Flying pigs and the carbon tax.

Last night (July 29) I watched Rod Simms (ACCC chairman) interviewed on the ABC about the price reductions consumers can expect from the removal of the carbon tax. He was assuring us that consumers will receive these benefits because in effect the ACCC had the interview transcripts and documents that confirmed prices went up as a result of the tax, therefore they will go down similarly. If not, he would use the competition powers of the ACCC to ensure businesses, particularly those on whom he “had the goods” complied.

Mr Sims has generally been a pretty good advocate for the ACCC, taking on some challenging projects, but I wonder if he really believes himself when he says this stuff.

The carbon tax has just been a corrosive component of a superficial, emotional and nasty period in our political lives, devoid of facts and intelligent debate  almost anywhere. However, to say prices will just drop as a result of the removal is, even by our political masters twisted standards, like asking us to believe in Santa Claus.

Politicians have systematically and capriciously distorted the truth about the state of the economy, over the last 20 years. The source of budget problem we have is on the revenue side, stemming from income tax cuts delivered by the Howard government, rather than being all on the spending side, as eloquently outlined by Dr. John Edwards in his terrific essay published by the Lowy institute, “Beyond the boom” Not addressed by Dr Edwards is the institutional waste I see in Federal expenditures stemming from the cultural imperative never to be wrong, which ensures no risks are taken, and every tiny detail is quadruple checked and backstopped before it is passed up the line, at great cost to us all.

Australian politics is stuffed.

Very low public engagement by any measure, seemingly universal cynicism about the motives and actions of politicians and their cronies, absolute lack of intelligent debate in the House of Representatives, and mayhem in the senate. Little has changed since this December 2009 rant, but I remain an optimist.

Australians have shown a remarkable ability to absorb change, and to enable the evolution of a society unimaginable to those who authored the constitution 114 years ago, so perhaps this is all just a component of the recipe for more change.

I hope so, but it does seem that this lot have polished the political game to within an inch of its life. In a debate, you can usually count on the truth being somewhere between the starting points of the adversaries, but in our current political climate, the truth, and any facts seem to be somewhere else entirely, utterly disassociated from the discourse.

Wouldn’t it be nice to see politicians held to the same standards they impose on the rest of us in relating to misleading statements, fraudulent conduct, false advertising, and the rest?.

Whoops, stop, there is a pink, flying pig going past.

For those few who got this far, thanks, but you must have too much time on your hands if you are to indulge my rant, but thanks anyway.

Back to work, to seeking ways to assist SME’s navigate the shoals of reality, and I will not be advising them to just drop their prices by 10% of the cost of their energy, that would see most of them broke.

 

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7 essential sales tips for SME’s

customer-centric

Most of us recognise that the best sales lead you have is a satisfied existing customer, so why do SME’s so often fail to capitalise on them?.

It seems to me that there are a number of reasons, usually they boil down to not allocating the time, not thinking about it, or thinking they need some fancy CRM system beyond their means. All excuses that should not be allowed.

There are a few simple things every business should do, they should be baked into your sales and customer service processes, however simple or complicated they may be.

  1.  Make sure the sale you have just made at least meets the standards promised, much better when they exceed. Many SME’s seem to think the sales process stops at delivering the order, perhaps receiving payment, but that is just the start.
  2. Make sure you are visible, and available during the delivery/installation process. This ensures that molehills do not morph into mountains.
  3. Take ownership of any problems that occur, not only are the problems things that have to be solved, taking ownership of them is a powerful tool that communicates commitment to the customer, and they will not forget.
  4. Remember the two most powerful words in sales, “Thank you”. Just saying them makes you feel good, and certainly it makes the buyer happy to hear them, creates an empathy, and opportunity to strengthen the relationship.
  5. Be more than a salesman, be a resource for the problems and opportunities that your customer faces. Send them snippets of information that they may find interesting, opportunities and ideas they may value. Not only does that keep you top of mind, it builds on the relationship, you stop being a salesman and become a contributor to their success.
  6. A final suggestion. In this day of electronic communication, email, content marketing, and all the rest, one of the oldest forms of communication works better than it ever has, just because it is different, and demonstrates you care. A snail mail thank you, personally written, stuck in an envelope, and posted will be read every time, and is guaranteed to generate a warm feeling in the receiver out of all proportion to the effort that goes into it.

