Monday, August 31, 2015

The Surprising Market Potential For Going Mainstream

In this essay I’m going to touch on the proportion of the traveling public that prefers chain stores, which is, coincidentally, the same proportion drawn to mainstream attractions.

This proportion of travelers are the aim of communities that seem bent on surrendering differentiation and sense of place to generic development and mainstream facilities and events.

Surveys have shown repeatedly over the past 20 years that residents of Durham, North Carolina, where I live, identify a museum of local history as the community’s #1 cultural facility need.

In part, this may be due to Durham residents historically placing a higher value on authenticity of sense of place.  Studies show that on the continuum of authenticity, attractions such as history museums rank as among the most authentic.

But here, too, some developers, as they have across the country, often use their considerable clout with local government to push instead for mainstream facilities, which are rated in surveys of the general public as the least authentic on that spectrum.

A majority of communities long ago surrendered distinctiveness driven by a relentless envy to mimic other places and, in doing so, made them indistinguishable as just one of many.

As Seth Godin noted in a recent post entitled, The Average, “Progress is almost always a series of choices, an inexorable move toward mediocrity, or its opposite.”

Even among advocates for proposed local history museums such as Durham’s, it has not been uncommon to even hear some advocates dismissing more authentic aspects such as artifacts and collections while promoting digital alternatives.

Ironically this would, in the view of many, make museums, well, less authentic.

Museologists such as digital specialist Dr. Ross Parry view digital not as the end of older technologies such as display cases and labels, for instance, but as an extension.

In fact, Dr. Parry has contended for at least the last few years that museums are already “post digital,” meaning that this technology is now “normative” or mainstream.

It has become what University of Chicago cultural policy analyst Gwendolyn Rugg terms as “assimilated, embedded, naturalized.”

In fact, I am persuaded by an essay that was posted here in America about the same time as Dr. Parry’s declaration which eloquently makes the case that on the authenticity continuum, which is always relative, artifacts will always be more authentic.

Unfortunately, over the eight decades since a museum of local Durham history was first proposed, many priceless artifacts and even potential collections have vanished.

Communities face forces that likewise see development as the end of one thing and the beginning of another.  This is why they so easily dismiss nearly temporal place-based assets as they replace them with mainstream palaces.

It isn’t just a portion of developers and architects as well as chambers of commerce, destination marketers and officials which have become mainstream sycophants, but especially financial institutions and chains that hedge loans by insisting on cookie-cutter developments.

Ironically, when it comes to appealing to travelers as well as residents who are stayers vs. just boomers, these mainstreamers are forcing a majority of communities now into mediocrity and a future with very limited appeal.

So what do the numbers say about which is most precious and popular, authentic or mainstream, when it comes to positioning a community to generate visitor-centric economic and cultural development, which was my now-concluded career?

Is it really just “six of one or half dozen of the other” or do mainstreamers have the advantage they seem to think?

According to studies, about 1/5th of travelers actually prefer to frequent experiences at the less authentic end of the scale such as mainstream events, sports or performing arts.

This compares to 73% who prefer real or authentic experiences such as museums, historic sites and natural areas.

Visitors are also very clear when it comes to what is authentic. 

The data show that destinations and attractions considered real, authentic and genuine have “historical truth.”  These are places that are “original in origin or design,” places that are “natural” and “unique,” “non-commercial.”

Researchers have also found that authenticity is also not a moniker easily attained.  For example, fewer than half perceive the beach or science centers or aquariums to be authentic.

Interestingly, even 74% of those who experience casinos, which are considered the least authentic on the spectrum, preferred real and authentic to fantasy or mainstream experiences.

Another indicator of the relative popularity of communities that have surrendered sense of place and authenticity to emulate mainstream comes from retail studies.

They show that 29.5% of consumers prefer to buy from mainstream national or regional chain stores.

So it appears that surrendering sense of place and authenticity for mainstream means a community has actually narrowed its appeal to somewhere between just 21% and 29% of Americans.

Meanwhile, the few communities that still struggle valiantly to differentiate as well as protect and foster a distinctive sense of place, appeal to between 73% and 80% of Americans.

Developers, architects, financial institutions and politicians should take note. It pays to foster sense of place and authentic and real attributes. In other words, to list only a handful:

On balance, always favor the real and genuine over the mainstream;

Encourage architecture with respect for local settings, neighborhoods and indigenous districts rather than cookie-cutter designs or franchise/ego architecture;

Value an indigenous cultural ecosystem over events and facilities that may be so-called “world class” by mainstreamers, which are certain only to erode differentiation and homogenize sense of place;

Always favor scenic preservation, tree canopy and natural areas over impervious surface; and

Listen to residents who are “stayers” vs. “boomers” when it comes to safeguarding sense of place and community character.  Aim your appeal toward travelers and relocating or expanding businesses who value place based assets.

Friday, August 28, 2015

The Future of Analytics

With history and law in my educational background, few people, including me, would have predicted back in 1981 that I would become one of the first in my career of community destination marketing to embrace analytics.

Although I took statistics, in essence history is a form of analytical thinking.  But back in 1972 when I earned a degree in that major it was less likely to involve data.

Law school certainly teaches critical thinking but not open-mindedness.

As NYU Stern researcher Dr. Jonathan Haidt, the author of The Righteous Mind, put it this week on the Diane Rehm Show:

“But as soon as we want to reach a conclusion, or as soon as we get emotional, we get angry and open-minded thinking shuts down and we become lawyers.”

