M A R K E T I N G - 2 0 2 0

We've Moved Down the Street

2010-03-17T14:11:00.000-07:00

Please click here to redirect to the new home for Marketing-2020.com :)

The Double Edge of the CTA Sword

2010-02-09T09:03:00.001-08:00

My lovely wife Nancy just asked me whether I'd ever gotten through to "that website" after watching the Super Bowl this past weekend. (Turns out that half the Super Bowl watchers say they do so for the interesting commercials).

Levi's had advertised "Free Pants" for their Dockers line -- and we of course responded to their CTA (call-to-action) by going to the web site. Alas, so did millions of other people -- because we could not get the site to come up. And no, I didn't make a note in my busy day to go back...

In the world of technology, just as with business models, the issue of scalability can bite you -- meaning that was an extremely expensive billboard.

A corollary to "You get only one chance to make a first impression" is "Serve the customer when they respond to your CTA." The same lesson applies to advertising with Google AdWords or Bing AdCenter -- if you promise 30% off a particular model, don't just send them to your home page where they'll be lost!

And by all means, don't leave them with "nothing". Later this month, when you work on your next campaign, ask your colleagues these two courageous questions:

How do we react if nobody responds?
How quickly can we scale if everyone does?

FACTA -- not a derogatory slur!

2010-01-26T20:57:00.000-08:00

One of the things I observe is least understood by both American consumers and businesses is legislation enacted in 2005 called FACTA (Fair and Accurate Credit Transactions Act).

These so-called "Red Flag" rules, enforced by the FTC, have been overhauled too many times -- first scheduled to go into effect in 2008, then 2009, and now June 2010. I predict that the first company prosecuted under FACTA will be the "canary" that wakes society up...

Until then, I thought you might want to know what is coming. The Act requires companies to take safeguards around personal information, principally to reduce the widespread growth of identity theft. (For example, you may remember the laptop stolen from a Starbucks Coffee exec which contained a couple million records of customer data including credit card numbers. Not picking on Starbucks alone, I'm sure someone from Peet's or Au Bon Pain has lost customer info as well!)

Readers take note -- the penalties are tough. Some have called it a "ticking timebomb".

$2,500 penalty per lost customer record, per incident. With potential Billion-dollar penalties for the lost laptop, this will affect business processes! (And no doubt inspire the already-profitable insurance industry to create new business offerings...)

If your business doesn't have "tight" controls in place, it is not alone -- according to this recent study.

While my practice does not center around these concerns, FACTA affects the way I help my clients acquire and retain customers. For those who haven't been able to work with me, you can find articles like this, to start looking at your internal practices -- and liability therefor.

Here's to staying on the right side of the law!

The Silver Lining to the Coming FTC Changes

2009-11-15T19:05:00.000-08:00

By now (mid-November) you may have read some of the bubbling commentary about the sweeping new FTC guidelines on endorsements and testimonials which take effect December 1st, 2009.

Much of what I've read is legal counsel, that this will affect all online and offline marketing, since:

Fines for violation run up to $11,000 per incident.
This is the first update of those regulations since 1980, when "disco" was in vogue -- a year before IBM launched the first PC (with DOS and no hard drive).
US law tends to overshadow other western countries.

Paul's summary of these changes could be the most abbreviated you'll ever read :)

Testimonials may no longer be AMAZING with a your-results-may-vary disclaimer. They must reflect typical results.
Endorsements from bloggers, sites belonging to network marketers, and links embedded by affiliate marketers (where money is made by the reader clicking) must be labelled as such.

The good news for all consumers is that the new rules raise the bar on transparency, which is a good thing for all of us as consumers. Labelling standards will evolve with case law, making our job as businesses and marketers.

One resource I have found helpful in that regard is Denise Goswell, a lawyer who was recommended strongly to me by a colleague. She has a short video and great assemblage of legalese (note to self, trademark that term!) I feel is quite helpful to anyone offering products or services today!

Watch it by clicking here. [This is an affiliate link, meaning that, like real estate brokers, I'll receive a few bucks "referral" if you buy anything from Denise -- voila, instant transparency!]

So... where's that promised silver lining??

How would a business learn what "typical results" are? Naturally, one must ask customers -- what a great reason to establish deeper channels of communication with clients than ever before!

I hope this opens your eyes to seizing the opportunity, rather than feeling constrained by regulations :)

Test: assets, assets everywhere!

2009-10-11T11:17:00.000-07:00

[This Domain For Sale]

In working with a client with some fantastic technology for making products and web pages more findable through search (see AnswerOil) I came across a competitor who reminded me of the carnal sin of recycling old web pages/domains.

Specifically, after going through their second rebrand in 3 years, I found that a competitor of theirs abandoned their 2nd URL, www.Guidester.com.

Someone in the marketing department (perhaps IT department) decided not to point the web address at the new one, which shall go nameless. Get this -- 147,000 references to the name and 5 hardcoded links to the now-defunct URL gone.

Asset utilization tip: make sure you are taking advantage of all the domains you control!

Quick -- what do you get when you cross EQ with IT?

2009-09-14T09:54:00.000-07:00

Growing up, you may have heard the expression, "Put yourself in the other person's shoes". The much heralded realm of Emotional Intelligence centers around this very type of empathy (the other half being self understanding).

My point today is that we always have opportunities to do this -- whether speaking to a boss, reviewing an employee, pitching a prospective customer, and on and on.

Sometimes they're "big things" and other times not. The question "are they sandals, boots, clogs, or moccasins" is a mental trigger for me to ask whether I've really imagined how the other person is experiencing our interaction.

Two great example of how this can happen every day, at a very small level, whether we're conscious or not, came to me today in playing tag to schedule a call with another businessperson.

He was scheduling with Outlook, and putting notes into the "email portion". I was receiving with Mac Mail, which only shows that text if I drill all the way into the calendar.

Yes, it would be nice to have Apple and Microsoft get their act together -- but I think we might have better luck moving to the South Pacific the island where I live! And it's really bigger than that -- just understanding that all the different systems (Google Mail/Calendar, Blackberry, Palm Pre, iPhone, Android, ....) may or may not do things the same was as our system does.
More significantly, he titled his meeting request as "Updates". Now his memory may be phenomenal so that when he looks at his calendar, he thinks "Paul Travis"! But all that happens for me when I look at my calendar is to wonder, who was I supposed to have updated and how was I to have done that? It feels like an incomplete, and puts me into worry mode -- what was I thinking that I would have made such a note?

My suggestion for this, on both the receiving and initiating end, is to entitle the appointment with both (a) parties involved and (b) responsibility. My standard format is "Travis calls Smith". Yes, a couple more characters than "Updates" but dramatically more helpful for both parties in recalling the discussion.

Bottom line: people are people, online or offline -- so remember to ask yourself what kind of shoes they're wearing the next time you're interacting with another person.

Travis' Second Scoop!

2009-09-10T04:59:00.000-07:00

Following up on my hunch about guiding the airlines to the big opportunities they are missing (see July 13, 2009 blog post)...

I see that Mashable is citing a research by Wakefield and the Wi-Fi Alliance, that 76% of frequent fliers would change their airline to have Wi-Fi. 55% would change their flight by a full day to have it. And another 71% of fliers would rather have Wi-Fi access over meal service.

Now who'll validate the other hunch? :)

PS. Inquiring minds will want to know about the First Scoop, earlier this year...

One decade ago, all over again

2009-08-20T12:13:00.000-07:00

Is anyone else's radar going off?

At the turn of the millenium, eyeballs were the metric that drove value -- not dollars -- which led to many companies to walk like zombies into the water, wishing upon a star, until they drown. Lots of money was made in the stock market, and then lots of money was lost.

Now we're seeing Twitter, Facebook, along with a gaggle of would-be's, with astronomical growth in subscribers/members/eyeballs and no clear path to profitability (ahem, one of my strong suits).

The latest to go down was www.tr.im, which like TinyURL and SnipURL, shortened long web addresses down to something easily typeable (also fit conveniently into Twitter Tweets where every character is almost 1% of your message!)

Lots of users but no revenue model...

Wake up, people -- that's an ingredient in your recipe not to forget!

[Contact me right away if you're experiencing this condition].

Getting on the Social Media Bandwagon

2009-08-12T16:05:00.000-07:00

I gave a presentation Tuesday on the "state of the union" in Social Media to the Chamber of Commerce in Wilsonville, OR -- near Portland. (You can view the slides on my LinkedIn profile).

The conclusion? Get your toe in the water. Social Media is changing every day -- nothing has passed you by; you can still catch up.

As promised in the talk, here are the links I referenced so nobody has to burn out their favorite pen taking notes :)

Feel free to use the email link to the right to ping me f there was something I mentioned and forgot to include -- also please shoot me an email with success stories of "toe dipping"!

Another take on The Four P's

2009-08-06T13:00:00.000-07:00

Wow... I had sensed that the new Seattle Sounders soccer team was getting traction in its first season -- but I had no clue just how well it's really doing.

Listening to Gary Wright (Sr. VP Bus. Ops. for the organization) give the lunchtime keynote at the NW Growth Financing Conference today was inspiring. He said that 67,000 people watched the game with Barcelona last night, and another recent international team drew 66,000.

They've sold 22,000 season tickets, which was a first-year target unheard of in the sport.

Gary said it is being called the most successful new franchise, not in soccer but in major league sports!

To what did he attribute this success -- a great logo, good funding, or another such secret?

He shared a completely different definition of "The Four P's" (not those that form the foundation of marketing).

People
Process
Product
Profit

Interestingly, most of the business world is headed in exactly the opposite direction, valuing profit above everything else.

In closing, Gary was quite candid that he had always dismissed soccer until getting wrapped up in it, and convinced me I have to go see what it's all about. No way will it displace my First Sport (hockey) but the Second is up for grabs :)

What Should The Airlines Be Doing Now?

2009-07-13T12:47:00.000-07:00

In my roles as both interim executive and President of the Pacific NW Chapter of the Institute of Management Consultants, one of the most common questions I get is... "What should we be doing now -- what are we missing?"

In order to address this, I want to drill in on item #4 from my July 11th post, which is massive to me as a customer.

In-flight A/C Power (a term I just coined, because Branson's crew is actually falling down on communicating this HUGE point of differentiation) addresses an irrational emotion for anyone who uses computers, DVD players, and even cell phones and PDA's. The wording they use is often "my computer just died".

My own "M.O." (modus operandi) in the airports is to scope out the electric outlet nearest my gate and "top up" my laptop battery in order to make the most of my onboard remote desk time. Certainly there are others like me.

So if I were consulting to another airline right now, I'd walk them through the process of identifying the "emotional nerve center" of the frequent flyer. What other things run around in the back of the mind of, not the million-mile club member and not the once-a-year traveler, but the person who has no issues jumping on a plane when necessary. These are not people who checked a survey box saying "Yes I would travel on a flight vehicle" but already do so multiple times per year.

