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Rants and Raves

Attention!!  I've stopped ranting and raving here and do all my musings on my blog.  Go to Hamilton's Blog.

 A great way to decide whether you'll work well with someone is to understand what he or she thinks about.  Some of the things catching my attention:

1.14.5  Don't end up in the "murky middle" with your positioning. . .

While I count “things we can learn from the French” on a pretty short list now days, I found a statement by the Director of Design for Renault interesting:

 

"The future does not belong to designers creating products that do not displease the customer."

 

He made the statement after the first car he designed for Renault after coming over from Ford Europe, the Twingo, received mixed (to say the least) reviews from focus groups:

 

"Fifty percent of consumers said they hated it, and 25% were dubious," says le Quement. "But 25% said they loved it and wanted to know where they could buy one."

 

The Twingo was a hit (http://www.renault.com/gb/produits/twingo.htm).

 

The marketing lesson: work hard to differentiate yourself (even if your positioning turns some people off).  Said another way: don’t end up in “the middle,” wallowing around looking like and sounding like everybody else.  A J.D. Power and Associates survey says carmakers that polarize opinion make higher margins on the cars they sell. The study found that cars that people either love or hate -- such as the Chrysler PT Cruiser and Infiniti FX -- "sell quicker and at a higher profit margin" than cars that get lukewarm reactions.

 

When it comes to marketing, la vie longue la difference (long live the difference)!

 

1.1.05  Resolved: To be more authentic with our marketing for 2005.

No comment here about whether resolutions work or you should bother.  I do my resolving on birthdays.  But since ‘tis the season” for resolutions, here’s one you might try on for your ’04 marketing. . .

Be authentic.

First, duh!  I know, it “goes without saying.”  It’s the right thing to do.  But in practice, the world’s full of BS, much of it slung by my brethren out there. 

Don’t you add to it. 

You don’t like it when people do it to you so don’t do it to your customers and prospects. 

Plus, it just doesn’t work anymore. . .Set too high an expectation in an attempt to persuade and people will feel tricked.  Regardless of how your product performs, they aren’t satisfied.

The result: no word-of-mouth or, more likely, bad word-of-mouth.

Another reason to be authentic: the Internet will expose you.  With more information just a click or two away, you’ll get found out pretty quickly if all you have to offer are glorious platitudes. The net’s fundamentally changing the communication equation.  It takes the control away from you and puts it in the hands of the people you want to communicate with. 

So: think authentic, think persuading people by educating them.

Does this advocate dryly presenting product features? 

No.  Show your passion.  Be excited.  Extol your benefits.  Just make sure you operate within the bounds of what’s real.  And what you can deliver.  And, oh yeah, provide back-up for your claims.  Is your technology really “leading edge?”  Are you really an expert?  What makes you one?  Does your product really produce an “immediate ROI?”  If so, show me.

Said another way, ENOUGH ALREADY with empty claims and overstatement.  You’re tired of it.  I’m tired of it.  They’re tired of it.  It doesn’t work anymore.

Two good examples of marketing authenticity:

www.redoyourpool.com/resurfacing.htm

The first sentence of this page says it all:  "Resurfacing pools is the heart of what we do. It's what we know best. However, we don't know what is best for you. So we explain the different surfaces to our customers and let them tell us what they want. 

www.chrysler.com/town_country/index.html?context=homepage&type=drop

Go to the bottom left under the minivan image and click on “Competitive Comparison.”  They include this because these sites are a click away:

Compare Minivans
... Search Results for: Compare Minivans. ... Compare Minivans - Compare Prices
On Cars Before you buy, compare prices from national dealerships. ...
www.gmsupplier.us/dir/compare_minivans/index.shtml - 19k - Cached - Similar pages

Compare Prices and Read Reviews on Minivans at Epinions.com
Compare prices from across the web and read reviews from other consumers on
Vans & Minivans before you decide to buy. Join Epinions | Help | Sign In. ...
www.epinions.com/auto_Make-Vans_Minivans - 48k - Dec 30, 2003 - Cached - Similar pages

Have a safe, productive, challenging, satisfying and profitable 2004!