Doing these things builds  trust, and trust is the foundation of sales, we all know that, so why not just do it as a part of the process.

Oh, I nearly forgot the seventh!

When you have done all the above, and have a relationship with satisfied customers, ask them for leads, introductions and recommendations. Put yourself in this position. Someone you know, who knows a bit about you and your business rings and tells you of one of their trusted suppliers will make contact, and that they think you should talk to them.

Do you take the call when it comes? of course you do.

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6 challenges (and 3 rules) of content  creation

hurdles

The single biggest stumbling block I see to successful digital marketing is not the technology, or the money, desire, or need, it is simply the unwillingness or inability to create relevant, engaging content of value that suits the context in which it is seen.

Usually it reflects a lack of a solid understanding of why they are in the business, other than to pay the bills. As Simon Sinek would say, the “Why” of the business.

Interestingly, the same stumbling block exists with bigger enterprises, they may have websites stuffed with words and pictures, but often that is all they are: words and pictures without value.

The same reasons exist for the failure in both categories.

    • Lack of marketing leadership. Where marketing is seen as an expense, and customers are all  those out there from whom we need to extract money. In these cases, creating content is always a barrier, and where it exists, it is usually a steaming pile of crap. Irrelevant, hard to navigate, bland, talking about themselves, yada, yada. Almost always the content improves when the customer is put as the focus of the content generation activity, answering the question “how can we better inform our market”  When everybody in a business recognises that they have a marketing responsibility, you get the environment where content can be improved, and this is a leadership function, to drive the culture.
    • Content is not recognised as an asset to be leveraged. Knowledge is the new currency of success, in almost every business. Those who know more, and can leverage that knowledge, find success.  Knowledge management  is therefore crucial and where does it reside? Between the ears of employees, stakeholders, suppliers, and often customers.  When that simple fact is recognised, steps can be taken to extract the knowledge, and organise it in some way to become information of value to customers. Intellectual Capital, is knowledge that can be used, and unlike physical capital, the more it is used, the better it gets.
    • No process to record and organise ideas. Content is everybody’s responsibility, but there needs to be processes in place that make it easy, and encourage the contribution of ideas and information that can be massaged into content of value. The best i have seen are a bit like the traditional sales funnel, everything that comes in , and coming in is everybody’s job, is recorded, then the ideas and information progressively filtered and organised  in a process that creates value for recipients  at the end. You really need an idea bank into which everyone makes deposits, and deposits are rewarded, and used to create valuable content.
    • No focus on content. The old adage, what gets measured gets done, is true, if it is important, and is treated as such, it will get done. One business I work with is led by a lady who sees content as important, so she devotes a part of her considerable energy to creating it, and by that simple example has tuned the place into a content generation machine over a relatively short period, and they are getting the sales to prove it works.
    • Content is marketing’s job. NO. It is everybody’s  job in an enterprise to assist the customer.
    • You think you know it all, and why would you tell your competitors?. When this syndrome becomes obvious it is time to leave. Most commonly I see it in other wise sophisticated technical businesses, where the history tells them that keeping information to themselves, and dolling it out to customers like a drunk offering a swig at his bottle when they ask  nicely is the way to gain and keep customers.  Rubbish!
    • Content for contents sake. Putting up any old stuff on digital platforms is counter productive. Our digital world has given all the power to the customer, if you post rubbish, it will be seen as a reflection of the business, and who would want to do business with you?

There has been a lot written by all sorts of people on the subject of “content” and there is a lot more coming. However, there are a few simple rules that should be followed:

  1. Make sure whatever content you put out there is a reflection of the business, its priorities, strategies, and value proposition.
  2. Know who your primary customer group is, and what they are looking for in a supplier in your space
  3. Always look at your content with the eyes of your customer, and in the context of the competitive landscape in which you are competing for your customers attention, engagement, and ultimately, money. If your digital face is not up to scratch, why should customers trust that your products and services are any better?

I would be very happy to talk more about all this over a coffee.

 

 

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Sales funnel revisited as a purchase funnel

 

The “sales funnel” is a pretty familiar diagram, it has been around for a long time, simply because it makes sense, at least it did to sales people. To their customer prospects, there is a level of antipathy to the notion of being just a part of some “funnel”

It is time for an alternative view, one taken from the perspective of the consumer who now has all the knowledge necessary to make their own informed decisions, and they are exercising that power aggressively.

