May 14, 2008

Biznology Blog by Mike Moran

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Do Your Customers Believe Your Advertising Claims?

Hype soft drinkOne of the biggest changes the Internet has wrought (I love saying the word "wrought") on marketing has been the death of hype. People just don't believe your claims anymore. They are looking for documented, verifiable benefits. It reminds me of the nuclear arms negotiations between the U.S.S.R. and the U.S., when the motto was "Trust, but verify." Customers don't blindly put their trust in advertising claims anymore, but they do want to trust those they buy from. As marketers, we need to figure out how to win that trust, and that won't happen following the old hype play book. If you're concerned that your claims have that hollow ring or that your customers might be letting your promises go in one ear and out the other, read on.

You see these kinds of claims all the time: "If you can find a lower price than ours, it's yours free." Now, how many freebies do you think they've given out? If no one believes it, then why do we keep saying it?

Or maybe your claim is just vaccuous: "Quality since 1923." (Before 1923, it was utter crap.)

Or your claim is boring: "Your local hardware store." Um, I kinda knew where you were located, thanks.

All this was brought to mind as I watch the steel-cage match being waged by companies that want my cable TV, Internet, and land-line phone business. They both offer a "triple play" package that seems about the same price to me. They each seem to like to instill fear about the other by talking about "phone company TV" or "cable company phone service" as though their competitor has a corner on bad will. (Face it, you two, no one likes either one of you.)

They argue a lot about who has the best package for HDTV, but I don't really understand how they count how many channels there are, so that goes over my head. (I wouldn't even know how many channels I get now, HD or not.) I similarly can't figure out what the difference is in the phone service from each.

But my favorite is the speed comparisons for the Internet service. This one I actually can understand. They each seem to delight in comparing how much faster their fastest service is compared to the competitor's slower service. Which just confuses all those folks out there into sticking with dial-up. (I had to personally walk my in-laws through the decision making process so they could pick one.)

I wonder why they can't just say, "Hey, ours is slightly slower than the competitor's [or about the same or slightly faster] but that isn't what you care about. Our price is about the same, too, so don't look at that either. What you really care about is..."

Now, I am guessing that I know. It's because they don't have much to say. Now, I know that cable companies usually don't have a contract to sign (so no early termination fees) and that phone companies often throw in installation or equipment for free (one was giving away HDTVs around here recently), so why aren't they talking about those things exclusively? Maybe I am naive (OK, OK, I know I am naive), but I think that there's just too much out there designed to fool customers. And it backfires.

Some people (like me) see through at least some of it, and we then doubt everything else that is said that we don't understand. Others (like my in-laws) glaze over and remain frozen in time, choosing neither option. Now, I am sure that some people really are fooled and go along for the ride in one car or the other—the companies wouldn't advertise this way if it never worked—but I think the long term damage they are causing themselves is really sad.

Right now, they look at things as though there are only two players, but that will change. What would happen if a cell phone company bought a satellite TV provider (or vice versa)? What will happen as cellular broadband or Wi-Max spreads? And if none of these things happen, something else will.

Sure the phone companies and cable companies can adapt to the new technology, but they should expect more competitors, not fewer. And when the competitors come in, don't be surprised if they aim for more authentic claims as a differentiator.

I know the old joke that says that if you can fake authenticity, then you have it made. So I don't expect human nature to change. But as customers get smarter and smarter, your advertising claims need to keep up. P.T. Barnum said that no one ever went broke underestimating the intelligence of the American public, but I personally think people will go broke doing that soon.

Posted by MikeMoran at May 14, 2008 6:09 PM

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Comments

i would have to believe that a lot of them do... thats how we are still in business :D
-Jerry

Posted by: Risk Management at May 15, 2008 6:12 PM

LOL! I love this sentence.

"Or maybe your claim is just vaccuous: "Quality since 1923." (Before 1923, it was utter crap.)"

It's amazing how many brands uses that =P But at least it's like adding credability. Thanks for the info though. Cheers.

Posted by: zohai at May 20, 2008 4:16 PM

Ha ha, I'm also LOL with that. Advertising is the most important part on marketing your product so a perfect and correct advertisement will usually lead a boost of sales. Great articles, Thanks.

Posted by: designer cufflinks at May 21, 2008 2:34 AM

Advertising is not a simple thing to do. To get the attention from potential customer it is not an easy job. An interesting and easy to remember advertising is the perfect choices to promote your products or services. Great articles!

Posted by: Southwest Rugs at May 25, 2008 3:00 PM

Truly advertising is a skill to get consumer's attention. It's not easy. Advertiser has to purpose the idea in a correct way where the contents should not offend any other competitor. But here it seems like you have a creative brain to make a good commercial. good article!

Posted by: golf travel bags at May 29, 2008 1:46 PM

I do take advertising as a career. There are much to learn each day. How to get clients attention is not an easy task. Creative is one skills you must have to becoming success.

Posted by: home directory at May 30, 2008 8:36 AM

Advertising is the most effective way to boost up business. Lots of way to advertise and no doubt the most creative will be the attention of the client.

Posted by: hair loss at June 1, 2008 1:42 AM

I always like to see a good advertisement at television. I think a quality advertisement shows the quality of the company on how they really care for their customer need.

Posted by: irish gifts at June 1, 2008 2:25 PM

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