I read some really great year end posts during the week leading up to New Year’s Day. Amidst the “Top 10/50/100″ lists, there were thoughtful, humorous, and motivational takes on how to evaluate 2009 and approach 2010 with energy and enthusiasm.

One or two that caused me to take my finger off the mouse and pause for a second read-through had to do with the pace at which we work.  The net-net message was that those people who work around the clock, never take their eye off the ball, and keep their energy switch constantly in the “On” position, will achieve the highest level of success in today’s always-connected world. One post went further, bragging about the pace they were keeping and implying that if the reader isn’t doing the same, you could count on falling, not only out of the race, but off the competitive map.

While there have always been overachievers and workaholics in our midst (and I admit to being in at least the first category), this year’s version of the “never take your foot off the pedal” message was heavily influenced by our steady adoption of social media. After two solid years (or 3?) of absorbing social media serum into our blood stream, we are a people possessed. Possessed by activity, by multi-tasking, by to-do lists, and by immediacy.

My take on how we interact with social media and other technologies – and how we advise our clients to interact with them – is that we have to remain constantly vigilant about who is in charge.

• Do we own the blackberry/iPhone, or does it own us?
• Does a ringing phone cause us to drop eye contact with a prospective customer to see who’s calling?
• Can we manage our social media presence as part of our work day, or does social media become our day?
• Are we creating another reason to procrastinate on tasks more closely correlated with revenue generation than SM so-far?

Don’t get excited, I’m not walking away from continuing to build social media communication strategies as part of my client’s customer strategies, but I am advising people to keep things in balance. If you’re not convinced, I have two resources to share with you, one older and more current.

The more time that goes by, the more I applaud the brilliance of Stephen Covey’s 7 Habits of Highly Successful People. Covey encourages people to prioritize the “critical” tasks of the day ahead of the “important”. In plain English, I am always going to complete and deliver a promised deliverable for a paying client before catching up on my Twitter email or posting to this blog.

The second resource is evidence of a growing body of evidence that multi-tasking is just not good for us as human beings.

• I saw the first commercial from a wireless company discouraging texting while driving over the holidays. Congratulations to Verizon on that ad which you can see here.
• The Harvard Business Review published an article during 2009 on “The Dangers of Distraction” and I have read other summaries of research that indicates we humans do our best work in linear, not multi-threading style.

With all the attention given by Marketers today to Customer Engagement, the issue of attention spans is critical to understand, dissect, and integrate into our communication plans. Our success in reaching and building loyalty with Generation Y (the Millennial Generation) is highly dependent on our commitment to addressing this key issue.

In my opinion, we need to build some space into our own lives if we are to successfully design and execute effective strategies for our clients. Building space into our lives means that we need to create some “margin” in the day. You know the one inch or so of white space around the typical page full of copy? Well, we need to put a version of that into our calendars, drop the to-do list to the ground, and reside peacefully there for enough time that it takes to refocus on the strategic, the critical, and the longer term view.

I’ve got lots more to share on how to drive Customer Engagement in an over-stimulated consumer environment.

Stay tuned.

Speedbumps are everywhere.

They’re in my neighborhood, at the mall and also on the internet.  If you’re in new environs, speedbumps can by definition be mileposts of learning. Ever fly down the street in an unfamiliar area only to discover speedbumps the hard way? It’s not pleasant for you or your passengers and can do damage to your vehicle depending on your velocity at impact.

Web 1.0 had its share of speedbumps, coming in the form of viruses, phishing schemes, and deals that seemed too good to be true from deposed Nigerian princes. Web 2.0 has a different set of annoyances and the more comfortable we get with building virtual networks and storing data in the cloud, the more vulnerable we will be to connectivity outages.

My modest goal in joining the social media landrush is twofold:

• Understand how to best incorporate the social media tool-set to communicate with customer loyalty program and frequent shopping club members
• Reach the Millennial generation in an effective way to build brand loyalty

If you are paying attention to the space, you will understand when I say that there are an inordinate number of social media “experts” and others who claim to be able to build brand awareness and increase customer engagement, all leading to greater customer loyalty for profit. If you’re not involved but observing from the sidelines, trust me on this one – they are ubiquitous to say the least.

