You know I’m a big proponent of (centralized) data warehousing and what it can do for a business. But the key is the “what it can do” part of that sentence. Too often, companies want to start with centralizing the data, when they should be starting with how they’re going to use it.
Consumers (rarely) react to a single contact. Their relationship to your company will normally depend on the sum of all their experiences with it. You need to understand that sum, and what goes into it. The way to do that is to:
1) identify and map out all the ways a customer can interact with your company throughout the customer lifecycle,
2) create a strategy to link and optimize these touch points, and
3) then create the infrastructure to implement your strategy
These interactions will involve tools like your website, email, snail mail, telephone, social media, and face-to-face. They will take place during proactive and reactive interactions with people in your sales, marketing, accounting, operations, distribution, legal, and other departments.
Prospects and customers are not all the same. Which of them are “influentials?” Which are “advocates?” Who is profitable? Who is costing you money? How do you want to interact with each of these groups during every potential contact with you?
Sound complicated? It is. But would you rather have your prospect and customer relationships developing randomly (as they do for most companies), or under your direction?
The more you understand, guide, and control the contacts that create a customer’s relationship with your company, the more successful you are going to be. That idea is simple, it’s the execution that’s hard. But the more you embrace that execution, the greater the competitive advantage you will generate.
Your CMO can help you map your interactions and better control their outcomes to create more profitable relationships with prospects and customers. Give me a call and we’ll talk about it!
Monday, November 28, 2011
Saturday, October 15, 2011
Two key elements of Innovation
It’s a fast-paced world out there these days, and standing still is a good way to get run over. That makes innovation more important than ever. Whether you’re trying to identify new products or services, save money, or improve efficiency, innovation is the best way to increase your competitive advantage.
But most companies lack even the most basic structure to generate innovation. Here are two things that basic structure requires:
1) Ideas! And not just from the managers. Ideas should come from all levels--just offer a reward and see how many you get (it doesn’t even have to be a big reward). [Interesting anecdote: The military once offered its members 1% of the first year’s annual savings for innovative ideas which were implemented. They stopped the program because too many of their key non-coms were retiring on the millions of dollars awarded.]
One free way to foster innovation is to make it one of the job objectives evaluated for each person’s annual review. You can even challenge your vendors to submit ideas. Think about asking for different types of ideas in different years. “What would make us more efficient?” or “How can we save money?” or “What would make our job easier?” for example.
Publish the ideas in an (internal) forum available to your employees. You’ll reduce duplication and encourage synergy (“Instead of this, what if we did that…”)
2) An evaluation system: You won’t be able to implement every idea you get. Nor should you. So you need a system to evaluate and prioritize ideas. Two very basic measures are relevance to your corporate goal(s) and projected return on invested resources. Ideas should not necessarily be ranked on how well they make use of current organizational resources or expertise--that may be too limiting.
Make sure employees know the evaluation criteria. Over time, they will begin pre-filtering their own ideas, improving the quality of the suggestions you receive.
Final thought: Wouldn’t it be neat if some of our government agencies did this?
Your CMO has been involved in innovation for over 30 years. If you want to jumpstart your innovativeness, get in touch!
But most companies lack even the most basic structure to generate innovation. Here are two things that basic structure requires:
1) Ideas! And not just from the managers. Ideas should come from all levels--just offer a reward and see how many you get (it doesn’t even have to be a big reward). [Interesting anecdote: The military once offered its members 1% of the first year’s annual savings for innovative ideas which were implemented. They stopped the program because too many of their key non-coms were retiring on the millions of dollars awarded.]
One free way to foster innovation is to make it one of the job objectives evaluated for each person’s annual review. You can even challenge your vendors to submit ideas. Think about asking for different types of ideas in different years. “What would make us more efficient?” or “How can we save money?” or “What would make our job easier?” for example.
Publish the ideas in an (internal) forum available to your employees. You’ll reduce duplication and encourage synergy (“Instead of this, what if we did that…”)
2) An evaluation system: You won’t be able to implement every idea you get. Nor should you. So you need a system to evaluate and prioritize ideas. Two very basic measures are relevance to your corporate goal(s) and projected return on invested resources. Ideas should not necessarily be ranked on how well they make use of current organizational resources or expertise--that may be too limiting.
