The Return of the Hoodoo Gurus

I’ve been a fan of the Australian rock band the Hoodoo Gurus since the 1980’s, when they were college radio favorites with hits like Bittersweet, Come Anytime and What’s My Scene. The group’s sound has been described as everything from power pop to garage punk to surf rock, and has aged well—at least if you consult the number of plays the Gurus get on my iPod.

The band has been under the radar in the US for a decade or more—but a few weeks ago, the Gurus put out their first new music release in several years. Titled Purity of Essence, it’s better than anything they’ve done since their heyday—a tuneful, hard rocking set that I’ll be playing loud on my way to the beach this summer. (Recommended download: I Hope You’re Happy.)

The good vibes got me thinking: How do you revitalize and market an aging brand? In this case, how would you bring to life an aging rock band that has been out of sight & out of mind for years?

• Should the brand image be repackaged for a younger market?
• Can it be done without putting a lot of money behind the effort?

Here’s my quick take on what the Hoodoo Gurus, or any mature brand, can do to make a go of it in today’s market.

1. Capitalize on name recognition – Is a rebranding needed? Not here, as the Gurus name has enough cache to bring back happy memories to fans of a certain age. In rock and roll, nostalgia still rules, as evidenced by the fact geezer bands from Rush to Crosby Stills & Nash are still successfully touring. By comparison, the Gurus, now in their late-40’s, are relatively young.
2. Revitalize the product – The group could have rested on past laurels with a “greatest hits” release, but instead has opted for a brand refresh—a new CD that puts a fresh new spin on their sound. This increases the chance of winning new fans as well as rekindling the interest of older ones.
3. Connect with thought leaders – While the new release has received good reviews from mostly obscure music blogs (save a glowing review in allmusic.com), they need to connect with the leaders in the space. This includes Rolling Stone and Pitchfork, and of course the leading rock radio outlets including XM and Sirius. Push, push, push, to get the new CD reviewed—and played—wherever possible.
4. Use social media to get the word out – Social media represents the best way to reconnect with a now scattered fan base. While the band has set up Facebook and MySpace pages, it looks like there could be more interaction from band members, especially regarding fan posts that reference old videos and shows. Make the conversation a dialogue, not just a monologue.
5. Take the show on the road – There’s nothing like a live product demonstration, especially when it comes to rock-and-roll. So I recommend the Gurus dust off their passports and hit the road for a tour. If they’re anywhere near Philly or NYC, you’ll find me not far from the stage.

Tom Rapsas is a seasoned Creative Director and Loyalty Marketing guru and expresses his own “Purity of Essence”  on all things Customer-Centric on Loyalty Truth whenever we are so fortunate to have some of his time. You can follow him on Twitter here: @TomRapsas

“I swear to tell the Truth, the whole Truth, and nothing but the Truth” …. Common Courtroom Oath

This blog will always report on Customer Centric, Loyalty, and Millennial Marketing with an independent and unbiased point of view. I approach my consulting assignments with clients in the same way….the best solution is that which comes from understanding the business model, assessing challenges and objectives, and designing a solution that is optimal for the Client above all other interests.

“You want the truth? You can’t handle the truth!”…. Jack Nicholson, “A Few Good Men” 1992

This serves as a reminder that peeling back the layers of a business can reveal some unsightly issues and may cause temporary pain. If there was ever need for a change agent in the Loyalty and Relationship Marketing field, it is now. Breaking new ground and trying approaches that don’t have wide market acceptance often constitute the breakthrough actions needed to stay ahead of the competition.

“Then you will know the truth, and the truth will set you free”… John 8:32

Making a critical and candid business assessment via a proven planning methodology and recommending the right solution will yield profits for your business. In the coming year, break the mold and shed traditional methods “because it is what we have always done”. In doing so, you will be “set free” to increase customer retention, share of wallet, and customer preference – all of which will result in wider profit margins.

“I swear to tell the Truth, the whole Truth, and nothing but the Truth” …. Common Courtroom Oath

This blog will always report on Customer Centric, Loyalty, and Millennial Marketing with an independent and unbiased point of view. I approach my consulting assignments with clients in the same way….the best solution is that which comes from understanding the business model, assessing challenges and objectives, and designing a solution that is optimal for the Client above all other interests.

“You want the truth? You can’t handle the truth!”…. Jack Nicholson, “A Few Good Men” 1992

This serves as a reminder that peeling back the layers of a business can reveal some unsightly issues and may cause temporary pain. If there was ever need for a change agent in the Loyalty and Relationship Marketing field, it is now. Breaking new ground and trying approaches that don’t have wide market acceptance often constitute the breakthrough actions needed to stay ahead of the competition.

“Then you will know the truth, and the truth will set you free”… John 8:32

Making a critical and candid business assessment via a proven planning methodology and recommending the right solution will yield profits for your business. In the coming year, break the mold and shed traditional methods “because it is what we have always done”. In doing so, you will be “set free” to increase customer retention, share of wallet, and customer preference – all of which will result in wider profit margins.

