Digressions

The Art Of Web Conversion: Persuasion Architecture

2009-05-27T21:34:04-04:00

Sure, I know what you are thinking. Persuasion Architecture is just some new lame marketing term. No, not really. It is what Information Architecture was intended to accomplish but never did. This is because information architecture is more like the Dewy Decimal System - or at least it is treated as such. Things are sorted into logical buckets and dumped into a set of wire frames that are then coded into a flashy website with cool colors and flash.

What is wrong with that you say? Well, for one thing, it never really solves the problem optimally. It is not just about making things easy to find in a logical manner, its also about driving action and interaction. Its about engaging the user and prompting them via a good design to make a decision or take an action.

Now think about how architecture - GOOD architecture, works. Whether its landscape architecture or brick and mortar based, the best architects know how to combine form and function optimally. They create a design that forces you to subtly discover things that they intended for you to stumble upon. As you walk down the hall you are presented a cubby with a striking piece of art that forces you to stop and stare. You then turn left and step into what seems to be a secrete nook that opens up into a library that you must investigate. Every room, hall and space are treated as a way to entice the "user" to interact with the design. Its about creating a world of planned discovery.

So, as you approach your next web project ask yourself, are you going to just plant grass between the pathway?

Public Relations 2.0

2009-05-21T20:00:00-04:00

Are you wired into PR 2.0? If not, here is a quick list of the sites that should be on your radar:

Get your message out there......

Stumbleupon.com

2009-05-18T20:16:20-04:00

Have you ever wondered how big the web really is? Are you curious to what in the world could be filling up all of those vast corners of the internet? Look no further. Take a ride on www.stumbleupon.com. This cool invention will bring you the nooks and crannies of the web. Here is how it works:

"Using a combination of human opinions and machine learning to immediately deliver relevant content, StumbleUpon presents only web sites that have been suggested by other like-minded Stumblers. Each time the 'Stumble' button is clicked, the user is presented with a high quality web site based on the collective opinions of other like-minded web surfers."

You can personalize your browsing or you can just freely stumble (my preference). I dare you to give it a try. You will find yourself addicted in no time at all. Happy stumbling.

Six Rules of an Effective Sales Person

2009-05-05T20:00:00-04:00

I have carried a bag to earn a commission, and I have also managed sales teams as an executive. In both experiences,I can honestly say that there are six basic things a sales person needs to follow to be successful. So, beyond the old adage from Thomas Edison of "the harder you work the luckier you get", here is what I would suggest that every sales expert should try to adhere to.

Your quota is not your goal. It is what you need to attain to maintain your employment. Your goal should be what you want to make financially – which should be well above your quota.
There are no cold calls – only warm ones. You need to do your homework on the client before you call them. There are a ton of resources these days – from hoovers.com to linkedin.com. If they exist, they are online. Find out about them and determine your conversational path BEFORE you call.
Understand who you are speaking to and craft your value proposition accordingly. A CFO wants to know about ROI. A COO wants to know about efficiencies and production. A CMO wants to know about return on marketing dollars spent.
Know the answers and the questions for every objection. You should be able to concisely reply to any issue in a relaxed and convincing manner.
Be an expert of your territory / segment. You should be up to speed on every customer in your market, and be ready for any inquiry from a superior or competitor.
Sell like a consultant, not like a car salesman. You must establish credibility first. From there you can develop a true business relationshion. From that point, you can earn trust - and you can't sell effectively without trust.

BlackBerry Curve Outsells Apple iPhone in First Quarter

2009-05-04T20:45:00-04:00

A buy-one / get-one free campaign has allowed RIM to surpass Apple's iPhone in sales during Q1 of 2009. According to a recently released press release from NDP, "an aggressive “buy-one-get-one” promotion by Verizon Wireless helped RIM’s BlackBerry Curve move past Apple’s iPhone to become the best-selling consumer smartphone in the U.S. in the first quarter (Q1) of 2009. RIM’s consumer smartphone market share increased 15 percent to nearly 50 percent of the smartphone market in Q1 2009 versus the prior quarter, as Apple’s and Palm’s share both declined 10 percent each." Read more.

