Carter and Company, LLC - Marketing

Should I Advertise on Twitter?

2009-05-28T17:12:00.000-04:00

Oprah said the word and Twitter became an overnight sensation. Ok, sure, it was pretty darn popular even without that, but her endorsement was certainly a landmark in Twitter's growth. So, now you're wondering if you can use Twitter to build your blog traffic, website traffic, or just plain advertise your company. Is it worth it? Is Twitter just a fad, or will it really benefit my brand?

There are few qualifiers that I must give before announcing my resounding, "Yes!" First, Twitter advertising is not going to perform the same way traditional banner advertising performs--at least, not for long. This is social media advertising, not a "push media." So, your budget and goals should take into consideration the fact that, if you pay to advertise on Twitter, you're paying to increase your social footprint.

I can't deny that applying traditional CPM advertising principals to Twitter could have positive impact on your branding efforts, but I want to suggest that there's a better way to think of it. Successful marketing strategies that include Twitter revolve around the concept of building a following, becoming social, and engaging your target audience. That's what BeTweeted is designed to help you do.

So, if you're not yet ready to embrace this new paradigm in online marketing, then I would actually be inclined to join the rest of the purists and say: keep your spam off twitter, please. But, if you get social media marketing and you're ready to use Twitter advertising as a socially responsible medium in your overall marketing mix, then you get my resounding, "Yes!" Advertise on Twitter with BeTweeted.

Top 10 Ways NOT to Monetize your Twitter Account

2009-05-08T10:24:00.001-04:00

With a title like that, oh my, I bet this article get's dugg by 10 different people. Of course, each will claim it's a unique submission and I won't get the valuable benefits of being dugg 10 times. Curse that blasted interface. .... I digress.

Seriously, though, how many articles can we possibly need about monetizing. Is that even a word? My spell check keeps giving it the dreaded red-squiggly, which is a sure sign we're using flat-out jargon that is doomed to be either forgotten entirely or parodied relentlessly. That is why I've decided to give my top ten articles on how NOT to monetize your Twitter account. Enjoy.

Thou shalt not (yes, I think this will be a fun thematic style to continue, don't you) place ads in your Twitter background that can't be clicked on anyway. What's up with that?
Thou shalt not include links to your own products in an Auto-DM on follow. I open my outlook in the morning and immediately sort all DM's in my inbox... shift+delete.
Thou shalt not tweet the same paid link multiple times just because people didn't click it the first time. "Buy from me. No seriously, buy from me. Hey did you hear me say 'buy from me?'"
Thou shalt not subject your twitter followers to an advertiser's link without first visiting the link yourself... and, yes, considering the relevancy of its content to your followers.
Thou shalt not take Twitter's name in vain. I've clicked far too many links to products where people want to get paid for teaching you how to monetize your twitter profile. Absurd. I think so.
Thou shalt not sell your following to the highest bidder [clears throat] not to name any names.
Thou shalt not allow some advertising bot to place links to content in your tweet stream automatically (see number 4).
Thou shalt not bear false witness (yes, it's getting deeper) on behalf of an advertiser, no matter how much they pay you. If you don't use their product, don't say you do!
Thou shalt not tweet more than 1 in every 5 tweets that are advertising or promotional.
Thou shalt not @reply unaffiliated names in your advertising tweet for the mere sake of implying their endorsement, affiliation, or otherwise increase credibility.

The launch of BeTweeted.com

2009-04-30T06:37:00.004-04:00

It's been a long 24-hours. From last-minute glitches to an unbelievable firestorm of twitterers responding, BeTweeted kept me frantically busy for the past solid day. Built on the Twitter API, BeTweeted is a pay-per-click advertising outlet that generates clicks and discussion around your products/services among Twitter users. From the majority of advertisers yet unfamiliar with Twitter, here's a synopsis of how powerful this can be.

First off, Twitter is now the #1 traffic generator for my website. Why? Because I have over a thousand followers who, if I post valuable or interesting content, share the links with their own followers, and so on. It's no longer about Adwords, where I hope to get a single click and then convert it into a sale on that same visit. This is about creating readership. Building a "follower" base on Twitter that I can leverage for years to come.

BeTweeted places the advertiser's Twitter username in the beginning of the ad (as a "retweet" and @reply feature). That means, if a Twitterer finds the link, clicks the link, and is interested in the content they read there, then they're likely to "follow" the advertiser on Twitter themselves or subscribe to that advertiser's blog.

This is the fast track for people looking to build readership in their blogs. Realizing that a blog is only as good as the number of people interested, BeTweeted is tantamount to paying the "cool kids" on Twitter to introduce you around a bit.

Does the concept work? Just ask our advertisers! Yesterday, larrykevin started a small campaign. Within less than 5 minutes, he had 25 new visitors to his blog (clickthroughs) and 6 new followers on Twitter. Amazing.

Start the converstation today at betweeted.com!

Pay Per Tweet - How Bad Can it Be?

2009-04-13T12:12:00.003-04:00

Ok, I'm quite positive I wasn't the first Twitter user to think to myself, "wow, what would I have to pay a top tweeter to tweet my link?" Admit it, even if you're a die-hard defender of the notion of unadulterated social media, you can't help but be enticed at the thought of your link in front of 50k followers, and then retweeted, and retweeted. Oh man, I'm salivating. But, despite the potential, this concept is slammed left and right!

