I have always believed that marketing success starts with the product. If the quality of the artistic product isn't there, there is nothing a marketing director can do to put more butts in seats. Audiences will leave no matter how thought out or brilliant the marketing strategy. That being said, if the product is strong, a primary function of a marketing director is eliminating the barriers to purchasing.
Several weeks ago, I began to feel that even with a strong product, in today's economy, we must give people a reason to buy. No longer would a strong artistic product marketed well be enough. I tested this hypothesis by developing the NEW DEAL program at Arena Stage, which resulted in sales significantly beyond our expectations. The reduction in ticket price, even if for a day, gave potential patrons the reason they needed to make the purchase, especially on something that was dependant upon very limited discretionary spending.
So I wasn't surprised by an article in the Washington Post entitled "Holiday Shopping in a Downturn: Deals or Nothing at All." The basic rule of retail businesses on Black Friday is to offer highly attractive "door buster" sale items to lure customers in the door. The idea is that even after the "door busters" are sold out, customers will stay and purchase non-sale items. It has worked well for retail businesses for over a decade. But it didn't this year. The rules have changed. Customers showed up for the "door busters" as usual, but once the deals were gone, so were the customers. They didn't stay and shop. Once the "reason to buy" was eliminated, the sales stopped.
It seems like all the rules have been thrown out the window. We know the small profit margin on new car purchases, right? Dealerships make most of their money on the financing. But to get people to purchase, there are several dealerships offering "buy one, get one" deals on cars. When have you ever heard of that?
Sunday, November 30, 2008
Friday, November 28, 2008
Budgeting and the artistic product
I had the pleasure of hearing Karen Hopkins speak at the National Arts Marketing Project Conference in Houston. During her speech, she said several things that caught my attention. Because the conference centered around how marketing and development departments could work together to maximize revenue, she outlined the revenue breakdown between earned vs. contributed sources for the Brooklyn Academy of Music:
Brooklyn Academy of Music
Expenses $38 million
Box office income: $11.9 million (31% of expenses)
Other earned revenue: 4.6 million (12% of expenses)
Contributed revenue: $22 million (private and public) (57% of expenses)
Programs:
· The Next Wave Festival
· Spring season of theater, opera, dance
· Education—serving 25,000 students at 219 schools
I have always admired the artistic work of BAM, and some of the nation's most creative work from the past several decades have been created and/or featured at BAM, including Peter Brooks' epic Mahabharata and Philip Glass's Einstein on the Beach.
One of the struggles that we are facing at Arena Stage is an imbalance between earned and contributed revenue. Arena Stage is more reliant on earned revenue than most regional theaters, and it puts the marketing department in conflict with the artistic department. I joined Arena Stage because of its long heritage of superb artistic work, and our artistic strategic plan calls for the exploration of new and challenging work in the future. However, the more reliant a company is on earned revenue, the less risk and new work the company can take on because it is reliant on steady box office revenue. Thankfully the communications department and the artistic department at Arena Stage work very well together, and we are in the process of hiring a chief development officer to increase our contributed revenue streams.
To test my hypothesis about how an imbalance between earned and contributed revenue streams can affect programming, I took a look at two institutions--one known for artistic risk taking and new play development (The Public Theater), and one known for presenting/producing only well known, less risky work (Walnut Street Theatre).
Here are their breakdowns:
Public Theater (New York Shakespeare Festival)
2006 990Expenses: $17 million
Box Office income: $5.2 million (31% of expenses)
Other earned revenue: $1 million (6% of expenses)
Contributed revenue: $8.6 million (51% of expenses)
Walnut Street Theatre (from their 2006 990)
Expenses: $13.5 million
Box office income: $11.5 million (85% of expenses)
Other earned revenue: $500k (5% of expenses)
Contributed Revenue: $1.4 million (10% of expenses)
To quote Michael Kaiser from his new book, "Not-for-profit arts organizations should be doing work that commercial producers won't consider either because the work is too large or too risky. This is what justifies the use of tax-deductible contributions." As I look at Walnut Street's financials, they are very close to operating like a for-profit institution, with only 10% of its budget coming from contributed revenue. So, don't look for them to do anything "too large or too risky." They can boast that they have the world's largest subscription base, and although I like Ralph Weeks (their Director of Marketing), it isn't because they figured out the "subscriber problem" or have exceptional marketing, it's because of their programming. Their shows for this season include 5 shows: State Fair; Hairspray; A Streetcar Named Desire; Born Yesterday; and The Producers (all musicals and/or well known products).
