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Monday, June 04, 2007

The Mac is Back: Apple's customers make it a major player again

Mac ads

Apple's current ad campaign

For those of you who know me best, you're already familiar with my incessant evangelism regarding Apple's Macintosh. For those of you who don't know me that well, just keep reading this blog. But for all my biased chest-beating, even the most anti-Apple critic has to acknowledge the recent strides the Mac has made in the marketplace. First off, Apple increased its earnings 88% last quarter, the company’s stock/equity portfolio is higher than it’s ever been, and well known icons within the PC industry are in the process of making “the switch.”

So how does Apple leverage their success? Simply buy understanding the consumer and building stylistic products suited to their needs. Steve Jobs and his engineers and marketers strive toward building and communicating value to those who believe there has to be more to computing than blue screens, random shut-downs, and indistinguishable error messages. Not to mention, Apple has developed a reputation for taking care of its customers, providing the industry's highest standard in design, all the while building quality products that put the competition to shame.

The point I'm trying to make here is that Apple is successfully de-commoditizing itself within the computing market by establishing itself as a leader in consumer satisfaction. It's one thing for a company to claim it’s good at pleasing customers, it's another thing when the customers are saying it themselves. While Dell is struggling to right itself by opening low-price channels through Wal-Mart, Apple is creating the undercurrent for a consumer revolution that will only help to break the Microsoft hegemony within the market.

In conclusion, Apple has proven that organizations are able to operate with substantial margins within a commoditized industry. If your business is struggling to find it self within a competitive, dog-eat-dog market, remember to follow Apple's example in focusing on your customer's needs. After all, customers are the most selfish people on the planet; they only care about what your product, service, or brand means to them. Apple understands this principal, as do most profitable businesses.

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Friday, April 20, 2007

Customer Level Marketing - Investing in the Bottom Up

Earlier this week, I was engaged in a discussion with a colleague on the way corporations tend to invest their capital. The amount of wasted dollars thrown toward executive pet projects, productivity initiatives, cubical redeployments, senseless non-strategic advertising, and other non-sales generating expenditures is simply mind-boggling. It truly makes me wonder how many companies have ever taken the time to consider what the results would be if they were to redirect a portion of their SG&A expenditure to improving customer relations.

Okay, you're probably asking "what the heck does Erik mean by customer relations?" To be honest, I've never worked with or for a company that has ever concentrated their resources at the customer-level of the organization; every company I know concentrates most of their salaries, bonuses, amenities, perks, and other resources at the corporate executive level. Think about it, how many large organizations pay their frontline employees, namely those who interact and serve the customer, more than keyboard jockey managers back at the office?

I remember the first time I was introduced to this concept during my undergraduate studies over in Finland. My marketing professor asked us to read a phenomenal book by Jan Carlzon titled Moments of Truth. Through the book, Carlzon focuses on his stint as CEO of Scandinavian Airlines (SAS), where he is widely renowned for resurrecting what should have been a dead dog company. The SAS Carlzon took over was destined for insolvency, yet his progressive approach to turning the organization upside down literally saved the company and made it a world force in airline transportation. His strategy was simple: slash resources and expenses at the top and invest heavily in the bottom. Within a matter of months, SAS drastically reduced corporate headcount, frivolous spending (such as corporate-level perks), and useless overhead all the while investing in customer service training, customer-focused sales strategies (in regards to ticketing, seating arrangements, and travel packages), employee bonuses based on customer satisfaction, and salary increases for frontline personnel.

Along with the reallocation of resources, SAS initiated a policy wherein all corporate-level employees were required to work at the frontline level for a designated period of time so as to gain an intimate appreciation for the ticket counter representatives and stewards/stewardesses and the customers they served. Furthermore, SAS adapted a progressive policy of promoting high-performing frontline personnel to strategic positions within the organization so as to help consult other service-oriented personnel with customer-relations. Despite the temporary moral downswing at the corporate level, the frontline employee moral shot through the roof as opportunities opened up for incentive pay and promotions. Guess who reaped the benefits of motivated frontline personnel ... yep, the customer.