Magpie is one of the first, and most sophisticated, models that I've seen created. And yet, if you google their name, you find more irate bloggers ranting about the heinous crime against humanity they've committed than articles about the actual species of bird. What's the deal? I have to ask, is it really that bad? Josh Catone of Sitepoint sure thinks so.

But what is it we're against? The shameless promotion of it or the simple idea that a person can profit from being popular on twitter. I surely hope it's not the latter. I hope people can profit from whatever they're good at. Now, that said, I also believe that if a person starts slapping up useless paid-links every tweet, they'll quickly find themselves failing at the one crucial component: being popular on twitter!

I for one will quickly unfollow anyone that I realize is just shamelessly promoting, whether themselves or some paying advertiser. Not only that, but as a paying advertiser I would seriously question the validity of the twitter users tweeting my link. I confess: I tried pay-per-post. I was sadly disappointed to see my link appear on ridiculous promotional blogs with no taste or tact. The same would have to be prevented with any successful pay-per-tweet. But, still the question remains, could it be done effectively without sacrificing the existing value of Twitter? What controls would need to be implemented and how?

For my two cents, here's what I might consider paying for. I would pay for clicks, not tweets. I would want to know that users were manually choosing to discuss my brand, not having automatic tweets sent from some robotic script. I would want to know that the users were limited somehow to the number of paid tweets they could send (for the good of all, not me). And I would even appreciate a system that required ads to link community-focused messaging (like a facebook group, a youtube video, or a news item), not promotional messaging (like a sale, a product release, etc.).

Am I a social media monger for thinking this way?

Making Rain in the 21st Century

2009-04-10T10:36:00.000-04:00

Changing the mind of a "old school" networking maven is not the easiest thing to do. Maybe you can help me. I've been bending Tony Scelzo's ear for a while about re-inventing Rainmakers online. Social Media is so much more than just another spoke in the wheel of professional networking. It's a wheel, or even a vehicle, all to itself.

I'm a happy member of letsmakeitrain.com--the Rainmaker's current online component built on the ning platform. In fact, so happy that I get more excited every time I think about ways to improve it. With the power of Rainmakers and their model for networking, combined with the speed and scalability of social media, we could blow the doors off of membership, not only online but face-to-face as well.

How, you ask? Simple. Open it up. Letsmakeitrain.com is currently a closed ning site, open only to members of Rainmakers. How do you become a member? You attend an event, see the value, and sign up. It's only then that you're granted access to the "oh yeah and" online network.

But let's back up a moment. Why do you join? Because you saw value in the networking opportunity that Rainmakers presented. So, I ask Tony, "What if we invited 'blue dots' online?" Bring them in, just like any hub, and let them see the value. Let them network. Let them understand how Rainmakers' S.H.A.R.E. model will impact their business, not just at brick-and-mortar events but online as well. And, when they see the value, they'll join.

Really, it boils down to two questions: first, do you want Rainmakers to grow? I do. New members means new contacts and new opportunities. Everyone gains. Second, and more importantly, how can we demonstrate the value of Rainmakers to more people? By reserving only one "open" interface for guests to explore? I think not.

Well, the case has been made, but as I said in the beginning, maybe you can help. Tony's at the tipping point. If you're ready to push him over the edge and start bringing guests to letsmakeitrain.com, comment here, email Tony, or write on his page in letsmakeitrain.com. I for one can't wait to see how many "blue dots" we can show the power of S.H.A.R.E. in the new Social Media Hub.

What's Your Social-Media Client Path?

2009-03-13T08:45:00.002-04:00

As an Enfront solutions provider, I've been well aware and steeped in the principals of Client Path Marketing for years now. I have helped several companies develop marketing communication strategies using the client path method. I've even spoken on the topic and created a CRM system devoted to helping customers use it more religiously. But, until now I failed to see the connection between Client Path Marketing and Social Media Marketing.

In Client Path Marketing, the under-girding principal is to tailor your message not only to the demographics and specific interests of a particular contact, but also to their unique stage on the path to becoming your client. The implications (and value) of this concept are obvious in the scope of outbound marcom. But, does this same principle play out in social media?

Well, let's ask the same questions that we might about our traditional marketing. Do total strangers interact with our blog, twits, Facebook and linked in profiles in a different way than do our loyalists? Indeed. Total strangers stumbling upon your blog are far less likely to comment, share, or subscribe than the loyal client. Likewise, your relationship with loyal customers needs attention that may not be afforded by a weekly blog post fed to them by (if they've subscribed) an RSS feed.

I don't believe that I have fully worked this concept out, but I'm eager to share the discussion and hear your feedback. At present, my Social Media Client Path might looks something like this:

Strangers: Read me occasionally on twitter, blogger, or facebook via keyword search or blind luck
Prospects: @replied me on twitter, commented on my blog, added me to their LinkedIn network, or joined one of my groups on Facebook
Clients: Followed me on twitter, subscribed to my blog, or added me as a friend on Facebook
Advocate: Retweet my twits, stumbleupon or digg my blog posts, or recommend me in LinkedIn

Have you thought about your social media path? Maybe you haven't even begun to dig into this whole social media realm because the value is not clear enough for you. Perhaps this exercise could help to develop a strategic method for using the wealth of social networks online to your advantage.

