davidpoulos.com

Category: Leadership

  • Win With A Member-Focused Value Proposition

    Win With A Member-Focused Value Proposition

    Readers – Melynn and Carol have really laid it out for us so well I felt no need to add anything beyond “kudos” – we’ve been telling our association clients to research their members’ needs and desires to drive creation of effective benefits, and generate a reasonable value proposition for acquisition and retention for years – clearly these two marketers “get it” –  let me know what you think.

    By: Melynn Sight and Carol Weinrich Helse

    Summary: Develop a strategy based on your members’ wants and needs, and your association will deliver the most relevant suite of products and services to them, leading to higher membership numbers and greater engagement.

    While most association board members think they know what association members want, there tends to be an unintentional disconnect between what the board members believe they know and what association members actually want. Volunteer leaders and executives tend to focus on membership benefits, not the value proposition. In doing so, the association loses an important opportunity to articulate what is really important to members and what will ensure that those dues checks keep coming.

    Thinking about value from the outside in—starting with what members worry most about—will help leaders begin to think, plan for, talk about, deliver, and promote the most relevant portfolio of services.

    What is a Value Proposition?

    10 Steps to Develop and Launch a Value Proposition
    1. Gain approval. When leadership considers this a strategic initiative, it will fuel the process from development through implementation.2. Determine if you’ll do the project yourself or if you’ll hire a third party.3. Do your research. Assemble a diverse task force of members to help plan with “the voice of the member” in mind.

    4. Identify up to three important member audiences.

    5. Determine the biggest concerns and needs of these three member audiences.

    6. Create a draft of your value proposition based on how your association currently answers the biggest needs of these three segments.

    7. Present drafts (or recommendations) to your board for approval. Finalize the value proposition and proof points that support it.

    8. Develop a communications and launch plan for your value proposition. Use the value proposition in association marketing materials, on the website, and in your CEO’s talking points. In other words, make it visible.

    9. Execute on your value proposition. Consider how to incorporate the value proposition into strategic planning, committee work, and staff operations.

    10. Survey and ask members for feedback to determine if you are making progress. Report measurements back to the board along the way.

    A value proposition offers members a clear, sound rationale for joining, belonging, contributing, and taking advantage of what your association offers them—starting with what they think is valuable. It differentiates why a member chooses to belong to your organization, a competing organization, or none at all.

    Developing a value proposition is a multi-step process that will aide in organizational planning and membership growth and loyalty. The outcome is a clear, direct claim that is relevant to your important audiences and represents what your association does well today. The written proposition is a statement that helps tell your story of relevance in a concise messaging platform that becomes the basis for all your association’s communications.

    What’s Your Problem?

    Early in the process, be clear about the reason why you need a value proposition in the first place. Some associations say they need one to unify their staff; others know how much they offer members but need a clear, simple way to articulate it. With the specific motivation for your work, you can keep your focus on the goal throughout the process.

    Leaders are increasingly seeing value propositions as the most meaningful step toward building and sustaining association membership. A well-researched and crafted proposition guides strategic planning, staff communications, and gives a purposeful approach to committee work.

    Recognizing your members’ needs first and then purposefully feeding those needs into your association’s strategic work can be a radical shift in thinking. This change in perspective can help organizations rethink how they plan, organize, and set goals.

    Invest in the Process

    A value-proposition project is not a simple one. Ideally it includes a task force composed of a diverse group of members who will devote a significant amount of time to the process. Task force members must clearly understand their role as well as the definition of a value proposition. The association’s executive director should be involved in facilitating board awareness before, during, and after the project.

    The most relevant value proposition projects begin with a member survey to uncover issues members worry most about, what members value, and how satisfied they are about the areas that are most important to them. Satisfaction with the wrong offerings is an unproductive way to run an association.

    The value proposition process requires investment. Whether you do it yourself or outsource it, you must invest manpower, energy, and money to develop the proposition and collateral to communicate it. Then it takes energy and focus to communicate and sustain your claims if you want to affect change.

    A Change in View

    A clear, concise value proposition will change the way your association approaches its business. A credible value proposition forces you to evaluate your services and communications with members with a benchmark that is set by them. It also pushes you to make internal decisions from the members’ point of view. This is a significant shift for many organizations and one that can create some meaningful dialog about current and new services. Are the services and activities that you offer today clearly ones that mean the most to your members? This can create conflict with programs that are sacred cows. Embrace the new view and overcome the conflict, and your value proposition will lead to stronger programs, more effective committee outcomes, and higher member satisfaction.

    Now is the time to begin this process so that you’ll have more members writing next year’s membership checks.

  • Association Member Engagement Mountain

    Association Member Engagement Mountain

    Written by Dan Varroney

     Dan at Potomac Consulting has hit this right on the head, we fully believe and recommend to clients that the engagement puzzle be solved so that true growth can be achieved that is sustainable and manageable, not just a quick promotional bump in the numbers. This shows why . . .

    It’s important that in this day and age that Associations not “leave well enough alone.” The Stay or Go Imperative could impact an Association’s financial health and well being. If membership is a distraction instead of ROI, Corporations vote with their feet and instead invest in a different solution.

    Yes,  Corporations have smaller corporate staff, in some instances one executive may wear multiple hats. However, if this executive makes the dues decision, then a strategy or a change is  necessary.

    Read the Tea Leaves

    Companies look for the connection to business objectives as part of their membership evaluation process. If these connections don’t exist, it’s difficult for any Association to execute an effective strategy to engage members. Metrics are like tea leaves they both paint a picture and they tell a story.

    If Associations observe that conference attendance is equal or less to prior years, educational meetings and fly-in attendance is significantly lower, and member retention is down for three consecutive years,  it is time for an intervention. The marketplace could also signal one or more of the following: 

    • Negative view of the culture and overall effectiveness of an Association.
    • The Association is perceived as not being as impactful in educational, policy or advocacy programs.
    • Other solutions including coalitions, conference providers or other Association programs deliver greater value.

    Never Hit The Panic Button

    Associations should embrace the challenge and convert the situation into a strategic opportunity. When diagnosing, member participation and revenue fall-off rebuild the path to engagement: one company at a time, obtain clarity on business and policy objectives, and understand what members really must achieve from participation achieve.