So as to not give too much away, I do encourage you to read Carlzon's book and contemplate his advice on marketing to your customers through your frontline employees. In addition to the frontline, bottom-up approach, Carlzon provides great strategic insight to managing a successful firm. Here’s a link to purchase Moments of Truth through Amazon: Moments of Truth

To conclude, it would be well worth your time to consider how your organization could reallocate its resources to building a stronger relationship with your customers. It might be time to consider how to incentivize those who deal with your customers the most.

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Friday, March 16, 2007

Focus On Your Customer, Not Your Product

I'm in the process of designing a PowerPoint presentation for a major technology firm, it's entertaining to discover how the company's engineers are fixated on describing every little detail about a product. To begin my design process, I researched some internally developed presentations built by the engineers so as to gain an understanding of the product virtues ... let me just say the slides had more flying bullets than a war zone. These presentations were product-orientated smorgasbord of technical diarrhea.

Although I like to rag on engineers and their linear approach to life, companies often fall into the same mistake of focusing on product rather than market value, on top of over-messaging attributes rather than building a brand by emotionally captivating the customer by relating a solution to their need.

As Doug and I continue to learn and grow with our business, we're finding out that the customer doesn't care about how big, fancy, and powerful our product is, they only want to hear what we can do for them in terms of making their life better. Unfortunately, I've learned the hard way that my audience doesn't have the time or interest in learning why I'm so great. And who could blame them? Their lives are complicated and busy, they want to cut to the chase so I better be ready with a strong, precise message that is emotionally appealing, easy to understand, and beneficial in terms of solving a problem or issue.

Going back to the technical engineers, I'll be ingrained in a lengthy battle to shape these presentations into concise messages that actually mean something to the customer. My job is simply to communicate the three pillars customers look for in why they should consider a product; namely that it is available, easy, and affordable.

P.S. One last tip ... avoid talking above your customers' heads and boring them by using vague and uncommon terminology, your attempt to look smart will probably lose you the deal. Trust me, I’ve learned this the hard way.

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Friday, March 02, 2007

Epi's Basque Restaurant in Meridian, Idaho

If you have ever eaten at Epi's Basque Restaurant in Meridian, Idaho, I'm sure you'll agree with me that the experience is like none other. The food, ambiance, and service may be down home and arguably "unsophisticated," but the charm and simple elegance of the friendly staff in combination with delicious Pyrenees-style cuisine are enough for me to make the 40-minute trek out to suburban Meridian.

As a native to the Treasure Valley, I have grown up surrounded by the Basque culture so Epi's appeals to me from an emotional, nostalgic standpoint. However, Epi's offers those unfamiliar with Basque culture and cuisine a fantastic venue to try exotic entrees of fish, mutton, beef, and pork along with a large selection of complementary wines that will certainly keep the curious and adventurous giddy with culinary excitement. Oh yeah, no Basque meal is complete without a generous appetizer serving of fried croquettes, absolutely delightful!

Although I'd love to continue on in regards to the wonderful attributes of Epi's food, I'd like to devote the remainder of this post to how the restaurant thrives without having to advertise on television, radio, or print media.

In this day and age, just about everyone knows about word-of-mouth, referral, and guerilla marketing ... but what so few achieve to comprehend is the fuel that drives these concepts. Although I could exercise my theoretical MBA brain and rattle off a litany of fancy words to impress you as to how Epi's is conquering the universe through a 15-step approach, I will spare you the pain and narrow it down to these three simple principals:

1) Hard Work – Epi's staff, from owner to line cook, go the extra mile to ensure the customer enjoys the ultimate Basque dining experience. This is accomplished by serving top quality food, complimented by outstanding staff members who bend over backwards to make sure you're happy. On a side note, the restaurant is spotless in the sanitary department, which scores points with the wife.