A Culture of Cost Consciousness

2009-02-16T10:09:00.002-05:00

Several months ago, I wrote about developing a culture of innovation. Today, however, the most innovative thing a company can do is figure out new ways to spend less money. Today, I want to share how companies can turn each employee into a cost-conscious advocate for corporate profitability.

My cousin and her husband have been teaching their seven-year-old about money. With all the news and panic about the economy swirling throughout every channel of media, they decided it would be good to help her understand what money was all about. Right now, money is far from the most valuable thing in her mind, so they needed to establish another more relevant currency: horse riding lessons.

"Now, Catherine," they told her, "if you leave the lights on in this room all month, that could cost as much as ten minutes of your horse riding." She may not comprehend the hourly rate of their trainer, but this correlation gives Catherine a clear frame of reference and a desire to reduce mommy and daddy's costs so she can keep riding.

It still amazes me how child-like an employee's understanding of business might be. Overhead, taxes, insurance, and profit margin might be terms they know, but are they pains that your employees feel? Do they fully understand how these matters weigh on your mind? Not likely.

While nobody wants to have open discussions about salary and compensation, what if the cost of materials in the supply room were clearly marked? What if the tally of each salesperson's monthly expenses were published... right next to their sales. Could your workers learn to see the wastefulness of a co-worker as a threat to his or her own income?

There are lots of expenses that add up quickly as a direct result of the lack of frugality on the part of employees. Electric bills, heating bills, travel and entertainment, and even regular repair and maintenance can all be reduced if people would but see the monetary value in something as simple as flipping a light switch or re-using scrap paper.

The Winback: A Lesson in Humility

2009-01-09T13:39:00.004-05:00

Nine times out of ten, if a customer leaves, the extent of your future communication with them is to leave them on your newsletter list and hope they have a change of heart. In sales, the biggest fear is the fear of rejection, so the psychological barrier to calling back a lost client is formidable to say the least. But, in this economy, it's never more true that every sale counts. So, how can you actually succeed at winning back lost customers?

The first thing to realize is that, at least in principal, the path to their buying decision is no different from new customers. Some people may list these a bit differently, but I tend to define 4 steps to a sale: build rapport, establish a need, offer the solution, and then close the deal. The 4 steps, then, to a winback are very closely related and will serve the same purpose.

Show Sincerity
This process will require not only letters, introductions, brochures, etc. but also personal calls with sincere apologies. Identify why they left. Then, accept any fault that they may place on you, whether voiced or implied.
Highlight Current Dissatisfaction
If they are being served better where they are, acknowledge to them that you’re happy they found a solution that fits. However, wherever any shortfalls may exist with their current vendor or solution, remind them of the advantages of your company or product.
Present a New/Improved Product
If nothing has changed since they last felt displeasure, then you can’t win the sale. Present any positive improvements in the product itself, your service process, support mechanisms, etc. In essence, what is it that makes you truly believe they should return? If you cannot answer that, then you cannot win the sale.
Offer Incentive for their Return
As a gesture of your desire to service them in the future, offer something of significant value for their return. Free services, free upgrades, or the like. Make it clear that this is a gesture for their return so as not to set a profit-cutting pattern for the future.

Some common ways that the above principals might be fleshed out in action would include letters, phone calls, and incentive fliers. Let me encourage you to lead with the personal touch. Hand write the letter and hand address the envelope. When you call to follow up, be sure to tone down the typical "high-energy" mode and take on a humble persona. Remember, it's entirely possible that they left for very sound reasons. That shouldn't deter you from making the call... in fact it should motivate you. It's good for us as responsible business men and women to value reconciliation, no matter the circumstances.

Here are a few even more outrageous and bold ideas:

FedEx a stress reliever ball in a package with a note that reads, “If we dropped the ball, let us make it up to you.”
Send a postcard with a picture of a fence that reads, “If the grass isn’t still greener, we want to make it easy for you to come home.”

Market Share: Buy Low, Sell High

2008-12-30T10:22:00.003-05:00

The stock market game is not very complicated: buy low, sell high. Anyone with free capital in today's market is busy gobbling up any common stock they can find in the companies that analysts are confident will survive this downturn. Why? Because their dollars can buy more shares today, which will expand in the future.

What many companies fail to realize is that the same principal applies to gaining market share in your industry. First, the price is low. As publishers and printers struggle to keep their margins up, there are great bargains to be had. Remnants and unsold spaces in magazines, presses that sit dormant, leaderboard and sponsorships that are falling vacant can all be purchased at rock-bottom prices.

But, can you "sell high" on those investments today? Absolutely. While many competitors are shrinking from the market, some will arise in these days of turmoil to buy up the means to top-of-mind awareness in consumers minds, eventually emerging at the other end of a swelling and rebounding economy as the king in their fields. When (not if) the consumer trends reverse and eager buyers go out to spend their newly rejuvenated budgets, it's the vendors who have bought their share of mind that will profit greatly.

