I always use branding to describe all of the activities you engage in to reinforce your message. And an enormous part of this is your internal activities. Your staff activities create a sense of authenticity. — Harry Beckwith


Ugly but Reality – the Complexity of Growth
March 5th, 2012 by dave

Multifactorial.

It’s an ugly, six syllable word. It does not roll off the tongue. It contorts the mouth even to say it.

Its definition is intuitively obvious: of or pertaining to, or arising through the action of many factors.

In plain English: “It’s more complicated than originally thought.”

Pharmacogenetics for Cro-Magnons

I heard my younger brother Matt, a research oncologist, use the word in a sentence to explain to me why cancer research is so complex. He specializes in pharmacogenetics.

(Which, to my Cro-Magnon brain, sounds awfully close to the word Walgreens, where I pick up my family’s medications. But I digress.)

In genetics, multifactorial refers to the many factors that cause a disease, including the interaction of genes as well as environmental factors.

One of the assumptions of early cancer research was that, ultimately, a single cure (read: drug) would be found. I don’t know that any scientist believes that anymore. Instead, there eventually may be as many drug variations as there are humans. Each human is unique and seems to respond to the toxicity or efficacy of drugs uniquely. There’s no one drug for everyone. It may end up that everyone with cancer needs a Drug for One.

Silver bullet myth

The word is also relevant when thinking about growth.

Just recently, my firm completed a project for a client with the goal of creating a plan to increase attendance at one of its conferences by 20 percent. We looked at retention data for the previous 10 years, conducted an online study of constituents, and then interviewed both recent and long-term attenders. We even located some retention data from a competitor conference.

The results of the research confirmed once again the deep truth that rarely is there “one thing,”  especially for an already successful conference. There was no silver bullet.

Instead, there were several reasons why growth had plateaued. Multifactorial.

Thus, what creates new branches of growth is almost always more complicated than originally thought. It’s a snap if there is only one obvious lever to pull.

But multiple levers create complexity. And a 20 percent increase is a big number.

Generally, marketing can contribute only a little to that big of a bump in growth. Something needs to change fundamentally within the organization for a 20 percent rise in attendance.

Multifactorial.

 

 

 

Vouchers trump surveys
January 30th, 2012 by dave

Prospects and existing customers simply don’t think like folks trying to market to them.

I just returned from a trip out West, and of the four legs of the flight there and back, three were delayed. One was due to weather, the other two because of “mechanical failure.”

I wondered if the pilot shared too much information with us when he said, “The motor that runs the flaps is not working properly.” He then explained that generally the motor runs in two speeds, slow and fast, and that the fast was broken. Too much information, I thought. I wanted a new plane.

But soon we were off.

Not minutes after I arrived home, I downloaded my email and got this message from Delta about the delay on the outbound portion of the trip:

“We are very sorry that your flight was delayed on January 23, 2012. Your feedback on this experience is important to us. We ask that you please provide feedback on your experience while at Chicago-O’Hare Intl Airport using the survey at the link below. The survey is between 4 and 12 questions, targeting your specific circumstances, and should only take a couple of minutes to complete. We thank you in advance for your feedback and again offer our deepest apologies for this inconvenience.”

Really? Now I should be inconvenienced to take a survey after I was inconvenienced by the delay?

What will they really learn from survey results? That I was annoyed? That I exhibited the emotion of impatience, then resignation? Despair? What?

What if I were serene? Detached from the inconvenience?

Maybe the airline should just give us all a voucher for our next flight (or simply for our next drink) and call it good. No questions asked. Warm feelings all around.

That’s what a customer thinks.

They Are Laughing at You
September 3rd, 2009 by dave

A neighbor is working on a post-graduate degree.

His days in class are in chunks: Several times a year, he spends four days at eight hours a day sitting in a classroom. Listening to lectures.

There are eight experienced folks in the class. From around the globe.

professorandclass_small

The professor who is nearing retirement reads his lectures.

He puts a slide up on the screen, reads it, and then moves to next slide. That’s on the good days.

On the bad days, he reads his notes verbatim, head down. All day. Every day.

The class wants to grapple with the ideas of the lecture. To “cross discuss” with each other. To engage the professor. To apply the content. The professor shuts down the conversation with nervous anxiety and moves to the next slide.

Each person in the class has a laptop.

On day four, my neighbor, numb from the previous three days, sets up a chat room on Tiny Chat (www.tinychat.com).

During the break, he says, “Hey, let’s discuss the lecture while the professor is reading his notes.” He coaches his fellow classmates about how to join the chat online, and they all jump on. My neighbor’s first instruction in the chat room: “Okay, let’s work hard at not mocking the professor.”

