Archive for November, 2007
YEAH… BUT I LIKE IT
Tags: American Express, Branding, Harry Beckwith, Marketing, Visa
Why do people buy what they buy? Many marketers assume that buying decisions are made fairly logically. A prospect for a service adds up the cost, and benefits of one service, compares it to another’s, and chooses the service with the better score… right?
But seemingly sophisticated prospects for even sophisticated services do not behave this way, as the strange case of Visa versus
American Express clearly suggests. Consider the evidence.
Visa cards are accepted in almost 3 times more locations than American Express cards. You can pay back Visa immediately, or over time. You must pay on an American Express card at the end of each month or suffer substantial penalties. You pay $20 for a basic Visa card, and $55 for one from American Express.
Now… what “truly rational” people want from a credit card is utility relative to price. “Truly rational” people want to pay as little as possible for credit card benefits. A “truly rational” person; in other words, chooses a Visa card. Perhaps all of Earth’s rational people do choose Visa… but that leaves 25 million Americans who use American Express cards. Why?
Because of prestige, apparently. This is to say… American Express emphasizes that “Membership has it’s rewards.”
“What’s the point,” you might ask?
Appeal only to a prospect’s reason, and you may have no appeal at all.
This is an excerpt from one of my favorite books, Selling The Invisible, by Harry Beckwith. I highly, highly, highly recommend that you buy it, read it, re-read it, then read it again.
FOUR OBSESSIONS OF AN EXTRAORDINARY EXECUTIVE
I’ve recently completed the book… The Four Obsessions Of An Extraordinary Executive, by Patrick Lencioni. I’d give this book 3 out of 4 stars, and I recommend it to you. As always, Patrick makes his point in the form of a fable. This time, the fable is about 2 competing consulting firms that headquarter in the same town.
For the sake of brevity, I thought I’d summarize what Lencioni advocates as the 4 obsessions.
OBSESSION #1: BUILD AND MAINTAIN A COHESIVE LEADERSHIP TEAM
It’s always about the team, right? Lencioni points out that without obsession 1, the rest doesn’t really matter. It’s crucial to cultivate an environment of trust throughout your team… real trust. He advocates vulnerability, and a loyalty to the company and each other, no matter what.
OBSESSION #2: CREATE ORGANIZATIONAL CLARITY
Without clarity, confusion and hesitation invade any organization. What are the mission, values and priorities of your organization? Why does the organization exist? What difference does it make in the world? It’s important to avoid the temptation to “market” these items like a slick campaign. It’s a lifestyle from the top… down.
OBSESSION #3: OVER-COMMUNICATE THE IDENTITY AND DIRECTION
You can’t say it enough! Andy Stanley once said that “Vision is like a bucket with holes… they both leak.” It’s imperative to discuss, promote and demonstrate the identity and direction of your organization, in what might seem like excessive doses to your team. Create a strong sense of common purpose and direction that supersedes any departmental or ideological allegiances that your team may have. It’s as simple as 1, 2, 3… 1. Repetition, 2. Simple Messages & 3. Multiple Mediums.
OBSESSION #4: REINFORCE ORGANIZATIONAL CLARITY THROUGH HUMAN SYSTEMS
Communication alone will not reinforce clarity. There are 4 primary human systems that serve to institutionalize an organization’s sense of clarity.
1. HIRING PROFILES: Look for candidates that will fit within the organizational culture. Ask the right questions, and avoid making costly hiring mistakes that sometimes take months and years to correct.
2. PERFORMANCE MANAGEMENT: Help your employees to identify opportunities for growth and development. This system should be customized to provoke meaningful discussions between managers and employees about relevant issues they’re dealing with on a daily basis.
3. REWARDS & RECOGNITION: Reward and recognize your team as they consistently and successfully exhibit behaviors and actions that support and align with the direction, values and success of the organization. These not only provide incentives for your employees to exhibit the right behaviors, but they also serve as a high-profile means of promoting the values themselves.
4. DISMISSAL: It’s crucial to only have those on the team that are truly on the team. You don’t want the right person on the wrong bus. Don’t allow one apple to spoil the rest. Act fairly, but quickly.
ALMOST NOTHING BEATS A BRAND
Tags: Branding
Your brand is more than a symbol. In the public’s eye, your brand is a warranty. It is a promise that your service will live up to its name, and perform. Your brand is even MORE important than a warranty. No warranty does enough, because no warranty compensates the warranty holder for the lost time, suffering, frustration and inconvenience.
Your brand is more important because it is the closest thing to a guarantee… that the customer will not need the warranty, and have to endure the claims process. Brands are even more important to service customers because few services have warranties, in part because most services are difficult to impossible to warrant.