Researchers know today that the natural talent for analytics that I began to tap into in the early 1980s is a competitive advantage that was central to the DMOs I led being able to quickly leapfrog more established competitors.

Unfortunately, other than various aspects, I was never really able to teach it to others on staff before I retired at the end of 2009, with the exception of my eventual successor.

Even so, she had an innate talent for analytics. You can teach skills but not talents, especially not nuance.

Rare even among those now formally trained in analytics is the ability or talent to see nuanced patterns and then apply them strategically to an objective.

Research conducted by MIT’s Sloan Management Review and SAS calculates that only 12% of organizations overall have this ability.

More than a third are “analytically challenged” and more than half are “analytic practitioners” that employ it primarily for operations, sometimes predictively, although that is not their focus.

So one-in-eight of these organizations are “analytic innovators” which are found to be seven times as likely to employ analytics predictively and six times more likely to deploy it prescriptively.

The Sloan/SAS report entitled The Talent Dividend well worth downloading, reading and applying.

Recently, while writing an essay about what organizations such I led will look like in the future, I noted that analytical ability will soon be required for every job in an organization, kind of like how keyboard skills became in the 1990s.

When I retired, still only 37% of organizations overall saw analytics as a competitive advantage.  This peaked at 67% in 2012 and is now a view held by six-in-ten organizations.

But I believe the true value of analytics going forward will always be strategic including innovation.

Wednesday, August 26, 2015

How a Startup DMO Reached the Pinnacle of Advertising

No one involved ever expected it to endure - let alone be acclaimed -but as it occurred this month, I still get a call about it every year or so over the more than three decades since our little campaign launched.

When concepted in 1980 and launched in 1981, the campaign was intended to last only a few years at best.  Those were the days before testing was feasible and we were just glad it worked.

It remains the only campaign by a community destination marketing organization (DMO) to win a full-blown CLIO award in the overall travel category.

Clio is the preeminent international award competition for the creative business.

The campaign, originally designed to run only as a public service announcement when there were only three TV stations was also recognized as one of the hundred best TV commercial that year.

Advertising Age, a magazine for marketing and media cited it as “A Significant Milestone in the use of Television Technics for Marketing Success.

More than half a lifetime ago, I was only 32 years old at the time and in the first decade of what would be a four-decade career as a DMO exec.  It didn’t sink in until years later how rare what we had achieved actually was.

Friends at Seattle-based Alaska Airlines had won a CLIO award a year earlier and seeing our little campaign’s potential encouraged its submission.

Of course, “I Love New York” as a state tourism campaign had won a CLIO three or four years earlier as did Michigan tourism a few years later.

Two other community DMOs have reached the short list or received bronze or silver recognition in the years since.

DMOs are nonprofit organizations with the in-house skillsets of commercial advertising, marketing and public relations agencies.

But instead of being generalists about a lot of different products and services, DMOs are established to specialize, day in and day out, in the safeguarding and leveraging of the brand of a particular location.

They are a means to draw and optimize visitor centric economic and cultural development for the communities they serve.

Think of DMOs as an inch wide and a mile deep compared to agencies-for-hire which, by nature, must be a mile wide and an inch deep in order to be relevant to many different types of businesses.

Another DMO I subsequently led before retiring went on to garner more than 100 other awards for marketing and best practices.  Still, none quite reached the acclaim achieved by that little spot we produced for Anchorage, Alaska in 1981.

Here is the story of how Wild About Anchorage came to be,  To my wonder, it still resonates there more than three decades later based on online comments.

When I arrived in mid-1978 to complete a three-year-old DMO start up for Anchorage, two of the major obstacles we faced were internal.

Statewide Alaskans backhanded Anchorage with the compliment that that “the best thing about Anchorage was that it was 15 minutes from Alaska.”

Yet research was showing that the amenities offered by Anchorage were important to potential visitors.

At the same time, Anchorage residents were skeptical toward tourism because having divided the state into stereotypes traditional long-haul tourism interests had pegged Anchorage as the overnight between Mt. McKinley and Prince William Sound.

Yet surveys and inventories had shown that Anchorage offered virtually every Alaskan experience in a shorter, less logistical and expensive trip without diverting travelers interested in some of those traditional itineraries.

We needed a communications vehicle that would illuminate Anchorage’s personality and serve to give voice to community pride, while establishing a platform from which we could build awareness of the community’s role in tourism.

During 1979, we tinkered with some print tourism ads headlined Anchorage & Anchorage juxtapositioning two side by side images, one featuring something iconic about Alaska such as wildlife and the other featuring an Anchorage amenity such as great dining.

While we knew it was too “straight up” or serious for the PSAs we wanted to run locally which would also reach the majority of Alaskans, we felt we could build on that positioning.

We were working with a small boutique agency at the time in Seattle which until we could develop organizational capacity was the only entity willing to produce our annual visitors guide including selling the advertising.

One day while discussing the campaign we wanted to create, I mentioned a Chevron commercial that had been created by Kurtz And Friends as an example that might work.

We knew straight up imagery wouldn't be as effective because Alaskans were over exposed to incredible photography.  We also needed something that wouldn’t take the community too seriously.

Tom Bardeen, one of the principles in the boutique, was familiar with Bob Kurtz, who had earned fame doing the titles for The Pink Panther and offered to see if he was interested in producing an animated spot for us on behalf Anchorage.