Listen to what people are saying in the media about airplanes (maybe even "public places" in general). Check forums, do some online research. My gut tells me you'd find that a few key usability drivers would make a HUGE impact in customer perception.

When getting into a box with 200 other people for a few hours, they say things like

...I will be out of touch for the morning [or the day]...

In addition to the fact that cell phones can't be used in flight and computers rarely can be, there there are often many logistical challenges (e.g. verboten through security) that people feel either "cut off from" or "limited to" the world for some time.
...I'll be sharing my germs with hundreds of strangers...

The airlines haven't figured out to provide "clean air" and instead circulate the same air again and again. So drugstores and natural supplement stores now offer products that specifically support the immunity in situations like this. Did they figure out herbs that do something different at 35,000 feet? No -- they are solving the customer's stated problem! But obviously Boeing and Airbus have bigger problems to solve than this.

Of course it's not one or the other. I.e. when adding a differentiator, you still have to deliver what a customer expects from the service -- in this case, safety, "on time" arrivals, etc.

But imagine how people would rave (and no doubt be loyal to) an airline that

provided handsets to make Skype calls anywhere around the world for say 5 cents a minute
promoted good health with a trademarked "air rejuvenation and filtration" process
all along with having reasonable prices and got you there in one piece and on time

Exciting enough to write home about, eh?

Just the kind of thing you want for your business :)

More Virgin Commentary

2009-07-13T10:58:00.000-07:00

I shared with my young son Gabe how impressed I was with Virgin Air. No surprise that the son of The Columbo of Marketing would reply with, "What was so special about it?" After I described the photo in my last blog, he asked "Was there anything else?" Makes a dad proud :)

Pictured is another example. Learning from the world of residential real estate: if the front door and surrounding area are shoddy, it affects the visitor's view of the entire home.

Conversely, checking in to the registration area at Virgin American emanates "pleasurable". Color -- ambiance lighting as well as the hallmark Red -- is everywhere, without overkill, from the decor to the boarding passes. And I can't say that I've EVER seen flowers when checking into United or Northwest!

That's what prompted me to follow up with "more" -- since this brand definitely deserves more than one post. There is a lot you can learn, regardless of what business you are in, and especially how other airlines better learn or have their lunch taken from the proverbial plate.

As I was drafting this post on Virgin Air, I sat next to Sera Cawanibuka from Tourism Fiji who said that after her first "Virgin" flight, she told all the people in her office about it. Now they all "fly Virgin" and haven't used United, American, et al -- in years!!

Differentiation throughout All Touch Points

2009-07-11T06:46:00.000-07:00

I love having insightful weekends like this -- what a comparison/contrast in brand experiences!

First, I encountered four pieces of disappointment with Hilton:

Receiving double beds after requesting a king
Being placed at the very farthest room (felt like walking half a mile) from the elevator
$20 fee for parking when the dedicated lot immediately next door charges $13.95
$14.95 internet (wi-fi or hardwire) when nearby coffee shops and restaurants provide it on a complimentary basis

My point about the latter two concerns service focus. The parking place has NO other offering. Hopefully Hilton would see that my main need for them is lodging, and they shouldn't be charging ANY MORE than the next-door place. Between that and the internet access, my sense is that they feel they can "screw over" the captive customer.

Bad karma -- anytime.

And especially in today's competitive environment.

Then... I experienced the Virgin brand out of the UK, which I had heard of but had no particularly positive or negative expectations. I know you know what's coming, but I have to mention it anyway... I'm no longer a virgin to Virgin American airlines).

At every point along the process, I was impressed with Richard Branson's "human touch" -- professional and anything but "me too".

Web site - bold red and clever "Brit-ish" sayings
Customer service (called with a question about flight accommodations) - surprisingly friendly and welcoming to/acknowledging of "virgins"
Boarding pass - bold red and non-standard size
Cabin experience - entire plane has black lights emitting a purple glow instead of the traditional cold-white fluorescent lights (makes one feel "evening", disco (first class even has news-announcer-like microphones emitting up and around the seats, what a feeling of control)
...and...
(the best for last) AC Adapters at every seat! (no more running out of laptop battery power in the air).

This has definitely ingrained positive associations in my gray matter for the brand. I'll be intrigued to see what happens in my eval process next the next time I fly (better yet, what happens the next time I experience United, Northwest, et al).

A good place to begin is mapping all your touch points (email me if you'd like an example doc to work with) then look objectively (through the customer's eyes) at how your actions at each either support or deflate your brand goals.

Good modeling to you!

When does a product feature affect your personal brand?

2009-06-13T06:18:00.000-07:00

I don't normally "tweet" about a new feature in a given company's product or service. But I know how much our "collateral" affects our personal brand!

For example, when I meet someone whose business card says "Get YOUR free business cards at VistaPrint.com", I take them less seriously. Business cards ARE your "leave-behind", and have such impact on making and supporting the first impression you've made -- that it makes no sense to skimp here.

Same goes if I read the email address on the card is "SmithFamily@comcast.net". It is so inexpensive these days to get your own domain name (I have one for my family as well as multiple business domains) and forward your email that it absolutely makes sense. Your domain registrar will understand this, even if you don't :)

Similarly, if you are on LinkedIn, I highly recommend that you get a personal link. That way, whether you refer to it in your email signature -- or more likely, people point to your LI public profile when making an introduction -- it shows as

http://www.linkedin.com/in/paultravis

rather than something like

http://www.linkedin.com/pub/ptravis/2/3b/241.

FaceBook just implemented usernames as well (last night!) So especially if you are an occasional FB user, I recomment you take a moment to see if your proper name or favorite nickname is available.

It's all about taking the time to plan (and then execute) that thing many people struggle with -- your personal brand.

My lost patience with the National Poker Game

2009-05-29T16:54:00.000-07:00

This post has been bubbling in my head for some time, but 2 events today broke the camel's back...

First was my colleague, Max Clough, mentioning a client potentially dragging out an opportunity to seize a market, because of the "national (and worldwide) poker game" that we're experiencing.

Now on the one hand, I like that phraseology better than "The Economy". As in, "we can't make a decision because of The Economy."

Let's call a spade a spade. You're afraid you don't know what's going to happen and you're not confident that your business can survive.

Why?

Because you've been conditioned by the media for over half a year that the sky is falling! Now to be clear, I am not saying that there haven't been huge increases in the jobless. I'm not saying that institutions Fannie Mae and Lehman Brothers aren't failing and having huge repercussions.

What I'm saying is that people are still putting on their pants, and driving to work, and going to the movies, and.. and.. and..

The movie industry is up 14%.
Fast food companies are up.
Low priced toys/games are booming.
Almost anything "green" is selling.

Unfortunately telling the positive side of the story isn't as lucrative as the fear cycle: it's really bad so come back tomorrow and we'll tell you how much worse it got!

Now before I go off the deep end, I know you're wondering -- what was the second event?

It was this SmartBrief: 73% of marketers predict more spending.

More than seven in 10 marketers hope to boost spending three to six months before the end of the downturn, while 16% said they would increase their budgets "as soon as it ends," according to an online survey from the Association of National Advertisers. -- Adweek (05/28)

What this means is that people are conserving cash, just like banks are. Too many are just playing the "timing" game, when to put the chips back on the table. Am I upset about the 16% who said that they would get come back to the table when they could afford it?

No -- I look at the 73% (almost five-fold!) who hope to play "time the market", coming back "just in time", before everyone else knows that the situation has gotten better.

If there is anything I hope we learn/remember from this, it is that the tortise wins the race. Not the rabbit who wastes time chowing down, then runs fast, and then relaxes some more.

Plotting business strategy, developing process, and executing against plan is worth gold!

I was saying to my kids the other day, "there comes a point in growing up that you learn you can speak up and break with the crowd when they're doing something you know is wrong".

At the risk of over-repeating Steven Covey's great line: "The environment you fashion out of your thoughts, your beliefs, your ideals, and your philosophy is the only climate you will ever live in."

So think hard next time you catch yourself uttering a pessimistic remark... Let's all be seeking to create success!

Modern Day Networking -- Your Feedback Wanted

2009-05-27T07:40:00.000-07:00

Unless you've been hiding under a rock for the past few years, you've read the articles that say it's important to get to know people in (and outside) your industry... future customers, referrals, and potential leads to new jobs.

Traditionally called "networking" (as in, "building one's personal network") this can involve meeting people in situations like that pictured. And it can happen online, through one or more of the many social networks. This is great for people who don't like to "schmooze".

Given the number of companies laying off employees because of the credit crunch, I've had numerous people tap me on the shoulder for introductions and leads. Here is what I send most every one:

I'm happy to help out if I am able! The first thing I suggest in “modern day" networking is that you shoot me a LinkedIn request, which I'll accept. Then peruse the people whom I know, and initiate a conversation with those whom you'd like to meet, which I'll pass on. That will not only open up conversations for you, but it will help you stay “top of mind” for me and prompt me to think of more people for you.

You know what's interesting? Only about half do -- which is a good reminder that execution and follow-through can really set you apart in today's busy world!

PS. I'm interested in YOUR experience of networking.

Please add your two cents to this survey I am

conducting for some future articles -- thank you.

Perception is Everything

2009-04-27T07:38:00.001-07:00

I was reminded of the importance of packaging a few weeks back at the Pyramid Ale House in Seattle.

As an alternative to coffeehouses, this place is one I find very convenient for "holding court" (serial meetings) in Seattle -- how can you go wrong with free parking, wi-fi, and convenience to major highways? :)

Presuming the glass on the left were full with the same beverage, which would you reach for?

Nearly everyone I've asked has said the one on the right. Reasons: it looks more shapely; easier to hold; and by far the winner, there's more beer.

Fact is, the glasses have identical capacity -- 16 oz! (Out of disbelief, I tested -- pouring from one to the other).

In the information-marketing world (books/tapes/etc) it is well known that a CD in a cardboard envelope tops out at about $19 whereas the same CD and a booklet in a plastic "folio" container can get as much as $49.

How much more could you charge for the beer on the right (well-marketed, of course)?

Remember, you can create value through differentiation within your own product line -- most of which drops right to the bottom line.

So, how can you improve your packaging today?

The Importance of Differentiation

2009-04-04T20:06:00.000-07:00

Recently earning my CMC (Certified Management Consultant) prompted me as to revisit the importance of differentiation in the marketplace. In this particular case, only 1% of consultants have earned this accreditation.

While the Institute of Management Consultants has very low brand recognition in the marketplace (note they're not the Institute of Marketing Consultants, but give me time!) it is simply following the model of the CPA, which businesspeople have come to understand is more rigorous, exam-tested, and worth more than an [otherwise uncertified] "accountant".

