Is your business really different?

September 25, 2011

Cover of "Different: Escaping the Competi...

Cover via Amazon

It may be the greatest of all business cliches — you have to differentiate yourself.  I’ve said it myself more than once.  While it is certainly true… many businesses struggle with how to bring the idea to life.

And even when a business believes they have achieved that level of uniqueness — their customers can’t see or describe the difference.

Many marketing books push you to be different but very few tell you how.

That’s what’s fascinating about Youngme Moon’s best selling book Different. (click here to buy it*) It was just released in paperback and I finally got around to reading it.

The book’s basic premise is that we humans subscribe to a herd mentality and tend to categorize everything into little boxes.  Which is originally unique is quickly copied and becomes the norm.

So, if that’s how we are wired — how do we ever truly stand out from our competition?

Moon offers three ways to disrupt this herding pattern.

Reversal: The first way to be different is to use the “reversal” concept. Back when you hadn’t yet heard of Google, the online portal kingpin was Yahoo. Yahoo’s home page was crammed with news, stats, photos and links.

If you wanted to compete with them — you’d most likely be trying to fit even more features on your homepage, not less. That’s how things were done. But Google decided to look at it in a new way. They completely redesigned the search engine experience for billions around the world by having nothing on the home page but the search box.

They reversed the norm.

Breakaway: What breakaway brands do better than anybody else is leverage this fact by asking you to replace one mental model with another.

Kimberley-Clark created an entirely new marketplace by creating the “Pull-Up”. It’s a cross between underwear and a diaper. It’s still just a diaper put on a different way. But they completely remove the stigma of wearing diapers past the age two, and parents are now routinely keeping the kids in these “Pull-Ups” beyond the age of four.

Hostile: This method takes some courage.  It’s basically when a brand takes its most significant weakness and accents it.  A hostile brand  “doesn’t lay down the welcome mat, they lay down a gauntlet.”

It isn’t marketing, it’s anti-marketing. Mini is the perfect example of this. It took it’s biggest possible wart, and made it even bigger. All of its advertising seems to say “it’s even smaller than you think.” In one famous example of this type of branding executed flawlessly, Mini put one of its cars on top of an SUV and drove it around a busy downtown core for all to see. Where you were used to seeing a ski rack, you saw an entire car.

The book has plenty of examples to learn from and will definitely get you thinking about your organization in a new way.  It’s well worth the read.

*Yup, an affiliate link.
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Why Facebook matters to every business

September 21, 2011

 

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Why Facebook matters to every business

 

I’ve heard all the reasons, especially from B2B companies…but the “our customers aren’t on Facebook” excuse is just that, an excuse.

We buy radio stations and send direct mail hoping to hit some of our target audience.  Why do we look at Facebook so differently?

With statistics (thanks to HubSpot for sharing this slide) like these… every business owner and marketing director should be figuring out how to leverage the Facebook crowd.

I’m not saying you need a fan page.  Or have to do a contest or create a game.  I’m saying you’d better understand what happens there.  You’d better be monitoring what is being said about your company there.

You need to decide HOW to be there.  But you can’t ignore it simply because you have a preconceived idea of who hangs out there.

Odds are… it’s your customers.  And they hang out there a lot.

 

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Customer service case study from Jeff the cabbie

September 18, 2011

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… meet Jeff the marketing professor!

From on outset, I knew this was going to be a different sort of cab ride.  I walked out of the hotel and just like it has happened hundreds of times before…magically, the taxi appeared.

But from that moment on, it wasn’t a ride, it was an experience!

The bellman put my suitcase in the trunk as I got into the back seat.  The driver immediately turned around in his seat and extended his hand.  As we shook hands, he introduced himself and asked what kind of music I liked.

I told him to surprise me and he suggested some Carlos Santana because “you can’t help but feel joyful if you’re listening to Santana.”

As we headed towards the airport — my marketing lesson continued.  Jeff got a call (like cab drivers always do) but quickly told his wife he had to go because he was chatting with his new friend Drew.

He proudly pointed out to me that his taxi was a Lincoln Town Car and as I commented on how the leather glistened, he explained that he wipes down the interior a few times a day to keep it like new.