The world has changed, so too should our representations of the manner in which our marketing activities are managed, and the nature of customers and potential customers reaction to our efforts to meet their needs.

Seems to me that we would be better off thinking about the process in two funnels, one that represents  our e-marketing activities,  the other the way in which those messages are received.

The first is the marketing funnel, which has replaced the sales funnel, an obsolete metaphor in a digital world.

Below is my way of illustrating the new Customer purchase process.

purchase decision

  1. Need awareness. This can be either explicit, one that emerges when the consumer recognises that a purchase is necessary, such as when your printer dies, you need a new one, today! The other type of need is implicit, which is generally uncovered by a sales process, rather than by the consumer in isolation.
  2. Information search. Google has revolutionised this part of the process, by taking the power of information from the seller where it has been for all of human history, and giving it to the buyer. It is this point at which the marketing process now kicks in.
  3. Value comparison. The value equation is different for every person, in every situation, but the components are unchanged. Features, availability, warranty, design, capacity, and many others all feature in varying degrees, the means by which we communicate the bundle that makes up the value, so is common to every situation, is price.
  4. Purchase decision. “Yes, I will buy” thinks the consumer
  5. Short list. Which options meet the need, operational requirement, and value outcome needed, from which a finance decision can be made
  6. Transaction. The transaction can take many forms, from a simple exchange of cash for product, to all sorts of arrangements and trade-offs made between sellers, buyers and various middlemen

Whilst the whole process is usually depicted as an ordered, sequential one, in which the various marketing automation software options can provide order and  flow, in reality is is usually a chaotic, messy, and iterative process.

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Heston Vs Jamie, a retail bunfight.

 

Heston Vs Jamie

It is fascinating to watch the evolution of the marketing of the two retail gorillas, Coles and Woolworths.

It is clear what they are doing, setting out to engage consumers with the freshness, range and provenance of their produce, and selling consumers  all the packaged goods they need on the way through the stores. Their strategies are working, but more importantly, they highlight the depth of the opportunity for those few independent retailers left alive, and points to the way the more fragmented food service, ingredient, and emerging home delivery and farmers markets should be marketing themselves.

Coles and Woolies remain mass retailers, vulnerable on the edges.

A few years ago Woolies were undisputed heavweight champ, Coles the belted contender with no hope, but how things can change with a new trainer. Coles has been rejuvenated, and whilst their financial results have been hugely improved, they have a way to go to catch Woolies, but in the marketing stakes, they have taken the lead.

The sponsorship of “Masterchef” was a masterstroke, and they have followed up and leveraged the success extraordinarily well, with Woolies just starting to respond by buying Jamie Oliver to shape up to Heston, Curtis, and Status Quo (I was young in the 70’s) and a massive and very well co-ordinated marketing budget. Bit of an uneven contest.

From a consumers perspective, increasingly their choices are limited to brands the retailers control. Wether they be Coles new “Heston Blumenthal” brand, Woolies “Jamie Oliver” brand, or one of the various other housebrand versions at differing price-points, and pack configurations, they are all housebrands.

Suppliers of packaged proprietary brands have been progressively squeezed out, and those left are mostly sourced via global supply chains rather than manufacturing domestically,  where almost nobody is left standing.

Change always starts at the fringes, as we have seen time and again over our history. Change is happening now in the food value chain, but at the fringes. Organics, local produce, micro suppliers of almost personalised products, restaurants differentiating on the basis of seasons and local supply, “pick your own” farmers markets, food tourism, various home delivery services, all happening outside the supermarket, some pretty basic  marketing communicating the differentiated offer.

Jamie and Heston can take their money to beat each other up in the ad breaks of the nightly news. The increasing number of us who really care about what we eat, will go to the local blokes who genuinely care about what they deliver to us, and buy from them.

 

 

 

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The value curve

value

As a young marketing graduate in the 70’s I was given a scholarship to attend  an intensive marketing management program in Boston, run by Harvard professor Jim Hagler.

He changed my life.

One of the many things he rumbled to me (he spoke, but it came out as a rumble) was:

“Son, find out how they intend to stay in front of the curve”

Sage advice.

Marketing is all about staying in front of the curve, the challenge most businesses have is defining the curve.