Marketing Paradigm Shifts

2009-05-03T11:38:29-04:00

There are tons of small companies out there working to change the playing field in the industry you compete in. Are you aware of them? Are you promoting similar R&D in your own firm? Have you asked yourself lately, "What is the next marketing paradigm shift in my industry?" These shifts will change the way your industry is viewed and how it does business. Here are a few recent examples:

CD's and Radio to iTunes
DVD's and TV to Tivo
Classified ads to Craig's List and eBay
Traditional Networking to Linkedin / Myspace
amazon.com to blingdaily and woot.com

I have been chatting with a few folks lately who have been targeting some real cool evolutions for the retail technology space. If they pull it off, it will be yet another paradigm shift. If you want to know what ideas are being incubated these days, then check out the incubators themselves. Here are two sources to wet you appetite: Capital Factory and LaunchBox Digital.

Gilt.com and Woot.com

2009-04-30T20:45:00-04:00

So my last post prompted a few more suggestions of outrageous shopping sites like blingdaily.com. The two that rose to the top of the heap are gilt.com and woot.com.

Gilt Groupe "provides access, by invitation only, to Men’s, Women’s and Children’s coveted fashion and luxury brands at prices up to 70% off retail. Each sale lasts 36 hours and features hand selected styles from a single designer."

Woot is "an online store and community that focuses on selling cool stuff cheap. It started as an employee-store slash market-testing type of place for an electronics distributor, but it's taken on a life of its own."

I have not been inside Gilt yet as I need to be invited (hint hint), but I did take a peak at Woot. It has a bit more cluttered feel than blingdaily.com, which is somewhat surprising considering they only sell one product a day as well. This is partly due to their quirky copy on the product. It's also because they have integrated their blog (which is an experience to read in its own right), along with some ads.

But, more importantly, woot.com has two other dedicated "woot" sites they promote - shirt woot and wine woot. I am all over the wine!

blingdaily.com

2009-04-29T21:27:36-04:00

Everybody likes a little bling. Maybe a high end watch or perhaps a new Burberry purse? Well, look no further. Blingdaily.com is your answer. Even better, the site is addictive. Its a perfect blend of the most effective and simple sales and marketing tactics on the web:

Each offer only lasts for 24 hours, and stock is limited
There is only one product a day
All products are desirable high end items like jewelry & accessories.
Big brand names only - no cheep stuff here.
There is a big ticking clock to let you know that time is short
The retail price and your savings are posted very clearly
There is a concise product description and set of specifications

I know several people who just cant get enough of this site. It is a nice twist to the old Amazon.com Gold Box concept from a few years back. But rather than burying the idea on a busy shopping site as a cute sales module, blingdaily.com decided to make their entire website around this simple concept.

The website screams, "HURRY! Buy this now or you will NEVER see it again at such a ridiculous price." It is so simple and powerful its scary. If you don't like the item of the day, you will be back each day thereafter to see what comes next. A few days ago it was a Bulova watch for $99 that normally retails in the $250 range. The next day it was that Burberry purse I mentioned, also for $99. Today, it is a Maurice Lacroix Pontos Grand Guichet GMT automatic men's watch for $999....which normally retails for about $3,600. They claim their price is at least $1,500 cheaper than any other price listed on the web.

So what are you waiting for? Get some bling!

The Marketing Upside of the Financial Downturn

2009-04-27T23:30:14-04:00

There is always a way to turn lemons into lemonade. So how about a built in way to save on marketing expenditures during this downturn WITHOUT cutting your budgets? According to a recent article in the Wall St. Journal,

"Americans changed residences less often last year than at any time since the Census Bureau began keeping track in 1948, the latest sign of how the recession and falling house prices are keeping more people in place."

This translates into less returned mail due to the lack of a forwarding mail address. It means less data spit back at you from your quarterly NCOA audits. It means your response rates could tick up. All of that means less costs and more sales. So rejoice all you direct marketers - the downturn has a financial upside.

SPIFF's: 3 Rules Regarding Special Pay Incentives For Fast Sales

2009-04-22T18:30:00-04:00

There are lots of definitions given throughout history for the acronym SPIFF. Many believe it started in the 1900’s within the furniture industry as an acronym for Sales Performance Incentive For Furniture. Today, it is applied to a new set of words - Special Pay Incentives For Fast Sales. Regardless of how you play with the words, here are three quick rules to abide by when building a SPIFF.

Short Duration: Treat the timeline for your spiff just like you would treat a special offer for a customer – for a limited time only! You need to create a sense of urgency. The longer it runs, the worse it will perform.

