Don't Lose Sight of Your Brand

I was at a political event the other day for a candidate I am supporting. This candidate has a rock-solid personal brand:

1. Extremely hardworking

2. Intelligent - does the research and studies both sides of the issues.

3. Honest - no sugar coating, tells you like it is both good and bad.

4. Caring- about all people but especially those the candidate represents.

5. Integrity

During the conversation the candidate expressed great concern that their opponent is getting greater frequency and volume even thought this is primarily due to their input from personal wealth. This concern is justified, but I think there is a lesson here.

Brand trumps Wealth

Just as a candidate wants to know what the competition is doing and saying we as business owners also want to know about our competition - to an extent.

If we expend a tremendous amount of time and resources chasing the competition we take our eye off the ball. If we try to constantly counter their actions then we will find ourselves playing catch-up with no finish line in sight.

If your business has a strong brand utilize your strengths and move accordingly. In this example, I suggest capitalizing on the strengths and reaching out to customers/constituents to help with the frequency and volume.

Rethink Your Competition

I also think the strengths that this candidate has with their brand can master the wealth of their competitor. How? By thinking about the competitor in a different way. As in business, your greatest competitor is your customer's mind. You have to show the customer how you help them and what value you have to them.

A candidate can do the same not by attacking the competitor, but by getting into the customer's mind how they help and what value they bring to them. I will admit there will be some voters this won't work for no matter what you do or say because they are hard-wired to think they way the do, but swing voters will want to know your value to them.

Don't Loss Sight

Know your competition and keep informed of their movements, but take your finger off the competitor's pulse and keep your eyes straight ahead; otherwise, you'll lose sight of your real purpose and passion. Utilize your personal brand.

What do you think?

Leaving Unspoken Value Out of Pricing

I have been working on a pricing analysis for a customer who has been struggling with feeling really uncomfortable with her prices. This got me thinking that I should share with you one of the misconceptions behind pricing that can lock our brains into a box.

We often fall into a transactional thinking with setting prices:

Product + $ = Transaction

But, pricing and sales is not solely a transaction there is much more. As an example, think about a time when you have done your best work. How did you feel? Your best work comes form deep inside of you. It is a combination of your wisdom, knowledge, security and caring to name a few. It is that "giving" of your services and products that you are sharing. In return, your customers are "giving" YOU something more than just dollars. They are a provider of generosity and caring.

In the work for the customer we are turning inward at just this level of deep understanding. We are comparing the qualitative aspects that come from within. This has allowed the customer to start thinking about her pricing from that level. She is now realizing her unspoken value of her pricing.

Are you leaving unspoken value out of your pricing? Let me know your thoughts and thanks for reading.

Eileen is Gone.

Eileen is Gone.

Eileen was my 1988 Ford F150 pick-up truck that has been an invaluable treasure at my home. In 2004, we purchased her for $1,000 USD from a local veterinarian who had purchased her from a local farmer. Eileen came full of chicken feathers in the heating vents so whenever we switched the heat on, the feathers would fill the truck cab like confetti. Her leaf springs were...well...not so springy and the family of mice that made their home in her kept us entertained with sudden appearances on the top of the hood.

Like all good vehicles in New Hampshire, Eileen's time neared the end as the road-salt induced rust wore at her body and engine. She increasingly became a challenge for the mechanics with busted bolts, fraying cables and dry-rotten tires. It was the dying alternator that finally took her life.

Boy, I loved that truck.

Eileen started like a bright sunshine filled day every time I turned the key. She supported the loads of compost, dirt, rocks, woods, trash and furniture in her rotting bed. Whenever I drove her she lifted me back to a place in time: in my grandfathers farm truck bouncing around on dirt roads, climbing up into the truck and hopping on the bed for a spin around the neighborhood.

Over the five years Eileen had her typical repairs, but she was a great during that time. Her average cost per month was about $42 USD. I debated whether to keep her going. Her ability to help with the chores, bringing back fond memories and keeping me entertained was of value. I needed to figure out what was the price of this value.

How could I set a price?

