CRM - February 2009 - (Page 17)

Insight almost turn against that kind of thing, what originally was seen like an aspiration [these people having amazing parties]…suddenly turns to, ‘Look at all these fat cats enjoying something on the back of my hard-earned dollar.’” Owen points out that there’s a noticeable shift in public mentality and consumer behavior right now. As Americans feel the strain of the recession, they realign priorities. “Lifestyles of the rich and the famous was sort of a great story even two years ago, and today it’s perceived as very negative,” Owen says. “Waste is bad, traveling first class is negative, corporate jets are no longer an aspirational object but a sign of wastefulness—and that’s directly related to how people feel about their lives and the sacrifices they’re having to make.” Playboy and other entertainment companies make cuts— Research indicates that consumers but hope to keep the brand alive respond differently to marketing in a In an October memorandum to Play- recession. What was once seen as lavish ou know times are tough when Playboy cuts its enter- boy employees, Christie Hefner, the and cool can suddenly seem frivolous tainment and travel budget. chairman and chief executive officer, or tacky. Advertising becomes more The mid-October announce- wrote, “Some of these cost savings will cost-focused. And choices of models, ment of budget restructuring involved come from changing how we do busi- clothing, and even Playboy centerfolds other penny-pinching measures, in- ness. This includes capitalizing on tech- are reconsidered. In fact, according to an Environcluding spinning down its porn-to- nology in ways that include doing our own magazine pre-production work mental Security Hypothesis, when soDVD business branch. As recently as August, people were and building a more robust digital asset cial and economic conditions are difficult, Playboy’s Playmates claiming the entertainment industry management system.” Hefner of the Year tended to be older, might be recession-proof, or at least re- continues, “We will also re- “Some of these heavier, and taller. These resistant to the economic downturn. Tele- spond to changes in how consults suggest that environvision sales were still high, box-office sumers access content and cost savings will mental security may influence numbers were still soaring, and publi- advertisers use media. Thus, come from cations had yet to experience the lay-off we will continue to deliver changing how we perceptions and preferences for women with certain body more of our content digitally, massacres now gracing headlines. and facial features. All of this Recent months, however, have shown using our assets across multi- do business.” inherently affects Playboy’s that no industry is immune to a down- ple distribution platforms and turn—even the companies with high adding more a la carte offerings.” Inter- branding and the way consumers relevels of customer recognition and estingly enough, Hefner announced her spond. Perhaps cutbacks at Playboy restrong branding are affected. But how resignation from her 20-year post as flect the path dictated by the state of does a corporation restructure and es- CEO on December 8. The company is the country at large. “Playboy is being quite wise in toning sentially cut down on what it’s known refocusing its goals—and hoping that down, even if it’s not for cost savings,” for? For a corporation such as Playboy, customers still continue to follow. “It’s interesting that Playboy chose Owen says. At the very least, he adds, parties, appearances, and entertainment are its branding (in addition to the ever- [to cut] what they chose,” notes Richard one message consumers don’t want to robed Hugh Hefner and his entourage Owen, CEO of customer experience hear from a company right now is, of scantily clad “bunnies.”) Does cut- management provider Satmetrix. “The ‘We’re all having a really good ting expenditures in those areas chip parties are aspirational branding.… In time over here, pity you can’t a period of austerity, you see people make it.’” —Lauren McKay away at the Playboy brand itself? THE Recession ISSUE That’s (Not) Entertainment Y www.destinationCRM.com CUSTOMER RELATIONSHIP MANAGEMENT | FEBRUARY 2009 17 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - February 2009

CRM - February 2009 Contents Front Office Reality Check Customer Centricity The Tipping Point Express Service CRM on Twitter Breaking Customer Service Tradition Outsprinted That’s (Not) Entertainment Running on Empty Required Reading Up Against the Downturn The Numbers Tell the Tale Make Marketing Your Megaphone! Hold Onto Your Customers! Spend Your Way Out! Constructing a Virtual Customer Experience Next Customer, Please! It’s Showtime! From A(erospace) to Z(oology) Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - February 2009

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