12.15.04 Remember your product--your creative isn't the only place to look for increased sales.

Progressive Insurance basically “rebuilt” their product from the ground up (auto insurance).  From the customer’s perspective.  They share their customers’ perception that includes the WHOLE process of buying insurance: shopping; comparing; the coverage; the premium; and the process of filing and collecting on a claim. 

How did they rebuild it?  First, as you probably know, they give you their quote and quotes from three of their competitors (makes shopping for insurance easier, builds trust).  And while that’s pretty cool—companies just don’t do that—it’s not revolutionary  (remember independent insurance agents?).

It gets better. 

Their goal is to be at the accident scene within 45 minutes.  They train their customers to call them from the accident scene.  For some, they install a GPS unit that sends the location of the car to HQ after an impact of 35 MPH or higher and dispatches an adjuster. 

An adjuster shows up in an SUV or minivan, takes digital photos of the damage, emails the photos via cell phone to HQ, receives a fax (computer and printer/fax onboard) with a settlement damage estimate, prints out a check to cover the damages and hands it to their customer.

Gasp!  Double gasp!! 

If you’ve ever been in an accident you appreciate how revolutionary that is.  It’s absolutely brilliant.  It’s almost like they asked people to imagine the perfect auto insurance company (which, of course, they did) and then they created it! 

And it’s working.  Progressive is one of the fastest growing insurance companies as a result of this dramatic rebuilding of their product.  Along with great advertising and a great website (the #1 most visited insurance site on the Internet).

If you’re interested in increasing sales, keep working on your message and marketing methods.  But make sure you also ask yourself:

How can we change, add to, modify or take from our product during 2004 to improve sales?

Next, ask your customers to imagine the perfect ______________ type of product, then explore the possibilities of giving it to them.  How could you do a “Progressive Insurance” on your product? 

“Impossible” you say!  Maybe.  Even probably! 

BUT, and this is a big but, a wonderful thing can happen when you allow yourself to dream a bit.  You find a handful of practical ways you CAN improve your product. 

Re-inventing or even fine-tuning your product can be as powerful a growth engine as the other “Ps” combined.  Make sure it’s part of your marketing plans for 2004.

10.11.04  Listen to your customers. . .but not all the time.

I was reading a blurb by Tom Peters (one of my heroes) that really got me thinking.  Paraphrased: Listening to customers can be good, but  if you don't go beyond that occasionally, you won't get truly innovative; customers tend to think incrementally.  He used the examples: nobody ever told Chrysler they wanted a mini-van; or told Ford they wanted an SUV; or told Domino's they wanted 30 minute pizza delivery. 

Good point.  Especially to a guy (me) who preaches talking to customers.  So, do both.  Talk to customers, but don't stop there.  Dream, imagine and maybe you'll surprise the world (or at least your customers) with something they didn't know they couldn't live without!

8.31.04  Is your website static?

Before I urge you to put video or audio on your website and get some pizzazz going. . .I admit to only having a pitiful small amount of audio on mine.  I could use the excuse that we've been so busy the past six months doing for our clients that we haven't done for ourselves (true), but then, that's just an excuse.  So, forgive me this one time as I urge you to do as a say, not as a do: hey, for Pete's sake, put some movement and sound on your site!  You can now deliver video in a simple, inexpensive manner (production values don't have to be on a grand scale, Flash streams video just fine).  Have a story to tell?  Tell it:

http://www.redoyourpool.com/RogerandChris.htm

http://www.superiortattoo.com  Then click on "Flash Videos" then on "Meet Superior"

http://www.scottsdaleseminars.com/video/index.htm

Or better yet, let your customers tell it:

http://www.redoyourpool.com/whatcust.htm

http://www.superiortattoo.com  Then click on "Flash Videos" then on "People talk about the V-TEK"

http://www.scottsdaleseminars.com/customers/

6.17.04  It's my Birthday and I'm getting all misty. . .

Well, maybe not misty, but Birthdays do cause me to look back and look forward.  Clients pay me to move them forward and that can sometimes be tough.  But one year old and I'm more determined than ever to push (see our Mission).  I had a prospective client yesterday say he wanted to double his sales.  Fast.  Yeah, don't we all.  There's a paradox about growing sales fast or slow--at least based on how we do it.  We start slow.  We test.  We get past the uncertainty of not knowing if a marketing method will work BEFORE we go full speed.  Want to go fast?  Then be willing to go slow first, unless you are far less attached to your money than most people we work with.

