October, 2009


21
Oct 09

Where’s the Rice and What Happened to my Profits?

The taco meat was almost ready to drain, the dishes were nearly done, and rice is almost ready to add to the soup. The soup is almost boiling over and wait… where’s the rice? Now the tomato soup is splattering all over the stove and my hands are covered in soap and the thought of the meat grease catching on fire is wracking my brain, and where’s the rice?

As a naturally frantic, harebrained cook, this was a typical night in the kitchen. I never did end up finding the rice (though I know I had bought a bag earlier that week) and my taco dinner was more like greasy meat and shells.

Many brands fail to launch because they are like me in the kitchen—disorganized, unprepared and last minute. Had I been responsible in the kitchen, I could have picked up another bag of rice before beginning the soup, doing the dishes, baking the shells and cooking the meat.

Conceptually thinking about your business, from a high-level to the detail, is essential before starting it. A great exercise in conceptualizing your company is a business plan. Doing the market research, identifying a market advantage and target audience to create a compelling market deliverable can help you first, figure out if it is worth pursuing and if it is, a business plan can help you fine tune the details.

It’s better to realize you don’t have the rice now so you can either tweak your current recipe or find a completely new one.


20
Oct 09

What Can Save Newspapers?

Do the Flaming Lips Have the Answer?

Going through my old photos, I stumbled across a picture that I took at a Flaming Lips concert. I managed to capture the confetti, dozens of flashlights held by women in alien and Santa Clause outfits, a nun hand puppet, balloons the size of a compact car, billowing smoke and enthusiasm brimming to near chaos. Any Flaming Lips fan will tell you though the music is fantastic, the concerts truly showcase the band’s abstract, off-the-wall creative energy.

In a world where CD sales have plateaued and despite the efforts of Apple and other MP3 marketplaces, music is stolen en masse by vast global networks of internet users. Further, for emerging bands, it’s all they can do to give their music away (think MySpace Music). The CD and MP3 are meant entice fans into attending shows. The money is in the concert–the unique experience in which music, performers and the audience unite for one night. Bands need to sell you on an experience. Flaming Lips have done this famously well.

Typically, the music industry is a step ahead of most other media–particularly newspapers. As newspapers are challenged by declining offline readership, many are finding it difficult to charge the same advertising rates circa 1980s. The main obstacle newspapers face is information. The hallmark of all newspapers is now available for free, anywhere on the web. They face a similar challenge as the music industry and its issues with music pirating.

Newspapers can learn a valuable lesson from the music industry. Just as the music industry sells the unique experience of concerts, so too does the newspaper industry need to develop a unique experience. What can you offer that no one else can? Because information is no longer the commodity it was was, what is uniquely valuable to your readers that you can offer? Is it a unique angle? What makes you different and valuable to your user base? Once you’ve developed a limited resource, now you’ve created value that can be monetized.

It is the answers to these million-dollar questions that will ultimately save newspaper companies.


19
Oct 09

How to Offer Better Customer Service: A Lesson from the Landlord from Hell

Having moved many times in the past couple of years, I’ve had many landlords. Let’s start with the bad: I was living in a very nice apartment building. All brick, high ceilings, a loft area, wood floors… at first glance it was a gem. After living there for a couple of weeks, it became very similar to The Money Pit: nice on the outside, but broken at the core.

Come to find out, the appliances were the cheapest you could buy. Therefore, they would constantly break. Uncontrollable flames shooting from the broiler; 100-year-old water pooling in the loft from a leak in the roof, which then began dripping in the shower below; mice; and paper-thin walls. All of these concerns were met with, “Yeah, we’ll see what we can do. I can have someone fix it in a couple of days.” No shower or dishwasher and a mice infestation and it’s going to take a couple of days?

Thankfully, when the lease ended the experience with the new landlord was quite the opposite. Everything was taken care of quickly and thoroughly. For example, the sink head was slightly leaking. Not a major issue by any means but the next day the maintenance guy completely replaced the fixture. When I asked him why, he responded, “it was old and I thought you could use a nicer one.” It would have taken weeks, if ever, to get a leaking facet fixed at my other apartment.

