But time has proven Kotler and friends right, and business development is [...]]]> 30-40 years ago or so marketing gurus such as Philip Kotler already pointed out the importance of customer centricity. However product development has mainly been driven by technology and the role of marketing was merely to “create the need” to match the company’s products.

But time has proven Kotler and friends right, and business development is headed towards customer centricity, where the customer co-creates with the company. Companies already realize that they need to look at their entire value chain as an object for innovation, if they want to survive and succeed in today’s business environment.

In my work as Executive Advisor I have seen more and more B2B companies realizing that their customer-supplier relationship is not enough anymore. In order to gain an edge in their business areas they need to strengthen their BtB relationships so it becomes a tight partnership.

The key to success is to look into the customer’s customer and even the customer’s customer’s customer, looking at the whole chain, until reaching the end-user, aka. the consumer. In the end, the consumer is the one that can make the whole business chain a success or one big failure.

Partnerships within the supply chain are nothing new. Cell phone producers have long been B2B2C minded, building up partnerships with distribution. The same trend is starting to appear within the biotech industry, albeit at a very slow pace, and should be taken into consideration by any industry.

Imagine that your company produces special components used in the production of DVDs. If the consumer stops using players and only streams films and music on-line, the whole supply chain is doomed to die. The component producer will therefore have to choose between two scenarios to survive: Find another industry that needs its components or to look into how to continue to deliver to the music production industry. Through a partnership relation the component and the DVD producers can look at the market and see how to use their unique skills to meet other needs of the same segment or to meet the needs of another segment or niche, e.g. vintage trends that give vinyl-like LPs a new come back. The strong partnership together with social listening can help both companies to find opportunities and adjust to market needs, before it is too late, and thus survive the evolving market environment.

This is where true Marketing comes into play. And I am not talking promotion, awareness and other buzz-words which some people believe is equal to marketing. No, I am talking end-2-end customer centric marketing, where the focus is on social listening as a way to gain agility and keep business healthy.

If this works well, the selling part becomes easy. If you have a well-oiled customer-centric marketing machine, selling is just a matter of getting signatures because what you are selling is exactly what the market needs at the right price at the right time. You are not in the business of convincing people that your product is needed – you are in a business where people need your product because your product was created to meet their needs, their demand.

With Social Listening marketing goes from creating the needs to understanding and meeting the needs and desires of consumers.

There is nothing new in what I’m saying, still all too many companies are focused only on what is right in front of them: the next sale. Then it becomes the old game of trying to convince people they need your product and that makes for a difficult sell.

When reviewing your company’s strategy look into how to change your customer-supplier relationship into a true partnership targeting your customer’s customer. Look at yourself as B2B2C or even B2B2B2B2C, depending on where you are in the value chain. Ensure you have the end-user on the loop, and that you are listening to them. It will give you a much stronger and lasting relationship with your customers and make your competitors less relevant.

If you want inspiration regarding partnerships and customer centricity, I recommend a very good reading: Prahalad, C.K. & M.S. Krishnan (2008) The new age of innovation: Driving co-created value through global networks. McGrawHill

There is great focus on the social media landscape, and there are several marketers trying to understand the true value of social influence and which RODMI (Return of Digital Marketing Investment) could be expected from social media efforts[1].

Among many attempts, Klout, an online service was developed to try to measures the online [...]]]>

Measuring online influence

There is great focus on the social media landscape, and there are several marketers trying to understand the true value of social influence and which RODMI (Return of Digital Marketing Investment) could be expected from social media efforts[1].

Among many attempts, Klout, an online service was developed to try to measures the online influence of individuals, based on their ability to drive action.

But Klout has had much criticism:

Several objections to Klout’s methodology have been raised regarding both the process by which scores are generated, and the overall societal effect. Critics have pointed out that Klout scores are not representative of the influence a person really has, highlighted by the fact that President Obama has a lower influence score than a number of. Additionally, some social critics argue that the Klout score devalues authentic online communication and promotes social ranking and stratification by trying to quantify human interaction. The site has also been criticized for violating the privacy of minors, and for exploiting users for their own profit[2].

