Hallmark Innovates Milestones to Moments
Somewhere deep in the closet or in a box in the attic, just about everyone has at least one Hallmark Card saved from a special occasion in their lives. And marking milestones was always what Hallmark Cards, Inc. did best. It had strong consumer relationships, brand trust and a 100-year-old heritage, with the grandsons of the founder running the company.
Yet marking milestones wasn’t enough to support the company’s current vision of creating “a more emotionally connected world by making a genuine difference in every life every day,” and so Hallmark transformed how it innovates and engages its consumer, going from marking just milestones to celebrating any and every moment.
An Evolving Market
Jeanette Carter, vice president of Integrated Marketing for Hallmark Cards, Inc. leads the development and delivery of national and customer-level consumer activation, integration and engagement strategies across traditional, digital and social media. She explains, “Since consumers first heard the line ‘When you care enough to send the very best’ on the radio in 1944, we’ve formed a relationship with them and conveyed a strong sense about who we are and what we stand for. Our ads tapped into the essence of our great products that helped people connect and express themselves in a deeply personal way for generations.”
Carter notes that greeting cards continue to be the foundation of Hallmark’s business and that they will always represent a “powerful way for people to express their feelings.” She says, “We have an unmatched team of dedicated professionals that help us stay on top of how people are connecting. This deep understanding of consumer needs has been the engine behind our success for over 100 years and is the reason we continue to be a revered brand.” However, “We recognize the need to broaden our portfolio of products and services to truly deliver on our vision.”
Changing the Conversation
Considering its deep relationships with consumers and long history of product success — why a total transformation and not just standard product innovation? Carter says, “Our brand vision is at the heart of all we do at Hallmark. It represents our promise to the consumer and only by changing the conversation can we live up to this vision. We want Hallmark to play an even more relevant, integral role in people’s everyday lives.”
The company says the brand is only “half” the story of its vision. According to hallmark.com, “…because it’s not just about us. It’s about you — who you are, who you love, who you laugh and cry with, your relationships.” The real “power” lies with people. “Because what we create only matters when it is shared with someone else.”
So, in terms of messaging, Carter says, this meant that Hallmark needed to get its audience to understand that the brand stands for more than just “special occasions and special people.” In turn, the company would have to offer products that are “relevant” and “needed” in everyday life.
Listening to the Consumer
Identifying these elusive qualities in a product is, of course, the challenge of innovation, but Hallmark had a strong foundation for success in knowing its consumer so well. “This will continue to be the key to success for the next 100 years,” says Carter. Here, the consumer knowledge goes “beyond purchase history and demographics.” Hallmark has defined who “she” is.
Carter says, “We understand her needs, her rituals and the challenges she has in fulfilling her personal goals. Only by understanding her as a person, not just as a consumer, can you deliver relevant solutions that resonate with her.”
From this “consumer-led” approach, the company gained the driving insight for its vision and transformation. Carter reveals, “Our consumer told us that some of her most precious connecting times and memories occur in the moments in between the milestones.”
Needs-Focused Innovation
With vision as a purpose, and a goal of continually offering differentiated consumer solutions, in both greeting cards and now beyond, Carter says the purpose serves as an inspiration and acts as a filter, for how the company designs, sells and markets its products and services. “If a product or service doesn’t enhance relationships, or enrich lives, then we redirect our efforts to products and services that do so,” she adds.
A few years ago, the company reorganized to support this direction. Hallmark teams now focus on fulfilling specific consumer needs rather than just creating a new product. Carter calls this strategy “needs first, and formats second” and credits it for the success of the transformation. “Teams are now immersed in consumer needs, and therefore are able to unleash new ways to meet those needs,” she says.
For example, one team is focused on developing solutions that help consumers nurture their relationships with their kids and build their confidence. Another team concentrates on helping consumers capture, preserve and share personal stories. Yet another team is centered around helping moms plan and create meaningful “together experiences” for new and existing traditions — for milestones and everyday moments. “These are just three of the broad need-based states that we are currently focusing on,” says Carter.
