In the past, companies have gone green as part of both an ideology and to send a message about their community responsibility. It’s mostly been considered an expense attributed to Marketing and Public Relations.

In the past, the cost of being green has been prohibitive to many small companies. Today it is becoming the exact opposite; a way to reduce both the cost and the environmental impact.

The current economic state has turned the reasons for going green from purely a philosophical stance and a calculated cost to being about the bottom line and potential savings. Fuel costs alone have thrown the balance towards ecological thinking

It is no longer about making a statement, it’s just good business.

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Part 1 - Consumables, The easy place to start

The paperless office was a joke when it was first thought of in the 80’s and 90’s. We have been creating more papers since then than ever before. But again, the cost of office supplies is increasing, so by going green and actually reducing the amount of paper and other disposables used you will save money and the environment in one move.

Modern software packages – Office 2007 for instance - have file sharing and cooperative functions built in that make working on electronic copies of documents easier and better than ever before. Implementing new document handling services will also save you time and money in the long run by speeding up your processing time and accuracy. A piece of paper gets misplaced a lot easier than an email.

Accounts Payable Management

Accounts payable and Invoices are big problem areas for many companies. Different standards and systems often cause payment policy problems. Espcially if you are using a central processing that sends invoices out for verification.

Use scanners and email to verify invoices between departments. The cost of losing an Invoice is often high in both supplier relations and financial terms. Emails can be traced much easier than papers.

You can also consider using a system like American Express - @ work. Which allows you to completely computerize your expense processing, all invoices can be processed through this system, not just the ones paid with the AMEX card. Saving you both paper and postage if you normally send paper copies of invoices for verification to different site managers etc.

Using the Amex Card for invoice payments also adds a net 30 days to your payment time. Which can even out the disparity between a company who has a fixed payment policy and suppliers who invoice with different payment times.

I am sure that there are many services like this, but the one I have most experience with is the AMEX system, which is why I’m mentioning it, if you can find something that works as well or better, please give me a heads up.

Printing / Copying

Printers are expensive, ink and toner is expensive. And they are power hogs. By reducing the amount of papers used, you can reduce the cost of all three, and keeping fewer more efficient printer/copier combinations in a central location.

Using double sided printing and copying for anything that does not specifically require a single sided print can reduce the paper usage with over 40%. (Client observation) Most modern copiers have automated single to double sided conversion settings.

Filing

Filing systems take up between 5 and 15 percent of the floor space in an office. With less paper, you will be able to either improve the conditions of the employees with more open space. Or you can move to a smaller office.

Less paper in filing also reduces cost of long term storage of documents, and if created and maintained electronically from the beginning, you reduce the cost of converting them later.

Reduced Housekeeping

Anything that reduces paper waste also reduces the potential cost of document destruction as well as cleaning cost. 10-15 percent of all cleaning activities are focused around emptying trash, and most office trash is paper. Less garbage is a strong negotiating point with your cleaning service.

Lighting

The new low energy light bulbs are no news to anyone these days. But the use of them can quickly turn into a money saver. Using 1/5 to 1/6 of a normal incandescent bulb in energy and lasting longer before replacing accomplishes two things immediately.

a. Reduced energy cost and cost of replacements

b. Reduced cost of maintenance with fewer calls for broken bulbs

Task Lighting is also better for employee health and well-being, just ask your average employee how they feel about overhead fluorescents in general and you’ll see that this is a very quick way to make the workspace a more comfortable and inviting place.

No reason not to do it

Reducing and replacing consumables is a direct money saver, capable of both improving the bottom line and the workplace environment for employees. The long term effects of better environment on the cost of sick leaves, workers comp and other health related expenses Is hard to predict, but can only work in your favor.

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-Stay tuned for the second part -
"Going Green is the Cheapest Marketing You’ve Ever Seen"

The thought has been there…

That day when your boss had a bad date the evening before and your supervisor yet again proved that they have no clue what they are doing. That nagging thought that you could do something for yourself. Something that’s what you want. How you want it.

Drop that incredible anxiety about how your 12.40/hr job is so convenient and safe. It’s probably also getting you nowhere all while driving you insane 40 hours a week. There’s better out there, you know it, you feel it. It’s time.

Get Off Your Ass and Do It

Planning is important. In fact, it is imperative. But the best laid plan is worth zip, zilch, nada without action. At some point, you have to sit down and talk to yourself and your family and tell them what you want to do. If your family says go for it. Then don’t wait. Just get off your ass and do it. They are probably going to be supportive when you tell them, because they have no idea how good your plans and thoughts really are. Try them, and watch them be amazed. Reality is that you are your own worst enemy until you do get off your ass.

1. You’ll be dancing to your own tune

I hate it, most of the people I know hate it (and I suspect those that don’t claim to hate it are being nice about it.) You probably hate it too. The office politics of “that’s how we do it.” Even when you know it could be done better, cheaper and faster, no one is interested in hearing it. Well guess what, that insight and knowledge is yours to make what you can out of. You have the idea right there. It’s been slapping you in the face and you just haven’t been listening. Take it and make it yours, and you can forget about the backstabbing moron in the next cubicle.

2. You’ll learn your own power

When you are pushing papers for others, there are always others to blame and others that will blame you. You also know that when you have a great idea, its harder to get anyone to listen to it than it is to actually get it done. Now is your chance to take those ideas to market and find out what you can do with them. And once you get through the first decision to actually DO what you have been talking about, will be the kickoff to understanding what you really can accomplish.