2) Being Different – As I mentioned earlier, there is no dining experience quite like Epi's. Not only is the customer treated to a unique and tasty menu, but the ambiance of the venue can only be described as comfortable and inviting. The facility and décor rush you back to a different Idaho era that existed long before Flying-Wyes, Cheesecake Factories, and sky-rise condominium projects. Without a doubt, Epi's has become a one-of-a-kind Idaho establishment.

3) Making Meaning – Along with being different, it's easy to tell within minutes of entering the establishment that owners, Chris Ansotegui and Gina Urquidi, sisters by the way, truly desire the opportunity to serve you not as a customer, but as a family member or a close friend. Entering Epi's is like going back to your grandmother's home where she always had that wonderful food prepared on the table, waiting there just the way you liked it. It's not uncommon to be waited on by either Ansotequi or Urquidi, and if you're blessed to meet their acquaintance, you will be treated to an evening you won't soon forget.

It is my best estimation that Epi’s has established itself as a successful restaurant simply by employing these three principals; which in turn fuel customer loyalty and testimonial activity like this blog. Over the past six years, I would guess that I've referred at least 50 people to Epi's as a premier Boise-area eatery. I know I'm not alone in this referral effort, as it is a good idea to call ahead and/or make reservations to secure a table before driving to downtown Meridian.

In conclusion, Epi's has succeeded where so many have failed and they haven't had to rely on gimmicks, promotions, advertising, or compromise to do so. As business owners, we must continually strive to work hard, differentiate, and make meaning so as to build a fortress around the heart of our customers. If you own a startup or a small to medium sized business, please take these principals to heart ... and don't forget to try the croquettes!

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Tuesday, January 02, 2007

Congratulations Boise State!

BSU, Hollywood aint got nothing on you. Surreal is a word that probably gets overused, but there's nothing else that comes close to describing the iconic American-dream spectacle that BSU put on for us in their defeat of the Oklahoma Sooners in the Fiesta Bowl last night. Action, suspense, horror, and drama...it had it all—and then some. They say that truth is stranger than fiction, in the case of the Fiesta Bowl truth is exponentially more exhilarating than any screenplay that could ever be imagined.

If for some reason you missed the Fiesta bowl, stop what your doing and take a look at the amazing highlights of this game. Whether you're a football fan or not has no relevance. If you've got a pulse, just a brief skim of the highlights will be guaranteed to quicken it. Here are few quotes from the sports world to give you a flavor:

"It'll go down as one of the best college football games in history...an instant classic" - FOX News

"...it gives the game a legitimate case for being considered the greatest game of all-time … not just the greatest bowl game. As far as sheer excitement goes, it's hard to vote against it. And 20 years from now this could be seen as one of the most important games ever..." »Read full article Pete Fiutak, CollegeFootballNews.com

"How do you sum up one of the most remarkable endings any of us will ever be fortunate enough to see? How do you sum up one of the most exciting bowl games ever contested? And how do you sum up what will one day be viewed as one of the most significant moments in the history of college football?" »Read full article - Stewart Mandel, Sports Illustrated

"...a dizzying, riveting, back-and-forth game that will be remembered as one of the most exciting in college football history." »Read full article - Pete Thamel, New York Times

"At the end of a game unlike any college football has ever witnessed, two of the great female icons in American culture staged a harmonic, hypnotic, borderline hallucinogenic convergence. Boise State introduced Cinderella to Lady Liberty." »Read full article -Pat Forde, ESPN

So what does Boise State winning the Fiesta Bowl against Oklahoma, a revered bastion of college football, have to do with marketing? Plenty, but I'll let RisingLine principal, and BSU fan extraordinaire, Erik Warilia comment on that when he returns from Phoenix later this week. Until then, let me just say thank you Broncos for one of the most inspiring demonstrations of dedication and passion that have ever been seen in the history of sports.

