| In our last column, we described
how TiVo largely ignores its extensive community of fervent
customer evangelists.
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Matt Strain
Between the Pages of Angel Customers and Demon Customers
In the United States, TiVo enjoys a passionate customer
universe that rivals Krispy Kreme’s, yet TiVo still
hasn’t made the leap to the mass-market phenomenon
of customer evangelism.
Why?
We contend that it’s due in part to the company’s
focus on sales, not evangelism. Sales is about what’s
good for a company; evangelism is what’s good for
customers. TiVo’s big-picture marketing primarily
focuses on promotional sales tactics versus embracing enthusiastically
outspoken customers who influence sales on the company’s
behalf.
(If TiVo is foreign to you, it’s best described as
a personal video recorder for television shows. It can skip
over ads. You can record individual or season-long shows
easily using an intuitive on-screen menu system. Based on
what you record, TiVo will recommend other shows or movies
to record. Even better: the box lets you pause live TV to
make a sandwich, use the restroom, answer the phone, etc.)
As a company, TiVo faces several tall hurdles. Prices for
the recorder start at $199 and top $549. A monthly subscription
fee of $12.95 makes already-expensive monthly cable bills
more daunting. If TiVo were to remove or lower these barriers,
adoption rates would likely improve, but we wouldn’t
bet on it.
For a product with such fervent customer evangelism, a
unified and concentrated focus on word of mouth would surely
increase sales. Krispy Kreme understands this well; it spends
no money on mass media advertising, and its April 2000 initial
public offering on Nasdaq remains the best-performing IPO
three years later, with a 545% return, according to Dealogic.
If only TiVo were to focus on embracing its customer community
the Krispy Kreme way….
If our mailbag from the previous column is any indication,
some TiVo customers fear that if the company doesn’t
“get it” soon, TiVo’s future could be
bleak.
Brodie Keast, TiVo’s senior vice president and general
manager, disputes this. (His email responses are too long
to include here, so we’ve posted them to our blog.)
Keast contends that TiVo does embrace its most loyal, evangelistic
customers, yet industry analysts can’t understand
why TiVo’s subscriber growth rate remains sluggish
in the face of fervent word of mouth. Keast says he’s
“a huge fan of evangelism and creating causes, [and]
I think you know it’s a bit more complicated than
that. I would suggest making your point in the context of
how evangelism fits into a larger marketing plan.”
Which brings us to TiVo, part two: Evangelism does not
fit into the marketing plan, as Keast argues.
Evangelism is the marketing plan. Customer evangelism is
not a marketing tactic. It’s a theology. A belief
system. It’s the driver of all strategies and tactics
that naturally emanate from a well-defined cause.
Thousands of TiVotees have testified: “TiVo has changed
my life.” That’s marketing nirvana. There is
no “larger marketing plan.”
TiVo has had a four-year head start in creating the personal
video recorder as a product category, but competition is
converging quickly on its territory.
What should TiVo do? How can it leverage the power of a
passionate, influential customer community to improve its
position? More broadly, what if your company is like TiVo,
with an acclaimed product or service enthusiastically embraced
by customers, B2C or B2B, but you struggle to win widespread
adoption?
As three-year TiVo customers (and fans), we have a few
ideas:
1. Create a Cause
TiVo’s tagline is the nondescript “TV on your
terms”—meaningless when you consider that people
who love the product often refer to it as “life-changing”
and “God’s machine.”
“TV on your terms” inspires as much emotion
as a statistics class. TiVo should create a bold, emotional
cause like “Join the TiVolution!” Better yet,
TiVo could simplify its value proposition: “Skip annoying
TV ads.”
Long-time TiVo customers welcome newbies into the online
TiVo community (www.tivocommunity.com) with messages such
as this: “You have joined a community of 700,000 other
people just like you who are no longer a slave to the TV!
TiVo has changed our lives, liberated us from network TV
schedules and channel surfing so we have more quality time
to spend with children and for ourselves.”
Companies with well-defined, emotional causes create unified
strategies and tactics that compel kindred spirits, those
target customers, to make the leap from mere purchase to
affiliation. It’s akin to a political movement: you’re
not voting for a person, you’re trying to change the
world. That’s what early adopters will tell everyone.
2. Create Community
TiVo enjoys a remarkable online community of 45,000 customer
evangelists who have organized themselves into a volunteer
sales force. That means 600,000 TiVo customers are not part
of the community. TiVo should steer every customer and prospect
to the community via prominent Web site links or, ideally,
through the special messages section on TiVo-enabled TVs.
TiVo’s email newsletter of customer stories and hints
and tips goes only to paying customers. That’s a missed
opportunity for prospects to understand the love before
they buy. The email newsletter for prospects is a retinue
of special offers and purchase pleas.
In contrast, the “Friends of Krispy Kreme”
email newsletter (www.KrispyKreme.com) is for everyone.
It profiles customers, who announce their love for the company,
and announces new store openings; its dose of southern homespun
charm makes that newsletter a viral marketing machine.
3. Customer Plus-Delta
TiVo should systematize online community feedback and make
it a highly visible system. eBay’s executives convene
customer advisory boards of Power Sellers several times
per year. Meg Whitman, eBay’s CEO, often leads those
sessions. She is a feedback machine who solicits customer
input and uses it to make company decisions. As she says,
like a mantra, “eBay is a company of customers.”
Another example is the solitary work of Starwood Corp.’s
“lurker” William Sanders, who has posted thousands
of replies to the Flyer Talk Forum for frequent fliers,
and has engendered fanatical devotion for Starwood and himself.
4. Napsterize Your Knowledge
TiVo’s FAQs and troubleshooting tips on its Web site
are as stale as year-old bread. Instead, TiVo could prod
its product development experts to build weblogs discussing
features and their usage, along with tricks and tips and
sneak peeks. TiVo’s 45,000 evangelists in the TiVo
Community would share this knowledge via waves of word of
mouth. A special FAQ of how customers’ lives have
changed because of TiVo would be far more effective than
any celebrity endorsement, which TiVo often solicits.
5. Create Bite-Size Chunks
TiVo customer evangelists often convert newbies to the
TiVolution by demonstrating the machine themselves. TiVo
could focus this test-drive experience outside the retail
environment by encouraging and rewarding customers for hosting
TiVo Parties. eBay does this, and helps its evangelists
with party themes, activities, food menus, even invitations.
(TiVo tried this a few years ago but discontinued the program.
TiVo should try again—but have customers develop the
program.)
6. Build the Buzz
TiVo often relies on celebrity testimonials, but a celebrity
endorsement, even if it’s volunteered, is suspect.
Celebrities get paid for endorsements. Prospects do not
see Mike Meyers using his TiVo at home like they see him
in a candid People magazine photograph wearing hip new shoes.
Instead, TiVo should sponsor community events, inviting
customers and non-customers to try new models. The most
active and vocal TiVo customer evangelists could be ushered
into an invitation-only club and showered with TiVo-branded
merchandise to wear and give away. Customers could be encouraged
to write and record TiVo love songs the company could feature
a la “American Idol,” with the best ones delivered
via the TiVo special messages section. This is authentic
marketing, homespun and free of the slick advertising patina
that often taints TiVo marketing.
Those are six strategies that TiVo (or your company) can
use to embrace its most evangelistic customers.
So will TiVo make the leap of faith and believe that its
most vocal customer evangelists will help it grow and thrive?
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