3 Things to know about creating Frictionless Transactions

I can't tell you how many articles I've read about how the world of business is changing; or why your "old school" ways of selling are just not working anymore; or if you're not working the social channels into your marketing, success will be elusive at best.

All of those articles are right, the world is changing (I prefer to say evolving), your customers and clients are changing, there is absolutely no way to deny any the facts. BUT, the basic concepts don't change - and they haven't changed for centuries ...

• Business is based upon transactions
• Those transactions happen between the provider and consumer
• Both sides of the transaction will attempt to maximize "value"
• That "value" is realized through transactions

At it's core, your business, my business, the guy's business across the world is based upon the simple concept of exchanging value between the provider and the consumer. Even in the case of a consumer receiving something "free" there is an exchange of value. Google is a perfect example, they provide a "free" service or set of services in exchange to (1) collect data and (2) show you advertising. And to the paid advertiser, they provide a service that (1) delivers a huge worldwide audience and (2) that audience can be targeted based upon "what they do".

So if business is based upon transactions, what is a frictionless transaction?

A business transaction can be thought of as having motion - so if you look at Newton's Laws of Motion he states three principles about the forces involved...

1. An object either remains at rest or continues to move at a constant velocity, unless acted upon by an external force
2. the net force on an object is equal to the rate of change of its linear momentum
3. All forces exist in pairs and the two forces are equal and opposite

So what does this really mean in the world of business? The following three things have to take into consideration to create a Frictionless Transaction...

1. A business transaction does not happen without applying a little force

I tend to think of most consumers to the be in the state of "rest" except for the most basic of needs (think Maslow's Hierarchy). So, Newton's first law states that "an object will remain at rest until acted upon by an external force", and that external force is you.

In our increasingly digital world, that external force can come from any direction - it could be a tweet, a web search, an online ad, a recommendation from a friend or someone with influence - but those are just the online versions. There are physical world versions, instore displays, printed coupons in a direct mail piece, a discussion over coffee with a friend, a tradeshow, a billboard, a TV or radio ad or even a "cold call" from a salesperson.

Is it the full responsibility of the provider to create the force necessary to get the consumer moving.

2. Once moving, transactions have their own speed,

Once we get consumer moving, there are two things we need to ensure (1) they continue to move in "our" direction and (2) we don't do anything on our part to slow it down.

Have you heard the expression "it's like herding kittens"? Well, the consumers in your pipeline are exactly like that - they don't want to be "sold" but they do have to be convinced. In the process of being convinced to purchase from you, they will begin to move away from "you" as the provider and start looking at the "category" as the solution. This is where lead nurturing comes in - you can either help or hinder the purchasing process.

This is where having a deep understanding the purchasing journey comes into play. But with all things "experience" you have to be willing to fail to ultimately have success. Regardless of the what you call this process, it comes down to three factors (1) try something (2) measure success/failure and (3) adjust, revise and repeat. This means you will spend money and money resources trying new and different things, measuring them against expectations and trying again. I'm not going to go into all the ways that experimentation can happen - there are a hundreds of articles about that - the key is continually learning and improving. And once you have done it enough times, you will being to see what works and what doesn't for your product or service - at the point you have success, and you understand the purchasing journey - you can start to replicate it.

Is it the full responsibility of the provider to understand the customer's purchasing journey, and make it as easy as possible.

3. All transactions have resistance points, it's up to you understand them

Expanding upon the previous point of understanding the purchasing journey, you will uncover several points of resistance. I would like to say they are "constant", but they aren't. The third law of motion states that all force exists in pairs, and they are of equal. In the world of sales, these resistance points were called "objections" and to master sales, you had to overcome these objections. As we move more to consumer-directed or consumer-supported sales process (happening outside any human interaction), overcoming the resistance of the consumer can be much harder - mostly because no one is there is actually "ask" for the sale, then hear the objection to purchasing "right now".

So along with the purchasing journey, you have to understand these resistance point - and many times, you need to understand (and group) purchasers so you can virtually ask for the sale, get feedback and then adjust to their needs. All while attempting to speed the transaction, rather than slow it down.

A perfect example of this point is Progressive Insurance and the quoting process for car insurance. Car insurance is price sensitive service, it's complicated, has lots of variables and every car insurance company has their pricing scheme. And everyone wants to "feel" like they are getting a good price, even for something they "required by law" to purchase. Progressive new this was a resistance point and slowed down the purchasing decision - they realized two things (1) price shopping was going to happen and (2) if someone purchased from them, and later found out they could have gotten a better price, they would ultimately lose that customer. Why not circumvent that process and show my price and the estimated price of my competitors? It's a brilliant move, they understood the transaction resistance point, and then mitigated it.