How does one warrant that their legal advice will be certainly good… that a waiter’s service will be good… that a tax accountant will find every permissable deduction? Clearly, in most cases, one can’t.
Left without a warranty, the client has only your brand on which to depend. And depending on brands is just what service clients do. A service is a promise, and building your brand, builds your promise.
HOW DO YOU GROW?
Tags: Business
How many of you have recruited the services of someone, only to be grossly disappointed by the poor results of that service provider? You thought to yourself… “If this guy only had a clue.” They repeatedly dropped balls… or simply failed to meet their promises. What did you do about it?
Probably very little… maybe even nothing. Did you let them know how bad your experience was in working with them? Not likely. You; like most others, didn’t want to get involved in a prolonged discussion or heated debate… and you definitely didn’t want to offend them.
So how do you suppose this company handled their next project with their next client? THE VERY SAME WAY.
Frequently, friends, clients, and sometimes… even family won’t tell you what you’re doing wrong. So, how do you go about improving your service?
Ask.
THE POWER OF NAMES
Tags: Apple, Branding, Braun, Business, Namelab, Propel Water, The Cheesecake Factory
I can’t even remember how many instances in which a prospect shared with me, that the reason they called us… or selected our company to call from a list of our competitors… was sheerly because of our name. They just had to find out more about LOUD! Creative Group.
“I saw your company listed in the Houston Business Journal, and I had to find out more about the company with a name like LOUD! Creative Group.” said a recent prospect.
Why do Fortune 500 companies pay over $35,000 for a name? Because names make a company’s first impression. First impressions are crucial, and convey much of the little information about you that the prospects have.
Think about it for a moment… It’s not a gear shift… it’s a “Magnesium Paddle Shifter.” It’s not just water… it’s “Propel Fitness Water.” It’s not just a family diner… it’s “The Cheesecake Factory.” It’s not just an electric razor… it’s the “Braun Contour.” It’s not just hand soap… it’s “Tranquil Mint Aromatherapy.” It’s not just a personal computer… it’s a “Quad-Core Mac Pro.” Clearly I could go on and on, but I think you’re getting the point. Whether you’re naming your company, your organization, your service or your product… names matter.
In his book; “Selling The Invisible,” Harry Beckwith articulates this very well. He suggests that you put your name to the “Information Per Inch” test. How much valuable information per inch does your name imply?
A wonderfully named San Francisco based company perfectly illustrates the “Information Per Inch” principal. “NameLab”, a company that specializes in naming products. With lighting speed, NameLab’s name suggests the company takes a near scientific, analytical approach to developing names… something distinct in its industry.
Beyond that… the freshness and slight whimzy of the name also suggests the companys capacity for creative, right brain thinking. “NameLab” conveys a powerful double meaning to its prospects… with an excellent information per inch ratio…
Ask yourself… If you needed a name… Whom would you call first… Names Inc., The Name Company, or NameLab?
A week later… which comany’s name would you remember? Give every name you consider… the “Information Per Inch” test.
HAPPY THANKSGIVING FROM OUR TEAM TO YOURS
In this season of Thanksgiving, I can’t help but to think of how grateful my team and I are for each of our clients. Without you, we wouldn’t even exist. 2007 has proven to be a great year, and 2008 promises to be an even better one.
I thank you from the bottom of my heart for trusting us, and allowing us to partner with you in your business and marketing efforts. We fully recognize how important your business is, and we’re humbled and honored that you’ve chosen us as your web, print and email marketing partners. We take that responsibility very seriously.
We’re already expanding our products and services for 2008. We want to empower even more businesses to effectively market themselves. We’re already developing new strategies and price points, that will enable even more smaller business owners to upgrade their marketing and PR efforts.
Again, thank you for your friendship, your trust, and for your business. We hope to serve you even better in this new upcoming year as we continue to evaluate and improve our services and products. We’re here for you whenever you need us. Happy Thanksgiving.
Brian
THERE IS STRENGTH IN WEAK TIES
I am currently going through the book, The Tipping Point, by Malcom Gladwell. In this book, he shares the following…
Mark Granovetter; an American sociologist, once performed a 1974 study that became a classic… “Getting A Job.” He studied hundreds of professional and technical workers that lived in a Boston suburb. He discovered that 56% of people in this community who found jobs, found them through a personal connection. 18.8% found their jobs through formal means… newspaper classifieds, advertisements, headhunters, etc. Another 20% roughly applied for their jobs directly.
This is not surprising. The best way to get in the door is always through a personal connection. Granovetter found that of these personal connections, the majority were weak ties. Of those that used a contact to find a job… only 16% saw that contact often. 55.6% saw their contact only occasionally, and 28% saw their contact rarely. People weren’t getting their jobs through their closest and dearest friends… they were getting them through their acquaintances. What’s the point?