Most businesses have a choice of curves,  but you cannot be all things to all people, so choices are made.

The price curve

The cost curve

The innovation curve

The Value curve.

It is just this last one that really matters to customers worth keeping. They want value, however they choose to define it.

Whatever else you do, for your chosen group, niche, cohort, or however you choose to define your  ideal target customers, stay in front of the value curve.

Look around you, there is no successful enterprise that is behind the curve.

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Digital body language

 

algorithms

Prospecting, lead qualification and nurturing, prospect management and the transaction itself have all changed forever.

The salesman with a bag has been relegated, at best,  to the transaction end of the prospect to transaction continuum. In the process, we have lost some of the humanity, some of the eyeball closeness that good sales people brought to the table, the insights and instinct gathered from the context and body language that underpinned all the conversations they had.

All gone, but most would agree that body language holds a significant place in the sales process, so how  have we replaced it?

Is there such a thing as “Digital body language”?

Can we score metaphors of the physical reaction from digital interactions?

Logically the answer has to be ‘Yes”, as we now have access to a huge body of data that reflects the sum of behaviour of all who come into contact with whatever platform or tool we have working for us. However, access to data is a very long way from leveraging the insights that are hidden within the data, a fairly advanced level of analytic capability along with a tool with some grunt is required, although simpler tools with manual intervention can be made to work.

Consider the process:

    •  Somebody reads a blog post and “likes” it, better yet, shares it,
    • They subscribe to the blog to make receiving it automatic,
    • They respond to an offer, webinar, e-book download, surveys, or combination of these, perhaps several times, and all the while your system is recording and responding to their actions, delivering the next step to them.
    • The system is constantly being improved as more data points are collected, and A/B testing provides finer grained insights

The data collected can be sliced and diced, weighted and resliced in all sorts of ways that can provide an almost visceral insight into the behaviour of groups and subgroups to various content stimuli at differing levels of engagement. The relative effectiveness of differing pieces of content at each point in the sales continuum can be calculated with good levels of accuracy.

Surely this is the equivalent of the sum of the body language cues of those in the database, if not necessarily that of any individual within it, and so is a very effective guide when well used. Data will never replace the one on one human responses, but the value of the digital picture built up is a source of enormous value, immeasurably widening the net of prospects beyond what can be achieved with boots on the ground.

 

 

 

 

 

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Contrarian strategy

compass

The complexity of the world these days demands an approach to strategy that is counter intuitive, perhaps even a contrarian approach to the accepted best practice.

For decades managers have sweated and planned, and set out to execute, just to see the planning go to crap at the first hurdle, as things rarely happen as planned.

In the “MBA model”, you push on regardless, because it is planned, the resources gathered, prioritised and allocated, a “push” model of strategy development and deployment.

If the opposite were to happen with strategy, as it does with agile software development, how would it differ?

A  continuous process of combining strategic hypothesis generation and A/B  testing, going  hand in hand with incremental resource allocation from a diverse pool of  experts, rather than a from pool of available bodies? Seems to be a sensible alternative, so why don’t we do it?

Generally we people like certainty, clarity, and a minimum of ambiguity, and that comes with a detailed plan. Problem is, plans are only as good as our ability to read the future,   which is generally pretty ordinary. The better way is to know the end point, and if we can manage the ambiguity and uncertainty, make our own away there based on the obstacles we encounter.

In this uncertain world, we need a compass, not a roadmap.

Maps tell us to move forward a defined distance, take a left, followed by a right, and so on, whereas a compass tells us the direction, not necessarily the detail of how to navigate the immediate terrain.
This counter intuitive approach to strategy is often what SME’s do, without really recognising it as such. They react to what is in front of them, rather than what they may have planned to do, often the plans do not even exist in a formal sense. Their challenge is to apply some focus on the longer term, not just the burning bridge they are standing on.

 

 

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Content marketing story

 

kmjantz.wordpress.com

kmjantz.wordpress.com

“Content marketing ” is no more than a new buzzword to try and build interest in the stuff we marketers have always been doing, telling stories, and creating a context in which the stories we tell will be meaningful, and be a catalyst to an action we want.

It is also fundamentally important that the bag of stuff called content is understood, well organised and communicated.

Cave paintings were perhaps the first, they told stories about the lives of those living in those days, passing on messages to those that followed, next week, month, millennium.