    CEO’s can keep in mind that success and failure are never final, the road forward offers hope, and a more definitive path to member engagement.

    Develop Data Driven Strategies

    Associations need to build a data set to help them understand why participation and revenues have fallen.  However, it’s key to put heavier weight on relationships; in a complex world the human connection matters. One member at a time, collect the following information:

    • Is the Association perceived as staff or member driven?
    • Does participation help executives achieve company business objectives?
    • Why do executives participate in other Associations or Coalitions?
    • How important is networking?
    • Would Social Media engagement on platforms such as LinkedIn reflect an attractive alternative?
    • Are educational and or certification programs relevant to career advancement?

    While Associations may develop additional or different questions, these open the door to constructive dialogue with disengaged members. Tally the responses, create internal task forces of senior managers and key staff, develop solutions and new strategies, assign performance metrics and then execute.

    Association Member Engagement Mountain

    For Association CEO’s who have or who are looking into the abyss, there is light at the end of the tunnel. An Association Executive confronting the worst dues loss in decades once reported record gains in member participation, advocacy effectiveness and revenue growth. Stepping back, building an Association wide member focus with data driven strategies proved to be a year long process worthy of the effort.

    Yes, the participation, retention and growth outcomes were record highs but the data really reflected stronger member connectivity.

    Climbing the Member Engagement Mountain is vital and necessary for every Association. It can also be the determining strategy helping Associations achieve revenue growth.

    How does your Association drive Member Engagement?

  • Customer Service is Still Your Best Marketing Weapon

    Customer Service is Still Your Best Marketing Weapon

    I’ve traveled all over the country for years for business and personal reasons, and have a Louis-Vuitton sized trunk full of travel nightmare stories as a result, most involving air travel, but not all. I have also had some wonderful experiences, largely due to the people I’ve met or interacted with along the way.

    Recently I was traveling for business and collected a huge, whale of a tale to add to my collection. I was going to Chicago for a meeting, landing in our favorite Midwestern hub airport, for just a few hours, and then intended to return home that afternoon, both on, notably enough, United airlines.

    Now, as a matter of full disclosure, I have traveled to Chicago on United for years, and have had only a handful of bad experiences, most were minor in nature. I’ve recently had friends and relatives traveling for pleasure take United and experienced horrific treatment, unconscionable delays, poor service and extended travails and battles with management. I can’t count those as part of my story-luggage, but I should have kept them in mind when booking this particular trip.

    I boarded at BWI, on time, with no significant incident (beyond being treated like a criminal by TSA, but that’s another story for another day). Flight arrived at O’Hare without incident, but promptly upon hitting the ground, the ordeal began. Apparently, FAA regulations (and I haven’t looked this up), prohibit planes from entering the ramp area if there is any lightning within five miles of the airport. This was news to me, having taxied and deplaned in some horrific storms in the past without incident or mishap, and having been on planes that were struck by lightning. Their feeling was that sitting on the pavement fifty feet away from the building was safe, but not fifty feet closer to the building. Is the pavement different?

    After 40 minutes of delay waiting for the lightning to move a little further away, we deplaned and I went on my way to my meeting.

    My return flight was scheduled to board at 7:48 PM that same day. At 1:46 PM I get an e-mail from United saying my flight was cancelled, and that I had been re-booked on a flight at 11:48. . . AM the following morning, that connected through Newark airport and would have me arriving at home at approximately 6:30 PM, nearly 20 hours after my initial arrival time! I had no room, no luggage, no anything for an overnight stay, including a charging cable for my phone. No one bothered to call and ask if this booking was satisfactory to me, or even possible!

    Rather than try to negotiate this issue through a swiftly expiring mobile device, I called my office and had someone book me on another, available, direct, one-way flight leaving at 9 PM that evening, but landing at DCA, 90 minutes away from my destination airport where my car was parked, at my own expense. I figured I could grab a light-rail train and get to the other airport and pick up my car, and drive home from there – total delay time roughly 5 hours – not a tragedy by any stretch, especially compared to waiting until the next day.

    I received a total of 8 e-mail messages from United, alerting me to delays, cancellations and re-bookings as the fluid situation changed, all caused by a little rain in the center of the country. In the end, my original flight had been cancelled and re-booked three times, and my arrival time had extended until 6 PM on Friday, for what was intended to be a quick two hour meeting and return the same afternoon. My one-way flight, when it eventually took off, left at 10:30 PM, got me to DCA at 2AM local time, and left me with an additional 90 minutes of driving to get home, arriving at roughly 4 AM, 23 hours after I had set off on my journey.

    The following day, I drove back to BWI to pick up my car, and stopped in to the terminal to try and untangle the thicket of cancellations, re-bookings and ticket changes. The ticket agent I spoke with had no power to take any action to refund or cancel my still existing flight, despite the obvious fact that I clearly wasn’t going to be on the flight from Chicago if I was standing in front of her in Baltimore! She called a supervisor of some sort, who after no less than 6 re-tellings, however inaccurate, of my story, agreed to refund my expense for the half of the original flight I wasn’t going to use. They refused to acknowledge any responsibility for the delay, the need to purchase an additional ticket, or to refund the price of the newly purchased ticket, any meals, or the two hotel rooms I had booked, based on their poor track record of flights actually leaving the airport that day, one of which got used by a colleague trying to do the same thing I was – get out of Chicago! No one seemed the least bit remorseful, apologetic or even willing to recognize that there had been a problem.

    Now the marketing moral of the story. If they had treated me like a person, disclosed information about the nature and duration of the problem, asked how I would have liked it handled, admitted that they had not fulfilled their end of the contract, or wanted in any way to treat me like a valued customer, I wouldn’t have written this, and then sent the link around the world, spreading the negative story globally for all potential flyers to see and read. Not only will my experience preclude me from flying on their airline again the foreseeable future, but I will tell this story to anyone who will listen and try and persuade them to do the same. I’m now a REVERSE EVANGELIST for their company, the exact opposite of what their corporate branding and marketing department has spent hundreds of millions of dollars to achieve. All it would have taken was one person from the company to send me a message saying, “we’re sorry you were inconvenienced, call this number and we’ll see what we can do to help you out.” For the lack of that sentiment, a customer, and possibly many others, was lost. For lack of customers, an airline was lost.

