Power transference is illusory

Restaurant's use the visit of a famous or powerful individual to sell the idea that this place is a must visit. Everyone wants to associate with powerful beautiful people and wants to frequent locations where these individuals congregate. Everyone wants the feeling of the illusory power transference. The problem is of course that it not real. When a local sports team wins a championship there is little tangible improvement in the lives of the individuals in the locality however everyone feels a sense of belonging and a surge of power from the success of the surrogate team.

Robin Hansen explains:

“Illusory Power Transference” is the academic name for feeling powerful due to a superficial connection to a powerful person, such as having once been in the same room:

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We propose that … associating with the powerful CEO suggests that he, too, must be powerful. Moreover, this minimal connection with the CEO would actually lead him to act as if he personally possessed more power when making important decisions on the job and interacting with others. ….

We use two experiments to … demonstrate that men who have a tenuous association with a powerful other (versus a powerless or equal-power other) felt more powerful and were more optimistic, confident, and risk seeking, even though they could not leverage the associate’s power. (more; HT Tyler Cowen)

How are you marketing Earth Hour

The opportunity to help the planet and your brand are rarely woven into one. Earth Hour is a convergence of all things good.

Time to celebrate

It is time for winter weary residents of Chicago to celebrate. Chicago Restaurant Week

Complicated fonts lead to more comprehension

In you want your message to reach a deeper level of consciousness, try more complicated fonts.

Roger Dooley shares this,

A Princeton study compared student retention of course material presented in both a simple font and more complex fonts, and found that retention was significantly better for the complex font.

Why is this? It appears that the additional effort required to read the complex fonts (also called “disfluent” fonts) leads to deeper processing, and ultimately better recall. The simple font tested was Arial; the complicated ones were Comic Sans Italic, Monotype Corsiva, and Haettenschweiler.

The evolving coupon space

Kristen Burnham reports on the developments in Groupon

Groupon Stores will let businesses create and launch their own deals whenever they want and as frequently as they want, without waiting several months to be featured as the deal of the day.

Merchants that claim their store, which Groupon says only takes a couple minutes, will have their deals promoted via e-mail, Twitter and Facebook. There's no upfront fee, and business will receive 70 percent of each promoted Groupon sold, and 90 percent of each non-promoted Groupon. (This differs from being featured as Groupon's Deal of the Day, in which merchants only receive 50 percent of each Groupon sold.)

Pushback aganist discounting coupons?

Can any business survive a discounting effort, be it Groupon or their ilk? No is the short answer however if the only way to survive in this environment is through traffic than what other options are there? At best the exercise is a break even proposition, at worse it can dilute your brand and the game is lost?

MP Mueller explains

Wow, will discounting be good for this brand?”

As more and more people are learning, social coupons can give businesses exposure to an affluent and educated audience. Rob Solomon, Groupon’s president, told me that the company’s 25 million subscribers are mostly between 30 to 50, college-educated, men and women with a household income north of $50,000. The company is active in 100 markets in North America and just announced a deal with eBay that will highlight Groupon’s regional daily deals on eBay’s pages. 

The two-year-old service is so popular that the term “Groupon anxiety” is now an entry in the Urban Dictionary, and Forbes has called Groupon the fastest-growing Internet company ever (be sure to see the reader comments after the article, which include some interesting first-hand experiences). While there are no upfront costs for businesses that sign on with Groupon, the businesses do have to offer their products or services at a significant discount and they do have to split what consumers pay for the coupon with Groupon, typically 50-50.

 

Michelin discovers Chicago

Press release 
On Nov. 17, Michelin will announce the selection for its first-ever MICHELIN Guide Chicago. Today, however, Michelin offers a sneak peek at the first collection of what's in store from MICHELIN Guide Chicago 2011 – the Bib Gourmand selection. The Bib Gourmand designation denotes good cuisine at a reasonable price in a variety of comfort categories. Defined as "Inspectors' Favorites for Good Value," Bib Gourmand restaurants offer two courses and a glass of wine or dessert for $40 or less (tax and gratuity not included), and are often of most value to a city's residents, who regularly dine in neighborhood restaurants.

Some good restaurants are on this list

Boy, I feel full.

Tia Ghose explains how images of food effect our perception of how full we are,

The results show that there's more to hunger than the physical stomach rumblings.

"We store memories of what we think we've consumed and that somehow affects and regulates the hunger we've experienced between meals," Brunstrom said.

