The door to trust is opened emotionally and instinctually. Only after that is it about performance. — Bruce Philp


“I Want My Old Health Club Back!”
February 25th, 2009 by dave

I’m a member at a local health club that recently spiked in growth.

It’s an “eat or be eaten” world, and when another local health club closed its doors for a couple weeks, my club feasted on the carrion. Note the phrase my club.

One day while I jogged around the indoor track, I rounded a corner and almost flattened a wizened lady who was walking in a run-only lane. I mumbled to myself something slightly profane and gave her a wide berth.

Does she not know which lane is for walkers? Is she illiterate? Can she not read?

Then one morning after my workout, I wanted simply to sit in one of the chairs in the lounge, sip the free coffee, and cool down before driving home. There was no open chair. A bunch of folks who looked like they had just caught the bus over from the retirement community sipped free coffee and chatted cheerily, like late-night patrons at a neighborhood bar.

Not long after, I began noticing a not-so-subtle change in the men’s locker room. I don’t classify myself as a “younger man” (I’m 46), except that I’ve noticed that there is a great divide in age (and psychology) between men who wrap a towel around their waist while in the locker room and those who appear to feel more comfortable with themselves. I know this sounds age-ist, but the male body after about 70 is no French painting.

Here’s the marketing story: A competitor goes under, and the senior management of my club likely said, “Wow, let’s create a promotion to cherry-pick these memberships from the other club – and voila! we’ll grow while having to spend no real marketing dollars to acquire them. We grow with no added expense!”

Makes perfect sense.

So management repaved the parking lot to narrow the parking spots – and thus increased parking capacity. Then, I noticed for the first time some signs that trumpeted valet parking. Yes. Valet parking for a health club! Most recently, the furniture in the lounge area was upgraded and expanded, ostensibly for those whom “going to the health club” means in large part chatting with friends and drinking branded coffee.

So, my question to you: Has this club’s position in the market changed, given that the average age of the club spiked along with the new growth?

Growth always involves a shift in power from the old to the new. I’m out of power, and the new folks are in. So, I bite my tongue, close my eyes, and head to the locker room to change before I run.

Be a Leader, Create a Tribe
January 15th, 2009 by dave
It’s another short book by Seth Godin. It’s called Tribes: We need you to lead us. 

 

I love Godin’s sass and overstatement. I did not resonate with the book, however, because I have never had a problem in being a leader or innovator. But if you need inspiration to step up and out, and make a difference, Tribes is for you. —Dave Goetz

Brand & Strategy: Most folks who are risk-takers don’t need the motivation to lead. Does your experience show that many folks want to lead but aren’t, currently?

Seth Godin: This is a false connection. There’s nothing about leadership that has to do with risk-taking, and vice versa. If you want to make change, to sell something, to market something, to improve something, you must lead. The good news is that this is now easier than ever.

Isn’t there some risk in leadership? For example, you risk losing your house if you start a business and finance it with your home equity.  

What a bogus assertion! The people who are losing their houses in the recession of 2009 weren’t entrepreneurs or even leaders. They were honest, hard working people who merely played it safe and followed instructions. What did that get them? Nothing.

It’s a myth that leadership is risky. It’s the safest path in a risky world.

The thing that keeps people from leading is myths like this. It is a school system that tells them to shut up and sit in rows and do standardized tests, or co-workers that push people to be quiet.

I think you missed my point. People start businesses all the time using their home equity, for example. You are leading. You are making change. And you are willing to use your own cash to do it. Ergo, there’s a risk involved. How is that a bogus assumption?

Because most leaders don’t do that. I didn’t. And most leaders don’t start businesses. You can be leader just by having a blog!

Have you ever failed to lead? And what do you think were the consequences?

I fail every single day. I fail to inspire enough people, or to step in where I’m needed, or to improve the status quo because I’m too busy hiding or avoiding or stalling. It makes me sad, but reinvigorates my desire to re-engage.

You mention the importance of leaders giving tools to their constituents to communicate with each other. Social media enables that, obviously. What are the biggest fears that leaders have in enabling their constituents to have a conversation together?

Marketers love to be in control. Too bad. That’s over.

How do I, as a leader, unwittingly stymie Tribe-building among clients or staff?

How often do you fire people for not leading? When was the last time you disciplined someone for playing it safe?



