DraftFCB | 2010 Agency of the Year

New Year Resolutions: what are the chances?

// December 6th, 2010 // No Comments » // Catalyst

The poor old evergreen tree is unceremoniously ripped from its pedestal and lugged to a temporary home propping up the side of the garage; the prancing decorations are jammed back into their plastic bags, consigned to oblivion for another eleven months; and the recycling bins groan under the weight of discarded boxes and the remnants of gaudy wrapping paper. Yes, Christmas has left the building.

Time for those legendary New Year Resolutions. But how likely are they to change our behaviour as we head towards 2011?

Not very, according to those who might be expected to know what they’re talking about. A 2009 study by psychologists at the University of Hertfordshire asked 700 people about their strategies for achieving New Year resolutions. Their goals ranged from losing weight or giving up smoking to gaining a qualification or starting a better relationship. Alas, just 22% had managed to stick to their resolutions. Of those who failed, many had followed the spurious advice of self-help gurus – which apparently almost guarantees disaster.

Of the 78% who lost their way, many had focussed on the downside of not achieving the goals; they had suppressed their cravings, fantasised about being successful, and adopted a role model or relied on willpower alone. According to the researchers,

“If you are trying to lose weight, it’s not enough to stick a picture of a model on your fridge or fantasise about being slimmer.”

The University of Hertfordshire researchers reviewed the efforts of those who did successfully change their ways, and found that people who kept their resolutions tended to have:

1. broken their goal into smaller steps
2. rewarded themselves when they achieved a small milestone
3. told their friends about their goals
4. focussed on the benefits of success; and
5. kept a diary of their progress

The tradition of making New Year Resolutions reportedly dates back to the ancient Babylonians, who believed that what people did on the first day of the year affected what they did for the rest of the year. Today, of course, people believe that the New Year is a chance to start over again or change bad habits.

So are we doomed to failure, as so many seem to believe?
People who planned a series of smaller goals had an average success rate of 35%, while those who followed all five of the above strategies had a 50% chance of success, the study found.
If that sounds too much like hard work, consider the pronouncement by Mark Twain, who had a view on resolutions (as he did on most things):

“Now is the accepted time to make your regular annual good resolutions. Next week you can begin paving hell with them as usual.”

Change Thy Customers

// December 6th, 2010 // No Comments » // Catalyst

The Loyalty Guide (Wise Research Ltd) tells the tale of the owner of a small UK-based suburban supermarket who had twelve months’ notice that a large national supermarket would be opening right across the road from his much smaller store. He realised that without major changes his business would not survive. What this operator did was simple but smart. The suburb in which he was situated was mixed, comprised mainly of low-cost housing but also including a very exclusive area. Many of his customers were low earners who bought their basic requirements every day or two from him – in essence, what they could carry home in a couple of bags. He knew that they would migrate to the lower prices and bigger ranges of the big chain.

However, a considerable number of the more wealthy people would call in on their way home from work to pick up bread and milk and a few odds and ends. He started noting what they bought, and what they never bought. Over the months, he stopped ordering products that they never bought, and increased his range of things that they did buy. Over the year, his store slowly changed from a small supermarket to a very big delicatessen. His wealthy customers told their friends and the composition of his customer base changed from mainly low earners to mainly high earners. When the supermarket opened over the road, his low earners did migrate, but he hardly noticed the difference.

The example is retail-focussed but there are implications for all businesses. How well do you know your customers? What do they buy and (perhaps more importantly) what do they not purchase from you? Which customer segments are the most profitable and could/should your products or services evolve to better meet their needs?

“All things to all people” may have been a sound business strategy for a general store back in the day, but it’s not much of a plan if you’re competing with category killers, Everyday Low Pricing and the Long Tail of the Internet.

Focussed Deterrence

// December 6th, 2010 // No Comments » // Catalyst

Scotland’s Violence Reduction Unit has taken an innovative approach to tackling Glasgow’s gang culture, which is founded on turning the power of social norms against gangs. Previous initiatives – including foot patrols and crackdowns on knife crime – had achieved only short-term success. Then Scotland’s Violence Reduction Unit turned to a US programme called the Cincinnati Initiative to Reduce Violence (CIRV).
CIRV is based on the premise that a majority of violence stems from respect issues, rather than directly from drug market-related conflicts. As such, it focuses on disrupting the group dynamic which promotes violence as a method of addressing displays of disrespect.

A major aspect of the programme: CIRV identifies the key actors who generate violence in Cincinnati, the groups in which these individuals are enmeshed, and the relationships between the groups. Representatives from these groups are convened as needed to receive a specific message of deterrence and are told to relay this message to others in their group. Because many of these individuals are under probation or parole supervision, there is legal authority to mandate their attendance at “call-in” sessions.