3. You can stop being two people

Most people have a business person and a weekend person. The weekend person is who you really are, the business is the person that adapts to your companies preconceived notions about what you should be. Business-you is probably not as nice, not as much fun and definitely not as interesting. When you are your own boss, you can be who you are with your company, in fact, that will be one of your greatest strengths to distinguish yourself from the cookie-cutters out there.

4. You’ll learn to stop talking and doing it instead

Once you take the step, you’ll see that it wasn’t so hard. And you’ll get better at getting things done instead of just talking about it in general. This will transition into your normal life as well. Don’t think that spending 5/7 of your life conforming to others and waiting for the boss hasn’t slowed you down on the weekend too. You’ll see that you will get much quicker to just get things done and enjoy the results as opposed to dreaming about doing it.

5. Retirement? Why?

It is sad for me to hear people talking about how they are going to live their life after retirement. This is a surefire proof that they are spending most of their life doing what they don’t want to.

Starting your own business, will give you the opportunity to do what you love doing. How many authors, painters, musicians, or other passionate people do you think sit around and wait for the day when they can put the brush down and never paint again? You will determine when you retire, early or late. It’s not about waiting for HR to send you a crappy present and a termination notice anymore.

6. Don’t sweat the small stuff

You’ll finally learn what that means. In corporate structures, you are often forced to deal with small stuff all day. Your little part of the machine. (Which is no doubt important,) but it isn’t a real problem. You will finally get to deal with real problems, and learn through that what the small stuff really is. Once you learn what real problems are, you’ll also learn that they are pretty rare. You’ll be happier for it in the long run.

7. You will finally find your purpose

When you take the step and become your own boss, you will quickly see what success and happiness really is. As a pack animal, you were measuring yourself by wether you got the 4 or 5 % annual raise. Now you will begin to measure yourself by what is really important. How your dreams and ideas translate into reality. And you will be put in charge of your own self-worth and happiness.

8. YCDBSOYA

My father had a little tie clip that said this on it. Y ou C an’t D o B usiness S itting On Your A ss. Well literally you can, internet made sure of that. But the thought remains the same. You have to get moving or nothing will ever happen.

Isn’t it time that you took that idea you’ve been milling for so long, and make it into what it was meant to be all along? YOU!

Marketing professionals sometimes get it wrong. And sometimes get it VERY wrong. Here are some examples of what can happen when local talent isn’t used to verify the international meaning of words and images.

Gerber- Your Choice for Ground Baby

The Healthy looking Caucasian Baby on the Gerber Baby Formula packages didn’t do well in Africa. It had however nothing to do with being politically correct.

In Africa - since a large part of the population can’t read - it is standard practice to put a picture of the main Ingredient on the package.

Meet the Wankers

Mitsubishi - had a very successful vehicle in their Pajero, Which sold great all over the world. However, it is sold under the name Montero in South America, after having a big flop in their initial launch.

Guess no one told them that Pajero is slang for Wanker in for instance Argentina.

Wallhamn – a Swedish port and shipping company designed a logo that used their Capital W and an achor.. W-anchor. English speaking workers quickly made the connection. They are now using another logo.

That car Won’t go

Chevrolet had to rename their Nova in South America. Where it was sold as Chevrolet Chevy and later Malibu.

Guess the local market didn’t want to buy the “No va” – Which translates into the “no way” or “won’t go” car.

Are you Using a New Shampoo?

Clairol, had their curling iron named the “Mist Stick” backfire in Germany. Where “Mist” is the slang for manure. For some reason, the image of fertilizing your hair wasn’t appealing to most German women.

Tadpole Soda

The Coca-Cola name in China was read as “Ke-kou-ke-la”, meaning “Bite the wax tadpole” They have since changed the characters used to the more suitable “ko-kou-ko-le”, or “happiness in the mouth.”

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When you are expanding overseas, it is tempting to just apply what has worked in the past. Be aware that what you think something means could backfire when you apply local culture to it.

It’s always best to verify with the local talent before committing to sell those 900 tons of powdered babies you just shipped.

Whenever I buy something that says "batteries sold separately." I calmly dream that this will be the store redeeming my basic faith in a company’s ability to seize the most self-evident opportunity for customer service.

(I’m starting to think I am a hopeless idealist.)

1. If you are selling an item. TEST it before you let the customer walk out with it. Take out a pair of batteries. Put them in and make sure everything works.

It really doesn’t matter that the item is made by Widget Industries in Upper Mongolia. YOU sold it, and the customer will be angry with YOU when it doesn’t work.

2 . (This is where companies make fools of themselves) Turn off the object and put it back in the box before closing the sale. But LEAVE THE BATTERIES.

Yes, I said it! Save your key rings, forget about the complimentary Frisbee. Take the unusually smart step of actually making sure that the item will work when they get home without the customer needing to buy batteries.

In fact, if I come home with an object without batteries, but a complimentary branding Frisbee, I’m probably going to be even more fuming than if I didn’t get the Frisbee at all. At that second I am going to wonder what moron came up with that idea instead of just giving me a pair of bloody AA’s! Now I’m both angry that I have to go back out and get batteries, and convinced that your establishment is owned and operated by a cretin. Not the customer experience you should be shooting for.

Giving It Away Increase Sales

The amazing thing is that your sale of batteries has a great chance of increasing too. Why? Because if you don’t have a policy of testing each item, your sales clerks are going to forget to remind the customer they will need batteries x amount of times out of a hundred.

If clerks test everything as a policy, they won’t forget as often and that will improve sales of batteries as well. And here is the kicker, the customer probably has other things that need batteries, so even though you just gave them batteries for the item they purchased, they will often end up buying them for other items.