This is especially helpful in the case of "consultants" (who tend to be born every time a company lays people off) where the business world really does benefit from having professional background-checking, courses taken and classes taught, and thorough indoctrination of international ethical standards and code of conduct.

One of my upcoming clients has an exciting, patented, energy-saving technology that provides 50-100% increase in electric motors. Our plans include creation of a certification that will help government, corporate, and consumer buyers know the difference between this technology and the status quo. Just like "Intel Inside" computer labeling, the Good Housekeeping Seal, and the "Underwriters Laboratories" label.

These communication devices help the customer in quickly understanding one level of quality vs. another. They (and partners) are willing to pay more for this!

The Opportunity: How can you differentiate your products or services in the customer's mind from the rest of the pack?

Innovating a 100-year-old product

2009-04-02T08:03:00.000-07:00

When I saw last year the "Tweel" by Michelin, I smiled insider for I knew the company had empowered its people to question the status quo of tires. It reminds me of one of my all-time favorite pieces of philosophy:

"Because its purpose is to create a customer, the business has two (and only two) functions: Marketing and Innovation. Marketing and Innovation produce results. All the rest are costs."
-- Peter Drucker, longtime management guru

Michelin says it will take 10-15 years for safety testing and to commercialize. Or, perhaps they're buying some time because they're uncertain about future revenue streams of repeat tire purchases now that tires that can't go flat any more!

TWEEL
Radical new tire design by Michelin.The next generation of tires, they are airless and are scheduled to be out on the market very soon. Just think of the impact on existing technology: no more air valves, air compressors at gas stations, repair kits, or flat tires!

What's the lesson for you?

Better to innovate and cannibalize your own product line "controllably" than to have competitors drive it without your control. Do the right thing for the customer (even if it means fewer replacement products to purchase) and you'll garner their goodwill and loyalty. How can you radically simplify their experience?

On "The Economy"

2009-03-04T11:59:00.000-08:00

I thought blogreaders might be interested in this interview I did with one of our OneAccord staffers last month...

What advice would you give to companies that are struggling due to low consumer confidence and the economic environment?

In a recent speech, I quoted Steven Covey's profound line, "The environment you fashion out of your thoughts, your beliefs, your ideals, your philosophy is the only climate you will ever live in." What if C.N.N. (Constantly Negative News) reported that the overall economic climate was going to perk up in 2016 or 2026? Would you be willing to "stay down" for decades because someone else says so?

The "leading" questions I ask company leaders who are struggling are the same I ask those who are succeeding:
Are you communicating more value than you ever have?
Have you revisited your go-to-market strategy? (Either keep it or reinvent if not sound).
Are you measuring where you make investments? (Cut back on those that don't generate a return).
Have you addressed your customer pain by segment? (There may be ways you can identify solutions at lower price points, or even higher price points providing much higher value).
My old friend Mitch Tarr shared this story that he heard from his sales manager at IBM: There was a man who sold hot dogs from a stand by the side of the road. His son came back from college and said, 'Dad, don't you know the economy is in a recession and wall street is worse.' The man said to himself, 'My son must know what he's talking about, he's been to college'. So he took down his sign and stopped yelling, 'hot dogs for sale!' and sure enough, his sales dropped off.

This is the time to market and sell whatever you have developed before. Monetize those assets you have already developed so you can survive to see the brighter day. Get confident in your ability to rise above those who aren't willing to ask the hard questions, and your staff will feel and follow that confidence.

When do you predict the economy will turnaround?

Continuing on the points above, I am working with companies that are both forward-thinking and courageous to change around their economy rather than waiting for the rest of the water to float all the other boats.
Look at how much time people are spending today keeping up with their own personal technology. Those who value their time/sanity/priorities will get help – not by wasting time going down to GeekSquad but with progressive personalized service like www.BluePhone.com which I helped launch for my client last year. This service is going to eclipse their first line of business, just watch.
I wrote yesterday in my blog [60-Second-Marketing] about a deal automaker Hyundai just came out with: return your car within 12 months if you lose your job. They're putting the ear to the ground, listening to the market conditions, and being more creative about serving the customer than any of our Big Three.
NPR just featured a toy company that had 100 SKU's (product offerings) at the $3.99 level. Their sales are up 60% over last year because, in this challenged economy, most everyone can still afford a few bucks for some fun!
Oh, your question was "when". My current perspective is that everyone's economy will change when they are ready.

What do you think are the major reasons companies fail to reach their revenue goals?

The famous McDonald's restauranteur, Ray Croc, used to say "There is no competition". What he meant was that we can't blame others for our failure with customers (I would add children or spouses as well!)

Some years ago, Rockefeller Corporation did a study which asked, "Why do customers leave companies?" Their findings, in David Letterman bottom-up style:
1% - The customer dies.
3% - The customer moves away.
5% - The customer has a friend who provides the service.
9% - The customer is lost to a competitor.
14% - The customer is dissatisfied with the service.
68% - The customer believes you don't care about them.
So what is the opportunity here? Just ask:
When was the last time you "touched" your best customers with a special VIP offer?
How about your "medium" customers with an upsell or a product line extension?
And rather than kick your worst customers to the curb, how can you monetize that relationship (and recoup your investment) by finding a strategic partner for whom those customers could be bright new sources of revenue?
As P.T. Barnum said, "There's a customer born every minute"!

Your book, Leadership on Demand, advocates using interim executives for key marketing and sales leadership positions. Why is this beneficial to companies?

As my co-author and I showed through case study after case study, interim management specifically focused on revenue represents one of the quickest ways to innovate.

Innovation doesn't have to be in your product line or your technology – it can be in new thinking about how to use your CRM [customer relationship management] system. It can be in going direct where previously you've relied on the channel. It can be in looking at your product offering and customer base a new way.

For example, a few years back I helped a software company that had a product line ranging from $295 to $11,995. After spending a couple months with the salespeople and in the trenches with customers, I stratified the product line for efficiency. The low-end products could be freely test-driven on the site and upgraded to paying versions by talking to the support technicians. The high-end products could no longer be obtained via the site, but rather began with a sales conversation to qualify buyers. Prices were no longer published but quoted custom. Within 9 months, the average selling price increased ten-fold and the company got acquired by a publicly traded competitor at an extremely healthy multiple.

Management guru Peter Drucker predated the advent of interim managers but his philosophies support them wholeheartedly, especially: "Marketing and innovation are the two chief functions of business. You get paid for creating a customer, which is marketing. And you get paid for creating a new dimension of performance, which is innovation. Everything else is a cost center."

Who should hire an interim executive?

First there is the issue of who and then there is the issue of who not.

Presidents, CEO's, COO's, and even CFO's of companies should consider an interim executive if they have:
stalled or unacceptable levels of revenue
an "empty chair" in the CMO, VP Sales, or VP Business Development roles
competitors growing and/or taking market share
tectonic shifts in the market without a strategic response.
Leaders should not hire an interim executive if the organizational culture has demonstrated a propensity to worship a high-end consulting firm who will write a beautiful report to adorn your desk – because an interim is going to roll up his/her sleeves and make things happen.

Another time leaders should not hire interims is when the culture suggests there is so much defensiveness that failure is unavoidable. One COO we interviewed for our book, "Leadership on Demand", put it this way, "If you're an interim, your staff looks at you just like the child looks at the stepfather: 'You're not my daddy'. "

Seasoned interims, who have been on these battlefields before, are boldly direct with their questions – in order to sniff out organizational resistance in advance. It can save a lot of energy all around if the horse isn't ready for a jockey.

Empathizing with Your Customer

2009-02-22T00:11:00.000-08:00

While the Big-3 auto makers continue spending their (same old same old) mass media dollars telling us that we can get the same pricing as their employees (same old, same old)... "second tier" companies are making more timely appeals:

Volkswagen is speaking to American families about "having it all" -- high mileage, best safety, and green manufacturing, and clean diesel technology.

Hyundai is hitting breadwinners where their fears live... "What if I lose my job?" Their Assurance program lets customers bring their car back with no penalty they find themselves unemployed within 12 months of purchase.

Now that's creative thinking. Unclear whether we can hand it to Hyundai for the innovation, as they merely partnered with a company called WalkAway USA whose raison d'etre is such financing plans. Nonetheless, Hyundai will undoubtedly receive credit in the mind of the consumer for respecting the tenuous economy.

And that brand halo -- residing in the mind of the buying public -- will pay off for Hyundai!

60-Second Takeaway: Where are your opportunities to let your customers know you understand their situation, and demonstrate that you care?

Always Focus On the Customer

2009-02-21T21:33:00.000-08:00

On ebay this evening, I was shopping for a pair of used inline skates for my son who seems to need a new pair every year.

Frequently I find that people do listings fairly quickly, just writing the product features (in this case, size/age/condition/etc.)

But this one stood out, and really hit home about customer benefits. I don't know the seller; I just grabbed the example for readers.

I've used a blue font below to indicate the features/attributes of the skates, while the green font indicates the benefits copy -- how the skates are used, make life better, and fit into the "customer ecosystem".

Excellent condition, Great ankle and heel and arch support, Boys or Girls Ferland inline Hockey skates, size 3 inches , heel to toe is 8 1/2 inches, these are top of the line for Ferland skates, are you tired of rental skates, too big, too small, smelly skates! , These can be used inside or outside, they are for the person who dares to have fun, who knows or wants to line skate with there own special skates, these will not let you down, when you need them, they will provide hours and hours of excercise which is so important for growning young people, excercise is very important these days, when schools are cutting back on PE and physical activitives, experts have stated that american children will have heart problems before they reach high school, why? Because they do not excercise!!! If you really care about your child's future and health this may be one way to make sure they live a long and healthy life style,if you are into jumps, turns, spins, and down and dirty skating that includes backward skating then you will be happy with these! No more rentals, all eyes will be on you, be the center off attention at where ever you skate!

208 words: 17% product features; 83% customer benefits. I hope this specific example is as refreshing to you as it was me.

Do you realize that most of your competitors are focused on the features? This is yet another way you can pull ahead in today's challenged global economy.

60-Second Takeaway: How can you take market share today by siezing the power in front of you, or bringing in someone who can?

Travis Scoops Harvard Business Review

2009-01-29T23:54:00.000-08:00

Harvard Business Review must have seen my blog last week, prompting them to check with Pew Research Center and publish "The Year the Internet Overtook Newspapers" today!

In 2008, for the first time ever, more Americans relied on the Internet for national and international news than on newspapers. In December 2008, 40% of those surveyed said they get most of their news on the Internet, up from 24% in September 2007. 35% still mainly read newspapers, and 70% say television is
their primary source of news.