He was, and either Tom or Bob or maybe both fell on the idea of a chorus line of animals to convey the message that Anchorage & Anchorage had only in an animation format.

The spot took off instantly with not only Anchorage residents but Alaskans as a whole.  Still a decade before the worldwide web would be viable, I guess you could say it went viral.

Within weeks we knew the moose in the center of the chorus line would work as the graphic symbol in our branding of Anchorage for external audiences as would the tagline Wild About Anchorage.

Linda Chase, an event organizer, agreed to do costumes for an actual chorus line we could take on the road at promotions as well as use at local events and during welcome ceremonies for conventions.

A contest in schools gave the moose a name – Seymour of Anchorage – get it?

Tennys Owens, a local art gallery owner, arranged for sales of the original celluloids and residents lined up around the block to buy and frame them. I still have one the board gave me when I moved on.

A statuette of Seymour was created to give to awardees at award dinners.

I left Alaska in late 1987, but Wild About Anchorage remained in use for another 20 years.  In 2007 the Anchorage DMO successfully launched a new brand signature and the tagline “Big Wild Life.”

In 2011, after the Anchorage Daily News pined for Wild About Anchorage in a column, Seymour the Moose, himself, penned an open letter assuring readers that he was still working as a mascot of sorts for the new slogan (smile.)

Coming up with a magical campaign such as this is always a bit serendipitous by nature.

Testing can measure a lot of things including potential popularity, but usually not deep and enduring engagement over more than three decades.

Nor do DMO marketers or should I say DMO governing boards have the patience to let a campaign play out like Anchorage obviously did.  About the time it seems everyone on the planet must be heard of it is when a campaign is just starting to penetrate.

Little did we know then that by the end of that decade traditional advertising overall would begin a three decade decline in effectiveness.

In today’s marketing environment where ads now have a negative return on investment and channel fragmentation makes a PSA campaign impractical, it wouldn’t be possible to do what we achieved in 1981.

I am humbled that people still embrace Wild About Anchorage as a legacy campaign.  We were very lucky and I was blessed to play a part as the producer.

Hats off to Tom Bardeen who wrote the lyrics and Dale Case (101 Dalmatians and Fatherhood) and Pam Cooke (Family Guy and Simpsons) who did the animation and especially Bob Kurtz who designed and directed Wild About Anchorage.

How a Startup DMO Reached the Pinnacle of Advertising

No one involved ever expected it to endure - let alone be acclaimed -but as it occurred this month, I still get a call about it every year or so over the more than three decades since our little campaign launched.

When concepted in 1980 and launched in 1981, the campaign was intended to last only a few years at best.  Those were the days before testing was feasible and we were just glad it worked.

It remains the only campaign by a community destination marketing organization (DMO) to win a full-blown CLIO award in the overall travel category.

Clio is the preeminent international award competition for the creative business.

The campaign, originally designed to run only as a public service announcement when there were only three TV stations was also recognized as one of the hundred best TV commercial that year.

Advertising Age, a magazine for marketing and media cited it as “A Significant Milestone in the use of Television Technics for Marketing Success.

More than half a lifetime ago, I was only 32 years old at the time and in the first decade of what would be a four-decade career as a DMO exec.  It didn’t sink in until years later how rare what we had achieved actually was.

Friends at Seattle-based Alaska Airlines had won a CLIO award a year earlier and seeing our little campaign’s potential encouraged its submission.

Of course, “I Love New York” as a state tourism campaign had won a CLIO three or four years earlier as did Michigan tourism a few years later.

Two other community DMOs have reached the short list or received bronze or silver recognition in the years since.

DMOs are nonprofit organizations with the in-house skillsets of commercial advertising, marketing and public relations agencies.

But instead of being generalists about a lot of different products and services, DMOs are established to specialize, day in and day out, in the safeguarding and leveraging of the brand of a particular location.

They are a means to draw and optimize visitor centric economic and cultural development for the communities they serve.

Think of DMOs as an inch wide and a mile deep compared to agencies-for-hire which, by nature, must be a mile wide and an inch deep in order to be relevant to many different types of businesses.

Another DMO I subsequently led before retiring went on to garner more than 100 other awards for marketing and best practices.  Still, none quite reached the acclaim achieved by that little spot we produced for Anchorage, Alaska in 1981.

Here is the story of how Wild About Anchorage came to be,  To my wonder, still resonates there more than three decades later based on online comments.

When I arrived in mid-1978 to complete a three-year-old DMO start up for Anchorage, two of the major obstacles we faced were internal.

Statewide Alaskans backhanded Anchorage with the compliment that that “the best thing about Anchorage was that it was 15 minutes from Alaska.”

Yet research was showing that the amenities offered by Anchorage were important to potential visitors.

At the same time, Anchorage residents were skeptical toward tourism because having divided the state into stereotypes traditional long-haul tourism interests had pegged Anchorage as the overnight between Mt. McKinley and Prince William Sound.

Yet surveys and inventories had shown that Anchorage offered virtually every Alaskan experience in a shorter, less logistical and expensive trip without diverting travelers interested in some of those traditional itineraries.

We needed a communications vehicle that would illuminate Anchorage’s personality and serve to give voice to community pride, while establishing a platform from which we could build awareness of the community’s role in tourism.

During 1979, we tinkered with some print tourism ads headlined Anchorage & Anchorage juxtapositioning two side by side images, one featuring something iconic about Alaska such as wildlife and the other featuring an Anchorage amenity such as great dining.