Soon, the room is abuzz, online. It’s not easy to say nice things about the oblivious professor when you can discuss his teaching methods silently in real time, but the class soon begins to engage him and the lecture …

… without him.

If the professor had simply moved the eight chairs into a circle and hosted a conversation about his topics, there would be no need for Tiny Chat. At least not that day.

Gutsy Branding
April 3rd, 2009 by dave
It’s a bank that claims to not be a bank. 

And it doesn’t siphon off its customers’ money with hidden fees and service charges. Instead, ING DIRECT promises to help you save money—at a great interest rate.

In an industry in which “bank” has become a new four-letter word because of the sector’s general disregard for its customers, ING DIRECT has become a stand-out—even likeable—brand.

In an interview with CZ President Dave Goetz, Bruce Philp, principle of Brand Engineering and chief brand architect of ING Direct, and co-author of The Orange Code, identifies what your brand must do to trump the competition:

Brand & Strategy: You wrote, “… don’t dominate the category, subvert it.” How do you do that? 

Bruce Philp: People tend to use the word subversive when they really mean “iconoclastic,” or even just “unconventional.” My definition of subversive is much more orthodox.

Like it or not, when you position a brand, you have to face the brands against which consumers will compare it. In our case, we were going to be compared to the status quo, which would never be a level playing field for our low-cost business model. If the status quo doesn’t support your business concept, then don’t dodge the comparison—undermine it.

Reframe it and cast doubt on it.

Don’t try to fool people into thinking you’re the “best” something. Be the only alternative to a flawed something.

How did that work with ING DIRECT?

We said the last two things you’d ever expect a bank to say: “We’re not a bank,” and “Save your money.” And we said them with such confidence that consumers couldn’t help but challenge their own assumptions about both.

That’s subversive positioning.

You talk about the dangers of boredom when messaging to your audience. What are some signals that it’s time to rethink your advertising strategy?

I think it’s important not to lose sight of what advertising really is. Too many people in our business tend to unconsciously equate it to branding. But of course they aren’t the same thing, and probably haven’t been since, say, the 1970s. Advertising isn’t a brand, it’s a brand asking a consumer to do something.

When we think about boredom or wear-out, we have to think of it in terms of how we’re asking them—not what, and certainly not in what character.

Do you believe that consumers own your brand?

I don’t, even if they seem to say so in focus groups. I think brands exist by the consumer’s grace, but consumers don’t want to own brands any more than, say, they want to govern themselves by plebiscite. They want to be heard, but they don’t want brands to delegate leadership to them.

Left to their own devices, consumers can figure out what a product needs to do, but they’re not going to inspire themselves.

If you leave branding to consumers, you’ll wind up with low margin, commodity businesses. Great brands are like lighthouses, an illuminating beacon that consumers find in the darkness.

How do brands become this “lighthouse”?

“Gut” is really important. By “gut” I don’t mean an ability to predict how people will react to something. I mean the conviction to pursue your agenda as a brand and trust that, if it’s in the best interest of enough consumers, the marketplace will reward you.

It’s guts more than it is a gut instinct.

Apple is a poster child for this notion. Virtually nothing they do is entrepreneurial. Nor is it the product of permission marketing. Nearly all of what they do is the product of a fierce, singular, take-it-or-leave-it vision. I know that not every business can function like that, but it’s amazing how many of the ones we admire the most do.

What are other traits of this brand gutsiness, especially in a down economy?

The brands that seem to be acting like those lighthouses share the following qualities:

  • They have not abandoned their purpose. By not dropping their principles like hot potatoes at the first sign of pressure, they have proven they’re authentic at the moment when doing so would have the greatest impact.
  • They have reached out to their customers and tried to turn them into a community.
  • They have not exploited the anxiety of the times.
  • They have concentrated on value.
  • They have listened hard to what people are really feeling and put a special effort into being genuinely empathetic.

What is your best positioning advice for senior leaders in universities and other third-sector organizations?

Dare to have a purpose.

In my work with such organizations in the past, I’ve very often seen a stultifying kind of commodity mentality. It’s a product of well-meaning people who believe that they’re betraying their callings if they focus on one constituency or one mission to the exclusion of all others.

The exception to this reluctance is the charitable organization that exists to fight a disease, for example. It’s no coincidence that these are some of the most strongly branded NGOs. They have a singular cause.

By contrast, organizations like industry associations and universities have a pathological fear of taking a stand. They don’t want to leave, as we put it in The Orange Code, “money on the table.” And it’s tragic to see how often they fail, or at least never seem to get anywhere, as a result.