It's up to you to understand the transaction resistance points, then find ways to eliminate them

Is it possible to have a true Frictionless Transaction?

I believe the only way to eliminate ALL friction within business transactions would be to eliminate people from the process. I do believe it is possible to understand the consumers of our products and service - and that means understand who they are, how to help them along the purchasing path, how to keep them focused on purchasing from us (or eliminate them), and ultimately, how to evolve them from a "transaction" into a long term customer.

What are you thoughts? Do you have any good or bad examples? How do you do it for your company? I'm interested in hearing what you have to say. And if you liked this article, do not hesitate to Like It and Share It.

I love new ideas for businesses, products or services. Email me at amckinnis@gmail.com and let's talk about making yours a reality.

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5 keys to being a successful product marketing professional

When you say you're a Product Marketing professional, do people ask you what that is? Or possibly confuse it with Product Management? How about those people that don't understand where the lines between the traditional marketing function, sales and creative/promotions begin or end.

I've been in this game for years, have seen it from multiple angles and there are five distinct activities a Product Marketing professional much master to become successful. Now my background is primarily in IT Services (managed services, outsourcing services, consulting, advisory, etc.), so when I'm saying "product", I'm really talking about services - regardless, the five activities are the same for any product or service - high tech or low tech - it's merely the nuances of the particular "thing" being marketed.

Key Activity 1: Market Analysis

If you don't know your target, then anywhere you shot will hit the mark. The first key activity is Market Analysis - and it's more than just doing a quick internet search or making a bunch of assumptions. It is a systematic process of determining where to spend a limited budget (even big budgets have limits) to do two things: (1) expand your market, revenue and client base and (2) deepen your existing client relationships.

As a Product Marketing professional, it's your job to understand the market - past, present and future. Domain knowledge is helps, but more important is having the mindset of a treasure hunter, looking for opportunities to solve problems.

Get this one right, and your job is much easier with the other activities.

Key Activity 2: Service Strategy

Through your Market Analysis, you've discovered market areas matching your service criteria. Moving that analysis to the next phase, requires understanding how these opportunities can propel your organization towards it's goals. Translating a big number such as the total value of the market to what is available to your company, taking that available market and matching it to your company's financial goals, understanding if you can credibly enter the market or if your sales teams can be trained and motivated, are all part of the overall strategy of the service.

Key Activity 3: Service Planning

Service planning is where the "rubber meets the road". As a Product Marketing professional, you know the market, the competition, how those match to your specific company and now it is time to start planning the service for release to the market. Working hand-in-hand with Product Management, you start putting together what features, functions and capabilities are included. Working with sales, you determine the best positioning and what value will resonate with clients. Other key areas of involvement come from engineering, delivery and operations. Service Planning is that key activity where managing relationships and working with cross-functional teams will be the driving force of success or failure.

Key Activity 4: Marketing Programs

As marketing professionals, this is where most of us shine. Taking something from an idea to market, seeing it mature into a real product, is exciting. Now it's time to talk about it; using a variety of tactics, from traditional "push" advertising to engagement and social media. We match our messages to our audience, we tell the story of the service, we begin the process of gaining trust with those mostly likely to purchase. One of the areas which gets overlooked by many companies, especially in the service industry, is "testing, testing, testing". At the point of introduction, although we believe we have designed the right "plan" - it is merely an assumption until we release it. Once released, the Product Marketing professional has to be willing to follow the path of least resistance, and change course as required. I believe we only have ownership of the end goal, the path is dictated by too many forces to control, flexibility is the watchword as we manage our services.

Key Activity 5: Sales Readiness

In my background, the route to market was through a sales force - the problem is, a sales force only gets excited after the first "win" - it gets easier with each successive win. They have limited time to sell, are compensated for closed sales and want their lives to be as easy as possible. Our jobs as Product Marketing professionals eliminate as much "friction" in the transaction as possible - make it to engage clients and close the sale. To do that, we also have to ensure our clients understand the service, the benefits and how to purchase. If there are no sales, you don't have a real product - it's still just an idea.

There you have it, the five keys of to being a successful Product Marketing professional. You may love one or two, but you've got to master all of them to be successful.

In future articles I'll explore each one in more depth.

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Difference of Opinion...Nothing has changed

I just received an email from the American Marketing Association, advertising an upcoming podcast with the tittle "What’s changed in product development and marketing since 1980? Everything" -- that got me thinking (btw, I'll add the link to the AMA website and webcast below, just incase you're interested).