An opportunity in Millennial Marketing

The financial health of Generation Y may be at risk. Research hints that their adoption of sound financial habits is minimal and that as many as 24% of the group between 18 and 30 may be living beyond their means. Though parents have tried to make a positive influence, Millennials report that they have been taught “beliefs but not behaviors” by their elders. In other words, they have been told “what” to do without specific instruction on “how” to do it.

The opportunity for financial service providers, credit card issuers and others is to fill the gap, positioning themselves as trusted advisors for this populous and potential laden group.

Like staring at the scale and realizing that you have to make that first trip to the gym to lose some weight, helping Gen Y reach solid financial ground won’t happen overnight. While their Boomer parents actually watched music videos on MTV, this generation was immersed in shows like “Entourage”, “MTV Cribs”, “My Super Sweet 16″ and more. How ironic that a lot of reality TV fails to depict the actual reality of how most people live.

It’s a known characteristic of the Millennial generation that they are totally immersed and always plugged in to technology. It’s reported that around 42% make purchase decisions based on recommendations from friends. Amongst all the buzz however, they rarely compare notes with their friends on finances.

Some quotes from a Harris Interactive study hone in on Gen Y outlooks regarding money and banks:

• “I just can’t socialize and save” – Social priorities rank higher than their financial health
• “When I settle down, I’ll start saving” – Despite the wisdom of the “time value of money” equation advocated by most financial pundits, Gen Y is like the rest of us in procrastinating about the future

Millennials tend to view banks as serving up mostly checking and savings accounts and only caring about people with money. They regard writing paper checks as a nostalgic payment medium and are more inclined to adopt plastic and virtual payment means including debit cards and Pay Pal.

Some banks are realizing the opportunity to meet Generation Y right where they are and are creating products suited to their lifestyle and preferences. Wells Fargo, Bank of America, PNC Bank, and Bank Atlantic are all making efforts to engage with the group.

I’ll cover several specific examples in a future post, but for now, think of Marketing to Millennials as less push and shouting and more advice and suggestion. It have never been more important to create trust as the foundation for a relationship with a consumer group than with the Millennials. If you wish to keep their attention for longer than it takes to post to Twitter, you might have to rethink traditional methods to reach this group.

As customer centric strategies are given more attention by global brands, efforts to place a value on the customers themselves will evolve. There is recurring talk of building a customer equity model that could be factored into evaluation of a public company’s stock price. After all, customer value is the baseline from which incremental value can be measured and the success of the customer strategy evaluated.

Flying Southwest Airlines recently, I learned a lot about my perceived value to the airline.

Arriving in Tampa on time despite blanketing fog, I realized that I could catch an earlier connecting flight and, in doing so, cut my waiting time in half and possibly avoid a weather delay. I approached the check-in counter and inquired if I could get a seat. “Not if you’re on a restricted fare” was the bland response from the gate agent. Barely containing my sarcasm, I commented that my $500+ round trip fare was not likely to be restricted in any way. “Oh no sir, the agent replied, you have a full fare on the return but not on the way out. If you want to get on board, it will cost $258.”

Not giving up, I tried another approach. I suggested that the airline would not lose anything by putting me in a seat that would otherwise depart empty. The gate agent’s response cut me to the quick.

“We make more money on freight and mail…we’d send the plane out empty if we had to.”

So, there you have it – while Southwest may go through sophisticated mathematical calculations to determine customer value, I was instantly made aware of my perceived value to Southwest – somewhere south of a piece of mail or pallet of fillet knives.

Customer Loyalty is the derived result of blending multiple factors. Quality, convenience, service and price are 4 commonly cited ingredients. Enduring Southwest’s open boarding process, paying a fare equivalent to a legacy carrier, and then harshly learning my value to the airline left me wondering just how good Rapid Rewards would have to be to influence my choice of air carrier in the future.

Remember that even a well constructed loyalty program cannot always outweigh negative aspects of 4 factors mentioned. Based on this customer experience, I am inclined to view any rewards received from this program as closer to combat pay than an aspirational reward.

Building a reliable database is fundamental to successfully executing any form of customer centric or loyalty marketing campaign. List rental is a historically reliable method of acquiring names used by direct marketers. Opt-in approaches are a potentially lower cost means of building a proprietary customer database. Product warranty cards, e-newsletter subscriptions and registration cards are examples of commonly used collection methods and can all yield good results.

Ever wonder what it costs to acquire this valuable information? Turn the question around and ask yourself what names and email addresses are worth? To make it personal, what is YOUR information worth to a typical retailer?

How about $.50. Yep, fifty cents is the bounty on your head – at least that’s what I discovered the other day in a national coffee chain.

Standing in line, the manager called an informal meeting among front line employees. She challenged each person to collect 20 names for a bounty of $10. One stunned cashier swallowed hard over the thought of getting out of the comfort zone. Suddenly her expression changed as she asked a colleague “so, if I get 1,000 names, do you think they’ll pay me $500?”

The cost of building databases is an accumulation of several cost layers, with list rental and processing of registration or warranty cards being only the beginning. Assembling the computer hardware and licensing database software are capital costs that have to be incurred before the collection process is ever engaged.

Involving employees to fuel such an effort is sensible and providing incentives is highly recommended to drive results. Just don’t have your “management” meetings in front of your customers. It’s never good to let them know there is a price on their heads.