While we knew it was too “straight up” or serious for the PSAs we wanted to run locally which would also reach the majority of Alaskans, we felt we could build on that positioning.

We were working with a small boutique agency at the time in Seattle which until we could develop organizational capacity was the only entity willing to produce our annual visitors guide including selling the advertising.

One day while discussing the campaign we wanted to create, I mentioned a Chevron commercial that had been created by Kurtz And Friends as an example that might work.

We knew straight up imagery wouldn't be as effective because Alaskans were over exposed to incredible photography.  We also needed something that wouldn’t take the community too seriously.

Tom Bardeen, one of the principles in the boutique, was familiar with Bob Kurtz, who had earned fame doing the titles for The Pink Panther and offered to see if he was interested in producing an animated spot for us on behalf Anchorage.

He was, and either Tom or Bob or maybe both fell on the idea of a chorus line of animals to convey the message that Anchorage & Anchorage had only in an animation format.

The spot took off instantly with not only Anchorage residents but Alaskans as a whole.  Still a decade before the worldwide web would be viable, I guess you could say it went viral.

Within weeks we knew the moose in the center of the chorus line would work as the graphic symbol in our branding of Anchorage for external audiences as would the tagline Wild About Anchorage.

Linda Chase, an event organizer, agreed to do costumes for an actual chorus line we could take on the road at promotions as well as use at local events and during welcome ceremonies for conventions.

A contest in schools gave the moose a name – Seymour of Anchorage – get it?

Tennys Owens, a local art gallery owner, arranged for sales of the original celluloids and residents lined up around the block to buy and frame them. I still have one the board gave me when I moved on.

A statuette of Seymour was created to give to awardees at award dinners.

I left Alaska in late 1987, but Wild About Anchorage remained in use for another 20 years.  In 2007 the Anchorage DMO successfully launched a new brand signature and the tagline “Big Wild Life.”

In 2011, after the Anchorage Daily News pined for Wild About Anchorage in a column, Seymour the Moose, himself, penned an open letter assuring readers that he was still working as a mascot of sorts for the new slogan (smile.)

Coming up with a magical campaign such as this is always a bit serendipitous by nature.

Testing can measure a lot of things including potential popularity, but usually not deep and enduring engagement over more than three decades.

Nor do DMO marketers or should I say DMO governing boards have the patience to let a campaign play out like Anchorage obviously did.  About the time it seems everyone on the planet must be heard of it is when a campaign is just starting to penetrate.

Little did we know then that by the end of that decade traditional advertising overall would begin a three decade decline in effectiveness.

In today’s marketing environment where ads now have a negative return on investment and channel fragmentation makes a PSA campaign impractical, it wouldn’t be possible to do what we achieved in 1981.

I am humbled that people still embrace Wild About Anchorage as a legacy campaign.  We were very lucky and I was blessed to play a part as the producer.

Hats off to Tom Bardeen who wrote the lyrics and Dale Case (101 Dalmatians and Fatherhood) and Pam Cooke (Family Guy and Simpsons) who did the animation and especially Bob Kurtz who designed and directed Wild About Anchorage.

Tuesday, August 25, 2015

Durham Outranks State and Peer Cities for Small Business

Thumbtack conducts a survey of small businesses and uses the results to rank states and cities on a series of aspects.  North Carolina overall falls in the middle compared to other states with an overall friendliness rating of B-.

The biggest challenge faced by small businesses statewide is apparently access to credit.  Taxes fall #7 and regulations a distant #11, cited by only 1.7% of respondents.

In fact, small businesses gave NC a B- for environmental and a B for regulations.  Not bad compared to the overall rating of B- but surely news to regressives in the General Assembly.

But in results released today, Durham, NC, where I happen to live, is given an A- overall, highest among the state’s larger cities and towns.  The Bull City, where great things happen, earned As on six criteria including regulations and an A+ for tax code and training programs.

Durham also ranks 14th out of 95 cities rated nationwide.

An area for improvement is the ease of starting a business.  Small businesses gave Durham an A- for regulations and a B+ for environmental.

Durham’s overall rating is up from a B in 2012 while North Carolina’s has improved from a C+ to a B-.

A major take-away for North Carolina policy makers is focus on making credit easier to obtain and to not be distracted by the relative few small businesses concerned about regulations.

Another take-away is that some of the state’s larger cities, which some lawmakers seem determined to undermine wherever possible are doing a much better job for small businesses than the state as a whole.

Sentiment is gleaned annually from 18,000 truly small businesses, of which 90% have five or fewer employees.  These are the independent businesses that make up 20% of the workforce and lead the way in job creation.

Yet they are often overlooked because they don’t have time to attend meetings or hire lobbyists or testify at public hearings.  Nor are they any longer on the radar of business advocacy groups such as most chambers of commerce.

Much of that void has been filled by community destination marketing organization where they aren’t still trapped in a membership model and by Thumbtack, which in part provides a marketplace where businesses bid on consumers.

Friday, August 21, 2015

10 Ways Tourism can Earn the Respect it Deserves

At least since at least the 1960s and including my now-concluded four-decade career, many in travel and tourism have repeatedly whined that this sector of the economy doesn’t get the respect it deserves.

Some are individual businesses who just want a pat on the back.  Others feel they need special treatment or shouldn’t have to pay their fair share of making places visitor-worthy.

It can be annoying and proposals rarely seem to go much beyond chest thumping.  Later in this essay I’ll take a stab at some more systemic ideas for how the travel and tourism sector could earn more respect.