Has EVERYTHING changed in marketing?  Or have things just evolved over time?  My belief is that things evolved - naturally.  It's not always a smooth curve or path, but it is a progression.  And most of that change has been brought about by technology - both in how our customer's use it and how we use it for Marketing.

But first of all, let me explain that to me - MARKETING - is much  more than just communicating, advertising, and fancy design work; it's bigger than awards for those that produce those things; it's so much larger than Super Bowl ads.  At it's core, Marketing is a professional discipline that drives revenue, top line stuff.  It is the high octane, jet fuel that speeds the business engine down the road.  I don't care if it's the smallest business to the global megacorp - Marketing is there to drive sales and revenue up.  There are things we could talk about in the area of cost reduction - but in my mind, marketing is not about the bottom line, it is about the top line - end of story.

And how do you drive the top line?  You create products and services people want to buy, you build them in such a way they fit what the way a customer wants to pull money out of their pockets to pay for them and create a "promise" to that customer - that that money will be justified by the "experience" they get from your product or service.  Plain and simple - Marketing supports the buying decision.  Now, if you have crappy products or service - the promise of the product or service better be that of a "it's not the best, but it will do" - and if you have superior products or services, the message better be about that, and the price should reflect it.

That hasn't changed.  People want to buy products and service - it is up to Marketing to let them know about how "your" product or service fits within their perceived idea of that category of products or services.  Now what has changed is how we "tell" our stories.  How we extract information.  How we use that information to build the top line.  But the basic premise of marketing has not changed - it's our job to know the who, what, when, how, and where - then apply it to the product, price, place and promotion.  The tools we use are both old school and new school - they are applied with an artistic flare and scientific precision - when done right, we support the sales efforts to create friction-less transactions with our customers, matching their "expectations" of what they will receive.

Marketing hasn't changed - times and tools changed.  That's my opinion and I'm sticking to it.

Links:
AMA 
Podcast/webcast - What’s changed in product development and marketing since 1980? Everything.

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Stories | what makes ideas come alive

I was talking with a man that has a big idea yesterday. He wants to change how we used social media - and to make it "work" it better for those business and organizations that can't afford to hire experts.  I applaud his idea - but I told him he needed to start creating the "story" about how his idea will do what he "thinks" it can do.

Stories aren't about creating false impressions, they aren't about "marketing" or advertising - they are about people.  And at the end of the day, it all comes down to people - what they do, what they think, how they feel.

We've all heard the saying "sell the sizzle, not the steak" - but I believe it has to go deeper than that - it has to go to the essence of "why you steak in the first place".  What's the story there - can you help the "reader" see themselves in that story.

If you have a deep desire to change something, and a way to change it - then think through the story of how that can happen.  Create a feeling, create the mood, create the motivation for some to say "Yea, I want that, I can see myself doing that (or buying that, whatever)".  Create the story behind all the people involved - in the big idea I mentioned, there are multiple people that would benefit - they all have a story, write it for them

Stories are more important than you think - start thinking about the story-line you want to create and then start writing it.

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Context...the missing ingredient

The most important thing to understand about customer expectations is that they're defined by context.

Have you ever had an experience with a business and said "I'm never buying anything from them again!!". I'm sure you have, in fact everyone has that experience. The reason you feel that way is because they missed your expectations. You thought or believed one thing about the company and they delivered something completely different.

For example, if you go your doctor because you have a severe cold and he tells you to loose 20 pounds and exercise more - you're probably going to be confused. Your expectation was determined by two very important things: (1) you're sick [which was the context for going to the doctor] and (2) you expect him to provide some immediate answers on how to get well. If he does neither - then you'll be a little bent at the doctor.

Another example...you see an advertisement for a new restaurant, the atmosphere looks great, the food looks great, everyone appears to be enjoying themselves. So you go to check it out. When you arrive, you are the only one in the place, it's dark and shabby looking, and the food is terrible [along with the service]. Well your expectation was created by the advertising - they created what ended up being a fantasy. Your context will be much different the next time you see any advertising by them or if you hear their name mentioned in casual conversation.  And probably in the meantime, you will tweet, facebook, yelp, urban spoon, etc. them to get your point across - that they did not meet your expectation (in fact, they lied to you through their advertisement).  

My point is that as business people, we need to understand the context and support customer expectations as much as possible.  Not that you want to say "look, my place is a dump and the food is lousy" - but you might want to lay off the advertising until you get your place spruced up a bit.  Set expectations that are just a bit below what you are going to deliver - then you can hit the market and exceed expectations.  That's much better than missing.

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Trendwatching.com | Our new BRAND BUTLERS briefing (including 50 examples). All yours.