In the course of the conversation he gave me  his business card with his cell phone number on it.  He invited me to call and pre-schedule with him next time I was in St. Louis.  He told me that most of his fares were by referral or repeat business.  I’m not surprised.

When we got to the airport, he not only got my bag out of the trunk, but he carried it to the airport’s door.  We said goodbye with another handshake.

I bet it won’t surprise you that he received more than a healthy tip from me.  And I suspect that’s the case with most of his fares.

What are the takeaways from Professor Jeff?

People do business the people: It’s hard to imagine a less random choice than hailing a cab.  Whoever is first in line is who you choose.  But Jeff made sure he wasn’t some random cabbie to me.  He went out of his way to become a person — and a person I liked.  Next time I am headed to St. Louis, I will be calling Jeff.

It’s all about the customer: Jeff made me feel like he actually cared that I was in his cab.  He called me by my name.  He didn’t talk on his cell phone but instead, stayed engaged with me.  He invited me to partake in the music selection and we chatted for the entire 30 minute drive.

Appearances do matter: His cab was immaculate, inside and out.  He was dressed neatly and he had a warm and genuine smile on his face.  You honestly couldn’t help but enjoy doing business with him.

I’d bet that Jeff never took a single marketing course. (He was a cop for 25 years before becoming a cab driver) He probably doesn’t have a brand manual, a tagline or a company vision statement.

But he understood customer service better than many companies that have all three.

And if you’re ever headed to St. Louis, let me know.  I’ll hook you up with my buddy Jeff, so you can get some marketing schooling!

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How much should you spend on marketing?

September 15, 2011

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How much should you spend on marketing?

I know I need to do some marketing but how much should I spend?  How much do other companies my size spend?

This is probably one of the most asked questions of marketing agencies and consultants.  If you google the phrase, there are 17+ million results.  And yet, we keep asking.  So let me see if I can drill down to the heart of it.

One of the reasons why it’s on everyone’s mind is because there is no magic answer.  No one solution.

Before we get into the methods of determining a right answer, let’s be very clear about these two points:

1) The exact amount matters less than having an amount.  In other words, having and tracking a marketing budget, even if your initial number is off, is much more important than getting the number exactly right.

2) You can have the right budget and spend it on the wrong things.  A marketing plan should always be tied to a strategic marketing budget.

Now, let’s tackle the question.  Here are some of the more effective ways to set a marketing budget:

Percentage of gross sales/revenue:

This is probably the simplest method.  Most experts recommend somewhere in the range of 2-8% of gross sales.  McKinsey & Company is often quoted at 5%.

Most small businesses (less than $5 million gross revenue) should shoot for at least 7-8%.

Industry-specific:

Many industries have their own standard.  For example:

  • Consumer package goods:  Up to 50% of projected net sales to launch a new product
  • Industrial B-to-B:  1% of gross sales
  • Retail:  4-10% of net revenues
  • Banks/Credit Unions:  2-5% of assets
  • Law firms:  1-4% of gross revenues
  • Pharmaceuticals:  Up to 20% of net sales
  • Hospitals:  1% of net revenues

Lifetime value of customer:

The idea is simple. You identify how much profit (on average) you make during the lifetime of that customer relationship and determine how much you are willing to invest per customer acquisition.  If you choose this method be very careful that your numbers are accurate.

Goals/Plan driven:

The thinking behind this method is really a blend of some of the others.  Identify measurable goals (# of new clients, % of revenue increase, etc) and then determine your sales equation.

For example:  For every 100 prospects approached, you get 25 initial meetings.  From those 25 meetings, you can expect to get 12 invitations to present a proposal.  From 12 proposals, you will score 4 new clients.  If your goal is 20 new clients, you now know that you need to approach 500 qualified prospects.  You build your marketing plan to accomplish that and assign the costs accordingly.

Again, this method requires very accurate numbers to make the equations viable.

So what do you think?  Which method do you currently use?  If you don’t have a marketing budget, which method do you think would serve you best?

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I already know you’re an expert

September 13, 2011

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…they already know you’re capable

When I get hit in the forehead twice on one day with a marketing tip — I know it’s time to share.

Incident One: I’m on the phone with a potential new client who is telling me about his previous experiences with finding the right agency.

He’s describing one agency visit and says, “pretty much all we talked about were how many awards they won.  I already knew they could do the job, I just wanted to know if I liked them.”

