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Jun 8th, 2010 by Thomas Mueller

02 Days 21 Hours and 51 Minutes and counting until the 2010 FIFA World Cup: Hear the crowd roar

When host country South Africa kicks off the World Cup on June 11th in Johannesburg’s Soccer City against Mexico, it will be the two teams’ fourth overall match, with Mexico winning two of the previous three and scoring a total of nine goals. Maybe South Africa will open up this tournament with a surprise win and tie the head-to-head comparison against Mexico, the infamous record holder for most overall team losses (22) in a World Cup.

Will we see a rise of new soccer nations or will the usual suspects be among the final four teams?

Over four weeks, 32 teams paired in eight groups of four will play a total of 64 games in 10 stadiums, until two finalists meet on July 11th to determine who will take home the world’s most coveted soccer trophy.

Will it be five-time champion Brazil, or Italy, the current title-holder and winner of four tournaments? Could it be Germany, winner of three titles and the team with the most appearances in the last four World Cups? Or, will one of the much talked about African teams rise to the occasion on its home turf?

Will we see rise to new individual records and personality brands?

Antonio Carbajal (Mexico) and Lothar Matthäus (Germany) share the record for most tournaments played, with each of them playing at five consecutive World Cups. Lothar Matthäus holds the record for most matches played (25) at the World Cup stage.

But, will a defining moment surface for Cristiano Ronaldo and his Portuguese squad to capture the imagination of the world, or will we see Diego Maradona’s Argentine team with Diego Millito, Lionel Messi, and Carlos Tevez who take home the trophy for the first time since 1986—tying Germany for three overall World Cup wins?

Will World Cup 2010 mark the final turning point in how we watch and participate in a singular-focused global sports event?

The World Cup was first televised in 1954 and is now the most widely-viewed and followed sporting event in the world, exceeding even the Olympic Games. The cumulative television audience of all matches of the 2006 World Cup in Germany is estimated to have been 26.29 billion, with 715.1 million individuals (a ninth of the planet’s population) watching the final match (Source: Wikipedia.org).

Since 2006 we all have witnessed the rise of social media, and the coming weeks are estimated to drive record social media traffic in South Africa and around the world. When Facebook, Twitter and YouTube launched in 2004, 2005 and 2006 respectively, they were in their infancy compared to the dominant position they each hold today. As of June 1, 2010, Alexa, the Web Information Company, ranks Facebook as #2, YouTube as #3 and Twitter as #11 of the Top 500 sites on the web, based on monthly traffic numbers. Social media now connects millions around the world—50 million tweets are sent daily, while Facebook boasts more than 400 million active users—a development that will allow fans to celebrate goals or critique referee decisions together online. With all the mobile applications available from Apple’s AppStore, you get a clear idea of how individualized one’s World Cup experience can be.

As a soccer enthusiast, I am in the final stages of mapping out my highly customized experience map, among the iPhone Apps for ESPN, Fox, the FIFA website, and of course, Foursquare—ensuring I celebrate with the right crowd at the right time, in the right bar. I don’t want to mistakenly stumble into on an Aussie bar on June 13th when Germany takes on Australia. Australia—record-holder for the most goals scored in a qualifying match on the way to a World Cup at 31. Adding fuel to the fire, Germany holds the record for the most goals scored in one World Cup Tournament, with 25 goals scored during the 1954 World Cup in Switzerland. Between friends, family and even perfect strangers, a text here and a tweet there will unite soccer fans around the world—connecting them to one of the most exciting tournaments in the history of athletic competition.

Have a wonderful 2010 World Cup. For the Game. For the World.

Thomas Mueller is the global director, dynamic media for Siegel+Gale.

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Mar 25th, 2010 by Thomas Mueller

Avoiding turbulence with clear communications

In Passenger Security

The Christmas Day terrorist attack on Northwest Airlines flight 253 led to a number of immediate and inconvenient changes in passenger security, which were poorly communicated, and at times, poorly enforced.

For several days after the attack, passengers were inconsistently subjected to full body searches before boarding, were denied the use of electronic devices or blankets during flights, and were not permitted to stand or use the bathroom during the last hour of travel on international flights. The President referred to the event and its aftermath as “a systemic failure.” Delta Air Lines publicly diverted attention by criticizing the government, and so began a less than entertaining round of the blame game.

But, when it comes to airline security, Americans don’t care about blame.

They just want to feel safe, secure, and comfortable while flying. Clear and simple communication is the best way to foster a customer experience that mitigates fear and confusion while building consumer trust. Unfortunately, the message between homeland security and airline personnel has, at times, been disconcerting and aggravating. It is, however, an ideal opportunity for airlines to work more closely with the federal government to relieve passenger stress —not add to it.

It is possible that the events surrounding flight 253 may not be the last time that a gap in counter-terrorism and intelligence surfaces. But transparency on the part of homeland security and airline personnel may shift consumer attitudes away from the confusion and inconvenience of flight rules and toward an attitude understanding and trust.

Essentially it’s a case where, clarity translates to comfort.

In Customer Loyalty Programs

Loyal frequent flyer Kenneth Miller experienced the loss of nearly 101,000 miles (originally without an expiration date) with Delta Air Lines at the end of 2009. When Delta refused to reinstate them, he wrote to a nationally syndicated travel column.

He claimed the miles disappeared without any warning. While Delta reserved the right to make changes to their terms, Mr. Miller said that their efforts to “go green” left him without paper statements or notice of those changes. He had been saving his miles for a trip with his wife to celebrate their 20th anniversary, which he feels has now been “shattered.”

Here’s an instance where legal obfuscation and lack of clarity cost an airline one of its most valuable customers—and earned them a bad reputation in the press.