However Klout provides a unique insight on the online influence (Obama probably don’t have much time to spend on that?). Every time a person creates content or engages through social media and in blogs, they exert influence on others. The Klout Score uses data from social networks and other social sites, such as Flickr, Blogger, WordPress, etc. in order to measure:

• True Reach: How many people a person influences
• Amplification: How much a person influence them
• Network Impact: The influence of the person’s network

Through Klout companies can reach influencers on their Target Group, and offer them “perks”.  “Perks” are usually exclusive products or experiences influencers can earn based on their influence field. It is up to them, if they feel like talking about it or not, and it is also up to them (and the product performance) if their review is positive or negative. The influencers’ identities are kept anonymous to Klout’s customers unless they decide to share publicly about the perk or register on the advertiser’s website.

Klout is still a quite new service and I haven’t found stats that show whether Klout has success in campaigns targeting online influencers, but we might want to keep an eye on it!

To watch it you have to have Google Chrome installed: http://www.thewildernessdowntown.com/

It’s a relatively new technology, still being tested. It comprises amazing possibilities for on line activities. I do believe that the first campaigns using this new technology will be able [...]]]> I came across this great project developed together with Google containing this amazing interactive music  video.

To watch it you have to have Google Chrome installed: http://www.thewildernessdowntown.com/

It’s a relatively new technology, still being tested. It comprises amazing possibilities for on line activities. I do believe that the first campaigns using this new technology will be able (if well done) to generate amazing Viral effect.

I made the template and I adapt it according [...]]]> On my blog post “Boiling the plate”, I offer a copy of the template I made for ensuring that a campaign is coherent, no matter what market or media used. I’ve got many mails asking for a copy, therefore I’ve decided to make it available to all.

I made the template and I adapt it according to the circumstances: For instance a campaign may have the same Target Group (TG) in 3 markets, but appeal to another segment in a third one. Or the campaign targets a specific segment through social media, and another one through printed media.

In my experience however, the document has proven to be a great help to ensure that the core message/ Value Proposition remains the same, even though in some cases you may want to present different UBP (Unique Buying Propositions) to different Target Groups. From time to time I have also added information regarding Visual Communication, such as do’s and don’ts when choosing images for collateral and adds or even recommending specific images.

I’ve experienced that it is psychologically important for the team that the document is kept in only one page, otherwise it stops being perceived as a tool and is perceived as “bureaucracy that only takes our time”.

____________________________

PLEASE LEAVE A MESSAGE bellow if you have downloaded the document, and if you find it useful. I would love to have some feedback so I can keep improving it!

Word 97-2003: Template Boilerplate (.doc)

Word 2007: Template Boilerplate (.docx)

BUT…

We live in a time where individuals are [...]]]> Some companies aim to improve their costumer service by using boilerplates. They believe that it would help them to a better customer service, by speeding up processes. And in theory they could be right. It is considered good customer service to give prompt responses to inquiries and complaints.

BUT…

We live in a time where individuals are used to be treated as individuals. You can adapt you search engine, you can adapt your smart phone, and many companies are adapting their services so their customers get tailored solutions to their needs.

So how can you speed up processes and STILL give a “tailored” answer to the customer? It’s not rocket science:

1. Remember ALWAYS that the costs of acquiring a new customer is 6-7 times higher than retaining (and taking good care) existing ones
2. Ensure customer service employees that are able to understand what the customer’s inquiry is all about (it is not as obvious as it sounds, many companies fail here…)
3. Use boilerplates to speed up INTERNAL PROCESSES, but ADAPT them to each inquiry, so the customer feels that the answer is directed to them ( and not coming from a dumb machine)

You can read more about boilerplates here

The eruption of the Icelandic volcano Eyjafjallajokull in April 2010 has shaken Europe, closing all airports in Northern Europe and causing huge financial losses in the travel industry. On diverse social media you could read of people stranded around the world – and the terrible service they got from their airlines, travel organizers, etc.: [...]]]>

guardian.co.uk

The eruption of the Icelandic volcano Eyjafjallajokull in April 2010 has shaken Europe, closing all airports in Northern Europe and causing huge financial losses in the travel industry. On diverse social media you could read of people stranded around the world – and the terrible service they got from their airlines, travel organizers, etc.: People that went off for work related travel and people forced to prolong or cancel their vacations.