Dear Arnie, From consumers yearning for service and care, to the burgeoning mobile online revolution: everything seems to be in place to turn BRAND BUTLERS into one of this year's most important marketing trends. Read our new Trend Briefing to find out about the drivers behind BRAND BUTLERS, and how to apply the many insights. Plus learn from more than 50 trend examples from brands already capitalizing on BRAND BUTLERS. All yours! More >>> Oh, and please don't forget to share BRAND BUTLERS with your colleagues. Happy spotting, Reinier Evers founder, trendwatching.com reinier@trendwatching.com

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From Trendwatching.com | 10 Crucial Consumer Trends for 2010

Whatever you believe about 2009 and the world around you, there is one constant - CHANGE. As we look behind us and what has happened to our "world" during the past 12 to 24 months, we must understand that is it only prelude to what is going to happen in the future. As I like to tell my kids, sad [or happy] stories are only that way because of where they end - because there is always another day and new beggining to every story.

Enjoy the predictions from Trendwatching.

2010 is rapidly approaching; we hope the December edition of our Trend Briefing, detailing 10 trends for 2010, will assist you in getting things going (again). Go straight to the Briefing, or quickly scan the 10 trends below: 1. BUSINESS AS UNUSUAL Forget the recession: the societal changes that will dominate 2010 were set in motion way before we temporarily stared into the abyss. More » 2. URBANY Urban culture is the culture. Extreme urbanization, in 2010, 2011, 2012 and far beyond will lead to more sophisticated and demanding consumers around the world. More » 3. REAL-TIME REVIEWS Whatever it is you're selling or launching in 2010, it will be reviewed 'en masse', live, 24/7. More » 4. (F)LUXURY Closely tied to what constitutes status, which itself is becoming more fragmented, luxury will be whatever consumers want it to be over the next 12 months. More » 5. MASS MINGLING Online lifestyles are fueling 'real world' meet-ups like there's no tomorrow, shattering all predictions about a desk-bound, virtual, isolated future. More » 6. ECO-EASY To really reach some meaningful sustainability goals in 2010, corporates and governments will have to forcefully make it 'easy' for consumers to be more green, by restricting the alternatives. More » 7. TRACKING & ALERTING Tracking and alerting are the new search, and 2010 will see countless new INFOLUST services that will help consumers expand their web of control. More » 8. EMBEDDED GENEROSITY Next year, generosity as a trend will adapt to the zeitgeist, leading to more pragmatic and collaborative donation services for consumers. More » 9. PROFILE MYNING With hundreds of millions of consumers now nurturing some sort of online profile, 2010 will be a good year to help them make the most of it (financially), from intention-based models to digital afterlife services. More » 10. MATURIALISM 2010 will be even more opinionated, risque, outspoken, if not 'raw' than 2009; you can thank the anything-goes online world for that. Will your brand be as daring? More » We're confident that applying the above to your business will bring you at least one profitable, zeitgeist-compatible innovation in 2010! Best regards, Reinier Evers founder, trendwatching.com reinier@trendwatching.com Our contact information trendwatching.com Web address: http://www.trendwatching.com/ Email address: info@trendwatching.com Office address: Laurierstraat 71, 1016 PJ Amsterdam, The Netherlands

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Sears | trying something new...

Twitter is a great place to meeting people [sort of], find out about the newest stuff [lots of links] and just keep up on trends.  Well, as I was reading the timeline flow of tweets, one came up that could not resist -- Sears is testing something and offering some goodies along the way.

The following blog explains it better than me and provides the "critiera" to be a winner for the "make a wish" contest.  Great stuff and I hope I get my wish [the iPod Touch pack - now that would be cool].  So - let Sears have it and maybe you'll get your wish granted.  If not, it's a great way to see if Twitter actually can make an impact.

http://technosailor.com/2008/12/15/sponsored-post-granting-a-wish-with-sears/#respond

[if you have a Twitter account, you can follow me at http://www.twitter.com/amckinnis ]

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Woot! | the art of blending products with creativity

Who says selling has to be boring?  At Woot! [the deal a day website/blog/shopping phenom] they believe selling should entertain and engage the buyer (look, it's storytelling again).  We all want great deals, in fact at the heart of it, that's what Woot! is all about, but we also love stories.  With a rare mixture and blending of technology, products and creativity - Woot! as achieved just that.  Below is an example of their creativity and deal making - selling a boring ole HP Desktop PC [when the laptops and touchscreen are the really cool products]...

When he came through the back door, the kitchen was quiet and empty. He thought maybe she wasn't home. But he found her, sitting at the dining room table, in silence. A cigarette burned in the ashtray next to her, sending grey curls of smoke up toward the ceiling. At first, she didn't even look at him. Then: "You're back."

"I'm back," he sighed.

