Monday, January 20, 2014

How Fitbit Succeeds at Consumer Engagement

For those of us that love gadgets, self-data monitoring and keeping healthy, the Fitbit is the ideal gadget. In case you’re not familiar with Fitbit, the Fitibit is a tracker you wear around your wrist—similar to a bracelet or watch—and it will magically count your calories, steps taken and monitor how well you sleep. Actually there is a lot of science and mathematics behind how the device figures out your steps, but it seems supernatural.

Not only is the Fitbit a great device for keeping track of your health, the company is a master at using marketing tools such as gamification, social and community to keep users engaged.

Gamification is the use of gaming principals—like earning levels or points—in order to reward users for engaging. This is similar to Yelp’s leader boards or becoming a “mayor” on Foursquare for checking into a place more than anyone else. For Fitbit, gamification includes providing badges for reaching different milestones—lifetime steps or walking 5K, 10K and 15K steps in one day. In addition, you’ll get a big green smile for every goal that you meet. I personally love trying to reach as many goals of possible. Fitibit has daily goals for number of steps, miles walked, calories burned, number of active minutes and ounces of water drank. 

Implementing social into the Fitbit application helps to keep users motivated as well. With your permission, the Fitbit application will look for users in your smartphone contacts and Facebook friends and provide a list of Fitbit users you can add. Once connected, you can view your friends’ steps, send messages, cheers and taunts. In addition, if you like to brag to a wider group of people, the application allows you to send automatic tweets as well as Facebook and WordPress blog posts from your Fitbit on your activity.

My Fitbit Dashboard - Friends names removed for privacy

If earning badges and competing with friends isn’t enough to keep you engaged, Fitbit also provides a community to help keep you motivated. You have the opportunity to join different types of groups for Fitbitters ranging from groups for desk-jockeys to age-based (30s, 40s, 60s) to location.

If you’re in the business of trying to engage users, Fitbit provides some powerful lessons on how a combination of gamification, social and community can help keep users motivated and engaged.

Monday, January 6, 2014

Are Bowl Game Sponsorships a Good Investment?



On New Year’s Eve I was watching the Chick-fil-A Bowl and instead of focusing in on the action on the field, my thoughts went to the return on investment (ROI) from having the naming rights to a bowl game. According to Sports Business Now, the cost to brand a bowl game can range from $300K for the Heart of Dallas Bowl to $17.5M for the Sugar Bowl or the Fiesta Bowl. Chick-fil-A falls into the economy bowl plan with a mere investment of $2.5 million.

When I dug a bit deeper into how the naming rights for bowl games are sold, I found that the fee is not just for having your name on the marquee. According to Sponsorship.com, these naming rights are really just “value adds” for multi-year season-long media buys with ESPN. Under their 5-year deal with ESPN, Chick-fil-A has media buys on ESPN as well as the naming rights to the Peach Bowl. With their brand renaming the Peach Bowl, Chick-fil-A can use that exposure to help promote their brand on a national level. Currently Chick-fil-A operates in 39 states and Washington D.C.

In addition to having exposure to a predominately male audience that is an ideal target for Chick-fil-A, there are also those hard-to-measure benefits for the Company such as the goodwill from the community for sponsoring a local event or the hospitality aspect of having a luxury suite at your own bowl game. In the case of Chick-fil-A, sponsoring the former Peach Bowl makes sense since the bowl game occurs in the Company’s hometown of Atlanta. Although the bowl sponsorship clearly has some tangible benefits, I’d be interested in seeing the results Chick-fil-A is achieving from earned media and search. Some metrics I would measure to determine ROI would be as follows:
  • Nielsen ratings - # of viewers
  • Number of social media hits on game day - mentions, follows, posts and shares
  • Number of news stories - blog mentions, articles written or press releases
  • Lift in branded keyword searches on game day and the days following
  • New visits to Chick-fil-A’s website during or immediately following the bowl game
  • Unique visits to the website that end on a search for the nearest Chick-fil-A location
  • Any bumps in sales in the days following the bowl game
Chick-fil-A has several options to measure the success of their bowl game sponsorship campaign. Do you think owning the naming rights to a bowl game provides a demonstrable ROI?