In my book the “experts” you want to associate yourself with, and trust your future online loyalty marketing efforts to, are the ones who have been playing the game, taking some lumps, and learning by doing. I’ve been at it long enough to hit a few bumps and thought it was time to share a short list of cautions to consider as you build a corporate or personal social media marketing strategy:

• Concerning your blog, Facebook, and Twitter, add value with everything you post. The criticism that Twitter is a waste of time because all people do is update about their last meal shouldn’t bother you because you won’t be posting this sort of garbage (will you?).

• Remember that everything digital has a life similar to a cockroach, i.e. longer than most of us will live. Be ever so cautious about posting anything that you might regret later. My SM muse told me at the outset to write,read, proofread, and do it again, before pressing the update button. You’ll sleep better and won’t get fired when your legal department reads your Facebook page.

• Reveal personal information with the same care you take with your wallet. Would you let strangers look through your billfold while checking out at Walmart? Didn’t think so. Why then would you post highly personal information online in the interest of being more “human”? There are others ways to accomplish this goal.

• Speaking of being human, do attempt to create conversations, don’t just blast information at the ether and expect people to respond positively. If you equate SM with digital public relations, you are missing out on better tools for that purpose, and are inviting attrition from your fans, followers and customers.

• Balance openness and immediacy with common sense. You are fully within your rights to moderate comments on any blog you are responsible for, and the practice is highly sensible. You are not obligated to approve comments that have only tangential relationship to the topic or are little more than personal rants.

This list is equally applicable if you are building a personal brand, establishing yourself as a subject matter expert for your firm, or are the corporate officer responsible for setting social media policy across your associate base.

Some brands have adopted the viewpoint that they will hold-fire on their social media marketing strategy until they have it all figured out. Surely this approach will mean that they will have less scars than yours truly, but I’ll also be willing to be that they will be so late to the game that they will wish they had started earlier.

Be cautious, use common sense, and learn from others. If you do this, you’ll achieve your objectives with social media and also be able to recognize a true expert when you see one.

Of the many investments that a business can make, one of the most precarious is its corporate brand. Investment in brands run into the millions of dollars and, on the heels of the Ad-Fest known as the “undercard” of Super Bowl Sunday, the extent to which companies will spend to have their message heard is abundantly clear.

Millennials (Generation Y) are the most technology enabled generation yet. They take advantage of the tools available, staying immersed in their devices and social networks, always connected.

The investment of millions by Super Bowl advertising brands (US 3 Million per 30 second spot) creates an unspoken promise that must be kept on Monday morning. Millennials constantly reevaluate their favorite brands consciously or not. Over time, brand equity is established through a series of positive impressions. Human nature being what it is, this intangible equity can be wiped out through one disastrous service experience.

Competition is just that fierce these days, and the velocity of information collected by this increasingly powerful group of consumers enables a “react, reevaluate, and decide” cycle that can have multiple revolutions even before your Monday afternoon Marketing meeting can address a single issue. How many in the Millennial Generation do you think will pick up the phone and call to complain? How many less will take time to write a letter? If they have a negative customer experience, they just simply move on down the road to the competitor.

Here are two examples of companies whose flourishing brands suffered irreparable harm based on poor customer experience. I know, the sample of this study is small. It is nonetheless poignant and meaningful. As they say, “out of the mouth of babes…comes truth”. In this case, Loyalty Truth!

Not too long ago, Dell had a cache to its brand and their sales showed it. In our house, we made several purchases of desktops and peripherals only to grind teeth as a series of hardware failures ensued, subjecting us to time consuming calls to customer support. No call to the Help Desk is fun, but speaking with offshore support desks that grudgingly escalate the request up the chain of command can be infuriating.

The culmination of several of these negative experiences caused the Millennials in my house to swear never to buy Dell. I have attempted to convince them to reevaluate as the company has largely rectified service shortcoming through Gold Service packages that offer US based support, short hold times, and rapid problem resolution.

Just before the 2004 Olympic games, DHL lost a racing bike that I shipped to a race site. How ironic that DHL was the official shipping partner of the games and continually aired a commercial showing professional cyclists warming up on the ramps behind a DHL truck. Each time the commercial aired, a chorus of “Daddy, there’s your bike!” came from the couch, chiding me for my perceived poor choice of shipper. Now that DHL has announced it’s exit from the US market, maybe the issue is moot. Nonetheless I have a legion of young ones that wouldn’t trust DHL with a fruit cake.

On the positive side, JetBlue’s introduction of personal videos and a selection of interesting in-flight snacks served to delight my gang of Millennials. In all, JetBlue has consistently executed well and has created brand loyalty without my Millennials ever noticing their advertisement efforts.

