The Physics of Marketing - Huygens’ Principle

You would think that if you did something like discover the rings of Saturn, discover Saturn’s largest moon - Titan - and then go on to invent and patent the first pendulum clock, that you would be a household name.  Now assume you not only did all those things, AND also collaborated with Robert Hooke, Isaac Newton, and Rene Descartes during your career.  Pretty impressive resume to say the least.

The person I am describing is 17th century Dutch Physicist Christiaan Huygens.  To say this guy was smart and influential is like saying Jimmy Hendrix was a pretty good guitar player who had a few good songs.   Huygens was a thought leader of his time, with a very impressive body of work.  One of his primary discoveries was that of Huygens’ Principle which predicts the progression of waves.

Huygens stated that “every point on a wavefront acts like a new source of wave energy, with matching frequency and phase.”  Thus when you drop a pebble in water, the wave front each of the ripples that spreads out in a circular expanding fashion represents a new set of waves.  Another example of this is observed when you hear someone in an adjacent room shouting, the sound actually enters the room you are in through the doorway.  So to you the sound, the vibration of air via soundwaves, originates at the doorway.

In Marketing terms this seem to equate nicely to the concept of word of mouth marketing.  Suppose you were to have an awful service encounter with a business, the initial wave would then be created.  If for example, this were in a restaurant where the food was bad, the service poor, and the experience was very disappointing, the initial wave might begin with those seated at your table and others within the restaurant.  If the experience were bad enough, this wave would quickly spread as you left the restaurant and told your friends “Don’t Eat At That Place!  Listen is what happened to us!”

Now all of those friends you told about your experience represent a new source of wave energy, spreading the message outward yet again. God forbid this is not an isolated incident.  In this case, as waves continue to spread and touch consumers, the results to a business are devistating.  Imagine when you told your friends about the bad experience if they responded “you are the 10th person I have heard from who had a bad experience at that restaurant.”   Now think about what happens when you get on the web and voice your complaint to the world.  Your experience is viewed by others, Google picks up on a new trend, and the wave continues onward…

Pete Blackshaw articulates this scenario brilliantly in his book, Satisfied Customers Tell 3 Friends, Angry Customers Tell 3,000.  He brilliantly describes the importance of word of mouth in a digital age, how to monitor and participate in what is being said, and ultimately why companies need to realize the fact that angry customers can make Tsunami sized waves that can literally destroy a business.

Returning to Huygens, it is imperative to realize that the transaction transcends the immediate and present set of circumstances.  It radiates outward.  No, losing one sale due to poor service might not cripple a business, but the resulting wave that this dissatisfaction generates might - especially if the event is systemic as opposed to an isolated incident.  The interconnected world in which we live makes it nearly impossible to do people wrong and live very long.

Conversely, the little extras that make a customer experience great might not immediately translate into huge profits, but over time, as the waves spread, these differences can create a ripple effect that builds deep customer loyalty and lasting success.

How would you apply Huygens’ Principle to Marketing?  Please share your thougths by leaving a comment.

The Physics of Marketing - Chaos Theory

Chaos Theory states that little things can mean a lot.  For example, the wind created from a butterfly flapping its wings in the jungle could result in a tornado forming in Southwestern Ohio.

Chaos Theory is why the weather can only be predicted for a few days out.  There are so many variables that come into play, that long term predictions become virtually impossible.  Over time variance in inputs result in patterns which can change in unexpected and unpredictable ways.

Chaos Theory was developed by Edward Lorenz, who was an American mathematician and meteorologist.  He devised the theory as a result of rounding errors as he was trying to compute weather patterns.  He found that these small changes in rounding of numbers could result in dramatically different outcomes.    Thus he concluded that minuscule changes in inputs can have enormous consequences on the ultimate outcome.

So how does this pertain to marketing?

I think that the analogy to marketing is rooted in my belief that everything a firm does is in fact marketing.  If this is true, than seemingly little things like how clean you keep your lobby, how you show appreciation to your customers, or how you handle complaints can have a huge impact on your success.  While it is not possible to predict exactly how each interaction will play itself out, it is certain that in this age of interconnection and transparency patterns will emerge.

