More Blood…

Not all blood is the same.  Yes blood is red and carries oxygen throughout your body, but blood has different characteristics or types.  As a result, there are sometimes issues with compatability.  Your blood may or may not be able to function properly in another human being, depending on your respective blood types.  There are over 30 types of human blood systems, going far beyond the familiar A,B,and O & +- nomenclature taught to us in high school anatomy class.  Blood type is important.

In a recent post, I equated the customer to blood - the sustaining source of life to a company.  It is important to realize that just as there are blood types, there are customer types as well.  Different people seek different benefits from a business.  Some may desire low price.  Others may care deeply about selection or service quality.  While some may care more about quality, image, or speed.  For most it is probably a unique combination of several factors.  What is important to understand is that not everyone is going to be the right type of blood for your business.  That does not mean you should dismiss people or treat them poorly if they are not your “ideal customer,” but rather to acknowledge that you can’t please everyone.  Choose a blood type that fits well with your body (business), and that is available in sufficient supply to sustain life.

If there are 50 competitors vying to be the “low price leader,” you may want to focus on innovative new products, amazing customer service, or fast delivery instead of trying to be the 51st low price leader.  The people seeking low price will not be impressed with you, but they are not the right type of blood for you either.  Low price is incompatible with what your body needs to live.  Ask people what they want.  Find out what type of blood flows through the veins of your best customers, adjust your approach accordingly, and seek out others like them to provide you with more blood as your organization grows.

http://en.wikipedia.org/wiki/Blood_type

Blood

Blood sustains human life.  Oxygenated, healthy, red blood.  Without it we die.  Yet, oddly enough many people pass out at the site of it.  They are terrified of the very thing that sustains them.  Even the thought of it makes some queasy.  But, afraid of it or not, blood is vital.

Customers are like blood.  I have even heard it said that customers are the lifeblood of an organization.  Without them, and the money they spend, a company will die.  Yet many employees and entire companies are afraid of blood - afraid and resistant to really talk and listen to their customers.  Afraid to see the blood that sustains them.

When something goes poorly and things deviate from the plan, blood is spilled.  What happens next is vitally important to marketing.  The cut may be a minor scrape or a gaping wound, but both reveal blood.   If the response is to “look away” the wound will fester.  It may continue to bleed out over time, sapping the life of a company with it.  It may heal up, only to become infected because no remedy was sought.  It is not a good idea to be afraid of blood if you hope to stay in business.

If the response is to carefully cleanse the wound, taking every effort to heal it and taking steps to avoid another cut,  blood will continue to properly flow and life will likely be sustained.

Things go wrong from time to time.  Cuts and scrapes happen.   Don’t let the fear of a little blood keep you from improving what you do.  Your life depends on it.

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…

Voices Episode 6 - Jason Hillard

How far would you go to help a friend?  Would you be willing to have one of your organs removed to save them?  No, this is not an intro to a party game about difficult questions, this is a real question - one that was posed to Daytonian Jason Hillard.  Listen as I speak to Jason, who is about to donate one of his kidney’s to a friend in need.

I found out about Jason’s act of incredible kindness a few weeks ago, when he sent me an email to let me know that he would be closing down his office for a few weeks as a result of the surgery.  He then went on to explain why, and provided some prelimiary details about the pending operation.  I was floored that he was going to actually do something so kind, and I asked him if he might like to do a podcast to share his story with the rest of the world.  Thankfully he said yes.

On Friday, July 25th, 2008 - just a few days prior to his surgery, Jason and I sat down at his home in Dayton’s Oregon District for a conversation.  For me, it was so inspiring to sit across from this guy, a guy I know pretty well, and see him calmly describe this amazing act of generosity as if it were just another day.  Literally, he told me that he was more nervous about recording a podcast than about the surgery.  He really is an amazing guy.

I encourage you to listen to this podcast, and share Jason’s inspiring story with others you know.  For anyone who needs to restore their belief in the goodness of mankind, look no further than Jason.  Oh, by the way, when he recovers he and his wife, Ann Charles Watts, who is in charge of Habitat for Humanity in the Region, are hoping to become foster parents.  They serve as an example to us all of how to be Servant Leaders.  I am honored to know them.

If you would like to help Jason and his family or just offer some words of support, contact me and I will forward along his information to you.

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?

Help! I Need Somebody…

Do you live in or around Dayton, Ohio?  Are you interested in spending an hour or two per month making new connections and sharpening your professional skills - all while making a huge difference in the lives of people in need of help? If so, please consider volunteering to help the Epilepsy Foundation of Western Ohio.

How can you help? The EFWO has numerous functional committees such as Marketing, Finance and Fundraising, Volunteerism, and Programming, which can serve to connect you with other talented professionals in your chosen field. This is a great way for young professionals to build connections and credentials, and for more seasoned practitioners to stay fresh. And, the time you spend, which is probably only about an hour or two a month, goes to help people with Epilepsy right here in the Miami Valley.

There are also numerous event committees in need of help within the EFWO. Currently, we are gearing up for the annual Mud Volleyball Tournament, July 12. This is an event that always needs helping hands because it is so much fun.  We are always in need of helping hands and creative thinkers, so if you are interested in lending a hand, contact the EFWO.  In addition to MUD, there is Wine and Jazz in November, Mardi Gras in February, and numerous other fundraising events - all of which need people.

If you are a seasoned professional looking to get even more involved in the community, consider applying to join the board.  We currently have a few open seats, and would welcome experienced leaders who are looking to contribute their skills to a great cause.  The process for this is understandably more rigorous than for joining committees, as the commitment and responsibility associated with being a board member is substantial.

Finally, if you just want to help out here and there - without being committed to anything - please volunteer to help our staff.  Like any good non-profit we run a lean operation, relying heavily on the kindness and generosity of others to get everything done.  There is an endless to do list, and a limited number of hands, so any time you can donate, even 30 minutes here and there, would be appreciated.

For more information on how you can get involved with the Epilepsy Foundation of Western Ohio, call (937) 233-2500 or (800) 360-3296 or visit us on the web at www.ohioepilepsy.org

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

Seth Riffs on Proximity

A few weeks back I was discussing Newton’s Law of Gravitation and the importance of proximity in Marketing. This discussion revolved around the idea of getting close to the customer, and how that can yield huge dividends. Seth Godin has furthered the discussion with this great riff on proximity.

Seth looks at the implications of proximity relative to the pain experienced by the consumer. The closer you are to the consumer, the more you understand their pain. The better you are at relieving that pain, the more value you bring. The more value you bring, the more you can charge for what you do.

Think about how trust and relationships play a role in your purchasing decisions, especially in today’s fast paced world. The modern marketplace is more fragmented than even, and the ability to attract attention through sheer mass becomes more difficult every day. Conversely, it seems that technology is making proximity - which according to Newton is exponentially more important than mass - easier to achieve every day.

Seths Blog: Proximity to pain

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.

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