It All Goes In the Plus Column

If the item you are selling is $2.49 with a profit margin of 30 cents. This is admittedly not a great idea. But if you are holding a profit margin anywhere over $3 per item, you can’t really lose by doing this.

AA batteries are about 7 cents if you buy in bulk. You are paying more for those fancy brochures used to staple the receipt to in case the product doesn’t work. Now you will have to deal with less customer returns as well, which also saves you money and bad will. (See the math here?)

If you have a profit margin that is high, Say $70. You will have to convert 1 sale in every 250 to a returning customer or a referral for it to break even.

I guarantee you will be head and shoulders above the competition that are still standing there like misers, taking them back out of the gadget before asking you if you would like to buy batteries. To me, that is not just a missed opportunity of customer service. It’s downright counterproductive and borderline rude.

I can also promise you that the statement "I’m going to leave these in here, if you would like to buy extra batteries, this item takes Double A’s" will do more for your customer satisfaction than a Frisbee ever will.

Have you bundled yourself so tight you can’t move?

Once upon a time…… I worked with a company that provided contracted services. The services were spanning many areas, and of course came in different bundles.

I was tasked with finding the "custom" contracts, those not conforming to any of the standard bundles, so that they could be standardized. Something that many companies try to do to simplify both the billing and being able to provide the service they agreed on. Up until this point, it was nothing strange to me.

When i worked on it, i quickly realized that almost all of the "weird" contracts as they were called, had been sold by one of the senior staff. These contracts were highly customized in both services provided and pricing. This of course was interesting, but what was more interesting than that, was that the company had an almost 100% retention rate of these customers.

After crunching the numbers, it also became very clear that the profit margin on those contracts were on average 7$ over the standard packages. Even after taking the "hassle" of customized billing and keeping track of what services to provide into consideration.

The Senior member had tapped several majorly important resources at once. The customer got a personal relationship which let them buy exactly what they needed. And in the process, the company:

A) Made more money
B) Kept the customers longer, (making even more money.)
C) Made the customer happy
(which i’ve harped on enough already as the only way to get good referrals.)

Simplified Billing be Damned

These wierd contracts were exactly what every customer should have been offered, Customized to perfection, the senior staff member had by "breaking the rules" shown that it was the best option available.

But as always, the "cutting costs" aspect of simplified billing and contract management was what the corporate head office could more easily measure, and therefore wanted. So that was what they got. The profitability and retention went down as could be expected.

The savings of "simplified billing" ended up costing them more than hiring an extra Accounts Recievable staffer would have cost them.

And lets not forget that they had a very powerful accounting and billing package that if used correctly would have made it a non issue to begin with.

Lessons Learned
What i learned from this staff member was that unless you are completely unable to customize, there is no reason not to. It’s simply better to sell them what they want. They are willing to pay a slight premium on the services they do get, if you allow them to cut out the ones they don’t want.

Thougts on Selling Services

-Services, should never be sold as a fixed package unless they are interdependent.

- if they are interdependent, they shouldn’t be listed as two separate items to begin with.

- Bundles are great, some customer likes the no hassle approach, and the rest can use them as a base from where to start. But to not allow customization is the same as saying "Your wants and needs are not important."

For Gods Sake, Don’t Listen to Me!

Every time you sell a custom contract that adds or subtracts a service from one of your bundles, You are being given Free Product Development . Your customer is helping you improve your bundles and packages with no other consideration than you listening to them.

Consultants like me charge big money to give you the same information that your customer just gave you for free.

So by all means, please ignore this opportunity, and call me instead, I’ll be happy to listen to your customers for you, (and bill you accordingly.)

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The New Marketing Channels

Read the previous Entries:

Part 1 - Part 2 - Part 3

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So the market has changed, there is no denying that fact any longer. Now the question is how do we adapt and break in to this new marketplace? Since the traditional avenues of direct marketing, commercials, advertising etc. are drying up, we need to find the openings that have been created instead.

These new openings revolve around word of mouth, this is the new hard currency of marketing and the reason so many traditional dinosaur marketers have problems adapting. Word of mouth is hard to measure, largely uncontrollable, and almost impossible to buy without running the risk of being exposed as a "cheater." Hence, it is every traditional marketers and CEO’s nightmare. What can’t be exactly measured, reported and controlled with a spreadsheet tends to be ignored. This is fine; those who adapt will just have more business when the rest keel over.

Advertising Is Dead, Long Live Advertising

The basic rules of advertising have not really changed. AIDAS (Attention, Interest, Desire, Action, Satisfaction,) still holds true. The major change that social media has added, is Confirmation . Instead of having a single place in the chain, confirmation is now the center of the customer’s decision making process. Although the confirmation part is integral, it can be skipped. It can also occur between each step of the chain, multiple times if necessary. This is why the hard sell doesn’t work anymore either. The customer is demanding the right to abort any decision process to return to the confirmation part. More often than not, a hard sell approach will trigger this apprehension and drive the customer to verify with their network.

To avoid hype, people are looking to their networks to find someone who knows and is willing to talk. These experts can be anyone with the forum and will to voice their opinion. These networks are multilayered, a friend might not know the answer, but knows a blog that discusses the topic. This is considered more reliable than the corporate website.

The initial reach and market penetration is not happening through traditional mass advertising, but through targeted lifestyle and spokesperson advertising. In order to reach the new target audience, the powerful marketers of tomorrow will be on an increasing level people with some notoriety in a specific field. Being famous is no longer enough to create interest - context is.