"Did you forget something?"

"No. I'm coming home."

She stared into his eyes. "I don't know why. We've said all we have to say. You know how I feel. I know how you feel. Unless you've changed your mind about buying that new PC."

"I haven't. But-"

"But nothing. You know I think we should buy a Blu-Ray player instead. That hasn't changed. It won't change."

"I know."

She looked away. "So what are you doing here?"

"We… we can have both."

"We've already discussed this. We don't have the money to buy a computer and a Blu-Ray player."

"What if they're the same thing?"

Her eyes locked on his. "If you're playing with me, I swear to God – if this is a joke…"

"It's not a joke. The HP Pavilion S3430F is not a joke. It's real. The Phenom-9100 1.8Ghz processor, the TV tuner card, the 500GB hard drive, and yes, the Blu-Ray drive – all real."

"So… we can have it all?"

"Yes."

"Everything?"

"Yes. Yes. Yes."

She was up, going to him, finding the space between his arms.

"Let's never fight again," she sobbed. "Never let me go."

"I won't," he assured her. "I won't." As they entwined in the darkening dining room, their bodies fitting together in all the familiar ways, just one thought distracted him: Now I just have to make sure she never finds out I've been sleeping with her sister.

Remember, engaging with your customer, telling stories - making it fun.  That's how you create a sustainable business, regardless of economic conditions.

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Checking up and Checking In

One secret of successful service providers is checking in (or up) on their customers. In some cases, it is to ensure they are happy with the service that everything is all right and nothing else needs to be done. In other cases, it is see if anything new required. In either case, it provides additional linkage between you and the customer.

A perfect example of checking up is the dentist my family uses – Dr. John Smith. After every procedure with any family member, he calls within 24 hours to make sure everything is all right and that there are not questions or problems. These calls don’t last long, but they leave a lasting impression – Dr. Smith cares about us. Does that mean we are bosom buddies or meet socially, no. We have a patient/doctor relationship. But anytime dentistry works its way into a conversation, I recommend Dr. Smith, mostly because he is a true service provider.

Not all services lend themselves to the check up/in, but for those that do, this is a powerful way to create a major difference between you and your competitors.

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Customers purchase services, Clients buy relationships

OK, by now you’ve determined that I’m opinionated, I have a very distinct idea about success and business. But here’s the deal, you may read this blog hoping to find a couple of ideas, phrases or concepts you could use. But you’ll potentially buy my book (if I ever write one), or visit my web site, or ask me to consult with your company or speak at your meeting because I have established the foundations of a relationship with you.

Every company has “faceless” customers that purchase from them. Not everyone wants to be involved in every company they purchase from. By the mere fact that you don’t try to become “personal”, you are giving them what they want, anonymity. But be careful, customers are shy and most receive such bad service in the past, it’s easier to buy and go.

As a service provider, it is your job to find out the type relationship your customers want to have with you. Determine how “personal” they want to be, but be honest in developing this relationship. Be prepared to run the gamut with individual customers. Be aware of their “moods” and abide by them. Sometimes all we want to do is buy and go, other times it would be nice to chat and build a relationship.

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The customer is not always right

I know, so far I’ve rattled on about how your customers rule the kingdom and you are the dutiful servant. Well sometimes “the emperor has no clothes”.

Its already been discussed that each of your customers are selfish and in that state, they are also self serving. Meaning, they may not want you to go out of business, but that doesn’t mean they won’t bend the rules to their favor.

The rule here is deal fairly with your customers, but don’t allow them to run all over you. If you provide additional service to your customer, make sure they know about it. Provide a Zero Dollar invoice detailing the work. If you have at strict policy (of any kind), stick to it. If one of your customers doesn’t like the work you performed, or you missed some expectation, try to make it right. There is not need to get angry or upset. If there’s a difference of opinion, deal with it quickly and efficiently. But with some customers, you could go the extra mile and they’d ask for two.

Whatever the cause, attempt to make the best of the situation, you may not end up with a great working relationship, but you may walk away with mutual respect.

Do the best you can do; meet your expectations and you’ll satisfy the majority of your customers.

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Walk away from bad business

It’s not always possible to determine who is going to be a trouble customer, but once you realize you are in a lose/lose situation be honest enough to walk away.

During my time at one company, there was a saying about this type of situation “the large sucking sound”. It was used to refer to a client account that wasn’t going right (to either the expectations of the company's management or the client). It meant that the client was making noise and “sucking” up additional resources, making the account spend more money than the client was being billed. In some extreme cases, this was necessary to turn a bad situation around and truly create a win/win for everyone. In others, nothing could turn the account and eventually attorneys were involved (which is never a good situation).

