Archive for the ‘Business’ Category

Selling what your customers want v. what they need

Friday, June 19th, 2009

Content marketing guy Newt Barrett turns around conventional wisdom, suggesting that instead of working to develop a unique selling proposition, you develop a Unique Buying Proposition. This is more than a semantic turn. The UBP forces you to think like your customers. It changes the question from “Why should they buy from me?” to “Why do they WANT to buy from me?”

You can read Newt’s complete case here.

Be honest: Would you spend more time buying this...

Would you do a better job buying this...

In the meantime, I’ll add this thought on selling: People will spend more to buy something they want than something they need. The corollary is that they’ll do whatever they can to avoid buying what they need, whereas they enjoy buying things they want.

So even if you’re offering business-to-business products or services, there is a benefit to communicating in a way that helps people WANT to buy what you’re selling.

... or this?

... or this?

If they feel the product has value-added benefits, some kind of cache, or is exciting and transformative, they’ll buy more readily (and tend to be more pleased) than if they buy something because it has the lowest price or simply fills an urgent need.

That’s the beauty of Newt’s concept of the UBP: It helps your prospects to see your product as something they WANT to buy.

Most small biz doesn’t qualify leads or track marketing ROI. Surprised?

Monday, June 15th, 2009

In B2BOnline, Christopher Hosford reports on a study by the Sales Lead Management Association that indicates “nearly 63% of small-business marketers say they can’t track the return on investment of their marketing programs.” And 56% say they don’t qualify their leads before sending them to sales. SLMA observed the prevailing attitude among marketers that sales should qualify their own leads.

The survey was conducted online, B2B writes, and of the 140 respondents, all had fewer than 250 employees and three-quarters had fewer than 25. The conclusion of the study: these companies are allowing sales and marketing to operate independently of each other without aligning their objectives.

I’ve observed it myself at one industrial business after another over the past decade, when interviewing marketing teams as part of the media sales process. The vast majority will say that leads remain their primary metric for measuring the effectiveness of their work.

And yet, they will also admit to doing nothing with the leads because:

  • They aren’t very good;
  • Their distributors don’t follow up on them anyway;
  • There is no mechanism in place to qualify leads for sales.

What a cynical way to do a job: on one day demand that your media partners provide more leads to improve your ROI, and on the next day hide that “ROI” into the bottom drawer, pulling it out only when your boss comes around and asks, “What exactly do you do around here?”

It was just such a prospect who once told me, “I don’t think our marketing efforts are half bad.” Now armed with an actual benchmark, I could now reply to him, “Actually, they’re 63% bad.”

On the art of ‘followership’

Wednesday, June 10th, 2009


In his dependably brief and insightful blog, marketing guru Seth Godin writes about this video of a spontaneously developing community  at a dance festival: “My favorite part happens just before the first minute mark. That’s when guy #3 joins the group. Before him, it was just a crazy dancing guy and then maybe one other crazy guy. But it’s guy #3 who made it a movement.  Initiators are rare indeed, but it’s scary to be the leader. Guy #3 is rare too, but it’s a lot less scary and just as important. Guy #49 is irrelevant. No bravery points for being part of the mob.
“We need more guy #3s.”

There are lots of lessons you can take away from this. The one it most illustrates for me has to do with starting a business or launching a new product. More than once I’ve found myself dealing with a leading-edge product that I thought was brilliant. Too often, the response from the target market was, “Interesting. We’ll wait and see.”

The first copycat to come out with a similar product validates it, and makes it easier to sell. The next competitor helps flip the switch among customers from “wait and see” to “hurry up and buy.”

One’s an innovator; two’s competition; three’s a movement.

More than ever, the medium is the message

Thursday, June 4th, 2009

mcluhan-book

At the time, he was talking about the fast advent of TV. But if you want to see the truth of his statement in action, you’re already in the right place: online.

  • A message in Twitter is 140 characters long.
  • A message on 12seconds.tv is, well, 12 seconds long.
  • You get about 400 characters to express your thoughts on Facebook.
  • LinkedIn is businesslike; you can’t get as lost as you can on Facebook, and the variety of activities in more limited.
  • Squidoo lets you type in original content, but it’s really about packaging other content — yours or somebody else’s — under a single thematic umbrella.
  • A blog is unlimited, but is accepted as “good” only if it gets updated frequently.

