In 2015, the CEO of the credit processing company Gravity Payments, Dan Price, decided to give all his employees a pretty hefty raise – a $70k salary, to be exact. At the time, the move was met with equal parts celebration and disdain – so what came of this choice?
Before we dive in, though, it’s worth noting that Price’s move isn’t exactly feasible for every business – and it might not even be necessary.
The cost of living in Seattle (where they are headquartered) is much higher than other places in the US and the business, nestled in the tech field, wasn’t facing some of the struggles that other small businesses must tackle. Not to mention, Price was in a position where he could actually make this sacrifice.
Many small business owners are just struggling to get by.
Still, as an individual case study, the story of Price and Gravity Payments is pretty interesting.
Price was first inspired to make the raise when confronted by his own struggling employees. At the time, Price was paying market rates for salary – starting at $35k – but in the face of expensive Seattle real estate, many of his employees were struggling to get by.
It wasn’t easy.
Price slashed his own salary, sold his stocks, mortgaged his home and prepared to rise or fall alongside the company.
Early on, he also lost several high level employees who were frustrated that junior employees were suddenly making as much as they were. Add in the backlash Price faced when his move made national headlines and it’s safe to say the decision wasn’t all smooth sailing.
Despite the rough start, though, Gravity Payments is doing better than ever. The business has practically tripled in worth and they’ve doubled their employee count to boot. Price is on pretty good terms with his employees too.
In a reversal of the traditional “charity” type story (you know the ones, where people already struggling help a co-worker who has it worse), Price’s employees recently banded together to buy him a new car.
Still, there’s one metric Dan Price is most proud of: How much his employees have been able to grow in their personal lives. Employees able to purchase homes has jumped from 1% to 10% and they’re not just settling down, they’re starting families too. Since the announcement, the team has had over 40 babies – a huge increase from the “zero to two annual babies” from before.
Again, what Price did is in no way the only way to improve business and employee happiness, but kudos to Price for putting his money where his mouth is when it comes to trying to improve the lives of his employees.
The use of offline marketing can still be advantageous in a digital world
(BUSINESS) Offline marketing is usually skipped over nowadays for the sparkly, shining ‘digital’ marketing strategies, but don’t forget the roots.
Everywhere you look, people want to talk about digital marketing. In fact, if you don’t have a digital marketing strategy in today’s business world, you’re not going to last long. But just because digital marketing is popular, don’t assume that offline marketing no longer yields value.
When used together, these strategies can produce significant returns.
“Some people will argue that traditional marketing is dead, but there are several benefits to including offline advertising in your overall marketing campaign,” sales expert Larry Myler admits. “Combining both offline and online campaigns can help boost your brand’s visibility, and help it stand out amongst competitors who may be busy flooding the digital space.”
How do you use offline marketing in a manner that’s both cost-effective and high in exposure? While your business will dictate how you should proceed, here are a few offline marketing methods that still return considerable value in today’s marketplace.
1. Yard signs
When most people think about yard signs, their minds immediately go to political signs that you see posted everywhere during campaign season. However, yard signs have a lot more utility and value beyond campaigning. They’re actually an extremely cost-effective form of offline advertising.
The great thing about yard signs is that you can print your own custom designs for just dollars and, when properly stored, they last for years. They’re also free to place, assuming you have access to property where it’s legal to advertise. This makes them a practical addition to a low-budget marketing campaign.
The fact that you notice billboards when driving down an interstate or highway is a testament to the reality that other people are also being exposed to these valuable advertisements. If you’ve never considered implementing billboards into your marketing strategy, now’s a good time to think about it.
With billboard advertising, you have to be really careful with design, structure, and execution. “Considering we’re on the move when we read billboards, we don’t have a lot of time to take them in. Six seconds has been touted as the industry average for reading a billboard,” copywriter Paul Suggett explains. “So, around six words is all you should use to get the message across.”
3. Promotional giveaways
It’s the tangible nature of physical marketing that makes it so valuable. Yard signs and billboards are great, but make sure you’re also taking advantage of promotional giveaways as a way of getting something into the hands of your customers.
Promotional giveaways, no matter how simple, generally produce a healthy return on investment. They increase brand awareness and recall, while giving customers positive associations with your brand. (Who doesn’t love getting something for free?)
4. Local event sponsorships
One aspect of offline marketing businesses frequently forget about is local event sponsorships. These sponsorships are usually cost-effective and tend to offer great returns in terms of audience engagement.
Local event sponsorships can usually be found simply by checking the calendar of events in your city. Any time there’s a public event, farmer’s market, parade, sporting event, concert, or fundraiser, there’s an opportunity for you to get your name out there. Look for events where you feel like your target audience is most likely to attend.
Offline marketing is anything but dead.
If your goal is to stand out in a crowded marketplace where all your competitors are investing heavily in social media, SEO, PPC advertising, and blogging, then it’s certainly worth supplementing your existing digital strategy with traditional offline marketing methods that reach your audience at multiple touchpoints.
What you can learn from Ulta Beauty’s marketing mix up with Kate Spade
(MARKETING) Ulta Beauty’s insensitive marketing email surrounding the Kate Spade brand can be a lesson: Be cautious and respond to crisis appropriately.
Last week in an email sent to subscribers, Ulta Beauty made light of designer Kate Spade’s suicide. Ulta said the lighthearted connection to Spade’s death was unintentional. The email sparked anger across social media and some national news outlets picked up the story. In an emailed response to the New York Post, Ulta apologized to their customers, their Kate Spade corporate partners, and Kate Spade’s family. They ended by saying they will strive to do better.