Here are a few recommendations of places to look and people to call if you would like to buy "shares" at their lowest:

Your ad rep at any printed trade magazine in your niche. Ask for remnants (or unsold spots), even premium placements. Depending on how dire their sales have been, expect 50% of rate-card or lower.
Look for email newsletters and websites that have "house ads" running in prominent banner positions. House ads promote the publisher themselves, not a paying client. It's a sure sign that they couldn't sell that spot.
Even more daring (but with higher potential for reward)... find top-ranking bloggers in your industry whose sites are conspicuously absent of sponsor ads. Offer to "buy their blog" and put the writer on retainer to write for you. Many small-time bloggers will jump at the chance for a lump-sum exit strategy with residual benefits, and you can now funnel 100% of their traffic to your site.
If B2C is your market, take note of all the highway billboards that are now saying, "Advertise here." If that's been displaying for a few months, the owner may well be eager to let the space go for a very small amount IF you can afford a long-term commitment.

The Dangerous Blank Canvas

2008-12-19T15:52:00.004-05:00

Let’s be honest, often times when starting a new task the most daunting part is looking at a blank page and starting from scratch. In the developmental stages of any endeavor, there are an infinite number of directions that can be explored. Selecting which ideas to explore and incorporate also means selecting what to leave out (consciously or otherwise). The result of this opportunity cost is often second-guessing and sometimes full-blown decision maker’s remorse.

Many great ideas are spin-offs of previous concepts. Believe it or not some companies comb provisional patent filings in search of promising ideas that were never completed. This is an ingenious use of existing resources. Companies can find real value in utilizing the intelligence of others. Rather than reinventing the wheel, consider adding your own personalized touch to an existing idea. There is nothing wrong with using what works and improving upon it. Like my former sales manager used to say, “I stole this with pride from…so-and-so.”

From a marketing perspective, this idea has definite application. For example, you could look at a competitor’s website and ask yourself what you like about it, then incorporate those principles into your own website.

You should also be open to asking for outside help. Utilizing the expertise of a consultant can be invaluable in getting a project started on the right foot. (Ok, this is a shameless plug, I know.) But it’s important to remember that a project’s foundational plan impacts everything that is built upon it. A project that is underdeveloped or misguided in the beginning is doomed to mediocrity throughout.

So, steal with pride and get over your blank canvas.

The Losing Leader

2008-12-01T13:02:00.006-05:00

Over the Thanksgiving holiday, I was able to spend much appreciated time with family. My mother, owner of a very small flower shop in a very small town of Russiaville, IN, was asking my advice on marketing her company. One idea that came up was the offering of a "losing leader," a product that your advertising "leads" with, and yet you offer such attractive pricing on it that you lose money... hence the name. The theory, of course, is to get them in the door and up sell, or rely on repeat business to make back the small loss. We've all seen it in weekly specials, value menu deals, and the like.

"Oh, yeah..." I said, "That's a great idea to generate more awareness of your shop."

And that's when the question hit me... "What's your losing leader?" Mom asked.

[Gulp] Don't you just hate it when you're giving advice that you've never taken yourself? So, my mind started spinning. What is a good "losing leader" for a b2b service-based company? Free consultations are too over-used. Can this principal even be applied in our industry? With average ticket sizes over $1,000... what sort of "deep discount" could companies like ours offer that doesn't eat up our overhead or look just plain cheesy?

Here is what I determined:

It can't be free. In the business world, if it doesn't cost anything, it isn't worth anything.
It must be a service that is in constant need. In order to accomplish the intended effect (drawing hoards of new customers) there need to be hoards of people in need of the service.
You must actually be able to deliver considerable value for the discounted price that you set. The whole idea is to make such a memorable impression that they desperately want more of your services.

For my own company, I have one simple idea, but I'm open to suggestions: Learn more about the $150 proof-read here.

What have you come up with for your own businesses? Share your ideas by way of comment below.

Lung Gases... and other Ridiculous Marketing Terms

2008-11-11T09:26:00.003-05:00

I was sitting in the convenience store parking lot, just about to pull out with my hot cup of coffee and drive away, when a semi-truck pulled in hauling a cargo of pressurized tanks. Across the bottom of the trailer read, "CO2. NOx. O2." But, what term did the company see fit to categorize all these products? "Lung Gases," was written in big bold letters. C'mon... are you serious? Lung Gases?

Descriptive? Yes. Accurate? Yes. Appealing? That's arguable. Even though marketing is about much more than pretty pictures and catchy names, I'm going to perpetuate the stereotype for a moment while I rant on product nomenclature.

Why are names and terms important?
Well, If you're lucky enough to get someone's attention, you don't have long to describe yourself. You goal in those few seconds is to be memorable. That means two things: uniqueness combined with clarity of value. If I ask you what you do, you've got to be able to tell me in a way that I can connect to some aspect of my life that I will recall later. Lung gases? Does that fit the bill? Well, two arguments for it would be (1) it's unique enough I decided to blog about it and (2) I do know precisely what they're talking about.

Sometimes, the quest for artistic flare in a product name totally negates the clarity of its meaning. In our movie theatres, I often see ads for fandango (or something like that) and I NEVER think later, "you know where I should by my movie ticket... fandango." Nope. Not once.

By contrast, some of the most widely-known and memorable new product names (of recent history) have been utterly simple. MySpace, Reddit, iPhone, and Smart Car are just a few examples. Without much thought at all, one can easily ascertain what these products are and, if you have even a slight need for them, pique an interest.

So, lung gases... good or bad? If I'm the purchaser of such products at a nursing home or other health care organization, would I recall this company? It's likely, yes. Would I buy from them? That's another question altogether. See, the "perceived value" we talked about earlier is more than just the product itself. Is there an implied lack of professionalism in a medical supply company that names its product "Lung Gases?" I tend to think so. What about you. Would you name your next product "Lung Gases?" Convince me...