What really impressed me was when I had to re-set the breakers because I knocked out the power. Not only did the maintenance guy guide me through the process (I’d never done it before) of resetting the breakers, he stopped by that night just to make sure everything was OK and answer any additional questions I might have. It was his day off.

Why such a difference in culture? When I asked the maintenance guy why he puts in the extra effort, he said, “I live here too. The reason I replaced your facet was because I would want it replaced if it were in my apartment.” Eureka! My terrible landlord lived about half an hour away–not in a unit. She was so geographically removed from her work, why would she care if water was pooling in my ceiling and I couldn’t take a shower?

Next time you develop a new product, launch a website, answer a customer’s complaint, start a new ad campaign, or whatever, don’t look at it from your perspective. Quite honestly, your customer or client don’t care. Put yourself in their shoes and see if they would like your new website or new ad campaign. Gaining a little perspective can go a long way in developing a positive customer experience.


18
Oct 09

Venice and Building a Sustinable Future

A couple of years ago, I had a chance to visit the “City of Light,” where ornate masks hung in nearly every shop window and pigeons swarmed seas of tourists. I also had the opportunity to enjoy the incredible artistry in St. Mark’s Basilica. Inspiring generations of luminaries, such as Ernest Hemmingway and countless artists, Venice is also known as the “Sinking City.” Though the New York Times described Venice as “undoubtedly the most beautiful city built by man,” the city is in slowly descending into the waters it was built upon.

Venice has been the home of some of the greatest painters and thinkers of all time. It is through their collective efforts that Venice is the wonder that it is today. Unfortunately, this monument to the human imagination and spirit will slip into the sea.

As business leaders, we strive to create brands that embody the tireless efforts and talents of all those involved in its creation. Unfortunately, Venice’s ultimate demise illustrates the instability and unsustainable structure from which it was built upon. As entrepreneurs constructing new companies, it’s incredible important to build a solid foundation that can support future success. Looking to the long-term sustainability of your company, are you prepared to face the weight of success and challenges of time?


17
Oct 09

Improving Your Product / Service

If you haven’t watched Enron: The Smartest Guys in the Room, it might be worth your while. It’s a playful title, much like a biography of Bernie Madoff might be, The Smartest Investor in the Room. As I watched the film, I thought, if Enron’s leadership would have simply asked themselves, “What would I want if I were a stakeholder,” they might still be alive or not behind bars.

It’s a simple question that doesn’t get asked often enough. After you’ve done your homework and you’re ready to launch your new product or ad campaign, put yourself in your customer or users’ shoes and ask: “What would I want to see when I go to a news site?” Or, “What advertisement would I click on?” It’s a simple question that most people ignore or cannot answer.

When I go to a news site, do I want to run into a ad splash page? Unless it is extremely relevant and interesting, the answer is no. Why have it then? Ah, space and eyeballs. But if I had a choice between being annoyed by a splash page or not, guess which one I’d choose?

Even for local advertisers, when you launch your TV commercial, would cheap, amateur graphics and a $2 suit make you want to buy a car, or life insurance or paint? Probably not. Though there are more factors than just one commercial in the buying decision process, unprofessional, lazy advertisements don’t necessarily work in your favor.

Consider people that do ask that question. Great inventors are constantly thinking about problems and ways of solving them. For example, Chris Pegula noticed there were not any stylish diaper bags available for dads. That hole in the market sparked the idea for DiaperDude–a lifestyle brand for stylish dads. DiaperDude has an assortment of diaper bags for fathers–ranging in prints and sizes.

By putting yourself into your customer’s shoes, you can figure out what is a turn-off or is interesting and attractive. Next time you launch a new ad campaign, would you want someone getting in the way with a splash ad? Or, would you want someone yelling at you on TV to buy a used car? Chances are the answer is, no. Ask yourself the simple question, “What would I want if I were… ?”


16
Oct 09

Splash Ads and Traffic Jams

Nothing is worse than the feeling of being late and getting stuck in traffic. We’ve all been there and that feeling of helplessness and nervousness is always a stomach-turner. It’s about trying to get from point a to point b and something is trying to hold you back.