There are at least dozens more kinds of electronic media where you can place your messages. I know people who market themselves online using all of the above media and more.  But if you want to get people to pay attention to what you’re writing, you can’t just cut and paste your blog post onto Facebook and Twitter and Squidoo, etc.

In some cases, there are limitations such Twitter’s infamous 140-character limit. In all, there is the simple and unarguable feedback from the market. If you do it right, people will pay attention. If you do it wrong, they won’t.

Doing it right means integrating strengths, weaknesses and peculiarities of the medium into whatever it is that you’re writing, videotaping, podcasting, etc. If you want to give a lecture, don’t bother putting it on YouTube unless you have strong visuals to go with it. And don’t simply post the transcript of your lecture as a blog if you want anyone to say anything nice about it.

Today, as newspapers face their toughest economic environment ever, they’re trying to figure out how to get people to pay for content online. When I ask people about this, the usual response is that they aren’t sure they’d find an electronic newspaper to be worth reading, let alone paying for.

But they’re imposing their view of newspapers as a print medium on the coming reality of newspapers online.

To be sure, some publishers will make a mess of it. They’ll try to do exactly what they’re doing now — but without the paper costs. And they’ll fail.

Others will figure it out. The paper of the future may provide headlines to your cellphone in the morning, with updates all day. On a Smartphone, the headlines may link to the full story. You may have the choice whether you want to get one section (world news, for instance) in-depth, and another (perhaps sports) on only a cursory basis. The website might offer configuration and search tools, letting you scan for all articles containing a specific keyword, or filter out stories from the opposite side of town. It could give you Tweets as news breaks, video clips of big events, or full context about ongoing, longterm stories. It may led you contribute news in the form of short video and photos. You might be able to read it on a Kindle, on screen or hear it through your ipod. And somewhere in there, they’ll figure out how to not only collect a critical mass of paid subscribers, they’ll also figure out how to serve advertisers.

In other words, newspapers will survive. But they won’t look like they do today, and they won’t DO what they do today either, because they’ll come to us not just through the same old medium, but through a Dagwood sandwich of media.

So McLuhan’s old saw really is more important than ever. When he wrote it, he was dealing with print, TV and radio. Today, because the medium is the message, it means the message changes many times a day depending on where you happen to be when you choose to accept it.

Dinosaurs alive and well in era of Web 3.0

Tuesday, June 2nd, 2009

In his blog on PBS.org, Mark Glaser writes about the recent Wall Street Journal D All Things Digital conference — a premium-priced conference for high flyers on, well, all things digital. Glaser’s blog post is an easy, breezy read with some ironic takeaways:

1. Live blogging was prohibited, he writes, because organizers feared it would create reason for more people to choose not to attend.

2. Video-taping was prohibited, which is a pretty standard rule at such events, even though the gifts given to paid attendees included a Flip HD video camera — which is so small and easy to use it practically begs you to take videos wherever you’re not allowed.

3. The founders of Twitter spoke but, according to Glaser, didn’t have anything to say. Is anyone surprised by that? I’m sure if they’d had a window of 12 seconds (the visual equivalent of 140 characters) they would have seemed pithy and brilliant.

Not ironic, but certainly important, is the recognition that the progress of the WWW has moved from its first generation of on-demand information, through its second iteration of social and participatory applications, into the third generation of data clouds and on-demand applications

10 YOUNG entrepreneurs to watch

Tuesday, June 2nd, 2009

From ContentNext, with link to same

Warning: If you have more than 20 years already invested in your career, this is going to make you very tired and at least a little bit scared. Here, from ContentNext.com are 10 young entrepreneurs to watch. By young, they mean really young — no older than their 20s.

What’s most instructive and startling is the transformational nature of what these kid are doing. Their businesses are, largely, based on ideas that couldn’t even have existed 5 or 10 years ago.

If you have any questions about the power of the Internet to foster change; or if you have any doubt that the next generation does things very differently than you’re used to, then you ought to spend 10 minutes scanning this article. Then resist the temptation to take a nap.

Can Obama be good for business?