SOURCE: Pew Research Center

One Giant Falls as Another Giant Rises

2009-01-23T16:09:00.000-08:00

In the past week, there has been a palpable feeling that our national government is going to march to a different beat than we've seen for the past 8 years [couldn't have come soon enough, IMHO].

Just as evident over the past week has been the nail in the coffin of the news print industry. Since the dot-com bust 8 years ago, we've seen media companies "dabble" in the online business while they rearranged the deckchairs on the proverbial Titanic. Look no further than the bankruptcy, sale, or pending exit of the venerable Seattle Post-Intelligencer, the Austin American-Statesman, the San Diego Union-Tribune, the Minneapolis Star Tribune, the Rocky Mountain News, and on and on.

But here's the real kicker...

In covering the Obama inauguration, CNN.com and Facebook had almost 14 million people streaming and chatting online -- blowing away the past record of 5+ million simultaneous video streams on Election Day 2008.

So...

You've been hearing the change was coming. Online media advertising now exceeds that of television. You've been told -- we're experiencing the change as we speak. Things are different.

Now how does your present marketing mix compare with that of 2 years ago or 4 years ago?

It's a race between who changes first -- you or your competitor. Drop me a line if you need some help getting started down this path.

Remove Thorns so Customers Remember the Beauty & Aroma

2009-01-09T11:03:00.000-08:00

I've frequently used with clients the metaphor that we want their customers to remember the experience of smelling, seeing, and appreciating the rose. Any negative experience is like pricking them with thorns.

Well this topic comes to mind when an up-and-coming Skype competitor (that I was planning to promote because it is filling a need Skype has missed) made it so difficult for me to change subscription levels that I won't say anything about them moving forward.

They'll struggle, not because of me, but because poor usability in this regard -- and because their customer service took far too much time and wouldn't recognize the amount of time and trouble I spent helping them make this better.

I'm not the only customer who behaves this way. In fact a research study years ago found that customers feeling the company no longer cares about them is the leading reason for attrition. See a video I did a couple years back on this.

Political humor hits the mark

2009-01-02T23:38:00.000-08:00

Years and decades from now, the Blagojevich (Governor of Illinois) scandal will seem like a big joke...

Until then, this Chicago Furniture Company is doing a great job of finding the "lighter side" of the daily news about the Governor who outlandishly sought to sell former Illinois Senator Obama's seat to the highest bidder.

LeatherCreations, took out this quarter-page ad in the Chicago Tribune on Thursday. Even as ad sales decline in the newspaper industry, their sense of humor is noticed by customers today and will be remembered for years!

Key: unlike most events in the current, partisan, U.S. political world, there is nobody defending the selfish acts of the current (and soon former) governor.

So, keep your eyes out for opportunities. Ask: how can you be playful with your customers in a way that they are enticed into your business?

What industry did SOAP launch?

2008-11-26T11:57:00.000-08:00

My friend Craig Winters at Citizens for Health does some great work talking about natural foods/supplements and our need to push for us to keep them free from government and commercial influence.

In a recent story, he did some great bacgkround work on how the soap business launched advertising as an agent of serious social change. Since none of us were around then, it is an educational review!

"Beginning with the American Revolution, and continuing with the westward move across the continent, the American spirit was fiercely independent and self-reliant.
An especially simple example was that family soap was made and used almost exclusively at home through most of the 1800's. In a sense, soap-making was one of the simplest forms of autonomous health care.
Advertising changed this. Few people know that the soap business was one of the first industries to use large-scale advertising beginning in the late 1800's. Soap manufacturers set out to mold the American experience so that consumers needed to buy - not make their own - soap. They built an advertising strategy centered on the connection between physical health and spiritual wellness, with an embedded message that only industrially-produced pure soap could provide that connection.
For instance, one early advertisement featured cherubs bathing with a large bar of soap. Another included a testimonial from the Rev. Henry Ward Beecher in 1870: "If cleanliness is next to Godliness, then surely soap is a means of grace." [Lears, Jackson, Fables of Abundance: A Cultural History of Advertising in America, Pantheon Books, 1981]
The rest is history. Now, we're not suggesting that we return to the days of making our own soap as a way of escaping the advertising matrix. Yet, this story shows how advertising deeply penetrated one of the simplest forms of personal health care and transformed it forever. It also reveals that the fundamental goal of advertisers is not just to sell a product. It's to create a need, to establish that commerce holds the expertise to meet that need, and to maintain consumer dependence on that expertise.
This is Advertising 101. In fact, next time you're watching t.v. or flipping through a magazine, keep an eye out for health care ads - drugs ads especially. The basic method hasn't changed much. Instead of cherubs washing, you're apt to see people waltzing through pristine fields. It's just another way of connecting physical health to inner wellbeing."

So your quick takeaway for today is:

You know your product or service brings value to the marketplace, or else you wouldn't be doing it. But what does your branding, and the way you do business, connect your customer with?

Make it Easy for Customers to Come Back!

2008-10-25T19:42:00.000-07:00

One of my favorite sayings feels as "basic" and self-evident as the observation that there are 3 sides of a box! Yet I know it opened my eyes and does the same for many clients.

It proposes that there are only 3 ways to increase revenues:

Increase the number of customers
Increase the frequency with which they spend their money
Increase the amount they spend each time

While there are many lessons to draw from this truism, my camera recently snapped two examples of increasing frequency -- namely, tell your current customer when they can come back next!

The first is advertising on the side of ice resurfacing machine at a hockey game; the second is a sign on the last hole of a miniature golf course in New Hampshire.

Quick: how can you infuse "next visit mentality" into your current customer experience?

pt

Specializing in Babymoons

2008-09-24T03:52:00.000-07:00

When your business does everything for everyone, you end up competing against massive organizations like Wal-Mart, IBM, or Microsoft...

Better to get specific and focus your offering.

Think about it: even moderately successful movies can generate 8-figure annual revenues, and they don't say "Comedy/Drama/Action/Horror/Documentary for all ages to enjoy!"

So how does a boutique travel agency go up against Expedia? Get very specific so certain well-defined segments of the broader customer base find you more easily.

Case study: My friend Neal Kellner sent me a newsletter over the weekend in which the 8th or 10th bullet point (don't ask me how I happened to still be reading by that time) was:

PREGNANT? Or do you know someone who is? At 18-24 weeks Mom’s-to-be are feeling good… it is time to rekindle the intimacy in the relationship with a romantic BABYMOON VACATION! A life-enhancing memorable gift from Parents and/or Grandparents! LEARN MORE at:
http://www.cmtravel4fun .com/content/view/96/1/

Wow -- now that term clicked for me, having supported my wife through the experience. I asked Neal if this wasn't the cornerstone of a whole new business offering. He said it wasn't his idea to which I responded, "there are virtually no new ideas!" It's about what you choose to champion.

Focusing on a specific problem experienced by a defined customer gives you the rito claim high authority in the space -- mindshare comes with each new constituent you touch.

Does he need to drop the rest of his clientele? No. Babymoons become thier own "storefront", perhaps even the "centerpiece.
Get to know moms-to-be, age 20-40, and learn what their hot buttons are (their explicit wants and their hidden fears). It needn't be an expensive one-way mirror focus group.
While Babymoon.com and BabymoonVacation.com are taken, the hyphenated version is not. Nothing appears to be trademarked at USPTO.gov but there is prior art so this probably qualifies as being in the public domain.
Communicate your key messaging points. Mirror the story of the mom-to-be and how life and travel become more challenging later on. Give a timeline of when to plan, and when to take, the babymoon vaca (even show follow-up like "submit digital photos for a custom printed book").
Come up with half a dozen press releases on a monthly calendar, and look for "champions" who already have high readership/listening audience -- Oprah comes to mind.
Start letting every maternity shop in the country know about it (margins are thin in travel so send a thank-you card if it's impossible to offer a finder's fee).

In the back of your mind, start thinking: what's the next category of "special times" travel?

And for the majority of you not in travel: what is a specific problem experienced by a well-defined segment of your customer base?

Understand Thy Customer

2008-08-14T19:55:00.000-07:00

One of the reasons I love this saying from great American entrepreneur Henry Ford,

If I'd have asked them what they wanted, they'd have said a faster horse.

is that great companies have the vision to understand how great products will provide true benefit to their customer.

So as I was staying up late tonight to watch the Beijing Olympics, I happened to catch 2 advertisements from DirecTV regarding NFL Sunday Ticket that showed me they are tuned in to their heavy-usage customer:

An edited replay service so that a viewer can watch an entire football game (usually 3 hours) in just 30 minutes
The ability to watch 8 games on the screen simultaneously

Now these offerings were impressive. Not just providing convenience (time savings) but also capability one wouldn't normally be able to jury-rig on their own!

If I had football in my blood (rather than ice hockey, having grown up in North Dakota) I'd certainly see these as premiums worth convincing the wife we needed in the household...

Management's Antidote to Turbulent Times

2008-03-11T00:14:00.000-07:00

Two associates and I had multiple conversations last year about the many successes (and some failures) that we had both experienced and heard about in our various interim assignments.

Yet we regularly met with skepticsm from CEO's, COO's, and VP's of marketing and sales.

"What? Trust our lifeblood to someone who isn't committed to being with us for ten years, is blatant enough to say he/she is planning to leave, and could very well take our customer list?!"

Never mind that some of these companies engage part- or full-time interim CIO's and CFO's, which preside over what is now equally critical information (off-balance-sheet items, operating ratios, web analytics, business process trade secrets).

And never mind that Business Week [November 29, 2007] cites the average tenure of a CMO at 26 months and 44 months for a CEO.

So we teamed up for some reseach on the subject, involving numerous interviews and synthesis. The book was published last month: "Leadership On Demand: How Smart CEO's Tap Interim Management to Drive Revenue".

Ironically, venture capitalists, private equity, and bankers generally appreciate the value proposition with a variable-cost model. As with a personal massage, just the right amount of pressure in just the right place -- revenue generation -- can make all the difference in the world to a business.

Again, just as in our personal lives, they say "money isn't everything, but it sure does give us more options!"

It can make the difference whether management:

launches a new business initiative or not,
acquires another company or not,
sees the company bought by another at the same valuation or not, and in some cases,
has the doors locked by the IRS or not.

These are ideas "around the book". For the ideas in the book, see the Media Release.

We're told this is "just the right read" for an airplane ride. Whether or not you are one, how many executives do you know who have hours and hours of extra time?

If you're considering buying, take a look at http://www.leadship-on-demand.com/.

Thanks, and enjoy! Your feedback is invited.

WDITOT?

2008-02-02T04:01:00.000-08:00

"Why Didn’t I Think Of That?" A common remark in an entrepreneurial society. But that doesn't guarantee (not anywhere close) financial success.