The use of celebrities has become synonymous with major brand advertising, and as such, it carries little or no reference trustworthiness. Whereas smaller artists, athletes, bloggers, and other micro-celebrities are beginning to carry more weight because they are often seen as independent and with a higher degree of integrity and honesty.

What is important to notice is that the impact value of celebrities is diminishing, whereas the group specific role-model is increasing. Group specific in this case means anyone can represent you, as long as they are contextual. You can notice this in that celebrity endorsements have declined compared to just a couple of years ago.

No One Cares What Tiger Woods Drinks

The consumer is looking for contextual endorsements; a golf club is a great promotion for Tiger, IF he plays it himself. Or he can explain why this is a great club for an amateur and use his expertise to project believability. But he can’t sell Pepsi or any other drink very well anymore. Especially if he isn’t seen drinking it on the course. We see it more and more, celebrity advertising for non contextual products is dropping fast.

Also noteworthy here is that the reason for the non-celebrity advertising being more prevalent is not the ineffectiveness of the celebrity as such, but the ineffectiveness of TV advertising as a whole. There is simply a need to cut the production cost of TV and print campaigns to balance the reduced conversion rates that they are seeing.

This is where the micro-celebrity comes in. People are looking to the smaller more focused person, one that by default places a lot on the line with his or her word. These are the real marketers of the future.

A blogger promoting a product can have a higher impact value than a Tiger Woods promotion. Unless it is something that Mr. Woods uses on the course and thereby places his own reputation and success on the line with. Since very few people believe that Tiger actually drives a Buick, his endorsement of the vehicles they produce has been reduced, we have seen most car manufacturers move away from the celebrity endorsement to market to what the customer needs are, which currently is price and mileage. Mr. Woods’ contract with Buick expires in ‘09; I for one would be surprised if it was extended past that point.

Blessed are the Geeks

Traditionally, a marketing campaign would find their target market, and then find the middle segment -the large part of the curve - that consisted of normal users. Early adapters and latecomers were ignored as this market was the small portion of the fringe. And it was thought that early adopters would simply respond faster to traditional advertising.

As I discussed in Part 1, the middle of the road are no longer interested in hearing about your product. They have become exceptionally good at ignoring marketing messages. To get traction now, you need the people with the highest propensity to look for, and be excited by, new items.

All of a sudden, we have arrived at the evolution. Now, previously ignored market segments of earliest adopters, The Geeks , are ruling the earth. By reaching them, catering to their specific needs and wants, - which in most cases is extensive and factual information - you will create the necessary buzz around your product or service. And only through them will you be able to properly penetrate the social media networks to get enough spread. These geeks are key players in certain areas, and often have large followings of people who listen to what they say.

The early adopter is a decision maker based on two primary criteria. They want remarkable products, and they need plenty of information. In order to reach them, this information has to be available for them to become excited. What is important to recognize is that the early adopter will sell a new product before they have seen it. Your advertising can’t just sell on spin anymore; it has to sell on fact. Your word of mouth reach through these networks is the spin.

Watch Out For the Fake Geek

Although the Geeks have already passed along the social media craze well into the mid range of "normal targetable consumers." They are also the ones that pioneer the new social media sites. When a social media site becomes packed with dinosaur marketers spamming everybody, the geeks leave. When they do leave they take with them much of the credibility of that particular channel to the next evolution in social media,

To the dinosaur marketer, the obvious solution is to create a "fake geek." jumping on new forums to spread your message, but this doesn’t work well either. The "real geeks" will search and destroy any such effort, only when the onslaught is too big will they give up protecting their realm and move on to the next one. You can never maintain spam and early adopters in the same network for long. You can stay there and spam with once the early adopters have left, but your conversion rates will drop instantly when this is the norm.

A Shilling Backlash

The "shill" - a person that is paid to act like an unaffiliated customer endorsing a product, is perhaps the worst idea possible to work within this realm. It is considered one of the worst types of dishonest spam, and people are becoming VERY good at spotting this. As soon as a shill is suspected, the community will immediately paint the company out to be dishonest and underhanded. A real, honest endorsement from a customer is gold, to get caught manufacturing these is equal to suicide in most cases.

When approaching the marketplace as it looks today, honesty and disclosure have become watchwords. The customer is too smart to accept anything less than ethical marketing. They will force ethics by actively de-railing and exposing any attempts they spot to circumvent the rules of the new social networks. In the new marketplace you need to be both remarkable, and forthcoming, or you will fail on reaching the target audience.

Going Viral - Not What it Looks Like

The magic word today is Viral. The holy grail of social marketing is to find that one pearl that will spread itself like wildfire. And many companies are making a decent profit on promising viral marketing. This is an area to watch, and watch carefully. In many ways, it does not convert like you would expect. If used to spread a message that isn’t true, or leaves the customer feeling cheated, you will hear about it.

Viral marketing requires that the advertising itself is noteworthy, not the product. This creates a disconnect between what advertising is accomplishing, and what marketing should be doing. Viral marketing is so powerful that it can be intoxicating in itself. But the effect of a great viral campaign to promote a so-so product is disappointing in many ways. You’ll get noticed, which can be great for the ego, but if you’re not living up to the expectations. It won’t be good for business.

You could theoretically create something like "Poo-Perfume - He’ll never forget your scent ", and through a funny video ad blast the viral campaign wide open. You have the two parts of a successful viral campaign, the outlandish product and a funny advertisement that would be noteworthy by itself. But apart from gag stores, no one would buy your particular scent. These viral campaigns are excellent for brand building and to keep your name in front of a potential customer. However, the product has to deliver quality that matches the hype, or you are selling Poo-Perfume to everyone that thinks they bought Chanel.

