August, 2009

Promotion Commotion

Since an early age I have been a makeup addict. Even now in my adulthood I still have a soft spot for all things beauty related. This probably is the reason why a huge chunk of the Twitter accounts I follow are beauty companies and bloggers.

A few weeks ago I noticed a nail polish company named Zoya announce on Twitter that they wanted to reach 5,000 followers in a little over 2 weeks. Seems ambitious, right? But Zoya upped the ante with an incentive. If they reached their goal and you were one of their first 5,000 followers, Zoya gifted you with three free nail polishes of your choice. Zoya made their goal and 5,000 nail polish fans were more than happy to receive their free gift. Now a few weeks later they are still all the buzz in the beauty world as everyone is now Tweeting about their orders arriving and what colors they received and loved.

Social networking is a bit tricky due to its tendency to be extremely popular one minute than die down the next. It takes some effort to keep things interesting online. A giveaway is a great way to keep your social networking fresh. Promotions like this one are beneficial because they not only encourage new followers but keep the interest of your current ones as well. They are effective because they provide an incentive but also promote word of mouth advertising which everyone knows is tried and true in all fields. This type of promotion also is a great way to interact with your audience and make them feel appreciated. Giving a little to your consumers will end up being a great reward to you as well.

Keep It Simply Silly

I love baseball.  I used to have a coach that always said, “Keep it Simple
Silly!” The same can be said in business.

While on a project in London for Discovery Channel, we found that
Discovery’s shows are pretty popular in Europe/Middle East/Africa.  This
means a lot of money is spent translating them into numerous languages.
Every time a show was translated into a different language, a regional
Language
House (in the target country) was hired to give the show an
authentic sound and feel.  Not only did London have to ship the show on a
new physical tape to the Language House, but the Language House had to
ship back a new physical tape with the translation as well.  After close
examination, we found that there was a potential $3MM per year savings if
we just cut out shipping physical tapes.

Briefly, here are the numbers.
.    (SHIPPING COST  X  2) + (Tape Cost X 2) = Equals Cost per Episode
.    15 Episodes Per Season on Average
.    20 Different Shows Per Single Network on Average
.    6 Different Networks (Animal Planet, Science Channel, Etc)
.    28 Different Languages
.    $20 SHIPPING COST
.    $10 TAPE COST

Our team recommended a video file transfer solution that would cost around
$500K to implement.  No more tapes, no more shipping.  We saved the
company 8.5 Million Dollars over a 3 year span, including the one-time
$500K technology investment.

In my 15 years as a consultant, I have found that sometimes the answer to
being more profitable is within your own walls.  I liken it to the trade
deadline in baseball every July, where teams are scrambling to make a big
trade, but sometimes the answer is within their own organization.

For my project with Discovery Channel, the difference maker was within our
very own walls.  As you can imagine, we hit a homerun…