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Customer Relations – Selling Through Your Customers

September 25th, 2006

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.

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

September 10th, 2006

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.

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

September 5th, 2006

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.

How long do you want to be in business?

August 9th, 2006

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)Exemplifying 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 brash 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.

Fiskars: Cutting-Edge Customer Evangelism

August 2nd, 2006

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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