Thursday, May 28th, 2009

Conventional wisdom among many of the people I know — regardless of how they feel about  President Obama’s social agenda — is that his economic agenda is pretty tough on business.

As reported by Stacy Blackman at bnet.com, Dr. Robert Frank at Cornell University’s Johnson School of Management and a New York Times columnist, feels othewise. I’m especially intrigued by his view on universal health care.

Marketing, or just anti-social networking?

Thursday, May 28th, 2009

When I heard  about the college kids who are making money by advertising products with temporary tattoos on their foreheads, I knew it wouldn’t be long before something like Wrapmail came along. As reported in Inc. magazine, forehead-adWrapmail is a service that puts an ad in every outbound e-mail sent from your place of business. Inc’s example was pretty benign: a guy who sells copiers is using the service to promote his own products on e-mails sent out by his employees. I can’t really see very much wrong with that.

But it’s not really welcome, either. And how long will it be before the matchmakers step in — paying individuals and small companies to advertise national brands in their outbound e-mails? My guess: within the next 10 minutes, if it hasnt already started.

We all know: The Internet tends toward cesspool. Every time there is an uplifting addition to the amazing things this medium can achieve, there is someone who finds a way to just as quickly coat it with a certain amount of stink. I’ve learned to live with that, even embrace and enjoy it.

Which is why I’m writing about Wrapmail (which, incidentally uses equally intrusive pop-up chat technology as soon as you open their website). I’m impressed someone thought of it. I’m also depressed someone thought of it.

And if they want to get the word out, they might consider tattooing it on someone’s forehead. Because on principle I’ll delete the e-mail I will undoubtedly receive from Wrapmail after writing this post.

More on the suing of Entrepreneur

Tuesday, May 26th, 2009

UPDATE: Entrepreneur magazine, being sued for publishing information in its “Top 100″ list of entrepreneurial companies about a CEO who was subsequently arrested and charged with running a Ponzi scheme, has now asked that the suit be dismissed.

The original suit, for $178 million by a group of 87 investors, alleged that, by printing information about the company Agape World (this was covered in more detail in my previous blog entry, Are Magazines Really That Important?), Entrepreneur magazine played a role in their making a bad investment.

Entrepreneur‘s motion for dismissal strikes me as pretty fair and on-target. I have no sympathy for investors dumb enough to bet millions of dollars on information taken from Entrepreneur magazine.

The strange thing is that’s pretty much Entrepreneur‘s defense. According to Folio:, the magazine cites New York law in stating: “A publisher is under no duty of care to its readers to ensure the accuracy of published information unless it constitutes a breach of contract, obligation, or trust, or amounts to deceit, libel or slander… A publisher, even those who maintain a paid subscription service, such as Entrepreneur, owes its readers no duty to ensure the accuracy of its publications, and thus, cannot incur liability for an allegedly inaccurate statement.”

OK, I agree that magazines make mistakes and shouldn’t be held accountable for the cost to someone who uses that information to make a business decision. But does Entrepreneur really want to be on record saying that it doesn’t need to worry whether the information it prints is accurate?

A shocker about ad budgets – and why

Sunday, May 24th, 2009

According to a consortium of advertising agencies, ad budgets are down this year. Who woulda thunk?

Seriously, according to B2B, a survey of 40 ICOM agency members indicated that more than half the agencies have seen client budgets drop at least 21% this year.

That seems to have translated directly to the magazine sector. The Seybold Report cites  data that consumer magazine pages were down 25 percent in Q1, with a corresponding decline in “rate card revenue” (that is: it’s just a calculation) of more than 20 percent.

According to the Magazine Publishers of America, this is just more of the same; pages were down about 12 percent in 2008. And various reports put them flat or down slightly in ’07.  So this isn’t just about the recession.

According to Seybold, more than half the respondents to the ICOM survey agreed with this statement: “Budget cuts and new challenges have served as catalysts for clients to come up with new ideas and experimentation to market their products.”

Again, this isn’t just about the recession. This is about businesses deciding that their marketing departments can and should play the role of publisher.

I started observing this bypass about 10 years ago, as my biggest and most sophisticated advertisers  literally started publishing their own magazines. Since then, it’s become easier and less expensive; today you can become a publisher with a website, a blogger and some folks who are really good with Facebook and Twitter.