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Marketing, design, and technical resources for making your digital and print communications more effective.

How long do you want to be in business?

August 14th, 2012

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 social media.

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 through social media and  mobile devices.

So what’s the average business to do? Fight the trend?  Stick to the old ways that have worked (or at least kept one’s head 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 and embrace the paradigm shifts of customer facing social media and mobile marketing platforms will cease to exist, sooner or later within the 21st century. For context to my position please see our perfect storm analogy.

As we continue to progress this new era, 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.  Here’s a list of the world’s oldest companies for those interested.

The Customer Evangelism Manifesto | Review

April 11th, 2012

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

Customer Level Marketing – Investing in the Bottom Up

April 27th, 2007

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.

Focus On Your Customer, Not Your Product

March 16th, 2007

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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