It also has implications for foods advertised as low-fat, Schoeller said. "If people are expecting that it's not going to be very satisfying and also that it's something they can eat without gaining weight, there is a tendency to eat more of it. And this study suggests that part of that might be related to our perception of how full we are."

Still, it's premature to hook a pump to your soup bowl in hopes of tricking yourself into losing weight, Schoeller said. "You don't know for sure if this translates from a single meal to a chronic effect of 12 weeks of eating smaller meals." That's because physical hunger cues may overpower visual cues once someone has tried to cut calories for a longer period of time, he said.

How to increase bar sales

Tell them they will live longer if they drink, John Cloud reports

for reasons that aren't entirely clear — abstaining from alcohol does tend to increase one's risk of dying, even when you exclude former problem drinkers. The most shocking part? Abstainers' mortality rates are higher than those of heavy drinkers.

Moderate drinking, which is defined as one to three drinks per day, is associated with the lowest mortality rates in alcohol studies. Moderate alcohol use (especially when the beverage of choice is red wine) is thought to improve heart health, circulation and sociability, which can be important because people who are isolated don't have as many family members and friends who can notice and help treat health problems.

For the sake of your health, have a drink, please. :)

What good are fans if you can't motivate them to action

Sam Oches provides an example of the new social media landscape and how it impacts any business,

Rubin says a large number of Facebook fans for a brand means nothing if it's not put to good use. Companies, he says, must utilize the support and information that a large group of Facebook fans represent.

"I think people assume that just because they've got fans, they're going to get revenue," Rubin says. "I don't think it correlates to that. I think having fans gives them the audience to engage with. More importantly, instead of saying, 'Here's what the soup is today,' maybe say, 'What's your favorite bagel?' or 'What's your favorite topping on a bagel?'

"That's extremely powerful, because you're saying, 'I don't mind giving you something, but in return for giving you something, I want to be able to communicate with you.' That's where the shift in social marketing is going to."

The loss of the cool factor.

“Nobody goes there anymore. It’s too crowded." Yogi Berra

A business grows exponentially because it is cool. Once the cool factor disappears, the business model must change.

It is not my birthday really

Jan Dennis discusses how well intentioned promotions can go awry. A surprise at a dinner can be welcoming or annoying depending on a certain point of view,

“Not all customers want to be entertained,” she said. “Some just want to escape and be left alone. So the bottom line here is that businesses really need to consider their target audience before creating rituals that are effectively forced on people.”

The study examined rituals that are embedded into sales and service practices, creating a virtually mandatory branding tool that seeks to deal businesses a unique drawing card but gives customers little chance to opt out.

Researchers analyzed how customers are swayed by the sights, sounds and other frills of those nearly inescapable business rituals, from at-the-table food preparation at Teppanyaki-style restaurants to eateries that serenade diners celebrating birthdays.

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“Businesses should not just be on autopilot when they’re creating rituals,” she said. “They really need to understand the difference between optional and embedded, and the potential consequences of forcing customers to sit through certain rituals.”

They can not resist what you put in front of them

Temptation is money maker. The more temptation you place in the path of your customer the more likely they are to purchase. ChangingMinds has a article on "restraint bias"

The bottom line is a warning: 'Restraint bias' is real. The more we believe we can control our urges, the more risks we take and the more we end up giving in to pressures from the subconscious. If you want to say 'No' to yourself, realise the danger and keep yourself out of temptation's way.

The benefits of a longer lunch

Tony Schwartz advises frazzled executives to take back their lunch hour

I wasn't entirely surprised. The Energy Project, the organization I run, recently conducted a poll on the Huffington Post about people's experience in the workplace. Sixty per cent of 1200 respondents told us they took less than 20 minutes a day for lunch. Twenty per cent took less than 10 minutes. One quarter said they never left their desks at all.

That's consistent with a study by the American Dietetic Association, which found that 75 per cent of office workers eat lunch at their desk at least two to three days a week.

Those poll findings were the inspiration for a movement The Energy Project is about to launch. The concept couldn't be more straightforward. We're calling it Take Back Your Lunch. It begins this Wednesday, between noon and 2 p.m., in locations around the country, and continues every Wednesday this summer. Find out where people will be gathering — or organize a Take Back Your Lunch Meetup in your city or town.

Your are helping your customers boost productivity by entertaining them for lunch a little longer. Your restaurant is helping to make the world a better place.

It is not customer appreciation day if it is a marketing stunt

A national QSR sub chain was selling sandwiches for $1 yesterday and calling it "Customer Appreciation Days." It is not customer appreciation day if a regular customer has to stand in line for a considerable amount to get a sandwich for a buck that they normally pay $4.89 for.