What about those willing to take a stand?

Make a mental list of the most prestigious and superbly branded post-secondary institutions in America. Is there even one brand on that list that isn’t famous for just one or two defining vocations? I bet not.

What makes that a bit mystifying is that when a school decides to promote true excellence in one or two areas and succeeds at it, the entire school becomes more prestigious. Excellence is a reflection of the brand, not the curriculum. Just about any resume is better with Harvard on it—even if it has nothing to do with medicine, law or business.

Beyond Pretty
October 23rd, 2008 by dave
It’s pretty, but is it effective? 

According to Peter Phillips, author of Creating the Perfect Design Brief, design should be less about aesthetics and more about successfully messaging to your target audience. Here Phillips offers advice on what you need to keep in mind when delivering design:

Brand & Strategy: What is the most common mistake made by the client when working with a designer?

Peter Phillips: Keeping the design professionals separated from the decision makers. It is common for business managers to think of design as a support service. But in a well-functioning organization designers are strategic partners in business.

Project managers do not know all the questions that need to be answered. Designers need to be interacting with project managers, sales people, the target audience, and final decision makers.

Keeping designers in the “back room” doesn’t lead to the best design solutions.

What is the ideal environment for producing great design?  

A good analogy would be that of a patient-doctor relationship. In order to find solutions to a health problem, a patient must tell their doctor everything and then trust the doctor—who has specialized training and experience—to recommend the best treatment plan. Clients need to partner with the designer—and then trust their expertise.

Does the design process change based on the design deliverable?

Absolutely. The process is different if you’re designing a product rather than a poster. “Web design” has become a term used to describe the work of web developers and coders- not design professionals. But nowadays, web design is more important than ever for all kinds of organizations as more people go to the Web to gather information and make purchase decisions.

How critical is it to design with feedback from your target audience?

You can’t rely upon the opinions of those within the organization. Immediate family members are not good judges of a baby’s beauty. They are simply too close.

You don’t need to spend a lot of time or money on market research and testing. Just tag along with your sales people or talk to customers who come into your establishment. Show them the design concepts you are developing and get their reaction. After all, those are the folks for whom your design project is intended.

You point out that aesthetic design isn’t necessarily the most effective design. What do you do if internal voices don’t “like” the most effective design?

You cannot allow personal opinions to drive the design process, because they are not relevant. You must determine what design is the most effective at addressing the business need.

If someone says, “But I don’t like red.” You must be prepared to make a case for why red is the most effective color to meet the business need (e.g. it evokes feelings of strength in the target audience).

How do you measure success?

At the end of a design project you cannot objectively measure the greatness of a design, but you can measure its effectiveness. A design that meets the business needs laid out at the beginning of a design project is a success!

What Good Is Market Research?
June 17th, 2008 by dave

Some of the folks you really need to be listening to aren’t talking to you.

I once used a local dry cleaners for my shirts and did so for about 5 years. One day, while the owner waited on me, a young, pretty woman walked in. I was handing him my credit card to pay for my shirts when he turned and helped her. He made me wait. After 5 years of loyalty, I walked out and never returned. The dry cleaners was about a half mile out of my way, and that day he gave me a reason to leave. I never told him about how I felt. I never said good-bye. Poof! I was gone.

A friend recently was driving back from vacation on the East Coast and decided to drop in on a college that was on their son’s “maybe” list. The school made their list only because the daughter of a family friend attended the college and raved about it. A personal referral ranks high on my list as a high value prospect.

So the family popped by the campus and got the standard tour with a current student dressed in blue jeans with her hair pulled back. The family then headed back on the road. The school never contacted them. Never followed up with a phone call to the prospective student, asking, “How was your visit? What did you like? What questions do you still have?”

You wonder if the private liberal arts school had such an overabundance of smart male applicants that their lack of follow-up was a tactic to keep enrollment low.

Consequently, the school will never know why my friend’s son will not attend in Fall 2009. I’m not saying that he would have attended had the admissions folks cared what he and his parents thought. But my guess is that at the next marketing meeting, the enrollment team evaluated their plan and creative based on what they prefer or what some of the current students and faculty declare as acceptable. Most likely it reflected the cheery perspective of folks in love with their decision to attend or work at the school.

The next time you pat yourself on the back and say, “Look, these existing clients (current students, current members, etc) really like this or that,” remember this: The most important folks may not be in the room. Who will speak for them?

On Skunks & Marketing
April 6th, 2008 by dave

Several years ago on a late Saturday evening, my wife let out Cassidy, our golden retriever, into the backyard to do her business.

