This post by Seth Godin got me thinking about how to generate trust when we are a new brand or startup on the block. Here is what I think:
Building trust is simple. Create stories by doing things which exceed expectations. One customer at a time. When we do it, they share their good fortune to have done business with us. Trust never comes from the brand owner, but the interactions with the brand recipients. They then deliver that trust to others who buy the brand off them metaphorically. Thought they’d get X and they got X+1. They tell people about their win. We win by being generous.
Startup blog says: Generosity is the fulcrum of trust.
In the super terrific web series Comedians in cars getting coffee, Jerry Seinfeld (the host) was asked what he thinks has more value in comedy:
A funny story which is suitable for talk show
A small bit more suited to a stand up session
Jerry had an unequivocal answer. He said; ‘A bit is gold’. He went on to say it was superior in every way to a longer piece that requires more explanation, and that’s why you leave long stories for the talk show. The gold bits need to be left for the stage – where it really matters. It’s in this episode we can hear Jerry tell the tale.
It’s the same when it comes to marketing copy or web copy or pitching for a startup. There’s a temptation to not want to leave anything important out. To give all the details so the person can work out the important bit about the project. In some ways it is a form of justification of what we’re doing. A basic fear of the simple. Almost as if we are short changing the audience if we give them less. The ironic thing is that we almost always want less. When it comes to branding and marketing, just like comedy – sound bites are gold. They are customer winning, they are pitch winning and they are life winning. The longer story is inferior.
The added beauty of the soundbite is that the receiver creates the longer version. So soundbites work harder with more people. They tell themselves whatever story they want to from there. They add the layers they want according to their perception. The sound bite is the seed, and the recipient is the soil.
Organise the worlds information
Change the world 140 characters at a time
A computer on every desk in every home
Yes we can
If people can remember our soundbites, that’s all they need to know.
I’ve been using a certain weather app on my phone for some time. It is called Pocket Weather AU – Lite. It is the free version. A few times when I have clicked in to check the weather, it has given me this pop up screen below:
This time in good faith, I thought I’d click through and see what the offer was. To my disappointment, it was a simple ‘buy our paid version‘ of the app. No benefit, no exclusivity, nothing had been unlocked, no reason, no thanks for using. Just their way of asking me to upgrade. Now if you ask me there cannot be a more insulting way to incentivise a customer to upgrade. Tell them they are a cheapskate, pretend to offer something better, and then give them nothing for using the service for a few years.
Here’s what I did. I deleted their app – got another equally good free weather app, and wrote this blog entry about what I think might not be the best way to engage an audience your doing business with. Some things these guys might want to consider:
- If you don’t want your app to be free, then make it a paid version.
- Insulting people is not a very effective way to get them to upgrade financially to a software or web service.
- Making promises of exclusivity and non existent benefits is generally not a good idea.
- Understand the economics of excess supply. There are a zillion other free weather apps and my cost of moving to another service is close to zero.
- But mostly respect people, and maybe make them some kind of offer or reward for loyalty if employing a fermium business model.
I prefer to be positive in life, and have not even enjoyed writing this entry. Maybe that’s the over riding lesson. Don’t lie, treat people with respect and positivity and they just might give you more money.
Today I was fortunate enough to be in the company of a few global thought leaders on life hacking and inventing money. Some of the ideas that were shared I hadn’t heard before, and others I knew and forgot (Which means I didn’t really know it). In any case, what better way than to start off the week by sharing a few of them here:
- When someone asks you how you can repay them after teaching them something of value – this is a good answer: Teach as many people as you can what I taught you.
- Wisdom is knowledge performed.
- ‘Do Power’ is the key not Will Power.
- In a developed economy, the amount of people who succeed is directly proportional to the amount who give up.
- Most people are not smarter than you / me / us, they simply do more than you / me / us.
- With a strong enough ‘why’ humans can do the most amazing things. The ‘why’ usually fails before anything else.
- TV can also be known as an E.I.R – or an Electronic Income Reducer. Watching lots of un-educational TV is a wealth hazard.
- All children are successful. But as they grow older they are taught to stop trying, stop failing, stop experimenting and stop having fun. This is why learning declines with age – it is not related to the body or the brains capacity to grow with age.
- What most marketers learn to do is ‘bottle the concept’. What they sell is often not the product but the ephemeral nature of what it represents.
- The more you go Pfff, the more life goes Pfff.
- We shouldn’t lead the way, we need to lead the why.
- The Alchemist by Paulo Coelho is now the 4th most read book in history. Worth a read if you haven’t yet.
Podcasting is back baby – and this time it’s bigger than ever. It seems as though after an initial flurry in the early web 2.0 era that people have rediscovered podcasting. Quite possible driven by quicker 3g downloads, smart phones and bigger data limits? – who knows. Let’s face it we can’t always give our eyeballs up while we are busy, but our ears can take in some vital information while working, exercising and doing pretty much anything.
Well some local Melbourne Startup Techie Business nerds have got together to share some insights once a week based on our own little journeys. We like to call it Beers Blokes & Business. A simple format really. We get together on a monday night, one of the blokes buys an interesting beer, we crack one open, he tells us why he chose it, and then we get into the business topic of the day. But it is always full strength banter.
The suspects are usual and include:
Sean Callanan (the founding father)
babyface Josh Rowe
You can click on this link to follow the ‘blokes’ on twitter and see more about our backgrounds. Each podcast includes 3 or 4 of the blokes depending on who is available that night.
So far we have published three of our podcasts and have hit the global top 100 for business podcasts on iTunes. So, the world is voting and they are feeling the banter. The really refreshing element is that it is not a mutual love fest and we all keep each other grounded with some classic sledging.
