This blog aims to share and stimulate dialogue around ideas for small business development and growth.


Hmmm…. your customers are creating the market place now not you. Give us choice and we will take it! Look at us has been replaced with look at what we are doing. The big question; is your marketing designed for a static world or an ever changing one?

Markets will always outperform individual businesses, they also learn a lot faster and are better connected than  business too. If you’re marketing ain’t broken, its about time you asked yourself why? As Jeff Jarvis said “The mass market is dead. It committed suicide. Google just handed it the gun.”

Most companies, for the last 10 years, have taken the easy way out to market their brands, they have essentially bought customers. Sadly, its cost more and more and had less and less impact. In the past it was about driving traffic to your business, now its about loyalty.

Remember this equation; Feeling valued = loyalty + commitment

Most of us are still acting as if what we do is scarce. Shouting isn’t going to get you heard above the crowd, not when everyone else if shouting too. Now really is the time to tear up the marketing you have been doing in the past. Measure its return on investment and, then when you’ve picked yourself up off the floor, go and find some other way of connecting with your customers.

In all the loudness, the shouting, the telling, the one sidedness of it all, we’ve forgotten what really matters the relationship. The relationship you have with your people, with your customers, competitors and collaborators. Communication is out (far too one sided) and, as we know, conversation is in (its far more two way.)

As Christopher Locke said in The Cluetrain Manifesto, “genuine conversation flourishes only in an atmosphere of free and open exchange.” That means respecting people’s opinions, feeling what its like to be in there shoes, understanding their values and concerns. Attempting to help solve solutions, not absolve ourselves from responsibility by building robust, meaningful relationships.

2010 will mean us becoming more ‘real’ and the web and social media will aid us in this mission next year. Many still think of the web as not real, yet it’s never been more real, more alive, more exciting. It generates millions of conversations everyday. It transports important information every hour and it enables people to stay connected every second. It’s time for you and I to get a grip and think about how the web will help you develop and sustain great relationships next year.

I think we are heading for more trouble, well some brands both big and small. We’ve spent the last fifty or so years (perhaps more) encouraging several generations of customers to demand more and more even when they didn’t need it. Now those demands are outstripping businesses ability to meet it.

Overnight, technology, people and economics have collided to create a new market, a new desire, a new need. No longer can we control and exploit customers. We can’t keep them on the threshold of our businesses and carry on with a transactional relationship. We have to invite them in to fully participate in what we are doing.

Like it’s employees/managers, customers are just as important stakeholders as the owners of the business. The word ’shareholder’ will have a very different meaning in the future.

Business in the past was valued on it’s financial performance, it still is. Increasingly, it will also be based on influence, followers and fans. If we own something we try to protect it. In fact, we can become over protective. For years we have been conditioned to think that we own stuff at work; our team, our customers, our products. Tesco thinks it owns it’s suppliers!

This over exuberance can be detrimental, if not a tad delusional. We can spend lots of money defending something that we actually don’t own. The future, we know, will be based on the value of our relationships with our fellow humans. You can only part own a relationship. You will only part own a product as we collaborate more, you have never owned your people, especially in a war for talent. And customers just ain’t buying that ‘priviledge’ thing anymore.

You don’t own the buildings you work in, you probably don’t own that car you drive and your company probably only lease that computer and mobile you use. We need to shift our mentality from one of ownership to partnership. That way we can work positively on the things that really are meaningful and rationally focus our efforts.

It’s an interesting question. If social media is to, actually it has, taken over and because of the demands of the new marketing approach that’s emerging, why do we need a marketing department at all? In his blog post http://thebrandbuilder.wordpress.com/2009/10/29/becoming-p2p-principal-characteristics-of-the-new-social-business/ Olivier Blanchard sets out that a P2P business (people to people) doesn’t even need a Social Media Director citing that social media is completely embedded in the organisation. He has a point!

Social media removes the need for one department to be responsible for marketing. Indeed, perhaps if a company does have a marketing department, they are completely subverting what social media can do. Marketing, in the future, will be about valuable conversations, enlightening collaborations and strong connections, all wrapped snuggly in a ‘word of mouth’ blanket!

In fact here’s a suggestion, if we are moving from B2C/B2B to P2P, perhaps we need to merge human resource and marketing departments. They have a lot in common in the suggested P2P environment. Retention of staff/customers, loyal customers/staff, great conversations, cultural shifts in expectations and bevhaviour, the way we treat people, the relationships we have, brand equity and so on and so on.

It makes sense, there is so much synergy between the two disciplines now that it would be a shame to miss an opportunity to add value to the P2P relationships we have both internally and externally. By the way, Olivier’s post is well worth the read!

