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.

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.

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.

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!

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.

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.

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.

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 fund raising 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…

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.

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.