Product Innovation
Hallmark’s recent product successes include Recordable Storybooks. The category has grown from one seasonal SKU to a library of over 20 titles. Carter says they demonstrate the power of focusing on “her” needs and flow of life. “It’s more than a book innovation, it’s a way to ‘be there when you can’t’, whether that’s across time, distance or generations,” she explains. Using “voice save technology,” Recordable Storybooks have been especially successful among grandparents and military families.
Interactive Storybuddies are original storyb
ooks and coordinating plush characters that use voice-recognition technology to unlock responses from the character when the story is read. Carter describes these products as helping bring story time to life in a memorable and meaningful way for busy families.
Blooming Expressions is a fabric flower, which transforms from a bud to a blossom and reveals a warm message again and again with the touch of a button. It reminds the person who receives it that they are loved and appreciated.
The “Go Cards” app is a solution for busy parents, which enables them to send a personalized paper card with photos while they are on the go.
Text Bands, launched in July 2012, are targeted to pre-cell phone age “tweens.” The digital wristbands allow a child to input a personal message that can be magically exchanged with another child by simply high fiving, fist bumping or hand shaking. “Moms love it because it helps kids interact face-to-face versus ‘heads down’ as they are with computers and game consoles,” says Carter.
Cards are still in demand and new offerings include handcrafted greeting cards that are designed with beautiful papers, rich textures and embellishments. Carter explains, “Consumers told us they want cards and gifts that are meaningful and authentic, as well as surprising and keepsake-able.”
Marketing & Technology Innovation
The model of needs first, formats second also drives the company’s marketing strategy and has led to an increase of investment in non-traditional media. Carter explains, “Our marketing efforts, especially in the digital, mobile and social spaces, are organized around these needs, versus standalone product introductions. We use these spaces to increase actual engagement with our consumers and to deliver ideas, inspirations, offers and solutions that are most relevant to them in their flow of life.”
To be part of the conversation and provoke meaningful connections, Hallmark partners with key “mommy bloggers” and “mom sites” daily to deliver messaging, and share integrated content and solutions with their audiences. “We focus our content on what is most relevant to consumers at any point in time — ensuring that we are helping them pause in the moments, not just the milestones, that are important to them,” she says.
A “Hallmark Tell Them” Facebook page was created to provide inspiration and create a forum for consumers. The premise of the page is: “Everyone has something they need to hear. Vow to tell them.”
They use consumer and partner content in Hallmark-owned spaces as well.
Living Up to the Promise
Hallmark measures sales, product sell-through and ROI through traditional methods like impressions, breakthrough and response rates, and balances them with analytics that track consumer perceptions, monitor and assess the conversations about the brand and products in the social media space and measure time spent within its owned spaces. Throughout a product’s lifecycle, Carter says, they actively solicit feedback from consumers to ensure that products, services and messages are resonating.
Through social listening efforts, Hallmark knows that conversations about the brand have increased significantly over the past few years across all media channels. “We measure our success in Facebook, not by the numbers of fans, but by the time they spend with us, their frequency and the quality of their conversations. And again, our numbers in this area are well above norms,” says Carter. “These, along with the sales from our new product introductions, give us confidence that we are living up to our brand promise.”
Future Celebrations
The future looks bright for Hallmark, and more importantly, Carter points out, for its consumers. “When we review our pipeline for the coming years, we are excited about the new ways we will be able to uniquely meet her needs. The focus on ‘needs first, formats second’ has really opened up a broad range of possibilities for new products, services and marketing,” she says.
QUICK TIPS
CARD COUNT
At Hallmark’s Kansas City, Mo. headquarters, 700 artists, designers, stylists, writers, editors, web designers, and photographers come up with the words and pictures that mark life as a “special occasion.”