    Good luck, United.

  • Professional Membership Has Great Value for the Member and the Organization

    Professional Membership Has Great Value for the Member and the Organization

    The new revolution of Social Media and its marketing potential has been one of the most heavily written about topics in recent years. The success of Twitter, Facebook, LinkedIn and a host of others has been postulated to stem from a need for human interaction in an increasingly isolating world. Is it really a cure, or is it another contributor to that isolation?

    There are some obvious drawbacks to the use of social media, including the threat of loss of privacy; the anonymous and random nature of the “friend” phenomenon; and the fact that there are a huge number of valuable, brilliant people in the world who have no concept of these systems and don’t participate in them at all, and likely never will. They are too busy leading real, enriching, empowered lives outside the cyber realm, interacting with people face-to-face.

    Social media is more likely a ready replacement for the old-fashioned method of meeting new people, seeking out like individuals with common interests, traits, social circumstances and desires – networking events. Meetings, conferences, charities, and professional and business trade associations were the centers of the business and social universe. Members joined to meet new people, those of similar interest to their own. They were from similar backgrounds, similar socioeconomic circumstances, (mildly) similar income and often depending upon the type of organization, geographically similar. They were by definition, a group.

    Some groups are more social than others. Neighborhood associations, fraternal and community, civic organizations, like Optimists, Rotary Clubs, Shriners, Civitans, Elks Lodges, Oddfellows, Masons and such are often built around a charity or fundraising for a specific cause or issue, but are largely social in nature. Professional and trade associations are more businesslike, especially the latter, which has corporations as members, but uses individuals as volunteers. However there are strong social components, including an annual meeting, sometimes a secondary meeting focused on specific components of their industry, continuing education opportunities throughout the year, and of course committee work and volunteer projects to recruit new members, maintain dues and enrollment renewal, and other fundraising projects to keep the organization running and viable. One of the truly valuable benefits to belonging to such an organization is this social component, and the benefits are myriad.

    To form true business relationships, one must find familiarity and common ground. One way to do that is through such business-related organizations where some of the screening has already been done and the common interest is displayed up front. One such organization whose reason for being is to help promote this type of professional interaction is Sales and Marketing Executives International (SMEI). It is a 74-year-old international group with 10,000 members in 30 countries and throughout the United States, whose sole reason for joining is to meet other top business professionals in their sector and enhance their professional knowledge and standing. SMEI offers a certification program for Sales, one for Marketing, and a Management certificate, recognized internationally as a sign of professionalism and excellence. Meeting frequency and purpose varies by chapter, but all have a business relationship-forming function of some sort, based on five founding principles: Professional Standards and Identification, Continuing Education, Sharing Knowledge, Assist Students, Support the Free Enterprise System. Benefits of membership include professional recognition and respect, enlarged professional sphere of influence, strong professional network and enhanced community and professional outreach.

    Those benefits mirror many other organizations’ benefits, but few are stated so clearly and succinctly, and lived by the membership so obviously. Not only does the individual member benefit to a great degree from their participation, but the organization benefits from the aggregate efforts of professionals at this level, working on their projects in their “native” turf – sales and marketing. This is true of few organizations of this type – typically the officers are elected based on popularity first and competence second or beyond. They may have an accountant as treasurer if they’re lucky, or an attorney as President for a year or more, but that’s often the extent of it.

    Professional trade associations with professional staff’s who specialize in Association management are an entirely different animal. These organizations are typically well-run, offer great benefits to their corporate or individual members, the principal of which varies from group to group, but usually include some sort of government lobbying and public marketing for the industry, education of the industry, standards and practices for the industry, statistics for the industry, and occasionally innovation and regulation within the industry. The social component as an adjunct to those benefits comes in the form of an annual meeting, some sort of recognition for outstanding performance within the group or industry, a commercial exhibition of some sort, continuing education opportunities, and networking as a byproduct of all of the above.

    The most important thing you can do to build your personal and professional reputation is to be active in your own industry, and that means joining and most importantly engaging in activities sponsored and structured by your industry associations. Find a way to justify the value of your dues payment, and the easiest way to do that is to get involved – this is truly an environment where you reap what you sow. Join a committee, work your way onto the board, pick a project and give it some time, effort and commitment – new business and an expanded sphere of influence are the smallest possible returns, and those are valuable indeed.

    Based on these types of organizations, the electronic version doesn’t even come close to the power of a personally interacted business relationship. Human beings sense elements of each other’s personality through a number of different channels, including the interpretation of body language, clothing choice, vocal inflection and word choice. Interaction with others on a face-to-face basis is essential to forming fully informed business relationships. All that meta information is lost in the cyber realm, leaving you with just the filtered choices of text and images to work with when forming conclusions about this person’s character, intent and sincerity.

    The next time you’re filing your friends on Facebook, or counting your connections on LinkedIn, ask yourself if you’d associate personally or professionally with all of those people if it meant meeting them face-to-face in a professional or social situation. Would you invite them into your home, meet them at a local hotel for dinner, recommend them for a job, refer them to your banker or broker? If the answer to any of these is no, are they really productive, solid, reciprocal relationships that foster business, or are they more like artificially garnered acquaintances that know more about you than you might like?

    If you found this valuable and thought-provoking, don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes”

  • Are These 12 Roadblocks Stopping Your Valuable Trade Show Leads?

    Are These 12 Roadblocks Stopping Your Valuable Trade Show Leads?

    Scott Llewellen of TPS Displays Express put this together, and I thought you’d all enjoy these tips – they’re right on the money!

    Most trade show exhibitors put the vast majority of their effort into creating their presence at a trade show – the trade show displays they build, the staffers they send and house, and for some, the promotions they do to create greater activity in their booth space.

    Unfortunately, too many waste these valiant efforts, because they fall down on managing their trade show leads.  That’s because there are more hidden roadblocks than they realize, obstacles to getting the full value from their leads.