The ZAG Mantra
September 23rd, 2008 by dave
The only thing that keeps a zigzag from being a straight line is the “zag”…the departure from the stasis. 

“When everybody zigs, zag,” says Marty Neumeier, president of Neutron LLC, a San Francisco based firm specializing in brand collaboration and author of ZAG.

Neumeier spoke with CZ about why organizations need both compelling and different ideas to be heard and seen in today’s noisy, cluttered marketplace.

Brand & Strategy: How do you define differentiation?

Marty Neumeier: I call it zag. When everybody else zigs, you should zag. Zag should be your mantra. You can’t be a leader by following another leader.
What makes differentiation so critical today?

Because of so many customer choices. Customers have control. Customers now have to eliminate choices because there is so much market clutter.

You argue that customers control the brand. How?

A brand isn’t what you say it is (as the brand owner); it’s what the customer says it is. That’s a new idea. Businesses think they are in control of their brand and that they are managing their brand…that it’s their property.

I think it’s their responsibility. But the owners of the brand really are the customers. They build the brand inside their heads and their hearts with whatever materials you give them.

How do you build a brand you’re not in control of?

You don’t stop at the strategy level. You keep zagging all the way through to the customer experience. It’s not just differentiation; it’s also execution and innovation. Start by asking a series of questions: Who are you? What do you do? Why does it matter?

In the beginning, most leadership teams answer those three questions simply and in a compelling way. However, they soon can’t yield simple answers. You need to get answers to those questions, and at the end of that process you’ll have what I call a trueline…the one true thing you can say about your brand that makes it both different and compelling to a tribe of customers.

Uh, what’s a tribe of customers?

We’ve had a hundred years of mass production that has fractured communities. People long for community. Making decisions within a community simplifies things. It’s a quick way to sort through your choices.

For instance, if you need to buy a car, you think, I need to buy a car. All my friends are buying Jaguars, so I have to have a Jaguar. Boom! Done! That’s what you get in your tribe…Jaguars, not Cadillacs.

Your choice links you to your community so you get respect from it. People can belong to more than one tribe so you have overlapping tribes. Thinking in terms of tribes is a better way of looking at things than is “How many people can we sell to?”

This is a scary proposition for most companies: How do you manage something that is in someone’s mind?

Can traditional marketing research identify tribal thinking?

Not yet. The emotional part is too complex for most formulas. However, while not quantifiable, there are patterns that signal whether you’re on the right track. So, pattern recognition becomes more important.

Can you create a clan for your brand?

It’s like my mother told me: “If you want to be a leader, find a parade that has no leader and get in front of it.”

Starbucks’ Simple Truths
July 18th, 2008 by dave
It’s a simple experience that drives the droves back to Starbucks.

We all have our signature drinks—double tall vanilla skinny latte, easy on the foam.

It’s replicated day after day. Baristas even concoct our daily quenchers as we walk through the doors.

In Tribal Knowledge, author and former Starbucks marketer John Moore attributes Starbucks’ success to three basic truths:

  • Building a business, not creating a brand;
  • delivering remarkable customer experiences; and,
  • creating a workplace that fuels its employees’ passion.

Moore calls these truths “tribal knowledge,” and recently spoke with B&S about how to integrate them into your business strategy:

Brand & Strategy: How do you convince an organization—especially one with a small budget—to redirect money from advertising/recruiting to improving the customer experience?

John Moore: You need to be willing to focus on the quality of customer connections and not the quantity. Nowadays, most people are looking for a direct conversation with the companies with whom they do business. I suggest businesses find their happiest customers and work to develop stronger relationships with them.

If you work on developing meaningful connections with them, in turn they will evangelize your business to their family and friends.

To make this ideal real, imagine the kind of surprise and delight you would generate if your top executives each phoned five customers per week. And if you’re scared to make those phone calls because you’re not sure what you might hear—you especially need to make those calls!

Is “word of mouth” really a marketing strategy?

Word-of-Mouth happens whether you’re aware of it or not. And if you’re not thinking about what your customers and prospects are saying about you, you should be. Remember, word-of-mouth happens online, too. People go right to the Internet to research everything from a purchase decision to a job opportunity to potential college choices.

If you want to spark positive word-of-mouth, you must earn opinions from people. Even seemingly small details earn opinions—good and bad—in the minds of your customers. In Starbucks case, just call your drink sizes different names. Some people like it, some don’t. Either way, it earns opinions from people and that results in word-of-mouth.