But is Force Majeure really only a bad thing for business? You can either get in despair and start worrying about your losses or look for opportunities within the challenges your company is facing.

Putting aside all the terrible factors related to a Force Majeure situation, it is an excellent opportunity to brand yourself and to improve your competitive situation.

In Force Majeure those who are able to keep the head cold and solve their customers’ problems win.
It sounds simple, but it’s all about building lasting relationship and strengthening loyalty. If you are there for your customers in the bad times they will keep loyal to you in the good times as well. Not rocket science, however numerous corporations failed to service their customers.

If your company is able to help out when people need you the most, they will trust you their money as loyal customers too, they will develop the so desired “deeply felt affection” needed for a successful branding. They would not only turn into loyal customers, but they will tell everybody how well your company handled the situation – you suddenly have an army of loyal ambassadors promoting you for “free”.

In other words… in hard times keep your head cold and help out – Company karma, if you like. How you handle the bad times will come back tenfold – YOU decide if it comes back to bite you or if it comes back to improve your business… Your turn!

In short, someone finds your site/ joint, starts using it, recommend to their friends, but after a while they feel there is no more value to be harvested at they go looking for somewhere else. It is [...]]]> I just read this very cool blog post on consumer behavior, the “Levy flight” describing loyal users/ consumers behavior.

In short, someone finds your site/ joint, starts using it, recommend to their friends, but after a while they feel there is no more value to be harvested at they go looking for somewhere else. It is valid both for virtual but also for analogue visits/use.

Important to be aware of. But how to avoid it?

Of course you can keep giving new features and improving, but is that enough?

Set cell phone companies. We are overwhelmed by messages regarding new features and improvements, but after a while it’s just boring. It’s expected. EVERY BODY does that. It takes to re-invent  the cell phone concept to waken consumers again, just like iPhone did.

Is it possible to keep re-inventing your product/ service not to loose the interest of users? I agree with Seth in his blog that we need to add The Levy Flight parameter when thinking branding and communication strategies.

Using social media as a buzz generator has become the thing to do in marketing. You have the perfect smooth media for Experiential Marketing and in theory it is the ultimate viral marketing media. But how come companies are having a hard time making it work? What are the pitfalls?

The [...]]]>

Viral Growth Copyright Seth Godin

Using social media as a buzz generator has become the thing to do in marketing. You have the perfect smooth media for Experiential Marketing and in theory it is the ultimate viral marketing media. But how come companies are having a hard time making it work? What are the pitfalls?

The issue is that many companies have the mistaken idea that having a large number of followers would be enough to create a good viral buzz.

On the blog post “Viral Growth trumps lots of faux followers”, Seth Godin publishes the results of his studies in this area:

“If you start with 10,000 fans and have an idea that on average nets .8 new people per generation, that means that 10,000 people will pass it on to 8000 people, and then 6400 people, etc. That’s yellow on the graph. Pretty soon, it dies out.

On the other hand, if you start with 100 people (99% less!) and the idea is twice as good (1.5 net passalong) it doesn’t take long before you overtake the other plan. (the green). That’s not even including the compounding of new people getting you people.

But wait! If your idea is just a little more viral, a 1.7 passalong, wow, huge results. Infinity, here we come. That’s the purple (of course.)”