    So let’s bring those roadblocks out into the light.  I believe the list below includes the 12 most common obstacles to effective lead management – how many of these are issues do you need to address?

    1. Incomplete lead management process
    2. No single person responsible for the entire process
    3. No consultation with sales about what information needs to be gathered at the show
    4. No training of trade show booth staffers about what makes a qualified lead, how to record lead quality
    5. Qualifying information from leads is not captured with a lead card or a lead retrieval system
    6. If complete information is captured, it is not conveyed to the appropriate sales person after the show
    7. Slow, incomplete, or non-existent lead fulfillment
    8. No computer system or customer relationship management software in place to facilitate lead management
    9. Lead fulfillment packages not chosen nor prepared in advance
    10. Lead fulfillment is generic and does not respond specifically to what individual attendees asked about while visiting your trade show exhibit.
    11. No one pre-assigned to data enter and fulfill the large quantity of leads
    12. No accountability for sales people to follow up on leads within a specific, short period of time after the show

    Any of these sound familiar?  Fixing this will take a team effort, including your sales, marketing, and information technology teams.  Get them all in a room and work to knock down these obstacles. For motivation, bring to the meeting a pile of your latest trade show leads, a spreadsheet of the costs of your show, and the highest level exec you can get that these people all report to.

    Then you can work to avoid all 12 of these obstacles and create a smoother lead management process that gives your company the full potential value of your trade show leads.

  • Big Brands Use Big Data To Engage Customers

    Big Brands Use Big Data To Engage Customers

    Recent economic indicators describe a consumer climate that is different than virtually any in recent history, and consumer product and service businesses are having a tough time closing sales and encouraging sales traffic, both brick-and-mortar and online. This enforced stinginess on the part of consumers is wide-spread but not universal. Some products fly off the shelves and some companies are wildly profitable, while the majority seem to be pushing a rock uphill.

     

    Consumers are caught in a vicious cycle economically, have been since 2008. Profit is down on a per unit basis, write-downs and charge offs notwithstanding. Employment is down from knee-jerk reactive cost-cutting measures trying to stem the tide of red ink, the unemployed numbering in the many hundreds of thousands, and the underemployed doubling that. Equities in general have been stumbling along the bottom of the trough for the last two years, with a 3% growth number putting them back at break-even since before the crash. Spending is down, savings are flat, foreclosures are restarting their relentless march, debt is way too high, both consumer and governmental, and consumers are cautiously nervous.

    For retailers, this is the perfect storm of nightmares. Consumers are too scared to make those bigger purchases due to income uncertainty. Retailers won’t or can’t hire due to low margin, and can’t add jobs, reducing the unemployment numbers. Investors get lousy returns, and therefore can’t invest in riskier companies, so they can’t expand and add jobs. Consumers who have jobs are unsure they will keep them, but are doing the work of three and trying to keep their own head above water, cutting back on discretionary purchases. So, as a marketer, how do you break through the fear and engage consumers?

    In a word, “Trust”.

    If you scan the list of most profitable or growing consumer product corporations*[1], you’ll notice that they don’t have a common theme in terms of product offering, or price point or position in the marketplace, although they all tend to be number 1-4 in their category. The common thread among them won’t likely jump out at you from the list itself, but if you dig a little deeper, the theme becomes clear. These growing, smart, stable companies have been conservative in their growth plans, aggressive in defense and development of their brand, and firm believers in keeping their brand promise, leading to outstanding customer loyalty. They make products that people want and need no matter what their economic circumstances, and maintain loyalty through consistent quality assurance, product development speed and flexibility. In short, they give their customers what they want, and have done so long enough and consistently enough to have garnered long-term customer loyalty, and more importantly, trust.

    As marketers, we can’t often affect many of the attributes listed above that these firms have in common, but the few that we can, need to be the very best expression of the brand promise to establish that trust. We can’t affect QA directly, for instance, but we can certainly pitch the promotions to the correct consumer level and keep public perception on the right aspects of the product if QA is spotty or suspect. Product development is sometimes seen as Indian territory for the marketing department, but in these high-profit companies, our studies show that marketers are deeply involved in not only accumulating consumer data to feed product development, but provide assistance and expertise on consumer preferences, brand extension and alignment, and even assessing product features and elements, to be sure they meet consumer preference and demand. Perhaps this characteristic above all others may be the critical element in the continuing romance between these companies and their customers. In almost every case, companies that get the marketing staff involved early in the development process and have a defined process for creating, developing and launching new products are more nimble, responsive and profitable than those who simply launch and market products after the fact.

    That’s great for companies that create a range of new products regularly or update their flagship product routinely. But what about some of those firms who have been riding the same product year after year? How do they engage their customers and engender such loyalty to the brand?

    Many established and older brands that have let research and development languish, either through lack of resources or short-sighted thinking, find that they need to create or establish a new angle, a new application, a new extension of the existing product to create interest from new customers and renew interest from existing customers. Clorox might be an example of this, especially 10-15 years ago. Household bleach is a staple, has few innovations or moving parts, and aside from updating the package, and not much of that, it is basically unchanged since the 50s. Recently, they have innovated within the category, created new applications for the product and formed partnerships with other products to bundle or reinforce their products. Adding their product to other cleaning products gets the brand into households that might not welcome them otherwise, and sets or reinforces the expectation that bleach is an enhancer of cleanliness.

    Making the product “portable” in the form of a stain removing stick was a recent innovation that was launched in response to consumers’ increased mobility and need for instant gratification. Yet despite it’s age, Clorox continues to move off the shelves in predictable and growing fashion and avoid becoming a commodity, despite strong shots from competitors, generic versions manufactured overseas, and reduced profitability from price increases on raw materials and distribution challenges. A marketing team that can come up with a new angle for a 50+ year old product is a strong, flexible one indeed. What has kept them going is strong customer loyalty, and trust in the quality and integrity of the product to perform as advertised day in and day out over many years.

