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JUST WHEN YOU THOUGHT IT WAS SAFE…

Few consumers probably noticed this weeks announcement regarding the next generation standards for Broadcast Television.  The Advanced Television Systems Committee (ATSC) announced the new technology as  “a complete suite of ‘Next Generation’ services for the conventional fixed DTV receiver viewing environment.”  They call it A/72.

Just when you thought it was safe to buy a new television, another technology is announced.  But wait this is cool stuff.  Based on the MPEG-4 standard, this new technology allows larger files to pass through smaller spaces, and it’s scalable.

HIGHER THAN HIGH DEF?

Of course!  You didn’t think that Blu-Ray DVD and 1080p HD was the final destination did you?  What happened over the last 50 years in broadcasting will happen again.  A broadcast format relies on standards that are fixed, whereby television sets and set-top boxes expect to see a certain type of signal required to create an image.  And that is what all the fuss has been about since the late 90’s when the FCC announced the end of analog television.  But technology advancements never stop.

ENTERTAINMENT ANYONE?

As analog technology has slowly retired over the past few years it has taken a few debatable formats with it. Think film!  However, the movie you see tonight at the theater will still most likely be projected by an analog film system.  Why, because it is higher than High Def.  And in reality, Hollywood wishes it wasn’t so.  Maintaining analog technology in a digital age becomes evermore expensive.  Obviously the ultimate goal is to push all digital content via an internet protocol.  And that is why this announcement is so important.  A scalable format using smaller file sizes?  And capable of breaking through the resolution ceiling?  Count me in.

For several years now our industry has used cameras capable of shooting at higher resolutions than HDTV.  Why, because we can, and it looks better.  Now sit back and watch manufacturers race to bring this new technology into the home.

Here we go again!

It’s been two years since Google bought YouTube for 1.6 Billion (yes that’s a ‘B’) in stock.  Skeptics crucified the deal saying it was over priced.  At that time YouTube was serving over 100 million user generated video streams. That’s a third of all video streams on the web.  The closest competitor, Yahoo, has only six percent of the web video market.

YouTube’s earnings for 2009 are expected to top 500 million.  How’s that for a Blue Ocean startup based around Affinity groups wanting to connect and share content based on interest.

Earlier this summer CBS paid 1.8 Billion for CNET Networks.  Not much was said about that deal.

The rise of the new consumer continues to be an amazing transformation.  And none of this would be possible without the affinity minded consumer.

Our Family has a Sunday tradition of eating lunch at McDonalds. My wife and I relax, read the paper and chat while the kids enjoy the play area. We have been doing this for years.

This past Sunday something interesting happened. Our 5-year old had gotten hurt and so my wife was carrying him, and she struggled to get the door open. I was following, wrangling the other 5 kids, and looking ahead I noticed the manager standing a few feet from the door watching her.  With no else around, he just stood there.  He didn’t lift a finger to assist…not even a twitch, comment, or “welcome to McDonalds”.

One of the primary reasons our kids enjoy this particular McDonalds is they offer mini ice cream cones for free. Fifteen minutes before we leave, I call out “ice cream time” and the kids get all excited and head up to the counter to get their weekly treat; noses barely poking over the countertop like small dogs trying to get morsels from the table.

Suddenly, the unbelievable happened. The manager informs us that free ice cream is only for ‘Happy Meal’ customers.  I instantly realized I was on the loosing end of poor customer service

For me, this event brings to light how important it is for companies hoping for Affinity Brand status to focus on customer service; not just ordinary “have a great day and congratulations, we got your order right“ customer service but “WOW, they really care about me” customer service.  Clearly, the manager doesn’t see a residual revenue stream where satisfied customers brag to other parents about how great they treat you at this particular McDonalds.  He only sees a family that buys hamburgers. My guess is that he has never taken the time to look at the name on the debit card so he can spontaneously say “Thanks for coming in today Mr. LaTessa.”

Let me make something perfectly clear. We love McDonalds and we generally deal with great, friendly, hard working staff. We also don’t have any unrealistic expectations about what McDonalds is going to provide us.  McDonalds will never (and can never) be an Affinity Brand. They are a brand built on convenience and nothing more. They succeed, not because their brand is timeless or of particularly high quality or because they have a committed group of followers; they succeed because their product provides a quick easy meal. There is nothing wrong with that, but if I had a product to brand, that is not the way that I would want it perceived.