As these cases illustrate—the brand is the passenger experience… For each of the private and public sector organizations involved in these cases, public perceptions have been harmed, and the black eye extends it stain to the reputation of air travel as a whole. Only through transparent processes and plain talk can the industry’s reputation be repaired. Change is inevitable, but clearly communicating those changes is key to guiding customers and stakeholders through a smooth transition.

Thomas Mueller is the global director, dynamic media for Siegel+Gale.

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Feb 4th, 2010 by Thomas Mueller

Revenue vs. Brand Value: How to maintain both and improve the customer experience

According to a JD Power survey of nearly 13,000 passengers who flew on a North American airline between April 2008 and May 2009, customer satisfaction declined due largely to unfavorable customer perceptions on in-flight services, flight crew, cost, and fees.

The importance of developing customer loyalty is part of the crisis airlines face today; this is particularly challenging as charging additional fees is viewed as one of the top tactics to increase revenue. “Unfortunately, any improvements in customer satisfaction are being offset by passengers’ displeasure with cutbacks on in-flight services, increases in fees, and issues with the helpfulness and courtesy of flight crews,” said Dale Haines, senior director of JDP’s travel practice.

These two surveys show additional fees are heavily relied on to increase revenue; however, these fees hinder clients’ appreciation for good customer service. Fees may generate revenue during a tough quarter, but they are undermining their brand’s value. Which is more important? Despite their annoyance to the flyer, ancillary fees have become an integral part of the airline revenue structure. Unfortunately, from a loyalty perspective, long-term brand value does not strengthen immediate revenue. On the flip side, the increase in fees coupled with the lack of clear communication surrounding them have resulted in a steady decline of customer loyalty and brand value.

It’s true that fees are bolstering bottom lines, so is there a way for airlines to keep fees without making customers feel like there’s a trick around every corner? Yes, with transparency.

Of course not every carrier can eliminate baggage fees like Southwest (despite losing $16M in 2009), but all carriers can be clear about what the fees are for and how customers will be charged. For instance, RyanAir “comes clean” on all its charges on its website, which provides a simple table with the facts and data a customer might need to figure out the additional cost on tickets.

Communicating clearly and honestly with customers is just one way to increase revenue through fees while improving customer satisfaction. Airlines can also extend brand value through appropriate trends and promotions. For example, Alaska Airlines recently launched “Mystery City Savings,” offering a 25% discount off fares between Portland, Oregon, and a new destination each day for five consecutive days. Customers are encouraged to log onto AlaskaAir.com to check out which new destinations will be highlighted each day.

“Rollover Minutes” (AT&T’s claim to fame) has just entered the loyalty program sphere. Marriot Rewards is applying this “rollover point” strategy to their hotel loyalty program. With “Elite Rollover Nights,” guests, who stay more nights than they need to achieve an Elite status, can roll those extra nights into 2010. Stemming from this, Delta Airlines recently initiated a rollover program, for members who are at least Silver status. The program allows 2009 miles to be rolled over toward qualifying in 2010—an offer sure to create a more enjoyable customer experience.

After all, it’s that experience, which when aligned with any carrier’s brand promise, supports financial business growth.

According to the Sabre Airline Study, customer loyalty and retention efforts are viewed by most airline decision makers (86 percent) as having the most positive impact on their businesses. Simultaneously, airline customer satisfaction has fallen to its lowest level in four years.

But enhancing the overall customer experience through clear, consistent communications and interactions increases customer satisfaction, retention, and loyalty—giving airlines the fuel to obtain both increased revenues and brand value.

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Oct 3rd, 2008 by Thomas Mueller

Did Financial Services Institutions Forget They Had Websites?

The unfolding banking crisis over the last couple of weeks, examined from a brand and communications perspective, offers insights into how companies are using, misusing, underutilizing, or just plain wasting media touchpoints and opportunities to communicate in these crucial days.

Unfolding our newspapers, we see full-page, half-page, and quarter-page ads from such firms as JP Morgan Chase, Bank of America, Merrill Lynch, Washington Mutual, and Charles Schwab in national as well as regional papers, in other words, a sea of mostly generic messages. The messaging ranges from "Don’t worry, it’ll all be ok," to, "Welcome. We’re glad to have you," to inexplicable and inappropriate business as usual advertisements, touting great rates, or no-fee checking, as if the banking crisis isn’t happening on the same or opposite page!

There are exceptions, of course, such as Charles Schwab, who opted for an "Open Letter to America’s Investors," a more empathetic and educational approach delivered in a deliberate, recognizable, reassuring way, playing to the strength of the chosen communications channel. Schwab’s cross-channel approach delivers the "Open letter to America’s investors" as a full-page newspaper ad, while devoting valuable front-page sections of Schwab’s marketing, corporate, and transactional websites to more in-depth analysis of the financial markets, and Schwab’s own financial soundness. These sections receive constant updates during the turmoil, using a variety of formats, including a "Q&A" with the company’s Chief Investment Strategist.

Schwab is doing a laudable job, showing empathy for consumers, acknowledging that these are confusing times, and offering practical as well as understandable information. But, in terms of exploiting their websites and using this once-in-80-years situation to respond with new web tools and platforms, even they have missed an opportunity.

Corporate blogs tend to be dull and lack for readership at the best of times. At the worst of times, such as the current situation may turn out to be, the companies that are proactive and forthcoming in their communication efforts have a chance to break away from the competition, winning a spot in the consumers’ minds and hearts, and prepositioning their companies for growth in the next cycle. Hence, the agility and sense of "real-time" blogging is tailor-made to recognize confusion and address concern, if not to alleviate it completely.

(more…)

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