Take an idea like this -- we'll track it.

With the abundance of cellphones and smartphones in the market having built-in cameras, wouldn't it be great to be able to send a printed picture?

Wish You Were Here is just such a service, as scooped by MyTreo.net. Take that photo of the car you’ve always wanted -- or anything else you want to visually share -- and send via email or text-message. The service prints the photo and your message to any U.S. address. It costs $1.99 per postcard, charged directly to your cellular phone bill (billing arrangements in place with most major US carriers).

As I’ve said, however, ideas are cheap -- execution is everything.

There are myriad great ideas that have never fulfilled their vision. Causes are mostly due to management (speaking from years of experience in consulting as well as my own personal entrepreneurial failures!).

The management team falls apart because of squabbles

The company can’t get funded (or founders won’t accept the market’s opinion of the valuation)

Management doesn’t execute a marketing plan that sufficiently gets the word out

Management blows the money on a Super Bowl advertisement (Hail Mary pass), or conversely,

Management endeavors to do so many things that no one thing takes hold

How are you executing today?

Marketing Greases Selling

2008-01-12T14:43:00.000-08:00

Actually, the reminder note to myself was "eases" -- but I now see that it's about more! As a corollary to Travis' Law (originally published Jan 2007) let's formally spell it out as:

"The selling process gets easier and faster, the more and better you do marketing".

Why would, and how could, this be?

Better targeting of features to need by customer segment
Positioning for uniqueness across the competitive reference frame
Alignment of price to value perceptions
Consistent messaging that resonates with the customer constituency

So the sales ("solutions") person can simply ask if the product or service feels right. Oh sure, it's a more involved conversation -- with satisfaction of objections, customization, modification, etc.

But we're talking about a WORLD of difference from many sales organizations that just "wing it" and burn a lot through a LOT of salespeople.

How can your investment in marketing grease your sales process and results?

Call It "Greener Pastures"

2007-12-08T18:28:00.000-08:00

The dynamic my colleague Michael Pearce pointed out this past week is much like "Greener Pastures". You know, where people with straight hair wish they had curls. And people who have eyeglasses wish they could get contacts so as to not have glasses.

What's the dynamic, you ask?

In the business world today, it seems everyone in the service business is desperately striving to productize their offerings. And everyone with a product is working toward a service model.

Are consultants instigating this, and thus to blame? I doubt it.

More likely is that we're simply in a time of massive change and transition, and all "aware" businesspersons are questioning everything.

That which is left alone may be getting skunked by the competition at this very moment! Make certain that each of your revenue streams are not only profitable, but contributing in other ways. And if you are running loss leaders on a consistent basis, experiment with phasing them out and driving a different mix.

Where can you "fix things" before they get broken by someone who cares less than you?

"e" Customer Communication

2007-11-16T16:28:00.000-08:00

Recently I participated in a fascinating online business dialogue which yielded some insights of how much "variance" there can be in the understanding of something seemingly concrete like a law.

There was enough "juicy material" that I had to share it, because this is something that I believe many people think about, wonder about, and inevitably let them stop them!

The question is: I am (or my company is) doing something wonderful. Can I email people about it, given the CAN-SPAM law?
In the same way that my articles on home business always include the standard disclaimer, "I am not an accountant. Always consult appropriate counsel before making business decisions" I advise in this case: "Consult appropriate counsel if you feel uncertain about the ramifications of this article".

The first answer to this question is the legal one:

Yes -- as long as you are not misleading about who you are or the subject of the email, clearly identify the message as advertising, and provide a method for opting-out.

The second answer is the social/cultural one:

Yes -- and the devil is in the details.

For example, if you buy a DVD with 100 million email addresses on it for $99 from an "onine marketing" company, you are pretty clearly getting people who did not "opt in". However, I have worked on initiatives for clients to "rent list" from a magazine (or other organization that provides access to its subscriber list) where recipients were very willing to hear about our offer.

The main costs or liabilities are:

flame mail, where upset recipients reply that their explicit permission was not obtained

blacklisting, where internet service providers automatically or with manual human input determine that your IP (internet address) is sending what is perceived as spam

In both cases, I and many clients have been "wrongly" accused. Some day, maybe technology will provide a clearing house to help us remember what we've subscribed to and what we haven't (note to self -- entrepreneurial opportunity).

So if almost "anything goes" with CAN-SPAM, why is it that people think spammers are lawbreakers when most are not? This is an "affirmative" law, which does not specifically "prohibit" specific activities. Rather, it provides guidelines for "how to stay compliant".

I hope this helps clarify your communications tactics, so you get out of any "analysis paralysis"!

The Toll of Information Overload on People and Society

2007-09-30T06:14:00.002-07:00

Some interesting work just came across my desk while researching the topic of information overload for a client project.

I think this is good context to consider in the challenge of communicating or offering any product or service (new or old).

In his paper submitted to the journal, "The Information Society", Belgian Research Professor Francis Heylighen says:

"Individuals are forced to consider more information and opportunities than they can effectively process. This information overload is made worse by 'data smog', the proliferation of low quality information because of easy publication. It leads to anxiety, stress, alienation, and potentially dangerous errors of judgment. Moreover, it holds back overall economic productivity."

This relates to my branding work at the Harvard Business School Executive Program, where I studied with professors of anthropology for the first time [ok, so I'd never seen any practical application before!]

Since brands live in the mind of the human being, whose neural networks are sophisticated and mostly unconscious, we must make a connection with their existing frame of reference, i.e. "pluck chords they hear and feel".

Synthesizing these ideas, the challenge for you today is...

Can you speak to a specific class of customer in a way that it resonates crisply and strongly? If not, it is just another droplet of data smog, getting lost, causing unrest, and hindering the economy.

(If that isn't a call for powerful positioning and messaging, I don't know what is!)

Different Customers, Different Concerns

2007-08-27T01:39:00.000-07:00

Whenever I hear "The Customer is Always Right", the thought that comes to mind is... which customer?

Every company has multiple constitutencies of customer: the one who pays may or may not be the same one who uses the product. Advertisers are another constituency. Employees. Stockholders.

All care about different, but overlapping, sets of issues.

In this case, the home customer and the grocer store owner both want their watermelons to use use shelf space better!

Researchers figured out (around the turn of the millenium) how to
surround the melon with a square glass case while growing on the vine.

Thus, square watermelons...

But, as clients and associates are aware, I am known to say "Ideas are cheap; Execution is everything."

In this case, quantity projections have been difficult to hit. So these unique fruits are still more of a "specialty" item than the space-saving commodity they were intended to be. Street price: 4X more than plain "round" melons!

Question 1: what would help your [various classes of] customer love your product or service even more?

Question 2: can you deliver this improvement/enhancement profitably?

What Are Your Assets - Part II

2007-07-30T13:32:00.000-07:00

There is an old saying, "Timing is Everything". Well you may not have thought about it, but timing is an asset most businesses forget to utilize (or monetize).

For example, as you bring a new product to market, the First 50 (500, 5000) takers can get a special bonus, special price, special service, or anything else you want to offer them. Any offer or promotion can have a time component.

Time is a precious commodity, a limited resource. Many people believe that time is money.

I have learned that time is more valuable than money (proof that satisfies even my college professors: When out of money, one can make more. What can one do when we have no more time left? QED).

Job One in CPG Promotion

2007-05-27T19:45:00.001-07:00

In the consumer packaged goods business, promotion means getting your product into the hands, on the skin, or around the tastebuds of your customer. But even more important is to getting it in their home so your brand gets in their mind.

This truth was underscored today as I and my family attended Seattle's annual Folklife Festival. For those who have not been able to join in said festivities, imagine a quadrangle 10 to 20 acres in size (Seattle Center) in the shadow of the Space Needle, interspersed by indoor and outdoor musical performances (scheduled and impromptu) of every tempo and genre. Add lots of people and lots of booths to serve their thirst and hunger. Such as is pictured but this is actually not from today's fest as this blog occurred after we'd gotten home and it hadn't occurred to me to snap a photo!

But back to consumer products... Two distinctly different booths today promoting two very different kind of products with two very different budgets. Both are natural-foods, health food store, type products but scored very differently...

Burt's Bees had at least a 20x20 walled tent area with 10-12 people working. They did a little bit of retail sales at the end but most people were guided through an educational, hands-on walkthrough of their product line which includes everything from lip balm and lip stick to skin lotions to soaps and shampoos. They had at least 4 sinks set up and one large flat-screen TV station. One walked away recognizing that Burt's does good (an angle with which I'm familiar and do support). It was more "trade-showy" than most people expect with Folklife.
Tofurky on the other hand had a standard 10x10 booth with 5-7 people serving up food. If you aren't familiar with their products, you're who they were trying to reach. Their high-protein, low-fat vegetarian "meats" are great but most people don't think to try them. So they sold hot veggie sandwiches with names like "Philly Cheezsteak" and "Texas BBQ". With each purchase they included a complimentary, shelf-stable package of their Tofurky Jerky.

Here's my 60-Second-Analysis. [Full Disclosure: I used to be in the restaurant business and ran booths like this. I don't believe there is any inherent bias in my observations due to an industry preference or a hungry tummy!]

Burt's folks spent a pretty penny and created a high-quality experience but my sense of the products was broad and skin-deep. Very few people left with product in their hands to continue using.
The Tofurky people spent far less outright (booth and staffing) and recouped costs or even turned a profit with food and beverage sales. Everyone took home product to try again, which had a coupon for another purchase.

One might claim unfair comparison -- "Burt couldn't make a sandwich and show off the product" which would be off-point. What we're looking for here is how could Burt keep his brand in our mind? (As my wife and no doubt target customer remarked, "how do I know what their shampoos are like day after day?")

With a very simple, incremental cost: give away product at the end. If too expensive, then choose just the 3 products with the highest gross margin. JOB ONE: Get in the customer's home, where these products live, and their mind, where your brand lives.

Superpositioning through Product Extension

2007-04-11T06:49:00.000-07:00

At times, one has a Eureka insight -- either internally generated or driven by an advisor well versed in such matters -- that there are other places your product or service can be of value

Kudos to the Kellogg's brand manager who identified the late-night snacker as a non-breakfast target. Whether health-conscious or simply overweight, this individual is looking to replace the high fat/calorie munchie s/he is already using. The initial ads for Special K Chocolatey Delight certainly spoke to my wife! (I guess we'll see if it works on me once we have the product in our house).

Would you believe the brand now contains 15 distinct products? See
http://www2.kelloggs.com/brand/brand.aspx?brand=215.

While the newest of the Special K product extensions provides one more option to the same Female 25-39 target customer, the introduction also begins to "superposition" as a lifestyle brand for a broader audience.

It's time to ask yourself: do I have the insights and objectivity to see how my customers and non-customers could use my products and services at times and in other ways than I have envisioned?

