- Custom-Made Thanks.
- It's all in the details.
- Olympic Excellence, Pride & Passion - How the Olympic sponsors....
- Olympic Sponsors' Promotions: From coins to wine, how Canadian companies are creating Olympic buzz
- How well do you know your client? Building Lasting Relationships
- Virtual Contests - Legal and logistical challenges related to onine contests
- Click to Enter: How to streamine your online contests
- Recession-Proof: Motivation and Inspiration

Custom-Made Thanks.

by Jennifer McPhee

Artistic and personal, how art has a place in rewards.

When Lisa Janssen’s clients are searching for corporate gifts, the predictable stuff simply doesn’t cut it. Her high-end clients want something that’s eco-friendly, locally-made, and totally original. So Janssen, owner of Great Gift Ideas in Toronto, often relies on handmade items made by Canadian artists. “Everyone does coffee mugs,” she says. “Everyone does pens. Everyone does those stress balls. Everyone does the typical, typical stuff. But I focus my business on things that are more unique and exclusive and really make a statement because I want my clients to go, ‘Wow, that’s really cool.’”

One of Janssen’s hottest product lines right now are the quirky desk accessories made by Colin Schleeh of Schleeh Design. From his workshop inside an industrial building in Montreal, Schleeh creates bendy, twisty “MORPH” pads which are hand painted or printed on recycled paper. Another Schleeh product — his refillable “COMPACT Post-it” pads — sit in elegant wood holders and include a metal slider that allows users to save trees by tearing off as little recycled paper as necessary. From a corporate branding perspective, Schleeh’s desk accessories are ideal because the paper takes a nice image and he can also laser-engrave or print on the wood or sliders. “My customers love them,” says Janssen. “They’re on the expensive side, but I’ve already had reorders because they’re so beautiful.”

Artistic corporate gifts maycost more than many inexpensive promotional products manufactured overseas. But often handmade gifts are surprisingly affordable. And many say the investment is worth it because one-of-a-kind gifts send the message that your company, clients, or employees are special. “By giving something out of the ordinary, you are celebrating that,” says Mark Lewis, president of the Ontario Crafts Council, and co-owner of Beaver Valley Glassworks, a glass-blowing studio located in a converted barn near Collingwood, Ont. “You are saying, ‘We are not just a mindless company that doesn’t care.’”

Michelle Forge of the Council of Ontario Directors of Education (CODE) hired Lewis and his wife Tanya Zaryski to make glass paperweights for roughly 200 presenters at CODE’s two most recent conferences. The colourful swirled-glass objects cost $25 each and included the organization’s logo and artist’s signature discreetly on the bottom. “As educators, we are always looking for ways to support the arts in our schools and our programs,” says Forge. “And this demonstrated that support very clearly.” In hindsight, her only regret is not attaching a card with the artists’ names, explaining that the paperweights were handmade. “They are gorgeous,” she says. “And the price point was good too.”

Forge gives her own paperweight prime real estatespace on her office desk — and this, perhaps, points to themost compelling argument for investing in handcraftedpromotional items. Instead of stuffing these objects intodrawers, people tend to display them on walls and deskswhere they continue to create buzz on a company’s behalf.“A large part of what motivates me to do what I do is that I really believe objects hold meaning for people,” says artist Christie Chaplin-Saunders, owner of Artifacts in Clay based in Chester, N.S. “And what the really conspicuous corporate giveaways don’t have is nuance. With nuance, you get a more sophisticated messaging and sometimes the object is interesting enough to provoke a conversation. It’s a lot more valuable than having a logo hit someone in the eye.”

Chaplin-Saunders makes functional sculpture inspired by nature — mainly bowls that look like different types of shells. Her work looks delicate, but is actually sturdy enough for the dishwasher. And her creations are also surprisingly inexpensive. Her mussel-shaped business cardholders, for instance, cost just $12 each and customers receive a 15 per cent discount when they spend $500 or more. She cautions, however, that her production cycle is fairly long. “Depending on the time of year, we can turn things around at different speeds,” she says. “But, as a very rough guide, the minimum would be 12 weeks depending on the size of the pieces, the number and the design.”

Fine artist Jaspal Rangi, owner of Monsoon in Montreal, specializes in artistic corporate gifts. Along with large corporate paintings and murals, he creates hand painted or printed silk ties, scarves and shawls. When a major exhibit comes to a Canadian museum or gallery, Rangi is often commissioned to design a silk garment for the gift shop based on an interpretation of the featured artist’s work. He also frequently designs garments for businesses, government, and quasi-government agencies to present as gifts when courting business in far-flung countries. “That way they can take something other than maple syrup,” he quips.

Rangi’s sophisticated corporate clients tend to be plugged into the art world and balk at anything that even remotely resembles an advertisement. His main challenge is creating garments that are beautiful but still capture the essence of a company. Like most other artists, he engages in a back-and-forth consultation process with clients before getting the green light to produce the items.

When a corporate client first approaches Rangi, he scrutinizes the company’s website before meeting the client. “The main question I ask is, ‘what are you all about?’” he says. “When people think of you, what comes to their mind?” Usually, the client wants to incorporate colours, logos or even buildings that people automatically associate with them, he says. So he works these elements into an initial sketch for the client to review. Once they’ve agreed on a direction, he emails a final sketch, delivers a hard copy, and produces a sample. “Ninety per cent of the time, the sample is fine,” he says. “But 10 to 15 per cent [of clients] say, ‘We never thought it would look like this.’ Maybe it looks a little too bold. We say, ‘That’s fine,’ and do a second sample. We’ve never done more than two samples, knock on wood.”