Yet marking milestones wasn’t enough to support the company’s current vision of creating “a more emotionally connected world by making a genuine difference in every life every day,” and so Hallmark transformed how it innovates and engages its consumer, going from marking just milestones to celebrating any and every moment.
An Evolving Market
Jeanette Carter, vice president of Integrated Marketing for Hallmark Cards, Inc. leads the development and delivery of national and customer-level consumer activation, integration and engagement strategies across traditional, digital and social media. She explains, “Since consumers first heard the line ‘When you care enough to send the very best’ on the radio in 1944, we’ve formed a relationship with them and conveyed a strong sense about who we are and what we stand for. Our ads tapped into the essence of our great products that helped people connect and express themselves in a deeply personal way for generations.”
Carter notes that greeting cards continue to be the foundation of Hallmark’s business and that they will always represent a “powerful way for people to express their feelings.” She says, “We have an unmatched team of dedicated professionals that help us stay on top of how people are connecting. This deep understanding of consumer needs has been the engine behind our success for over 100 years and is the reason we continue to be a revered brand.” However, “We recognize the need to broaden our portfolio of products and services to truly deliver on our vision.”
Changing the Conversation
Considering its deep relationships with consumers and long history of product success — why a total transformation and not just standard product innovation? Carter says, “Our brand vision is at the heart of all we do at Hallmark. It represents our promise to the consumer and only by changing the conversation can we live up to this vision. We want Hallmark to play an even more relevant, integral role in people’s everyday lives.”
The company says the brand is only “half” the story of its vision. According to hallmark.com, “…because it’s not just about us. It’s about you — who you are, who you love, who you laugh and cry with, your relationships.” The real “power” lies with people. “Because what we create only matters when it is shared with someone else.”
So, in terms of messaging, Carter says, this meant that Hallmark needed to get its audience to understand that the brand stands for more than just “special occasions and special people.” In turn, the company would have to offer products that are “relevant” and “needed” in everyday life.
Listening to the Consumer
Identifying these elusive qualities in a product is, of course, the challenge of innovation, but Hallmark had a strong foundation for success in knowing its consumer so well. “This will continue to be the key to success for the next 100 years,” says Carter. Here, the consumer knowledge goes “beyond purchase history and demographics.” Hallmark has defined who “she” is.
Carter says, “We understand her needs, her rituals and the challenges she has in fulfilling her personal goals. Only by understanding her as a person, not just as a consumer, can you deliver relevant solutions that resonate with her.”
From this “consumer-led” approach, the company gained the driving insight for its vision and transformation. Carter reveals, “Our consumer told us that some of her most precious connecting times and memories occur in the moments in between the milestones.”
Needs-Focused Innovation
With vision as a purpose, and a goal of continually offering differentiated consumer solutions, in both greeting cards and now beyond, Carter says the purpose serves as an inspiration and acts as a filter, for how the company designs, sells and markets its products and services. “If a product or service doesn’t enhance relationships, or enrich lives, then we redirect our efforts to products and services that do so,” she adds.
A few years ago, the company reorganized to support this direction. Hallmark teams now focus on fulfilling specific consumer needs rather than just creating a new product. Carter calls this strategy “needs first, and formats second” and credits it for the success of the transformation. “Teams are now immersed in consumer needs, and therefore are able to unleash new ways to meet those needs,” she says.
For example, one team is focused on developing solutions that help consumers nurture their relationships with their kids and build their confidence. Another team concentrates on helping consumers capture, preserve and share personal stories. Yet another team is centered around helping moms plan and create meaningful “together experiences” for new and existing traditions — for milestones and everyday moments. “These are just three of the broad need-based states that we are currently focusing on,” says Carter.
Product Innovation
Hallmark’s recent product successes include Recordable Storybooks. The category has grown from one seasonal SKU to a library of over 20 titles. Carter says they demonstrate the power of focusing on “her” needs and flow of life. “It’s more than a book innovation, it’s a way to ‘be there when you can’t’, whether that’s across time, distance or generations,” she explains. Using “voice save technology,” Recordable Storybooks have been especially successful among grandparents and military families.