Oh…by the way, the kids got their ice cream. My wife is an amazing persuader.

If you have ever had the opportunity of experiencing some of the best affinity brands in the world, you will notice one thing they all have in common; AWESOME CUSTOMER SERVICE.

You might have guessed QUALITY. And that would be a great guess as they share that as well. But today, we are talking about CUSTOMER SERVICE.

There is a significant difference between ‘the customer is always right’ and ‘the customer is always impressed’.

The best affinity brands put much more effort into impressing customers than they do trying to ensure customers are always pleased or happy. You cannot control the customer, but you can control your customer service efforts. Many times impressing the customer does as much to distract the customer from any issues you might have as it results in pleasing the customer.

Today, I walked into the Ritz Carlton hotel in San Francisco. From the time I gave the valet my car keys to walking inside to the registration desk could not have been more than 90 seconds. In those few seconds we were greeted by name, no less than four times. “Welcome Mr. & Mrs. Smith”. Sure they were all wearing ear monitors taking cues of our presence as we entered the hotel lobby, but most impressive to say the least. They could have said my room was not ready, or that I had to sleep on the floor. It wouldn’t have mattered. I was so impressed and cared for at that point, I could only focus on the details of how well we were being serviced.

Interestingly, a half hour later we received a call from the Intercontinental Hotel in Monterey (where we had just left), asking if our stay had been pleasant and suggesting that we were always welcome back. Later in the afternoon, my wifes cell phone rang and it was Land’s End clothiers asking if she had received her recent online order, and if she found everything to her ’satisfaction’.  Wow!  Now that’s customer service.

So, what did these efforts cost? Really very little, because these customer service tasks are part of the on-going processes already in place at each of these great companies. First and foremost, they each were using their human resources to make the connection. Next, they were timely in their execution.

ARE YOU LISTENING? Customer Service costs very little - and pays significant dividends! And it is a primary characteristic of Affinity Brands.

Watching the MTV Music Video awards this year was like witnessing a sincere best-effort attempt that failed. Let’s see, they only give out 8 awards on the broadcast and Britney Spears won 3 of them. Hmmm? Somewhere between Britney’s comeback speech and the outright disparaging remarks toward the Jonas Brothers’ purity rings - the program was dying a slow death. And they knew it.

And they have so many resources to work with. It remains an in-demand event. Filling seats with superstars is not a problem - yet.

Someone, who will remain nameless, walked into the room while I was suffering through the program and politely said,”too bad they have no Talent to work with!” I responded ratherly frankly, “there’s a big difference between Talent and Bravery. Bravery trumps Talent every time.”

I am continually amazed at the genuine talent in todays society. When I was in high school there may have been 3 of us that played guitar in the entire school. Today, two out of every three kids play guitar. And they really are better than we were.

With so much talent to go around, it’s simple - bravery wins out. Those who find opportunity do so because of their bravery toward exposing their talent to the masses. Real talent doesn’t dismiss stage fright.

So where does this leave MTV. To blame, I guess. It’s obvious to all of us, they had plenty of brave people in the room. This thing died long before it aired.

So I’m asking myself the question, “can presidential candidates actually be affinity brands”?

I spent a few hours on the road today and saw plenty of political bumper stickers. It appears that everyone driving a Toyota Prius is voting for Barrack Obama? What does this mean?  Is this reality? Scientific? Is Toyota passing out bumper stickers with every new purchase?

I realize not everyone driving a Prius will vote for Obama, but what I saw today would pass the test of market sampling, including margin-of-error.  Sure, I am intrigued by data and too often ask the question, “why?”

Of course Lifestyle ‘perception’ is a large part of affinity brands, but what is the basis for this connection with Obama? Is Obama the affinity brand, or Toyota Prius, or both?  I’ve heard both candidates suggest they will attract all audiences. Is this really possible?  Not for affinity brands!

And apparently not for Prius owners.

One of the things I most like about Affinity Brands is that they have to be grounded in ‘user verification’.

This really isn’t something that can be fabricated by marketing promotion. We regularly talk with companies seeking to transform their brand into an Affinity Brand, but the truth cannot be altered. Either your products are user-verified, or they’re not. So which is it?

Sure, we enjoy engaging those brands that are yet to be verified, and we really enjoy the discovery of those that eventually prove to be so. No doubt, there are many advantages for Affinity Brands in today’s marketplace. Consumers are looking for those brands.

Quality.

Community.

Timeless.