What Catches a Marketer's Attention?

2008-10-23T12:20:00.006-04:00

When it comes to ads, emails, mailers, media attention, websites, etc. I've pretty much seen it all. Not only am I bombarded with these messages daily just like the rest of the world, I also spend most of my time dreaming up the ideas and implementing them myself. So, when anything actually catches my eye, I have to give it accolade.

I got this email from QuickParts about a free .STL viewer and part quoting software. Want to know what a Rapid Prototype or Rapid Manufacturing job will run you? It'll tell you. Now, with all the companies I work with, one thing I preach over and over is to make yourself an indispensable resource. And that's not only to paying clients but to prospects and strangers, too. If they lean on you for free help, it's very likely they'll call on you some day for business. So, what was so eye-catching about QuickParts' offer? No strings! (and I should add, that QuickParts is not a client of Carter & Co.).

This software is not only a free viewer, it gives pricing. And, it's not the kind of "free quote" where you send your part in and some salesman will call you back with your quote. I don't call it free if, in exchange for the price info, you lend yourself to relentless sales calls. No, this really is something you can use daily without being subjected daily to a QuickParts pitch. If you are in the business of designing parts, and prototyping or short-run production is a constant need, why wouldn't you want to know in an instant how much a prototype will cost? Compare technologies, materials, quantities, etc. to see how to save the most money. Want to keep your current vendor honest, compare their price to this quote!

Now usually, I wrap these little blog posts up with a charge to the community of my fellow marketers to step it up and implement this in your business. Today, let me ask you to help me. I'm convicted. What free tools can I offer you to make your marketing tasks easier. No strings, no hooks, I just want you to lean on us for free help... maybe some day you'll call on us for business, too. Share your ideas here. I'll get to work.

What do Marketing Dollars mean in an Economic Recession?

2008-10-21T16:06:00.002-04:00

Like many of you, I’m sure I have spent way too much time of recent looking over my budgets with a big red pen striking out anything that might be dragging us down. For business owners in times like these, “trimming the fat” is priority number one. Unfortunately, marketing is often seen as the gristle on the steak. But before you start chopping your marketing budget consider the possible consequences.

With a reduced marketing budget can your company effectively announce its presence to potential customers and stay fresh in the mind of those who currently buy your products or services? Effective marketing defines and reaches your target audience, differentiates your company from the competition, and attracts potential clients (giving your company the opportunity to convert them into loyal customers). Without marketing, a company grows stagnant—with a warehouse full of products and ever-present production costs.

So, assuming that I’ve convinced you not to abandon marketing altogether, you may be asking: what sort of marketing should I do? First of all, times of economic recession are no time to get experimental. Go “lean” with your marketing and stick to what’s worked. In addition, focus on high-impact communication. Especially for small businesses, a focus on mere brand exposure may not be cost justified in today’s market. Consider highly targeted email, direct mail, and pay-per-click where every move is carefully calculated.

Can a Bad Economy be Good for Small Business?

2008-10-20T08:56:00.002-04:00

I have this uncanny ability to recall anything I have ever learned (right or wrong). Like, in a freshman world history class, I recall learning the cycles of civilization, beginning with tribal, then to feudal, then as stronger feudal rulers absorb others, eventually you see the stabilization and formation of the nation-state... which eventually crumbles and feudal warfare ensues until the dust settles and new feudal kingdoms arise again.

Ok, sorry about the boring history lesson, but see if you can find the connection. Three years ago, several other consultants and I were laughing together at a co-worker's dining room table about the fact that "whenever Autodesk downsizes, we get about 20 new competitors." The joke, of course, is that lay-offs at one of the major players in our industry means that many of those estranged workers decide to become self-employed (not business owners yet) and end up selling their services right back to the company that let them go.

There's a distinct need in the marketplace today that is enhanced by decreased budgets: the need to outsource! Is it difficult to succeed freelance in today's market? Sure. But if you can give 'em what they truly desire—great service at a lower cost than on-staff resources—you've made a hit. And, like my friend Jeff says, "Even in the greatest economy, if you're not smart and don't work hard, you won't succeed. So what's different today?"

What's more is that over time, just as feudal leaders expand their borders and absorb other groups, some of these freelancers build into larger companies often absorbing other freelancers. At the marketing firm I worked at prior to starting Carter & Co., almost a third of the staff were former employees of our largest client. They had been downsized, started consulting, then eventually were absorbed into that firm. Carve out a niche today, expand your borders while the competitors are weak, and reap the benefits for years to come.

Looking for Marketing Talent?... Define Marketing.

2008-10-16T10:46:00.003-04:00

If you ever want to realize how broad of a spectrum the field of "Marketing" really encompasses, just do what I did and start a marketing talent business. One of my friends, who was a recruiter in a previous career, told me it's too narrow of a field. Really? Marketing is narrow? I had a hard time narrowing down the list of categories to include.

Several years ago, I was eating lunch with another friend and business associate. As he got up to head to the bathroom, he said, "Here's a lesson for you in marketing," then quickly disappeared into the Men's room. Puzzled doesn't even begin to describe the next couple of minutes for me. When he came back, he asked me if I ever considered the janitor as part of marketing. "Not really," I replied. Then he quickly asked, "are you a repeat customer at bars or restaurants where your feet stick to the bathroom floor?" Well, now that put it into perspective.