When I’m trying to find an article on the web and I run into a splash page ad, I get a tinge of stuck-in-traffic frustration. Someone put a roadblock in my way and though I have to spend a second or two trying to find the “skip this ad” button, it is an inconvenience. Every time I go to that website it gives me the option to skip the ad, which is an oxymoron to begin with. Just blocking my way to the content I’m looking for does not let me skip the ad–it is forced upon me.

It’s almost like saying, “Want to buy a car? I’m Andy, by the way.” It’s cheap and starts the relationship off on the wrong foot. Unless the splash page is incredibly interesting, it is an inconvenience and tries to sell me something before I can even enter the site.

Ultimately, most people do not like roadblocks. If you’re trying to go somewhere and you add an extra, unnecessary step to block them from getting to their destination, it starts the brand / user relationship off on the wrong foot. This disruptive way of thinking might have been possible when only a couple of channels were available on TV. People were forced to watch advertisements.

Unlike the early days of TV, in the digital age, if it’s news or a fact I’m looking for, I have choices. It’s easy to work around one website because most likely, I can find the information elsewhere. Case-in-point, creating a roadblock does your brand no favors.

Though advertisers might pay-up, ultimately you’re creating a small annoyance for your customers. If there are a lot of alternatives to your product, you might want to think about the long-term ramifications of creating roadblocks.


15
Oct 09

The Difference of ¼” of Plastic

Recently, I tossed an accordion binder and vowed never to use them again. Now, I use file folders in a cabinet to store my papers. Though I paid around $8.99 for the large accordion binder, I got gypped. It’s not because the tab holding it together broke, it’s because had the manufacturer added ¼” of plastic to the fastener, I wouldn’t be using a file cabinet.

Furthermore, had the manufacturer tested their product, they would know it cannot withstand the pressure of the contents inside it. If they tried it out, they would understand, ¼” more plastic on the fastener would save it from breaking. I would have paid a dollar extra for a fastener that would withstand all of my files.

Testing your product before it goes to market is a given. Had they invested the ¼” plastic, they would have a return customer and potentially new referrals. Because they couldn’t invest those couple additional cents into their product, they’ve lost more than several dollars.

It goes to show, investing that ¼” plastic into your product to make it from broken to functional is the difference between cents and dollars.


14
Oct 09

Harry Potter and the Awe Moment Spell

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The Harry Potter franchise has not captivated me like it has most other people I know. In fact, to see what all the fuss was about, my parents bought the first in the series for my birthday. While I only cracked the book to read the first couple pages, my parents whizzed through them like they were mere pamphlets.

But there is a small tribe of people, like me, that restrict their Harry Potter interest to the movie theaters. In the past, I’ve been somewhat reserved in feeling that the films are OK. I never got into the print series and a typical film rendition isn’t going to change my mind. That’s what I thought until I saw the last Potter film, The Half Blood Prince.

There were five to ten seconds in the film where I had an awe moment. It was when Dumbledore (the wizard / headmaster) waved his wand and fire encircled Potter and the headmaster—burning the zombies crawling at their feet.

This was by far an awe moment for me. I said, “Wow.” Quite embarrassing in a movie theatre. This awe moment resonated with me even further after I left the movie theatre. Discussing it with my girlfriend, I realized this one five to ten seconds of awe-striking, jaw dropping action trickled down into my Harry Potter schema.

No longer is a typical Harry Potter film to be expected for the next release. My view on the franchise went from “eh,” to “wow.” This one moment made such an impression on me that every time I meet someone who has seen the film, I have to mention it—and sometimes for those who haven’t.

It is these moments that are critical for brands to capture. Typically, it’s the negative five to ten seconds that resonates most with consumers. Turning back the clock on those very impressionable moments when we make our “final” judgment is very difficult. We can offer outstanding customer service, maybe throw in a couple of free-bees to soften consumer anger, but it’s impossible to completely turn back time.