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Thursday, December 14, 2006

Real Word of Mouth Marketing

The Washington Post reported Tuesday about the FTC's ruling to "Unmask Word-of-Mouth Marketing." The FTC is on target in my opinion. But the implication that the scams mentioned in the article are somehow representative of word-of-mouth marketing (WOMM) is misleading. The very premise and power behind WOMM is that it's unbiased and credible. We all know that the traditional advertising spin is often quite the opposite.

As the FTC's ruling highlights, we're still going to deal with a segment of society that tries to beat the system. Old marketing habits may die hard, but they won't last long in this new era of open consumer communication that's been enabled largely from technology like blogs. Sony Ericsson, for example, may fool a few people with their shills but they will never build a significant customer-led marketing campaign with such gimmicks. The average consumer can communicate too well now.

Idaho businesses should by no means shy away from WOMM because of this misconstrued portrayal. Like the other WOMM advocates in the Treasure Valley, RisingLine promotes marketing strategies for organizations that have proven themselves by already developing a contingency of legitimate client advocates. We prefer to use the term customer evangelist to describe WOMM because it emphasizes the element of unsolicited motivation to share a good experience with a friend or acquaintance. A completely different concept than the shenanigans the FTC has associated with WOMM.

The important thing to understand is that true WOMM is simply encouraging honest referrals from friend to friend and it remains the most credible and cost effective means of promotion for any business or product.

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Thursday, November 30, 2006

Nokia makes the right call with new media

Here's a great interview of the marketing VP at Nokia that provides credible evidence to the bright future of new media and word of mouth marketing. Not only does this interview shed light on the huge potential power that new media offers, it also stresses that in order to utilize such grassroots efforts, a company has to offer real quality, otherwise the whole effort will backfire. This is one of the beautiful things for all of us about this new era of customer led marketing.

While new media is exciting, we here at RisingLine feel it's important not to lose balance and forget that other marketing channels still have an important role to play. It's encouraging to see that a progressive company like Nokia feels the same. It seems there are a lot of advertising agencies that totally discredit new media and grassroots marketing and the few grassroots marketing firms out there can lean to the extreme in their admonition to ditch advertising completely. While the answer as to the advertising/grassroots mix will be different for every business, as a general principle each business needs to plan their comprehensive marketing strategy with careful consideration of both.

To get you started on some fresh multichannel marketing strategy, check out the latest issue of Practical Ecommerce.

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Wednesday, November 22, 2006

Boise State Broncos and Grassroots Marketing

About a year ago, a handful of rabid Boise State fans, myself included, came together to help our beloved Broncos expand the athletic program via a grassroots effort. The idea originated from the perspective that the university seemed to be reaching out only to white-collar executive types for fundraising and support while the blue-collar average joe fan, like me, was being ignored.

Our committee was formed via an online message board at BroncoCountry.com, a site mainly for the hardcore blue-blooded fan, mainly with the aim to help the athletic department raise funds to expand Bronco Stadium. In our first couple of sessions, we tried to formulate a plan to approach the university to demonstrate 1) we had a legitimate aim to assist rather than scam them, 2) that we were organized and motivated, 3) our innovative ideas for fund raising, and 4) that we were willing to play within their rules.

After about 4 weeks, our group was able to schedule a meeting with the Bronco Athletic Association and the Bronco Athletic Department and we were absolutely blown away by how well our ideas were received. As it turns out, the officials were trying to build an existing electronic funds transfer program (EFT) called HorsePower that was created with the sole purpose of allowing individuals to contribute small funds on a monthly basis to help with summer scholarships for student athletes, facilities maintenance, equipment purchases, Title IX compliance, and other issues pertaining to Bronco Athletics.

After a very productive initial meeting, our small group reconvened and came back with an official agenda and Boise State gave us the green light to head up the promotion of the HorsePower program. The win-win for both sides is that Boise State could now focus their dedicated internal fundraising efforts on corporate sponsorships while HorsePower would be marketed toward the face painted, blue-collar, end zone seated fanatic who would be thrilled to contribute 10 to 20 hard earned bucks per week to his/her beloved Broncos.