But primarily, complainants are referring to the fact that most elected officials and administrators don’t grasp that the function of visitor centric economic and cultural development is to drive tax revenue.

Focus in government is typically only about dividing up the pie with the mistaken view that generating it comes only from a political decision to levy taxes.

The validity of the tourism sector’s concern is often visible when elected officials, often pushed by developers and advocates, are all too eager to drain resources shouldered for that purpose away from tourism promotion for their own uses instead.

These folks are better known as TINOs or “tourism in name only” and identifiable by their siren song of “build it and they will come.”

It is true that worldwide the travel and tourism sector now generates nearly 10% of the world’s gross domestic product (GDP) including 1 in every 11 jobs.  It is projected by economists that this sector alone will generate 3% of the GDP in America this year.

That’s bigger than the automotive sector, to add perspective, or for that matter agriculture, education and mining too.

Even down to the county-level, visitor-centric economic development generates a similar percentage of GDP in places where it is actively promoted, such as Durham, North Carolina where I live.

Instead of incessantly complaining that officials just don’t get it or care, here are 10 simple behaviors professionals in the travel and tourism sector could adopt to earn the respect it deserves:

Deep Six the widespread misuse of the term “industry.”  Tourism has never been an industry.  It is an economic sector composed by as many as seven very different industries that happen to rely in part or in whole on a common consumer, visitorsRemember: industry is small, sector is many industries together.

Distinguish demand-driven visitor centric economic and cultural development from more traditional forms of supply-based economic development.  Tourism is on the demand side and truly generates value-added to a community.

Adopt an all for one and one for all approach.  Too often tourism tolerates actions and positions that throw one industry under the bus while protecting those that don’t want to pay their fair share.

Grasp that respect isn’t won or demanded, it is earned, not from tooting your own horn or chest thumping but by patiently and continually explaining how the economy and tax generation works and how travel and tourism is a means for community destination and cultural development

Stop killing the things visitors love.  Avoid cookie-cutter architecture that only homogenizes communities and adopt zero tolerance for use of tools such as long-obsolete roadside billboards that create sign blight (aka litter on a stick,) desecrate scenic vistas and mar sense of place.

Embrace design thinking beginning by performing a “Drano” operation on tourism organizations and models that having achieved their purpose have become obsolete given changes in the tourism ecosystem.  These only serve as a drain on resources and engagement.

Respect and encourage preservation of the unique sense of place in each destination beginning with place-based assets, traits and values.  Encourage communities to differentiate rather than become generic.  Protect them from being hollowed out by mainstream events and mega-facilities.

Root out intra-sector hypocrisy.  Remember that the tourism sector flourishes as a public-private sector partnership.  Discourage public subsidies of mega-events and facilities that will not generate a return on investment to the public treasury.  Refrain from win/lose issues such as forcing restriction of local school calendars.

Take a prominent lead in solutions to societal inequities such as business models based on paying less than a livable wage, vestiges of institutional intolerance and bias as well as gentrification that is insensitive or imbalancedEarn a reputation for win/win facilitator.

Encourage widespread adoption of best practices.  Demand that destination marketing organizations earn accreditation.  Cross populate best practices across all industries in the sector including special assessments such as Tourism Improvement Districts or prepared food taxes dedicated to self-funding promotion, wayfinding, cultural landscape and destination clean up and beautification.

It is complicated to form one voice over an entire sector of multiple industries but it can be done and one of the first steps should be to develop a reliable metric.

It all begins by acting like a sector not just an industry.  It is possible only when the sector is as concerned with the overall ecosystem (including the pubic sector) as it is with individual bottom lines.

If these 10 areas are not of interest, just stop whining about respect.

Thursday, August 20, 2015

Design Thinking As A Means of Staying Relevant

Some people, when they read a recent post that “design” would be a prominent competency, even for CEOs, for community marketing organizations of the future mistook my comment to mean “graphic” design.

Maybe this is some of my former peers have still not developed in-house capacity for that aspect, even though leading-edge DMOs did  three or four decades ago, not only to be more efficient but to keep better control of the graphical representation of their community’s brand.

But I was actually referring to process design or the capacity to design things like systems, project management, processes, new product launches as well as mothballing those that are obsolete.

This way of viewing design includes the ability to morph or scale organization design, business models and even things such as strategy and especially customer service.

Going forward what is called “design thinking” will be more and more essential to preserving and leveraging a community’s unique sense of place, the primary role of a DMO.

My forecast really wasn’t a reach for anyone keeping up with best practices or readers of excellent books such as Change By Design: How Design Thinking Transforms Organizations and Inspires Innovation.

It was penned just as I retired nearly six years ago by former Rotman Dean Tim Brown, the founder of IDEO who blogs at Design Thinking.

But Brown reinforces my belief that you “see into the future by looking back” when he reminds us that design thinking dates at least to the early 1800s when Isambard Kingdom Brunel applied design thinking to transportation systems.

Community marketing is about differentiation at its strategic core and according to Brown, design thinking is essentially about developing divergent approaches to solving problems.

Many organizations often fail because of poor leadership, especially when run by volunteers where leadership positions are passed from one member to another without regard for engagement or leadership ability.

But instead of addressing the lack of engaged leadership, as they lose steam these organizations often but futilely try to fuse with an earlier but obsolete organization.