Turns out he didn’t like them…but apparently they sure liked themselves.

That agency didn’t get it.

Incident Two: Later that evening (around 11 pm) I’m working in my home office.  I notice a drip of blood that has fallen, apparently from me.  The one drip becomes many and an hour (and two rolls of TP) later, when I still can’t stop the nose bleed… I figure I’d better head to the ER.

We have a new hospital minutes from my house, and fortunately, this was my first visit.  I walked in and within 10 minutes, a nurse is coming out to get me, apologizing for keeping me waiting.  In the holding pen (exam room) the nurse doesn’t tell me about his education or skills, instead he empathized with me by telling me how he used to suffer from nose bleeds and how glad he was I came in, rather than continuing to try to stop it myself.

Doctor comes in 10 minutes later — again, does not tell me his med school GPA or diploma.  He introduces himself by his first name and begins to solve my problem.

(Turns out the solving my problem involved cauterizing — really do not recommend that.)

After the “procedure” — both the doctor and the nurse checked back in and encouraged me to come back in if I couldn’t control the pain or the bleeding started back up.

The entire experience — they focused on me.  They anticipated my questions, concerns and even that I felt a little silly bothering them with a nose bleed.  As the nurse was walking me out to the front door, again he apologized that I had to wait here and there.

They got it.

In today’s age — if someone is approaching you to potentially buy something, they already know you/your product is capable.   No one buys anything today without doing a little research on the web or by asking their network.  If you’ve gotten to the “I want to meet you” stage — they’ve already given you props for your capability.  Now they want to know how the chemistry is.

Here are the questions running through their mind at the interview/first visit stage:

  1. What would they be like to work with?
  2. Do I trust them?
  3. Will they make me look good?
  4. Do they care?

So pitch the PowerPoint slides that blather on about you.  Don’t lead with the awards or credentials.  Just roll up your sleeves and be valuable by being about them.

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Is social media right for your business?

September 10, 2011

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…is social media right for your business?

There are a lot of social media “experts” out there who will tell you that every single organization on the globe should be participating in social media.  They will point to the cool Facebook fan pages they’ve made or the funny videos their clients have on YouTube and say “see, you can do this too.”  And they’re right.  You can.

The question is:  Should you?

The real answer to that question is “it depends.”  It depends on whether or not it can do one of two things.

  1. Save you money
  2. Make you money

If it isn’t going to accomplish one of those two goals, then you have no business engaging in it.  Why?

Participating in social media is expensive.  I know everyone talks about how cheap it is…but that’s because they are not thinking like a business owner.  They’re thinking like someone who knows how to open a YouTube channel account or sign you up on Twitter.   It’s true, creating an account on many of the tools and networks is free.  But that’s where free ends.

To integrate social media into the rest of your marketing, which is an absolute if you want to consider it a business tool, you are going to have to expend some resources.  Social media requires care and feeding.  It requires brand integration.  And it requires a well-conceived strategy.  All of those are going to cost time and money.

Don’t misunderstand.  I believe in the power and reach of social media and most of our agency’s clients are using social media tools as part of their overall marketing strategy, but I am not bullish on the belief du jour that everyone must do it and it’s free.  Neither is true.

Here are twenty questions to ask yourself as you consider melding social media into your existing marketing strategy.

How will it save us money?

  1. Will it allow us to stop doing something we’re currently doing?
  2. Will it allow us to extend/expand something we are currently doing?
  3. Will it lower our customer acquisition costs?
  4. Will it connect us to existing customers in an efficient way?
  5. Will we be able to use social media to create a community specifically for our customers?
  6. Will it be easier for our customers to rave about us/create positive word of mouth?
  7. Do we look behind the times to our customers if we aren’t there?
  8. Will it introduce us to new potential customers at a low lead generation cost?
  9. Will it make us more findable (either within the social network or on search engines)?
  10. Will it impact our search engine results? (so we don’t have to buy results)

How will it make us money?

  1. Will it shorten our sales cycle?
  2. Will it create credibility/trust faster among prospects?
  3. Can we establish ourselves as the expert?
  4. Will it shorten customer service response time?
  5. Will it create a sense of accessibility for our customers?
  6. Will it increase trial of our product/service?
  7. Will it allow us to connect with more prospects at once?
  8. Will it increase repeat buying?
  9. Will it increase up sells?
  10. Can we collect/use testimonials?