    But engaging customers doesn’t always mean product innovation, or even marketing innovation. Sometimes it has more to do with taking the appropriate approach based on customer’s expectations. One of the companies on this list, Harley Davidson, is a champion at delivering it’s message in the most appropriate medium for it’s audience’s digestion. But that hasn’t kept them from being innovative in order to engage the customer. Over a century old, Harley’s target customer is also getting older, and that demographic is populated by notoriously slow adopters of new technology. Harley does much of it’s marketing through the dealer channel and through event and sponsorship presence. They host rallies, rides, and other gatherings of product users through an extensive network of dealers and repair facilities coast-to-coast, and know their customer well. They have a huge array of licensed products and aggressively protect their brand in each of these arrangements, selecting only the highest quality materials, workmanship and designs to put their name on. This is one of the most traditional marketing models out there, and it still works very well. You would not expect them to have a huge online presence or use internet resources extensively to reach a 50+ age audience. Yet they have taken advantage of the social media phenomenon to help spread their message via word of mouth among their vast network of customers, creating Twitter accounts, a strong presence on Facebook with nearly 2 million friends. Other efforts include each dealer’s own FB page and own website, all of which have access to the manufacturer’s site, news, product info, dealer locator and more, plus license holder sites. All of this is used to promote new products, showcase product innovation, and get customer feedback, monitoring the electronic conversation and reacting quickly to customer input, engendering even greater loyalty and trust. It’s the message, not the medium that counts.

    Engaging customers also has to do with relevance. Being relevant to your customers may seem like everyone’s goal, and indeed it might be, but these profitable companies seem to have it innately present in their corporate DNA. These companies constantly seek ways to enrich their customers’ lives, and find new ways to be part of them. Coach, Inc., might be a good example of this. The luxury brand has innovated a number of approaches to meeting the needs of its niche market’s need for upscale handbags and accessories, leveraging their brand strength over a series of related products. If you purchase a Coach bag, with its famous lifetime warrantee, and it’s likely you’ll be informed about other Coach accessories, and often buy them, with the assurance that each product, either direct manufacture or licensed, will be made with the same level of care and quality, and at the same price point in the market. If you are a Coach-level consumer, you make it your business to show it, by buying the branded products that prove it. This elite, exclusive approach works very well for them, as it ramps up the relevance in their customer’s lives.

    As marketers, we have a huge volume of information and research data available to us regarding consumer trends, preferences, and behavior. It is up to us to responsibly use this data on OUR customers, to craft innovative, trustworthy, relevant outreach messaging to engage our customers to create brand trust, and drive sales and profits to where they need to be. Most of that trust and relevancy comes from the correct and appropriate use of that data to craft messaging that resonates with the target consumer. Transparency, honesty, relevance and trustworthiness are key to achieving these goals, and you can see the results of such activity reflected in the marketplace and the bottom line.

    If you found this insightful (or frightful) be sure to pick up your copy of “The Marketing Doctor’s Survival Notes”

    [1] List compiled by Seeking Alpha, copyright 2010
  • Google This: What It Means When A Brand Becomes A Verb

    Google This: What It Means When A Brand Becomes A Verb

    I thought readers would appreciate this – I’m as guilty as anyone of using these verbisms, especially being close to the inside at Xerox and a couple of the other larger brands in a couple of industries. Its interesting to see the differences in which one gets picked for this “honor” – we text and call people, and we phone people, we don’t iPhone them, no matter that they are the market leader. But when the telephone was not the only device that performed this function in the early days of communication technology, the telephone won the market and, became the generic term. Kleenex also experienced this as the dominant player in the disposable tissue market, but we still blow our noses or wipe up, we don’t “kleenex” our noses. No verbism, but still the market leader becomes the default term for the category.

    Good article, enjoy the read . . .

    By Mike Hoban

    TiVo. FedEx. Taser. Velcro. Superglue. Sometimes consumers latch onto a brand and make it a verb–the question is whether it helps or hurts a brand.

    We FaceTime and Skype but we generally don’t Facebook or YouTube. We Google but we don’t Bing (at least not yet). We Rollerblade but we don’t Slinky. In past years, we would Xerox but would never Polaroid. Why are some popular brands or products used as verbs in our everyday conversation and others not?

    It’s an interesting question and there are opposing sides in the business world about whether “verbifying” (which is a verbified word in itself) a brand or product is a good thing or not. On the one hand, the marketers tend to believe it’s the ultimate compliment and demonstrates a personal connection between consumer and brand. The intellectual property attorneys, on the other hand, usually contend that using a product or brand name this way risks what is termed “genericide,” (as Dave Barry used to say, “I’m not making this up…”) meaning losing the legal power of a trademark. Xerox, for example, for several years apparently ran a campaign with publishers asking them to not use the name “Xerox” as a verb when the generic term “photo copy” was the intended meaning. A much referenced 2009 New York Times article describes the opposing views.

    TiVo. FedEx. Taser. Velcro. Superglue. Sometimes we consumers just latch onto a dominant brand and verbify it with no mind or care about whether the company wants us to or not. But it’s not clear why this happens to some products but not to others, even if they have similar product characteristics. Why do many people use the verb “Photoshop” (a product by Adobe) to mean any type of digital image manipulation but we don’t use “Word” (a product by Microsoft) as a verb to mean any type of word processing?

    Technically, the etymologists refer to the practice of verbing as “anthimeria,” which means a functional shift or conversion of word use, and it’s not a new phenomenon. Shakespeare was a serial verber, for instance. It can be creative and clever but in the business world it is abused and can become buzzword-speak. We ballpark, we partner, we value-add, eyeball, fast track, leverage, and we green-light. And in meetings we flip chart. But the line must be drawn somewhere. People using “dialogue” as a verb, for instance, should be formally reprimanded and the use of “architect” as a verb should be grounds for termination.

    Oh, sorry about the little rant. We were talking about brands being verbified and perhaps the first brand to do that consciously as part of its marketing strategy is Simoniz, the car wax. Back in the 1920s or ’30s the company’s tagline was “Motorist wise, Simoniz” and posters and ads from that period would exhort car owners to “Simoniz Now!” Similarly, having grown up in Michigan in the 1960s and 1970s, we would routinely use the brand Ziebart as both a noun and a verb (“Did you Ziebart your new car yet?”) to refer to any car rustproofing process (there’s that genericide bugaboo again).