Lets talk about something different, similarity! Groove Armada said it in their song ‘if everybody looked the same, we’d get tired of looking at each other.’ Look around you, we do look the same. Coffee shops on the high street, marketing agencies, bottled water, training companies, banks, solicitors. Just go and compare these two sites; www.hellyhansen.com and www.musto.com and you’ll get a flavour of what I mean.

When your competitive advantages are the same, you have got to approach how you engage with your market place better, which is why I keep banging on about customer experience. Here’s a suggestion. Set up a new project team that meets on a regular basis. Make it cross functional and call it the ‘Disruptive Team.’ Their job, to disrupt the status quo, to discover what TRULY makes you different and to guide you swiftly away from similarity.

Undertaking something like this won’t destroy your brand, indeed, it might just be it’s saviour.

marmite

People will often say that your brand is like Marmite, they either love it or hate it. Your retort should always be, as long as people don’t find us indifferent. These ARE times for ’sticking your head above the parapet’ and ’sticking out like a sore thumb’ as long as it’s for something exceptional of course.

Being in an indifferent position is fundamentally a difficult place to be. Customers don’t see you and therefore ignore you. It becomes inherently difficult to build any traction on the customer loyalty front. Many companies initiate the worst action with poor consequences by trying to buy customers through traditional marketing tactics. That only gets you bad profits which you can’t sustain over the long term.

Better have a smaller list of customers who love what you do, promote what you do and buy more of what you do again and again. Rather than the ‘yeah whatever’ group that aren’t listening. Those that hate you…..well that’s just life!!!

Some time ago John McMahon from www.forum21.co.uk professed that there were nine competitive advantages ranging from production cost to marketing to R & D. I still think he is right but those nine can be honed down into two differentiating factors; the price you charge and doing something definably different/innovative.

Realistically, if you’re in the price sensitive market, price in some ways is all you’ve got and we know where that leads. More price reductions, more price promotions, more sales deals, less margins. People want quality but have low expectations of customer service. Let’s be honest, if I go into Primark, I’m not that bothered about having a meaningful, long term relationship with the people in there. I want my t-shirt for £1 and then I want to leave.

If you’re delivering something different and innovative, now that’s a different ball game all together. Expectations from the start are critically higher. We demand undivided attention if we are buying a premium product. We desire a mutually respectful relationship that’s full of trust. Our motivations to purchase are just as much about the product as the service and its emotional too. The focus has got to be the unrelenting exceptional customer experience.

Or, you can just be in that very vulnerable, very competitive place, the middle like Next, River Island, Debenhams and Marks and Spencer where you have to look good, be good and deliver a good price too. In fact, you have to hit both competitive advantages simultaneously, continuously, everyday! Now that’s difficult.

I know I’m not the only one surprised that TV advertising is still around, albeit in rapid decline. It just doesn’t ‘do it’ for us consumers anymore. We no more want to be shouted at than swim through nuclear waste! If it is to survive, and for a change I’m skeptical, it’s going to have to work a hell of a lot harder. If they don’t give us discounts, then they are going to have to develop our knowledge.

Lets look at some examples (please watch before you read on):

http://www.youtube.com/watch?v=Ux9TDMDQ88Y

Well, what can you say? I’m not offended by this, but I am when it’s supposed to educate me. In fact, unusual as it is, I just am a little stuck for words, except their advertising agency needs sacking with immediate effect.

Next one:

http://www.youtube.com/watch?v=JSlyK5w8AQg

This is attempting customer experience. For those of us that understand ‘customer experience’ we know that this is not what is meant. It’s traditional marketing disguised and its all about impressing yourselves BMW, but you don’t impress me, the potential customer. In fact, it sucks, they’ve just jumped on the bandwagon.

Now lets reaffirm some sanity. Go and watch the news packages on the BBC ‘Hungry to Learn’ about children in countries around the world who overcome tremendous problems to go to school. Enlightening, humbling and educational. Fabulous, it’s increased my knowledge and expanded my mind. It may have cost more than an advert, or perhaps not? But it’s impact is far greater.

It wouldn’t take much for a small IT company to shoot a video on the future impact of IT. It would cost little for a food company to do a video on the implications of globalisation in their industry. How much would it cost for a pizza takeaway business to create a video about social media? Just some thoughts….

Marketing, and advertising for that matter, now need to be excellent, compelling and mind shifting in a way that people go and tell their friends. The BBC is building and reinforcing its reputation, the others are just struggling to understand what’s happened in the field of marketing. We have the tools and technology to do this cost effectively, so there is no excuse!!

10102009404

Are you keeping people out or inviting them in? It costs very little to pick a great customer who has fabulous ideas and creates value for your business and then mix him/her up with a few of your other customers and let them come up with the next developments you need to make. Imagine how that may impact your reputation too!