To avoid discouraging business, Rangi charges just $375 for the entire design process. And although some of his high-end clients order exceptionally pricey items, his garments are typically quite reasonablypriced. For instance, the wholesale price of his silk ties typically ranges from $16.50 to $32.50.

Most artists do everything they can to keep their overhead costs down so they remain competitive and stay afloat. However, the weak economy is starting to take a toll on the already fragile arts industry as companies cut back on luxury spending, and, in some cases, struggle to pay for product they’ve already ordered. “We’re really feeling it,” says Chaplin-Saunders, who exports a third of her product to the United States. “[Last year] started out alright, but it didn’t finish very well.”

However, Schleeh says the economic slowdown has actually helped his business. More distributors are giving his products to their own customers as a way of self-promoting, he explains. “That’s increased a lot,” he says. “They want to be more visible and they are using us to do it.” Schleeh also predicts that more companies will start buying original, handmade creations because, in a tougher market, they need to find ways to shine. “I’m excited by the current conditions,” he says. “People want to get a bigger bang for their buck.”

It's all in the details.

by Roger Gingerich and Danielle Gulic

It’s the end of an era: as we head out of the worst global recession our planet has ever seen, along with the doom and gloom that came with it, we are forced to be relevant again. We need to prove value to our customers and we very much need to stand out. Brand style and choice can do that for your company.

I’m not saying men should be in three-piece suits and ladies in ankle-length dresses. I have seen a more professional look in a smart pair of shoes, designer jeans, crisp dress shirt and a sporty blazer than I have in the 1940’s office dress code. But I believe that dress can reflect significance in this new economy. Ask yourself: is your professionalism in this new era shown through your dress code and more so, through your promotional apparel choices?

It’s a cliché, I know, but in the world of corporate profiling, “It’s all in the details.” It’s time to review past corporate choices: do they match where your organization is going tomorrow? Who is your client base, what is your demographic profile — is it white collar or blue collar? Where will your staff or promotional event be seen? Do your employees require “nine-to-five” uniform wear; will they be at a trade show or golf tournament? Demographic profiling is no different for apparel brands than it is for any Canadian organization. Whether it’s Calvin Klein, Polo Ralph Lauren, Ashworth, or Izod, they all have a pulse on the demographic they serve — their aspirations, their ideals. Now it’s a matter of associating your organization with the brand that best suits your image or mission statement. Successful companies and their staff stand out, and they are dressed appropriately. Is your company what is wears? For Danier Leather, they certainly think so. “Danier’s market is career minded, lifestyle oriented, fashion-aware and self assured,” says Ralph Goldfinger, of Canada Sportswear Corp., the Exclusive Distributor of Danier Corporate Sales Merchandise in Canada.

Orest Kostecki with PVH Career Apparel thinks brand market placement is key: “The power of the company is the power of our brands.” He explains that by wearing the brand, the image truly comes across: Van Heusen, for instance, is a timeless style for special occasions, while Calvin Klein, one of the leading fashion design studios in the world, has trendy designs and fabrics with a European feel. And as the outdoors name suggests, Timberland is modern, functional, environmentally responsible and is inspired by an authentic outdoor heritage

Being a believer in brands, they represent far more than just the quality of the garment. We buy our favourite vehicle because of its design proficiency or its environmental footprint, or the ethics the company stands for, and of course, their quality track record. Apparel brands are very much in the same genre. They are innovators in fabrications, silhouettes, and technology and make their brand relevant in their specific markets. Brands also have both short-term and long-term strategies for their market positioning, which isn’t different from the organizations that make up the Canadian landscape.

If your corporate wardrobe had a voice, would it be singing or screaming? What is your company look? Is it clean, classic, modern, innovative, casual, detailed, sleek, technical, traditional, and/or attention seeking?

Olympic Excellence, Pride and Passion - How the Olympic sponsors are promoting the Olympics and their brand.

by Melanie Chambers

Excellence, passion and pride. These are three Olympic values that are reflected in the promotions, contests and gifts for the 2010 Olympic and Paralympic Winter Games in Vancouver.

And for those Olympic sponsors creating Olympic promotions, bearing the Olympic logo and representing the Games is also a chance to reveal their passion for their brand and their employees.

Whether it’s rewarding top performing employees that represent excellence within the company with a trip to the Games or offering loyal consumers oncein- a-lifetime promotions, companies have begun, some even years in advance, building the excitement to the lead up to the Games.

Passion

For sponsors, much of the excitement and buzz around the Olympics is happening right inside the office.

“We have a long-standing Olympic commitment and it has become part of the internal culture — there’s a lot of Olympic spirit here,” says Scott Tabachnick, a corporate media relations officer for Coca-Cola Canada.

While most Coke employees are working on some facet of the Games in one form or another, there are 130 selected employees whose job really revolves around the spirit of the Games. The Live Olympic Team Leaders, affectionately known as LOTLs, have been instrumental in launching and developing a variety of contests and internal games as well as communicating news around the Olympics.