Make sure employees know the evaluation criteria. Over time, they will begin pre-filtering their own ideas, improving the quality of the suggestions you receive.
Final thought: Wouldn’t it be neat if some of our government agencies did this?
Your CMO has been involved in innovation for over 30 years. If you want to jumpstart your innovativeness, get in touch!
Stranger In A Strange (generational) Land
If you visit Japan, or Germany, or Brazil, you expect cultural differences. Same with people of different races or religions. But the cultural gap between generations can still surprise us. I think we unconsciously tend to expect people “like us” to have similar attitudes and wants, no matter what their age. Not so.
Why should a marketer care? Here’s just a sampling of industries and functions where generational differences radically impact the form and usage of products and services:
Retirement communities
Cell phones
Publishing
Restaurants
Automotive
Human Resources
Fund-raising
Volunteer recruitment
If you have been giving thought all along to how generational differences affect your business, that’s great. But it’s my experience that very few people do.
If they give it any thought at all, older marketers tend to lump everyone else into YOUNGER. Younger marketers tend to lump everyone else into OLDER. And middle aged marketers just figure everyone is exactly like them.
Generations are defined by unique core values created by what happened to certain groups of people during their formative years. Most “experts” (there’s no certification or credentials for generation gurus) tend to lump living Americans into the following groups:
G.I. generation Born 1901-1926
Silent generation born 1927-1945
Baby Boomer generation born 1946-1964
Generation X born 1965-1981
Millennial generation born 1982-present
If you’re thinking you’d like to know more, you don’t need to reinvent the wheel. There is a ton of research on the attitudes and behaviors that define the different generations, at least here in the U.S. (generational data for other countries is much harder to find). A good starting place is The Generational Imperative by Chuck Underwood, one of the pioneers in the field. He has specific chapters on his book on how to market to each generation, which can be a convenient short cut.
Want to discuss how your business plan might better reflect generational differences? Give me a call--I’ve already read the book!
Why should a marketer care? Here’s just a sampling of industries and functions where generational differences radically impact the form and usage of products and services:
Retirement communities
Cell phones
Publishing
Restaurants
Automotive
Human Resources
Fund-raising
Volunteer recruitment
If you have been giving thought all along to how generational differences affect your business, that’s great. But it’s my experience that very few people do.
If they give it any thought at all, older marketers tend to lump everyone else into YOUNGER. Younger marketers tend to lump everyone else into OLDER. And middle aged marketers just figure everyone is exactly like them.
Generations are defined by unique core values created by what happened to certain groups of people during their formative years. Most “experts” (there’s no certification or credentials for generation gurus) tend to lump living Americans into the following groups:
G.I. generation Born 1901-1926
Silent generation born 1927-1945
Baby Boomer generation born 1946-1964
Generation X born 1965-1981
Millennial generation born 1982-present
If you’re thinking you’d like to know more, you don’t need to reinvent the wheel. There is a ton of research on the attitudes and behaviors that define the different generations, at least here in the U.S. (generational data for other countries is much harder to find). A good starting place is The Generational Imperative by Chuck Underwood, one of the pioneers in the field. He has specific chapters on his book on how to market to each generation, which can be a convenient short cut.
Want to discuss how your business plan might better reflect generational differences? Give me a call--I’ve already read the book!
Identify bad products by how they’re described.
Good products (or services) don’t have to be “sold.” Their benefits and value are easily recognizable. Just communicate them to people, and they’ll buy.
Bad products don’t have easily recognizable benefits, and their value is far from clear. The solution is, of course, to improve the product. But all too often, the company tries to plaster over product deficiencies with a thick layer of glowing adjectives and disclaimers. No one is fooled, but it enables the company to shift the blame (for poor sales) to the advertising agency.
Pick any undistinguished product you like, and check out the language they are using to describe it. The description will be loaded with glowing, generic adjectives like ‘exceptional,’ ‘stylish,’ ‘sexy,’ and ‘supercharged.” And/or the bottom of the page will be covered in mouse type telling you why/how the product isn’t really what it appears to be, or has some unpleasant side effect (‘some assembly required,’ ‘do not attempt at home,’ or my personal favorite, ‘may cause anal leakage’).