I have argued previously that Martins Luthers church door was just facebook in beta form,  but perhaps the first recognised piece of content marketing as we now know it emerged in 1895 with the first publication of the John Deere farm machinery magazine “The Furrow“, still going strong.

The Michelin brothers first published the “Guide Michelin”  a motoring guide in 1900, with the objective of telling the few motorists then around where they could find petrol, accommodation, meals and repairs in France.

In what may have been the first modern cookbook, Frank Woodward saved his $350 investment in the rights to “Jello” at  the last moment by publishing a recipe book, the first step in creating a dessert tradition that still exists in the US, and perhaps taking the first step towards our obsession with cookbooks, or “Cooking Content Books”.

Burns & McDonnell engineering first published their “Benchmark” magazine in 1913, and Procter & gamble did more than bring us our daily cleansing products, they gave the name “soap opera” to the daily dose of  what we still call “soaps” on TV, by sponsoring radio programs in the ’30’s.

Lego has been the king, with their magazine, and now the Lego movie, how great is that, to have Hollywood make a movie about your product? Wonder where the funding came from?

The examples of so called “Content Marketing” exploded after 2000, any scan of the web will give hundreds of thousands of examples, opinions, and infographics. Curata’s list of content marketing e-books is a great assembly of information, and more evidence, if any more is needed of the interest in the area.

Point is, “Content” is not new, neither is the notion of engaging by communicating stories offering advice, and managing context, it is just that we now have some pretty potent additions to the toolbox.

 

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Conferences are for marketing.

 

Water will be the frontier of conflict in the C21

Water will become the frontier of conflict and innovation in the C21

Few things are more important than how we feed ourselves, and get access to clean water. Without these, our species will not survive,  our numbers are increasing rapidly, as the resources of the planet, particularly available water, are being consumed faster than replacement rates.

According to the UN, 6-8 million people die every year due to water related disease or disaster, 2.5 billion do not have access to sanitation, and nearly a billion do not have clean drinking water.  I suspect water will be the root cause of much of the international power plays over the next 50 years.

During this last week, there was an international Peri Urban conference in Sydney. Much earnest discussion amongst the disappointingly low number of attendees went on, but there were some lessons that need to be learned beyond the gravity of the emerging crisis on water management:

    • For the message to get out beyond those in the room, the facts need to be told as stories to which the public can relate, and engage, creating pressure on decision makers to allocate some priority to the questions raised. Dry academic papers read by Professors with limited story-telling skills, accompanied  by PowerPoint slides as comprehensible as the Rosetta stone will not cut the mustard. The presentations I saw reminded of Sir Ken Robinsons classic line that “the only purpose of academic bodies is to get their heads to meetings”.
    • Marketing is not just useful, but required. Twitter is now routinely used by conference organisers to get their message out, and there was a handle for the conference, #periurban14, which attracted 1 tweet. Enough said.
    • For peri urban agriculture to be a reality, it is required to be economically sustainable, as well as ecologically sustainable. Discussion of the barriers and challenges  to economic sustainability would appear to me to be of vial interest to the topic, but beyond some consideration of the evolving organic market, little was said, the vital role of consumer demand largely ignored.

I presented at a workshop breakout session. A short presentation that set out to make the point that whatever happens in the growing part of the agricultural process, you still need a customer to make the whole thing commercially sustainable. There were so few people there that clearly the issue of commercial sustainability being a vital foundation of change has not yet resonated.

Conferences are a vital part of the process of creating and disseminating Intellectual capital. The presentations are just a small part of the mix, the relationships built with other conference attendees, and the opportunity to leverage he messages to wider audiences via social media are the real reasons conferences are worth the time and expense.

 

 

 

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3 Marketing observations from the club-house

 

Clubhouse

Last weekend the local tennis club of which I am a member had an open day. We marketed the day pretty heavily to the local community over the course of a couple of weeks, and got a great turnout. In order to ensure we could follow up, we collected the  email addresses of visitors by offering entry to a raffle for a new racquet.

I have just completed transcribing the emails into our system, and considering how we may have done it better. A number of factors were absolutely obvious, and whilst they should not have been a surprise, the extent of the change evident in our collective behaviour was indeed a surprise.