The LOTLs were chosen from a four-stage selection process — one of which was an essay describing their passion and commitment to the Games.

Once they were chosen, the LOTLs were charged with the task of keeping employees up to date with new promotions and Olympic information, not to mention they will be working at the Games.

Their work within the office gearing up for the Games has been both creative and inspiring. Instead of a standard email update to employees, the LOTLs gave every employee a special “Olympic’ menu that sits on their desk. Similar to a plastic standing card on a restaurant table, the desk drop, with a changeable paper menu, updates everyone on new Olympic items and how employees can get more involved.

One such contest was a test that asked employees various questions about Coke promotions and contests. About 500 employees entered the test of which the winner, who would receive an Olympic premium, was chosen from a random draw.

Very early on, employees were also given a screen saver that counts down the days until the February Games.

“If that doesn’t motivate you to get everything done and in order, I don’t know what does,” says Tabachnick. “It’s a good reminder but it also gets the excitement up.”

Other sponsors also had their own version of LOTLs.

Pride

When McDonald’s chose its Olympic Champion Crew, 300 employees that will serve the athletes and visitors at McDonald’s restaurant stalls set up for the Games, winners were revealed over a webcast.

This webcast allowed the entire crew, spread throughout the country, to meet one another electronically. “People from Newfoundland were blogging with people from B.C.… to watch those people bond so quickly and come together was pretty amazing,” says Mike Balaka, director of human resources for McDonald’s Canada.

The Champion Crew will also have a chance to blog back home during the Games. They get full on bragging rights, as the crème de la crème of McDonald’s, to blog about their free accommodations, airfare and a choice of an Olympic event. And even though they’re working six hours, employees will get paid for eight hours. A nice bonus.

The search for the best-of-the-best took months of planning.

Head offices chose 210 of the top performing restaurants out of 1,400 franchises across Canada; the criteria was based on such things as quality, service and sales. From those top restaurants, each manager chose one employee that stood out: “They’re there because they represent the best of McDonald’s,” says Balaka of the final 300 chosen out of 77,000 McDonald’s employees nationwide.

Since the announcements, news has spread like wildfire: Champion Crew members have appeared in local newspapers from coast to coast from High River, Alta. to Hawksbury, N.S. For one Maritime employee, it’s a momentous trip of firsts: “I’ve never been past Moncton or on a plane and British Columbia is one of the two places I’ve always wanted to go,” said Janelle Dowling, a resident of Pownal, P.E.I.

Excellence

For Rona, whose 70th anniversary coincides with the Games, their Olympic promotions are a chance to transfer the Olympic values into their long-standing Canadian brand: “Those values get into the consumer mindset,” says Pierre L’Heureux, vice-president of marketing, image and sponsorships. “Plus there’s the Canadian pride as well.”

Rona is offering consumers 30 VIP packages; winners will receive an all-inclusive package to the Games for three days that includes airfare, accommodation and pass to an event.

There was also another draw for a VIP trip: five people for five days at the Games. Every day of September a new winner was announced for the VIP packages.

For Bell, the exclusive telecommunications partner for the 2010 Winter Games, the Games’ sponsorship coincided with a customer offer called Refer a Friend program. When a Bell customer refers a friend or family member for the Bell Move program — and an order is placed — the customer earns a chance to win a trip for two to the Vancouver 2010 Winter Games.

“The Olympics are a unique advertising opportunity; they don’t just speak to one audience segment,” says Allison Johnson, media relations officer at Bell Canada. “Young andold, men and women, the Olympics allow us to reach everyone at one time and really display our brand with strength. For example, last August we used the Olympics to launch our new Bell brand.”

For many sponsors, this is their first foray into sponsoring an Olympic event. “This not only reinforces Birks brand, it offers us a chance to showcase the blue box and it reaffirms our legacy as a trusted North American brand,” says Dan Kratochvil, group divisional vice-president of product development. Although this is the first Olympics for the 130-year-old company, Birks have previously sponsored the Pan American as well as Commonwealth Games.

As the official supplier of jewellery for the Games, Birks created a thoughtful collection of gifts and mementos — almost 50 in all — that are inspired by the Games.

Charm pendants for bracelets have been one of the most popular items; and new this month: a replica of the torch used in the torch relay, which is a 106-day relay across the nation through over 1,000 communities.

The miniature torch, one-third the size of the original torch, will wholesale for $295. The torch is part of a limited edition series, only 50,000 units, that comes in a wooden box with a stand for presentation. And finally, the torch is made, designed and manufactured entirely in Canada: “We’re very proud of that as we can showcase Canadian talent.”

Being an Olympic sponsor also gave the company a chance to work with other Olympic sponsors. Because Birks are vertically integrated and can design, manufacture and produce product in-house, they are poised to create customized gifts for companies such as Petro-Canada and RBC. “For whatever the gifting needs — whether it’s a presentation or gifts — we’re able to design and manufacture specifically for them using their composite logo.”

by Lisa Wood

It may be a year in advance of the Vancouver 2010 Olympic and Paralympic Winter Games, but sponsors are already off to the races with their promotions. The 2008 Beijing Summer Olympics brought huge pay-offs for sponsors like Coca-Cola, which nearly doubled its brand awareness amongst Chinese consumers. In the months leading up to the Winter Games we’ll be on the lookout for some exciting promotions from Vancouver 2010 sponsors. In this issue, marketingedge magazine puts the spotlight on some collectibles, contests and merchandise.