How do you get your employees on board?

I advise companies to think less about branding strategies and more about “being” strategies. Develop a business testimony about who you are, what you do, and why you deserve to exist.

Every organization must have a mission. And it shouldn’t be one of those gobbledy-gook corporate-speak platitudes. It must be memorable, motivational, and actionable. Every member of your organization should be able to articulate what you do and why. Purpose and passion are what attract people—both customers and employees.

How do you increase high-touch interaction with your customers, especially if you have thousands of prospective customers with limited opportunities for face-to-face interaction?

High-touch treats customers as relationships, not transactions. The bigger your organization becomes, the smaller you must act in order to develop and maintain those relationships.

Social media, like blogs, actually helps small organizations appear bigger, and helps large organizations act smaller. Having a blog will force a company to have a conversation with its customers. You can learn a lot from interacting with and listening to your customers—both their positive and negative feedback. But if you’re not confident about who you are and what you do, don’t do social media.

Why is it so important that every employee sees their direct connection to the customer?

David Packard of Hewlett-Packard said, “Marketing is too important to be left to the marketing department.” The truth is marketing is happening every time your employees interact with your customers. A happy employee will, in turn, make customers happy.

Your business has two audiences: your customers and your employees. How you communicate with each indicates how much you value them. Employees believe in a company in which they know what’s going on and feel they have a say.

In the end, a business really has just three goals: to make money, to make employees happy, and, to make customers happy. If you are able to do those three things, your business and its brand will grow.

What Women Really Want
June 23rd, 2008 by dave

One size does not fit all.

You’d think advertisers would know that, before spending billions aimed at so-called Soccer Moms. Research indicates most women aged 25 to 45 don’t identify themselves as such.

Whether or not you’re marketing to women exclusively, tailoring your message to the segments of your audience is critical.

Holly Buchanan, co-author of The Soccer Mom Myth – Today’s Female Consumer: Who She Really Is, Why She Really Buys, talked to Brand & Strategy about identifying your customers’ personas and giving them what they want and need:

Brand & Strategy: You argue women want to be acknowledged as consumers with individual needs, not just as members of the female demographic. Is that also true of men?

Holly Buchanan: Everyone wants to think that advertisers are speaking directly to them. But women, more so than men, don’t want to be treated as stereotypes. Their lives are so much richer and more complicated than that. Images and messages that will resonate with them are those that reflect how they see themselves.

So how do you do that?

You begin by creating what we call personas. You can typically identify four or five that incorporate the varied lifestyles, needs, motivations, and buying processes of each of your audience segments. Then you can address each in the manner that will appeal to that specific audience. But be careful not to fragment your message so much that you sacrifice consistency.

What are some of the personas you’ve identified?

An oversimplification would be to equate them to the Myers Briggs Type Indicator, which categorizes how people process information. Are they Left-brain or Right-brain? Spontaneous or Methodical? Humanistic or Competitive?

It’s not enough to identify how your customers are the same—you also need to know how they’re different. You need to do what we call “uncovery” to get to the whys behind customer needs and characteristics.

Seems too complicated to reach each persona with a unique message.

The Internet is a powerful way to connect to different segments of your customer base. Your web site is the most effective place to start. The key is to provide clear pathways so that each persona can find the information they’re looking for when they need it. Then your visitors can self-select the experience they want.

How do you determine what it is they want?

Start by listening to your customers, not just talking to them! Frequently Asked Questions (FAQs) and objections are a great place to begin your research—they tell you what people want to know and where they get hung-up in the buying process. Make sure you address these upfront! And don’t shy away from addressing any drawbacks or “This isn’t for you if … ” scenarios.

If you’re upfront about the negatives, folks are much more likely to believe you about the positives.

What about social media?

Social media has put the consumer firmly in control of the buying process. You can also find out what people already are saying about you on blogs and consumer feedback forums.

If you don’t include your consumer in the “conversation” they will tune you out.

You talk about how “Everything is marketing” and there are hundreds of touch-points. How can you control them all?

You can’t control everything—but you better control everything you can. Small details can be huge in the midst of a purchasing decision—everything from the lighting in your store, the friendliness of your operator, to the cleanliness of your washrooms. The challenge is to not just meet your customers’ expectations but to go beyond that—to delight them.

We’ve found that if you can meet the expectations of your female customers, you will have exceeded the expectations of your male customers.