Whether consciously or subliminally, consumers do pick up on these cues. That’s why so much advertising is ineffective. Consumers sense the desperation and deceit, and tune it out. Even if there’s nothing wrong with the product, overheated advertising copy can make the product appear second rate.
Want to know what message your advertising is sending? Give Your CMO a call, and I’ll help you figure it out!
Bad products don’t have easily recognizable benefits, and their value is far from clear. The solution is, of course, to improve the product. But all too often, the company tries to plaster over product deficiencies with a thick layer of glowing adjectives and disclaimers. No one is fooled, but it enables the company to shift the blame (for poor sales) to the advertising agency.
Pick any undistinguished product you like, and check out the language they are using to describe it. The description will be loaded with glowing, generic adjectives like ‘exceptional,’ ‘stylish,’ ‘sexy,’ and ‘supercharged.” And/or the bottom of the page will be covered in mouse type telling you why/how the product isn’t really what it appears to be, or has some unpleasant side effect (‘some assembly required,’ ‘do not attempt at home,’ or my personal favorite, ‘may cause anal leakage’).
Whether consciously or subliminally, consumers do pick up on these cues. That’s why so much advertising is ineffective. Consumers sense the desperation and deceit, and tune it out. Even if there’s nothing wrong with the product, overheated advertising copy can make the product appear second rate.
Want to know what message your advertising is sending? Give Your CMO a call, and I’ll help you figure it out!
Yes you can. And your customers expect it!
Back in the day of the corner store, proprietors used to know their customers. They didn’t have to ask the customer’s name or address, and probably had a pretty good idea of the customer’s likes and dislikes. If an order had to be delivered, the store probably even knew what time the customer was likely to be home. And customers appreciated that knowledge, and the personal service it made possible.
Flash forward 50 years, and everything had changed. The corner stores were gone; relationships had become impersonal. The store didn’t care who you were, and if you wanted something delivered, you had to supply your name and address (every time, even if you’d just bought something there the day before). Despite a greater selection and lower prices, store loyalty and customer satisfaction declined.
Flash forward to today. Thanks to computers, there is no longer an excuse for uncollected or inaccessible information. And customers know it. So customers have every right to expect the same kind of recognition and personal service their grandparents used to get from the corner store. It doesn’t matter whether they are buying face-to-face or online. They want the fast, easy, personalized service that a well-networked database makes possible.
Sure there are exceptions. Some of us have information we don’t want companies to store, like birthdays, social security numbers, and financial access data. But apart from those, customers have the right to expect you to know them, and treat them like the individuals they are.
So think about your transactional systems (and this goes way beyond purchases to systems which handle functions like customer service, billing, and shipping). When someone gives you information, do you store it? Do you pre-populate forms with known information? Do you keep track of customer preferences, and make suggestions based on them? Do your all of your (appropriate) people have access to the customer’s history? In other words, do you treat customers as the valued individuals/corporations they are, or as anonymous, unappreciated “buying units.”
It takes a lot to turn a prospect into a customer, and to keep that customer. A well designed, well networked, well used database can make that effort a lot easier.
Your CMO has extensive experience in using data to create a more user-friendly customer experience, and can provide some great examples from places “doing it right.” Let’s sit down sometime and talk about how that experience can help improve your customer acquisition and retention!
Flash forward 50 years, and everything had changed. The corner stores were gone; relationships had become impersonal. The store didn’t care who you were, and if you wanted something delivered, you had to supply your name and address (every time, even if you’d just bought something there the day before). Despite a greater selection and lower prices, store loyalty and customer satisfaction declined.
Flash forward to today. Thanks to computers, there is no longer an excuse for uncollected or inaccessible information. And customers know it. So customers have every right to expect the same kind of recognition and personal service their grandparents used to get from the corner store. It doesn’t matter whether they are buying face-to-face or online. They want the fast, easy, personalized service that a well-networked database makes possible.