Interactive Storybuddies are original storyb
ooks and coordinating plush characters that use voice-recognition technology to unlock responses from the character when the story is read. Carter describes these products as helping bring story time to life in a memorable and meaningful way for busy families.
Blooming Expressions is a fabric flower, which transforms from a bud to a blossom and reveals a warm message again and again with the touch of a button. It reminds the person who receives it that they are loved and appreciated.
The “Go Cards” app is a solution for busy parents, which enables them to send a personalized paper card with photos while they are on the go.
Text Bands, launched in July 2012, are targeted to pre-cell phone age “tweens.” The digital wristbands allow a child to input a personal message that can be magically exchanged with another child by simply high fiving, fist bumping or hand shaking. “Moms love it because it helps kids interact face-to-face versus ‘heads down’ as they are with computers and game consoles,” says Carter.
Cards are still in demand and new offerings include handcrafted greeting cards that are designed with beautiful papers, rich textures and embellishments. Carter explains, “Consumers told us they want cards and gifts that are meaningful and authentic, as well as surprising and keepsake-able.”
Marketing & Technology Innovation
The model of needs first, formats second also drives the company’s marketing strategy and has led to an increase of investment in non-traditional media. Carter explains, “Our marketing efforts, especially in the digital, mobile and social spaces, are organized around these needs, versus standalone product introductions. We use these spaces to increase actual engagement with our consumers and to deliver ideas, inspirations, offers and solutions that are most relevant to them in their flow of life.”
To be part of the conversation and provoke meaningful connections, Hallmark partners with key “mommy bloggers” and “mom sites” daily to deliver messaging, and share integrated content and solutions with their audiences. “We focus our content on what is most relevant to consumers at any point in time — ensuring that we are helping them pause in the moments, not just the milestones, that are important to them,” she says.
A “Hallmark Tell Them” Facebook page was created to provide inspiration and create a forum for consumers. The premise of the page is: “Everyone has something they need to hear. Vow to tell them.”
They use consumer and partner content in Hallmark-owned spaces as well.
Living Up to the Promise
Hallmark measures sales, product sell-through and ROI through traditional methods like impressions, breakthrough and response rates, and balances them with analytics that track consumer perceptions, monitor and assess the conversations about the brand and products in the social media space and measure time spent within its owned spaces. Throughout a product’s lifecycle, Carter says, they actively solicit feedback from consumers to ensure that products, services and messages are resonating.
Through social listening efforts, Hallmark knows that conversations about the brand have increased significantly over the past few years across all media channels. “We measure our success in Facebook, not by the numbers of fans, but by the time they spend with us, their frequency and the quality of their conversations. And again, our numbers in this area are well above norms,” says Carter. “These, along with the sales from our new product introductions, give us confidence that we are living up to our brand promise.”
Future Celebrations
The future looks bright for Hallmark, and more importantly, Carter points out, for its consumers. “When we review our pipeline for the coming years, we are excited about the new ways we will be able to uniquely meet her needs. The focus on ‘needs first, formats second’ has really opened up a broad range of possibilities for new products, services and marketing,” she says.
QUICK TIPS
- Let your brand serve as your inspiration and filter.
- Know your consumers beyond data and demographics.
- Bring value when using digital and social. Don’t just try the next big thing in marketing without purpose and goals.
- Focus on what capabilities and solutions will differentiate you the most and align resources appropriately.
- Plan, but stay nimble in your ability to respond to market conditions and new opportunities.
CARD COUNT
At Hallmark’s Kansas City, Mo. headquarters, 700 artists, designers, stylists, writers, editors, web designers, and photographers come up with the words and pictures that mark life as a “special occasion.”
- 10,000 new and redesigned greeting cards annually
- 49,000 products available at any one time
- 38,000 retail outlets
- 30 languages
- 100 countries