First, I determined how my needs were met with the truck then what would I be willing to pay for the functions and features of those needs. I estimated she worked 6 hours a week at an hourly rate of $25 thus, an annual amount of $7,800 USD. Next, to try to capture the aesthetic value I utilized my cable television bill because of the entertainment of the truck thus, $648 per year.

Eileen's Costs

Evaluating her price + life cycle + risk I used the following data:

Average monthly cost of $42 thus, $504 per year.

Her life cycle began to really suffer the last two years deteriorating at a rate of 60 percent.

Her risk factor increased with the continued rotting of tires and leaf springs.

Comparison

After, the mechanic unsuccessfully tried to revive her alternator and her value as scrap metal increased, her price value became even less. Combining her benefits and her costs allowed me to think of her with the mind of a customer looking at a product. Granted she worked hard and helped with carrying the heavy loads and she was a blast to drive but I had to make this comparison, like a customer does when selecting our products and services.

It was her risk factor that continued to weigh heavily on me. She had begun to make me feel less safe driving her as her squeaks, rattles and rolls got louder. The tire began to split and her reliability the last month waned. I researched her replacement competition finding results that showed it is time. So, like a good customer would determine I weighed the options.

Eileen's New Life

Eileen will be reincarnated in another form as she journeyed to the scrap yard today. Her memory will last with my family and I. She served all her owners well. Now, my search begins for another truck with a good price value. I know I can never replace Eileen, she was unique.

How do you determine the value of your products/services/purchases and compare the risks?

Thanks to Rebecca for commenting on my last post and thanks to everyone reading.

Qualify Your Lead Generation! It's Not Me.

I never lived there! You didn't qualify your lead generation! Really, it's not me.

I received a letter in the mail today from the law firm O'Connell & Aronowitz notifying me that "leads hazards were found at an Albany property" where I once lived and if my child was poisoned I could receive a settlement.

I called the firm and spoke to the attorney who signed the letter. I felt the right person should be contacted in case their child was affected. And I was curious how they found me. The attorney apologized several times and explained they did a computer search and located my mailing address. While it seems this firm did some decent efforts in generating a quality lead they did not do enough upfront work to eliminate me from the list.

A quality lead is important before embarking on any direct marketing, no matter how large or small your campaign. Spending some extra resources on flushing out the futile contacts can make a greater impact on your response rate and overall return. You will convert a lead to a first call at a higher rate, your new sales person will ramp up quicker and your sales team will increase their win rate.

The direct marketing industry estimates that front-end research is only about 15 percent of total direct marketing campaigns. Here are some considerations prior to sending any communication out to your leads.

1. Know your audience. Your lead should want or need your product or service. In the example I gave, a little extra research would have disqualified me from the list. I didn't need their legal assistance.

2. Evaluate other potentials. Don't be too narrow in your market segment approach. As an example, say you have a new internal frame backpack. You may identify a mountaineering organization that would sample the packs for you and give you a good response rate, but they may be too narrow a focus. This small group may not be sustainable long-term, over-night hikers could be contacted as well.

3. Evaluate your message. Spend time developing your copy so pertinent information about how or why your product is useful, improved, necessary, etc. Speak in their voice. The letter I received from the attorney did this very well, no legal jargon- it was straightforward and clear.

Do the homework. Spend the time or have someone do it for you. Resist the temptation to buy a list and blow out your campaign. The effort up front will be worth a quality lead and your investment will have a greater return.

And as always. Let me know your thoughts. Thanks

Sometimes It Just Doesn't Feel Right, but You Keep Me Going

I haven't written in a few weeks because I have found it difficult to put any thoughts of marketing in my heart and mind. I question the importance of it all as I read daily about human and environmental suffering across the globe.

I feel weighted down as I read daily about the over 5 million homeless people in China who have been affected by the earthquake and the after math. Caring for the injured, the sorrow of lost loved ones, the environmental catastrophes and the stories of people trying to rebuild.

I read daily about the 134,000 dead or missing people in Myanmar who go hungry as aid is held back by a government that rejects offering of aid from the U.S. The stories of the hurdles the few aid workers that are allowed in are facing. It is like the government is holding these innocent people hostage by not allowing assistance.