The three podcasts topics so far are:
#BBB 1. Self Learning – which was inspired by the tweet below:
#BBB 2. Build your network -
#BBB 3. Manage that side project -
They typically go for 40 mins in 2 x 20 minute parts. Idea for the commute or while exercising or in the gym. So be sure to add it to your podcast list on itunes here >>> click here for #BBB goodness. Actually the description on iTunes is pretty funny but I can’t take credit for it.
So have a listen and be sure to let me know what you think, and if you have any topic ideas leave them in the comment.
It’s not that difficult to be an expert on yesterday. The way it was done. The story of who won and why, or even the implementation of the known formula that works (worked?). Experts on yesterday have the rational and believable viewpoint. They can support their position on that pesky little thing called evidence. Of course evidence is always historical. We tend to find experts on yesterday in senior positions in organisations and they tend to proliferate and thrive in legacy industries. Places where protecting revenue is more important than growing it.
Ironically there is no such thing as an expert on tomorrow. There can only be viewpoints on possibilities and the willingness to experiment with those possibilities. What this means, is that the ideas presented by the tomorrow guy are often met with doubt and even derision. I guess we should expect this because most of what they predict simply wont happen. Statistically the tomorrow crew will be wrong more times than they are right. But within those ten crazy ideas they present one of them is usually what eventuates. And this is the time when what works quickly becomes what worked. Just ask Kodak management.
One thing I know for sure, is that experts on yesterday rarely invent tomorrow, and in times of significant change it pays to have a couple of tomorrow guys in your corner.
I was asked by a respected colleague from the technology world this question: What is marketing? Mind you, this is a guy who is involved in, and gets marketing. As anyone who works in marketing knows, this is a difficult question to answer. But when I provided some thought on the question, I found that my answer is now longer than it used to be. Hence, I thought I would share it here.
I’ve broken it up into 3 parts. The first in order to provide a baseline definition and context.
General simplified thought: The development, distribution and promotion of products and services to suit a specific audience in order to achieve business objectives.
Unlike what many lay people believe it is neither about selling or advertising, and is much more about business management in totality. Or even more simply, marketing is a fancy word for business.
Marketing Then: The tools of marketing which flowed naturally from this were known as the 4 P’s.
- Product – Solution
- Price – Value equation
- Place – Access
- Promotion – Communication
Historically the job of the marketer has been to strategically organise the 4P’s of marketing (the marketing mix) in order to deliver a sustained commercial outcome between the brand and the audience. But it does feel like this is just not enough…. especially not when all of the factors we deal with are being disrupted via technological revolution.
Marketing Now: If we want to be a great marketer in 2013 then I feel like there is much more to it today. With the process being non-linear all the forces interact more strongly. Our interests need to be broader than that of the marketer from 1950-2000. I feel there are 4 areas we need to be interested in. And only when we are interested in these areas, will we have the intellectual arsenal to develop an effective marketing mix, regardless of which industry we are involved in.
Anthropology: A genuine interest in and study of modern day human movement and historical evolution. The ability to understand and spot patterns based on changing macro behaviour. Being able to see the movement of the collective sentience.
Technology: A solid understanding of where technology is taking us in the medium term. Not just understanding how to use what has already arrived, but knowing what is coming next. Knowing the implications of disposable technology, ambient computing and internet everywhere. Believing in this and integrating it into everything you market. In an age of exponential change there is no choice.
Finance: A solid understanding of what makes industries and the economy function. A financial brand which goes beyond COGS (Cost of goods sold) and marketing budget parameters. We need to be adept in raising capital, investing and ratio analysis…. all forms of finance are integral in what A grade marketers need to know.
Commerce: A true understanding in the art of connections. The why and how do certain parties transact with each other. How are they connecting now, and how will they connect tomorrow. It goes beyond distribution points and pricing models. It digs deep into need scopes and relative utility. It’s the real side of human interaction where commerce facilitates life goals and money is just the way we keep track of who is doing what.
A lot of this might sound meta physical, and it is. But like all forms of evolution, new layers get added – and these four elements are the layers which will define how the successful entrepreneurs and business people of tomorrow need to think.
If we ask any well know brand who their major competitors are the answers are reasonably predictable. It’s those brands who have that other part of the market share pie. This is what we all got taught during marketing class, and it made sense in the AC Nielsen TV ratings market share industrial era. The problem is that it makes a lot less sense as we transition to the digital age. An age where incumbents are constantly being exposed on the flanks, rather than by direct competitors. If we went back and asked a number of industrial world businesses who their main competitors were, the story becomes much clearer:
Kodak: At first it was Fuji & Agfa, closely followed by Cannon and Nikon…. but really in the end their nemesis came from a different planet. The planet of Apple, Google, Instagram and Facebook. What is Facebook really other than a Kodak moment 2.0?
Encyclopedia Britannica: Clearly World Book and later Encarta, the CD ROM based delivery by Microsoft. But in the end it was you and me who provided more accurate data on the subject of ‘everything’ as we populated both Google and Wikipedia. We turned out to be more accurate, more timely and we came at everyone’s favourite price – free!
Free to Air Television: First became very worried about movie rental stores (VHS, DVD) followed by cable TV. While now their real worry is the other screens in the home as Netflix, Youtube and Pirate Bay eat their lunch.
There are of course an unlimited number of examples with the same story.
But the lessons in a period of technological transition are two fold.
Incumbents: If your company or brand is in a battle defending revenue and market share from industry players, you’re focusing on the wrong area.
Entrepreneurs: If you’re aiming to disrupt an industry that has intense and focused market share battles, you’re focusing on the right area.
Startup Blog says: In times of transition, it pays to look to the sides instead of straight ahead.