How do you get people to collect 15 Winter Olympic-themed quarters? According to Brian Grant Duff, owner of All Nations Stamp and Coin in Vancouver, it could be a challenge for the Royal Canadian Mint. It’s partly due to collector burnout, he says. “Speaking as a dealer, there are so many Olympic coins. It’s such an enormous program — it’s the largest Olympic coin program in world history. It is tough to wrap your head around all the different varieties.”

Joining forces with Petro-Canada and RBC to create promotional items, using the coins as bait, could be the Mint’s answer. “It was logical for us to team up and tackle this as a team as opposed to individually,” says Allyson Zarowny, senior advisor of Olympic programs for Petro-Canada.

The coins are first distributed from participating RBC branches and Petro-Canada locations. From Petro-Canada’s perspective,this is a great way to attract customers into their retail stores. “If you have a regular quarter, you can exchange that for a special Mint collector quarter,” says Zarowny.

But sometimes two collectibles in one is more effective. Petro-Canada also offers Vancouver 2010 coin sport cards, a promotion available over the three years leading up to the Games. “People collect hockey cards and baseball cards — the card is a neat way to take a look at the Games and we’re actually going to be coming out with a tin which will hold four of the sport coin cards. It’s another way to draw in collectors,” says Zarowny. Each card celebrates an Olympic or Paralympic sport and features a special colour version of the circulation coin, priced at $7.95. “The two things that are great about it is price point and it’s a licensed product,” she says.

When a collectible may not be popular on its own because of “collector burnout,” combining it with a promotion and with a high-traffic partner can’t hurt: “We have 700,000 transactions a day. There’s lots of opportunity for people to come in and buy one of the products,” says Zarowny.

Conducting a joint promotion also creates good brand association, she says. “We find that as a company we align ourselves with the Olympic and Paralympic values and so those products in our sites are a great way to make people aware that that’s the type of company we are. Aside from having a great souvenir, it’s a great brand to promote at your location.” The advice she gives to other companies considering a collaboration, is to partner with organizations that share similar values as you do, and use the opportunities you have through your partners.

Heather Popliger has always wanted to go to the Olympics. So when this Ontario resident heard the announcement that the 2010 Winter Games were to be held in Vancouver, she got on the phone to her west coast cousins. “I wanted to stay with them so I wouldn’t have to spend a fortune on a hotel,” she says. She would have been buying her tickets online like most Canadian fans last fall had an August Globe and Mail contest not intervened. The Vancouver 2010 print media supplier’s Podium Picks contest offered entrants a chance to win two tickets to the opening ceremony plus round trip airfare, accommodations, spending money and tickets to select events. Similar contests were held by fellow Vancouver 2010 sponsors, GE and Petro-Canada.

Popliger learned about the Podium Picks contest from a site called Contest Canada.com. “Podium Picks was advertised inhome in The Globe and Mail, in both external and in-house online properties and through email blasts,” says Sean Humphrey, director of marketing at The Globe.

To play, participants had to guess where Canadian Olympians would place in each of the daily sporting events at the Beijing 2008 Olympic Games. Correct guesses earned them ballots for the contest and a greater chance of winning. Popliger won the gold, but there were also five Plasma televisions and 30 HBC clothing packages awarded.

When she received the email saying she won, Popliger felt disbelief. “They enclosed in the email a contact phone number. I called the person back and asked them to confirm that I actually was the winner.”

Popliger was already a loyal Globe reader before she won Podium Picks and says: “I am pleased that they offered this contest. I am forever indebted to them.” Humphrey says the contest was enthusiastically received and adds: “Podium Picks was a great way to engage Canadians in the Games and to get to ‘know’ our athletes better too. Podium Picks allowed us to start building a community of Globe Olympic enthusiasts. We will be reaching out to them — and others — in the coming months as we build towards the Games.”

Vancouver 2010 Olympic Winter Games is one of the most significant sponsorship commitments in The Globe’s history. “These are truly ‘Canada’s Games’ and we want to bring the Winter Olympics closer to the fans. We are planning a series of reader promotions that will engage Canadians coast-to-coast in new and exciting ways,” says Humphrey.

While a hoodie or hat is always good for joining in the spirit of the Games, for those interested in the finer things Canada has to offer — I’m talking wine here — they’re lucky that Vincor Canada was made official wine supplier to Vancouver 2010. “Because they’re Canada’s largest wine company, Vincor was really proud that they were allowed to win this bid…It could just as easily gone to another country’s brand,” says Leeann Clemens, spokesperson for Vincor Canada.

Being a sponsor presents a huge opportunity to shine the light on the fact that Canada has a thriving wine industry, says Clemens. “On a global scope our industry is very small. What they’re hoping is that it will not only put Canada on the world stage but the Canadian wine industry as well.” Vincor is certainly doing a wide array of promotions to get the word out.

Wine lovers may have noticed Olympic fever when Vincor’s Jackson-Triggs’ EspritTM Chardonnay and Merlot started showing up on store shelves and in restaurants in 2007. Named to capture both the French and English connotations of the word “spirit,” they are co-branded with the Vancouver 2010 emblem. Clemens says the Esprit wines are selling successfully. “The fact that a $1.25 from every bottle sold goes directly to the Olympic athletes, that’s just a great reason for customers to want to buy it.”