Rather than closely examine intrinsic factors such as leadership strength or morphing design to address obvious changes in the ecosystem in which they operate, they superficially restructure hoping that fusing two organizations will restoke one while bringing the other back to life.

This doesn’t solve the problem, it instead merely leads to a bigger organization lacking leadership and usually the obsolete organization sinks the still relevant one too and a new organization is formed.

It is how we end up with scores of organizations on life support and draining resources away from those that are relevant.

Examination of this extrinsic vs. intrinsic approach suggests this approach is inevitably doomed to failure.  It definitely not “change by design.”

Organizations, especially when volunteer-driven, just aren’t very good at introspection or design thinking, and nowhere is that truer than when it comes to governing boards, leaving them vulnerable to regressive but well meaning “humpty-dumpty” thinkers.

The annual Stanford survey of nonprofit boards of directors shows that many are in desperate need of redesign, even when executive led.

Too often members are appointed without ensuring they have or are willing to learn critical skills such as leadership.  Even leading an organization of their own is no guarantee that an appointee will be able to lead a volunteer board.

In the current survey, over a quarter say their fellow board members lacked a strong understanding of the organization’s mission and strategy.

A third of the respondents were not satisfied with the board’s ability to evaluate the organization’s performance and over a third said the boards to which they belong never evaluate the board’s effectiveness.

Nearly 7-in-10 organizations have no leadership succession plan let alone require qualifications for leaders and nearly 60% had no benchmarks to measure performance to a peer group of similar organizations.

Only 15% believe their boards stay on top of strategy more than once annually and 41% only do this most essential board role every two years or less.

Half do not believe their fellow board members are very engaged making those that have a “you’re next” form of rotating leadership especially vulnerable to decline.

Nearly 7-in-10 say their boards have faced one or more serious governance-related problems in the past 10 years and 16% say they have extreme difficulty attracting qualified new board members.

The results are worse for those that are volunteer-driven and even more dismal when budgets are around $500,000 give or take.

Wednesday, August 19, 2015

Racism Metrics Among Americans

Once you read up on research by those who study racism, it is a little annoying when the term is applied too broadly especially as has been common over the past year both to individuals and institutions.

I always felt my father was racist but having come in contact with true racists while turning Durham, North Carolina’s image around in my past professional life, I now realize he wasn’t.

He was born in 1923 just as the first studies were launched to determine attitudes toward various groups among Americans.   Back then Americans readily expressed their racial prejudice.

But before I get into how prevalent racism was back then, let me touch on what was happening in America during my father’s formative years.

In fact, in the review of this research in the book Blindspot: Hidden Biases of Good People, the authors note that in the 1930s it “may have been as politically incorrect to express tolerance as it is to express intolerance” today.

Keep into mind that even into the 1930s Black Americans were being lynched at an average of fifty to one hundred per year.

Those occurred primarily in the South, but even in my father’s native Pacific Northwest, this was also the heyday of nativism which included a resurgence of groups such as the KKK.

Nativism was an anti-immigrant movement spearheaded by politicians such as Congressman and Attorney General Mitchell Palmer, newspaper editor and Congressman Albert Johnson of Washington state as well as Presidents Coolidge and Hoover.

As an aside, Johnson coined the phrase “Keep America American” which was picked up by the Klan.  Coolidge rephrased it as “America must be kept American.”

In fact, a 1930s survey of lodging establishments across the country just as travel and tourism became mainstream found that 90% would not accept Chinese as guests.

Germans and Eastern Europeans were the primary targets of nativism back then but it appears to be essentially the same play book that Republican hopeful Donald Trump’s campaign strategy has resurrected today only targeting Latino immigrants this time.

Today, surveys show that only 10 to 15 percent of Americans harbor explicit prejudice against Black Americans compared to about 60% from the 1930s up through the 1950s.

I suspect there may be the same percentage of blacks who are openly prejudiced toward whites.

But racism or prejudice or should I say acceptance of other groups occurs on a spectrum and there is evidence that 7% of Americans are truly virulent racists.

During the 1990s, the organization I led mounted a grassroots effort that reversed the negativity toward Durham manifest by a majority of those living in nearby communities.

But researchers who were helping us told us not to bother when those who continued to be very negative was reduced to single digits.

From reading verbatims, reports from mystery shops and especially online comments to news stories, it was abundantly clear they fell among those remaining were hard core, virulent racists.

Having always been more diverse, Durham was merely a surrogate for their animosity.

We succeeded in the image turn around by inoculating those who were uncertain and reinforcing those who were positive about Durham while appealing to those who were “milder” negatives with better information.

This is why we were wise not to launch a big ad campaign.  Far too blunt as a marketing tactic, traditional ads merely reinforce existing opinions (positive and negative.)

In the wake of Supreme Court rulings on the unconstitutionality of segregation, by the dawn of the 1960s Americans were gradually becoming much more egalitarian and self-conscious about intolerance.

So by the 1970s scientific surveys to determine prejudice had to become more covert as attitudes toward explicit prejudice changed.

By then my dad was turning 50 was apparently too ingrained to make the shift or maybe he just liked pushing my buttons during during lively debates on visits home.

However, I had noticed growing up that while he seemed explicitly prejudiced toward some groups, at least in rhetoric, he wasn’t at all when it came to individuals.

You often hear something similar voiced by regressive politicians and some celebrities who when caught making insensitive or racist remarks are quick to rationalize that Black people are some of their best friends.