If your brand can capture a positive awe moment, well, you have a very forgiving customer. Consider Apple. They have an incredible value proposition and deliver on it with nearly every evolution of products. Think about the release of the iPhone. The creative-driven computer company revolutionized what it meant to have a mobile phone. In essence, when consumers looked at the product for the first time, they had an awe moment. It was five to ten seconds where they said, either internally or to a friend, “this is awesome.”

They created hundreds of thousands of awe moments across the world. Now, even if Apple delivers an average product to the market, consumers will still be clamoring over it. That one awe moment made such a lasting impression, consumers would be willing to waste their dollars for products that are average. Don’t be fooled, however. Just because you’ve created an awe moment, doesn’t mean you’re invincible. Enough bad experiences in a row can turn any consumer against a brand.

There were a five to ten second period where we make the decision that yes this is amazing or it’s par or hits below our standards. It’s the goal of brands to capture that one, decisive moment where the consumer makes up their mind about your product or service. Making that top tier, where a consumer has an awe-moment should be the goal for all those in the product and service businesses.

Just as poor customer experiences can tarnish brand perception for the long-term, awe-moments can do something similar. Though it might be more difficult to over-deliver on consumer expectations, understanding your customer experiences and history will help you develop a strategy to make an awe-worthy product.

By Alice from Stock.Xchng


13
Oct 09

Garden of Branding Delights

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In one of my college art history classes, the professor lectured the class on Middle Ages art and stopped on The Garden of Earthly Delights, by the inventor of surrealism, Hieronymus Bosch.

The professor said he used to keep a print of the incredibly detailed, large painting in his house, but eventually had to remove it and gifted it to a student. He cited insanity as the reason to take it down. Bosch was so detailed in his work that every time you look at the painting, there is another half bird half human character you’ve never seen before. Something interesting pops out every time you take another look at The Garden of Earthly Delights.

Just as an onlooker can find new gems in Bosch’s masterpiece, so too can marketers and brand managers find new ideas within personal and professional networks.

Take brand naming for example. Even the most uncreative people you know can spark brilliant thinking. Send your criteria and some starter thoughts / names to friends, family and colleagues. You never know who will send you that one “it” idea or the one that sparks the “it” idea.

Internally, when ideating, bring a cross section of the company in your brainstorming session. That means account executives, creatives (upper and lower level) and any one else available. And ensure they’re in a comfortable environment. Nothing is more counter-productive than intimidating egoism and elitist attitudes. Bring in some props, role play, do whatever you have to do develop a creative environment.

The most incredible ideas come from the most unexpected places. Just as every viewing of Garden of Earthly Delights shows another gem, so too can friends, family and colleagues give you brilliant ideas.


12
Oct 09

Ralph Lauren and Preventing Blog Firestorms

Recently, Ad Rant published a rave, satirical review of a Ralph Lauren ad. The ad features a model that is impossibly skinny. At first, you might think this is a Dove PSA ad–commenting on the unrealistic expectations fashion brands place on impressionistic female teens–but no, Ralph Lauren is seriously trying to pawn the image as real.

To further exacerbate the situation, Ralph Lauren began suing the ad critics— sending takedown notices to bloggers who published the ad.

Unfortunately for Ralph Lauren, they wanted to pick a fight with the blogging community. And, of course they lost. The fifth link of a  Ralph Lauren Google search is titled, “Image of ultra-thin Ralph Lauren model sparks outrage on Shine.” Consequently, anyone searching for Ralph Lauren clothes will see the controversy surrounding the brand.

The Ralph Lauren mishap illustrates the power of social influencers on the web. Picking a fight with bloggers connected to hundreds of thousands of people is dangerous. If you consider the audience of the worlds top bloggers and those of brands like Ralph Lauren–bloggers will win every time.

The old way of thinking is to ignore or fight against your critics. In the digital age, however, the tables have turned. There is a level of transparency that was never possible in a pre-digital world (e.g. the takedown notices were published on numerous blogs). To save face, it’s crucial to listen to your audience and work with influencers to rectify any problems before the flare up into a blogosphere firestorm.

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