Currently, we’re preparing to develop a brochure to distribute at local retail establishments within the greater Boise area. In addition, our committee will propose a referral program for HorsePower and other incentive packages to encourage participation in the EFT program. Also, if you’re a Bronco fan living in Boise, please be sure to ask your local retailer if they have any information on the HorsePower program and if they say no, ask them to contact me for more information – Email Erik.

In all, I am thrilled that Boise State took a chance with our small group of non-university affiliated fans. Since the program is still in its infancy, our grassroots efforts are tough to measure. However, this example should provide a great case study for institutions looking to mobilize a ground level group of advocates.

To conclude, I have personally witnessed the results of grassroots marketing and I'm more than confident the HorsePower program will become a resounding fundraising success. If your company is struggling with creating brand appeal and fostering growth, perhaps it's time to explore your existing core of advocate customers. Our small group of Bronco fans congregated via an online forum, imagine if your passionate customers could do the same...

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Monday, November 06, 2006

The Way to Blog - Annie's Homegrown

As I continue to peruse the Internet for great blogs, I came across one today which in my opinion epitomizes a successful blogging strategy. Annie's Homegrown products is promoted by Bernie's Blog, a social advocate Web site that is specifically targeted toward an emotionally engaged audience of progressive liberal folks. As a fairly conservative guy, I may not agree with the content on the site, but I can certainly appreciate the way this organization has used a polarizing approach in order to appeal to folks that are interested in their products.

For those of you who have read my blogs on a regular basis, you probably have noticed that one of my pet peeves is a blog which has nothing to do with the customer or their interests. The quickest way to alienate a reader is to write about things that don't interest them ... things like your corporate picnic or your strategic initiative for the year. Please understand, the actual subject matter is irrelevant, but customer interest is key.

Going back to Bernie's blog, pay attention to the content and it's easy to see how the writer(s) has masterfully leveraged connecting the product to the emotional sensitivities of their target audience. I would venture to say that in 8 of 10 cases, the typical Annie's shopper relates to this content and most likely visits the site on a regular basis.

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Monday, September 25, 2006

Customer Relations - Selling Through Your Customers

As a marketing consultant, I often get caught up in the theoretical realm of academia and lose sight of tailoring my unique value proposition to actively engage with my target audience. You see, there I go again ... what I mean to say is I shouldn't use big fancy words to impress my customers just to make myself look smart. More importantly, I need to build relationships with my customers by speaking their language and providing them with services they truly need and value. If I can accomplish this feat, I will not only gain a loyal customer, but I'll also gain a volunteer sales representative.

For the past two years, I've conducted a fair amount of research on marketing trends and I've noticed a lot of buzzwords have been created by consultants like myself to describe a very straightforward marketing truth that has existed for millenniums; namely selling goods and services through existing customers.

Call it customer evangelism, viral marketing, strategic referral program, grassroots marketing, or whatever; the main point is that successful businesses are built upon customers. Whether an organization focuses on business-to-business or business-to-consumer markets, a strong buyer-seller relationship is key to staying in business.

As I look back over my career, I recall having the mindset of using technical or academic language in an attempt to wow my audience by "educating them" and by utilizing gimmicks or creativity to gain their attention and to create top of mind awareness. What I failed to understand is that my audience didn’t care about how smart I or my firm was, what they wanted to know is what my company could do for them; and the dilemma was that my audience didn't want to hear this from me or my advertising. They in fact wanted to know what others who had tried my service had to say.

Whether buyers are looking into finding a logistical consultant to assist in setting up a global distribution channel or simply seeking the best golf course in town, they're likely to turn to their peers and/or business associates for advice. As a consumer, I often find myself asking a friend or colleague, "So what’s your opinion on ... " The answer I receive will undoubtedly play a role in my purchasing decision one way or another.

