Creative Discounting

As we have learned in class, pricing can be a key way to reach customers. The price of a product or service can communicate a lot of things about a brand, but particularly, it suggests value. So what are some creative ways companies have played with pricing in order to send a message to consumers? Today's post looks at a few innovative discounts that help communicate value, engage customers, and break through all of that advertising clutter.

(#1) Starbucks Early Bird App

Starbucks has done a lot of things right when it comes to branding and customer engagement. One of the company's newer innovations has been the Early Bird App. The following video explains the way the app works (if you don't have time to watch, don't worry, I will give a basic run down below):

Starbucks EarIy Bird from Mate Nagy on Vimeo.

 So, the idea is for you to use the app as your alarm clock each morning (which means you're engaging with the Starbucks brand at least twice per day). When the alarm sounds, you can choose whether you "Wake Up" or "Snooze." If you decide to wake up, you are given a reward, which you can save and stock up on or use each morning. You have to visit your local Starbucks store within one hour of pressing the Wake Up button in order to receive the discount (which provides extra incentive for customers to go to the stores). And the age-old saying stands true with this app: if you snooze, you lose. That is, if you decide not to wake up and hit the Snooze button, you do not receive the discount, but you can try again the next day; and of course, you can still hit up Starbucks on your way to work and pay full price. In all, this app encourages you to get out of bed and seize the day with a cup of Starbucks coffee, by helping you break bad habits and providing an enhancement to the tool we are already using every day, the alarm clock on our smartphones. What's more, by encouraging customers to go to S-Bucks within an hour of waking up, the company essentially creates a happy hour effect, bringing more people in at a time when store traffic is low, and thus reducing the pressure during morning coffee rush hour. Another fun fact about this app: it was created by students!

(#2) BIOMAT Pop-up Restaurant

This idea was executed in order to motivate other restaurants to adopt a more sustainable model. The pop up restaurant popped up in Austria as part of Vienna Design Week 2013. Its unique discount model involved a meal discount proportionate to the weight of bio-waste donated by patrons; one kilogram equals one euro off the bill. The restaurant's kitchen used biofuel made from the biogas emitted from the bio-waste as its energy source. The result is a win-win-win situation: customers win by receiving a discount on environmentally-conscious food (and get to pat themselves on the back by contributing to sustainable energy), the restaurant wins by receiving a free energy source, and the environment wins by receiving less waste in landfills and having less fossil fuels burned into the atmosphere. Whether you value green business practices or not, I think we can all agree that this is a clever way to incorporate discounts that benefit both the customer and the company.

(#3) Troop ID

This discount service is aimed directly at those who serve or have served in the military. I found this one interesting because service members and veterans are a segment not often targeted; yes they are often celebrate in advertising, but I haven't seen many products specifically for them. In addition, having many friends and family who have served in the military, I've always been somewhat bothered by the awkwardness caused when one of them had to ask if a certain establishment offered a military discount. Well, Troop ID offers a clever solution to this problem. It provides a way for military members to verify their military IDs online and then be notified of the various discounts and exclusive offers available to them. The video below offers a nice explanation of the service. While the company's logo could use some work (yikes!), I found the idea to be a viable solution to a problem faced by veterans and military members.

There were a lot more creative uses of discounts I encountered when researching for this post, but I will keep it somewhat short. What I hope to have made more obvious, though, is the importance of incorporating discounts in a marketing plan. Who doesn't love the feeling of getting a deal?

Quizzes as a Marketing Tool

I have noticed lately that many of my Facebook friends are taking lots of quizzes: What State do you Belong in? What Zombie Apocalypse Character are You? How Would you Die in Game of Thrones? The trend, popularized by Buzzfeed, consists of quizzes determining -- well, anything you'd want to know. I'm not exaggerating, either; some of my personal favorites are What Arbitrary Thing are You?, Which Famous Turtle are You?, and of course, How Big of a Dick are You?. Seriously, check them out -- there is no limit to the level of ridiculousness they can attain!

