Christmas Bonus Blowup

MOTIVATION AS MARKETING

'Tis the season for Christmas bonuses.

That doesn't necessarily mean a lot of folks are actually getting bonuses, of course.

In this economy, a lot of folks just better be happy they have jobs and to heck with the bonuses, Cratchit!

Bah!

Humbug!

PUTTING THE SCROOGE INTO YOUR COMPANY'S PERFORMANCE

Once upon a time, I worked for a very small company. There were typically never more than 9 or 10 employees, plus the owner and his wife.

Each Christmas, the employees would be bonused with products from our inventory. We sold high-end audio gear, so we were all gear junkies by nature. The bonuses were a natural fit and always raised spirits.

Then, one year, business went somewhat slack.

Things were off enough that the owner decided not to give bonuses.

He also decided not to say anything about it.

Christmas just went by with no bonuses or even merry wishes at all.

The mood around that place was black for months, and the feelings towards the owner were unflattering at best.It probably took a bit longer than expected for the sales slump to reverse itself.

THE FROZEN TURKEY EFFECT

After that dinky little place, I worked in a company about 10 times larger and run by an enormously capable genius millionaire who ruled by fear and intimidation.

As you can imagine, the vibe around his company was typically uneasy. No one was ever sure when something was going to explode and bring the owner's abundant wrath crashing down around them.

One year, when business was in a slump, the owner eliminated the Christmas bonuses. Instead of checks, everyone received envelopes containing gift certificates for frozen turkeys from the local supermarket chain.

The mood around the company was, predictably, more of the same uneasiness with a darker, less festive color.

WHY THE ANTI-MOTIVATION ANECDOTES?

Because counterpoint is required to underscore the potency of the story you're about to hear.

It's about a small business that, like so many others in this economy, has been having a down year.

The owner of this business was going to cut his Christmas bonuses.

Then, he had one of those "I refuse to participate in the psychological recession" moments.

Let's call it an anti-recessionary epiphany.

He decided he wanted to come from a place of abundance.

So, instead of cutting the bonuses, he TRIPLED the bonuses to all his 80 employees.

Yes, in a downturn, this man increased the Christmas bonuses by 300% to each of his 80 employees.

Apparently, people were coming up to him, crying and saying things like, "Now I can have Christmas," and "Now I can buy my son a present."

This man had no idea how much people were suffering--even inside his own company.

And what is the net result of this coming-from-abundance, tripling-the-Christmas-bonuses psychology?

HIS BUSINESS IS NOW BOOMING

By sharing the wealth (instead of the poverty) with the people who work for him, his business is taking off again.

And really, should we be surprised?

Happy, loyal employees are motivated employees.

Motivated employees increase performance.

It's a little surprising how some companies--companies who, by virtue of their culture, should really understand this kind of motivation and the resulting benefits--are utterly incapable of coming even close to this level of performance.

On the contrary, the way many of these companies are coping with downturn is by eliminating their best people--which directly impacts the company's performance, and ruins the morale of the people responsible for it, thereby worsening the company's performance. (I know of one such company who released an inarguably stellar top manager the same week his name appeared in a trade journal as one of the top leaders in his profession.)

This isn't to say everyone should be tripling Christmas bonuses. That would be impossible for some businesses. But there is a distinct advantage in this psychology of abundance.

SHARING THE MOTIVATIONAL WEALTH

I can personally vouch for the incentivizing power of abundance psychology and generosity in leadership.

I've worked for some of the most generous and optimistic people around, and it's darned refreshing. These people inspire you to move mountains for them.

Which improves the performance of the company.

Not everyone can be a Dale Carnegie, of course.

But the power of positive management and treating your people with abundance will accomplish things that no amount of ad spending can possibly achieve.

SPECIAL THANKS

A tip of the elf cap to Marshall Zweig of Oz Advertising & Productions who related the tripled bonus story. I recently recorded VO on a series of Little Caesar's commercials for Marshall, and this man is truly one of the most upbeat and inspiring folks you'd ever want to do business with. While he probably doesn't have 80 employees (yet), my guess is he would triple the Christmas bonuses to every one of the people who work for him.

And most importantly, a special thanks to all of you who continue to read and comment upon this wretched weekly screed. A belated Merry Christmas and Happy Hanukkah to each and every one of you.

Screaming Downhill For Fun & Profit

DASHING THROUGH THE SNOW AND DOWNHILL ON A MARKETING SCHUSSBOOM

There's a good chance you don't ski.

Despite that, you've probably heard of Vail.

It's one of the most famous ski areas in the world, and the single largest ski area in the United States.

And you are about to learn something crucial from what they've done with their advertising.

Here now: an actual paradigm shift. (Not a gratuitous use of an often meaningless phrase. This is a true paradigm shift.)

VAIL HAS YANKED ALL THEIR ADVERTISING DOLLARS

Not forever and not completely.

But they've no doubt sent the skiing press into a tizzy.

They used to be one of the biggest advertisers in ski magazines, and they've canceled all but 20% of their usual print ad budget. They've tossed the other 80% into a reserve fund.

Why?

Because things have changed.

Like any other business working in a traditional media environment, they would come up with a marketing direction, they would create ads and they would buy space in the magazines--all well before the season started.

The problem with that approach?

THE BEHAVIOR OF THEIR CUSTOMER CHANGED

They'd be locked into a marketing direction, and they couldn't do anything about it if the people to whom they were advertising happened to not be responding.

And responding they weren't.

Apparently, last winter, they found that their customers were doing things like not deciding on Christmas skiing vacations until the week before Christmas--which is unheard of in the ski industry.

But that's what happened.

And when things like that happened, the marketing department was unable to react if 80% of the ad budget was already spent.

WELCOME, SOCIAL MEDIA

Much of this change in behavior has been influenced by sites like Twitter and Facebook.

So, Vail has done the smart thing: they've gone where their customer is.

They're using social media platforms to keep the message out there with the people who care.

Then, when they see an opportunity to advertise, they can act via media with much shorter lead times--like newspaper and banner ads.

To borrow from the words of Vail Resort CEO Rob Katz, the traditional advertising group, the PR group and the social media group all work together on a week-by-week calendar..

They're working their marketing almost like a political campaign, thinking on their feet and adapting strategy on the fly as necessary.

SO WHAT?

I'll tell you so what.

This is the new reality in advertising & marketing.

And, especially if you happen to be in radio, this is an astonishing lesson in how to adapt and survive.

One of the clichés radio people love to throw around is about radio's "immediacy." Radio is great because it has such immediacy.

What a lot of radio salespeople like to think that means is that if you sign a contract today, you can be on the air tomorrow.

That's not immediacy.

When something happens, radio can cover it immediately, unlike newspaper or TV.

And, like with Vail's marketing department, radio advertising can adapt to the immediately changing requirements of a marketing program in a constant state of flux.

Just like newspaper and just like banner ads.

ADAPT AND SURVIVE STRATEGIES WILL BY NECESSITY INCLUDE SOCIAL MEDIA

If you're not on Twitter and Facebook, it's a good idea to be there.

You need to be there because you need to know how it works.

And you need to know how it can affect an advertiser's business.

Because the media salespeople who understand the tectonic shift that social media is causing in marketing, and know how to implement social media on behalf of their clients, are the ones who will thrive.

If you'd like to see a 9-minute video of Vail CEO Rob Katz explaining how this all happened, visit http://adage.com/brightcove/lineup.php?lineup=18982295001&title=52412902001