When it comes to getting information, leads, ideas, and business connections, weak ties are always better than strong ties. Afterall, your friends occupy the same world that you do. They might work with you, or live near you… and go to the same churches, schools and parties. How much then would they know that you don’t already know? On the other hand, your acquaintances occupy a very different world than you. They’re much more likely to know something or someone that you don’t.
To capture this apparent paradox… Granovetter coined the phrase, “The Strength In Weak Ties.” The more acquaintances you have, the more powerful you become, especially in your business position. Understand the importance of familiarity, and ties to other connectors. Don’t underestimate the power of relationships, even the seemingly insignificant ones.
THE STICKINESS FACTOR
Tags: Barnes & Noble, Design, LOUD! Creative, Malcom Gladwell, Marketing
Our society has clearly become overwhelmed with advertisers clamoring for our attention. The New York based firm; Media Dynamics, now estimates that the average American is now exposed to 254 different commercial messages in a single day. There are billions of websites vying for your browsing time. Cable systems routinely carry hundreds of channels of programming. A glance inside the magazine section of any Barnes & Noble bookstore will reveal the thousands of magazines and periodicals that come out each month.
In the advertising world, this is called the “Clutter Problem.” Clutter makes it increasingly more and more difficult to get any single marketing message to “stick.” Much of what we see and hear, we simply don’t remember.
How “sticky” is your marketing collateral? Is your website original, relevant, fresh and inviting? Does your print collateral blend in with the mediocrity of junk mail that crowds your mailbox? What does your email marketing look like? How about your television and radio ads?
And I am not just talking about design. Looking your best is certainly crucial, but your message… your content is equally, if not more, important.
The name of our company is LOUD! Creative Group. We exist to empower our clients to be heard… to be seen, and to rise above the clamoring clutter of their competition.
Evaluate your marketing collateral, and your message. How much does it stand apart from the rest? How memorable is it? How sticky is it? How worthy is your message of being passed on by others?
WORD OF MOUTH ADVERTISING WORTH $1 BILLION
Word Of Mouth (WOM) advertising is arguably the world’s oldest form of marketing, and it’s on the rise as advertisers pour even more into this discipline.
What’s consumer word-of-mouth advocacy worth to marketers? According to AdAge.com: try $1 billion. That’s how much marketers spent on WOM in 2006, according to an independent research report on the field that will be unveiled during a session at the annual
“Word-Of-Mouth Conference” in Las Vegas today. The analysis, believed to be the first in-depth look at word of mouth, reports that spending on the emerging discipline has increased from $76 million in 2001 to $981 million in 2006 and is expected to grow to approximately $3.7 billion by 2011.
Equally important to the success of WOM marketing may be the research suggesting it is more effective than other forms of advertising. For instance, a recent Nielsen Global Survey of over 26,000 people found that nearly 78% of respondents trusted “recommendations from consumers,” a total 15% higher than the second-most credible source, newspapers. And this trust; according to some, leads to more sales at the cash register.
When you compare WOM as a strategy [to other methods], trusting a friend or influential person is the most determining factor when someone decides to purchase a product.
WHAT IS YOUR BUSINESS EXIT STRATEGY
As you know, I am a huge advocate of E-Myth Worldwide. In their recent newsletter article, they discuss the importance of an exit strategy for your business. I thought I’d share it with you.
Before I do, you should know that E-Myth Worldwide is conducting a Virtual Tele-Training Seminar on “Docmenting Systems” for your business. This seminar is to be held, December 6th, 2007, from 10am PST to 11am PST. The cost is only $179.00… a worthy investment into your business, and ultimately, your sanity and success. We are signing up, and I’d highly recommend that you consider doing the same. Without systems, your business will never be efficient, nor will it ever be franshisable. It’s all about systems!
WHAT IS YOUR BUSINESS EXIT STRATEGY?
It was Benjamin Franklin who said “By failing to prepare you are preparing to fail.”
If you’ve read E-Myth Revisited and E-Myth Mastery… you’d know that it’s important to be planning for the ultimate sale of your business. You need to have the end in mind… or else there will be no “end.” The sale of your business is supposed to be the final chapter of your business.
E-Myth Worldwide recommends that you design an exit strategy before the market is awash with businesses for sale. Perusal of the popular press turns up numerous articles on this coming tide, as do web searches on terms like “boomers selling their business.” The approaching events are clearly on the radar of mergers and acquisitions firms and financial advisors.
PriceWaterhouseCoopers found that half of US business owners plan to sell in the next decade. Another source expects 40% of family-owned US businesses to sell within five years.
Whether it’s this year, or 5, 10, 15 years from now… Do you have a plan? Do you have any strategies and tactics in place as it regards the sale of your business? Do you know what’s necessary to sell you business. If not, start thinking about it now.