The viral campaign is great for Branding, and to keep an already recognized name in front of customers. It may however not provide many sales. In order for the viral campaign to function, it has to provide an interest that can be converted into action, and that can only be done if the rest of the solutions are in place. Many of the viral campaigns you see out there miss this goal by a mile. The ad is watched millions and millions of times on YouTube, but conversion are average at best.

Since the viral spread is so powerful, if your product or service fails to meet expectations when the customers flock to find you, your negative effect can kill you as quickly as the viral boosted you to begin with. Remember that the social networks are as powerful in bringing bad products down as they are blasting a great idea into orbit.

It’s Your Call - Evolve, Or Perish

You can and must prepare to handle the new expectations of the marketplace. Social media has changed the behavior of your customer. The technical evolution of cell phones with IM, Email, Twitter and everything else connected into one persons pocket has left zero room for error. Every customer has to be treated like The editor of the New York Times, because quite frankly, their reach can be just as big.

Passing On a Sale Is Long Term Profit

Your name, brand, and business are on the line every time you try. Since you don’t know how many readers follow this particular customer. Your only bet is to apply good old fashioned business sense. It’s better to talk a customer out of a sale that isn’t what they want than to have him or her talk 400 people out of making a purchase later.

Quality Is Your Only Hope

Without it you will be left without remedy when someone is displeased. Your best bet is to fix a problem as they occur. If your business model is based on sub standard products, you can’t do this. The amount of complaints will take the profit right out of any venture. And the lack of remedy will be noticed, discussed and taken apart in public forums that you have no real control over. If you lack a direct relationship between your promise, and your delivery you won’t last long.

You can’t adopt old techniques to new media.

The key trait of any dinosaur is to attempt to fit old into new. Remember that the new media networks were created so that traditional marketing can be avoided. The only way to get old style messages into new media is to change the delivery method, which means you are trying to mass advertise without admitting that you are. We know by now that bring sneaky, underhanded, or dishonest is not the way to build relationships.

With Their Permission

Your customer is not willing to be accosted by marketing and hard sales anymore. Ask permission, don’t do it in a clandestine way either. Tell them what you want, and accept that the ones that are interested enough to give you permission to contact them are your best targeted audience to begin with. Anything less than a customer’s express permission is spam. Just because it is legal does not make it welcome.

When They Want It

Google is the key to many businesses success, being on page one there means that anyone that finds you. Should have been looking for what you have. This is why it’s a bad idea for you to have non-contextual search words on your webpage. It brings visitors that are looking for something else. Since they aren’t interested in what you have to tell them, you are wasting their time. Not a good place to start a relationship.

Customers Relations Spread

Your relationships with your customers will spread - Negative and positive experiences alike. Focus on the customer experience, and forget about the short term profit margin. You don’t like to be nickel and dimed, neither does your customer. The difference between the dinosaur age and today, is that your customer through social media and technology has a way of sharing this experience with everyone they know before they have reached their car.

The Market Is Not Yours to Take - But It Is Yours To Lose

You can’t blast your message out there until you reach enough people. There aren’t enough people interested to make it worth your effort. You can’t buy, get, or cheat your way successfully for long in the modern market. The customer is in control, and you are along for the ride.

They will not trust what you say, what your advertisements say, or what celebrities on TV say about you. They trust their networks, and their own experience. When you have their trust, you become part of that network, and they sell you to the rest of the world. Break that trust, and you just fired your best salesman.

Dinosaurs May Be a Dying Breed, But a Live One Can Still Kill You

Pay close attention to any idea that carries the traits of a Dinosaur Marketer. Anytime it sounds like they are about to break the cardinal rules of maintaining a good customer relationship as I’ve expressed here, they are liable to bring you into extinction with them.

You can’t really blame them; this evolution has shook up much of what was true in the past. Change is painful, hard and for some almost impossible when their entire world is built around providing a service that is no longer cost effective. Just be prepared to protect yourself and your company, because a dinosaur marketer isn’t willing or capable of doing it for you.

You can still read The Blogpreneur 1

So you are still convinced that you want to try your hand at the business of blogging for money? Good for you, determination and drive are the most important aspects of any business venture. You’ll need plenty of both to be a successful blogpreneur.

Now, remember what was said In Part 1. This IS a business, and you should treat it as such. Like any other business the better prepared you are before getting into it, the sooner you will see the results. Although learning on the job is a popular way to go with blogging, there are very few bloggers who can’t write a post called “what I wish I knew before I started blogging.”
This list is a combination of things I wish I had known and common problems I’ve observed.

1. Patience
It takes time, and you won’t see much return early on. It is however possible to succeed with hard work and staying power. If you don’t love the idea of working on this for months - maybe even years - before you start showing any real income. Do yourself a favor and spend the time doing other things. You’ll be less frustrated and just by walking down the street you have a better chance of picking up cents than a bad blog will.

2. Set Yourself Up For Success From The Beginning
Don’t try the “let’s see what happens” approach, remember this is a business, and businesses do better with good planning and preparation. Research everything, make a plan and research it again.

Frustration and disillusion are the two major killers of the blogpreneur. Be your own worst critic before you start and you’ll do a lot better once you get going. By doing your legwork early, you’ll produce a better blog and see less setbacks. Trust me, you’ll see enough of them as it is.

3. Get Self Hosted
Get your domain name, it’s not expensive, get your design worked out, do all the legwork before you get half way and have to make changes, redirecting your blog etc. It’s worth the $6 a month to get self hosted right away. If only to avoid future problems.