Apple is a slam dunk example of product quality and retail execution cementing the brand message. Yes, their early ads featuring dancing silhouettes were cool, but the Millennials I know first identified with the brand via their innovative music playing device, the iPod. No wonder that iTunes accounted for about 80% of all digital music sales in the US during 2008. The excellent service provided by Apple retail stores and well-executed promise to migrate PC user data to an Apple PC have attracted legions of new customers.

There are two points of learning from these tales:

Groundbreaking marketing strategy and million dollar investments in brand campaigns are all easily trumped by poor execution. More time and investment should be allocated to employee training and incentives to realize flawless business operations.

Brand is important, but the super-glue known as a loyalty program needs to be in place to overcome service problems. Conceived correctly, a loyalty or customer strategy can cause customers to think twice before bolting for the competition.

How secure is your brand investment?

Boomers are often guilty of criticizing members of Generation Y for spending all of their time in front of their PC’s playing online games or watching videos on YouTube. If these are the addictions of Gen Y, then sports on TV must be the Boomers’ equivalent. The television and cable networks have crafted a schedule where seasons and championships blend into a 365 day couch-riding festival. The point is, no one is perfect, and we should spend more time celebrating our differences.

One day, members of the Millennial Generation will be driving our economy both in terms of production and consumption. Thinking ahead, here are a few takes on what life will be like when Millennials Rule the World:

1. Will voice mail become a quaint tool of the past? Maybe, because Gen Y’ers seem to live by their Caller ID and missed-call logs.
2. Will gym memberships be replaced by the latest Wii applications? Maybe, because there are lots of fun calories to be burned jumping around with that appliance in your hand.
3. Will recording artists be paid via donations just like we support open source software today? Possibly, as they may have few alternatives.
4. Will racism finally become obsolete in our society? Hopefully, as the Millennial generation is the most ethnically diverse in history.
5. Will on/off buttons on electronic appliances become obsolete? Possibly, since Gen Y rarely turns off its PC’s and mobile phones.
6. Will banks follow the example of airport check-in counters and nearly replace humans with advanced ATM’s? Maybe, as Gen Y likes to do it themselves.
7. Will Katie Couric and her peers remain employable as news anchors? Not sure, as few Millennials watch the network evening news.
8. Will there be a spiritual awakening in the land? Possibly, as Millennials are seeking more than just money and power.
9. Will marketing and advertising be forced to seek a new paradigm? Could be, as Millennials have more information at their finger-tips than any previous generation and are seeking authenticity and transparency.
10. Will newspapers cease to exist? Possibly, as few Millennials know where to find the Sports page, or any other section for that matter.
11. Will mankind have to find a new material to line its bird cages? (Yes, please refer to previous question).
12. Will financial advisors have to re-invent themselves? Yes, because Millennials will earn more and more quickly than their parents, but are in need of financial mentors to preserve their future wealth.

“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.

If we were playing a word association game, tossing out “Loyalty” to the crowd would elicit responses “Points” or “Miles”. In a similar way, ask what business problem Loyalty is designed to solve and most people would respond “attrition” or “retention”.

Historical perspective on Loyalty Marketing

Obviously, historical perspective on Loyalty Marketing programs equates the strategy to a Hammer, a well designed and reliable single purpose tool. One of the tenets of Loyalty Truth offers:

“While not every company needs a Loyalty program,

EVERY organization needs a well designed Customer Strategy”

By expanding the mandate of data driven marketing programs to embrace all that is entailed in building Customer Strategies, we’ve magically converted the Hammer into a Swiss Army Knife. Try to do that the next time you’re in the hardware store!

A properly designed Customer Strategy may or may not use a promotional currency to engage with customers. More importantly, a Customer Strategy can be designed to achieve multiple objectives including new account or customer acquisition, increased retention and spend, and may be used to support new product introduction. If you think through the definition below, you might agree that expanding your historical perspective on Loyalty Marketing to Customer Strategy has a “Loyalty 2.0″ feeling about it:

Marketing strategy designed to improve and maintain profitability

across a targeted customer portfolio

while delivering a sustainable purchase experience

consumers wish to repeat™.

Loyalty programs remain an excellent tool to create and maintain customer preference and to collect data invisible from your competitors, but a new wave of innovation will be required to remain competitive in today’s market.