A Modern Parable

2007-03-17T22:27:00.000-07:00

I received this today in email from a dear friend of the family who is an educator. While her intention was clearly a chuckle, I dissected this into interesting commentary on three levels: (1) what we expect from the two respective countries, (2) what we expect from the automotive industry, and (3) what we expect from management consultants.

I must say I am proud to be a partner with a firm that rolls up the proverbial shirt sleeves and achieves results rather than writing pretty reports!

Without further adieu...

A MODERN PARABLE

A Japanese company (Toyota) and an American company (General Motors) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese team won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was the Japanese team had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.

So American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised that too many people were steering the boat, while not enough people were rowing. To prevent another loss to the Japanese, the American’s rowing team’s management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents and 1 assistant superintendent steering manager. They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the “Rowing Team Quality First Program,” with meetings, dinners and free pens for the rower. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year’s racing team was outsourced to India!

THE END

Go Guerilla

2007-02-23T20:51:00.000-08:00

Recently I was asked at a mastermind meeting what qualified a technique as "guerilla marketing". I replied that it was technique that didn't involve competing against other companies in traditionally known channels, such as magazine advertisements or trade show booths.

Another participant gave an example of what he had done. He promotes personal services in the financial realm, and a good client for him is affluent. So he periodically goes into his favorite coffeehouse where he has gotten to know the baristas.

He drops a $100 bill, gets himself a drink, and sits down at a table. His arrangement with the team behind the table is that the next $90 is to buy drinks for as many customers as possible who meet his profile. Those customers will hear that their drink was compliments of the gentleman at the table "over there".

He gets about 18 conversations and (over time) averages one new client for the morning's investment. Now that is creative thinking, and outside the box of tradition!

How can you think outside the limits of tradition today?

A stream of consciousness entry

2007-01-30T18:42:00.001-08:00

I'm posting from my Treo 650 on the ferry boat headed home. No laptop. How cool is that? Think of the things our grandkids will do. Hard to imagine, actually!

I often think of the comment by my former employer, Bill Gates: People overestimate how much change will occur in 2 years, and underestimate how much change will happen in 10.

Ask yourself, in case there is any doubt of this: Would you have predicted 10 years ago that people across the country in 2007 would make their primary living on eBay?

But I digress. What prompted this stream of consciousness entry? A longtime friend and associate -- a sharp lady with an entrepreneurship MBA -- contacted me for some coaching. She has a new job in her company: product marketing.

I ask, "what's the assignment?" The company, a B2B technology provider, has had a product offering for a few years. It brings in a half mil every year but has never been thought out or taken off. Salespeople don't know what to do with it.

What to do? Call in product marketing...

This is not the first time I have seen this dynamic! One of my then-prospective clients (also in the B2B technology space) share that they had created a product 5 years prior and the salesman had landed only 11 accounts without getting anywhere close to breakeven.

Thus the conclusion today of Travis' Law of Wayward Organizations:

"When sales fails (for an extended period) call in a marketer!"

I Object!

2007-01-01T11:03:00.000-08:00

On this first day of the year, it is good to remember that we are all share the same profession.

If you make your living from customers or clients who pay for your products or services, you are in sales...
If you are a parent and want your child's room cleaned, you are in sales...
If you see things differently than your boss (and want to do anything more positive than gossip) you are in sales...
If you spend any time with non-profit organizations and want not to do all the work yourself, you are in sales...

A couple years ago, Selling Power magazine conducted a survey of about 1,000 salespeople. While not segmented by industry or other categorization, and not statistically representative, the results are helpful.

"The objection I encounter most frequently is..."

33% Need to think about it
20% Price is too high
21% Happy with current supplier
11% Don't have the budget 11%
4% Waiting for economy to pick up
6% Need to get approval
6% Considering other vendors

Here is the 60-Second Marketing lesson:

100% of the time, we haven't listened well enough to understand the current point of pain, and built a compelling case for the value of our proposed solution.

Live long and prosper [this year!]

A Product Marketer's "Grand Slam"

2006-11-30T22:08:00.000-08:00

The ultimate job that a product marketing team can perform (or your reasonable expectation of marketing consultants you bring in) is twofold:

to identify and alleviate the pain for your customer, and
to communicate this in a way which compels the sale.

In the automotive industry, some of the greatest advances over the last century were good models for solving customer pain:

Automatic transmission came from the great frustration, inconvenience, and occasional embarrassment of many drivers coordinating the clutch and accelerator controls of manual transmission.

Power windows were more than "not cranking the handle". They allowed any window to be operated (or not) by the driver -- adding control (parents making sure little ones weren't throwing things out the windows) and improving flexibility (driver rolling down passenger window to ask pedestrian for the nearest gas station).

The greatest advance we've seen in this century, recently unveiled by Lexus, looks to be a hit:

Self parking is a feature many people have thought to be science fiction. But Lexus realized they had put enough cameras on board to give the driver the kind of assistance parking requires. Watch their own demo:

http://www.lexus.com/models/LS/features/exterior/advanced_parking_guidance_system.html?demo=ls_parking&s_ocid=30019

No competitors. No price limits. Joe Average drool factor. Probable patent protection. Can you say "Grand Slam"?

You're selling to little Savannah

2006-11-10T10:25:00.000-08:00

Like it or not, the general rule for homo sapiens is they buy on emotion and justify with data.

In B2B (as with B2B and B2G) there are the decision makers and the influencers. Kids are one of these constituency in family decisions. Those of you who have contributed to the population growth problem [I'm guilty] know what I'm talking about.

Many B2C transactions are affected by little Gabriel's color preference, or big Savannah's taste buds.

The master of the lesson, as I've written about before, is McDonalds with their happy meal.

Take a look at how local airport parking company, www.airstar.com, implemented the lesson.

After parking our car, we were greeted as usual by the shuttle driver for the ride to the airport. The driver was friendly (almost all are, since tips supplement their hourly income).

But here's the twist. He reached into his "stash" and handed each of my kids a little toy-box. The kids eyes lit up. And then each proceeded to enumerate their loot.

Not 3 minutes after I'd told my wife that we could save $3 per day by parking a few other, this $1-per-kid investment bought them advocates inside our family for the next vacation. Cheaper than any ad campaign!

So how can YOUR business benefit from their decades of "research"?

Horizontal Segmentation >>> Political Re-Diversification

2006-10-20T22:25:00.000-07:00

Any loyal reader has got to be asking him/herself, "What kind of buzzword generator has Travis used this time?!"

Hear me out -- there is method to the madness. First off, let me praise Malcolm Gladwell (author of "The Tipping Point" and "Blink") for being an inspiration to marketeers like me. Secondly, I could summarize horizontal segmentation but think you'd enjoy it much more if you heard Malcolm explain what Howard Moskowitz came up with. Long story, check it out:

http://www.ted.com/tedtalks/tedtalksplayer.cfm?key=m_gladwell

So what does this have to do with "Political Re-Diversification"? Ahhh....

Living in the beautiful Pacific Northwest, I often see the leftover havoc of forest clear-cutting. But rather than pick on paper-and-pulp companies, let's acknowledge that even after a natural forest fire, a forest will naturally re-diversify. First small shrubs and alders will sprout, then other tree seedlings will find their way, and eventually after decades and decades, the forest will come back to life. Not just hemlock and not just pine.

Well it has long bothered me that our political system has gotten so systematized around the two-party system (blue and red states) when clearly both people are wanting more from their candidates than a person can possibly "pack into a platform"!

I know, Green party candidates and Libertarian party candidates (even Independent Presidential candidate Anderson back in the 80's) keep nudging their way in. And I fully support them.

According to Howard Moskowitz' horizontal segmentation principle, people want more than just "spicy" or "watery"! And I have hope that eventually the system will open up, just as I have hope that we will someday insist on realizing the "one person one vote" ideal of our forefathers.

I was born in a time when the main choice was whether whether to be a "Ford, GM, or Dodge man". Just as my granddaughters and grandsons will be able to choose among 10+ brands of transportation, I hope they are able to choose between a dozen politicians to best represent their voice.

What Are Your Assets?

2006-09-30T23:39:00.000-07:00

It is easy to ask -- and answer -- the question, "What are your assets?" when you manage a $20 million or a $2 billion business.

But what about when you are a governmental organization that doesn't think much about "revenues"?

Well I've come to appreciate the old adage, "There are always more resources available to you than you can see." (One of the values of having a marketing consultant on your side, to see your blind spots, in whatever space you play!)

In this case, Washington State Parks identified two key assets.

A unique "inside" relationship with the state licensing body for a "Parks" vehicle plate
A "concealed" asset wrapped up in the execution of the release of the new plate, in that it could designate a "limited edition" of the first 25 off the line.

So now this "product" becomes a perpetual fundraiser for the group charged with monitoring so much important land in Washington State. In addition to selling thousands of such license plates, it build the bond of perhaps the WSP strongest customer base.

_____________

From: Top Bids (PARKS) [mailto:plate.auction@parks.wa.gov]
Sent: Friday, June 16, 2006 2:03 PM
To: undisclosed-recipients:
Subject: Washington State Parks Special License Plate

SHOW YOUR SUPPORT FOR THE GREAT OUTDOORS
Buy a Washington State Parks license plate! The new Washington State Parks license plate symbolizes the natural beauty of 120 state parks all over Washington. The plate goes on sale Aug. 21, 2006, at Department of Licensing vendors statewide.

Proceeds from sales of the license plate support the care and maintenance of your Washington state parks. Right now, you can bid to own the rights to plate numbers 1 through 25. An auction for these numbers runs through June 28.

To see the plate and get more information, visit www.parks.wa.gov/licenseplates.
Buy a special license plate, and support your Washington state parks.

This is a solicitation by the Washington State Parks and Recreation Commission 7150 Cleanwater Drive, SW P.O Box 42650 Olympia, WA 98504-2650 file://www.parks.wa.gov/

Compete Against Yourself

2006-08-02T13:40:00.000-07:00

One of the concerns with retail products (all products, actually!) is someone coming along and making a better one. Sometimes the best thing to do is create that impression by competing against yourself.

I absolutely love this side-by-side competitive comparison of glues found in a California Al's Auto Supply!

Same .07 oz volume, but virtually everything else different: the color scheme, the goofy blue character versus sophisicated color scheme, the brand name, the cutout, and the kind of vehicle suggested (classic vs modern).

Most importantly -- the price! A 30% premium for the Ultra Bond.

Why wait for someone else to come along and take your "premium" business? Launch one yourself -- with an "advanced formula", "no clogging", and a healthy margin!

Quantify, Quantify, Quantify

2006-06-26T21:11:00.000-07:00

Do you have a favorite retail quote?