  1. We asked for phone numbers, but did  not specify mobile or landline. Every single number we got, which was every visitor except one, gave us a mobile number, not one landline.
  2. With one exception, every person, irrespective of age, gave us an email address.
  3. A quick look at the analytics on the website over the past few weeks shows that just over 76% of the hits have come from mobile devices. Whilst the numbers involved are  not huge, the dominance of mobile surprised me.

I read, and talk about the switch to mobile every day, but it has been to date a theoretical fact, something I was aware of, understood, but had not brushed against directly to the extend that the general numbers indicated. Now however, the understanding of the numbers has a very personal dimension, and I have absorbed the lesson rather than just understood it.

Unusually for me I have been at home for the last few weeks, and I have been answering the home phone while my wife is away. In the two weeks, there have been quite a number of calls, every single one a telemarketer.

Why am I paying line rental? It seems it is to give telemarketers access. I think I will cancel the landline, the boss will never notice when she gets home, unless she really likes the sales calls.

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The 7 common features of successful websites

in out

 

Success does not happen by accident, it comes from hard work, knowledge, insight and experimentation. In the case of websites there are almost a billion websites live (866k) in July 2014, the billion mark will probably be reached by the 4nd of 2014. This is from the first site, being put up by Tim Berners-Lee in August 1991.

This is a pretty useful universe from which to draw lessons, and we have learnt a lot about what works and what does not.

What works:

  1. Content that is Interesting and engaging and targeted for a specific group of people will attract their attention, rather than content that is more general in nature .
  2. Attractive, eye-catching design is essential. Humans are visual animals, design is fundamental to attracting and keeping attention. The more research we do in this area, the more we understand the basic rules, and they are rules that have applied from the dawn of human development. Disregard them at your peril.
  3. Simplicity. Also essential is a design that enables visitors to find the stuff they are looking for simply and quickly.
  4.  Speed. Low loading speed is penalised by search engines, but more importantly, is penalised by casual viewers, who simply move on.
  5. SEO.   At least basic search engine optimisation is both easy and essential, if you have a great site that cannot be found, nobody wins.
  6. Competitive. With almost a billion sites, the web is a competitive environment, and you need to be distinctive amongst your competitors. If you are selling machine tools, you need to  look like you are the expert in machine tools, not real estate or life insurance, and the relative merits of your site to those of your competitors are important.
  7. Be there to help, rather than overtly flogging something. Your website is the front door to your business, make sure it invites people in, rather acting like a tout in a sideshow, and alienating almost all who pass.

What does not work, in a word, lots. Complicated, messy, poorly targeted, overtly sales driven sites that lack humanity. Just trawl through the sites of most of our federal governments agencies and departments to see some great examples of what not to do, while trying to be all things to all people. The easiest way to construct a list of “no no’s”  is to do the opposite of the list above.

If you follow these simple guides, at least you will be on the right road.

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Future of Urban Agriculture

 

How we deliver good quality food and water to an urbanised and growing population around the world is the challenge of the 21st century.

We have gone from a largely subsistence existence to a highly urbanised one in 200 years, a “blink” in the context of human evolution, and some would argue that in the process we have lost some of the “connection” to the food we eat, to our collective detriment.

The last few years have seen the beginnings of a movement back to food basics, and a greater interest in the sourcing, preparation and presentation of food. The “Masterchef effect” if you like.

Some consumers are starting to look for the source and provenance of the food they eat, as a way to ensure they are getting both quality and value. It is far from mass market, but not so far from the mainstream.

However, all change starts at the fringes, as a challenge to orthodoxy, and can rapidly become mainstream as the merits of the argument become known. Technology is changing our lives on a daily basis, but to date the manner in which we grow and distribute our fresh produce has been relatively untouched, but the change is now coming at us at warp speed with urban hydroponics and retail being combined in fascinating ways, like The Farmery, and almost all driven by innovative SME’s

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Content marketing, and marketing content

 

Content marketing 2

Have you created the best content you can, original, insightful, and engaging, that demonstrates your domain knowledge, but it goes nowhere?

No impact, no interest, even your friends do not read it.

It is a bit like throwing a party and having nobody turn up.

Maybe you forgot to send invitations, after all, psychics are pretty rare, so people need to know the party is on.

Creating the content is just the same, the creation is only a part of the process, you also need to market the content, and having done that successfully, then the content can be judged by the response you get.