If the answers to those questions indicates that social media would be a smart investment for your company to make, then you should be there.  But now you will enter into it knowing that there’s a return for that investment.

Now we’re talking smart marketing, not marketing hype.

 

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Brilliant writing is timeless

September 7, 2011

Two months into launching my blog in 2006, I stumbled upon this example of copywriting brilliance and shared it with my readers.  Back then, my readers consisted of my parents and about 2 other kind souls who took pity on the newbie blogger.

I was going through some old posts for a project I’m working on and discovered it again.  Now that I have a whole handful of readers, I thought I’d share it again.

As you experience the copy, think about how it must have evolved.  The time it took.  The precision of the language.  This kind of work doesn’t happen when you’re rushed or not really thinking about the end game — what do I want my audience to feel/realize at the end?

There’s a twist to this…so stick with it until the end.  It’s worth it.

Enjoy.

 

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Are we living lives of quiet desperation?

September 4, 2011

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… who out there is truly feeling alone?

I’m not a big believer in coincidences.  I am however, a big believer in clues.

I think our lives are littered with clues… and usually we either dismiss them or are completely oblivious to them.  Who you think doles out those clues depends on your spiritual beliefs.  For me, I’ve often joked that  God starts with pebbles and it’s about the time He’s placed a boulder in my path that I finally notice.

Who leaves the clues isn’t my point.  It’s the fact that they are there that matters.   This is a post about clues and how often we miss them.  And maybe something we can do about it.

For me, clue one is that Henry David Thoreau‘s quote “Most men live lives of quiet desperation and go to the grave with the song still in them” has been weighing heavy on my heart for the past month or so. It keeps appearing in odd places like Google searches and I find my mind drifting to it and lingering on it, both in my head and in my deepest soul.

I think Thoreau was right.  And I think his statement is actually more true today than ever before.  What makes his words so haunting is how horribly isolated they sound.  A  heart filled with a loneliness and hopelessness that is cloaked in silence.

In a world where we are constantly reminded of how many friends, followers and fans we have — how can that be?  We’re busier than ever before.  We check our email 37 times a day and update our statuses around the clock.  The chatter is constant.   The sharing never ending.  And we like it that way.  We like getting to know each other.  But are we really?

For many of us, our financial/professional success is tied to all of these interactions and to the persona/brand we create.  I’m not suggesting for a minute that it’s fake.  But it is selective.  Just like there’s an inside and an outside voice when you’re a kid — we understand the social norms and most of us stay inside them.

But what if on the inside, surrounded by 2,000 friends, 10,000 followers and a bevy of fans — you feel all alone?  Maybe that constant buzz and busyness allows you to keep people at bay. What if that quiet desperation is slowly enveloping you to the point that you might suffocate — but you don’t dare let anyone see it.

It’s so much easier to hide today in the flurry of quips, 140 character chatter and the constant activity.  Which is also what makes it all the more lonely.  It’s like being at a huge party and needing to cry.  There’s no way you can pull that off — so you stuff those feelings down deeper and you become the life of the party to distract yourself and everyone else from how you’re really feeling.

Clue two came today with word of the tragic suicide of Trey Pennington, a very talented writer, speaker and a well known social media personality.  Trey was everyone’s friend.  One of the good guys.  He was always helping someone achieve a goal or try something new. I “knew” him but I didn’t know him. We’d never met in person. We shared some brief exchanges on Twitter and Facebook — but like many others who mourn his loss — I only saw the parts of his heart that he felt safe to expose in public.

I think there are a lot of Trey Pennington’s walking around out there — lifting up and supporting other people, partially because it’s who they are but also because it’s more comfortable than letting the attention turn their way.  And yet inside, they’re barely  making it through the day.  They are drowning in their own quiet desperation.

Clue three came in the form of an incredibly brave blog post called The Difference Between Trey Pennington and Me by Bridget Pilloud.  She tells of a time in her life when she had decided to commit suicide and the one thing that stopped her is that someone noticed her depression despite the mask and called her on it.  I believe that blog post will save a life.  Maybe many.  It made me cry.