Yes, the marketing stunt clearly generates interest in a $1 sandwich, however by alienating the real customers who maybe will come back after this stunt, the net is negative. A relationship with the customer is the key to creating customer advocacy. When that relationship is not honored the consequence is not pretty.

Social Gaming

"If you are coming with me you need nerves of steel because I take corners on two wheels"

Not that you have mastered social media, here comes social gaming. Christina Warren explains;

Loopt Star does borrow a lot of its social game elements from Foursquare — there are badges, leaderboards and the ability to become the “Boss” of a location — however, it also differs significantly from the other location-based services already available.

• Loopt Star is based entirely on Facebook Connect. Instead of having to build or import your social graph, Loopt Star simply uses Facebook. We think this is pretty brilliant because it lets users get started immediately. Users can then share their current location in real time with their Facebook friends and alert them about special Loopt Star offers via newsfeed.
• Brands can customize campaigns based on location, the number of visits, how many people are in a group, time of day or day of the week.
• Wi-Fi location technology is used to limit cheating.
• Users can view “Nearby Rewards” in the app and also get updates of rewards for places they have been before or that their friends share with them.

Loopt has already signed more than 20 sponsors and will launch with several large companies including The Gap, Universal Records, Burger King, Starbucks and Stanford University. New brands will be rolled out each week in the application.

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In a recent editorial post about why location hasn’t gone mainstream, Leah Betancourt argued that its value to advertisers was questionable. Loopt Star isn’t designed to be its own social network; Facebook and Twitter and other services can do that better. Instead, it can be a location guide and a virtual loyalty card. The coupons and the simplicity offer the user value, while the ability to set parameters around offers and to better target existing users offers businesses and advertisers value.

Electronic coupon clippers

Restaurantbriefing.com highlights the rise of the online coupon

So, how can restaurants appeal to price-conscious consumers but not define themselves by price? New delivery channels are taking coupons and discounts to the next level – and to new audiences. For example, offers made to restaurants’ social media followers are working well. In fact, 63% of respondents to the R&I study said coupons and deals are what they most want when they connect to restaurants’ Facebook or Twitter accounts. Restaurants are becoming increasingly adept with offers – such as asking followers to mention a specific tweet to get a special deal. They are also making announcements of last-minute specials and invitations for happy hour specials. In addition to driving traffic quickly, offers aimed at restaurants’ social media audience are viral and build those communities further.

With With over four million subscribers and more than four million coupons sold to date, Groupon is a force in the electronic coupon category. Subscribers receive a daily email with a special offer in their cities to see, do, and buy, including discounts on restaurant meals, such as paying $25 for a coupon (or “groupon”) for $50 worth of food. The offer becomes the exclusive subject of a daily email (including photos, information about the business, and links to its Web site). There’s no upfront cost to businesses to participate; Groupon processes the transaction and retains a portion of each “groupon” sold. Because businesses specify a minimum number to be sold for the deal to be valid, subscribers often use email and social media to spread the word. Restaurants say that participating has helped them reach new audiences – notably the young and Web-savvy – without spending time and money on marketing.

Misuse of marketing resources

Diane Helbig quotes a study by Dan Kennedy. How much does your business spend on acquiring new clients and why are you not focusing your limited resources on keeping the ones you have?

Sixty eight percent of clients who leave do so because they feel unappreciated, unimportant, and taken for granted.

Remarkable. So while you are working on the quality of your product, your pricing, and performance, give some thought to your customer service.

What happened to all the matchbooks

Katrina Heron's article visits an old standby,

matches appear to be struggling back from the brink to reassert their pre-eminence among the rabble of coasters, business cards, cocktail napkins and swizzle sticks charged with hawking a restaurant’s good name. In an era of instant information access and viral publicity, logo-bearing matches may have the edge as ambassadors that convey distinction in their very physicality.

Coffee Mug Ads

Coffee Mug ads were a staple of diners in a long ago era. I had not seem one in some time. We visited a new diner for breakfast this morning and there it was. A splash of advertising on the coffee mug. The was an ad for a beauty salon, a car repair, a dentist and of course an attorney. Each time I looked at my coffee mug there were the ads staring back at me.

The ads of course helps the restaurant defray the cost of the mugs and in a long ago era also created community. Ads are intruding into every aspect of our life so I would like to enjoy my coffee in peace without the additional stimulus.