Thus, just as Chaos Theory states that little changes can have a big impact, the same holds true in marketing.  Thinking of outsourcing your customer complaint line?  Yes it might be cheaper, but it will make a difference in the ultimate outcome.  That minor change could have a major impact.  Ask Dell about that.

We live in a time where consumers have unlimited choices.  Thus as marketing professionals, we must take great pain to make sure the the inputs that can be controlled are controlled.  We must proactively seek to improve the customer experience.  We must seek to add value relative to the price that is being paid.  We must make sure to notice the little things that most would not notice.

Some might argue that Starbucks was a victim of Chaos Theory.  Is their recent trouble due to the fact that they opened too many stores too quickly?  Was the brand just a fad?  Do $4.00 gas prices and rising unemployment come into play?  Are they hurting because they focused on things like music and credit cards instead of coffee and customers?  Did the change from the manual to automated espresso machines dilute the brand?  I have no idea which of these things actually caused their current problems.  It might be all of them, it might be a butterfly in the jungles of South America.  I would argue however that these things led to a pattern with a predictable outcome.   Taken on their own they are small, but combined they create a difficult situation that would have been difficult to envision just a short time ago.

So for marketers, control that which you can control.  Focus on delivering quality to the consumer.  Pay attention to changes in outcome.  And, pray that butterflies help you more than they harm you.

How would you apply Chaos Theory to Marketing?  The world is waiting to find out.  Share your thougths, and change the world with your comments.  You never know what outcome they might produce…

If I Was In Charge of Verizon…

If I was in charge of Verizon, the first thing I would do would be to take the large group of people, known collectively on TV as “the network,” - seen following around the “can you hear me now?” guy in the commercials - and reassign them to work in Customer Service.  In fact I would make the core focus of the company customer service. I would make going to the Verizon Store something you love to do - not loathe to do.

Note to Verizon.  I can hear you.  Great job on the network thing.  Now that we have established that fact, let me hear you be nice, thoughtful, and helpful.  Make me feel like bypassing the iPhone and AT&T (who could also benefit from this) or Sprint, or whomever, was the right choice because you actually care about your customers.

From the billing process, to telephone help desk, to the in store service and sales experience, there is huge opportunity for you to improve what you do, while setting a new industry standard for excellence.  Be the first to own this space and make service the cornerstone for your future growth.  Can you hear me now?

What would you do first if you were in charge of Verizon?

Voices Episode 4: Jimmy Vee and Travis Miller

Gravitational Marketing: It Ain’t heavy, It’s Just My Podcast.

Yesterday, May 20th, 2008, I had the opportunity to spend an hour talking to Jimmy Vee and Travis Miller - authors of the newly released book Gravitational Marketing. Jimmy and Travis found me through the Physics of Marketing posts series, and thought that it tied in well with their book. Thus, they asked if I would be interested in hosting a podcast to talk about Gravitational Marketing. I jumped at the chance, and I am glad I chose to do so. The experience was wonderful. I got to read a great new book. I learned more about smart ways to attract new customers. And, I made a new connection with a couple really smart, interesting, and all around great people.

About the book…

Gravitational Marketing is an easy read, and well worth the price. I knocked it out in under 2 hours, and must say that I picked up dozens of great ideas. The first half of the book is a discussion of Gravitational Marketing as a philosophy. They look at common misconceptions people have about marketing and attracting customers. Here are some key takeaways from the first half of the book.

• There are 3 key rings that create successful marketing. Market, Message, and Media. For marketing campaigns to be successful these elements must work together.
• The process of gravitational marketing is broken down into 4 key components - Gravitate, Captivate, Invigorate, Motivate
• To be worthy of attraction, or sensational, a business should be: interested, unique, fun, visible, credible, and spreadable
• Become an expert at something
• People buy because of a perceived high return on investment, emotional benefits, or believability, not because of chance, price, or advertising
• great marketing, effective marketing that yields results, does not have to be expensive and does not require an ad agency

So, if the first half of the book is the “What and Why” portion of the program, the second half is “How to” part. Jimmy and Travis offer 36 easy techniques to attract customers. From direct mail to radio, social networks, to networking, presentations to print, these guys cover the bases of what it takes to bring in the business. There are dozens of links to various vendors and industry experts and real world example of tips and tool that you can immediately put to use.
Please take a listen to the podcast, and let me know your thoughts. I would encourage you to check out Travis and Jimmy’s web site, and pick up a copy of Gravitational Marketing.