The news of the communist Maoist government plans to strip away the Constitution of the Nepal and replace it with its own regime's rules. I try to imagine what would happen if our government completely abolished the U.S. Constitution stripping away our freedom and rights.

I watched this past Memorial Day of the stories of New England soldiers who have lost their lives in a war with no strategy and inadequate equipment to protect our troops.

Daily I read, hear and see total disregard for our planet and all her gory. The debates, discussions and laws that made putting greed, convenience, self-interest and NOW thinking first and foremost instead of acting and doing with the consideration and respect for seven generations.

But I'm writing today because of you. You are the business owners, employees and supporters who are working hard to make a difference. You are creating new technologies to protect and conserve our planet. You are growing, feeding, and supplying our local economy with goods and service. You have a business that nourished the soul, heart and mind of others. You are building businesses based on a triple bottom line.

For all of you I Thank You. You keep me going motivated and knowing that through all the sadness there is greatness and care for our planet, our people and our generations to come.

So, as a thank you, I would like to share some Marketing with those of you that may be considering having your own blog. Here are a few strategic questions to ask yourself:

1. What are the reasons that you want to blog? Is it to educate readers about your products or services? It is to establish yourself as an expert? What is the focus of your blog topic?

2. What are some objectives that you can measure by your blog? For instance, is it subscribers, increased sales, generate traffic, obtain comments from readers or other bloggers?

3. Who are you targeting as subscribers/readers of your blog? Are they other bloggers, your existing customers, potential customers, a certain demographic?

These are a few questions to get you thinking. The other huge consideration is how much time can you/will you spend on blogging – reading other blogs, writing your blog, researching, replying to comments, etc. And based on my experience as posted here sometimes you will feel that blogging isn't quite the thing to do at times.

As always, I welcome and encourage your comments. Thanks.

The Departure of Interacting Relationships in Business

I recently finished reading the Sushi Economy by Sasha Issenberg, which by the way, is a great book if you are a business geek like myself or just want to learn about the sushi industry.

One take home I'd like to highlight from reading the book is the foundation of sushi service. This foundation is crumbling from a food-to-customer-relationship to a food-to-consumer-departure. Eating sushi used to be an integral experience of eating high quality, hand-selected fish, ceremonially prepared by the chef and blending the interaction of chef and patron, selecting and enjoying the meal. It was the relationship of linking the sacred source and preparation of food to the consumer.

Throughout the book, I found how this interacting relationship is dissolving in the sushi industry as it changes from small-personalized players to larger players whose motive is money. Sushi is fast becoming the new fast-food, where quality gets replaced with profit and reproducibility. A trip to your nearest supermaket's fish department will likely find you staring at low-grade or imitation sushi neatly packaged in to-go boxes and, oh, don't foregt the free chopsticks.

This disintegration is similar to what I think is one of the reasons for the troubles at Starbucks. With the expansion of drive-thru kiosks, the move to every street corner and interstate higway rest stop the departure of the relationship began. If you ever want to get a lousy cafe mocha made by a frowning, unfriendly, uninspiring employee (notice I didn't say barista) stop at one of the highway Starbucks and experience some of the best examples of poor customer service. It is about time Howard Schultz returned as CEO to fix this customer breakup.

About 20 years ago, Schultz came back from a business trip in Milan, Italy with the desire and drive to bring to the United States the love relationship he experienced in Milan's coffee shops. It was the barista's relationship with the coffe bean and the customer, like that of the sushi chef, that he wanted to build into a business. The barista shares his/her knowledge and passion of the coffee bean, the manner in which it is brewed and served and brings this love to the patron in a rich and bold event.

I'm a fan of sushi and Starbucks. When I walk into my favorite sushi restaurant, Sake, in Portsmouth or any Starbucks I want that relationship experience as best as they can give it to me; an integral relationship between the source of my food, the passion of the chef or barista and the interaction between them and me. I want to enjoy myself, enjoy my food and know that the person behind the bar enjoys bringing that connection together. I will gladly pay extra for it because it brings me value.