Sure there are exceptions. Some of us have information we don’t want companies to store, like birthdays, social security numbers, and financial access data. But apart from those, customers have the right to expect you to know them, and treat them like the individuals they are.
So think about your transactional systems (and this goes way beyond purchases to systems which handle functions like customer service, billing, and shipping). When someone gives you information, do you store it? Do you pre-populate forms with known information? Do you keep track of customer preferences, and make suggestions based on them? Do your all of your (appropriate) people have access to the customer’s history? In other words, do you treat customers as the valued individuals/corporations they are, or as anonymous, unappreciated “buying units.”
It takes a lot to turn a prospect into a customer, and to keep that customer. A well designed, well networked, well used database can make that effort a lot easier.
Your CMO has extensive experience in using data to create a more user-friendly customer experience, and can provide some great examples from places “doing it right.” Let’s sit down sometime and talk about how that experience can help improve your customer acquisition and retention!
Sunday, May 1, 2011
Time for a Reality Check
The following exchange is from the classic movie E.T.
Elliot: "He's a man from outer space and we're taking him to his spaceship." Greg: "Well, can't he just beam up?" Elliot: "This is REALITY, Greg."
We all need to deal with reality. And reality is that marketing is not about what we want to sell. It is about what they want to buy. It's easy to ignore reality in the short term. You can simply tell your marketers and sales force "Go make people buy this." But eventually reality will have to be faced. And if you're trying to force your product or service on uncaring prospects, the bill will come due sooner rather than later.
It's economic Darwinism. The companies that listen to their prospects; the companies that take the time to understand what is needed, are ultimately successful. The ones that try to shortcut the process ("I know what the public needs--why should I waste money asking them?") are usually the ultimate losers. I'm not saying that these "I know what they want" companies don't occasionally get lucky, but do you really want your business success to depend on luck?
NOTE: I am not paid by, nor am I a member of, a marketing research firm. But whether you use one, or just do casual interviews yourself, you need to check in with your prospects and customers once in a while. No, make that "all the time." Because keeping in touch with reality is not a one-time or occasional chore--it's something you need to write on your To Do list every day.
We live in a world that is changing and evolving more rapidly than in any time in human history. Technology, events, attitudes, even weather--the landscape is constantly shifting around us. Even if you have been successful at meeting a need for a targeted group, that need is not a constant. It will change--and you'd better be ready to change with it.
So stay in touch. Yes, it is time-consuming. Yes, it is expensive. Yes, it is confusing. But "This is reality, Greg." It is also the simplest way to get and keep a competitive edge. And isn't that what we're all looking for?
Elliot: "He's a man from outer space and we're taking him to his spaceship." Greg: "Well, can't he just beam up?" Elliot: "This is REALITY, Greg."
We all need to deal with reality. And reality is that marketing is not about what we want to sell. It is about what they want to buy. It's easy to ignore reality in the short term. You can simply tell your marketers and sales force "Go make people buy this." But eventually reality will have to be faced. And if you're trying to force your product or service on uncaring prospects, the bill will come due sooner rather than later.
It's economic Darwinism. The companies that listen to their prospects; the companies that take the time to understand what is needed, are ultimately successful. The ones that try to shortcut the process ("I know what the public needs--why should I waste money asking them?") are usually the ultimate losers. I'm not saying that these "I know what they want" companies don't occasionally get lucky, but do you really want your business success to depend on luck?
NOTE: I am not paid by, nor am I a member of, a marketing research firm. But whether you use one, or just do casual interviews yourself, you need to check in with your prospects and customers once in a while. No, make that "all the time." Because keeping in touch with reality is not a one-time or occasional chore--it's something you need to write on your To Do list every day.
We live in a world that is changing and evolving more rapidly than in any time in human history. Technology, events, attitudes, even weather--the landscape is constantly shifting around us. Even if you have been successful at meeting a need for a targeted group, that need is not a constant. It will change--and you'd better be ready to change with it.
So stay in touch. Yes, it is time-consuming. Yes, it is expensive. Yes, it is confusing. But "This is reality, Greg." It is also the simplest way to get and keep a competitive edge. And isn't that what we're all looking for?