The main problem companies are facing when using social media for viral marketing is the quality of the campaigns. Marketers are becoming blinded by the huge amount of users and forget to develop marketing campaigns that follow the golden rules of Viral Marketing:

• Idea – it needs to appeal to a specific hive (which can eventually “sneeze” the virus to other hives). Remember, when you go viral, you stop selling products and you start selling ideas.

• Sneezers – who do you want to pass on the virus for you? You need to figure out who your powerful sneezers are and engage the most effective promiscuous sneezers.

• Message – The idea needs to be innovative and appealing, so the hive’s powerful sneezers feel that it is worth to spread it to the members of the hive – and to other hives. In other words you need to have interesting content.

• Smoothness – the way you present the message must be easy to pass on. For example YouTube videos are easy to share, “invite friends to join” button, etc.

Besides that you need to understand how the different social media is used in order to get the best of them. Facebook for instance is a “talking to a friend” tool, while Linkedin and Plaxo are more business oriented.
Developing your “company idea” and planning your campaign is not a thing from the past, the communication tools evolve but the basics are still the same: Which Unique Buying Proposition you are communication to whom and through which channel. Concentrate on quality messages to “fewer” quality sneezers than poor messages to a load of people that in the end won’t make a difference for your business.

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The objective of branding is not to [...]]]> I’ve been writing about branding and I realize that it seems to me that there is a misconception of what branding really is amongst my readers. Most relate branding to “have a known name” while others think of logos and visual identity. Branding is however much more than that.

The objective of branding is not to be known. Branding is to be LOVED!

Almost everybody has heard of the Toyota Prius, but how many people would actually BUY one? (See my last blog post).

A successful branding is the most powerful marketing tool in existence. When you achieve it you have your customers doing marketing for you, selling your product/service! It sounds like a dream but this is the core of the so-called Viral Marketing.

The objective of branding has surpassed selling specific products or services, branding is selling “the idea of the company”. With a successful branding the relationship with customers evolves towards a “deeply felt affection”, which again results in:

• High customer loyalty – churn reduced to basically “null”
• Reduced marketing costs – customers get so excited about your company that they sell it to other customers

In the most extreme branding cases we have Apple. Apple has become an iCult and their customers have a near-religious relation to the iBrand and its products – which spreads like rings in the water. Apple launches are expected with great excitement, it is followed on-line, and it is followed minute by minute on Twitter! See the last launch of the iPad. There is nothing really new about it. It is an iPhone the size of a laptop. But there are already large queues of excited people waiting to buy it, people with both iPhones and laptops. We don’t really need it but we must have it (myself included)!

At the other side we have Nokia. Great reliable products with outstanding technology, fantastic intuitive usability, probably the most selling mobile phones in the world. When you have tried a Nokia it is hard to get used to another mobile phone. Unless it is an iPhone…

Nokia even has its own Smartphone which is probably as good as or even better than the iPhone. So why on earth is there no hype around Nokia’s Smartphones while people are killing eachother over the next generation iPhone? Because Nokia users are not “in love” with the Nokia idea, and iPhone users are! Nokia is a well known and respected name and the undisputed market leader when it comes to mobile phones, but unless it accomplishes selling the “idea of Nokia”, getting users to fall in love with it, it will lose terrain to the iHype.

Nokia today has 40% of the cell phone market, but how will the future look? Will Nokia be able to keep their position when faced with new strong well branded and agile competitors entering their market? Will they be able to grow market share and increase sales without the “love effect”? Will they be able to create the product stickiness or will they see an increase in churn, in disloyalty?

Branding Love-effect maths:

I know nobody will actually do the maths, but for the sake of understanding how it works, here it goes

“Love Effect”= [experience with brand – original expectation]

In very simplified terms, a powerful branding is dependent of the company’s ability to sell their business idea and the quantity of people affected by the “Love Effect”.

Of course there are a number of factors that are essential for a viral idea to work and turn it into a successful branding. Seth Godin has written “Unleashing the Idea Virus” (2000) which is great literature to understand the mechanisms of viral marketing (even though the the book desperately deserves to be updated with Social Media Trends anno 2010).

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