Studies show that 75% of Americans - including some who are Black -have an implicit preference for white vs. black racial groups.  It often results in institutional bias where studies show that even a percentage point or two of discrimination on an individual level can add up to a disadvantage for Black Americans overall.

It is reflected in the analysis of tipping practices where patrons, on average, including those who are Black are found to give higher tips to Caucasian servers.

It is why studies also find that many Americans are favorable to leveling the playing field based on gender but not ethnicity, betraying an implicit bias.

But about 40% of Americans have what researchers call aversive racism, a term coined in the 1980s, which means they avoid interaction with other racial and ethnic groups.

Americans who fall into these groups today probably don’t self-identify as racists.

Nor are police officers using stereotypes to make lightning quick life or death decisions protecting neighborhood where less than 25% of the residents, according to Harvard Sociologist Orlando Patterson are structurally disconnected and/or mimicking a street culture that is often itself racist and misogynist as well as defiant of authority and laws.

This all crossed my mind recently while driving home from a lakeside retreat in the county north of Durham.

I was mulling over how a heavy-set white woman had been loudly pontificating up and down the isles of a Walmart to anyone who would listen characterizing Durham as a cesspool, albeit one which provided her with job when a pickup flew past in the opposite direction.

Speeding north along Dirgie Mine Road through Allensville it was streaming two huge, 4’ x 6’ Confederate flags on each side of the truck’s bed.

Doing a little stereotyping of my own, I wondered if the occupants were just trying to intimidate the fourth of the residents there who are black.

Or maybe they were returning from one of the demonstrations of support for that bygone symbol or maybe they just proud albeit insensitive and shallow good ole Southern boys.

Researchers use the term disassociation to describe how our minds operate at two levels, one automatic and the other reflective.

This is how so many Americans can profess to be egalitarian but their automatic responses are clearly biased.

My dad was very egalitarian but reflecting the norms of his youth also very biased when it came to blacks as a group.  Pushing back against his attitudes while growing up I’m sure played a role in propelling me to be much more tolerant and accepting of other groups.

But wondering if I also absorbed an implicit bias when it comes to race, during my summer hiatus from these posts I took the test related to race at Project Implicit.

It was devised in the late 1990s by researchers at the University of Washington, Harvard and the University of Virginia including the two authors of Blindspot, which I also highly recommend.

The test is ingenious for many reasons including that test-takers can’t “game it.”  I suspect that may be because it also measures hesitation.

There are also tests to measure implicit biases based on age, gender, sexuality, weight and religion to name a few.

I turned out to be neutral when it comes to race.  In other words, I am not biased toward or against others on the basis of race.  I have yet to take the other tests but I suspect I may be implicitly biased on the issue of weight.

Take it for yourself, regardless of your ethnicity and especially if you feel or get the impression from others that you may be racist, even somewhat.

It should be require of elected officials seeking to undermine voter rights.  

Monday, August 17, 2015

Small Business and The Golden Age of Geomarketing

A new survey of small and medium sized business advertisers (SMBs) across the nation by Borrell includes a list of “paid” media they favor for those who still use that element of marketing.

It helps to understand that 72% of these SMBs have fewer than 50 employees and 48% have fewer than 10.  Nearly three-out-of-four are independently owned.

The paid media they favor, in this order, are digital, newspapers, local magazines, direct mail and radio.  Mobile falls sixth.

If you throw in all outdoor advertising including buses and kiosks, only 17% still bother with billboards which along roadsides are viewed as blight by 8-out-of-10 Americans.

Taking only true small businesses into account, another report shows that only 3% of small businesses now use billboards confirming they can do the math of the turn-off-to-turn-on ratio.

More than 80% of SMBs have established their own media channels in the form of a website and social media page.

Interestingly, the analysis found that 72% are now spending far more on digital services to support their websites and social media pages than they do on basic or traditional advertising.

Borrell concludes that we are at the “end of the Golden Age of Advertising” and witnessing “the dawn of the Golden Age of Geomarketing.”

According to the report, local digital marketing is responsible now for virtually all of the growth in local advertising.  Borrell defines local ad spending as dollars spent within the market to reach people within the market.

But geomarketing is now getting far more specific than the huge, sprawling, multi-county media markets devised by traditional media to optimize what they could charge advertisers by hoodwinking them into believing that consumers would commute hours away for what they could easily buy local in the truly local sense.

That’s what makes the findings of the report even more relevant.  That’s because geomarketing puts the local back in local, meaning the local business climate.

In 2013, Borrell forecast the zoom in online advertising with traditional media rather stable.  But the company’s 2015 survey reveals an even more rapid transition to online.

In reality, longitudinal research at USC’s Marshall School of Business pinpointed that this paradigm began to shift three decades ago and by 2010 , traditional advertising for businesses overall had reached a negative return on investment.

It is clear from many who analyze this rapid decline that the advent of digital and the Internet didn’t kill advertising greedy advertisers and traditional advertising mediums did.

Advertising as an element of marketing is essentially a form of “yelling” for attention.  Yelling annoys consumers even when they are viewed as entertainment or diversion as they are by 77% of viewers during the Super Bowl.

Ads during the game have a substantial turn-off ratio among viewers.  According to post game surveys, nearly 4 people were turned off by the ads during the 2015 event for every one who was influenced to actually buy something.

FYI, turned-off includes those who were bothered or viewed them as interrupting the game or making it last too long or felt the advertisers should have saved their money and passed the savings along to consumers instead.