Four elements of a good advertisement
An advertisement can be anything, from a one-page flyer to a radio spot to an announcement in your church bulletin to a television commercial. No matter what form your advertisement takes, it will be more successful if it contains these four elements:
1) INTEREST VALUE: A good advertisement can attract attention in an environment in which anywhere from hundreds to thousands of advertisements per day (depending on who’s doing the measuring) are competing for your attention. This is job one, because if people don’t pay attention to your ad, it doesn’t matter what you’re trying to say. Note: the more often your ad will be seen, the more you want to avoid “shock” or surprise tactics that lose their punch after the first viewing. For an ad that will be around a while, it is a good idea to include a number of emotionally satisfying or interesting bits that will continue to draw attention during repeated viewings/hearings. Example: The Progressive Insurance ads with “Flo.”
2) RELEVANCE: A good advertisement offers a meaningful reason to consider and remember the brand. This sounds easier than it is. How many times have you been able to remember an ad, but not what it is advertising? It can be a struggle to reconcile this element with Interest Value, but unless you do, you’re wasting your advertising money.
3) SIMPLICITY OF EXECUTION: Don’t get too cute! Remember, you intimately understand your product and its benefits. The people who will see/hear your ad are starting from scratch, and will be paying limited attention to your message. Don’t expect too much from them! They will remember (at most) one or two simple points. So make those points, then shut up! If you have a lot to tell people, you’re going to have to do it over a series of ads, in person, or via your website. The job of advertising is to tease the prospect into seeking more information (or to sway the informed consumer to select your product over another). If you have to spend too much time explaining your product or its benefits, maybe its not as good as you think it is!
4) BRANDING PROPERTIES: Worst case—the consumer sees your ad, then goes out and buys your competitor’s product. Make sure your commercial clearly associates the product in your ad with your brand and your brand only. Make sure your name is clearly and repeatedly mentioned in your ad. If you have a brand logo, feature it prominently (that’s why logos were invented!). This is not only important for the current product, it also creates synergy in advertising for future products.
If you’re looking for help making your advertising more effective, YOUR CMO can help. Give me a call and we’ll talk about how to make it happen!
1) INTEREST VALUE: A good advertisement can attract attention in an environment in which anywhere from hundreds to thousands of advertisements per day (depending on who’s doing the measuring) are competing for your attention. This is job one, because if people don’t pay attention to your ad, it doesn’t matter what you’re trying to say. Note: the more often your ad will be seen, the more you want to avoid “shock” or surprise tactics that lose their punch after the first viewing. For an ad that will be around a while, it is a good idea to include a number of emotionally satisfying or interesting bits that will continue to draw attention during repeated viewings/hearings. Example: The Progressive Insurance ads with “Flo.”
2) RELEVANCE: A good advertisement offers a meaningful reason to consider and remember the brand. This sounds easier than it is. How many times have you been able to remember an ad, but not what it is advertising? It can be a struggle to reconcile this element with Interest Value, but unless you do, you’re wasting your advertising money.
3) SIMPLICITY OF EXECUTION: Don’t get too cute! Remember, you intimately understand your product and its benefits. The people who will see/hear your ad are starting from scratch, and will be paying limited attention to your message. Don’t expect too much from them! They will remember (at most) one or two simple points. So make those points, then shut up! If you have a lot to tell people, you’re going to have to do it over a series of ads, in person, or via your website. The job of advertising is to tease the prospect into seeking more information (or to sway the informed consumer to select your product over another). If you have to spend too much time explaining your product or its benefits, maybe its not as good as you think it is!
4) BRANDING PROPERTIES: Worst case—the consumer sees your ad, then goes out and buys your competitor’s product. Make sure your commercial clearly associates the product in your ad with your brand and your brand only. Make sure your name is clearly and repeatedly mentioned in your ad. If you have a brand logo, feature it prominently (that’s why logos were invented!). This is not only important for the current product, it also creates synergy in advertising for future products.
If you’re looking for help making your advertising more effective, YOUR CMO can help. Give me a call and we’ll talk about how to make it happen!
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