The 90% Rule Network

Why is diversification such a minefield?

admin — Tue, 07 Sep 2010 15:25:14 +0000

People hear the word diversification on its own and immediately start to think, gotta do something new, at any cost. That means that they start to get into new products and markets that they don’t really understand too well. The words that I like to associate with diversification are next-step and logical. They help to focus companies on what they are great at so that they can better understand what they can or should do next. Apple is a really good example for knowing what they are great at – design-driven, personal technology – which has helped them move from computing to i-pods, the i-phone and now the i-pad.*

-Ken Tencer

*Adapted from an interview on The Business Coach, Episode 77 on Business Expansion Strategy at http://www.profitguide.com/podcast/532–podcast-77-business-expansion-strategy

Little Things Make a Big difference

admin — Wed, 18 Aug 2010 18:26:06 +0000

Remember the old saying, “Little things can make a big difference.” We all have examples from our own experience of the little things that make us loyal to certain stores, products and services. Or make us never go back.

One such example for me is my cellular provider. I am sure you remember how phone companies locked you into long-term contracts and rates that would remain high with no relief unless you paid a penalty to get out of the contract, usually by switching providers. Where is the benefit to the business in that? Make a little more in the short term but lose the customer forever after only a year or two. It’s no wonder that providers were constantly churning customers.

My business’ cellular service provider has managed to keep me for many years now. Why? Because I get calls on a fairly regular basis from their customer care department. They say that they have been monitoring the use of my business’ phones over the last few months and have found a less expensive monthly package for me and if I agree to it today they will discount the overages from the previous month. The result? I keep coming back (and, in fact, adding more phones).

When was the last time that you sat down and asked yourself and your management what ‘little’ thing you could be doing to build a better relationship with your customers?

-Ken Tencer

Google’s Android Leverages Their Core (the second time around)

admin — Mon, 09 Aug 2010 15:14:56 +0000

It was recently reported by industry tracker NPD that smartphones running Google’s Android software were the Q2 top sellers among consumers in the United States. It is an amazing feat for Google and it made me think about how innovative and savvy their move to the mobile market was…the second time around.

Google’s first attempt at entering the mobile market failed. They initially introduced their first physical phone, the G1. This phone was to be offered free of charge to gmail users and meant to be financially supported through advertising. This phone was not received well. To our way of thinking, this stems from Google stepping away from their core focus on search and information technology, and making a misstep into the world of hardware.

The success of Android highlights a company that re-analyzed its market penetration strategy and re-focused on what they do best — offering innovative technology with some very cool new search functionality. Google’s newest search innovations have been developed primarily for the mobile audience. Take for example their new service that lets users take a picture with their smartphone and use the image as search query. Want the service? You need an android phone.

For Google, the second time’s the charm! Their Android is a great example of taking the time to better understand your core competencies and find new and innovative ways to leverage them to charge growth.

-Ken Tencer

My Own Personal Cult Brand

admin — Tue, 27 Jul 2010 12:57:23 +0000

I recently received an e-mail from my long-time car dealership (www.buddssaab.ca) announcing the exciting new (old) direction for Saab, “Spyker Chief, Victor Muller, says he can spark a similar renaissance in a Swedish brand once renowned for its innovative design and technology. ‘We’re going to be completely different to how GM dealt with Saab,’ he says. ‘It used to be a cult brand and it can be again. We don’t need to go out and find new customers – we just need to win back the ones we’ve lost,’ he says. ‘Saab customers were the most loyal and educated in the industry’. The fact that they left, means they must have been disappointed.”

Two things struck me in reading the announcement that I thought that we could all do with reminding of:

	1.	Don’t alienate your core customer! Know them, love them, service them to death. They are your single greatest source of repeat and referral business.
	2.	Know who you are as a company and avoid all temptation to stray from it. Truly, you don’t have to be the biggest company in the world to be great. If you doubt it, pick up a copy of the book Small Giants: Companies That Choose to Be Great Instead of Big by Bo Burlingham. Entrepreneur or corporate titan, it will change your outlook forever.

