Brand Mergers: What Nonprofits Can Learn from the Amazon-Zappos Deal

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Red Gerbera Daisy IMG_0149 s.cAmazon is known for efficiency. Zappos has built a customer-centered company. The marriage announced last week merges a $1 billion-a-year shoe-selling enterprise with a $20 billion behemoth online seller. Many industry watchers have been boo-hooing the deal, assuming that Amazon’s culture will subsume Zappos and, frankly, ruin it.

But I have another take. When one enterprise knows how to deliver What the Customer Wants, When She Wants it while the other one Builds Community and Brand Loyalty with customers, then it can be a match made in heaven.  That’s because we are in a world moving away from “hard brands”—i.e. what the PR and marketing people traditionally pushed towards the customer/media and towards “brands-in-conversation”—entities that evolve in a dialogue with their customers. The same goes for nonprofits struggling in this downturn.  Many of them are facing going out of business because they are just not making ends meet, even though they do great work.

Where do nonprofits stand?

At last count, we had more than 1.5 million nonprofits in the United States (that’s according to The Urban Institute, National Center for Charitable Statistics, based on organizations that filed form 990’s with the IRS within the last 24 months). Thats a lot of brands competing for dollars and volunteers.  And unfortunately, many of these organizations have mission overlap.  In addition, some are better at delivering results, some are better at outreach and organizing, and some are better at promoting a great donor or volunteer or member experience. But few are good at all of these tasks.

So what can a nonprofit do? Consider a partnership or merger.

Considering a merger with another entity can be scary, as nonprofits are fiercely independent. But a merger/partnership can really strengthen your brand. That’s because your brand is all about delivering on mission.  When you share responsibilities with another entity, you can increase your “ROI” with the people you serve, while decreasing costs, overhead and inefficiencies.

A joint effort doesn’t have to happen overnight.  Here are some baby steps to creating a productive brand merger.

  • Introduce your boards to each other at a social, not business-oriented, “mixer.”
  • Engage staff of each organization in a brainstorming session—the goal is better meeting the mission.
  • Try a joint venture—a project with a measurable outcome consistent with both organizations’ goals.
  • Host an event together so you can share ideas, showcase strengths, and get feedback from attendees on how your two organizations worked together.
  • Share each other’s content—through your web and social media venues; Tweet about each other’s successes and events, for example.
  • Consider the donor’s point of view. What additional services or geographic reach would enable each organization to give a lead donor more bang for their buck?

These are just some of the ways you can increase brand impact and build trust between two enterprises. Remember that the goal is always delivering on the mission. If you can keep your staff and board mission-focused, then the ROI of a partnership or merger can bring great benefits to the people who need them most: those you serve.

Join Amy this Wednesday on a free teleconference about Engaging Boards for a More Successful Fundraising Auction. To register, click here.

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The Good the Bad and the Ugly: Social Media Successes and Nightmares

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By now you have probably heard some of the more infamous stories of the brave new woRed Wheel s.c.rld of social media. From Jeff Jarvis’s famous “Dell Sucks” blog post in 2005 to the Motrin-Mommy-Blogger fiasco of late 2008.  But what results—good and bad—can inform your own personal or corporate social media strategy? Here are some I thought worth a look.

The Good

Have you checked out Bill Marriott’s Blog “Marriott on the Move”?  http://www.blogs.marriott.com/ Of course his most recent postings have been about the Jakarta suicide bombings that took place at a Marriott hotel there. Communicating with customers in times of crisis is a crucial part of communicating your brand identity—in this case, that Marriott management is caring and on top of the situation as much as can be expected. Bill  also reads the blog aloud in an audio file beneath each post, which makes for a much more personal experience of the story. According to Kathleen Matthews, former news anchor-turned-Marriott marketing executive, $3 million in reservations have come in through his blog. How’s that for an ROI?