    Sometimes companies’ efforts to “verb up” their brands fail or fizzle. Back in the 1970s I recall a campaign by the grocery chain Kroger which featured a jingle that sang out “Let’s go Krogering, Krogering, Krogering…” Let’s just say that ad was soon retired. And Yahoo several years ago asked people “Do you Yahoo?” Yahoo no longer asks that question and seems to be content to remain a noun.

    Brand verbification. What do you think will be the next one to enter our everyday lexicon–and does it help or hurt a brand?

    –Mike Hoban is a management consultant in his day job and can be contacted at business-at-large@sbcglobal.net.

    For more insights like these, be sure to pick up your copy of “The Marketing Doctor’s Survival Notes”

    [Image: Flickr user Isolino Ferreira]
  • Consultants Offer Flexibility, Hands-Off Productivity

    Consultants Offer Flexibility, Hands-Off Productivity

    With staff sizes and budgets restricted or diminishing, and top executives up and down the ladder under pressure to do more with less each year, many savvy executives are seeking help among the seeming army of consultants of every stripe to get their companies on the profitability track. Are they finding success down that road?

    The idea of the consultant is ancient – Egyptian kings and pharaohs had “consultants” with specialized magical talents to advise them and point them in the right direction when governing the masses. King Tutankhamun had one of the greatest PR consultants ever seen, who told him that to the Egyptian people, big buildings mean big power, big statues mean big power – and Tut and other Pharaohs took this to heart and built the pyramids of Giza and other wonders of the ancient world.

    Consultants can be used for a variety of purposes, from adding moral support in difficult or uncomfortable political situations, to adding credibility to pet projects in communicating them to Boards or subordinates. The image of the unfamiliar man with the briefcase and the air of confidence in the boss’s office was born out of some particularly sticky board meetings in the 1960s by top executives at a large conglomerate who’s ideas were not being communicated effectively or credibly, and a CEO who’s head was on the block. Once the Board members heard the same message in a different way coming from the consultant, an expert in such matters, they approved the plan and the CEO was spared. The consultant in that case didn’t come up with the idea, he simply communicated it effectively and lent his credibility to the idea. This practice continues today with great success in companies and organizations across America. Communication by proxy can be used as an effective strategy if a number of conditions are met. One is that the idea or issue must have real merit on its own. A bad idea is a bad idea, no matter who presents it. Another condition is that the consultant be at least as credible as the staffer to the selected audience. He should be a known, or at least vetted, quantity, with the credentials to back it up. Once those two elements are in place, communication by proxy can be effective in getting new ideas implemented.

    Short Term Expertise

    Consultants have many other functions as well, and most departments within the organization can find a number of consultants that specialize in their particular areas of functionality to assist them. Sometimes consultants can simply be used as additional manpower, fill-ins for key employees on personal leave, plug-ins providing necessary functionality on short notice for the short term. These are not temps you can call in for a day or two while someone is out with the flu. They are highly-trained, experienced executives who have been in many different corporate situations and reached a level of comfort with the commonalities in procedures in their area between companies to be effective quickly. They are typically not used in situations where the term is shorter than a month, as the cost of lost opportunity for a stint that short drives the hourly rate beyond the return value. Expectations in this situation are relatively high, as the consultant is being asked to step into any number of situations already in place and under way, and gather sufficient information from internal sources to keep these projects moving forward effectively, in a very short period of time, but without injecting much of their own influence or changing the direction of the project. This is a tough gig, and successful consultants are to be highly prized and respected for this set of skills that make such performance not only possible but routine. When projects are critical, and the schedule is inflexible for any number of reasons, this may be a good option for mid-size to large organizations.

    “Special” Projects

    Some organizations use consultants as outboard manpower to plan and implement special projects outside the normal scope of the department or organization, or for projects that are of vital concern to the organization’s success but only come up rarely. Changing membership databases for a non-profit organization is a prime example of this type of consultant use. An IT or Association Consultant who has been through many such changeovers and data conversions can be an invaluable resource for such a critical undertaking that most organizations only face every few years. Hiring a consultant under such circumstances will expand and extend the organization’s scope of expertise for a short period, and take advantage of specialized knowledge that isn’t needed on a regular basis. The expense of the consultant is far outweighed by the savings gained by avoiding a misstep in the process and crippling your organization, however temporarily, while the problem is investigated and fixed. The consultant can prevent you from making a poor purchasing decision, and mitigates buyer’s remorse by making the correct match between user and product.

    [pullquote align=”left or right”]King Tutankhamun had one of the greatest PR consultants ever seen, who told him that to the Egyptian people, big buildings mean big power, big statues mean big power – and Tut and other Pharaohs took this to heart and built the pyramids of Giza and other wonders of the ancient world.[/pullquote]

    Sometimes that special project requires some specialized expertise in order to allow a “pet” project to be executed properly, and that expertise doesn’t exist in house. If time is a factor, and there’s no time for internal staff to develop that type or level of expertise, a consultant can be an excellent solution. The can work directly with your internal staff, provide the expertise necessary to move the project forward effectively, by-pass the internal chain of command and the inherent internal politics, and propel the project to a successful conclusion quickly and effectively.

    Guidelines

    There are some guidelines to keep in mind when using a consultant for this purpose.

    • When planning to include a consultant in the mix, be sure to make “room” for them both in the budget and in the schedule. There will be some initial ramp up, no matter how short, as they learn to work with the particular in-house players, and assess their individual capabilities. Leave a reasonable time for them to get acclimated and figure out who’s who in your organization.
    • Depending on the type of project, the consultant has been hired to provide expertise, advice and specialized services. This often requires change from the status quo, introduction of new ideas, and some assessment of the internal strengths and weaknesses on the team. Take the advice and ideas you’re given and make the most of it. Putting up roadblocks, creating obstacles, withholding information, and rejecting ideas out of hand are all a waste of time and money. You’ve hired him or her as an expert, treat them as such, and listen to them.
    • When planning to use a consultant, build into your plan sufficient staff time to manage the consultant, and the money in the budget to implement the ideas they introduce. You’ve hired an expert, but if you don’t leave room in the budget to put into practice the concepts they introduce, you’ve only done half the job. Even if you don’t keep the consultant in the picture during the implementation, you still need to fund the project sufficiently to be successful.