My own personal cult brand? Yes, I am one of those Saab fanatics to whom Mr. Muller refers. Time to win “me” back. The lesson to all of us, don’t lose “me” in the first place: I am your bread and butter customer.

Brand Architecture®: Every Breath You Take*

admin — Tue, 20 Jul 2010 13:34:26 +0000

Great buildings, the ones that leave a lasting impression while serving a functional purpose, begin with a solid blueprint, based on information assembled by the architectural team. In the marketing world we often hear the term “Brand Architecture” (registered Trademark of Plunkett Communications Inc.) and it’s an accurate term when it is properly understood. The dictionary defines an architect as somebody whose job it is to design buildings. That’s a little bland for my liking—sort of like calling the Beatles “a band.”

I would say that brilliant architecture transforms the landscape in unique and creative ways, ways that touch us emotionally and intellectually. So too does effective brand architecture, bring together vision, knowledge, experience, needs, benefits and voice that together provide the structure, inspiration and personality that determines a lasting brand. Every successful brand (product, service or cause) is built on solid and well-defined brand architecture.

Brand Architecture is designed on the premise that every touch point of a brand is interconnected and needs continuous management. A brand is a living, breathing entity. I often say that every brand architect should have as a theme song the platinum hit by the Police, Every Breath You Take* (“ … every move you make, I’ll be watching you”). Because its every move is “watched” and under scrutiny in the marketplace. It must offer authenticity in representation and consistency in delivery. That means never underestimate the importance of every touch point in brand creation, delivery and communications. How your brand looks and performs (“every breath it takes”) should be an orchestrated part of your daily thinking — leaving the one hit wonders to the competition.

*Every Breath You Take from 1983 album Synchronicity by The Police

-Ken Tencer

Linking Marketing and Sales Can Be as Easy as Dialing the Phone

admin — Mon, 05 Jul 2010 13:32:24 +0000

“At some point somebody has to sell something”… Let’s make it sooner! This opening line of Chapter 6 of The 90% Rule resonates that much louder during challenging times.

This point is made in the first part of the book because, all too often, successful companies become order takers. They have been wooed by the good times in which the phone would ring and now they sit and stare at it aimlessly, forgetting that, yes, it can dial out, too.

One of our colleagues and contributors, sales scientist Adrian Davis, President and CEO, Whetstone Inc explains, “marketing must now tie the end of their funnel directly to the beginning of the sales funnel”.

The success of innovation depends on telling people about what it is that you have innovated. Yes, there are some very strong traditional and marketing tools that can help raise awareness of your company or brand, and increase the number of people phoning in to you. But, don’t be complacent. Ensure that your lead generation process systematically ties together your innovation and marketing to a strong, proactive sales program.

I know, it can be tough. I am definitely not a born salesperson so I have made myself into a disciplined one – actively attending events, making well researched introductory calls and generally making sure that everyone in the company opens their eyes to opportunities and feeds them back to me to follow up on.

Remember, your phone is still your company’s best friend … but nobody can dial it for you.

-Ken Tencer

Does Brainstorming Really Kill Big Ideas?

admin — Thu, 24 Jun 2010 19:35:19 +0000

I was particularly disturbed and confused by the front cover of the July 19th edition of Canadian Business that boldly proclaims, “How brainstorming kills good ideas”.

Disturbed and confused at least until I got to what I will call the moment of truth (on page 91), “…people in groups examined a more limited range of suggestions. The reason, according to Kohn, is fixation. That is, as soon as one member of the group offers an idea, the others get stuck on it and conform their own thinking to the suggestion. Creativity, in effect, is stifled. In many cases, we may not even be aware that fixation is occurring”.