As part of her late-night liturgy, Cassidy scratched the door to be let back in, and when my wife opened the door, the dog flew past her into the family room. And so did a stench that burned the hairs in your nostrils. I arrived on the scene about 10 minutes later and I swear I could almost see a faint haze in the house. Cassidy had been sprayed by a skunk. In fact, as I gave the dog a bath in tomato juice and dishwashing soap 30 minutes later, I saw the stream of skunk fluid on the coat of Cassidy – a direct, close-up hit. Golden retrievers are not known for their intelligence.

By the time Jana got the dog back outside, the house had absorbed the smell. It took 2 weeks from that night for the smell to work its way out of the house, thanks mainly to lots of fresh air.

About a week into the 2-week ordeal, I awoke and sniffed and thought, “Hey, I think the smell is finally gone.” But when I returned at 6 PM later that day, after 10 hours at work, I entered our front door, greeted by skunk-smell. I suspect that even our clothes reeked of skunk for a time.

Here’s my point: The longer you’re in the house, the less you can smell the odor.

That’s also true of marketing. The longer you work at the same thing, the less you are able to see what’s not working. That’s why continuing education is so important. That’s why you outsource. That’s why you read. That’s why you hire staff with different experiences.

The attention of our prospective clients is in scarce supply these days. Arresting their attention requires that we don’t grow accustomed to the smell.

Deep Conversations
February 24th, 2008 by dave

If your market has ever ignored a product, a concept, or a message you thought was genius, then you know the pain of figuring out what your consumer really wants. B&S recently interviewed John Winsor, author of Beyond the Brand, who says the place to begin is a deep conversation with your customer.

B&S: You suggest that organizations must innovate to thrive. That’s hard for institutions with a long history.

John Winsor: Innovation is about having deep conversations with your consumers to find out if the product you’re delivering is what they really want.

Take Harvard, for example. Recently, they re-evaluated their financial aid program, because they realized that its college costs were driving away low-income and middle-class students. Though largely viewed as an elitist institution, they have increased the number of low-income students by 33 percent. This move is causing other universities to rethink their financial aid models. There’s cultural pressure to change. And it’s scaring a lot of people.

I’m always surprised that more universities don’t take the perspective of “Let’s do something unique!” Not enough universities go out and really listen to their consumers—students and parents—to reinvent what the university should be … or could be.

What kind of leadership do you need to innovate?

There’s a new president, Richard Celeste, at Colorado College. The trustees elected him not for his university experience, but for his life experience and leadership skills. He was the two-term governor of Ohio and the ambassador to India. He brings to the university an eclectic, interesting point of view as well as great leadership skills.

From big consumer companies to universities to non-profits, the prototypical manager/CEO—a guy with an MBA—usually gets hired. But these people have a trained way of thinking about organizational growth and management, which gets in the way of any kind of creative thinking or creative solutions.

One marketing strategy for innovation has been to identify and recruit “Influencers” to carry the ideas into the market. How do you view the power of Influencers?

In the February 2008 edition of Fast Company, Duncan Watson authored an article entitled “Is the Tipping Point Toast?”

In it, Watson refutes the idea that Influencers are largely responsible for the success of a product or trend. Of course, we all want to pin down Influencers, because it seems easier to reach only a small group of people—and not the entire market. But, it doesn’t wholly work, because you have to know how an Influencer actually influences.

So if not solely Influencers, what else drives good ideas into the market?

I think culture does. Watson uses an analogy of a forest fire to explain his point: There are thousands a year, but only a few become threats; in those rare occasions, the environment is ripe.

Or think of it like this: You can send somebody with a tanker full of gas into a forest and blow it up—that person driving that truck has a lot of power to influence. Or you can send somebody into that same forest with a single match, and if the conditions are right, it, too, will start a huge fire.

Influence can come from anywhere, but the cultural conditions determine what will spread. You have to understand your culture.

That sounds abstract and hard to control.

For a lot of organizations it is really hard. It feels like you’re throwing everything to the wind and saying, “Well, influence is really random.” But if you continue having real conversations with your consumers, you can predict intuitively where things are going. To understand the bigger cultural issues, you need to ask: What’s really happening out there? How are things really changing? Then you have to connect the dots to get the full picture. To do that, you’ve got to get out of your office and interact with your customers.

How do social media enable deep conversations?

Social media gets you inside the conversation; you’re not observing from the outside.

You can sit outside the door of a restaurant and analyze the quality of the food, service, and ambiance, or you can sit down and experience it. I think blogging is the same thing. You’ve got to jump in the stream. You’ve got to be a participant. You’ve got to be a part of the conversation—and people will find a way to connect to you and have a conversation. From there you’ll be able to identify key voices and cultural trends.