During the call-in sessions, a clear and consistent message of nonviolence is delivered by law enforcement officials, social service providers, and community members.

Law enforcement representatives explain there will be focused scrutiny on subsequent violent incidents; the next homicide will result in swift, targeted enforcement by any legal means available of the entire group that is affiliated with the individual responsible for the homicide. Though only the shooter will be held accountable for the homicide itself, the ongoing criminal activities of other group members will receive increased scrutiny by law enforcement based on any past or future criminal behaviour.

Service providers present alternatives to violence by offering job, educational, and social services to those individuals who want them. Community members demand for an end to the violence, articulating the damage it produces and invalidating any excuses for the violence.

The general message to be conveyed is:

“We will help you if you will let us, but we will stop you if you make us.”

These messages are designed so that group members perceive they have a face saving exit from a violent lifestyle their choices have led them into.

The programme has shown significant benefits: in Cincinnati, gang-related homicides fell by 50% in the first nine months. These improvements appear to be enduring – once a new social norm has been embedded, it becomes self-sustaining.

In Scotland, the Violence Reduction Unit is part of a ten-year plan to reduce violence through a combination of enforcement and attitudinal change; the long-term success of the programme will depend on both.

Big Brother’s Neighbour is Watching You

// December 6th, 2010 // No Comments » // Catalyst

The UK famously has more CCTV surveillance than anywhere else in the world. As a result most Britons are casually accepting of the reality that they are likely to be filmed at any time they go out in public. And indeed Big Brother is alive and well and living in a number of top-secret locations throughout Britain, scanning the crowds for terrorists, petty criminals and antisocial behaviour on an ongoing basis.

And yet the sheer number of CCTV cameras deployed throughout the Emerald Isles poses the question – can there possibly be enough watchers to keep track of every camera? If CCTV monitors a crime in progress but nobody is watching, is the system working? Will the country’s evildoers conclude that it’s unlikely their activities are being monitored in real time and so it’s worth taking a chance?

Private Enterprise to the rescue. A controversial initiative called “Internet Eyes” has begun crowdsourcing surveillance. In a high-tech version of “peeking out through the curtains”, Internet Eyes has signed up concerned British citizens to monitor live CCTV feeds and report suspicious activities. The busybody has become corporatized!

Thankfully for the security of the nation, the Internet Eyes programme is thus far restricted to CCTV footage in business locations (eg dairies and other retailers); and participating viewers are warned that “misuse of personal data may be a crime under Data Protection Laws”.

There are plenty of dangers (which is why the Internet Eyes programme is controversial). Invasion of privacy is a constant threat – “that’s not her husband she’s with, in that bar”. And, with CCTV coverage so pervasive, the cameras simply become part of the furniture (and thus unconsciously ignored). Being observed doing something inappropriate or embarrassing may not have legal or public safety ramifications – but if the civilian observer has his or her own agenda, the unsuspecting British citizen may stumble into a whole different set of problems.

Real Reality

// December 6th, 2010 // No Comments » // Catalyst

Most reality shows offer up entertainment value but usually not a whole lot more, either for the participants or the audience. Yes, there are the occasional winners such as Susan Boyle whose life is totally transformed as a result – but for most, it’s the obligatory fifteen minutes of fame and then on to the next flavour du jour.

Which is why a programme currently running in Wisconsin caught our eye. It’s called Project Money, and although the scheme is being documented by local broadcaster WKOW, it’s primarily a marketing initiative run by the Summit Credit Union, a Wisconsin financial institution.

Project Money is now in its second year after a well-received initial outing. The project began in March 2009 with an invitation to local households in the region to share their financial challenges and dreams – and put themselves forward to be selected for a seven-month project to “to learn how to ‘do more’ with their money and achieve financial success in any economy.”

In the first year, the Summit Credit Union chose four participants that constituted a representative cross-section of their target markets:
a family of five busy remodelling their house and needing to get their spending under control
a young family who had recently experienced big life‐changing events requiring a big budget overhaul
a single‐parent family of two playing catch‐up on bills and mortgage payments following a divorce and layoff; and
a single, first‐generation college student working full‐time and struggling to dig herself out of debt

The objective of Project Money: for participants to increase their savings and decrease their debt (whilst learning good money management habits for life). The participant who achieved the greatest improvement in their financial situation stood to win $10,000.

Each of the participating families met regularly for seven months with a Summit Financial Coach  whose role was to provide them with the plans, tools and advice they should need to accomplish their financial goals.
Their ongoing progress and unique stories were featured on WKOW Channel 27, on Summit’s web site and online blog, as well as in various media outlets and member communications.

The local community was also invited to take part in the Project Money challenge, through web-based tips, tools and challenges intended to help consumers achieve their own financial goals.