     

    Most good consultants in most fields have learned to work with a bare minimum of supervision or management. If you carefully outline the goals for the project, introduce them effectively to the internal staff, and provide the resources and the communication pathway for them to get accurate, unvarnished answers to questions quickly, they will take the ball and run with it. In order to keep them from veering too far from what you envision a success to be, some check-ins or milestones for approval should be built into the project schedule. That way you can adjust the course at critical junctures before they go too far off the map. Too many of these can erode the effectiveness of the consultant and doom the project, so avoid the temptation to micro manage. You had the foresight to hire them, now let them do their thing. Too few milestones can lead to some surprises, when the end of the project approaches and the final product is not what you envisioned and you don’t know why. A happy medium and a light touch usually lead to a successful outcome.

    [pullquote align=”left or right”]When planning to use a consultant, build into your plan sufficient staff time to manage the consultant, and the money in the budget to implement the ideas they introduce.[/pullquote]

     

     

    Finances

    The financial arrangements for consultants vary to some degree, depending upon the industry, the scope and duration of the project, and the nature of the organization. Many work on an hourly rate, which are standardized to some degree based on what the market will bear for the size of the projects, the area of expertise, the reputation of the consultant, and the geographic area. A Human Resources Consultant will likely charge a small company in Tennessee less per hour for a candidate search than a large company in New York City, and the company’s expectations and needs will likely differ as well. The rate can be negotiated up front, before the project starts, and the terms are often outlined in a binding legal contract. Most Boards insist on such a document in one form or another, to help provide the company some recourse and some protection for both parties should outcome turn out to be less than expected.

    Some consultants in certain industries work on a fixed project fee. This is negotiated up front as well, once the scope and extent of their involvement and the size of the project has been agreed upon. A contract is often required for this arrangement as well, with some contracts including an incentive bonus for successful or early completion or for staying under established budget guidelines. On rare occasion, a consultant will work on a contingency, similar to a tort or personal injury attorney. Especially in forensic financial work, collections, auditing, or tax work, these arrangements exist where the consultant’s fee or payment is tied either directly or indirectly to the money they are able to recover or save the company.

    No matter what the arrangement, no matter what the industry, selecting which consultant to work with is a critical step to a successful outcome. A recommendation from a colleague who has used someone for a similar project is a great start. Other sources include your local Chamber of Commerce, and industry-specific trade publication editors. The local College or University department most closely aligned with your industry is also a good source of “experts” in your selected field. Once you’ve gathered a few names, a brief phone interview is always a good idea. That alone can whittle the field down to two or three suitable candidates. Their availability, and responsiveness will give you an idea as to what they will be like to work with on your project, and you can prepare some industry specific questions to ask, to see how close to your industry and your project they are currently. Once these are complete, a personal interview is in order. This will give you an even better idea as to the character of your candidates and their capabilities. Each candidate should furnish a list of client references, and they should be rigorously checked before making a decision.

    Once a decision is made, financial arrangements can be made, and your project can begin.

    Consultants can be a vital part of your organization, expanding your capabilities, allowing you flexibility in staffing to meet short term needs, and let you take advantage of expertise beyond the level you are able to train in house. Used wisely and strategically, consultants can help you meet goals, complete new projects, grow your organization and function more efficiently and profitably.

    If you found this helpful or insightful and would like to read more, subscribe tot his blog today! Don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes”

     

  • How Do You Know It’s Time To Get Some Expert Help?

    How Do You Know It’s Time To Get Some Expert Help?

    Adding a senior employee can bring short-term costs but long-term gains. Here’s how to tell if the time is right for your business.

    When you’re the owner of a small business, knowing when to hire a senior employee isn’t always easy — but it is important. By freeing you to focus on high-value activities where you have true expertise, it can help you take your company to the next stage of growth or, in some cases, simply ensure its continued viability.

    “Entrepreneurs are accustomed to hiring ancillary employees and pawning off smaller tasks on them,” observes Dave Poulos, chief consultant at Granite Partners LLC in Sparks, Maryland. “But at some point, they discover that they’re working their tails off and still can’t be everywhere they need to be or do everything they need to do. That’s when they need to make a high-level hire.”

    While cost can be an issue, Poulos says companies should consider how much they might be able to boost revenues with a new player on the management team. Ideally, it will more than cover the additional salary.

    Chuck Cohn, CEO of Varsity Tutors, a Washington, D.C.-based tutoring service, says that over the past several years he’s “fired” himself from various duties and brought in expert replacements to handle, among other things, bookkeeping, sales and advertising. “Each time it’s had a dramatic impact on how effectively that role is done, my happiness, and our ability to grow — because my time became available for higher-level projects,” he says.

    Wondering whether your company is a candidate for a high-level hire? Here are five signs it may be time to expand the executive suite:

    1. You’re working long hours but missing operational goals or revenue targets. Julie Sue Auslander, president and chief cultural officer at cSubs, a New Jersey-based provider of outsourced subscription services, says a bell tolled for her when she realized that she was doing “a lot of work” but never seemed to have any money.

    “I hired cheap, tried to do it all myself, hired multiple part-timers, and, as a result, missed out on growth opportunities,” she says. Taking a new tack, she outsourced payroll and brought in a bookkeeper who discovered that some invoices were being paid twice or in the wrong amount while some of her own clients weren’t being billed at all. “The revenue I realized from her correct work covered her salary,” she says. “In addition, offloading those activities freed me to do work that nobody else could, and in turn helped my company reach the Inc. 5000 list.”

    Auslander has since hired a part-time controller, which has helped her secure additional funding for her business, enter comfortably into strategic partnerships, and even plan an exit strategy for herself.

    2. Critical parts of your business are proving error-prone or inefficient, and you don’t know how to fix them. Eric Thomasian, head of business development and strategy for Blayze Inc., an online video company, says his firm knew it was time to hire a chief technology officer after its technology systems, which had been outsourced to a third-party developer, turned out to be bug-ridden and not true to their original design.