3.31.04  The celebrated Steve Jobs Reality Distortion Field

A friend forwarded an account of Steve Jobs' latest presentation at Macworld written by one of the Mac faithful, David Plotnikoff of the Mercury News.  Vintage Jobs: demoing everything himself; convincing everyone, once again, there was something different--inherently better--about a Mac; and making you feel you could somehow be part of something bigger, better than yourself with a Mac.

From a marketing standpoint, it's shear poetry what Jobs does.  Poetry: simple; communication stripped down to its essence; powerful; emotional; and the product of a hell of a lot of work.  He walks out onto the stage in jeans, takes your breath away with feats that border on the magical and then shows you how he did it.  Not a wasted word or motion.  Everything so tight, so natural--the product of a hell of a lot of work.   Like I said, poetry.

What's your message?  How poetic are you when you present it?

See the video:  http://www.apple.com/quicktime/qtv/mwsf03/

See the article:  http://www.siliconvalley.com/mld/siliconvalley/4896427.htm

3.10.04  Uncertainty can slow your prospecting (think war with Iraq)

Have you felt a slowdown recently?  There are many possible causes: some big, testy and fundamental (your message has worn out, for example); some smaller and transitory, like people feeling more uncertainty in their world (think war with Iraq).  Uncertainty creates risk.  Avoiding risk is a natural human response.  Nobody likes to change vendors (or hair stylists!).  So, as the risk around us increases, we’re less likely to increase it by giving your company a try for the first time.  If you’re interested in attracting new customers, the question becomes how to reduce the uncertainty of someone trying your product for the first time?  If you answered "by featuring our satisfaction guarantee," sorry, that’s the wrong answer.  Everybody offers a guarantee.  What then?  Click here for three things we’re working on with clients to help them reduce uncertainty for new customers. . .

1.10.04  Does your marketing tell a story? 

Let's face it, we're all human and all humans love a story.  What's yours?  Not that boring stuff: we manufacture a complete line of ________ and are the largest in the Southwest. . ."  But what is at the core of why you're different; of who you are?  Hummmm, you say.  That's okay, actually, you're probably not the best person to answer that question.  Who can?  Your customers.  How?  Ask them to talk about "their experience" with your company.  When they say things like "they're very competent," "they give us great service," "they seem to care more than the others," ask them for examples.  Those examples tell your story.  Video tape or audio tape your interviews.  Do some simple editing to clean them up and shorten them.  Then post them on your site.  DO NOT get slick.  The more production values you try to add, the less people believe them.  Keep them real.  Example.

12.20.03  This is definitely a rave!

My son's sixth grade chorus singing holiday songs.  Listen!

11.10.03  How do you increase sales 30%?

Find the next big idea?  How about finding three things that bump sales 10% each?  Major initiatives take lots of time to create, test and implement.  Better to have five smaller things cooking.  Three may fail, but if two work, then find five more things.  Gosh, maybe sales will go up 50%!  Leave the big ideas to somebody else. . .

9.19.03  Stop thinking about it so much!

Just move forward.  You don't need all the answers before you start.  You'll get the information you need -- customers will tell you what you need to know -- by their behavior.  Stumbling over the answers will get you to where you want to go faster than trying to make everything nice and neat before you start.  How does this relate to marketing?  Do small tests.  Tinker.  Change things up.  Try things.  When Lands' End brought out their first catalog, their niche was supplying boating enthusiasts with the latest, coolest equipment.  Three days before press time they realized they had one extra page.  And no products to fill it up.  Desperate, they found some shirts, boating shoes and shorts.  Over 90% of their sales came from that one page. . .opps!   We tested two TV commercials recently for a client.  One people liked, the other they didn't.  But there was one thing about the commercial they didn't like that stuck in their minds -- that they liked.  And you better believe we're using it!

10.17.02  How about those car companies?!

You've seen the ads: zero percent financing if you buy a car now.  Wow!  This ought to work and work well.  HOWEVER, do you remember what Chrysler did many years ago when their back was against the financial wall?  They offered rebates. . .and few cars have been sold without them since.  I'm betting the industry won't be able to shake zero percent financing either.  (Revisiting this rant on 1-1-03, yep, it's still here.)