Customer Strategy

No business executive ever woke up in the middle of the night and said “I must have a loyalty program”. It was their business problem that interrupted a good night’s rest. Identifying specific business objectives to achieve will lead to the best strategic solution, and probably a more inclusive one than “points or miles”.

Begin to view your Loyalty program as part of a broader Customer Strategy and watch your “Hammer” transform into the more powerful Swiss Army Knife.

If we were playing a word association game, tossing out “Loyalty” to the crowd would elicit responses “Points” or “Miles”. In a similar way, ask what business problem Loyalty is designed to solve and most people would respond “attrition” or “retention”.

Historical perspective on Loyalty Marketing

Obviously, historical perspective on Loyalty Marketing programs equates the strategy to a Hammer, a well designed and reliable single purpose tool. One of the tenets of Loyalty Truth offers:

“While not every company needs a Loyalty program,

EVERY organization needs a well designed Customer Strategy”

By expanding the mandate of data driven marketing programs to embrace all that is entailed in building Customer Strategies, we’ve magically converted the Hammer into a Swiss Army Knife. Try to do that the next time you’re in the hardware store!

A properly designed Customer Strategy may or may not use a promotional currency to engage with customers. More importantly, a Customer Strategy can be designed to achieve multiple objectives including new account or customer acquisition, increased retention and spend, and may be used to support new product introduction. If you think through the definition below, you might agree that expanding your historical perspective on Loyalty Marketing to Customer Strategy has a “Loyalty 2.0″ feeling about it:

Marketing strategy designed to improve and maintain profitability

across a targeted customer portfolio

while delivering a sustainable purchase experience

consumers wish to repeat™.

Loyalty programs remain an excellent tool to create and maintain customer preference and to collect data invisible from your competitors, but a new wave of innovation will be required to remain competitive in today’s market.

Customer Strategy

No business executive ever woke up in the middle of the night and said “I must have a loyalty program”. It was their business problem that interrupted a good night’s rest. Identifying specific business objectives to achieve will lead to the best strategic solution, and probably a more inclusive one than “points or miles”.

Begin to view your Loyalty program as part of a broader Customer Strategy and watch your “Hammer” transform into the more powerful Swiss Army Knife.

The economic power of Generation Y has registered on the radar of several major banks around the US.

Over the past decade, lifecycle value chain analysis has given birth to numerous product bundling strategies by retail bankers. However,  well conceived plans disconnect from results when the willingness to execute is lacking. For the most part, I have not witnessed a conviction by banks to invest in customer groups that show future potential but lack today’s profitability.

Millennials fit this profile, but things might be changing. Bank of America, PNC Bank, and Wells Fargo are just a few of the institutions rolling out products designed to engage Generation Y where they are, and encourage them towards a long term financial relationship.

Bank of America launched its “Keep the Change” program in late 2005. The program awards customers by rounding up debit card transactions and depositing the difference in a designated savings or checking account. The bank will match 100% of the savings for the first 3 months of the program and 5% thereafter. The bank reported that it had 2.5 Million customers enrolled and  that the program was responsible for over 700,000 new checking and 1 Million savings accounts.

PNC Bank introduced its Virtual Wallet during 2007, aiming to attract Millennials who are seeking a bank that understands their needs and speaks to them in their preferred channels. The online banking account offers simple tools to help with budgeting, bill paying, and savings. The Virtual Wallet micro-site offers a slate of quick videos that play out life scenarios like “Danger Days” (those days when “you have a lot of bills a-coming”) and “Wallet Wisdom” with tips on how to make an informed purchase and when to pull the trigger. An instant poll on the site showed that spending on gas (48%) outpaced eating out (43%) for those that had voted. Cocktails and coffee were distant followers. This is a great example of bank not acting like a bank and it works! A Dec. 8 Business Week article stated that more than 20,000 accounts have been opened so far, over 65% from new customers and 70% from the Generation Y demographic.

Wells Fargo offers online budgeting tools as a sweetener for opening a checking account and participating in online banking. My Spending Report is a tool that has gained notoriety as easy to understand and use. Yes, there are quite a few online alternatives to Quicken, including billQ, Mvelopes, and Mint, but sourcing your online financial management tool from a solid brick and mortar bank brand has its advantages.

There are more examples of banks seeking engagement with Generation Y and the good ones will be chronicled here. Maybe at last, retail banks are on a path to create brand stickiness rivalling their retailer counterparts. Just imagine how powerful the statement “You’ve got to open a Virtual Wallet” would be when spread across social networks.

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.