Here is a link to the podcast Voices Episode 4

The Physics of Marketing - Hooke’s Law

Scientist, Physicist, Mathematician and all around genius Robert Hooke lived in the mid 1600’s.  Much of his work revolved around his law of elasticity, which stated that elastic materials stretch in proportion to the force applied to them.  Some materials are more elastic than others.  Understanding this principle allowed for sailors to measure longitude, architects to design amazing structures, people to use pocket watches, and bungee jumpers to… well… to jump of bridges and survive.  In short, strain causes stress, and certain materials respond differently to stress.

At risk of sounding redundant from last week’s post, I think this again illustrates the importance of treating different customers differently.  Choose your best customers and design your products, services, and your customer experiences to capitalize on their common elastic principles.  Give your best customers more of what they want, and work on giving value up front in exchange for bringing them back again and again.  Give to get.  Give more, get more, find new ways to give more and on and on.

Bear in mind, different materials have different elastic principles.  Some are highly elastic, and others not at all.  Consumers are the same.  Find the right group, and then do something amazing for them.

What is your interpretation of Hooke’s Law as it pertains to marketing?  Please further the discussion by sharing your thoughts in the form of a comment.

The Physics of Marketing - Simple Harmonic Motion

Think of a pendulum steadily swinging from side to side and you are visualizing Simple Harmonic Motion. From children on play gound swings to highly skilled engineers, simple harmonic motion surrounds us. It involves the give and take between potential and kinetic energy. In the example of the pendulum this would be height and speed.

You could even use the principle of Simple Harmonic Motion to prove that the world rotates. If you were to place a pendulum on the North Pole on a sunny day, the shadow it created would move in a circle as the day passed - eventually returning to its origin 24 hours later. However, this motion would not be evident at the Equator. So while the principle of Simple Harmonic Motion is evident in both places, deriving meaning from it is dependent on perspective. Yes the pendulum swings back and forth in both places, but the change in perspective offered at the North Pole would yield unique meaning.

So, on to the Marketing part of the post.

Here is what I came up with. Treat different customers differently. Create simple harmonic motion with your best customers. Develop a predictable experience for them, innovate based on their specific needs, and create something so remarkable that so they want to come back time and again. Do it well, and you should even be able to add a cyclical nature to this pattern thus creating predictability - simple harmonic motion.

Why treat your best customers differently? It is as simple as this. You can’t please everyone. If you are doing something interesting than there will be many, if not most, who will dislike what you do. Try to please everyone and all you will accomplish is mediocrity. The perceived safety of “the middle of the road product or service” only sets up a business to get hit from oncoming traffic on both sides.

instead, create a unique identity. Establish a deep bond with the right customers. Listen to them. And then use your strengths to regularly develop new ways to help solve their problems and improve their lives. This ties in directly with the product life cycle. What to make, why, when, how many, and for whom all can be tied into simple harmonic motion. All of these ideas work best when done for a specific group.

So that is my take. What do you think? Leave a comment and let me know your thoughts on how to apply Simple Harmonic Motion to Marketing. I welcome your contribution and thank you for stopping by.

The Physics of Marketing - Conservation of Energy

This week’s Physics of Marketing post is about energy. It is clear when someone has energy and more clear when they lack it. Starbuck’s has made a fortune on regularly selling me cups full of energy in the form of caffeine laden black coffee.

Energy takes many forms, and is probably best thought of in terms of change or motion. Both are forms of kinetic energy. Potential energy is less intuitive, but equally important. It is the boulder at the top of the hill, which if nudged would descend with tremendous momentum, crushing anything in its path. While at rest, it is potential energy.