I do. And it's not one that I think the industry should be proud of...

Save up to 40 percent, or more!

What are we, the consumers, to think -- 1% or 99%? Human beings can only consider offers and value propositions within a meaningful frame of reference.

Consider this example -- a customer feedback card from Silver City Restaurant & Brewery in Silverdale, Washington, made to look like the classified ads.

$375k per year sounds a lot more impactful than $15 for five minutes. Misrepresentative? No, I see creativity in catching attention and "portraying value".

There is always a way to quantify the true value. Sometimes we have to work hard to figure it out. Often, going through the exercise helps us understand how to communicate to the prospective consumer.

So... how can you quantify your value proposition for your prospective clients and customers?

How Does a Stuntman Help Others?

2006-05-18T21:45:00.000-07:00

Zig Ziglar said, "the way to achieve success is to help others get what they want".

So how does that translate into 60 Second Marketing? It prompts us to objectively inventory our skills and identify corresponding needs in the marketplace.

Here is an awesome example. Mike Dochterman had a skill that people "ooh"ed and "ahhh"ed over. Most people would love the response and what it does for the ego.

You see, Mike is a stuntman. He is good at things that most people never want to try, such as setting himself on fire and jumping three stories into less than 3 feet of water. I'd venture to say he has a résumé that's altogether different than you and I...

· World record holder highest fire dive into shallow water.
· Stunts in the movies, Back Draft & many more.
· U.S. dive team.
· Acapulco cliff diving champion.
· Stunt double for Don Johnson in Miami Vice.
· Tireless fundraiser for cancer research.

So Mike and his marketing director created a win/win/win. He wants to support cancer research after having lost his wife to it; he wants to practice his craft; and he helps car dealerships which are always looking for a new way to draw in prospective customers.

Here's what the "Event in a Box" looks like: $7950 gets you a stuntman, pool, ladder lift, and airfare. Their marketing materials help clients see this is a reasonable advertising expense, comparing it with a 10,000-count mailer. The dealership must agree to donate a portion of proceeds from the weekend's sales to cancer research -- which they oblige, building goodwill in their community.

What are Mike's results? Last year, he booked 32 different shows from one coast of the country to the other. This year is equally full. Strategy realized!

How can you help others get what they want?

The Creative Community Car Wash

2006-04-02T00:42:00.000-08:00

One of the principles I work with in business is that of front-end and back-end revenue with customers. For example, in the software world, the rule has been that the front-end revenue is the initial software sale (or, more properly, "license"). The back-end revenue is the annual maintenance fee (commonly software upgrades and technical support).

So what does this have to do with the community car wash? Well as with many other dynamics of society, car washes are changing with the times. These fundraisers are vital to non-profit groups. And it turns out that the good ones have learned this front-end/back-end revenue concept and can show you a trick or two -- not just for your non-profit but your business as well.

The recipe has been fine-tuned; you may have noticed. The first level was "By Donation Only" because someone figured out that donations would average more than a posted price.

The second method is more creative, essentially a variation on the walk-a-thon/jog-a-thon. Here's how it works: Community members go out beforehand and sign up pledges for cars washed (e.g. ten cents per car). The car wash is truly free, but of course donations are accepted [front end]. The goal is to get a LOT of cars in, because that way the bucks roll in with the pledges [back end].

Here is an example from the Boy Scouts of Northern Californa:
63 Boys
X 51 Pledges =
3,213 Total Pledges
X .04 Per Car *
$ 128.52 For Every Car Washed
X 262 Cars Washed
$33,672.24

Pretty attractive pocket change, eh? What can you learn about pricing strategy from the local soccer team on the main corner this weekend? Probably more than you give credit for!

Just what the customer wants

2006-02-26T21:46:00.000-08:00

As human beings, we know what we like and we like what we know. A friend once told me that, he "was entitled to his opinion, and I was entitled to his opinion too!"

But as businesspeople, we must put aside what we like. Instead, consciously and actively listen to what our customers say they like. Then we figure out the right packaging, the right price, the right place -- you get the picture.

What comes to mind is a product I picked up called the "Muffin Top". Brilliant! That's where all the flavor and goodies are anyway, right? Most people eat the bottom of the muffin as part of their duty after buying the top. And since this is a premium product, they can charge a premium as well. Now I've done a fair bit of work in the food business so I know that this probably shot the health nutrition label out the door, but the principle here still holds.

Similarly, a few bright entrepreneurs have identified logos, choice, and turnaround as what the customer wants. So now, in addition to the millions of graphic designers out there developing beautiful images, there are services popping up on the Internet which provide just what the customer wants -- and for a bargain basement price. See www.logodesignpros.com and www.selectlogo.com.

With both of these 60-Second-Marketing examples, the conclusion is yours to draw: how can you work toward identifying what your customer really wants -- and give them that?

Taking a Page Out of the Happy Meal Play Book

2005-12-19T14:17:00.000-08:00

Though my kids are six and nine, we don't spend much time clothes shopping. (My wife was quick to occupy that turf long ago). So this past weekend I was floored to see that clothing companies have learned exactly what McDonald's pioneered a long time ago:

kids will push for your brand if you give them a free toy!

This is happening with Skechers, Levis, and many lower-tier lines. In fact, with ever-plummeting electronics prices, they can actually include a pair of walkie talkies when buying a shirt!

This is good old fashioned "promotion". In the big picture, of course, the chances are pretty slim that you are in the children's apparel business. But the principle here opens up two interesting questions:

Where can you sell a low-cost version of your product or service to another manufacturer that would make their product even more appealing? Alternatively, look at what drives purchases of your product. What low-cost (or even free) deal can you cut with a complementary supplier that would make your product sell faster?

Take Your Services To Your Customer

2005-12-03T11:01:00.000-08:00

Shortly before I gave a guest lecture at the University of Washington last month, the prof told me, "[the students] seem to be inhibited about talking to their prospective customers to find out what they want". I said that I've seen lots of businesses over the years with that same problem!

Some segments of customers place a higher priority on price than color. Some need reliability and will pay a premium price. One thing common to almost everyone in almost every segment and every industry is convenience. Life just seems to keep getting busier, so we need more convenience when we eat. When we shop. When paying bills. And on and on.

A couple years ago, I counseled a good friend on his struggling massage therapy business to buy a "Brown" UPS Van and go to where the clients are. The top of many of those vehicles is translucent so there's lots of light -- he could have some plants, music, beverages, and do a killer "scheduled" business.

Just look at the precedent: it worked for the Library Bookmobile and the local Blood Banks. You could even say that Pizza Delivery falls into this category.

So I was not at all surprised to find another personal service heading down this path. Bay-Area-based www.OnsiteHaircuts.com brings the stylist to you! (And 97 friends). You see, they target major employers. The Google headquarters on Thursdays; eBay on Fridays.

You can walk up and wait, or schedule timeslots online. And that gives them a 1:1 online relationship most hair salons have yet to cultivate. Imagine that compelling monthly email... "it's time for your haircut and we'll be waiting in your parking lot"! Can you say "end run" around the places struggling to pay rent anymore?

Now, bring this principle back to your business: how can you take your services to your customer?

A Marketing Opportunity -- Pocket Internet

2005-11-15T13:25:00.000-08:00

There are times when we all come across a product we think is better than sliced bread. Even more interesting is when the manufacturer hasn't communicated the possibility and the benefits to the marketplace!

I'm having this experience with the "Pocket Internet" capability of the Treo 650. (The color screen is small but imminently readable, and the keyboard is more usable than you might expect. For heavy data input, I just enter it on my PC and "hotsync".)

Just as many people dismissed my joy with a car-mounted cell phone in 1990, many people dismiss the need for Internet access on the go. "I'll just wait until I get back to my desk", they say. But this is exactly where Palm has missed their window of opportunity...

Here are some of the numerous examples from my life, to give you insights into the convenience provided. If my firm can get through to Palm to help them do a better job making this product is relevant to modern westerners, these are some of my stories that we might describe:

Visiting a big unknown city and easily getting to my next destination with step-by-step directions from my current location (Mapquest.com)
Easily looking up the phone number for any business without incurring Directory Assistance charges (Whitepages.com)
Being "out and about" yet able to check hours of operation for a haircut for my son (GreatClips.com)
Finding out that my wife's flight arrival will be 30 minutes late, and diverting to spend that time doing things my kids enjoy instead of waiting at the airport (handy Palm software called FlightStatus)
Seeing a rare antique car (BWM Isetta) in a parking lot and being able to quickly learn and share with my kids the years it was made and where it was manufactured (Google.com et al)
Walking down the street and being able to read restaurant reviews while my wife checks out the menus (Zagat.com et al)
Finding out the true meaning of "chimera" (Greek legend) to win a $10 bet! (Wikipedia.org)

Just to be clear, I am not trying to convince anyone that using a handheld screen is easier than a desktop monitor. I am saying that I've had very good success getting short nuggets of information that address timely questions! I firmly believe that this anywhere-ability to access terabytes of information via search engine and other means is going to change our lives in exciting ways.

So: what product or service are you so "close to", that you have overlooked learning and telling your customers' stories, compelling more of them to buy?

Get Out of the Commodity Business

2005-10-26T22:51:00.000-07:00

I've never liked being in the commodity business, because someone can always come along and unseat you on best price. The places I love to play are in differentiating from others by defining a new category.

E.g., when in the late 90's I was heading up product management for a product competing in the "log file analysis" business (to understand where visitors were going within a web site) we repositioned ourselves as providers in the "e-business intelligence" category.

What about when you cannot define a new category, such as wine in a bottle? How do you get your product to stand out from the crowd?

You cultivate an appreciative customer by engaging them in a compelling story of the background of the land the grapes are grown on, the quality control processes, the craftsmanship, the physical path it takes to market, the farmers themselves, awards that have been won, and anything else that creates appreciation (and therefore willingness to pay more than "Two Buck Chuck" -- a fascinating example in itself of urban legend story that swirled success for Trader Joe's!).

What if the bottle of wine came with its own sommelier? That is the idea behind a print technology that Italian company, Modulgraf, is set to roll out next month at Milan’s wine fair. The innovation is a system for embedding micro-chips into paper labels that transmit information via RFID (radio frequency identification) to handheld devices. Through your PalmPilot or perhaps a grocery store's loaner Walkman ("Wineman"? :) buyers will be able to listen to information about the vino and perhaps even some Italian mood-setting music.

Can you differentiate your products or services by defining a new category? If not, how can you differentiate within your category? "Facts tell and stories sell".

Typo Awards

2005-10-10T20:53:00.000-07:00

Thanks to all who participated (everyone won something!) Certificates and packages will be mailed out shortly.