Although you can be successful on hosted blogs like Blogger etc., most professional bloggers choose the freedom of self hosting. You have much better control over anything from your layout to your content. I also think that you also have better control over your statistics than most free services offer. And good stats are key to understanding what your customers are doing.

4. Read Your Competition
The more you read, the better you will get at understanding why the big ones are constantly hitting it big. It’s not just their size, it’s the fact that they have tapped into what people want to read. Read their posts and read the comments that are left there. The number of comments are a decent indicator of the overall popularity of a post. So pay close attention to the posts with many comments.
Make sure that you don’t ignore the lessons they are teaching with every post they put out there. The giants are where they are because they know this game better than you do.

Never steal posts; it’s just bad business to get a bad name in the blogging world. It will make success a whole lot harder in the long run. That being said, when you read others posts that you like or maybe disagree with. Posting your own thoughts and linking back to their post is perfectly acceptable. Again, treat this like a real business. Approach it with integrity; it might not be as easy as cheating and stealing. But it’s the only way to last long enough to actually make a profit.

The more you read, the easier you will have to find topics you want to write about as well. Think of it this way. Whenever you see a photo from a famous author’s home, you will see books, lots and lots of books. And I bet you that the RSS readers of most A-list bloggers looks like the library of congress.

5. Make Blogging Friends
There are lots of blogging networks out there. BlogCatalog is a good example. Start by joining one or more of these communities, participate in the discussions. You will be able to pick up a ton of great advice before you have to learn through your own mistakes.

Treating blogging as a business means that you need to network. Set time aside everyday to participate in some kind of forum or other area. You will save time, frustration and money listening to the ones that have been doing this for a while.

6. Write For Your Readers, Not For The Money
Sure, you want to make money, but the second you forget that you have to get and keep readers, you will lose them and your potential earnings with them. Great writing on interesting topics brings people. And people are what is going to bring you money.

You will see the phrase “content is king” enough times to want to choke the person that coined it with their underwear. It’s a cliché, but like every cliché it became one because it’s true. If your writing isn’t great, chances are that you won’t get very far.

7. Forget About The 3 Million Dollar First Month
Forget about the 20 dollar first month too.
You probably won’t make money in the beginning, at least not to any great extent. The reason why so many quit early on is because they are writing their hearts out and getting close to nothing in return. Few readers, no money, little recognition are the trademarks of a new blog. Add to that the mistake of thinking that in 9 articles will be able to retire, and the disillusion is complete. (The reason for all those abandoned blogs I mentioned)

Blogging is hard and harsh. Unless you are prepared to stick with it, you have absolutely no chance of getting anywhere. Check out any of the great sites. And you will see that they have hundreds of articles. A basic reason they are here now is that they made it past the initial hump when things weren’t going so well.

8. Don’t Promote Something You Don’t Have
When you are new, write and write some more, tweak your layout, get it looking right. Each time someone visits a brand new, mostly empty blog, you may be losing a potential future reader because they don’t find anything worth coming back for. Get a good 10 - 15 posts online before you even consider hardcore promotion.

Use this early time to have friends look it over, tell you what they think, give you feedback on your writing and everything else. This is your product development. The sooner you get it right, the better off you’ll be.

9. Promote Others Before You Promote Yourself
While you are still new, use the time wisely to build good relationship and networks on the social media sites. Reddit , Technorati , Stumble , Digg , etc. Building a strong network of people who can help you drive traffic later will get you much better results than starting too soon. And doing it yourself is not very effective.

By actively participating in these networks without excessive self promoting, you will build a strong base for when you need the leverage.

10. Learn Basic Search Engine Optimization (SEO)
There are a ton of books, blogs and sites out there, and your competition is reading them. You should too. Learn enough to understand what works, and what is absolutely essential. The best earning websites are often the ones with page one listings on Google. There are no two ways around this. You won’t need to be the best SEO guru in the world right off the bat. But stay on top of this as well. The rules of this marketplace changes every time Google rewrites their algorithm, and you’ll have to adapt with it.

Also, those that arrive from a search engine are more likely to click ads than those that arrive from other sources. Since they are already searching for something, and the ads on your page are likely to be as relevant as your own page.

And for goodness sake, avoid that black hat temptation like the plague. A lot of your work will be for nothing if you get banned. It might be tempting to take that shortcut to the Google first page, but it will bite you in the rear eventually.

11. Patience
Yes I said that before, but it seems to be in such short supply among new bloggers I thought I’d mention it twice.

12. Write 20 Timeless Posts Before You Even Think About Launching
Writers block is something that happens to everyone, and can kill a new blog very quickly. If you have a set of posts that you can drop on the days that you have gotten completely stuck, you will be able to maintain your blog. Also remember that you will get sick, stuck in an emergency or have something else go wrong that will stop your writing. Having a backup is never a bad idea.

This is also a great way to ensure that you have enough to say about your topic to actually have a blog on it. If you can’t come up with 20 posts when it’s fresh, you’ll probably have trouble coming up with it later too. Making them timeless means that you can use one whenever you need it, any other blog post is to be treated like perishable goods.

When you do use one, try to write a replacement for it so that you never run out of posts.

13. Think of the next step (Yes I know this is a list of 12, but 11 doesn’t really count)

Always think one step further, what is the next level of your blog. Is it a book? Webcast? Vlog? The options are out there to keep innovating yourself. Keeping up with trends lets you stay on - if not ahead - of the curve and keep your blog fresh and inviting. Also thinking to the next step of what you can offer your readers is the best way to make sure you are leveraging the earning potential. Just go slow and produce quality, remember that value in your offer is everything to maintaining a good relationship.