So, following are four simple, common sense marketing rules to apply to your precious content.

    1. Have a strategy that promises to deliver the objectives, creating the content is not enough.
    2. Use data, not just your gut. The data is freely available, and enormously valuable, use it.
    3. Learn by doing. The oldest and still the best game in town is to experiment and learn.
    4. Remember always that creating the content just gets you a ticket to the game, not the automatic right to play, that comes from elsewhere.
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Why B2B websites do not work

wheelbarrow

Have you ever been in a conversation where despite the language being clear, the subject of the conversation is absolutely muddled?

I have, many times, and it occurs particularly where there is an individual in the conversation who has a barrow to push, and irrespective of anything else said, responds from the barrow.

Now it is happening every day with websites I see.

The site is talking about themselves, their particular barrow, when those looking for something are not interested in their “news” they are looking for stuff that is in their interests.

B2B sites seem to make some pretty consistent mistakes, talking about:

    1. The size and geographic reach of their business
    2. What they have done to shape markets
    3. Their latest “innovation” which more often than not is just a paint job
    4. Their great record of corporate social responsibility
    5. The sustainability steps they have taken.

There are many others, but you get the picture.

By contrast, B2B customers seeking goods and services via the web are looking for:

    1. Information on how the product or service offered will perform
    2. Delivery and after sales service arrangements
    3. Evidence of the expertise claimed
    4. Technical information on the design and performance parameters
    5. An open, simple and transparent communication process pre and post sale

And so on.

The marketing challenge is to see your products and services from the perspective of the customers, and potential customers.

To me it seems blindingly obvious, but clearly, a large percentage of B2B web site managers have no idea, and their marketing needs some intelligent thought.

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SME Marketing capability gap

 

ag capability gap

Marketing technology is rapidly taking over from the hit and miss, ad hoc research, customer and prospect management, and  performance measurement practices that  have dominated to date. This is a particularly critical evolution for  small businesses who are generally already behind as the game started.

As time passes, this marketing capability gap, and hence ability to compete with their larger, better resourced competitors is becoming increasingly compromised.

Simple things like having a website, are still beyond many small businesses. Often they give the task of “knocking up” a website to their 15 year old kids or the summer intern, think the job done, and wonder why business does not walk in the door.

According to the ABS, 60% of Australian enterprises of less than 5 employees do not even have a website.  The penetration in Agriculture is particularly low, yet Ag is being touted as one of the saviors of the economy post mining boom!

There is clearly a disconnect between economic forecasters sitting in ivory towers, looking at survey data  and the reality out in the boonies. Many small businesses in Ag do not have a website, or any digital connectivity for all the same reasons their city brothers do not, but also have the added challenge that access to the web is crap, they can often make a cup of tea while the home page of a searched site launches.

Digital competence is learned, the more you play with it, the more curious you are, the better you get at it. This is counter intuitive to the average 55 year old farmer, who manages risk in a long term, and very organised manner.

Small businesses have wonderful opportunities to compete delivered by technology, the gap created by the economies of scale available to their larger are now increasingly obsolete due to technology, but a new form of gap has emerged, the digital capability gap, that is proving difficult for many to jump.

SME’s often just need some encouragement, a dose of curiosity, and access, then the gap can be rapidly filled.

 

 

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What matters?

 

One of the most common questions I get is how you get away from competing on price.

A couple of things are common in the situation that leads to the question:

  1. Someone else has control of the value chain. This is often the case with an FMCG product. In Australia two chains have 75% market share, the supplier, even to the MNC behemoths can only watch as they set the retail price, shelf position and category definition.
  2. The questioner has not spent the time and brainpower to consider what really matters to the customer. They have therefore failed, or chosen not to to make the hard choices that are central to building a brand.

Back to the Australian FMCG situation, as it relates to produce. Coles and Woolworths do not stock any proprietary brands at all in produce, just store branded product. The producer therefore has no control at all about what happens in store,  but they do have a choice: to build a brand in alternative channels.

In some produce categories, hard vegetables, for example, the chains have close to the FMCG share of 75%. Carrots and onions seem to be pretty commoditised, but other categories like sensitive summer fruit, mangoes, stone fruit, and berries like strawberries and blueberries, have a far larger share in the alternative channels simply because the state of the product really matters to consumers. The 17 year old casual in Coles after school does not care much about the sensitive nature of the strawberries,  but the greengrocer often does, the product matters, so they make decisions based on what matters.