DO YOU REALLY KNOW WHAT YOU’RE SELLING?
Tags: Business, sales, Sam Walton, Starbuck's, Wal Mart
What are you really selling? People in the fast food business used to think they were selling food… then they realized they were really selling an “experience.” Does Starbuck’s sell “coffee” or “community?”
Most companies think their clients are buying expertise. Here’s a tip: Your expertise is assumed… but your client (customer, prospect, guest, patron, patient, student, church member, etc.) will evaluate your service by the quality of relationship they have with you, your team and your business. This is where so many businesses and organizations fail… right here!
Sam Walton once said… “Hit’em where they ain’t!” Service businesses are first and foremost about relationships. Winning is a matter of feelings… and feelings are about personalities. Be professional, but more importantly… be PERSONABLE.
What are you really selling? Relationships.
THE RACE
Tags: endurance, Inspiration, Leadership, motivation
For you loyal readers, thanks for your patience over the past several days. Illness had taken over my household, but we’re working through it. On my first day back in a while, I thought I’d share with you a few words of inspiration. I know it seems like a long read, and your time is short… but I really believe you’ll be inspired if you’ll take the time. Enjoy.
THE RACE, D.H. Groberg
Whenever I start to hang my head in front of failure’s face,
My downward fall is broken by the memory of a race.
A children’s race, young boys, young men; how I remember well,
Excitement sure, but also fear, it wasn’t hard to tell.
They all lined up so full of hope, each thought to win that race,
Or tie for first, or if not that, at least take second place.
Their parents watched from off the side, each cheering for their son,
And each boy hoped to show his folks that he would be the one.
The whistle blew and off they flew, like chariots of fire,
To win, to be the hero there, was each young boy’s desire.
One boy in particular, whose dad was in the crowd,
Was running in the lead and thought “My dad will be so proud.”
But as he speeded down the field and crossed a shallow dip,
The little boy who thought he’d win, lost his step and slipped.
Trying hard to catch himself, his arms flew everyplace,
And midst the laughter of the crowd he fell flat on his face.
As he fell, his hope fell too; he couldn’t win it now,
Humiliated, he just wished to disappear somehow.
But as he fell his dad stood up and showed his anxious face,
Which to the boy so clearly said, “Get up and win that race!”
He quickly rose, no damage done, behind a bit that’s all,
And ran with all his mind and might to make up for his fall.
So anxious to restore himself, to catch up and to win,
His mind went faster than his legs. He slipped and fell again.
He wished that he had quit before with only one disgrace.
“I’m hopeless as a runner now, I shouldn’t try to race.”
But through the laughing crowd he searched and found his father’s face,
With a steady look that said again, “Get up and win that race!”
So he jumped up to try again, ten yards behind the last.
“If I’m to gain those yards,” he thought, “I’ve got to run real fast!”
Exceeding everything he had, he regained eight, then ten…
But trying hard to catch the lead, he slipped and fell again.
Defeat! He lay there silently. A tear dropped from his eye.
“There’s no sense running anymore! Three strikes I’m out! Why try?
I’ve lost, so what’s the use?” he thought. “I’ll live with my disgrace.”
But then he thought about his dad, who soon he’d have to face.
“Get up,” an echo sounded low, “You haven’t lost at all.”
For all you have to do to win is rise each time you fall.
“Get up!” the echo urged him on, “Get up and take your place!”
“You were not meant for failure here! Get up and win that race!”
So, up he rose to run once more, refusing to forfeit,
And he resolved that win or lose, at least he wouldn’t quit.
So far behind the others now, the most he’d ever been,
Still he gave it all he had and ran like he could win.
Three times he’d fallen stumbling, three times he rose again.
Too far behind to hope to win, he still ran to the end.
They cheered another boy who crossed the line and won first place,
Head high and proud and happy — no falling, no disgrace.
But, when the fallen youngster crossed the line, in last place,
The crowd gave him a greater cheer for finishing the race.
And even though he came in last with head bowed low, unproud,
You would have thought he’d won the race, to listen to the crowd.
And to his dad he sadly said, “I didn’t do so well.”
“To me, you won,” his father said! You rose each time you fell.”
And now when things seem dark and bleak and difficult to face,
The memory of that little boy helps me in my own race.
For all of life is like that race, with ups and downs and all,
And all you have to do to win is rise each time you fall.
And when depression and despair shout loudly in my face,
Another voice within me says, “Get up and win that race!”
A ROCKING CHAIR IN A DARK ROOM
Tags: advertising, Business, James D. Webb, Marketing
“A business owner that doesn’t advertise is like an old man rocking his chair in a dark room. “He” knows what he’s doing, but nobody else does.”
JAMES D. WEBB