We knew, and I assume senior management knew, which accounts were destined for legal action, but no one stood up to stop the situation. I’m telling you now, if you feel you are in a bad situation, it probably is a bad situation. Don’t let ego get in the way of a good business decision. It’s better to recognize it early and deal with it, than to waste time, money and resources to save a sinking ship.

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You can’t please everyone

Just as in our personal lives, your business can not please everyone. The total population is not your potential market. If it is, I congratulate you on your success (or your mastery of government regulations). But if you find yourself in the situation, you have a bigger challenge than any company and that’s competing against yourself and keeping yourself motivated. But for the majority of us, that’s not the case.

To the original thought, You won’t be able to please every customer. You can excel in your industry and be lauded by the majority of your customers, but there will always be someone that doesn’t like you or your service. I say great. That means two things: 1) You are creating a service that meets the needs of a particular market and 2) there’s room for improvement.

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Be Consistent – Customers don’t like surprises

McDonald’s (and more specifically Ray Kroc) built the fast food service industry on one major principle – consistency. Go into any McDonalds anywhere in the world and order a Quarter Pounder with Cheese and fries – and it will taste almost the same. In fact, the experience is the same (with small nuisances) from location to location. Love ‘em or hate ‘em, you’ll never be surprised.

There’s a story about the McDonalds French fry. It goes something like this…

During the early days of franchises, each location had some latitude concerning menu items, but there were two things that had to be the same, the famous “little” hamburger and the fries. As franchises spread across the country, the fries didn’t come out right at each location, Ray Kroc wanted the crispy, golden brown fry, not over cooked or undercooked. All the restaurants used the same potato, the same oil, but some locations just couldn’t get it right. After lots of trial and error, McDonalds found out it was a certain combination of the right ingredients, cooking temperature, cooking time and something very important (but overlooked), humidity. Once it was discovered, McDonalds not only wrote a detailed process document, they also had special fryers created. Consistency was that important.

One special note here , I don’t believe anyone should provide poor service, but it is better to provide bad service consistently, then great service sporadically. At least with consistent bad service, your customers have the proper expectation going into the transaction and can make decisions appropriately.

A personal note on bad service. During my 20’s, I lived in Denver and frequented a local neighborhood restaurant/bar. It was a great place to go and have a beer and some Mexican food and usually had a line for dinner. One of the things my friends and I enjoyed was going in on Sunday mornings and getting breakfast. They opened around 10am (I say around, because you never really knew if it would be 9am or 11am). As good as the service was at night (consistently rated top neighborhood bar in Denver), Sunday morning was the complete opposite. Sometimes they’d be open, sometimes not. Sometimes you get waited on, other times it would take forever just to get coffee. But the best time (we still a laugh about it) was the time we went in, sat down, order and served coffee, ordered our breakfast and waited. About 30 minutes later the waitress came by to tell us that they ran out of eggs and the cook went to go get some, but hadn’t returned.

They point is, we knew the service was going to be bad on Sunday mornings, but we loved going there. Just to see what would happen next. It was bad, but it was consistent.

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Customers are Selfish

My wife will tell you that I am cheap (I prefer thrifty). I hate to throw money out the window. Case in point, I get my haircut at the cheapest barber shop in town and the only reason I go there is because they don’t expect a tip. BUT, I don’t want to look like I got the cheapest haircut in town.

This illustrates the point – customers are selfish. They want to receive a better service then they are willing to pay for. I only want to pay $8.00 for a haircut, but I want it to look like a $50.00 haircut. That may be unrealistic; nonetheless, that’s what I want. There’s an old saying “a $100 shine on a $5.00 pair of shoes”. ; That’s what your customers are looking for when they pay money for your service. And it’s not necessarily about getting something cheap. In the haircut example, even if I chose to pay more money for my haircut, I would expect it to look more expensive than it really was.

It is a fact of life your customers will demand more perceived value than they are willing to pay for. So if you are a lawyer and charge $200 per hour, your clients won’t be satisfied unless they perceive the end result to be work at least $250 or $300 per hour. Your customers expect more value out of your service. It’s not a matter economics, it’s that your customers are selfish. They want that $100 shine or the $50 haircut. If you can provide that kind of exceptional value, you’ll create customers for life.

One other interesting phenomenon about the selfish customer, they want to know they made the right decision. They will look to re-enforce that decision in any way possible. One of the reasons we recommend companies to our family and friends is to re-enforce our purchasing decisions. Clients and customers that refer people to you may be the most selfish people you deal with. They want other people to see what they see, they want a third party to validate their purchasing decision. At the end of the day, customers are selfish and the more selfish the better for all of us.

