October 2014

It was a couple of years ago that I began to suspect things were changing at Southwest. The esprit de corps was missing. No singing during landing or jokes on take-off. Uniforms replaced shorts and golf shirts. Southwest didn’t feel like Southwest. With the introduction of their latest ad campaign, my suspicions have been confirmed. The bean counters have taken over.

A sure sign that the marketing people have lost control of the ship is when the advertising starts to focus on the company instead of the customer. Sadly, it has happened at Southwest Airlines. The great ads that used to feel my pain when I really needed to “get away” have been replaced with images of employees talking about how much they care. They have “heart”. You can tell, it’s painted on the bottom of the planes.

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Southwest became great by demonstrating how much they care, not by talking about it.

When you are really good at something, you don’t have to tell anyone. Everyone who matters knows. Can Peyton Manning throw a football? Can Eric Clapton tear up a guitar? The day Adam Levine puts his face on a poster with the caption “I can sing and I’m a really good songwriter, too” is the day he starts playing casinos in the midwest. Of course it applies to great companies, too.

It’s the bean counters, stupid.

Customer-focused innovation separates great companies from the competition. When the bean counters take over, the focus moves to the company and the bottom line. Short term, short-sighted thinking. The real Bottom line. This new campaign does not pass the “So what?” test. “Our people have a lot of heart. We love to fly. We really care about flying around the country.”

So what?

Here’s some insight: We, the customers, fly because we have to. Not because we want to or because it is fun. We like(d) Southwest because you made it fun, or at least tolerable. If you’re going to make it boring, we might as well take the bus.

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One of the best ad campaigns of all time was unveiled the day Avis declared “We’re number two, we try harder.” Avis was immediately propelled from the back lot of the airport parking deck to the “front row” in the minds of the car renting public. It was brilliant. Hertz dominated the market and, until that campaign, was the only brand that most people could recall without help. As good a campaign as it was though, Avis never advanced past that number two slot.

Innovation gets the prize

Enterprise looked at the rental car market and saw an opportunity. They opened offices away from the airports and offered to “pick us up.” With all the money they saved from lower real estate costs, they were able to invest heavily in a simple, not-so-clever ad campaign that resonated with an unmet need in the market. “My car is in the shop and I need a ride, and I don’t really want to go to the airport to get a car.” So simple, yet so innovative that Enterprise quickly passed Hertz to become the largest car rental company in America. They now own National and Alamo and they are still growing. Avis, meanwhile, is  a solid number three… and slipping. Maybe they should try harder to innovate.

Wherever Steve Jobs is perched as he watches the latest twists and turns at Apple, you know he has to be laughing. The idea that people are upset when they sit on their very thin, very light phone and it bends is too funny for words. It’s almost as good as the countless people who have dropped their phones in the toilet and act like it’s someone else’s fault that they are trying to multi-task in the john. Seriously, people. Don’t mess with your phone when you are messing with your mess. It’s just not kosher.

While Steve may be laughing, he is definitely not smiling.

Yosemite

PC users might be used to sloppy product introductions and instructions that don’t make sense. Mac users, on the other hand, do not suffer fools lightly.  So, when we open an iWork document and we get a message that says to upgrade to Yosemite, we expect Yosemite to actually be available for download. When it’s not, we start to miss Steve. It’s this kind of insane attention to detail that made the Apple brand synonymous with user-friendly, common sense, plug ‘n play operation.

Sure, we have now downloaded Yosemite and it’s working beautifully, just as we expect. Meanwhile, the damage is done. A tiny spec of rust on an otherwise shiny brand. It will not be the end of Apple any more than a bent iPhone will be the end of Apple. All it means for now is some of Apple’s raving fans aren’t smiling. And that means Steve isn’t smiling.

It’s a simple fact: Your customers have to pay for your marketing…and they don’t mind at all.

When you market innovation, you are offering a unique solution to your customer’s problems. You are making their lives easier, better, faster, more comfortable and they are happy to pay for that. So, not only do you have to put the cost of marketing into your product, you have to make sure you put enough in there to do the job right.

Companies like Lexus, Apple, Sonos, and Marriott get this. They work with margins that allow for aggressive product develop, exceptional customer service, and (of course) brilliant marketing. It’s the philosophy that “I have to charge you enough to give you the product or service that you deserve.” When you subscribe to this philosophy, you are focused on the customer and the customer experience and not the bottom line. You know that the bottom line will take care of itself.

And there’s more!

The added bonus to all this customer-focused innovation marketing is that the brand is automatically elevated in the marketplace and your customer is even MORE satisfied with her purchase. It’s further confirmation that she made the right decision and confidence that the product and brand will continue to provide value in the future.

So, put enough margin into your product to expand your offering and tell your story completely. We’ll gladly pay for it.

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I love Bose. The company produces amazing sound and long ago set the standard for innovation and quality in the world of audio. I love my Wave Radio so much I sent Paul Harvey a letter about it. He read it on his show for over three years.

So when it came time to replace my surround sound system with a sound bar, I naturally wanted a Bose Sound Bar.

I got one, installed it and, of course, loved the sound. The problem was to play music, I had to have my TV on. So, I looked for other options and found my way eventually to Sonos. The Sonos system does NOT sound as good as Bose, but I’m the only one in the house that knows that. Sonos has developed an interface, however that is easy to use, works from my iPhone and iPad, and allows me infinite control over each component without engaging my TV. I am confident Bose is working on a similar system. Unfortunately, it’s too late for me. I have moved on. That’s the way of the world today. When we want it, we want it now. For today, Sonos innovation beats Bose brand. The ball is now in Bose’s court. Meanwhile, their brand and sales are taking the hit.