My opinion on this matter is supported by overwhelming statistical evidence that demonstrates people are making purchasing decisions off of referrals and testimonials. For instance, 83% of consumers base their purchasing decisions off of referrals when choosing a restaurant. The numbers are similar for prescription drugs (71%), hotels (63%), cars (58%), computers (40%), and financial services (57%). Without further researching the matter, I would strongly content that successful companies within those industries have a strong customer relations policy. One example, Apple Computers, has again received the highest rating on customer satisfaction by scoring an 83% score in the American Customer Satisfaction Index. Now you know why we Apple freaks are so adamant about our machines.

So how do companies like yours use customers to sell goods and services? I hate to be master of the obvious, but you simply take good care of them by going the extra mile to make sure they’re happy. No, I'm not talking about giving stuff away or incurring a loss as a set-in-stone customer satisfaction policy, but simply assuring that your customer is happy with your performance by the end of the day. Now as a former sales manager, I know that some customer demands are unreasonable, but it's always important to demonstrate to the client that your organization has their best interests in mind. Not wanting to expend too much effort on this matter, I'll simply say that the best policy is to put yourself into your customers' shoes and empathize with their position. When you do this, you have a much better chance at gaining their respect and understanding.

In conclusion, I simply advise to go beyond expectations in satisfying your customer. Don't view this ideal as a reactive crisis response, but utilize it in a proactive manner so as to add value to your product or service. The last thing you want your customer to say to others is "I didn't get what I paid for" or "the burger sure didn’t look like the picture." If you bring value to your customers by going the distance for them, they'll gladly pay a fair market price for your services in the long run.

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Sunday, September 10, 2006

Southwest Airlines - You're Free to Blog About the Country

I know that Southwest Airlines isn't for everyone, especially those who love to be pampered by high dollar airline perks like microwaved frozen chicken and stale rice served in an aluminum box complete with plastic utensils. As for me, I'm perfectly fine with honey-roasted peanuts complemented by an ice cold ginger ale ... and that's why Southwest.com is typically the first Web site I frequent when preparing a domestic flight itinerary.

Okay, some of you who frequent this blog are probably thinking I'm a hypocrite because I'm promoting a company that could easily be described as the Wal Mart of the airline industry due to their commoditized approach. However, I'd argue that Southwest is a different type of company than a commoditized retailer such as Wal Mart in the fact that value is provided to me personally through customized services such as SWAvacations.com and a frequent flyer program that even a traveling novice like me can understand. To top everything off, as a valued customer, I've been asked by Southwest Airlines to engage with the company through their blog.

Although BlogSouthwest.com started out as a simple extension of the company's marketing rhetoric, the content has improved dramatically over the past few months. Brian Lusk and the crew have started to focus the stories on the emotions of their customer base. In fact, of all the corporate blogs that I've visited, I'd have to say Southwest's is the best in terms of capturing my emotions through docuvideos on subjects covering post September 11th traveling fears to eloquently describing cool vacations ideas in places like Seattle. Whether in a positive or negative sense, travel is an emotional subject for most people, and Southwest has done a terrific job at understanding issues that travelers face.

Please visit Southwest's blog site and let me know if you agree.

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Tuesday, September 05, 2006

Apple Isn't Really Blogging - Mac Users Want Steve Jobs to Blog!

For all of my love and devotion to the Apple brand, it bewilders me that the company isn't blogging effectively and is even being shown up by the enemy who has created and pro actively maintains a phenomenal Mac-centric blog. Oh sure, there's been a few feeble attempts like the .mac blog, but it's pretty much ignored because it's simply a forum to talk about product features and violates some of the basic essentials to building an effective blog. How could it be that an organization that prides itself on being at the forefront of quality customer-centric technology has been beaten at its own game? Great question.

To provide a little background, I've been a Mac user for 5 years now and I initially made the switch because I was forced to through my job. In fact, I once thought of Mac users as strange professor types that lived in virtual compounds and spoke weird utterances common to cults. Begrudgingly, I began to use my desktop G4 and it wasn't long before I came to realize the value of the product ... it actually was performing at a quality level as testified by all those whacko Apple heads.