Cash is King: Yes, you can build them around a cool gadget, but it better be a really cool gadget like the iPhone. Otherwise your sales force will dream up tens of hundreds of other items they would prefer other than your gadget. Solution – give them the cash, and lots of it.

Align With Financial Goals: There are two primary reasons to do a spiff – to push units or to drive quick margin dollars.

In certain situations you may want to move inventory to reduce carrying costs or to get rid of last years items. Or, you may be falling short of your unit targets for Wall St. - a common reason SPIFF’s are used in publicly traded companies. For example, Dell used SPIFF's to push PC and Laptop models if they were short of targets at the end of the quarter.
The second reason is to generate more margin dollars quickly. This can be done by cutting a high margin product down to get a pop in volume while still preserving a healthy spread. If you move enough units you will more than surpass the break even in the short run.

Happy selling!

New Nike "Butte" Viral Campaign - TOTAL SHOCKER!

2009-04-17T13:44:12-04:00

All I can say is, wow. WOW. WOW! Warning up front, if you dont like to be shocked by risque advertising, then this is not for you.

I just stumbled upon this article via CNBC.com, and I am still in shock! Nike has launched a new viral running campaign called "Butte." Net, its about getting back to basics and running. The kicker is the way they convey the message via the creative theme. Net, its about running naked.

They launched the campaign on You Tube (this link will require you to verify age before you view) as well as on their own website called nikerunning.com. See for yourself. I can only imagine the responses that will be coming in from this via various watchdog groups. But I can tell you this, it will be a viral home run.

Did I say WOW?!

Will Viral Marketing Save Mexico?

2009-04-17T07:00:00-04:00

Unless you live under a rock, you know that Mexico has a teeny problem with drugs and murder lately. The impact has been a massive decrease in tourism revenue. According to an interview featured on NPR of Teresa Villareal from the Mexico Tourism Board, 28% of Mexico's GDP and 1 out of every 9 jobs rely on Tourism.

So what did the Government of Mexico decide to do? They enlisted the services of Scott Sheehan and tour operator itravel2000. The result is a massive viral marketing campaign centered on Scott's blog called WhatIsReallyHappeningInMexico.com. The site boasts videos of the former travel show host surfing, scaling mountains and sipping cocktails in Mexico.

Only time will tell if this strategy works, but you have to give credit to the Government of Mexico. They are attacking negative press that has virally spread across the globe with the right antidote - positive viral marketing.

Jet Blue's Big Wig Campaign

2009-04-16T20:42:05-04:00

Jet Blue launched a new viral online campaign a few weeks ago on their website called "Big Wigs", and its fantastic. They have captured the essance of the current economic environment and coupled it with wonderful satire. The result is a clear and concise review of the features, functions and benefits of flying Jet Blue.

Even better, they have to spend little in costs beyond the production of the creative. Don't get me wrong, they did not make these spots on the cheap - but it sure beats the TV Media spend that would have to get behind it if they went the broadcast route. By turning this into a "send to a friend" campaign they will get thousands of evangilists sending it out. Heck, I sent it to five different high level executives just today.

Bravo to Jet Blue and their agency, JWT Partners.

The Business Risk of Texting

2009-04-13T19:03:39-04:00

Imagine that your company is in a legal dispute with a client. It starts off as the classic he said / she said battle....until their lawyer presents an SMS text received by the client from one of your sales managers that completely destroy the basis of your argument. Now ask yourself, do you know what your employees are saying via text to your clients on company issued or subsidized phones?

Think about it. This is a very real possibility for you and your firm. Texting has become common in the workplace. Employees text employees. Customers text account managers. Executives text subordinates. Every text goes out into a virtually uncategorized and unregulated black hole. It's the communication world's version of the wild west.

You may be lucky if you have your own Blackberry Enterprise Server (BES) that tracks all of your handset communications. But, even then, is anyone regulating that conversation? Sure, every risk or legal department sends out messages to employees about email etiquette and warns of disclosure rules. But does anyone really talk about texting? I would bet less than 1% do.

It is time to realize that texting has become the new covert channel of communication for the business world. You don't need to be on a PC - which is standard fare for instant messaging. SMS texting is much easier to pull off at any time, anywhere. A flip phone with a keyboard is all it takes to rifle off hundreds of inflammatory and potentially damaging texts a year. The current bevy of SMS lawsuits are just focused on spam. This is just the tip of the iceberg. Just wait until millions of employees tip the scales of justice.