So here’s the thing … brainstorming, ideation, creative thinking (call it what you will) is something that needs to be lead by an outsider who is an expert at leading discussion through a thoughtful, proven process. Throwing the same group of people into the same room to discuss the same issues lead by the same boss with the same bias (that you probably hear expounded daily), not a good idea.

For years now, Spyder, in concert with uber researcher and facilitator Marion Plunkett (www.plunkettinc.com), has been running innovation and ideation roundtables and workshops that result in dozens of good, implementable ideas from the small, thought-provoking variety to the breakthrough, wow! type.

My headline and hypothesis? Brainstorming: Don’t Go It Alone.

-Ken Tencer

National Post Review: The 90% Rule

admin — Mon, 14 Jun 2010 15:33:57 +0000

In case you missed it, the National Post has reviewed our book, The 90% Rule.

The Post reviewer says that The 90% Rule offers “useful suggestions for determining which part of your business is the part that should be expanded; defining its brand, and how to position and market it.”

For businesses looking to grow, the writer gives us two thumbs up! “If you’re considering expanding a business or product line, it’s worth having a look at The 90% Rule.”

If you’re looking to expand your business, you need to know The 90% Rule. And right now you can get it at 40% off.

To order a copy, visit www.90percentrule.com and enter the code 66XPS2DS to save 40% until June 30, 2010. (At this rate, you may want to order copies for your associates, too.)

The 90% Rule works best as a team sport. If you are considering a thought-provoking keynote for your corporate retreat or annual meeting, or a hands-on innovation workshop, please contact us. We would love to get your team excited about the future again.

Thanks,

Ken Tencer

Innovation: Translating an idea into a sale

admin — Mon, 31 May 2010 13:34:27 +0000

There are many definitions of innovation but, as always, business is ultimately about making sales. So, let’s get to the point. To be successful on a continuous basis, you need new ideas; one’s that can be commercialized. What does that mean? Your idea is relevant to your current or next-great customer group, and that you have the means to bring it to market in a timely and profitable manner.

Where do the ideas come from? They certainly do not come from staring at the same four walls. They happen when you look through the window at the changing landscape beyond because inspiration comes from everywhere.

We suggest looking at innovation on three levels when you meet with your R&D, marketing, sales, engineering and finance teams to inspire holistic (not industry or company-specific) conversations.

- social innovation (movies, events, books, ads, programs)

- industrial innovation (seen, heard or experienced in other industries)

- category or brand innovation (relevant to your brands or business categories)

So, the next time that somebody asks if you have seen a great new movie or tried a super new product, don’t just answer yes or no. Remember to ask what they liked about it and why.

The great ideas are already out there, right in front of you. You just have to remember to ask and act, and the sales will come.

- Ken Tencer

Olympic Athletes Do Not Achieve Greatness Without a Coach

admin — Mon, 26 Apr 2010 15:38:54 +0000

At a recent keynote address, I found myself asking attendees if they noticed the one thing that all of the athletes at the winter Olympics had in common, “ A coach.”

It is amazing how many growing companies do not have a support system (formal or informal) in place to support the founders, owners and C-suite. Why is it that we expect ourselves to have all of the answers when world leaders in performance (athletes and businesspeople) regularly have advisors to turn to in the form of individual coaches or formalized boards of advisors or directors.

As Rick Spence asked in his Profit Magazine article, Wanted: Good advisors, Why don’t more entrepreneurs use advisory boards? What does an entrepreneur do when she runs out of ideas? Or when he realizes he needs to be more systematic about gaining new business contacts, more professional about setting strategy or more proactive about seeking out management mentors? One solution is to form a board of advisors—a group of experienced businesspeople with complementary strengths and skills who meet occasionally to discuss the progress of your business and suggest ways you can pull up your socks.

Maybe I was just tired of listening to my own advice but I know that my inclusion of a group of trusted advisors has pushed, prodded, prompted, focused … moved my business in different directions and to new heights.

Remember, business is a team sport.

-Ken Tencer