Inniskillin, also part of the Vincor family, boasts its own Vancouver 2010 contribution and promoted it with a launch party. Olympic freestyle skiers Steve Omischl and Deidra Dionne, Canadian artist Gordon Halloran and pastry chef Thierry Busset were on hand in November to sign bottles and speak at the British Columbia launch of the Inniskillin Vidal Icewine Commemorative Edition. Halloran, who is internationally renowned for using ice as his canvas, was a natural fit to create the artwork for the bottle’s label. “The artwork was taken from Gord’s ‘Paintings Below Zero’ installation at the Cultural Olympiad of the 2006 Olympic Winter Games in Turin, Italy,” says Shivauna Brown, Vincor Olympic project manager. Sold in a tube, the commemorative Inniskillin icewine stands out on the shelf.

“Promotions are one the most valuable modes to generating excitement towards our Canadian athletes. Accounts are able to leverage our marketing rights through promotions tied to the Esprit wines,” says Brown. There are more promotions to look forward to from Vincor Canada in its efforts to win gold for Canada’s wine industry. From innovative retail and restaurant promotions, high visibility at Vancouver 2010 events, hospitality programs, and corporate gifting opportunities, it promises to be an interesting year for promotion hounds. Cheers to that!

How well do you know your client? Building Lasting Relationships

by Will Andrew

As a global recession of daunting proportions bears down, entrepreneurs the world over are asking themselves how best to maintain a competitive edge while continuing to grow business. In an unstable economy, when expense accounts and consumer confidence are contracting, business owners would do well to invest in an often overlooked aspect of their company: clients.

Assessing your client relationships represents an inexpensive — if not free — way to grow business and build loyalty. Clients will appreciate your attention and you will gain a better understanding of why they choose to do business with you, and more importantly, what it will take for them to continue that relationship.

Identifying a client’s needs is the key to building a long-term relationship. Their needs may be obvious; they will likely have come to you to fulfill an immediate, often short-term need. However, the simple step of asking them to articulate their needs can do a few things:
• reaffirm their interest and your commitment to helping them accomplish their business goals;
• give clues about their likes and dislikes, allowing you to better avoid discomfort and disappointment during a project; and
• provide insight into their current challenges.

This knowledge will best position your company to consistently meet the needs of a client. At the same time, you will not be handicapped having to react to unforeseen challenges specific to the client. As simple as it sounds, asking a client to be specific about their needs will let them know you are interested in their goals, but it is also important that you demonstrate to them that you have listened and understood their needs.

You will be judged on your ability to perform and deliver; therefore you are more likely to be successful if you know the client and their needs, almost better than they do. Working with a client without a clear understanding of their needs, dislikes and challenges can have expensive and far-reaching consequences. Not only will you potentially lose the client, but it may also zap your opportunity for referrals and tarnish your reputation — every industry is a small world and word spreads fast.

Your assessment of a client’s needs must be repeated at least once a year. Consider how much your own business has changed and evolved over time. The same will be true of your client’s business.

With business owners under increasing pressure to trim costs, be aware that clients are as vulnerable as ever to competitors who promise results. Don’t take your client relationships for granted. Despite other companies vying for their attention, their relationship with you should be comforting; you understand, above all the others, their business needs, dislikes and challenges.

Borrowing from my experience as an entrepreneur, I leave you with the three rules that should govern your client relationships:
• understand what the client wants by asking them to articulate their business needs.
• gain an awareness of the client’s environment so that you can observe their business challenges; and
• remember that client relationships develop quickly, but can be lost just as quickly to competition.

Initiating and fostering a dialogue with your clients is an inexpensive but invaluable way to grow business and build loyalty. Clients will be more flexible and forgiving if they understand that you are listening to them and are committed to helping them meet their business goals.

Virtual Contests - Legal and logistical challenges related to online contests

Part 2 of a series by Len Kahn

Contests tied to product promotions are undergoing a renaissance. In large part, it’s because of the ever-efficient and convenient Internet and digital communication technologies. Long the workhorse of the marketing industry, contests have fallen out of favour in recent years because they cost too much to implement. Not to mention retailers are reluctant to dedicate valuable floor or shelf space to point-of-purchase displays, and they certainly don’t want to be seen as fulfillment partners for the companies offering the contests.

However, with the Internet now firmly entrenched as an accepted mass-marketing vehicle, companies are showing a renewed interest in contests. In essence, they are utilizing the power of emerging online tools and technologies to breathe new life into this old jalopy.

In part two of this series, we examine the legal and logistical considerations you need to know before you launch your online contest.

Fun - wow!
From the outside looking in, contests seem like a lot of fun to organize and deliver. Funky creative, cool prizes, engaged participants and “off-the-wall” public relations activities often come to mind.

The reality, for those of us in the industry, is that behind all the “buzz” lies some risk, as well as a range of logistical challenges. How do we ship prizes? How do we target respondents? How does one validate entrant information and manage the flow of entries? And, of course, how do we provide an adequate level of customer service and support?

According to Ryan Kelly, general manager of Guelph-based VLinteractive, the Internet has actually helped alleviate a number of the challenges associated with traditional “paper-based” contests.