9.17.01  So, now what?

Our economy has been slipping for the past 14 months.  Now this. . .so, now what?  We've been busy with client triage; helping those first whom need it most.  Surprisingly, and we work with a very diverse group of clients, the majority of our clients APPEAR they will not be significantly hurt by the uncertainty that defines our world.  Some are hurt, badly.  But there are things we're doing to "stop the bleeding" and get them moving forward.  Actually, I wrote about four things you can do in a softening economy back in April (see below).  What I said then still applies: White Paper.   

9.11.01  The world has profoundly changed.  I hope humanity's goodness prevails.

9.7.01  Ebay's going where the people are.

So you want to sell your lava lamp.  There was a time when you had a garage sale or put a classified ad in the local newspaper.  Now you have Ebay.  Now Ebay will help you also put a classified ad in a newspaper.  Ebay is testing a logical (in my mind, at least) extension of their business: enabling their sellers to also advertise stuff in selected classified sections of newspapers.   They're testing Ebay sections in the classified sections Florida and Minnesota newspapers.  We wish them well and can't wait to see how well it works. . .

I like the idea because one of our mantras with clients is be where your customers are.  Too many companies get hung up on trying to be a purely net entity, others make half-assed attempts at an Internet presence.  Be where your customers are.  If they look for products like yours on the Internet, be there.  If they look for products like yours offline, be there too.  For more on this, see my White Paper, Reconciling Online and Offline Marketing Strategies.

4.29.01  Have you noticed the mall?

If your shopping malls are anything like the ones we have in Scottsdale, you'll see the unmistakable signs of an economic downturn.  Look at all the "Sale" and "Take an Additional XX% Off" signs in the windows.  Retailers are starting to tug on consumers to spend money.  I usually see this kind of frenzy during the holiday shopping season, not in May.  I believe people are pulling back.  If I'm right, what should you be doing in your business today to make sure it doesn't affect you?  Check out my White Paper on four things to do when the economy softens.

3.11.01  Branding, as practiced today. . .

With sincere apologies to Winston Churchill:

"Never has so many professed to know so much, and have had so little to show for it."

Branding is NOT a cool new logo or slogan.  Branding is NOT awareness.
If you know SUVs, Ford Explorer, Jeep, Range Rover each mean something different to you.  Locally, the Tex Earnhardt dealerships mean something different than the Lou Grubb dealerships.  Coke means something different than Mountain Dew.  The meaning or perception is the branding each has achieved.  Nancy Sullivan, an anthropologist who studies tribespeople in New Guinea when she isn’t doing market research in America makes my point, "Whether it’s an outrigger canoe or SUV, things are empty vessels until people invest them with meaning."  It’s up to us marketers to suggest and mold the meaning people invest in the products and companies we represent.


Branding isn’t something you do.  It is the result of many things you do.  Branding is the impression of, feeling toward or level of understanding people have about a product or company.  No impression, no feeling or no understanding, and no branding.  Remember the cool little dog sock puppet in all the ads for the pet-related dotcom?  Remember which one (pet.com, petco.com, petsmart.com)?  It doesn’t matter, after $20+ million spent on "branding" you can’t remember and they’re out of business.

Regis McKenna, a superb marketer and consultant (he helped launch the original Macintosh), calls branding ". . .the refuge of the ignorant."  I agree.  Most of the people busy talking about branding today don’t know what the hell they’re talking about.  They have simply jumped on the buzzword bandwagon and are wasting untold amounts of money and opportunities for their bosses, clients or investors, whomever they happen to work for. 

Be wary of the branding bandwagon.  Make sure your marketing transfers meaning.

10.17.00:  A Glimpse into the Future 
Answer: Much has been written about the Internet and its promise in delivering a variety of video/film/short stories/whatever.  Many companies have tried and failed at all of the above.  Well, you heard it here second (Fortune Magazine was first).  I believe "shows" like RUNNER will be the model.  Think the next generation of Millionaire meets Survivor meets Big Brother Check out the RUNNER site.