Why in God’s name am I telling you all of this on a marketing blog?  Honestly, I have no idea why and maybe I never will.  I tried to talk myself out of it.  I’ve almost deleted it several times.  But somehow, the boulders are so big that I can’t.  So I’ve stopped fighting it.  If I lose some subscribers, so be it.

For some reason, I think you need to hear this. Or maybe I need to say it.

Trey’s friends, both casual and very close, are writing about him tonight as you can imagine.  They’re telling wonderful stories, talking about how he touched their lives and they are loving him well.  It’s a fitting tribute to a man who has earned the love and respect he’s being offered. The more casual of his friends are of course, saying that they wished they’d known.

Maybe that’s what’s driving this post for me.

I think we have this stereotypical idea of what a depressed person looks and behaves like.  The prescription drug commercials tell us that they can’t get out of bed or shower.  They sit on their couch in their robe, staring blankly into space.  They certainly aren’t successful.  They aren’t the life of the party.  They aren’t charismatic and busy serving others.

But they are.  And I think they are all around us.  But we’ve been fooled because they’re afraid for us to know.

Despite the suffocation of the desperation — they don’t want us to know.  It’s a shame-filled secret.  But they also desperately need our help.  They need us to ask because they have no idea how to tell us.  Or if they should.

If you’re a little worried about someone or you see hints of something going on underneath — ask.  And ask again.  If you know someone is going through a tough patch, don’t accept the quick “I’m fine” as they turn the conversation back to you.

Please pay attention and watch for the clues.  I’m hoping you’ll be more alert to them and brave enough to act on them.

Thanks for being patient while I moved the boulders off the path.  Some clues are too big to ignore.

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With all due respect, what are you waiting for?

September 4, 2011

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…what are you waiting for?

I’m all for having a plan when it comes to marketing.  To just start flailing around is usually a waste of money and opportunity.  But for many businesses, the need for a plan and the “right” time is just an excuse to do absolutely nothing.

I’m also absolutely positive that there is one marketing tactic that you KNOW you should be doing but for some reason you haven’t started it yet.

Maybe you don’t have the perfect name for your newsletter.  Perhaps you aren’t sure if you have the stamina to blog.  Or something might happen in the 4th quarter that would negate the momentum of the initiative (translation = you’re scared).

Just start.  Don’t put it off for another minute.

You are letting your head get in the way of your marketing gut.  Maybe you can’t explain why you know it’s the right choice or you have never done it before so you’re worried you’ll do it wrong — whatever is stopping you —  get out of your own way.

Call it a pilot program or a test run.  In your own head, make it sound like it’s no big deal.  However you have to psych yourself out/up — do it.

Marketing is an every day thing.  Not a special day thing.  It’s not the Thanksgiving china — it’s the Corelle dishes you use on Mondays (and Tuesdays…).  So get over yourself and just make this happen.

How can you actually get this done?

  1. Starting right now — create a list of what you need to have/do to launch.
  2. Set a date.  A firm date that you’re not going to miss.
  3. Tell someone (your team, your boss, your customers) that you’re going to do it and when (i.e. We’re launching our company Facebook fan page on Oct 1!)
  4. Create a reward for yourself/team to celebrate the launch (it can be as simple as ice cream cones to as big as a day off)
  5. Start chipping away at the list.  Now.  Today.

You have 4 months left in 2011.  There’s always going to be a reason not to start.  Isn’t it time that you just did it anyway?

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THE best customer service tip ever

August 31, 2011

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… stellar customer service = pinky swearing

I’m going to tell you THE secret to incredible customer service, customer retention and word of mouth referrals.

It’s quite complicated so you’ll want to print off this post and hang it somewhere where you can refer to it every day.

If you’ve got music playing or some other distraction around you — turn it off/put it away so you can fully concentrate on the concept I am about to unveil before your very eyes.

Ready?

Pinky Swear.

When we were kids, if you pinky swore — that was a blood oath, a die or do it sort of thing.  There were no asterisks, exceptions, small type or exclusions.  It was a pinky swear. Enough said.

If you want your customers to rave about you and to come back time and time again — pinky swear.

If you are so old that you don’t remember pinky swearing — let me translate it for you.

Do what you say you’re going to do.  Every time.  No exceptions.

Go forth….and pinky swear.  Your customers will love you for it.

 

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