Charity: Water is a non-profit organization bringing clean and safe drinking water to people in developing nations. 100% of public donations directly fund water projects.  On 12 February 2009, 200+ international cities hosted a Twestival (Twitter + festival) to bring Twitter communities together to raise money for charity: water. The Twestival raised $250,000+ and brought worldwide public awareness to the global water crisis. They also provided a live feed of a well drilling project in Ethiopia paid for by the funds, so donors felt instantly connected to an outcome of their donations. Charity: Water also cleverly provides “Tweet the Facts” resource so folks on Twitter can easily publish content relevant to the charity (“Women in Africa spend 15-17 hrs/week collecting water”).  Charities have been among the first to realize the power of social media, so why not retrace their steps and raise awareness for charities and causes you support?

Zappos, the internet shoe emporium just purchased by Amazon, has 436 employees on Twitter.  (Full disclosure: I love shoes.) In a recent interview for the Progressive Women’s Leadership Blog in a post called “All atwitter,” CEO Tony Hsieh said “For Twitter, we don’t really view it as a marketing channel so much as a way to connect on a more personal level — whether it’s with our employees or our existing customers.” Zappos has always stood out for its unique company culture, with a high level of customer service and a personalized, informal style. The company offers Twitter classes for employees to learn how to Tweet, but it does not have any restrictive requirements. Again, CEO Hsieh told interviewer Stephen Spencer “We’re not really looking at short-term ROI in terms of sales,” Hsieh says. “We’re looking to form lifelong relationships with our customers, and we think Twitter helps us do this.”  The company has also used Twitter as a recruiting tool, because it helps prospective employees see what it’s like to work there.

The Bad

The Washington Post today carried a story (“Online — and in the Loop — With D.C. Police “ washingtonpost.com http://bit.ly/y8rlP ) about how police are using email listserves to connect to community, inform the public about crimes, and help solve them.  The U.S. Park Police are blogging at http://uspppressroom.blogspot.com/ . Meanwhile, on the west coast, Los Angeles police Lt. Rick Banks is quoted saying his unit is looking at Twitter as a new opportunity.  What does it all mean? Federal and state agencies are embracing social media as a tool for connecting with the communities they serve.  Some of these postings function more as press release outlets than places for real conversations to emerge (see http://www.usda.gov/blog/usda/ ).  At least it’s a start for more transparency and faster communication in government.

The Ugly

As great as social media is, there is a dark side. Consider this story from the Better Business Bureau about major job scams on Twitter.  The BBB wants job hunters to be aware of the following red flags when searching for a work-at-home job online:

  • The “job” is actually a money-making scheme and doesn’t provide actual employment.
  • The work-at-home scheme claims that you can make lots of money with little effort and no experience.
  • You have to pay money up front in order to be considered for the job or receive more information.
  • The exact same tweet touting the program is posted by many different Twitterers. The links in such tweets could lead you to scam sites or install malware onto your computer.

These are just a few tales to help you consider the good, the bad and the ugly ways that social media is changing our communications landscape.  Do you have a social media success story or nightmare? Please share!

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I Hate Website Contact Forms: A Dent in Your Brand

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I know, I’ve really avoided launching any blog posts with the words “I hate.”  But GF3, s.c.2this one really gets me, for some reason. In our brave new age of social media, increased transparency, and communications efficiency, those little forms that you get when you click “Contact Us” really bug me.

I recently went on a nonprofit website to find someone in the communications department I’d met at a party. I thought I’d do a simple click and send her a quick note. Instead, I got The Form of Doom.  This is a great nonprofit, doing great work, helping needy children all over the world. And I was stopped in my tracks. Suddenly their brand didn’t seem as good. I know, it’s not fair, but it didn’t.  Suddenly they seemed possibly elitist, or at least not friendly and not reachable.  If I were a donor, would I be thinking “hey, maybe there’s another nonprofit I can contact more easily”?  I don’t know, but I might.