“Traditionally, contests relied on mail-in entrants or 1-800 incoming entrant calls. This incurs significant labour costs, in addition to the inefficiencies of processing invalid entrant information,” says Kelly. “Online technology affords marketers a wide array of virtual ‘filters’ which greatly decrease this procurement and entry handling process.”

According to Kelly, filters can be easily set up on a contest website to ensure valid entrant information, including location, address or number of times entered. Online contests not only validate entrant information, but they also automatically upload this information to entrant databases — human intervention required! The result is a “clean” database of valid entrants which does not need to be rekeyed — a real cost saver.

Tricks of the trade
With respect to online sweepstakes, Allen Chankowsky, vice-president of Toronto-based MBC Marketing, offers one piece of advice: put the entry form a few pages deep into the process. Doing what the marketer wants the entrant to do is “rewarded” with the opportunity of winning a prize. By contrast, if the entry page is at the front, you lose the potential to engage the user with your product or service — usually the main goal of the program. As well, the easier it is for the participant to enter, the greater the potential for abuse. Instant win types of online contests require considerable more security.

Another challenge that marketers may come across is the need for constant monitoring of the host web server for load balancing problems. When a large scale online promotion with tons of prizes is live, it can attract a lot of user involvement. The back-end web development needed for these types of contests requires multiple servers to ensure quick access to the promotional content. Without the servers working overtime, entrants must wait for pages to load in their browser, or even worse, they might crash the server.

Don’t forget PQ
One of the most common misconceptions that marketers have when contemplating a national promotion is to exclude the province of Quebec. Since Quebec is the only province that requires marketers to register and pay tax on a percentage of the prize pool, many marketers feel that it’s just not worth the effort. The reality is that the Quebec registration process is fairly straightforward; however, some marketers simply don’t want to go through the effort of setting up a French website or paying the tax.
,br> Considering that Quebec comprises 25 per cent of the Canadian population, it makes economic sense to invest in the French translation and pay the tax. Marketers may be leaving money on the table when they choose not to include Quebec in their plans.

Legally speaking
Besides the obvious entry logistics, online contests have some not-so-obvious legal considerations as well.

According to Eric Swetsky, a Toronto lawyer who specializes in the area of advertising and marketing law, the legal requirements of an online contest are rather similar to a traditional contest. Swetsky does note that because on-line contests may be accessed by the world at large via the Internet, the sponsor of the contest may want to restrict eligible entrants in the rules for the contest to entrants who reside in Canada so that the sponsor does not become subjected to the contest laws of countries the sponsor is unfamiliar with (if the sponsor does want to permit entrants from a foreign country, the rules for the contest should be reviewed by a lawyer from the country to ensure compliance with that countries’ contest laws).

Swetsky believes that since so many contests are unique, they will often have innate legal requirements. “However, all of the rules that would apply to a typical contest — skill-testing questions, geographic limitations, age restrictions etc. — apply equally to online contests. The biggest difference is the widespread accessibility of online contests. This can significantly add to the risk and liability faced by the contest promoter.”

Swetsky therefore encourages any company considering an online contest or sweepstakes to consult a lawyer who knows the specific legal regulations and requirements.

The bottom line
Marketing professionals can be bullish about the potential for online contests.

Chankowsky cites a combination online/offline contest that MBC executed for Bell Sympatico. The contest used the distribution power of another client — McDonald’s Restaurants of Canada. Participants received an online scratch-and-win at participating McDonald’s restaurants, then visited the Sympatico website to play the game. Customers received a follow-up email after each time they entered, which included a downloadable food coupon at McDonald’s.

To promote the contest Sympatico posted five million banner ads, and sent an email to its 200,000 online email customers. The contest generated a strong participation rate and an exciting new partnership for Sympatico.

Finally, online contests directly address retailers’ concerns about store space and fulfillment costs. Online contests do not require neck tags or end-cap space. And in many cases, the contests can be promoted “virtually,” via retail partner websites, social marketing tactics or search engine campaigns.

“Again, this can greatly decrease the cost of contest deployment, says Kelly. “And it enhances our ability to stay current. No longer do we have to be concerned with out-of-date contest materials in the field. Online contests can be born and live entirely virtual — negating the costs of print materials, distribution and the related management of these materials in the field.”

Click to Enter: How to streamline your online contests

by Len Kahn

Contests — long the workhorses of the marketing world — are undergoing a renaissance. And it’s all because of the convenient and efficient Internet and digital technologies.

For many companies, contests have traditionally offered an impactful way to engage customers with their brands, and are a cost-effective way to collect information. Marketing-oriented contests go back to the turn of the last century, where institutions such as the Century Banking Company of Mississippi offered public school students the chance to win prizes including season’s tickets to the local baseball team, or a nickel a week for life for writing an essay on “Why Deposit with the Century Banking Company?”

By the 1920s, companies were offering prizes for writing advertising slogans or submitting award-winning birdhouses. The use of contests escalated in these advertising boom years: everyone from brewers to packaged goods manufacturers, cigarette companies and newspapers were getting in on the act.

In recent years, however, many companies have backed away from the use of contests as an integral part of their marketing mix. Why? Simply put, the cost; it’s the cost of creating it, as well as the legal bill. But it’s not just money: retailers are reluctant to act as fulfillment partners for the companies offering the contests, consumers are tired of “yet another contest,” and even government-run lotteries and games-of-chance are drying up.