From the opposite perspective, the Public Theater can do "large and risky" productions, which they are well-known for because more than half of its budget comes from contributed sources. For comparison purposes to Walnut Street, check out the Public Theater's season: Road Show; If you see something, Say something; Taking Over; The Good Negro; Why Torture is Wrong; The Singing Forest; Khartoum; The Native Theater Festival. As a theater insider, I have only heard of three of these projects, mostly because Arena Stage has a history with two of them.
The more a company is handcuffed to its earned revenue streams and box office, the less it's able to concentrate on its non-profit mission. And in this economy, a heavy reliance on either contributed or earned revenue isn't a good idea since an organization's revenue streams should be diversified, so as not to put all your eggs in one basket.
Brooklyn Academy of Music
Expenses $38 million
Box office income: $11.9 million (31% of expenses)
Other earned revenue: 4.6 million (12% of expenses)
Contributed revenue: $22 million (private and public) (57% of expenses)
Programs:
· The Next Wave Festival
· Spring season of theater, opera, dance
· Education—serving 25,000 students at 219 schools
I have always admired the artistic work of BAM, and some of the nation's most creative work from the past several decades have been created and/or featured at BAM, including Peter Brooks' epic Mahabharata and Philip Glass's Einstein on the Beach.
One of the struggles that we are facing at Arena Stage is an imbalance between earned and contributed revenue. Arena Stage is more reliant on earned revenue than most regional theaters, and it puts the marketing department in conflict with the artistic department. I joined Arena Stage because of its long heritage of superb artistic work, and our artistic strategic plan calls for the exploration of new and challenging work in the future. However, the more reliant a company is on earned revenue, the less risk and new work the company can take on because it is reliant on steady box office revenue. Thankfully the communications department and the artistic department at Arena Stage work very well together, and we are in the process of hiring a chief development officer to increase our contributed revenue streams.
To test my hypothesis about how an imbalance between earned and contributed revenue streams can affect programming, I took a look at two institutions--one known for artistic risk taking and new play development (The Public Theater), and one known for presenting/producing only well known, less risky work (Walnut Street Theatre).
Here are their breakdowns:
Public Theater (New York Shakespeare Festival)
2006 990Expenses: $17 million
Box Office income: $5.2 million (31% of expenses)
Other earned revenue: $1 million (6% of expenses)
Contributed revenue: $8.6 million (51% of expenses)
Walnut Street Theatre (from their 2006 990)
Expenses: $13.5 million
Box office income: $11.5 million (85% of expenses)
Other earned revenue: $500k (5% of expenses)
Contributed Revenue: $1.4 million (10% of expenses)
To quote Michael Kaiser from his new book, "Not-for-profit arts organizations should be doing work that commercial producers won't consider either because the work is too large or too risky. This is what justifies the use of tax-deductible contributions." As I look at Walnut Street's financials, they are very close to operating like a for-profit institution, with only 10% of its budget coming from contributed revenue. So, don't look for them to do anything "too large or too risky." They can boast that they have the world's largest subscription base, and although I like Ralph Weeks (their Director of Marketing), it isn't because they figured out the "subscriber problem" or have exceptional marketing, it's because of their programming. Their shows for this season include 5 shows: State Fair; Hairspray; A Streetcar Named Desire; Born Yesterday; and The Producers (all musicals and/or well known products).
From the opposite perspective, the Public Theater can do "large and risky" productions, which they are well-known for because more than half of its budget comes from contributed sources. For comparison purposes to Walnut Street, check out the Public Theater's season: Road Show; If you see something, Say something; Taking Over; The Good Negro; Why Torture is Wrong; The Singing Forest; Khartoum; The Native Theater Festival. As a theater insider, I have only heard of three of these projects, mostly because Arena Stage has a history with two of them.
The more a company is handcuffed to its earned revenue streams and box office, the less it's able to concentrate on its non-profit mission. And in this economy, a heavy reliance on either contributed or earned revenue isn't a good idea since an organization's revenue streams should be diversified, so as not to put all your eggs in one basket.
Wednesday, November 26, 2008
More news from around the world...