Despite my friend's compelling argument, however, I did not include janitorial positions in my new marketing talent venture. However, I was forced to think about software developers, design engineers, and even data entry specialists in a little different light.

But I'm sure you're none too interested in my business... what about yours? How tightly do your marketing people work with product designers. Does one person "ideates" until they've created a product... then tell the marketing guy to make it a hit? If you want a fresh look at the business your in, have a group from marketing (yes, that's ad people, website designers, copy writers, PR specialists, etc.) write out what they would put on your menu of services, or what they would invest their R&D budget in next, or which products/services they would drop altogether. You might be surprised how well they know your customers, and how well they understand the elusive non-customers.

10 Ways to Know You Own Your Own Business

2008-10-12T11:17:00.003-04:00

This may seem like a real "duh" topic, but there are still a lot of people who tell me they own their own business only to find out they're really self-employed... and there's a major difference. So, to take the test, see where you fall.

Ten ways to know you own your own business:

Clients call the office to speak with people other than you.
At some point in company history, a total transaction took place (pre-sales, order placed, fulfilled, invoiced, and paid for) without you even knowing about it.
Someone could actually buy your business from you today and run it without you.
You can leave for a month vacation without your cell phone ringing daily.
You return from your vacation and get introduced to "the new guy" that was hired while you were away.
Other bloggers write about your company without naming you by name.
The bank didn't require a personal guarantee the last time your line of credit was increased.
You've actually forgotten how to forward the office phone to your cell phone.
You created a replicable product/service... and so an employee struck out on their own as a self-employed replicator of it.
You've ever told your marketing manager, "Hey, I like the new website. When did you change it?"

That's my list. What about you... when did you realize you no longer were self-employed?

I am NOT the Standard

2008-09-10T15:26:00.005-04:00

I had the first-hand experience of having to please all people with one product. The first thing I learned is that to plan with me in mind is disastrous. I prefer text-heavy, in-depth prompts. But we got feedback requesting more icons. I prefer "DOS-like" features, and that obviously wouldn't be met with warm reception.

So, am I writing this blog post to talk myself out of any future ad design or marketing research projects? Well, I hope not. We listened to our customers, entertained beta testers, and ended up with a website that was both easy-to-use and stylistically pure. And we got something else I value highly... insight for the future (along with a cool new product: http://www.addresstwo.com/).

In business, we often times need to be reminded that we are not the "typical" customer. Should we call people on their mobile, or office? Well, I prefer office... that must mean everyone prefers office calls, right? Will our customers be more interested in ease-of-use or a wealth of information? Well, I personally like feature availability over interface clarity... doesn't everyone? No!

The concept goes even deeper into marketing and design. How do you lay out your website? What's your goal. Believe it or not, statistics show that if you're trying to get a high percentage of hits to result in a transactional sale, use long scrolling text that tells a story. Even though that format grates on my nerves, for the segment of our population that's inclined to buy online on an impulse, it can't miss! But for the wrong situation, like a b2b company trying to build trust and awareness, it's destined for failure.

In every situation, don't hesitate to ask yourself, "would I respond to this ad?" or "would I like this website?" But, even when your answer is "yes," your cube-mate might groan in disgust. Don't take it personal, try to understand and adapt to the infinite diversity of human preference. In design, we have the challenge of trying to synthesize a wide array of preferences and reconcile conflicting feedback.

Directly Affect Sales with Indirect Marketing Strategies

2008-07-28T16:01:00.001-04:00

I just got off the phone with a long-time client, and his answer to my routine question, “how are things going?” was surprisingly different from the routine, “fine, and you?” Today, I was informed of the unpleasant privilege of being totally dependant on resellers, affiliates, and service bureaus for your corporate sales numbers. “If you come up with any ideas for getting these guys off their tails, let me know.” I have a few, so I thought I’d share with everyone.

Now, of course there are some obvious solutions that come to mind—up their quotas, cut their margins, threaten to cancel their contract—and all of these will work wonders on your long-term relationship, right?

Some of the best solutions hinge on human emotion and personal relationships. For example, instead of emailing leads to the next reseller in the queue, why not invest in a call. “Hi Joe, this is Nick. I’ve got a hot lead I need your help closing. I know you’re probably busy, but if you can get us in the door this week, I would really appreciate it.” Let them know you want their help. Acknowledge their importance in the sales process.

In addition to the human need to feel desired, we are also beasts that bask in praise. Some of the most productive resellers in the tech market are also the most highly decorated… and it’s a chicken-and-egg phenomenon. Give accolade, and you’ll soon find them earning even more. I encourage companies to “invent” new certifications, authorizations, and performance awards—enough to make sure every reseller has something to tout—and then offer maximum publicity for the recipients.

Finally, make sure your marketing budget and strategy reflects the importance of indirect sales. A strong focus on corporate branding that is absent of co-op marketing efforts can send mixed messages to your channel partners. The more you work for resellers, the more they’ll work for you. We structured a co-op marketing system for one client that allotted over 40% of their total marketing budget directly for co-op use. Their resellers planned events, ran ads, and even dedicated sales staff to this single product line. What more could you ask for?