But now, with the Internet as a mass-marketing vehicle, companies are showing a renewed interest and focus on contests — in essence, utilizing the power of emerging online tools and technologies to breathe new life into this old vehicle.

A recent Google search revealed 588,000 results for the keywords “online, contests, and Canada.” Included are sites such as www.contesthound.ca and www.canadacontests. com that accumulate current contests, making it easier for participants to find and enter contests.

According to Ryan Kelly, general manager of Guelph based VLinteractive, digitally-driven contests offer a number of tangible benefits over their traditional ‘paper based’ counterparts. “The best contests will actually take on a social networking aspect,” says Kelly. “Participants not only engage to win but to also rate other entrants, compete with each other and share discussion with likeminded peers. Companies attach their brand to a social building platform as opposed to a one time ‘fill out and win’ engagement.”

He points to the Guinness ‘Ambassador of Goodwill’ contest as an example. Entrants entered to win the title of Guinness Ambassador; to win , they were asked to upload their own videos and text explaining why they would be a good ambassador, all the while trying to earn votes from their friends and site visitors to earn the title. The winner not only received the Ambassador title, but also a slew of Guinness merchandise celebrating St. Patrick’s Day. “Guinness turned a one-time contest into a social network of tens of thousands of people over the course of four months,” says Kelly.

On the business-to-business side, Kelly says one of the biggest upsides of running a contest online is the opportunity to extend the participation level, ultimately building a stronger profile of a prospective customer. “Companies can offer daily or weekly prizes, or more intricate points or prize accumulation functions — all depending on the participation level of site visitors. The more you participate and tell us about your business, the greater your chance of winning. At the end of the day, a marketing manager can turn a contest into a series of ballot generating touch-points, resulting in not only greater prospect insight and sales, but also brand recognition from participants. The best part is that there are almost no additional costs for these activities once the contest engine is built.”

Kelly cites www.winwithedsmith.com, a contest site VLinteractive built for jammaker E.D. Smith, as an example of the type of robust contest engine that manages to run a multitude of contests, without breaking the bank.

One expert believes that online contests are clear frontrunners when it comes to contests. Allen Chankowsky, vice-president of Toronto-based MBC Marketing — one of Canada’s leading promotional marketing agencies — says that while the administration logistics between traditional and online contests are much the same, (rules, declaration and release forms, prize sourcing, fulfillment, etc.) online has communication advantages over traditional channels. For example, if prizing is offered over the Internet then online offers a tremendous advantage for prize fulfillment whereby the prize can be “sent” or downloaded from a secure source to the winner.

Chankowsky also sees the social networking aspect of online contests as one of their strongest features. “The most common add-on feature for an online contest is referred to as a ‘viral’ add-on,” he says. “This ‘Tell-a-Friend’ feature allows for an entrant to share the excitement of a contest or a prize with their own network of contacts via email or text. The communication then ‘spreads’ in a viral fashion, leading the way to more and more people hearing about the contest.”

Chankowsky believes that TD Canada Trust’s website (www.tdcanadatrust.com/visacontest) has a nice mixture of online and traditional contest elements. “The online media is used to promote the use of the card product and to publish winner information in a ‘live’ environment. This sort of on-the-fly publishing is particularly useful as consumers generally want to know if winners have been identified and who they are. This can bolster consumer engagement as the data is both relevant and immediate to what the audience may be seeking. Traditional contest executions simply do not allow for this type of immediacy and relevance and could detract from consumers engaging with the campaign,” he says.

Even the ultra-competitive brewing industry is taking another look at how contests can help energize their brands. Rob McLean, international brands marketing manager for SAB Miller, indicates that that while SAB Miller hasn’t been using contests in Canada for the past several years, they are now are now rethinking their tune.

“Now, when we think about contests, we think online first,” says McLean. “Our retail partners such as the LCBO have no interest in managing contests for us. Their time and retail space are just too valuable. With online, we can minimize hard costs such as printing and postage, remove the need for front-line fulfillment, utilize our central IT resources to build the online contest platform, and connect with our customers in a medium they increasingly prefer — the Internet.”

McLean adds, “With our premium brands such as Grolsch, we want to ensure that if we do run a contest we offer premium prizes, consistent with our brand’s position. The Internet is an ideal vehicle for showcasing higher-value prizes such as trips and tours. Our customers can get a sense of the true value of the prize offer, which we believe gets them more deeply engaged with our brands and the contest itself.”

Of course, the online environment does pose a number of new challenges for marketers. “Crawler” engines troll the web for contest opportunities, opening the door for high numbers of unwanted entrants. And the very nature of the Internet means that your competition will be common knowledge to your competitors.

According to Kelly, there are a number of technical “blocks” that can be put in place to ensure the integrity of contest entrants. “Things like auto-email entry confirmation and electronically limiting the number of entries from a particular email address are useful tools in ensuring that the folks who enter your contest are actually customers or prospects.”

Chankowsky adds, “The gold standard preventative measure for online contests is employing CAPTCHA (Completely Automated Public Turing test to tell Computers and Humans Apart) where the entrant needs to copy the letters of an obscured word only readable by humans. The entrant must ‘pass’ this challenge before being allowed to enter the contest.”