As the economy gets worse, the impact is starting to become apparent, even at some of the largest institutions in the nation:
Tennessee Company Calls Off All Opera For Next Season
Vancouver's Ballet BC Lays Off Everybody
Fundraising For Orlando's New PAC Falls Short
Detroit Symphony In The Red, And It Could Get Worse
Public Postpones 2009 Production of Guare's Free Man of Color
Young Frankenstein Folds, & Schadenfreude Strikes B'way
As Baltimore Orgs Face Cuts, Opera Co. Is On The Brink
Minn. Museum of American Art To Close, Reopen Eventually
Canadian Arts Groups Hurting As Stock Investments Plummet
Struggling Broadway Sees Two More Shows Close
MOCA Considers Selling Itself To LACMA
Madison PAC Cutting Staff
Tennessee Company Calls Off All Opera For Next Season
Vancouver's Ballet BC Lays Off Everybody
Fundraising For Orlando's New PAC Falls Short
Detroit Symphony In The Red, And It Could Get Worse
Public Postpones 2009 Production of Guare's Free Man of Color
Young Frankenstein Folds, & Schadenfreude Strikes B'way
As Baltimore Orgs Face Cuts, Opera Co. Is On The Brink
Minn. Museum of American Art To Close, Reopen Eventually
Canadian Arts Groups Hurting As Stock Investments Plummet
Struggling Broadway Sees Two More Shows Close
MOCA Considers Selling Itself To LACMA
Madison PAC Cutting Staff
Thursday, November 20, 2008
If You Don’t Look Up, You Might Just Loose Your Head.
There was a light coating of snow on the ground, the morning sun was just starting to peak through the tree limbs, I was following the soothing flow of a creek and I literally had miles of woods all to myself … and I was missing it.
I realized that, in order to not break an ankle, my eyes never left the path 4-6 feet in front of me. I could have easily run right by a deer, coyote or hawk and never notice it because I was more concerned with the occasional rock and root in my path.
Don’t get bogged down by the rocks and roots in your day … take some time to look up and enjoy the journey.
In trail running, you need to look ahead to plan your route or you could end up doubling back to avoid a downed tree … or worse, get crowned by it.
Don’t loose your head. Take some time to look ahead of the day-to-day “rocks and roots” to see what other obstacles or opportunities might lay ahead.
Take care,
Eric
Wednesday, November 19, 2008
History...a prediction of the future?
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."by Thomas Jefferson in the letter to
The Secretary of the Treasury, Albert Gallatin (1802)
The Secretary of the Treasury, Albert Gallatin (1802)
I can't make this stuff up! It seems that our forefathers always know best and have a way of describing what we experience today with the candor and articulateness of our past.
In an environment of declining trust in our financial sector, it is important that we take a step back and remember why we are really here...for our customers. Without them, there is no us. Or, as Jerry McGuire would say, "You complete me."
The lost trust will not easily be restored. But those of you who reach out to your communities now, communicating your stability and how support your customers, will be the winners in the long run.
I am feeling a little sentimental today so that's it for now. But I have a very interesting strategy to share with you next time...and let's just say we can all learn something from the technique. Email me or post a comment if the anticipation gets the best of you.
Be extraordinary today!
Jenna
Monday, November 17, 2008
Results from the Arena Stage New Deal
Round 1: Economy vs. Arena Stage
Tactic: Arena Stage's New Deal--25,000 tickets at $25 each for 24 hours
Good for the first week of any remaining production in 2008-09
Results: 6,661 tickets sold for almost $200,000 in revenue in a 24 hour period
Notes:
Tactic: Arena Stage's New Deal--25,000 tickets at $25 each for 24 hours
Good for the first week of any remaining production in 2008-09
Results: 6,661 tickets sold for almost $200,000 in revenue in a 24 hour period
Notes:
- The previous highest grossing day at Arena Stage was $90,000 in 2002, which we more than doubled.
- We created 229 entirely new patron accounts.
- Several preview performances sold out, and the remaining shows have very healthy houses which should go a long way in boosting word of mouth early.
- We sold 1,400 tickets in two hours from 12am-2am on Friday morning.
- We had a line at the box office at 12am, including a woman in her sleeping bag.
ROUND 1 GOES TO ARENA STAGE
Asking the unpopular--is there too much art?
The economic crisis is starting to trickle down to arts organizations all over the nation. Recent casualties of the crisis include Opera Pacific, Milwaukee Shakespeare Festival, and several Broadway shows. To adjust for the weakening economy, planned productions have been abandoned at Seattle Repertory Theatre, Washington National Opera, the New York City Opera and even at the seemingly untouchable Metropolitan Opera. Not to mention the St. Louis Museum of Art postponing its $125 million expansion or the Shakespeare Theatre missing its gala goal by $300,000.
The impact of the crisis will be felt in communities all around the country. Quite simply, the casualties listed above won’t be the last. Arts organizations will fail and close as contributed income dries up, and earned revenue weans. Although tragic for the artists connected to these organizations, the unpopular question that continues to emerge with my colleagues from around the nation is: are the closings of these organizations necessarily a bad thing?