Lo and behold, 5 years later I'm typing away on my PowerBook G4 and dreaming about my future upgrade to a MacBookPro while at the same time scheming how to get my business partner, friends, family, and acquaintances to make the switch. Yeah, I've gone out on a limb by trying to reveal to them how they're actually living under the blue screen bondage of a beast that sucks the creative lobe right out of their brains. However, I have to confess that approach has been met with less than desirable results.

So as I sit here musing, I can't help but wonder if the dynamic and charismatic figure who started my little Mac cult would be more effective than me in swaying popular opinion by addressing the blogosphere in a way similar to how he approaches the WWDC. If there is anyone who can sell Apple, it's our man Steve, I'm sure the guy even convinced Bill Gates to buy an iPod the last time they got together to discuss compatibility issues.

Along with opening the value discussion up to the PC slaves ... err, users, through blogging, Mac evangelists would also love to hear what Steve Jobs has to say in regards to the future of the company as well as trends and developments that effect the industry. I for one desire to hear directly from Jobs on issues relating to Leopard, the rumored wireless iPod, and future compatibility/integration developments with the Intel processor.

It really surprises me how Steve Jobs is missing a grand opportunity to engage with Apple's loyal and evangelical customer base by choosing not to blog. The company obviously sees some potential in blogging technology since they've integrated it into the iLife suite. So why not use the technology and have Jobs or other Apple personalities, like Guy Kawasaki for example, to come online and lead the most powerful marketing force in the personal computer market today? – ahem, that being us Mac evangelists.

In conclusion, the energy Apple heads like myself expend toward selling the product to friends, family, and acquaintances should be harnessed and exploited by the company so as to further endure its customers to the brand while increasing market share by exposing the company to potential switch candidates through the blogosphere. In all, we evangelists want to hear from Apple execs and we'll do all we can to bring others on board as well.

If you're an Apple user or one of those other types like my PC partner Doug, please let me know whether agree or disagree with my premise.

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Wednesday, August 09, 2006

How long do you want to be in business?

How many business leaders plan on sacrificing so much of their life for a business that sticks around for a decade or two? Assuming the answer to this rhetorical question to be "few if any," then another question is begged: Why is the shelf life of most companies so short?

The best place to look is on the opposite end of the spectrum, to those companies who have created a legacy. I've been fascinated by this topic especially since recently becoming an adoring fan of Fiskars, a company founded in 1649 and on the cutting edge today of customer evangelism marketing utilizing new media (see last week's post). 

Weihenstephan Brewery

Founded 1040

So maybe a better question to ask is, "Why  are old companies are still around?" Starting with the extreme relics like Kongo Gumi, (the Japanese construction company who was in continual operation from the year 578 until January of 2006) there is a treasure of insight available that we can directly apply to the business environment today. I'm no business history expert, but I am smart enough to deduce that most of these companies are going to be found very strong in two important suits: 1)Exploiting environmental change, and 2)Exlemplifying the marketing concept.  Inversely we can deduce that most companies, the ones with short shelf lives, are probably vulnerable to environmental change and don't adequately embrace the marketing concept.

Here's what makes this topic so provocative todayas you may be aware we've just stepped into a period of radical revolution that will be destroying the status quo of how business interacts with society. The statistics are undeniable that this change is in full gear, for example take a look at this report posted today at Information Week

So what's the average business to do?  Fight the trend?  Stick to the old ways that have worked (or at least kept heads above water) and hope it all goes away? It all depends on how you answered the question of "How long do you want to be in business?"  My bold prediction is that companies, large and small, who do not undergo an extreme makeover, driven by the fanatical passion of its leaders, will cease to exist, sooner or later within the 21st century. For context to my position please see our perfect storm analogy

As we enter this new era of turbulent upheaval, it's a prudent tactic to take some time and study those organizations that have weathered and prospered from these storms of change time and time againa truly fascinating  and timely study.  I would love to hear the opinions of others on this topic, here's my invitation:

  1. Pick a company from this list of oldest companies from Wikipedia, or another that you're aware of. Let's say one that's been in business at least 50 years.
  2. Share your insight on why this company is still around.
  3. Have your article posted on this blog with credits and links to you.