John Castle: "Creating Your Own Destiny” (softback) by Patrick Snow ($14.95 value)
Kathy Cocus: 1 Pair Sterling Silver Earrings (choice of colors) from Thimbleberry Design ($14.00 value)

Larry Fiber: 1 Bottle of XanGo - natural anti-inflammatory and antioxidant beverage ($39.95 value)

Avijeet Ghose: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)

Andy Held: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)

Phil Herres: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)

Cynthia Herrick: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)

Roger Larsen: Bronze Pass to the Oct 20-23 Seattle Real Estate Investor's Super Conference ($69.95 value)

George Lightbody: Free one-year subscription to KidMail.net ($29.95 value)

Doug Nathan: Gift certificate for Shima Sushi on Bainbridge Island, WA ($50.00 value)
Dennis Noland: “Creating Your Own Destiny” (softback) by Patrick Snow ($14.95 value)

Rick Van Ness: “Creating Your Own Destiny” (softback) by Patrick Snow ($14.95 value)

Next time back to our normal content!

-- Paul

PS. Though I'm a grammar and spelling nut, I am leaving the typos in for future readers to get a taste of how subtle they can be.

Differentiate or (Dwindle/Decay/Die)

2005-10-02T18:46:00.000-07:00

Whether you are a business executive, a career coach, a parent, or a marketing consultant like myself, there are people around you that you'd like to lead down your path, right?

With the personal information overload that our society faces today, you must either differentiate your message or face blending into the "noise stream" that surrounds us every day.

A brilliant product that plays on this dynamic is "Babble" from Herman Miller, the office furniture people. This patented desktop digital device provides simultaneous playback of different recordings of your voice, effectively rendering your phone call "confusingly confidential" to people sitting as close as the next cubicle!

Your mission, should you choose to accept it, is to create a different conversation than people are hearing elsewhere. I learned this in the 90's by doing restaurant coupons which doubled in value if the person identified the typographical error somewhere in the fine print. Customers had fun and the campaign was extremely effective at bringing in non-coupon customers based on positive word-of-mouth.

Have a taste of this kind of incentive, right now! I've lined up some wonderful gifts (each worth between $14.00 and $69.00) as incentives for you to simply read through my initial cache of writings. If/when you catch a typo, report it using the email link in the right column and qualify for a drawing of the items below:

1 Pair Sterling Silver Earrings (choice of colors) from Thimbleberry Design

Bronze Pass to the Seattle Real Estate Investor's Super Conference (Oct. 20-23)

Free one-year subscription to KidMail.net
1 Bottle of XanGo - natural anti-inflammatory and antioxidant beverage
Gift certificate for Shima Sushi on Bainbridge Island, WA

“Creating Your Own Destiny” (softback) by Patrick Snow

The Fine Print: (1) One typo per person. (2) Don't worry, I won't award a Seattle-area restaurant gift certificate to a New Yorker. (3) Oh, and of course, "supplies are limited".

New Wheels For A Day

2005-09-10T21:44:00.000-07:00

Building on the idea in the last post (reduction of customer's perceived barriers) here's an example of an old dog learning new tricks.

If you didn't shop for a new car in the past few years, you may have missed General Motors' program called the "24 Hour Test Drive". True to its name, this multi-year campaign allowed prospective buyers to free themselves of the salesperson watching their every move and take the vehicle home to see it in there driveway. Just as important, of course, was that the prospective buyer's family and neighbors see the set of new wheels, engage them in conversation, etc.

The national industry average for dealers selling a vehicle to people walking into showrooms is 19%. So what kind of results would you expect from this program?

One hint is that GM extended the program, twice. The second time it was extended, the company reported that 700,000 of the 24-hour test drives had been taken, resulting in more than 240,000 sales -- or 34%. And according to the AIADA (American International Automobile Dealers Association) one dealer in New York drew 150 of the "test drivers" and closed 75 to 80 percent!

In fact, upon the second extension, GM had such confidence that it upped the ante -- offering $250 to test drivers if they bought a competitor's car afterward.

Sure, there are pieces of this analysis that can be quibbled about -- for example, how many leads and sales were driven by the publicity of the program itself.

In my book, however, the bottom line remains: these results indicate that every business can help its prospects to become customers by reducing perceived barriers.

Reducing Perceived Barriers to Buying

2005-08-13T18:18:00.000-07:00

Your prospective customers perceive barriers in doing business with you. (That's why more of them aren't flocking to your door.) But to the degree that you reduce the risk of making the wrong decision -- choosing you -- the easier it is for them to give you a try!

Today's example: Upon purchasing a computer accessory recently, I found an insert for Stuffbak. Their value proposition is simple: put our sticker on your camera/phone/etc. and register with us [for free]. Some day, when you lose the device and we recover it, you pay us a nominal fee [$20] to rejoin you with your lost toy.

They've tapped into a point of pain (more than the loss of equipment, now we are very likely to lose personal data, documents, photos, what have you) and provided a pay-you-later insurance policy!

In retail and foodservice, this is called the "free trial". I recall lots of miniature pink taster spoons from Baskin Robbins' (Ice Cream) as a child. Businesses using this technique successfully today range from CostCo to Starbucks.

One consultant offers free weekly teleconferences, as a way of lowering customer barriers to using his services. This lets them "try on the hat" of being his client and hearing how he works, before they ever have to commit to being one. Myself, I do something similar through this column!

How might you help your customers (and your business) by deferring cost, eliminating or reducing risk, and making it easier to climb a board?

Treat Your Captive Customer Well

2005-08-01T01:18:00.000-07:00

It has long irritated me that my cellular carrier [currently Cingular, but this has changed over the years] offers minutes in packages, but the fine print makes it clear that any extra minutes are charged at premium rates.

Where is the sense in that for me as a customer? Where, in my customer experience, is there any precedent for buying an incremental amoung more product and paying more per unit than I paid for the last ones?

I call that screwing the captive customer. This is probably not the reason for such high levels of "customer churn" each month on the part of the carriers, but it probably contributes to it.

Then along comes Sprint, whose marketing people recognized that they had an opportunity to "do the right thing". It may not be perfect, but when I hear that minutes above my plan rate cost less than those I just purchased, I feel like they are treating me right.

The lesson here is simple. Imagine your customer is your mother (or your darling Aunt Barbara) and look at it from her perspective. Ensure that your pricing and other business practices reward (or at the very least, do not penalize) her for making the choice to do more business with your company!

Ensure They Remember the Rose, Not The Thorns

2005-07-10T17:34:00.000-07:00

Has this ever happened to you? If not, just imagine: You're in the grocery store and buying some pasta from the bulk foods section. You wrap up the bag, wait in line for the checker, and discover you forgot to write down the four-digit product code. So you ask everyone else to wait a minute while you make the trip back to the bulk foods section to get the number for the scanner, then walk all the way back to the cash register -- all the while asking yourself how come the store couldn't have a bulk food product list for each checker.

Well, multiply that frustration by 10 and you'll know my experience this weekend in Wenatchee National Forest. You see, a few years ago the US Forest Service began charging for use as a way of increasing their shrinking revenue.

Unfortunately, they have ignored customer convenience in the equation. I spent an HOUR driving back from the beautiful trailhead parking lot over mostly unpaved, extremely bumpy roads to the ranger station just to obtain the lousy $5 permit. The USFS did equip, amazingly enough, their ranger with the appropriate supplies to ticket anyone not displaying the pass.

How can you use this lesson in your business? Make it easy to do business with you. See the entire customer experience through their eyes. Identify and address the thorns they encounter, so they instead remember the rose. Otherwise, that's what shapes your brand and reputation.

You might even ask, in person or through a survey: what could we do to improve our service? (Only do this if you're brave, because you will get an earful -- and will then have to evaluate those suggestions and implement the feasible ones!)

Don't Fear The Competition

2005-06-16T23:10:00.000-07:00

Most businesses shudder to hear their customers mention a competitor's name. From a marketing perspective, it is good to keep tabs on them and see whether "the bar" is being set by us or them!

Lately I've come upon a couple of choice examples of companies that go against the grain of fearing the competition. That is, they boldly acknowledge to their customers who the competitors are, so it is clear that they know consumers have choices.

www.SurveyMonkey.com is a web-based survey system that challenges customers to compare, and even gives them a comprehensive list of businesses to check out (34 in all!)

www.Progressive.com is an automobile insurance company that has been "bending the rules" for some time now. You may have seen their TV advertisements to this effect; this snapshot is from a moving marquis on their home page.

In this case, they demonstrate competitive pricing -- but not all ways! What becomes clear is that customers are not always seeking the bargain basement. They just want to know that they are being treated fairly (more to the point, that they aren't being gouged).

I find it refreshing, and believe these companies of very different size have created differentiation in the customers' eyes with their approach. Now while this may not be the silver bullet for every business, is there anything your organization can learn from inviting the competition into the conversation?

In Bad Taste...

2005-06-02T08:42:00.000-07:00

Some of the most fascinating work I've done in branding was taught by anthropological professors at Harvard Business School. The process they describe involved mind mapping -- not unique to branding or anthopology -- but a visual representation of how ideas and "things" are related in our conscious and often unconscious minds.

I share this prelude to explain my disdain for the vehicle pictured, a few years ago in New Hampshire.

I recall that I yielded the write of way -- instinctively, even though he didn't have the lights flashing or anything -- when I first encountered the former ambulance in a parking lot.

When I did a double-take a few seconds later, I found myself more than just a bit irritated. It goes back to our mind maps. Obviously, I have "matters of life and death" associated with this kind of vehicle, striping, and warning lights -- and this fellow was taking advantage of my respect for emergency vehicles!

The takeaway (lest it be lost in the fuming :) is that people who are offended by certain types of "bending the rules" will probably never become our customer or spread good will about us.

pt

Guerilla Loyalty

2005-05-16T22:59:00.000-07:00

My family lives on an island west of Seattle. We have 2 grocery stores, 4 traffic lights, and 3 pizza places. So even though this doesn't appear to be the blazing mecca of state-of-the-art marketing technique, I observed a tactic that reminds us all that sharp marketing needs no special context.

After phoning in for pizza delivery a few months back, I heard a new twist that impressed me. The order-taker asked, "If you have a punch card for any other pizza place, we'll trade it in!". Since this is my family's running favorite, I gave the delivery driver my "other pizza" loyalty card (with one punch) and received a "replacement" loyalty card.

In marketing, we are always either growing the market or seaking to take market share from others. The reason this tactic impressed me is how it unabashedly goes after the loyalty that the competitor has built up!

Sure, you can look at this as giving away -- on the average -- half a punch card. But the other way to look at this technique is that we "detoured" future business that would have headed to our competition -- without incurring the cost of an advertising campaign for that purpose.

And little things (good ones like this, as well as thorny ones) tend to be remembered by customers! More on that in a future blog.

pt