Archive for the ‘CRM’ Category

On a recent post I commented about CNN’s updated news crawl being a shill for their Twitter and other online efforts. Turns out, I was more right than I knew. Not only were they in the midst of a heated competition with their worthy opponent Ashton Kutcher to see who could reach a million followers first, but they were simultaneously reeling from the news that they were now, for the first time in their existence, ranked THIRD in viewership behind Fox and MSNBC!

Ashton beat them to the mil, but as Rick Sanchez so magnanimously said, “If you counted everything we do on Twitter we really beat him, but it’s all good.” or something empowering like that.

Normally I’d ignore his good sportsmanship except that I also read an article in Variety that said nearly the same thing. CNN spun their 3rd place finish in prime time into an ad for their multi-channel capability:

“Primetime is most meaningful to entertainment networks,” says CNN U.S. prexy Jonathan Klein, noting that his channel sells its commercial time in a more bundled, multiplatform way that differs from most cable networks, which deal more in the typical currency of primetime ratings points.

And that’s why, no doubt, during the middle of the day the other Friday, they actually showed Ed Henry interviewing somebody on CNN-Radio on CNN cable TV. There he was, boom mike dangling in front of his face, CNN Radio sign strategically positioned, except he was on the TV.

Multi-Channel is as multi-channel does. So CNN aims for the Twitter stratosphere,  creates partnerships with Facebook, takes on Talk Radio (“We’ll fight them on the fields, we’ll fight them on the shores, we’ll fight them in the air!”).

Or, to quote a more controversial character than old Mr. Churchill, “Get ther the fustest with the mustest.” (Be the first to guess who said that one and I’ll send you a Claxton Fruit Cake!)

We are watching CNN, the people who transformed television news by replacing the tyrannical scheduled reporting cycle (anybody remember the 6:00 News?) with getting their cameras wherever news was happening as it was happening (and using local network reporters when they didn’t have one of their own in place) transform news again. This time, they’re replacing the tyranny of platform exclusivity with the freedom of device. Klein continues:

“We sell against all of our platforms — TV, online, international — and it’s hard to say there’s one particular daypart or hour of the day that matters more,” says Klein… Our competition doesn’t have the resources to cover the news the way we do. They’ve actually ceded news coverage to us.”

Convergence doesn’t just happen. CNN is using their core platforms to advertise and drive their customers to their other platforms including Time Magazine. It’s a massive multi-channel marketing effort, it’s intrusive, and apparently, it’s working:  Follow us on Twitter — over a million Twitterers can’t be wrong!.

Recognizing, as CNN’s John King said, that they are “in the word business”, CNN is stuffing those words wherever they can … and monetizing their words along the way. Newspapers should take note:  you’re all in the “word biz” — not the dead tree biz or the radio wave business or the cathode ray business or the pixel business.

Of the last twenty or so articles I read from the NY Times, none of them were on newspaper, and I found them via Digg, Google News, and in emails from friends. The last radio program I listened to was on my computer. The last time I got a story from CNN I read it on my phone.

CNN won the first digital news revolution. They overthrew the powers that be and changed everything. Now that they’re the underdogs again, it looks like they’re sticking it to the man one more time — only this time, the man is Rupert Murdoch.

So, with CNN working hard to become the multi-channel newsroom of the next great era in journalism, with all their vaunted commitment to new media and the instant-dissemniation nature of Twitter, can someone please explain to me why in the last 24 hours, CNNBRK, their twitter account with 1,339,599 followers, had only two breaking news stories?

The other morning on my way to work I was listening to CBS-AM, and Joe Connolly of the Wall Street Journal told the story of someone who had gotten a collections letter from their bank that sounded more like it had come from a repo man. (Or maybe it was the Sopranos… sorry if I’m misquoting, Joe.)

I’ve been seeing a lot of collections letters recently, and not because I’m up to my eyeballs in debt.

It turns out my agency, Tanen Directed Advertising, is pretty good at writing collections letters. And not the kind Joe was talking about.

For the most part, collections letters tend to fit into a few basic molds.

There’s the impersonal, computer-generated type that remove all humanity from the equation… and from the recipient. (You’d be surprised how many of them aren’t written by computers.)

There’s the escalating, threatening letter that’s meant to scare the recipient into compliance but frequently just pummels them into paralyzed inaction.

And there’s the sickeningly sweet, fake “we know what it’s like and we want to help” letters that allow the sender to hide behind feigned consideration without presenting any real options and just serve to drive the recipient further away.

We don’t write those kind of letters. You see, we look at collections letters as CRM (Customer Relationship Management) tools.

After all, the recipients are your customers. They bought a car from you. They took out a mortgage with you — or with a bank thrice removed, but they’re your customers now. They get their electricity from your utility. They’re your patients and you’re their doctor.

Every time you communicate with your customer, you have the chance to deepen or damage your relationship with them. Which outcome would you prefer?

Sure, you can beat them into the ground to get your money, and you’ll get it. Maybe all of it, maybe just some of it. Maybe you’ll be the last straw that breaks them, but you’ll get your money.  And unless you’re a monopoly, it’s probably the last money you’ll ever get from them.

What if it turned out that by simply communicating with your customers, by treating them like valuable human beings who have feelings and brains and are integral components of your company, and by going the extra mile to give them some options, you can actually get more of the money they owe you?

We’ve written collections letters that have gotten 400% more of our client’s customers to call in to discuss repayments than did their previous best performing letters (known as controls in direct marketing). We’ve increased the amounts collected by our clients time and time again.

If you know anything about collections, you know that you usually have to hunt down your customers to talk to them. Our letters get your customers to pick up the phone and call you. Willingly. Because we explain their options to them, we empower them to take control of what felt like an out of control situation.

If you keep a customer, their lifetime value to you continues to increase, rather than bottoming out. If you show faith in your customer, and work with them to come up with a solution, they tend to respond with something every business desires:  loyalty.

Last night our President reminded us that we’re not a nation of quitters. That given a chance, Americans will do what it takes to rise from the depths of despair and work their way back to the top.

I’ve heard our current economic situation described in part as a crisis of faith, and that not until we all have faith in the future and start spending and lending again will we come out of it.

I’d like to add that as businesses, if we have faith in our customers and help them through these tough times, the rewards can be far greater than can be gotten through threats and intimidation.

I’m not arguing for charity — I’m making a case for a more successful business strategy. I’ve seen it work for our clients.

So can someone please explain to me why there are so many short-sighted businesses out there who would rather turn their customers into quitters today than do what it takes to earn their loyalty for years to come?