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5 Great Ideas for the independent thinker....

I get to drive several miles to work, so I get to spend some quality time with myself each and every day. For many people, this would cause a problem, but I like the ability to think about stuff. Last week I started thinking about internet ecosystems and how you could put things together. These are not mashups mind you, but taking two or three sites and collaborating.

#1 Thought -- YouTube and GarageBand

What if some enterprising young video producer/creater/editor was to take one of the bands from GarageBand and create a music video. Both sites would get cross promotion. Here's why I like this one -- there is lots of talent out there, but talent does not pay the bills, get you noticed or really do anything but make your mom happy. But, if you can get a couple talented people together, focus their energy -- then you have a winner and sometimes magic happens.

#2 Thought -- GarageBand and XMRadio

What if XM had a show or channel, exclusively devoted to indie/undiscovered music and musicians. OK, both are into music, but just think about how powerful this one would be...One channel, exclusively devoted to "unknowns" - maybe have a "famous" person DJ? Do random selections, but have specific "shows" for a type of music (Jazz, Rock, POP, Country, etc.). I have no idea how much it would cost them - but have you seen how many tracks are available on GarageBand?

#3 Thought -- Blogger and some book publisher

This would be primarily about short stories (there used a be a site dedicated to unpublished authors, but it died, can't remember the name) and cross promote them. Many bloggers are not really writers, they write, but there is not a "story" being developed. BUT, there could be a new breed of blogging, one in which you tell a story - short stories or long - one chapter at a time. The cool thing about this one would be having the ability to see a writer develop over time - or have the "audience" help develop the story line and characters.

#4 Thought -- YouTube and Comedy Central

How about have a "review" show for YouTube on Television!! Look, there are lots of videos on YouTube (just like lots of people blogging) and most is crap - but some is really good (and you can't always know which is which by the number of VIEWS!!). But some cable channel will figure this one out and see all these video as "free or virtually free" content - create a review show for YouTube videos - or use some of the more popular YouTube reviews to do the job.

#5 Thought -- YouTube and 43Folders

How about someone taking one of the "things" or "places" or "people" from 43Folders and do a video. Say it's a thing "I want a video IPOD", take that as the primary idea and go shoot a video - find some people that actually have a Video IPOD and interview them, go to a store that sells them and find out what the salesperson has to say about, do a review - whatever - you could do this on any aspect of the 43Folders site.

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Is it the Long Tail or just great self promotion?

Lot's to good stuff about about the Long Tail (the article, turned manifesto, turned book, turned iconoclast) by Chris Anderson has lots to say about the "unfortunate 5 million" out there that make up "bulk" of internet traffic and one of his favorite industry - music. Well, I've got an example of Long Tail success for you from YouTube...

There is a musician by the name of Terra Naomi that is one of the most popular artists you never heard of. Her self produced music videos get over thousands of hits (one has had over 100K hits) meaning she is a very popular on YouTube. Now, for the music industry (and artists/songwriters) the internet has totally changed the rules of the game. Sure, there are still the major acts - but smaller bands, that wouldn't have an audience beyond a college town, now can allow the internet to carry their music around the world (but I digress of my point)...



The fact that Terra Naomi has decided to let the internet carry her music is only part of the story - what I believe is interesting, is that she created a video showing people HOW to play her song. Going through cords, words, transitions, the whole bit - and there are about 100 variations of one of her songs on YouTube - think about that. There are at least one hundred people willing to take the time to learn how to play her song - this is not U2 or Rush or Britney or Usher - this is an unknown artist in SoCal!!

Now, she has a CD on sale, been featured on several websites, gotten her songs on iTunes, been on a few TV shows, etc. and so on. This is an internet success story and she is the poster child of the new music industry. But of course, once she gets signed with a major label, the YouTube stuff will have to stop - she'll probably have to stop blogging and take down her web site. I guess success does have a high price to pay.

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7 New Manifestos from ChangeThis

Personally, I like strong opinions - even when I disagree with them. At least the other person is passionate about their stance - nothing worse than someone being wishy-washy. Well, you need to check out these new Manifestos from ChangeThis...