Even if only awareness generated by the advertisers is measured, the turn-of-to-turn-on ratio barely reaches break even, hardly a metric worth shelling out $4.5 million for a 30-second spot.

Many “yup yup yup uh huh uh huh” marketers fail to grasp that traditional advertising can actually be counterproductive.  But savvy execs understand this is a fatal flaw, especially when the cost comes to $3 a viewer, double that when netting out those who were annoyed.

But then again, maybe stockholders should view these as an incredibly expensive way to stroke egos.

The shift to digital continues to have so much momentum that analysts at Borrell forecast that traditional media will soon begin to be used, if at all, more like “niche support mechanisms to a digital marketing plan.”

Full research reports and analyses are available from the Borrell website.

Thursday, August 13, 2015

Community Marketing In The Future

A business professor-friend of mind recently asked me to write about the long-term outlook for community destination marketing organizations, my four-decade career that ended at the dawn of 2010.

It will be a fun exercise.  Even though these organizations overall have continued to evolve over the last five years, the answer to his query can be found in the past, which is the primary source of all strategic insight.

When I reference this as “looking back to see forward,” I am not talking about the regressive propensity by some of my former DMO peers to react to changes in the tourism ecosystem by futilely trying to put humpty dumpty back together.

It is true, as some pundits predict, that “some” DMOs are already becoming irrelevant but not just because of technological advances.

Communities that have surrendered authenticity and sense of place while opting instead for mainstream mega-events and facilities are already obsolete.

Rather than differentiate, this approach homogenizes identity and character so that sooner rather than later there will be little need for a DMOs in these communities.

Those DMOs in communities that that still have and safeguard a unique sense place woven from distinctive cultural, built and natural place-based assets are and will still be highly relevant far into the future.

But to paraphrase futurist and analyst Brian Solis, in the future the marketing these community destination marketing organizations deploy will have little resemblance to marketing as it has been.

This isn’t and won’t just be about “keeping your knees bent” or better yet balancing for absorption as in the “bump method, aka, mogul skiing” to use metaphors from downhill skiing.

Interestingly, in the book forward to Share This Too, where Solis made that statement about “The future of marketing [having] little to do with marketing,”  he uses a comparison of the difference between surfing and skateboarding with snowboarding.

Describing that while they may look familiar, with the first two you lean back and use your back foot as a rudder.  But with snowboarding, you lean forward.

Change, even when it seems evolutionary requires not only “perseverance” but an “open mind” to doing things differently.

That said, marketing as most DMOs practice it began to rapidly change three decades ago, more than a decade before the Internet was made available commercially and nearly two decades before it was employed by even the most forward thinking DMOs.

While much of what a typical DMO does today will continue to be replaced in the future by technology, you can see what those that will still be relevant will be up to instead by looking at what all but the most strategic DMOs have long been neglecting.

Here is my take on eight (in no particular order) community destination marketing foci there that will always be a need for “boots on the ground” to optimize visitor-centric economic and cultural development even as more traditional elements of marketing continue to be commoditized by new technologies.

Serving as the vigilant conscience and guardian for the distinctive sense of place of a particular destination community – Perpetually justifying the unique value proposition: what’s special, what’s different.

Defending community reputation as a means of lowering barriers to visitation e.g. proactive fact-checking, ensuring accuracy even if troubling, protecting image, challenging negative stereotypes, drilling down to distill and celebrate inherent brand values, traits, positioning.

Conducting intensive and never-ending front line training about the community to optimize visitor satisfaction and circulation as well as training local stakeholders to optimize economic value added by “buying local.”

Leading the process for distilling strategic insight into what McKinsey’s Hugh Courtney identifies as the four levels of uncertainty including the “clear enough” near-term, “alternative futures” or scenarios a little further out, “a range of potential futures” in the distance and finally, patterns of evolution.

Most so-called strategic thinking stops at level one – the obvious.

Creating and curating content/context communications including perpetually freshened graphic imagery that draws attention by providing valuable knowledge and insight as well as appealing to only those visitors for whom the community can deliver on its brand.

Maintaining and providing databases that update GPS data as well as making certain that all stakeholder businesses and organizations have “claimed their online real estate.”  Monitoring search engine optimization for the destination and all stakeholders.

Mining and harvesting data and analytics, including primary research, to inform the leverage of private development capital, calculating location specific economic impact and providing and interpreting destination-specific metrics for all stakeholders.

Analyzing, shaping and articulating the visitor experience as well as advising stakeholders on how it can be improved.  Deeply aggregating, trafficking and providing event data to optimize exposure and limit dislocation as well as cannibalization of underwriting and volunteers.

There are others but no more advertising.  Sales will be more like data mining, performed by data analysis rather than glad-handing.  All media attention will be earned.  Official community websites will be comprehensive and capable of being harvested by intermediaries.

Staffs will be larger because these marketing foci of the future are more labor intensive and require quick reactions.  Skills sets that will be prized are analytics, design and backbone.

In my experience only one DMO in a thousand has made even a token shift to a few of these areas that will be the foci of community marketing going forwards.

If you hear a consultant (or DMO exec for that matter) claim his or her clients already do these things, grab your wallet and run.  They are full of, well you know.

Those DMOs that are not trapped in Jurassic Marketing by poor and often regressive or lethargic leadership are usually slowed by “fax thinking.”

By this I mean the tendency to always try to keep “plates spinning” long after they have become obsolete. 

Or in the words of Brian Solis, “stuffing promise into familiarity.”