As micro and small businesses we have advantages with making similar connections because often we are in direct contact with our customers. Take a look at your business and what interacting relationship you bring the customer's experience. Also, do you think these types of interacting relationships are departing from businesses? Let me know.

Image by tiarescott via Flickr at Creative Commons license.

Thanks to all of you who have been letting me know how much you are enjoying this blog

The Value of Measurement

A few weeks ago, I was talking with a small business owner I work with on a volunteer project for a non-profit organization. I asked him about a direct marketing effort he undertook about a year ago that was targeted at a specific market. I wanted to know if it was a financially successful campaign. Did he receive any new leads or business? I was not looking for the actual numbers, just some idea of the results.

"Maybe a couple of leads. I guess I could have measured it".

What information do you need gather to measure the value?

1. Keep track of the costs of your direct mail piece (design work, printing, postage, handling, number of pieces, etc.).

2. Labor. If you outsource the work then use those costs. If you are doing the work yourself apply an hourly rate to your time and keep track of the hours you spend on creating the direct mail campaign.

3. Once the piece is mailed, measure how your leads found you by asking them the simple question of "how did you here about us?" If an existing customer contacts you, ask them if they saw the direct mail piece. Keep a record of the answers.

4. Keep track of the sales dollars from the people you asked or if they volunteered the information or if you had some kind of feedback option, such as a coupon.

At the end of the campaign, total your costs and evaluate against it your sales generated, your new leads, your increased business or whatever your objectives were for the direct mail campaign. Measure against those objectives.

The value or not of your campaign is ultimately your decision. Measuring doesn't have to be as difficult as measuring ice thickness on a frozen lake in Alaska.

If you have run a campaign how or did you measure the results?

Image by Ra64 via Flickr, by Creative Commons license

Re-Think Your Marketing

I know on your income statements and balance sheet you have your brochures, website, business cards and such listed under the expense line. They are all costs your business incurs, but what about turning your thinking around and viewing your marketing as what it really is - an investment for near and long-term returns.

When you market your services or products you are engaging with people. You are sharing with them about what you do or how you help them with their challenges or pains or you are educating them or helping them with their decision making before they make a purchase. You are giving and this giving is often reciprocated with you receiving.

Thinking about marketing as an investment changes the manner in which you speak to your customers. It removes the hype and turns down the volume. It allows you to engage and connect with them more one-to-one. This will take more thought, time and resource on your part but the rewards are greater long-term. Remember, just as there are financial advisors to help you with your personal long-term monetary investments, there are marketing advisors to help you with your customer investments.

Re-think your marketing.

Retinal Tracking Device Improves Product Development

In the Wall Street Journal (subscription required) October 3, 2007 article "A Virtual View of the Store Aisle" Ellen Byron reports about the retinal tracking device developed by Kimberly-Clark that improves their product development cycle and their store shelf strategy.

The article explains how in a specially designed mock virtual store Kimberly-Clark can help them better understand consumer behavior and improve the new product development cycle.

Kimberly Clark uses the research data to help promote their new products to big store retailers like Wal-Mart, Target and Safeway. It allows them to be able to partner with the retailers and add value to their products with the service. As an example, they mocked up a Target store aisle from everything from the white floor tiles, the aisle width and length and the lighting to see how their new Huggies Natural Fit diapers red package will look to the consumer as they walk down the isle.

I look forward to find out more information on the results of their work and sharing this with you.

I encourage you to read the whole article it is pretty interesting stuff.

Growing Your Unique Selling Proposition with Harmony

Let's use our imagination for a moment and say your business is a sunflower. You want your business to stand out in a field of sunflowers so a potential customer picks you over the other choices in the field correct? One way to do this is to develop a USP in a meaningful manner.

How do you determine your harmony? Find the roots of your tree.

Take a listen to an excerpt of this EarthMama song. Close your eyes while you listen and start thinking about your Harmony. What comes up for you?

Thanks to Jonathan for commenting on my last post and for those of you who emailed me with notes of appreciation for the blog.

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