Remember, as a business, the blog is like any other, you need to meet your customers’ expectations in order to get return business.

Blogging as a business is probably one of the lowest cost enterprises you can attempt, but with that comes the hoards of others who have the same idea. You have to be able to both stand up over the crowd as well as outlast most of them before your investment will give you a lasting and significant return.

The Blogpreneur-3 will focus on the monetizing itself. Ads, products and services you can use to earn an income. Don’t forget to subscribe to get the remainder of this series.

Parts One and Two Are still available, Please remember to Subscribe to get the last part.

Your New Marketing Approach - Claiming to Care is not Enough

Customer Centricity has been a catch-phrase for a while now. Many businesses still fail to understand what this is really about. It is not the practice of kissing your customers derriere, nor is it about gathering metric data to ensure that you know the size and color underwear they prefer. To be customer centric means you are in the business of being a real solution to their problems. A real solution that exists at their leisure, the price they want, and most importantly, that meets or exceeds their expectations. It is imperative, because customer centricity is the only real approach that ensures positive feedback. Positive feedback is the name of the game for your future success.

Your customer is re-learning the habit of asking people for opinions before making a decision. This is becoming the norm for most transactions. Your current customers will be talking to your future customers. You can no longer make overstated promises. Your customer is too smart, and has the benefit of learning from your past customers.

Referrals and positive word of mouth are the two major drivers of business in the new marketplace. Either can only be achieved by positive customer experiences. The end result of the social media revolution is that the marketing of today and the future will focus on completely different areas than it has been in the past. Advertising and catchy sales pitches are already taking a distant second place to the power of customer recommendations.

Marketing Today - One Step at a Time

As discussed in part one and two. The customer wants to be in control of the information they are exposed to. This creates a set of problems for reaching out with new products or ideas. In the past, advertising was the key issue here. You would blast advertising until you got a market penetration and then streamline it for effectiveness. Today, since you are not welcome to do this, you are looking at a slightly slower start phase; the return is that the products that are successful will see rapid growth as they reach critical mass on the word of mouth level. To get there, you have to relinquish some of the control to the customer; they will decide when your input is welcome.

Stages of Marketing

In order to cater to the new buyer behavior, you have to build your marketing on several levels. It is not enough to market to drive a sale. Marketing now occurs in stages, success demands that these stages are created appropriately to meet customer expectation at each level. Catering to their needs for where they are in the decision making process. Each one of these stages has to allow for customer feedback, talking TO the customer is not enough, you have to be prepared to communicate WITH them.

I will skip over the steps of product development, packaging etc. for now, and move to the relationship focus in the information and sale stages. Getting the right product to the market however follows the same principle. Listen to what the customer wants first, and try to solve that problem with your product. Any other way will be less than successful as consumers get smarter. You are rarely welcome to tell them what their problem is, instead they want to inform you about the solution they want first.

Staging marketing for customer relations means being prepared to receive the customer as they become increasingly interested and by growing the relationship on all levels, propel that interest closer toward the sale. The key concept here is that each contact should be receptive, not intrusive. Provide useful information about the product or service. Only at a late stage will the pitch be successful. If you try to drive the hard sell too soon, you will begin to see a lot more lost sales than you have in the past.

There is no set number of stages required; some products and services will require more customer steps to reach a position where they are ready to make a purchase. Propelling the customer too fast may still close a sale, but it will be detrimental to return business. The key is to allow the customer to progress through the information, and interest phase much at their own pace. If you are prepared to care for the customer needs and wants at each of the steps in their decision making process. Your bottom line will show the results.

The customer will not follow the old chain of decision making. Since additional information, customer reviews, and opinions are so easily acquired; many chose to step away from a decision until they have sought advice. This means that a sale can be aborted at a late stage, but reassume when they have found answers to their questions and concerns. Each time the customer feels that they are missing information; the new buyer behavior is to back away and look for that information. You will see this happen less if your advertising and sales approach is one of full disclosure. The more you disclose up front, the less the customer will seek information elsewhere.

Accepting this new behavior is important. The normal old-school sales process is to "not let them leave." This may have been a good approach before. But today, it is merely another high pressure tactic, and is not the best way to becoming a preferred provider of solutions. Once the customer has the information they want, the sale will be very quick. Before they get there, pressure tactics will sour the relationship.

Social Media Brand Management

Word of mouth, often in forms of social media, can affect your company and product severely, often faster than you will be able to realize something has happened. Keeping a good birds-eye view of your brand name is important, and should be on every marketing and PR department’s priority list. Good reviews and bad alike should be noted, these are prime sources of customer feedback, and is both a cost effective marketing research tool as well as a marketing opportunity if managed correctly.

There are several schools of thought on how to deal with negative word of mouth. Most of them are bad ideas simply because they forget the initial point of view. This is customer centric relationship management. As with any other customer argument, you stand to lose more the longer you let it continue.

Attack
Thankfully, not the most common approach, but it happens nonetheless, Often done through anonymous accounts and other slightly underhanded approaches. Posting ridiculing, and or scathing remarks about the original poster. Be aware that this will be seen through in most cases, giving you even more bad publicity. And the blogging world is very good at finding out the facts behind these apparently anonymous accounts.

This can also be done with a lawsuit. - Unless this is your only option, DON’T EVEN THINK ABOUT IT!

You may win the lawsuit, but you have just branded yourself as Goliath, and you’ll have 100 supporters of David making your life a living hell before you know it. Your only hope here is a Pyrrhic victory. In other words, you lose either way.
In most cases, it will have the opposite effect in that it gives your original antagonist more publicity, and you will get a lot less business.