Contact Us forms are the last vestige of Web .5 in a Web 2.0 world.  Originally, they were designed to “capture user information” and help protect executives new to email.  But now, they just seem like speed bumps—annoying and messing up my car.  It’s not like people can’t find you these days. I located the nonprofit communications executive I’d met through Linked In, where we happily connected, conversed and exchanged email addresses. But that was, like, six steps from how I should have found her with a simple link on her organization’s website.

Brands are affected by many customer experiences.  We build up our expectations of a brand, and then we expect all interactions with the brand to deliver on the “brand promise.”  When a communications transaction between entity and user does not meet the brand promise expectations, we are at a fork in the road and we may choose another brand instead.  Websites are no longer sign posts.  They are interactive communications tools with your current or prospective donors, customers or volunteers.  Check around and see if yours is welcoming them to your brand on every page, or if you still have a few of the old barriers around.

Know any other Brand Barriers or have a different view of Contact forms? Please share them!

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Choosing the Wrong Communications Tool Can Really Screw Up Your Brand

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Yellow Hibiscus, Red Center 7_IGP0786 s.cI was recently reminded of how important it is to choose the right communications medium when I opened my office email after the July 4th holiday weekend. To my surprise, my in-box was chock full of emails—more than 200 of them. This seemed odd. Could there have been some massive event I wasn’t aware of?  Then the culprit emerged. The university orchestra of my alma mater had sent out an email encouraging people to “chat” about their experiences in the group.  Hmmm. A group chat through email? Not an invitation to join a list-serve or a fan group on Facebook?

I trolled through the first handful of emails and realized that not only had the organization chosen a poor format for this lovely outreach idea, but that almost everyone contacted had responded “reply all” when asking to be removed from the list. Voila! 200 increasingly nasty emails were created, and were still replicating as I watched.  And one of the last ones I read reminded me of how badly your brand can be damaged by such a seemingly innocent mistake. An alumn said they couldn’t believe the university had sent such a missive and they wanted to be removed from all future lists and never hear from the place again.  Ouch!

I quickly sent off an email to the VP of Public Affairs saying, essentially, “your brand is on fire.”

Brand wound self-infliction isn’t as uncommon as you would think. The Washington Post recently produced marketing fliers promoting a series of private, sponsored off-the-record dinners between policymakers and journalists that set off a firestorm of controversy about whether or not the Post could maintain its brand of journalistic impartiality.

So, how to choose the correct medium for your message?

1. Know Your Audience. It’s important to know how your audience prefers to be communicated with.  I recently sat on a marketing panel at an independent schools conference and one audience member asked whether they should be sending out emails or Facebook invitations to their alumns. I responded with another question “have you ever asked them?”  It’s really important to periodically query your target audience(s) about how they like to be reached.  A quick email survey using a tool such as Survey Monkey can suffice.

2. Know Your Options. Trying to jump-start a conversation that goes on beyond your initial contact? A Facebook page or Linked In group might work best.  Trying to get customers to respond to something new? Offer a clickable coupon link that also takes them to other content you want viewed. Want to reach potential donors? Send them a link to a You-Tube video that tells a short but compelling story about real people benefiting from your organization’s work.  And be wary of e-newsletters. If you must send them, make sure they have easy navigation and clickable links to full articles (one group I support still sends a PDF–yuck!).

3. Know Your Limitations. Donors and customers don’t want to hear from you every day. Prospective donors and customers want to hear from you even less. So be thoughtful about your communications tool, and then the content you deliver with it.  Offer information and connectivity that is truly useful to them.

4. Know Your Internal Content Generators. Yes you have standards and best practices. Surely my alma mater does. But clearly not everyone knows them. That’s because users/content generators are everywhere, not just in the PR office. Educate early and often. Rinse and repeat.

5. Know Your Power. Electronic and social media, when used correctly, can greatly magnify and support your brand.  Use them well…or else.

COMING THIS MONTH (Wed, July 29th, 1PM EDT): Free Teleconference on Helping Your Board Support Your Auction Success. For more information/to register, click here.

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