Not every consumer will care enough about their strawberries, but perhaps enough will to make the development of a brand worth the effort, time, risk and cost.

When you accept that it is only price that matters to consumers, you have made a key strategic choice. That choice is that you will not care enough to find out what else may really matter to consumers sufficiently that they will make their purchase choice on a basis other than price.

Things that matter are usually beyond the physical dimensions and capabilities of a product, they are the stories that make the difference.

Why is one toaster worth more than another, they both toast bread, but perhaps one is just a tool, the other a piece of kitchen art based on the stories of the designer.

In simple terms, Focus on what really matters

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10 questions for a Customer Value Audit.

Customer Value has almost become a cliché, often trotted out to cover the lack of real marketing insight.

Effective articulation of customer value, and the business model and processes to deliver it remains  at the core of those businesses that find success. It is particularly relevant to SME’s as they must ensure their very limited resources are focussed where they can best deliver outcomes, they do not have the benefit of scale to absorb mistakes.

Following is a list of questions frequently asked in strategy sessions that seek to identify, and give form to this most elusive notion of “Value”.

  1. Why do customers come to us rather than go to the competition?
  2. What customer needs are currently unmet or under met?
  3. How have customer needs changed in the last few years?
  4. If we project forward two years and look back, how have their needs changed now?
  5. What could our competitors do for our customers that we would like to be able to do?
  6. Where are new customers coming from, and why?
  7. Are there new competitors emerging that offer value different to ours?
  8. To what degree does our concerns for customers welfare really drive our =decision making
  9. What else could we do for customers?
  10. What could we do to attract new customers?

Each of these questions can and should generate a great deal of discussion, the quality of that discussion is a measure in itself of how well you understand “Why” you do what you do, rather than just What and How you do it.

The really successful companies do not wait for  strategy session, they ask themselves these question every day, and the answers drive how they behave and interact with customers and prospects.

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Do you need a telephone?

telephone

I asked that question a week or so ago of a group of SME’s, most of whom did not have any digital presence.
None said their businesses would survive without a phone. Why is it then that they think they can survive without a website and social media presence? These tools are as integral to success as the phone, but like the phone, need to be used well, as they are just a tool.

Last week (July 19, 2014) the ABS released a report “Summary of IT use and innovation in Australian Business”

web presence by size

web presence by size

Web presence by industry

Web presence by industry

 

Businesses with 4 or less employees 35% penetration, 19 or less employees, 60% penetration, overall about 50% of enterprises have no web presence.

 

 

 

Lowest web penetration is, obviously in industries with many SME’s, agriculture, transport, and distribution.

 

 

 

 

It is a report that highlights the paucity of digital  capability amongst SME’s, which are the backbone of the Australian economy, and back up previous reports by Sensis and others pointing out the shortfall.

The building of digital capability by SME’s is not just necessary to compete, it is vital for survival.

 

Social media use

Social media use

 

The pattern is repeated in social media, but is more pronounced, most SME’s do not even use the simplest forms to market their business. 

 

 

 

I remain “gobbsmacked” that so many still seem not to have got the message,

That is where your customers are!!!

But what opportunities there are for improvement and leverage, it just takes a bit of energy and time.

 

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Another bloody meeting

 

Meetings are supposed to be a place where work gets done, accountabilities exercised options  articulated and examined, decisions made, and outcomes reported. However, often they become just a reason to have another meeting.

Whilst the public sector comes in for some pretty harsh criticism, they are not alone.

Last week I found myself in a meeting called by a prospective client so I felt it sensible to attend and contribute.

No agenda, minutes of the previous meeting were supplied as we walked into the room, no definitive objective, just another bloody meeting.

To amuse myself, I tried to calculate the cost of the thing, thousands, and found  myself thinking about the waste, and how to fix it, and only came up with the same stuff I have written about before. Serendipitously, later in the day, my inbox “plinked” with a lovely little cartoon from Hugh MacLeod that does his usual great job of nailing the topic   with a few words and lines, and links.

The infographic in one link is terrific, and the  meeting clock is wonderful, I will use it regularly from here on in when I see wasted resources being directed towards massaging someone’s ego, or “busywork” being done by having another bloody meeting.

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