Ignore
Also a bad idea, but not as bad as attacking, ignoring it can make the situation escalate out of control very quickly. Someone took time out to rattle your cage, and if you don’t react, they will rattle it harder. Ignoring might be an option for the occasional blip on the radar. Not every hiccup needs to be addressed; in fact, you really shouldn’t address anything too small. Not everyone will like your product, don’t try to correct every opinion. But keep an eye on it - you may be looking at the tip of an iceberg.

Defend
Go on the defensive; explain why the customer that wrote or said something bad about your company or product is wrong.
Bad idea! The customer has every right to his or her own opinion. And you defending your position tells everyone else that you are uninterested in actually catering to their needs and wants.
People don’t like it when you tell them they are wrong to feel anything. And they will make you pay for it. Antagonize a dissatisfied customer and you will lose business rapidly. Always remember that you are dealing with people who will assume that your interests are opposed to theirs when you enter a public discussion or forum to defend your case.

Discuss and Remedy
Remember the basics here? Customer relation is what it’s all about. The best damage control attempts I’ve seen are the ones taking the approach to fix whatever problem occurred. By doing this, you are accomplishing three things.

1. If the person complaining is not interested in resolving the problem, they will become the bad party very quickly. So the original complainer will lose credibility if they refuse to accept your honest attempts to correct the problem.

2. If your honest intention is to find a resolution, the public forum is actually working for you. You will show everyone that reads that you ARE taking your customer relationships seriously, which is actually good publicity.
3. If the person stating the problem has no real reason to be dissatisfied, airing it out in public will prove this point as well. Your best effort to find the problem will reveal that there isn’t one to begin with.

Bringing it all Together

The marketing evolution has brought customer centricity into the spotlight. You have to approach every aspect of your business with the intention of improving the customer experience. That experience will rely on the simple concepts of honesty, integrity, and respect.

Your business can only survive for an extended period of time if your positives are greater than your negatives. Every time you fail to deliver on your promises, you are creating negative word of mouth. Fail to correct for it in time, and the market will bring a power to bear that no marketing budget in the world can correct for.

Refrain yourself from driving your sale hard, if anything, guide the customer to the point where they feel that they have made an informed decision. If you allow this, they will sell your business and product for you. Pushing and pulling might create a sale, but will have much less chance of getting good references. It will however be the best reason of you being at the receiving end of negative word of mouth.

By all means, use the power of social networks to address problems that are being raised. But do so with the humble approach of accepting the existence of a problem. Never forget that you stand to lose more by trying to protect your position than you do protecting the relationship.

Take care of your customers; the new marketplace will reward you when their references take care of you in return.
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Don’t forget to Subscribe to get the last part of the series. - Advertising, Going viral, and how to penetrate your target segment.

Customer Relations Management - The name has it completely right, Customer First, Relations Second, Management Third. So why is it then that we are constantly seeing this being about the company managing their information, their leads, their sales figures, and somewhere in the bottom tier, we remember that fancy speech the CEO made about customer centricity and throw in something about customer satisfaction.

Even though we know that the customer relationship is important to success; CRM software is sold and bought without this being much of an actually concern. This is why so many companies get the wrong results. They are looking for the quick measurable metric. Somewhere in that thinking, we forget that the customer was supposed to come first. Those who sell CRM software knows that the company is more interested in being able to measure success than in actually achieving it, you can see that in their sales pitches.

Don’t believe me? Go take a look at Microsoft’s Page for their CRM solution.
In a list of 10 compelling reasons, number seven is when they first mention customer satisfaction. And out of all those 10 reasons. Only that one deals with it at all.

The Harvard Business Review has an article about how Customer Loyalty isn’t all its cooked up to be.

The article comes down on pretty hard on the CRM software and how the expenses spent on Customer Loyalty isn’t paying off.
They talk about expenses of $2 million, 16,000 customers in the data, calculated correlation coefficients etc.

It’s really a very impressive article, almost as impressive as it is wrong…

The HBR article mentions nothing on how this money was applied, if it was applied to actually improve the customer experience, or whether it was simply slapped on there to make the sales force more effective in bothering the customer. Their idea is that a marketer should be able to more exactly predict the future spending habits of a returning customer. Exactly predict the future of any human behavior?!?

If we spend money on something, but do it for the wrong reasons and in the wrong way, we can’t expect the right results. As long as we call something Customer Centric, but make it about streamlining our own efficiency to do the same thing we’ve done before in higher volume and with greater precision, we are not focusing on the customer, we are annoying them. That is hardly going to produce the results we are looking for.

To try and find a way to exactly predict the customers’ behavior is not about loyalty, that’s about pencil pushing. To equate the customer that buys less often but comes back every time he is buying your product or service as less profitable and less worthy of attention means that you have completely misunderstood what loyalty can do for your company.

Since so many companies buy CRM based on the wrong reasons, and implement it based on those reasons, the mere thought that it would actually increase loyalty is ludicrous. To then measure it, without taking into consideration if the money was actually spent on the customer experience as opposed to just giving the sales force more data to bother the client with is borderline absurd.

CRM is a tool, like any tool it can be used in many different ways, some more effective than others. Until you use it to improve the customer experience, it isn’t going to do much for customer loyalty. It will end up being a huge waste of money.

If you want to measure your sales team, then pick the tool that is designed for that. If customer loyalty and their overall experience is what you are actually trying to improve, then make that number one on your list. Not number 7 of 10.