January 7, 2008

note to marketers: people like treats, dammit!

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It’s now a well-told story. Krispy Kreme dough­nuts came out of nowhere, attrac­ted a cult follo­wing, spread like wild­fire, got over-exposed, then collap­sed under its own weight. When I could only get them by making a half-hour pil­gri­mage across town, I went there all the time. Once they became rea­dily avai­la­ble in my local cor­ner deli, I stop­ped eating them.
When I was a little kid in cen­tral Mas­sachu­setts, there was this local, old-style dairy named Pinec­roft, that ser­ved the best ice cream ever, but only during the sum­mer months. Then the dairy got sold to a big­ger com­pany, and the next thing you know they were ser­ving ice cream all year round. It never tas­ted quite the same after that.
Rosé tas­tes a lot bet­ter in the South of France than it does in Lon­don, no mat­ter how much you’re paying.
Lobs­ter is con­si­de­red a real deli­cacy, expen­sive stuff. Back in the 19th Cen­tury in New England wha­ling towns, local boar­ding hou­ses often had the follo­wing sign outside them, in order to attract the sai­lors’ busi­ness: “Lobs­ter only ser­ved 4 days a week!”
I only lis­ten to my CD of King’s College Choir during the Christ­mas holi­days. It pre­ser­ves the magic.
Scrim­ping and saving over many months for a $4000 English tai­lo­red suit is a much more uplif­ting expe­rience than buying an entire war­drobe of them with a sin­gle swish of a diamond-encrusted cre­dit card.
I rarely eat Bar­be­cue, but it’s usually the first thing I head for when I tra­vel to Texas. When I tra­vel to dif­fe­rent pla­ces, I always like to sam­ple the local fare. I once tried eating Mexi­can food in Geneva. Never again.
Though they pro­du­ced all three Lord of The Rings movies at the same time, they made you wait a year bet­ween ins­tall­ments. Peo­ple floc­ked to see them all.
One of the things I am most loo­king for­ward to in 2008 is the final sea­son of Batt­les­tar Galac­tica. It will be well after sum­mer till I see here in the UK, on DVD [I don’t own a TV]. I’ll pro­bably buy it the same day it beco­mes avai­la­ble, and I’ll pro­bably watch the entire series in a sin­gle, marathon ses­sion. I can’t wait!
Back when Kathy Sie­rra was blog­ging, she wouldn’t post very often. Every two weeks, perhaps. But BAM! when she wrote, it was ste­llar stuff. A real treat to read.
I guess you can already see where this is going: Peo­ple like treats. Peo­ple are indif­fe­rent to com­mo­di­ties, even when the qua­lity of the lat­ter is high. Your down­fall begins the minute peo­ple no lon­ger have to wait in line in order to get your pro­duct, the minute they no lon­ger per­ceive it as a treat.
[Update:] David St. Law­rence makes a great com­ment below: “When they are no lon­ger social objects, they are no lon­ger inte­res­ting.” Exactly.

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20 Responses to “note to marketers: people like treats, dammit!”

  1. Susanna says:

    Good post! One of those things that ought to be obvious, but someone needs to say it because it’s really not.
    Here’s a local exam­ple to add to your list: you can only eat local oys­ters in months that con­tain an “R” (i.e. the cold months). During the peak oys­ter months, peo­ple have oys­ter roasts, big par­ties where they enjoy bushels of oys­ters. I don’t think we’d have the par­ties if we could get the good local oys­ters year-round.

  2. I genui­nely laughed out aloud at this car­toon Hugh!
    And oh so true.
    When you think back to the Stormhoek/Thresher voucher viral last year, how many busi­nes­ses could say they enjo­yed even a frac­tion of the suc­cess Thresher did?
    OK, timing is everything and they got the lead on others (and you might rightly argue that the method of deli­very made a sig­ni­fi­cant dif­fe­rence to the suc­cess of the voucher too), but within a week, “e-vouchers” were everywhere, pro­mi­sing the world — but we had all spent up.

  3. Jigsaw Forte says:

    Hm… This makes an inte­res­ting amount of sense, and dove­tails nicely with an own idea or two on my own blog. It’s got roots, at least.

  4. jp says:

    Ahh, the treat fac­tor. It’s so impor­tant really and yet I’d for­got­ten it. Does anyone remem­ber when Star­bucks was spe­cial? In light of the recent cor­po­rate sha­keup I won­der if they do?

  5. I agree, although making something a treat isn’t always time, cost, or scar­city depen­dent issue.
    Some­ti­mes it’s about dis­counts, or the buzz, and almost all the time it’s about making something great quality.

  6. Bri­lliant!! AGAIN!! What are you smo­king these days!? I don’t know if it’s you or me but I read your posts and am awed, this year especially.

  7. Michael R. Bernstein says:

    The LOTR exam­ple is fla­wed: Although all three were *shot* at the same time, post-production did in fact take a year bet­ween movies. One side-effect of this is that they had more CPU-cycles to throw at the digi­tal effects in each sub­se­quent movie, and it shows.

