
1. Their advertising (be it traditional or digital) speaks to their customer on a purely emotional level.
2. They support their community and are philanthropic.
3. Their store is appealing, warm and inviting.
4. Their sales staff is a reflection of their customer and has the ability to connect with their customer.
All of the above is marketing. Pay attention to it. Make it a priority. It’s the winning formula.
And yes, I approved this message.”
Ellen Fruchtman
The Centurion: It is the messaging, but don't retailers (and candidates) first have to know what message it is that consumers want to hear?
Ellen Fruchtman: Yes, of course. It's a common error in advertising and marketing for all brands/businesses. Most retailers (and candidates) want to be all things to all people. It's very tough, especially with limited budgets. Retailers walk a fine line. If they continue to message sterling silver beads for $25, what impact will that have on their higher-end customer? If a candidate continues to appeal to either the far left or far right, they risk alienating each side, not to mention the middle. Most retailers aren't building campaigns, let alone building campaigns on a clearly defined strategy, but like candidates, many "think" they know what their customer (or constituents) want. But, they're not basing it on credible evidence. Witness the polls. Polls are based on a very limited cross-section of people, but they’re a fair and adequate reflection. If politicians or national organizations can base a poll and get decent results with 1,000 people, you can certainly do it with less [people] on a local level.
Centurion: How can retailers know they're sending the right message to the customers they want to reach?
EF: First they have to understand that one message may not resonate across the board. And second, they have to understand the placement of that message is equally as important. Messages that are geared to set a tone about their brand are obviously harder to measure, versus a call to action. In traditional media (TV, radio, print, billboard, etc.) it's more difficult to make quick changes. Ultimately, it all comes down to traffic: seeing new faces and increasing frequency with existing customers. Digital is a different story. You can measure traffic fairly quickly and make necessary adjustments much easier. For example, with Facebook you can do a form of advertising called Sponsored Stories which allow you to target a very specific demographic with product-based page posts. Based on collected data, we can compare how engagement with that post fared, and adjust.
Think about your business posts on Facebook. You can see what resonates with your fan base as well. With email, you can measure based on open rate and content click-throughs. With paid search you can promote specific pages on your website and, again, measure the traffic.
Centurion: What research do they have to do to determine that message?
EF: In the national arena, messages are tested with unbiased focus groups based on sex, various ages groups, etc. Most local retailers are not interested in investing their hard-earned (and limited) dollars on this type of research. But when you think about the percentage of your total advertising dollars spent over the course of one or two years, it might be a wise investment. Again, this is more about traditional messaging since you can secure a reaction in digital fairly quickly.
Stores can also elicit research from their own customer base with jewelry enthusiasts. Create an ambassador program with a solid mix of ages, sex, etc. Get them to your store and let them be your focus group. Ask them about specific products you’re thinking of bringing in, as well as existing product. Share your marketing. Not only will they feel important, you will glean some decent information. But, make sure you are not leading them to provide the answers you want to hear versus what you need to hear. If you don't feel that you are capable of handling this, then work with your marketing/advertising firm or a research firm. Costs may be less if you are providing the people to participate.
Centurion: Unless you're only targeting one narrow segment (which is an option) how do retailers tailor their message to appeal to different constituencies, without confusing customers as to who they really are?
EF: As I mentioned prior, it can be a problem if you're not carefully placing the message. Retailers have wonderful POS systems they can utilize to segment their customer lists by the type of products they like to the average price-point they typically buy. In traditional media you can utilize qualitative data that will provide information on consumer lifestyle habits. A good media planner will match those attributes to programming. Some of it is common sense. Obviously, rating will show how well a program is doing in a specific demographic—male versus female; various ages, etc. Digital can get more specific. On Facebook, you can target "in a relationship" versus single.
Centurion: If targeting one narrow niche isn’t sustainable for a jeweler, how can they successfully target multiple customer groups? For example, reaching both the gift market and the self-purchase market, or the affluent who can afford the diamond opera necklace but also the young, not-affluent-yet customer who might be afraid to come in the store, but whom the jeweler wants to cultivate for the future?
EF: Again, there are specific areas from a programming standpoint where you can reach specific demographics and psychographics. If you are targeting the more affluent for the diamond opera necklace, think about where these people are and what they do. You're going to reach these people in arts publications, for example. You're also going to reach these people in other ways not having to do with "advertising." This clientele is drawn to corporate giving, sponsorships, support of specific events, etc. In other words, cause marketing. You need to be where they are, from country clubs to being a part of the Symphony board of directors.
If you are a retailer that can appeal to both realistically, you need to set an approachable tone. You can show a beautiful piece of jewelry and have a headline and copy that resonates with more than the super-affluent. And, let's remember…just because you’re affluent, doesn't mean you don't have sense of humor or respond to something far more emotional. Emotional appeal sells to everyone. The best marketing resonates beyond income levels. Let's also remember that affluent people are still looking for value, and no one aspires to shop at Kmart.
Centurion: How does a retailer do that without losing authenticity?
EF: You have to create messaging that makes any consumer feel like you get what they are feeling—across all platforms! Local retailers are notorious for cutting costs on the way they look and feel in their advertising. There's so much time invested in finding the right inventory and a disproportionate amount of time spent in how to market that inventory. How does that make sense? The ones that do it right, succeed every time.
Centurion: Can you give some examples of luxury brands or retailers who have done this very well?
EF: A non-luxury brand is Target. I don't care how wealthy you are, you're not embarrassed to shop there. Costco is right up there too.
Luxury brands that do this well are Tiffany and Rolex. Who didn't want that silver bracelet for their Bat Mitzvah, while Rolex conveys a message of achievement without being so stuffy. They've also kept their brand integrity along the way.
Not sure they are "luxury", but who does this better than Apple, from every age to every income. Also Lexus. We know they have expensive models, but they spend a great deal of time marketing their IS model. Other brands are Jimmy Choo and Coach. With Jimmy Choo, you wouldn't think a ton of people would want to spend over $500 for a pair of shoes, but they do, and once upon a time Coach was unapproachable. Then they found the mall.
Centurion: What else do jewelers need to know?
EF: I guess it’s ‘who do you want to be?’ Without getting political, [in the election] President Obama knew there needed to be different messages for different audiences; knew where to place the message; knew what audience(s) he needed to put him over the top. As a retailer, think about what you need to put you over the top. Think about those audiences. Think about where to reach them. And, think about the fact that it takes a fine oiled machine to get you there.
Top image: Lemur Attack Force