Note: The following is from the alert email I get from Change this, I did not write it (make sure I give attribution properly, I would like someone to do for me)

1. POLKAS, PYROTECHNICS and POINT Ds: Pieces and parts of Seth Godin's new book, small is the new big.
by Seth Godin
Here's just a sip from Seth Godin's latest book, small is the new big, a plentiful well of inspiration for your business and you.
http://changethis.com/25.01.PolkasPyro.PolkasPyro
http://changethis.com/pdf/25.01.PolkasPyro.pdf.01.PolkasPyro.pdf

2. THE ABCs of a KALEIDOSCOPE CAREER
by Lisa A Maineiro, PhD and Sherry E. Sullivan, PhD
The twentieth-century linear career model, of rising to the top of a corporation and being a big, fat, ethically unscrupulous power-monger is dead. Mainiero and Sullivan show you how to create a stunning new Kaleidoscope Career.
http://www.changethis.com/25.02.ABCKal.02.ABCKal
http://www.changethis.com/pdf/25.02.ABCKal.pdf/25.02.ABCKal.pdf

3. BEYOND SUSTAINABILITY: Why an All-Consuming Campaign to Reduce Unsustainability Fails
by John Ehrenfeld
John Ehrenfeld proposes a radically different conversation about sustainability, one that moves away from mere problem solving, demands a new definition and envisions infinite possibility.
http://www.changethis.com/25.03.BeyondSustain.03.BeyondSustain
http://www.changethis.com/pdf/25.03.BeyondSustain.pdf /25.03.BeyondSustain.pdf

4. GETTING OUT OF EMBED: The Role of Social Context in Decision Making
by Michael J. Mauboussin
Decision making is an inherently social exercise. Here, Michael Mauboussin details three shocking psychological experiments that reveal just how another's action or opinion can profoundly change your own.
http://www.changethis.com/25.04.GettingOut.04.GettingOut
http://www.changethis.com/pdf/25.04.GettingOut.pdf/25.04.GettingOut.pdf

5. WEB 2.0: Strategies and Lessons for Business Leaders
by Troy Angrignon with Nick Kellet, Gary Ralston, Ean Jackson, Matthew Fessenden
This inclusive manifesto will introduce you to the principles and concepts of Web 2.0, so you can prepare your organization for this technological sea change.
http://www.changethis.com/25.05.Web2.0.05.Web2.0
http://www.changethis.com/pdf/25.05.Web2.0.pdf/25.05.Web2.0.pdf

6. NEVER THE SAME: How to Create Transformational Experiences
By Charles Halton
What does it take to change the world? To change people? To make a difference, every day? Charles Halton presents 18 characteristics to help you create transformational experiences.
http://www.changethis.com/25.06.NevertheSame.06.NevertheSame
http://www.changethis.com/pdf/25.06.NevertheSame.pdf /25.06.NevertheSame.pdf

7. BEGINNER'S GUIDE to BUSINESS BLOGGING: Re-release
by Debbie Weil
The what, why, and how of business blogging, by business blog expert, Debbie Weil. Originally a limited release, this critical resource guide is available to you once again.
http://www.changethis.com/25.07.BusinessBlogging.07.BusinessBlogging
http://www.changethis.com/pdf/25.07.BusinessBlogging/25.07.BusinessBlogging

Additional comments on ChangeThis - I really like the website and what it stands for and the forum it provides for authors. There are several "known" authors (such as Seth Godin mentioned in this entry) that provide excerpts from their books via ChangeThis. It's a cool site with many really good manifestos - you need to check it out.

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Can Buzz/Word of Mouth be artificially created?

I've got a question, can Buzz/Word of Mouth be artificially created (or forced)? I noticed the other day, during my daily internet surfing, there is whole business around world of mouth marketing (WOMM) and they recently had a convention, because of course, there is actually a Word of Mouth Marketing Association (WOMMA).

Once I saw this, I had to start doing additional research - and my goodness - there's a whole world out there trying to create BUZZ. To my surprise (not), big companies have been trying to create buzz, and in some cases in very unethical ways. But this conference was trying to figure out things like "ethics" (kinda an oxymoron for marketing), WOMM Campaign ROI and sessions on "how to", integrating into full media plan, etc.

There are even several companies that specialize in WOMM and BUZZ - one being BzzAgent - they're interesting because they have over 150K "buzz agents" out in the world, taking free samples of a product (called a gift) and trying to create a "buzz" around it. Interesting concept and probably a lot more cost effective than running ads in the mass media. Also, seeding the market with product is nothing new - in fact, all the "gift baskets" and SWAG actors get for being a presenter is nothing more than getting a high end product in the hands of "influencers".

But can buzz really be manufactured or artificially created? I don't think real buzz can - that is actually created by unknown market influences - it can be manufactured and it can't be tracked - and there is surely no way to determine the return on investment. Companies have tried to create it - I recently found a blog, started reading, thought it was really strange, then figured out it was actually sponsored by General Motors (artificial buzz) - at the point, I quit reading.

BTW, site is called " who is benjamin stove" - don't bother going there, except to be amazed at how companies just don't get it.So, I answer my own question - buzz can not be manufactured or artificial and really be buzz.

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