Process-Centric Sales

2008-05-22T11:12:00.003-04:00

In the high-tech world, we're constantly focused on improving processes. Manufacturing, R&D, testing, and engineering can all be improved by mathematical means like Six Sigma and the like. So, is sales such a process? Treated as a process, can sales be optimized in the same mathematical manner? Perhaps. But ask your customers how they feel about that.

I recently had a conversation with a client about restructuring their sales department to be "optimized" for performance. They would segment the talents for "hunting" and "farming." Sales warriors devoted to hunting down the next opportunity would close a deal, then hand it off to farmers who excel at account management and relationship building. Seems ideal, right?

But, nobody in the room was prepared to talk about the recent challenges that occured when several customers suddenly went cold after being introduced to their new rep. In situations like those, it becomes obvious that people buy from people, not companies or brands. Can customers be modularized and moved along an assembly line?

While nearly every aspect of product manufacturing and delivery is scientific... sales is still an art. Art cannot be improved mathematically. It cannot be taught, nor learned.

Have you ordered new phone service recently, or purchased any major enterprise software? It is this process-centric approach toward sales that has resulted in the poor customer service and impersonal sales style that plagues major companies today.

Thank Goodness for High Oil Prices

2008-05-09T11:24:00.001-04:00

Oh, don’t worry. I’ve already set up a special email filter in anticipation of all the hate mail I will receive for this right-wing stand. No doubt, the title of this article raised your eyebrows a bit, and perhaps your blood pressure, but hear me out.

Let’s look at some high-level facts. During the century-old oil consumption market in the U.S., the only period when consumption has actually decreased was for a brief decade from the early 70’s to the early 80’s. What happened? Two things: Gas prices soared during the ’73 oil crisis while simultaneously the EPA, which was officially formed in 1970, had begun to actually bring about change in the lives of everyday Americans.

Now, I’m not here to say that EPA regulations were flawless. I recall as a teenager, rebuilding an old engine with my dad and wondering why there were belt-driven air pumps that did nothing but force fresh air into the exhaust. Nonetheless, forming the EPA was a first step toward conscientious environmental protection.

So, whatever your theories on the cause for oil prices today—be it the war or peak oil projections—one thing is true: recent prices have caused the first noticeable decline in our insatiable oil consumption to ever occur in my lifetime (Reuters, 5/06/08).

What can we learn from this history lesson? Oil prices in the 70’s forced a market shift and ultimately lead to the popularization of gas-efficient smaller cars (Which, incidentally, killed the muscle car. That does make me sad. But it was for the greater good.). So, I say “thank goodness for high oil prices” if indeed ten years from now we can look back and realize that the price pinch forced us into greener technological solutions for energy, transportation, and lifestyle.

Green: To Begin or To Become

2008-04-29T14:41:00.007-04:00

Last week, HP made public a list of its largest suppliers as part of their annual Global Citizenship Report. According to Judy Glazer, director for HP's Global SER Operations, the greater transparency is intended “as a mechanism for accelerating the effort to raise standards across the industry.” HP hopes to create greater accountability for their vendors to become green, no doubt, in an effort to uphold HP's own environmental responsibility.

As I thought about the potential impact of this report, I couldn’t help but become skeptical over the prospect of actually catalyzing change on such a large scale. I began to wonder, is it more practical to become green starting with an existing product design, components, and manufacturing processes... or would it be easier for people like Judy Glazer to simply strike out on their own with a new start-up green business? Or, better yet (for HP, that is), for HP to spin off a new company to meet the demands of green manufacturing.

Without a doubt, starting up a new company presents many challenges of its own. But, each of these HP suppliers will have to make dramatic changes to their own well-developed products individually. Then, one must also ask the question, if HP went back to the drawing board and redesigned their products to be eco-friendly, wouldn’t their component specifications change entirely, thereby requiring a new vendor list altogether? Is reforming each individual component of an existing system without changing overall business operation really the way to bring about monumental change?

A friend of mine recently launched Symphony Motors—an electric car company in Indianapolis—and expects to have a product on the market by 2009. He is using components and suppliers that are rarely seen in the Detroit industry. Many of his engineers and vendors were dismissed from major automobile manufacturers for thinking “too creatively” and threatening to "rock the boat." Today, Symphony Motors is well on the way to being a part of what could be the biggest market disruption in history.

So, where does your company stand today? Can you become green? Or, will you go back to the drawing boards in order to begin green?

Avoiding Commoditization with Hi-Tech Solutions - Part III

2008-04-18T11:38:00.002-04:00

Part III - What’s your company made of?

It is true most managers recognize the effect internal culture and innovative thinking have on the success a company experiences. However, it is also true many companies lack deliberately implemented strategies which connect the two. The development of an internal climate, in businesses like these, is left to chance — with an assortment of values, attitudes, and beliefs battling for supremacy. If we understand that culture plays a role in helping a company set itself apart from competitors offering similar products or services, wouldn’t it make sense to invest in its development and differentiation?

It is important to understand that innovation is more than just creativity. Hiring creative thinkers is certainly an important step in the process, but innovation requires the execution of creative ideas in profitable ways. Companies skilled at this distinguish themselves from competitors and avoid commoditization by providing customers with valuable and unique offerings. Carrying out creative ideas depends largely on the environment they are pipelined through.