Words matter. Messaging matters. Hopefully, we can all learn a lesson from this painful mistake.
Check your tone. It’s one of the early things we teach writing students. The tone should match the content. If the icon you’re using to sell a product ended their own life, perhaps light and fun isn’t the tone you should embrace. Ever. But most businesses won’t be dealing with well-known people whose stories have been shared with millions. It’s up to business owners and those who write their copy to ensure the tone matches the message.
Always have a second pair of eyes look over words going out to the public. Or even a third and fourth. Often those in the creative room are brainstorming messages, reworking copy, and looking for the perfect pitch. And they get it. It sounds good, looks good, is easy to say and share, and, best of all, it will lead to sales. Having a multi-person system in place to check the copy and someone separate to give final approval can help catch the oh-my-God-no great words, but absolutely not pieces of sales copy.
Listen to your customer base and have a system in place to listen quickly. All businesses need systems for immediate customer response in play. Ulta caught their so-called oversight quickly. But they’re a huge brand and Kate Spade was a beloved fashion icon. The negative response went viral and they had a giant mess to clean up. Companies make messes with their words often, messes that don’t immediately go viral but lead to real pain for consumers. When customers ask you to stop a message, listen to them and act.
Apologies don’t make excuses. If you’re caught in a messaging mess of your own making, I’m sorry goes a long way. If needed, follow that apology up with a plan to show you’re serious about “doing better” and making sure this never happens again.
If you find yourself in a place where a public apology is necessary, consider hiring a crisis manager to help with that plan as well.
Part of business today is constant communication with consumers. Try to have systems in place so you don’t find yourself in a “learning to do better” moment like Ulta. Words aren’t just about sales. They have power. Remember that.
Experience Design & Marketing: Where do they intersect, where do they diverge?
(MARKETING) The field of marketing has been around the sun and back, whereas experience design is a newer, but growing field. Where do they overlap?
Identify, understand, educate, promise, and fulfill. Is that marketing or experience design? Is it both? The closer we get to marketing in the digital spaces* being truly organic and less about carpeting mobile sites with pop-ups and interruptions, the more marketing and experience design (XD)** start to intersect.
Software experiences used to be only about getting jobs done and the learning curve it took to operate that software was accepted as unavoidable. There was no expectation for ease of use and the competitive landscape was far smaller. The same can be said of marketing; when the pool of offers and services were drastically smaller, you won with volume or referral. Now there are deep expectations for human-computer interactions, expectations of low friction when dealing with a system or entity, and more choices than there are biting Tweets. Volume rarely wins anymore unless the traffic spend is massive or the niche is narrow. Both of these are the result of crowded, loud marketplaces and way more noise than signal. So what did marketing do? What did XD do? They turn to delivering more curated, personal interactions and messages. Those are now driven not by gross demographics and forty pieces of car dealership push cards in my mailbox, but by extrapolated wants and needs taken from human voices and applied to custom outreach.
- XD uses ceremonies and activities to discover and define our version of market evaluation and segmentation.
- XD prototypes and iterates based on focus groups, unmoderated testing, business requirements validation, and the things they expose. That’s our audience testing.
- XD seeks to remove the uninteresting, unused, or unnecessary parts of a decision tree (journey if we must lingo) based on response and introduce a version sans those things to drive closer to the intent and outcome. This is our nurture.
- XD uses continuous feedback to improve, refine, and in some cases recommend next steps, products, adjustments, or augmentations. That is our remarketing/retargeting, it’s how we adjust the “campaign”.
And those are only the most obvious fibers of the common thread the disciplines share. Others with a deeper knowledge of both topics can surely add to this list tenfold. The essence of this examination is to ask the question, should marketing and experience design work in tandem? Under one shingle? Can they coexist as a federated faction under the larger umbrella of CX?
They are both a part of a unified journey and the natural progression from first exposure to adoption to “damn I love this thing, I think I’ll TikTok about it” for products and services. That kind of melding could serve a common goal; seamless brand engagement.
The people that consume whatever is being offered don’t see us, the company, the thing, as a cluster of siloed pods vaguely marching in the same direction. They see us as a whole and our disciplines should support that impression.
Marketers and Experience folk– integrate! Learn each other’s wares and purposes, share things that work and definitely those that don’t. XD gang, I mean really combining to achieve specific goals. Don’t just send them a Jake Knapp YouTube, find common goals. And marketing kin, this means more than citing some Sprinklr data and the latest NPS around trending SEO. Wonder Twin into a test and prove machine, use HCD tactics to undercover new copy strategies, and test it with a group in a Pepsi/Coke standoff. I know you are A/B-ing your work, but you can narrow that lane before you traffic it. We can learn from each other, we can benefit from one another, greatly.
I’m betting we can forge something slightly fresher than passing people through our business cotton gin and expecting them to feel like we are one. What are the afterimages that last from the time I see a LinkedIn post, follow to the affiliate, subscribe/buy and actually get something good out of the product? Don’t tell me there isn’t a marketing/design love story in there.
I look forward to following up on this with an actionable plan and (hopefully) killer outputs.
Be well, feel good, and know peace.
*Experience Design as a proper name encompasses exactly what is in the eponymous name; the experience is every interaction, passive or active, through the entire cycle. From the first shred of awareness of a product or service to the lasting relationship made– that is experience in this context.
**I’m not going to call it Digital Marketing anymore, pretty sure we aren’t doing direct mail along with our IG ads
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