Just email me or use our contact form.

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Wednesday, August 02, 2006

Fiskars: Cutting-Edge Customer Evangelism

I recently became aware of the inspiring story of Fiskars, you know, the company that makes the orange handled scissors.  When started learning about Fiskars I thought, "What marketing insight could be gleaned from a company that makes such a boring commodity?" I was soon to learn that it's the commonness of their product that makes the Fiskars story so inspiring. 

Imagine being handed the job as the marketing director for Fiskars--a successful international corporation with a legacy dating from 1649. You've been given the world wide marketing responsibility for....long pause....scissors.  I'm sure it's out there, but I can't imagine a product that would be more dull (not literally of course) and more resigned to the classification of "commodity pumped out of China for a few cents each."

Just for fun, here's part of the provocative description of scissors from Wikipedia:

Scissors are a tool used for cutting thin material which requires little force. They are used for cutting, for example, paper, cardboard, metal foil, thin plastic, food, cloth, rope and wire. They are also used for cutting hair and nails.

 So, given this bleak scenario what has Fiskars done? They've taken one of the toughest products imaginable and perfected the basic essences of marketing by:

  • Identifying the real need behind why their customers buy their product.
  • Branding themselves around those needs (not around their product).
  • Creating strong emotional bonds with their customers.
  • Creating an online community offering real extended value.
  • Embracing Customer Evangelism Marketing.

It's not necessary for me to explain Fiskars' near-perfect emotional branding, they've done such a great job it's apparent just by visiting their website

The story of Fiskars can be a big downer too. When I absorb the marketing masterpiece they've created out of such a ubiquitous product, it takes away all excuses for why any other product would be difficult to successfully differentiate. Almost anything, compared to scissors, would be better positioned to achieve marketing success. If you've been using that type of excuse, just imagine what the marketing leadership of Fiskars would do if they were at your company selling your product.

Fiskars deserves high honor for their leadership in quality consumer evangelism marketing, and for the inspiration they provide to the rest of us.

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Saturday, July 15, 2006

The Customer Evangelism Manifesto | Review

This article will change your life as a business person. It's a radical departure from the "conventional wisdom" of advertising and promotion, but like many great movements, its strength lies its simplicity and focus on core values. Customer Evangelism is the pure essence of marketing again. Remember, the definition of marketing that that we read in the first week of marketing 101? Something to the effect that marketing is defined as discovering and meeting the needs of your customers? It seems to have been promptly forgotten or defiled by many executives, product managers, and advertising firms upon graduation from business school. Customer Evangelism is a popular uprising that has the potential to bring marketing back to reality.

"The Customer Evangelism Manifesto" by Ben McConnell and Jackie Huba takes us to the core essence of marketing and beyond. It's about providing the highest quality solution and then providing even more to a special class of customer: the encouragement and empowerment to become an active advocate, or evangelist, and a de facto member of your organization. It's a charter to breed a special kind of super customer who not only purchases from you regularly, but feels compelled to tell others.

There is so much gold in this article, you've just got to read it, print it, share it, and forward it. If 50% of the businesses in the U.S. today were focused on creating customer evangelists our society would be radically changed for the better. (See how persuasive a customer evangelist appeal can be? How motivated would you be to read their article if you saw "Customer Evangelism Manifesto" advertised in a magazine?)

Here's just a teaser to get you started: some clues to how a customer evangelist behaves:

  • They passionately recommend your company to friends, neighbors and colleagues.
  • They believe in the company and its people.
  • They purchase your product as gifts.
  • They provide unsolicited praise and suggestions.
  • They forgive occasional dips in performance or quality.
  • They do not want to be bought; they extol your virtues freely.
  • They feel part of something bigger than themselves.

LinkRead or download the Customer Evangelism Manifesto

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