World renowned innovator Google has taken steps to protect the culture they have developed. The circulation of employee happiness surveys, company-wide ski trips, and transferable stock options—which can be sold via online auction for immediate profit—are all unique benefits designed to boosts Google’s employee retention and maintain their established culture. But from a market standpoint, the net effect is a customer perception of Google that sets them far apart from their competitors.

It is also important to consider the role employees play in a company’s quest to avoid commoditization. Take Southwest Airlines for example, which provides employees with a weekly message recorded by CEO Gary Kelly, a monthly newsletter, employee spotlight awards, and a daily company news e-mail. According to Senior Vice President of Corporate Communications Ginger Hardage, the goal is to provide employees with enough knowledge and information to act like partial owners of the company and understand how their behavior contributes to customer perceptions of the company. In this case, the connection is clear. In highly competitive industries, where differentiation between competing products or services is small, employees are the “X-factor” with the ability to set your company apart.

Finally, remember the “fun factor” is important to many employees. Many successful companies have created opportunities for employees to interact and connect with each other. At Cxtec, a computer network hardware company, new hires push around a doughnut cart on the first Friday of each month in order to meet fellow employees in every department. Besides promoting an environment of improved communication and support, an approach like this also helps to strengthen a company’s internal culture by explicitly exposing new employees to the atmosphere and norms they will be part of.

The goal of any company looking to thrive in a competitive market is avoiding commoditization. Once the connection between internal culture and differentiation is made, a company can begin developing and managing the atmosphere which guides company practices on a daily basis.

Avoiding Commoditization with Hi-Tech Solutions - Part II

2008-04-07T13:50:00.003-04:00

Part II – “Dare to be Un-Shopped”

The phone rings. “Carter and Company, this is Nick.”

“Hello,” the caller avoids pleasantries and gets right to business, “I’m trying to get quotes for…”

Calls that begin this way may invoke excitement for salesmen, but it’s a frightful indicator of a commoditized market. Last week, we looked at how customer perception is the primary factor that drives once-vibrant and profitable markets into the doldrums of price-warring competition. This week, we’ll focus on changing those perceptions and generating leads interested in your sharp mind more than your sharp pencil.

Innovation by differentiation

Distinguishing your product or service from those offered by the competition is primarily a function of marketing. Consider Starbucks, which charges considerably more for a cup of coffee than the rest of the industry. How is this elevated price accepted by the customer? Think package design, product styling, and customer experience. Starbucks hangs pendent lights over their bar and features local artists on their walls to create an environment favorable to positive customer experiences.

In high-tech markets where retail visits are rare, the sales approach itself can also be a marketing tool. For example, deliver “proposals” to potential clients instead of quotes. This allows for elaboration of the standard features of your solution sale.

Innovation by addition

The simplest method of offering a “solution” sale is to bundle services or auxiliary products with a commoditized product. Tech support and training, for example, are add-on services which are commonly offered. General Motors has effectively achieved innovation by adding On-Star to many of its vehicles.

Innovation by innovation

Finally, there is innovation by innovation alone. Companies like Apple redefine common products all the time. Their business approach results in products priced higher than comparable products and their sales are not affected. Similarly, you might recall when Autodesk realized their need for this type of innovation in the mid-90’s. Although AutoCAD had been their flagship for over 20 years, they expanded their product line through acquisition and spawned a new era of growth for the company.

Regardless of the strategy for avoiding commoditization, for manufacturers and suppliers, the desired result is the same. When a consumer perceives your product or service as beyond compare in its total offering, they won’t have the luxury of shopping it around. If you want to restore your profit margins to the levels they once had, you must dare to be un-shopped.

Avoiding Commoditization with Hi-Tech Solutions - Part I

2008-03-27T12:14:00.002-04:00

Part I – “From Concept to Commodity”

If you are a manufacturer or a supplier, you have most likely experienced both the thrills of a new product introduction and the plague of petty, price-warring sales. In the short time after a new concept is introduced (provided that it is viable) there is a period of rapid growth and high margins. However, as the market matures and “early adoption” is long forgotten, commoditized prices ensue and you’re left wondering, “What next?”

In next week’s article, “Dare to be un-shopped,” I will address specific strategies for avoiding, or at least prolonging, this phenomenon. However, the first step in addressing the problem of commoditization is to understand the business factors that cause it.

When asked about their plight, suppliers in a commoditized market are quick to tell you it’s those nasty competitors they have, always dropping prices. This may be a true observation from one perspective, but the reality is that competitors don’t drive markets, consumers do. Where you see so-called “pant-dropping” prices, it is usually in response to shrinking market share that results from a flood of competition. However, where you see this flood of competition, you’ll find it is in response to unmet consumer demand.

According to capitalism, competition is good. It keeps prices equitable and motivates innovation. So what is the difference between equitable prices and commoditized prices? Simple… the absence of innovation. When the most innovative new concept that competition pushes us towards is to make our product less expensive, commoditization has begun.

So, how can it be said that consumers, not competition, are the driving force of commoditization? When consumers perceive that all products are the same, their only real factor for selecting one supplier over another becomes price. The key for every business is to not become concerned with the competition because in the end, you cannot prevent competitors from entering your market. Instead, businesses should focus on the consumer’s perspective. If to the consumer you have no competition, then price is the last thing on their mind.