Conservation of Energy means that energy is neither created or destroyed, but rather that it simply is transferred from one form to another. There is a finite amount of energy, but seemingly infinite manifestations of that amount. Energy is the E in Einstein’s famous E=mc².. Energy is a fundamental part of the universe, and again is neither created nor destroyed.

So, how does the conservation of energy relate to marketing?

Immediately I was drawn to the idea of the interaction between a company and the consumer. The product or service offering of a company is designed to address some unfulfilled need of the consumer. “Wouldn’t it be great if that were bigger, faster, better, cheaper, more, easier, smarter, less, …” You get the gist. The consumer chooses if the need is important enough to act upon, and if so, can choose to seek help from a particular company. This all represents potential energy. The goal of marketing is to convert this into kinetic energy - initially this is a sale. But it does not end there.

If the initial sale goes well, there is a good chance that more of the consumer’s potential energy is converted to kinetic energy. This may take the form of repeat business. If things go exceptionally well, the consumer may choose to actively participate in the conversion process by spreading the word to friends and family. This positive word of mouth can deliver more kinetic energy. This should ultimately result in cash for the company - potential energy. At which point, the company might choose to invest in future innovation - potential energy.

Conversely, if the sale goes poorly, the conversion of energy from potential to kinetic follows a different path. If the experience is mediocre, most of the potential energy will likely remain unconverted, or will be converted by another provider. The consumer goes away, and the transaction is a one-time experience. If things go very poorly, large amounts of potential energy will be converted - this time to the detriment of the company. An angry consumer in the digital age can spread negative word of mouth far, wide, and fast. In instances where others share a similar negative experience, the result for the company can be devastating. . Consumers will move to competitors, and the company will struggle to survive.
According to Abraham Maslow, all people have needs. These needs constantly change form but always remain present. Thus energy is always present in the marketplace. Marketing seeks out potential energy. Great marketing maximizes its conversion to kinetic energy, and then back to potential energy again.

What do you think? Draw your analogy between Conservation of Energy and Marketing. Join the conversation and leave your comments.

Gordon Ramsay - Recipe for Marketing Success

I am not a big TV guy, especially not reality TV, but I found a show that I have come to love watching. It is called Kitchen Nightmares, and features Chef Gordon Ramsay. In every episode, he helps a failing restaurant to get back on track, and in my mind the show is really more about Marketing than cooking. In fact, Gordon doesn’t spend much time on recipes and cooking lessons at all. What he does do is give frank, upfront analysis of why the restaurant is failing, and what needs to be done to correct it. Here are some common themes on the show.

Quality:

As a top tier chef, Gordon demands top quality products. Never frozen, never microwaved. It is amazing how these restaurants try to shortcut basic quality and pull it off as the real thing. Is this unique to restaurants? No. Product quality is paramount to success, at least long term success of any business, and is at the core of marketing. He also preaches honesty. He demands that the proprietor be honest with themselves and likewise with customers. Sound like advice you could apply at your business?

Target Market:

Many of the restaurants on the show make a common mistake - make everything and specialize in nothing. One of the first things Chef Ramsay does to help is research other restaurants in the area to find an unfulfilled need. He then tailors the menu to the market that the restaurant will serve. Not in-depth statistical analysis, but simply being aware of the surrounding world. The result is a restaurant with a clearly defined brand identity.

Focus on the Customer:

From making the menu simple to read, to making the restaurant more aesthetically pleasing, shortening wait times, to improving the presentation of the product, everything revolves around making the customer experience enjoyable. “Is the sign for the restaurant visible from 100 meters up the road?” “Are the ingredients fresh?” “Do people enjoy the experience?” Sure he drops some F bombs in the process, but the guy knows what to do - focus on the customer.

Do Your Best…Everyday!

“Are you committed to making it work?” The message is clear. If you want to make it in the restaurant business - or any business - you have to bring your “A Game” every day. No slackers allowed. No cutting corners. Quite simply, greatness never sleeps. It takes passion and dedication to be the best.

Marketer or not, give the show a look.

Gordon Ramsay Home Page - Fine Dining in London