These quizzes are seen as fun and entertaining, but do our FB friends realize this is a form of marketing? At least it can be, and Game of Thrones has capitalized on this opportunity by working with Buzzfeed to make a branded quiz for the show. Think about it: it's shareable content (a must for modern, integrated brands), it features the brand name in the title while trending on everyone's news feeds, it engages all sorts of social media users with the brand, AND it provides the marketing firm with lots of valuable consumer information. What's more, we as users provide this information willingly, without even realizing we're doing so! AND -- we enjoy doing it!

As a recent Marketplace podcast mentions (which by the way, I recommend listening/subscribing to; its a great way to keep up with business news) , the quiz fad will likely die out in little time. So, what will be the next new, creative way for brands to interact with us through social media?

A New Form of Payment

Social Currency

An exciting new trend is emerging in the marketing field. Josie has mentioned this trend in her blog, and I want to elaborate on this concept a bit. It's a way for firms to get product into consumers' hands and spread awareness across social networks. It's referred to as social currency. Allow me to explain: A few weeks ago, during spring fashion week, Marc Jacobs set up a pop-up store and rather than charging money for his Daisy perfume, he charged only social media. The store included props and backdrops which customers could use to set up their own photo shoot. Once they were happy with their photo, they'd Instagram, Facebook, or Tweet about the experience with a hashtag #MarcJacobsDaisy, and upon showing that post to the clerk, they would receive product at no monetary cost. What's even more neat about this example is that the more creative the photos/posts were, the bigger/better the product that was given in exchange. 

Think about the perceived value of this transaction for the consumer: A fun and entertaining experience -- plus high-end perfume at no monetary cost. Now, think of the value received by Marc Jacobs: buzz about the product and the brand (this story was also reported by several news sources which is a bonus for the company). It's a win-win! 

There is a mound of research which supports the idea of social currency, especially as it pertains to our generation and the one behind us. In a nutshell, we love free stuff. But what's more than that, we are completely willing to post about a brand on social networks in exchange for free samples/products. It's quite interesting to think about how different firms with different products could use social currency as a way to achieve its marketing objectives.

Here's a video that explains the Marc Jacobs pop-up store:

Car Play - What's it Mean for Marketing?

Before discussing what implications CarPlay will have on the marketing world, first get a better idea as to what CarPlay is (it's only a 40 second video):

Volvo touts this new feature as an improved driving experience, and I would agree that this would indeed enhance it. Most all of us are used to Apple's user interface, and would enjoy having the same apps and features that we already have on our phones. But what does this mean for the marketing world? Think analytics.

Oh, and what data they will have!
Given that Google has already figured out how to track virtually everything we do on our computers/mobile web devices, what information is left to take advantage of? What would be of interest to marketers? Perhaps what music we listen to and what we skip through, what news programs or podcasts we like to hear on the way to work, what routes we take to school, types of restaurants we Google Map on the way to lunch, how fast we drive.... all stuff that can be taken from a car app such as CarPlay.

Another Brand Interaction Point
What else does this mean for Apple? It means that perhaps one of the only places in which we are expected not to use our iPhones (even airplanes are now allowing cell phone use!) now has made it OK to do so. Voice commands and the familiar touch-screen interface have brought the iPhone to the car panel. The only place left to conquer is the doctor's office.

How will the Market React?
It sounds like Honda and Volvo are now offering CarPlay in new product lines, so what will other companies do? Will Toyota offer an Android-friendly platform? According to a recent Marketplace article I came across (http://www.marketplace.org/topics/business/not-quite-driverless-car-close), this phone-friendly feature is a "top selling point" for nearly 40% of car buyers; this means that most other car makers will likely follow suit with a similar feature. So, car companies can't ignore this feature that is in high demand from consumers, but what will they do about it? Will all car brands offer a Mac version and an Android version? Will we have to agree to terms & conditions about how our data will be shared/sold before starting the vehicle? Obviously that is sarcasm speaking, but it's worth asking yourself: as we become more connected, where in life can we just act without our actions being tracked and used for marketing purposes?  How far do we push the sacrifice of personal information for technological convenience?