    “As soon as we made the hire, our CTO hired more coders to create an internal technical team,” Thomasian says. The results were impressive. Turnaround time on system changes rose by 800 percent, funding became more easily attainable because investors felt safer when they could actually meet the company’s technical team face-to-face, and customer satisfaction increased by 90 percent.

    3. Essential tasks are going unfinished. Brianna Sylver, president of Sylver Consulting, a business consultancy with offices in Chicago and Brazil, says she knew it was time to bring in high-level help when “we got into a situation where I needed to be able to duplicate myself in order to get everything done.” After documenting her specific pain points, she brought in a director of global insights and innovation in May 2011. “The results have been fantastic,” Sylver says. “She’s a great addition to the team in multiple ways and has helped us grow as a company.”

    4. Business initiatives yield poor results because you’re not an expert in that facet of your business. Brock Blake, co-founder and CEO of Lendio, an online service that helps small businesses find bank loans, says he decided to hire a vice president of marketing about a year ago after realizing that his own marketing initiatives weren’t helping the company meet its goals. “I wasn’t cut out for that job,” Blake concedes. “We were just going in circles.” After a three-month search, Blake found the right person to take the job, and the results, he says, have been phenomenal. “We’ve doubled in size, both in revenue and in our number of employees.”

    5. You’re continually telling customers you can’t meet their needs. “If your customers are constantly asking, ‘Do you have this?’ or ‘Can you do that?’ and the answer is always ‘No, because we don’t have time,’ you’re making a mistake,” Poulos says. One of the advantages of being a small business, he argues, is the ability to act quickly and nimbly to meet customer demand. “The answer to ‘Can we do?’ and ‘Do we make?’” he says, “should almost always be ‘yes.’”

    Making a high-level hire can be intimidating, especially if you’re accustomed to doing everything yourself. But it can also make you happier and more productive, and your business more profitable.

    For more like this to maximize your business growth curve, pick up your copy of “The Marketing Doctor’s Survival Notes”

     

  • E-Mail Drives Sales – Duh! HBR Tells The RIGHT Story of E-mail Marketing

    E-Mail Drives Sales – Duh! HBR Tells The RIGHT Story of E-mail Marketing

    Thought you’d find this of interest, so I reposted it in it’s entirety – sums up what I’ve been saying for several years!

    by Arthur Middleton Hughes  |   9:00 AM August 21, 2012

    In a business world obsessed with gaining more customer intelligence, you would think that email marketing would get more respect. But just look at media spending. According to eMarketer, this year U.S. companies are spending about $64 billion per year on TV, $34 billion on print ads, and $39 billion on Internet advertising. And how much are they are spending on email? For that, we have Forrester data: only about $1.5 billion.

    Of course, compared to other media, email messages are dirt cheap to send. With TV you are spending on ad agencies, creative studios, and cable channels. With print ads, you are helping to keep newspapers and magazines alive. Direct mail costs more than $600 per thousand pieces. With email, there are almost no costs at all. But its low cost only makes the argument stronger that email marketing is the most cost-effective advertising method available today.

    Certainly email beats the competition from a measurability standpoint. With TV you do not know who is watching your ads. Ditto with print. Even with direct mail, you cannot be sure that your mail has been delivered, or that anyone reads it when it gets there. With email, you know within 24 hours exactly which messages have been opened, by whom, what links the openers clicked on, and what part of your message was working.

    A properly structured email message provides this benefit to the marketer because it provides benefits to consumers. A TV, print, or direct mail ad is what it is. On email the ad is much more. Because of electronic links, those who open your emails can do their own research: they can explore and see any of the thousands of products that you sell. They can see the colors and sizes. They can, and they do, read ratings and reviews. They can put products in their shopping carts and buy them.

    “Fine,” say the TV folks, “but shopping cart sales through emails are seldom more than 5% of total sales. Nothing to write home about.”

    What these detractors seem to willfully ignore is that emails create impressions that lead to sales through other routes. Some of these routes can be tracked. The recipient can open it or delete it. If she opens it, she can click on it, perhaps buy something or print out a coupon and take it to a store. Finally, if she puts things in her cart but does not buy, you can send her an abandoned shopping cart email that usually yields 29% of lost sales.

    But note that, in many cases, she also does things that are hard to track. She can get in her car and drive to a mall to buy the product. She can pick up her phone and order it. She may be prompted to do research on Google for better prices of similar products, or discuss the offer with her spouse or a friend, leading to a possible purchase later. These are all the behaviors that provide the rationale for TV or print advertising. My point is that emails prompt the same kinds of behaviors. Thus, there is an off-email multiplier. For every purchase in an email shopping cart, we can fairly assume that there are some number of other non-tracked profitable purchases that occur because of the arrival of the email — a number that quantifies all the non-tracked behaviors that email recipients engage in.

    If you are going to make a case for investing more heavily in email marketing, you have to determine this off-email multiplier to account for all the sales your emails can be expected to generate. How can that be done? A retailer I’ve worked with which has 900 stores and is very active with email campaigns recently did a great study. It took a group of 105,000 customers in its loyalty club database, divided them into three groups of 35,000, and marketed to the three groups differently, as shown in the chart below (click to see a larger version). Thanks to the loyalty program, it was able to see all subsequent purchases by these customers.

    Direct mail has a higher response rate than email. But note that direct mail costs about 100 times as much. Meanwhile, the data collected by the retailer allowed it to calculate its off-email multiplier (a simple matter of dividing the percentage of online sales by the percentage of in-store sales generated by email-only marketing). It is 3.76. In other words, for every email shopping cart sale, this retailer gets 3.76 other, typically non-tracked sales due to the email.

    What might your off-email multiplier be? Zero is of course possible, but studies to date suggest that a number between two and three is typical.

    Once you factor in your off-email multiplier, it’s a very safe bet that email will beat all your other marketing methods in terms of return on investment. As email marketing gains more respect, marketing intelligence will meet customer intelligence. Don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes” to read more about e-mail Marketing effectiveness.