Clearing the Clutter
September 24th, 2007 by dave
Your clients or constituents suffer from decision paralysis. The market offers them endless choices like what you provide. Stress and confusion inevitably result. Worse, your clients begin to ignore you.

Peter Sealey, professor at The Peter F. Drucker Graduate School of Management at the Claremont Graduate University, and former Chief Marketing Officer of Coca-Cola, thinks that success lies in marketers’ abilities to simplify their customers’ lives.

B&S: Why so much fragmentation?

Peter Sealey: One reason is the internal marketing organization. There’s a built-in bias at the marketing department level to fragment, line-extend, and introduce new products. It gives them something to do. It means they have brand managers, assistant brand managers, and advertisers.

We only have room for so many products and services in our life. How do organizations simultaneously offer choice and simplicity?

I use Crest as an example in my lectures. Crest toothpaste offers 27 different flavor, additive, and packaging variations. When Crest came out, it had one flavor, two package sizes.

The new positioning for Crest is that it’s not just a toothpaste. It’s a healthy, beautiful smile for life, whether it’s from dental floss, whitening strips, a battery-powered toothbrush, or toothpaste. The smart marketers are positioning their brand in a more complete, wider context.

How can smaller organizations, who don’t have the deep pockets of Procter & Gamble, respond quickly to trends in the marketplace?

Most importantly, observe consumers in the act of actually using your product. Then hold a focus group with your product and customers. How do they interface with the product? Are they happy? You can do that for almost nothing. There’s not a marketer in this country who can’t afford a couple of group sessions. Finally, study people who are not your customers. Why are they not users of your product or service?

Can your concepts of simplicity marketing be adapted to nonprofits and service organizations?

The nonprofit sector has the same challenges as the profit sector. The old thought was these people live in a hazy, “touchy feely” world, and don’t have the discipline of budgets and balance sheets. In reality, they need as much discipline as the profit sector.

Volunteer work and charitable giving is huge in this country—competition exists within nonprofits. You need to position your brand. What motivates people to volunteer? And why would they choose you out of the myriad of options?

Given the speed of change today, how can a small organization plan in the way you suggest in your book?

Micro-trends—movements that are low key but important—pop up everywhere. Right now, there’s a micro-trend that shuns bottled water. It has been the star of the beverage category for the past 10 years, but people now say that bottled water is no better, maybe worse than most tap water in the United States.

I doubt that the major bottled water companies have spotted this micro-trend yet. It’s key for small companies to see these trends and to adapt. Your antennae need to be up and you need to be very sensitive. Hands-on marketing, viral marketing, is the way to go.

So small, speedy, and agile are the key traits of success today?

Absolutely. In the old days, you could simply pound consumers over the head with television advertising. The guy with the biggest budget and a decent brain won. That’s not the case anymore.

The big companies are having trouble adapting. Being small is a real advantage today; the world is going in their direction.

The Power of the Small Discipline
December 15th, 2006 by dave

It’s nice to know that success isn’t necessarily connected to your innate abilities or high school SAT score.

According to K. Anders Ericsson, professor of psychology at Florida State University, successful people “spontaneously do things differently from those individuals who stagnate” (Fast Company, November 2006, p. 116).

Smart people stagnate, not-as-smart people stagnate.

Ericsson uses the phrase “dilberate practice” to describe how successful individuals improve and innovate on their performance. A deliberate practice may be as simple as the ability to observe yourself doing an activity and intentionally improving on it the next time you do it. It’s that extra step or activity that gives folks the edge to go deeper into their craft or get better feedback from their clients. It’s not a grandiose activity. Call it the “small discipline.”

The same practice appears to create successful organizations.

Adam Bosworth, vice president of Google, recently conducted a presentation for SalesForce.com convention and used the phrase “intelligent reaction” to discuss how successful software should be built. In short, here’s the formula (or deliberate practice) of successful software development:

  • Try things out;
  • Watch;
  • Learn from the customer in real time; and then
  • Iterate.

This practice, which has produced successful companies like SalesForce.com and Google, also seems basic to successful marketing. You try this campaign, and then adjust to what works. The alternative, I guess, is to attempt to get it all right the first time, what Bosworth calls the “grand plan,” which is a myth. You never get it 100 percent right the first time. And by the time you are able to implement the full plan, the market has changed.

The point isn’t that you shouldn’t plan, of course. The point is the deliberate practice to get in front of customers quickly, listen to what they are saying about your product or service or marketing, and then adjust.

Last thing: There are two culprits when organizations can’t do this well. One is simple inertia. The other is ego.