  8. Dave Armstrong says:

    We used to have a Deli in our lunch zone in down­town. It was an easy walk and the food was hea­venly. Deve­lop­ment came in and demo­lished the buil­ding they had been in for deca­des. $1,000,000 con­dos went up for 25 floors. So many folks com­men­ted on how they mis­sed the place and so on. One day I overheard they had a new loca­tion. It was a tough walk, and they were on an upper level of an older buil­ding ins­tead of ground level, and that requi­red a long wait for an ele­va­tor ride. No sign outside and no side­walk seats like before. And a sma­ller space.
    It was pac­ked to the walls when I went there for the first time. At the cash regis­ter I asked the owner why he pic­ked such an out of the way, obs­cure, and old loca­tion.
    “We are a des­ti­na­tion. Not an impulse.” he said.
    I have never for­got­ten that expres­sion.
    And what a treat that lunch was …

  9. Keith Handy says:

    Damn, I miss Kathy’s blog!!!

  10. Mark Forman says:

    here’s another Dammit-agree with all the above. dam­mit this was a most bri­lliant post of some damn good ones. Keep ‘em coming(from time to time of course) don’t wanna turn em into Krispy Kremes…

  11. hugh macleod says:

    Michael R, and you’re argu­ment is fla­wed because it makes the assump­tion that that the stu­dio had no choice but to release the three ins­tall­ments when they did, like it was writ­ten in stone or something.
    Thanks for the kind words, Every­body :)

  12. To build on your own exce­llent work, when they are no lon­ger social objects, they are no lon­ger interesting.

  13. I recall when Coors beer was made in only one plant — It was Paul Newman’s brew. Now it is com­mon­place and a com­mo­dity.
    Is growth the pro­blem? Is Star­bucks too com­mon now? Is there a sweet spot that we should pre­serve and grow through mar­gin or maybe not at all?
    As orga­ni­za­tions grow do they leak cul­ture and just become the Matrix?
    Just been tal­king to a friend about her cha­llen­ges with growth in her orga­ni­za­tion so all of this is quite real for me right now
    Your post has sti­rred me up Hugh
    Rob

  14. Joe Raasch says:

    Great post Hugh.
    Now move from KK to Star­bucks. They were ori­gi­nally a treat. In the name of effi­ciency, they don’t even grind the cof­fee locally any­more. Though I still see peo­ple wai­ting, wai­ting, for that $4.00USD pri­vi­lege of a cup of cof­fee.
    A com­mo­dity treat?

  15. Robin Yap says:

    I won­der if this applies to avai­la­bi­lity online as well — as in peo­ple can read your thoughts on mic­ro­blogs (twit­ter), blog posts, face­book (and other) net­work acti­vi­ties, etc. Does this make one become ove­rex­po­sed thus lowe­ring the “I gotta [read, buy, get] more of..” factor?

  16. John says:

    Scar­city cer­tainly dri­ves up pri­ces, as we all lear­ned in Econ 101. But qua­lity can become a con­cern when a com­pany tries to expand to meet bur­geo­ning demand. I have seen seve­ral cases where a local res­tau­rant does well in a sin­gle loca­tion but fails after they try to expand to mul­ti­ple loca­tions. Qua­lity suf­fers because the expan­sion is beyond the capa­bi­li­ties of mana­ge­ment and ends up brin­ging the whole works down.
    I think you’re also seeing the “fad” nature of some social objects. Would Cab­bage Patch dolls have remai­ned popu­lar if supply had been kept cons­trai­ned, or would the manu­fac­tu­rer simply have fai­led to take advan­tage of the mar­ket while it was hot?
    As to Krispy Kreme, low carb die­ting drove a major stake through the heart of those dough­nuts.
    I have more I would like to say on this, but I have to run off to Star Bucks before the line gets too long. The wait can be mur­der this time of day.

  17. Jeff Schmidt says:

    Hugh -
    does this run coun­ter to the pre­vai­ling web 2.0 meme about making con­tent being ubi­qui­tous? Where it’s avai­la­ble everywhere, on demand whe­ne­ver the newly libe­ra­ted “consumer/audience …” wants it?
    Is WSJ crea­ting a treat by kee­ping the pay wall?
    Is Sony crea­ting treats by selling music on little cards you have to take home and enter a code into a web­site to get the music?
    Why isn’t DRM the same thing as having to trek across town for a Krispy Kreme?

  18. hugh macleod says:

    Jeff, if it doesn’t feel like a treat to you, then sadly, it’s not a treat. As a musi­cian, you should know what I’m tal­king about. We’re tal­king about the emo­tio­nal realm here, not the ratio­nal.
    Remem­ber, when you get in the car to drive your nephew across town to his favo­rite ice-cream place or toy store, the drive across town is also part of the ritual. “Trea­ting one­self” is a form of ritual.
    Whip­ping out your cre­dit card to get behind a fire­wall to access con­tent that’s not any bet­ter than a lot of free con­tent out there, would be a hard pro­cess for peo­ple to inter­nally ritua­lize, I would wager.
    One could also argue that if sud­denly, me or Kathy Sie­rra put our stuff behind a paid-subscription fire­wall, rea­ding our stuff would no lon­ger feel like a treat for most peo­ple, but a paid-for con­tent ser­vice i.e. a commodity.

  19. Jeff Schmidt says:

    thanks hugh — makes total sense!

  20. Tim Clague says:

    One addi­tio­nal thought on this idea which is essen­tially about limi­ting supply to drive up demand. Scar­city = treat. What about ‘ideas’ in them­sel­ves. Should you Hugh limit your ideas to make them more of a treat?