Lastly, the bulk of contests are still launched and promoted using traditional media such as print, radio, television, direct mail or point-of-purchase. The Internet remains an inefficient way to broadly get the word out. Marketers must be prepared to “prime the pump” with some up-front advertising dollars to ensure that news of their contest gets out to the right people, at the right time and place.

But after that, thanks to the power of the Internet and emerging digital technologies, your online contest will almost certainly deliver more bang for your buck than traditional paper-based models.

In part two of this series we will look at the legal and logistical challenges associated with online contests.

Recession-Proof: Motivation and Inspiration

by Aaron Moscoe & John Furnish

Dwight Eisenhower once said, “Motivation is the art of getting people to do what you want them to do because they want to do it.”

Today the importance of attracting, motivating, and retaining employees is undisputed.

Times have changed, and the measurable impacts of employee engagement are now finally understood, taking this topic from a relatively “soft” and obscure human resource matter to a respected way to influence employees and company performance.

Progressive sales and marketing professionals recognize that the same principles are directly applicable to a company’s relationship with their consumers, distributors, sales and channel partners. They value their company’s “employee brand” which is intrinsic to their most critical internal and external business relationships.

DO NOT CUT IN HASTE

With the current economic climate, some companies will examine each expense line item on their income statement to see where they can make cuts. The truth is that making cuts in haste can be short-sighted, so much so that these cuts may be at the expense of the company’s long-term opportunities. Research shows that scaling back on investments in marketing and employee programs is tantamount to being penny wise and pound foolish.

In boom times where growth tends to come with relative ease, small to medium business enterprises tend to appreciate growth but are often less concerned about market share, particularly in fragmented markets. In a stagnant or tightening economy, it’s important for businesses to focus on market share in order to protect the absolute size of their piece of the pie. And in order to maintain volume or growth, increasing market share is crucial. It may sound like a tall order, but the good news is that this is often the easiest time to do so as competitors are cutting back on their investments in marketing initiatives and employee incentive, reward and recognition plans.

A recent study indicates that the average cost for lost productivity, attracting, hiring and training a new employee can be as high as $50,000. Taking this into account, it’s easy to see why more companies are investing in well structured employee reward and recognition programs. And a happy employee is a productive one. Increased employee engagement leads to a more creative, productive and loyal workforce — your employees won’t want to leave! In a down economy, some companies will cut back, but hold off.

When employees are engaged, believe in the company they work for and enjoy the culture, they are far more likely to be advocates for the company, participate in employee referral programs and spread the message by word-of-mouth.

Evidence also demonstrates that increased employee engagement results in higher levels of customer satisfaction. Customer satisfaction and a strong culture are in turn positively correlated to company growth and profitability.

From a sales and marketing perspective, there is a definitive relationship between promotional activities and subsequent sales. Study after study confirms that if a marketer increases or decreases their traditional share of promotions relative to that of their competitors, similar changes occur in that company’s market share.

One study showed that organizations that did not cut back on their promotional spending enjoyed increases in both sales and profitability the following year by an average of 55 per cent and 40 per cent respectively. Marketers who cut back on their promotional spending did not experience significant growth during the same period and their profits did not keep pace with those of their competitors who continued to invest in customer relationships.

Examples in the marketplace are not hard to find. Kellogg’s took over the number one market share from Post by maintaining their marketing budget, while Post cut back in the name of fiscal responsibility. Not only did Kellogg’s investment in a recession provide shortterm results, but that investment has parlayed into market dominance over the long run.

The micro focus on expenses might suggest that there is room to cut on employee incentive and recognition initiatives: however, in tough economic times, particularly where companies have had to trim their number of employees, it becomes increasingly important to get higher productivity and greater performance from their remaining employees. These remaining employees need to be assured of their value now more than ever. Cutting back on incentive programs may cause them to worry about the stability of the company.

A company’s culture and brand, perceived with the minds of current and prospective employees, clients and channel partners are important, albeit intangible, assets that are most often developed gradually over time. Rather than a slash-and-burn approach, which frequently leaves an indelible mark on culture and brand perceptions, maintaining employee reward and recognition investments recognizes both the short — and long-term value and the developement cycle of these important assets.

GET FOCUSED, GET SMART

This is the time to do things smarter. Focus on best practices, such as ensuring that all company programs and benefits communicate the same message and are aligned with the company mission, vision and values. re-evaluate current programs to ensure that employees clearly understand both the behaviours and the outcomes desired and that the rewards and recognition are linked accordingly.

Show employees that they are valued: reward them with reminders of why they are valued. such a gift might include a home or family-oriented gift which says that the company respects the importance of the employee’s life outside of work. don’t forget the recognition piece as well. It’s a reminder to them that this place is worth the effort.

As opposed to many other areas a company may budget for, one of the unique elements of a well designed employee, consumer, sales or channel incentive program is that 70 to 80 per cent of the total program costs are variable and only incurred with the desired results. With such low fixed costs, risks are small compared with the return on investment beyond the initial set-up costs.

Post-war recessions in North America have lasted an average of 11 months. Companies that are prudent in the short term, while seeing it as part of their long-term plans, will emerge stronger.

STAY THE COURSE

The message is clear. For long-run success, stay the course. By maintaining rather than cutting investments in the short term, companies can take advantage of prime opportunities to build their culture, strengthen their brand relationships with consumers, employees and business partners, increase employee engagement, and increase their future market share. These are the companies that will be best positioned for long-term growth and success.