9.5.00  Question:  Is it difficult to attract people to your site and convince them to take action once they're there.


Answer:  Netzero gives away, free, a large screen TV, everyday, to attract you to their site.  So they can persuade you to sign up for free Internet access, saving you about twenty bucks a month.  Key concept here:  giving away something expensive to attract you to a site that offers a free service that saves you $240 a year.

I'd say the answer is yes.  Heck, it's tough GIVING AWAY something free on the net.  That doesn't mean it's impossible.  It just means you need to continually chip away at it. . .

8.22.00  Great copy
Regis Philbin on the success of Millionaire -

"It's a runaway beer truck careening down a hill out of control.  It cannot be stopped, it will not be stopped!"

8.17.00  FYI:  On-line ad spending / top banners
Dollars spent for on-line advertising (banners, sponsorships) for 1999 was $3.5 billion and is expected to grow to $5.3 billion in 2000.  The largest category is financial services.  Bonzi Software had the most clicked on banner ad for the week ending 8-6-00, reaching an amazing 7.3% of the at-home Internet users and 13.4% of at-work Internet users.  Wow!    More


8.10.00  The net's demos are balancing out.
People with household incomes under $25K are logging on at a rate 50% higher than those folks with fatter wallets.  They're also spending more time per month on the net (13 hours versus 9).  If you sell to lower income people and think your Internet strategy doesn't have to embrace them, think again.  (Media Metrix report for June 2000)  

8.1.00  Evidence you don't have to be smart to work for a large record company 

Jupiter Communications has found that Napster users are 45% more likely to increase their music spending as a result of songs they've "sampled" online. 

Isn't that the site the large record companies just spent millions shutting down?  Hummmm. .

7-26-00  Is Your Web Site Full of Baloney
Most web sites look like sandwiches at a smorgasbord.I'm  astonished at companies’ inability to utilize the Internet’s incredible digital possibilities.Think about the number of web sites that don’t:

  • Offer any sort of graphical explanation of their products or services.

  • Offer audio or video content.

  • Use any movement; even a PowerPoint-like presentation.

Isn’t this just common sense?  Hey, Mrs. Rubinski convinced us in 10th grade civics class to use visual aids.  Okay, so you get my point.  Now, what to do if you site is looking more like a baloney sandwich than you care to admit?  Change it!  You don’t have to spend a fortune either.  Just start.  Add some color.  Demonstrate your advantages visually.  Talk to people.  Pretty soon . . . you’ll have a BLT instead of a baloney sandwich.

 7-4-00  Fourth of July  

The wisdom of a great American:

"You must speak truth so your words go as sunlight into our hearts."
Cochise

The truth is vitally important to a consultant.  We cannot afford to play with it when reporting to our clients.  Telling the truth to a prospect cost me $3,000 last week.  Ouch.

5-21-00  garden.cruddy  

Sharon (my wife) bought my mother a wonderful, dramatic houseplant for her birthday, which my mother loved.  She paid about $30 at a local nursery (don’t worry, my mother will never read this).  So, she thought she’d buy one for her mother in Washington DC for Mother’s Day.  I tell her to order from garden.com.  She finds the same plant at garden.com, $49 plus $8 shipping, but they tell us not to worry, it’ll get there by in time.  She thinks, “They’re over charging me, but what the heck, it’ll get there in time.”  It is supposed to arrive tomorrow, May 22nd.  In case anyone is keeping score, Mother’s Day was May 14th.  Sharon calls, mad.  They offered to eat the freight.  Unacceptable.  If you look at their stock, it too is heading south (http://finance.yahoo.com/q?s=GDEN&d=t).  (3-01-01 note: They're history!)

Martha is “da man!”  As below average as garden.com was, marthastewart.com is equally above average.  She, er, they, do a great job.  Tremendous selection, easy to find soaps or garden goodies, the products are well-presented, fair prices and absolutely great execution.  Her, er, their, shipment was early, and they created a very nice “presentation” when you open the box (wrapped in tissue with a sticker on it) for a wood rasp (honest, a wood rasp!) that’s used as a kitchen grater. http://www.marthastewart.com/

A great URL, tons of VC cash and a pretty good web site does not necessarily equal a pleasant buying experience.  I wonder how long garden.com will be around.  I wonder how much money we’ll spend with Martha over the next 10 years?


 

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