Subscription Swaps Are Creeping Death

2009-04-09T08:40:41-04:00

Just keep the customer. How many times have you heard this? Yes, it is true that it costs more to reacquire Acme Incorporated than it does to retain them. But while this may be true, many companies do not realize that in the world of data or technology service subscriptions, this type of behavior can also become a silent black plague. Before you know it, you are too sick to do anything. Drastic measures are then prescribed to maintain your heath. That is when the dreaded medical terminology gets uttered….”Save the body. Cut off the leg.”

So what is a subscription swap? Why is it so deadly? Can anything be done to stop it?

Here is a simple example of the swap in the form of an imaginary company called Acme Trucking. They haul freight between various locations in the Atlanta area. They have five trucks and ten employees. They have hired your companies to provide a wireless software solution that allows their dispatcher to track the five trucks on the road via GPS. This allows them to respond to new customer requests on the fly, and keep track of driver behaviors like speed and gas consumption. They have a one year subscription to your service. And, because of their size, you did not discount their pricing to any great degree. Translation – this company is a great source of margin.

Acme was doing great over the past few years and they have just upgraded their small fleet by adding a refrigerated truck to the mix. But then the economy started to stall. Acme’s customers began to ship less. Some went out of business all together. The next thing you know, the owner of ACME is at his kitchen table making the toughest decision of his life – should he sell out? He has no other choice, so he cuts a deal with the big regional trucking company. They buy his fleet, absorb his drivers, and make him a regional manager. In the process he shuts down ACME and all that surrounds it, including his subscription to your service.

It’s a good thing that you also have a deal with that big regional trucking company. Your top sales guy worked for over two years to land that account. So it really doesn’t matter if ACME was rolled into the mix, right? You will still provide the service to his fleet, just under another company name. All remains well, right? Wrong.

To land that big trucking company, you had to cut them a sweet deal. While you were enjoying a flush 30% margin with Acme, you had to cut your margin drastically to get the contract with the big boy. This is something companies do every day. It is a standard strategy to acquire a big regional player to help promote your business in other parts of the country. But, in the situation above, what transpires is a quite loss of margin for your business. It’s also a very slow cancer that can spread across a company if you are not careful.

So why is it so dangerous? Because it get’s ignored. Acme’s demise was not very high profile in your company. You have lots of sales guys. This was one of many small businesses on the rooster. The sales rep who had Acme may complain because he will lose the account revenue to the national account rep – but this is expected and usually ignored in most companies. No alarm bells go off at the corporate offices either because you did not lose ACME to a competitor. This was just another victim of economic Darwinism.

But soon the Acme’s will add up. Your margins will become compressed, and you will be forced to cut costs to ensure that you can make your bottom line every quarter. This is the proverbial death of a thousand cuts. So, can you do anything to protect yourself from the dreaded subscription swap? Yes and no.

First, you can’t stop the economic conditions. The scenario played out above with Acme is happening right now across the globe in all industries and sectors. But, what you can do is ensure that you have put in place an ounce of prevention. Review all your accounts now. Move region by region, sales rep by sales rep. Determine what accounts have the greatest risk of flight or failure. Score them in simple categories of A, B and C. Discuss if any account merits qualifying for a contract renegotiation or temporary extension on terms. If you can help them stay in the game but at a slightly reduced margin, then do it. It’s better than the alternative, which may be a massive trade out of margin. But, to that end, if they are going to go under, then none of this matters.

That is why you need to be proactive. Attack your competitors customer base to ensure that if you lose one, you gain one back. Develop new pricing and product offerings that are modular to allow for effective up-selling. Do the math on an “all inclusive” plan as well. We made more money on Direct Connect at Nextel with an “all you can eat” plan versus “pay as you go.”

Look at your messaging and improve your retention value proposition. Make sure your product seems mission critical. Position it as the first thing a company should add, and the last thing it should remove. To that end, get your sales reps in the field to train your existing customers on every bell and whistle. If you lose an ACME to a bigger player, you don’t want that new subscription to be bare bones. In short, sure up your base.

While there is only so much a company can do to fight back the tide, I believe the ones who are proactive in dealing with the situation have the best shot of mitigating the loss of blood. Survival is about creating options – and you have options. These are just a few of the things you can do to ensure that you weather the storm ahead.