WINNING WAYS
So what happened? The competition was judged a great success, and made a huge difference in the lives of the four family participants, as well as community members who followed their progress during the seven‐month‐long programme. Not only did they learn how to ‘do more’ with their money and achieve financial success, the four competing families collectively boosted their savings by $8,927 and decreased their debt by $32,712.

And the big winner? Single mom Rachel, who increased her savings by $3,316 and reduced her debt by $14,407.  How did she do it?

“Throughout Project Money, I established many new habits, such as balancing my checkbook before I go into a store, delaying purchases to make sure I really needed it, grocery shopping instead of eating out, spending at garage sales or second-hand stores instead of at retail and — what made the biggest difference — living on what I make vs. supplementing my income with my credit card.”

And how did Summit Credit Union fare? Despite the economic chaos that was Fiscal America in 2009, Summit had a strong year and even made a profit. Project Money is indicative of the types of community support initiatives that the Credit Union (a financial co-operative) is undertaking in its region, often with excellent results.

From a marketing perspective, Project Money was right “on brand” for Summit. Community Engagement is at the heart of the organisation, and encouraging fiscal responsibility (whilst demonstrating the core skills of Summit advisers) resonated strongly with more commercial messages. No wonder Project Money is back again for 2010.

New Ways To Pay

// December 6th, 2010 // No Comments » // Catalyst

“And how would you like to pay for that, madam?” We’ve come a long way from the days when cash was king – now it’s almost an affront to walk into a retail establishment and discover (often too late) that they don’t accept EFTPOS.

Don’t get too complacent, though – there’s a constant flow of new offerings and fancy new technologies that are busily taking market share away from the reigning monarch of money. Here’s a quick snapshot of what’s already on offer (or coming soon):

If you run a connected iDevice (eg iPhone, iPad, iTunes), payment is simple through an aligned credit/debit card account; similarly, if you own an Amazon Kindle, you’re just one click away from payment for any purchase.

According to Planet Retail, Best Buy Europe has formed an alliance with Monitise to create a new mobile shopping service called ‘Mobile Money Network’. The service is expected to launch in 2011. Mobile Money Network will enable consumers who have signed up for the service to simply input a product code (found on either a website, promotional leaflet or email) into an application on their mobile phone for the transaction to be processed.

In August Visa Europe announced the launch of In2Pay, a system which uses a microSD card inside a mobile phone to make transactions. The technology turns your phone into a contactless credit card, which can simply be waved at Point of Sale to pay for your purchases.

Global payments giant PayPal is experimenting in this area through a partnership with Bling Nation, a start-up providing stickers that can attach to mobile phones, which would link to special terminals at stores.
In November, US telcos AT&T, T-Mobile and Verizon announced a joint venture called Isis that would also allow consumers to pay at checkout by waving their phone near a terminal. Google has also demonstrated how phones with a new version of Google’s Android system can have similar functionality.

Contactless payment has been available to US motorists for many years. The ExxonMobil Speedpass was first introduced in 1999 and currently over 6,000 petrol stations and convenience stores across the US accept payment by SpeedPass. The Speedpass itself comes in the form of a key fob with embedded chip, which the motorist just waves in front of the RFID enabled terminal to complete the transaction.

In October, PayPal introduced a payment service for Web sites selling digital goods like online games, music and news articles, allowing micropayments, or transactions of just a few dollars.

US iPhone users can now deposit money in their PayPal accounts by using their phone to photograph a personal cheque.

Two Iowa programmers recently unveiled a new iPhone application that will not only allow consumers to pay for purchases at retailers and other businesses digitally, but also send money from one person to another. The application doesn’t use traditional credit or debit payments, but rather money loaded specifically into the program from those accounts.

In other words, don’t get too attached to the latest generation of chip-and-pin bank cards currently making their way into our wallets and purses – they may not be with us for too long.

Changes We’d Like To See

// December 6th, 2010 // No Comments » // Catalyst

7. Devices labelled “Plug and play” that really do work the way they should, without us having to interpret the manual or call up tech support

6. Facebook friends who lead deep and meaningful lives and post thoughtful  compositions to their wall, rather than the trivial or the self-indulgent (“Riding on a wave of self-loathing. If only you could understand.  None of you ever will.”)

5. International journalists who ask intelligent, respectful questions of New Zealand authorities

4. Parking meters with “remote top-up” capability, so that if we’re running late we don’t have to do a mad dash back to our cars

3. Website deals of the day that are for things we’d actually want to buy (even if we weren’t being bribed by supposedly deep discounts)

2. Re-education for those driving bright red cars, to teach them that a red traffic signal is not their own personal “Accelerate” indicator

1. Christmas experiences that touch the heart