Is there just too much art? Take for example an article written in the Washington Post on April 23, 2008 which cites a study by the Helen Hayes Organization that says in 2007, there were 402 more performances by theatre companies than the previous year but attendance was down by 36,000 patrons. From this report, it would seem that supply has significantly surpassed demand, and this isn’t surprising when you take into consideration the boom of new theaters in the Washington metropolitan area.
Artists, including myself, like to point to ways to increase demand, revitalize arts education, court younger audiences, launch massive outreach programs—as the answer to this problem. But the supply and demand conundrum that many communities face can also be solved by eliminating the excess supply. This crisis will create a de facto “survival of the fittest” culture for arts organizations. Those organizations that are financially sound and create consistently good product might feel a pinch but should weather the storm. Those organizations who were limping along prior to the crisis will probably cease to exist, thereby eliminating the surplus in supply in competitive markets and returning the community to a sustainable stasis.
In the end, although painful in its process, this crisis might create stronger artistic communities throughout the nation.
The impact of the crisis will be felt in communities all around the country. Quite simply, the casualties listed above won’t be the last. Arts organizations will fail and close as contributed income dries up, and earned revenue weans. Although tragic for the artists connected to these organizations, the unpopular question that continues to emerge with my colleagues from around the nation is: are the closings of these organizations necessarily a bad thing?
Is there just too much art? Take for example an article written in the Washington Post on April 23, 2008 which cites a study by the Helen Hayes Organization that says in 2007, there were 402 more performances by theatre companies than the previous year but attendance was down by 36,000 patrons. From this report, it would seem that supply has significantly surpassed demand, and this isn’t surprising when you take into consideration the boom of new theaters in the Washington metropolitan area.
Artists, including myself, like to point to ways to increase demand, revitalize arts education, court younger audiences, launch massive outreach programs—as the answer to this problem. But the supply and demand conundrum that many communities face can also be solved by eliminating the excess supply. This crisis will create a de facto “survival of the fittest” culture for arts organizations. Those organizations that are financially sound and create consistently good product might feel a pinch but should weather the storm. Those organizations who were limping along prior to the crisis will probably cease to exist, thereby eliminating the surplus in supply in competitive markets and returning the community to a sustainable stasis.
In the end, although painful in its process, this crisis might create stronger artistic communities throughout the nation.
Monday Morning Quarterback
Greetings...
Can you believe its November 17th!!! Thanksgiving is around the corner and the year is speeding to a close. On Mondays, I always read the paper and am constantly puzzled and irritated by the editorial comments and articles written about the weekends football games. Nothing like being a Monday morning quarterback. You know, sitting at the table, drinking a cup of coffee and thinking about the decisions coaches made, plays the players did not make and the state of the game. I have all the answers!
Well, that is exactly what is occurring on ALL of our markets...by the newspapers and TV news. How do we counteract it?? Get ahead of the curve!
You need to be proactive with your messaging NOW more than ever! A constant flow of positive press releases, making your senior executives available to the press at any time (with even a moment's notice), and proactively suggesting topical ideas. These are all ideas to get ahead of the powerful PR curve. We know the stories of ill-conceived sub-prime lending, lax credit reviews, and overly aggressive lending tactics. However, we know we are NOT part of it...yet, if we don't communicate and get ahead of that curve, we will be lumped into the same category and pulled into the same articles.
Hold yourself up as a positive example...share stories of your lending staying local, community assistance, credit assistance programs...anything that will counteract the negative press.
As Marketers, we have to be both strategic and tactical in our thoughts, planning and approach. Within our bank and externally to those that talk about us. That includes the press, our customers, and our staff!
Constantly review the "talk" and provide your staff with talking points, Q&As, and other information to prepare them for potential questions. The questions asked in the office are only a small portion of the questions asked....Don't forget that you and your staff are representatives of the bank and are probably asked MORE questions are football games, dinner parties and at the mall that anywhere else...remind your staff to be prepared and direct people to credible resources for information (your website hopefully is one of those resources!)
With preparation, planning, and getting ahead of the curve, you can position your bank to be a leader now and in a strong leading position when the economy and industry eventual turnaround.
Cheers!
Bruce
Can you believe its November 17th!!! Thanksgiving is around the corner and the year is speeding to a close. On Mondays, I always read the paper and am constantly puzzled and irritated by the editorial comments and articles written about the weekends football games. Nothing like being a Monday morning quarterback. You know, sitting at the table, drinking a cup of coffee and thinking about the decisions coaches made, plays the players did not make and the state of the game. I have all the answers!
Well, that is exactly what is occurring on ALL of our markets...by the newspapers and TV news. How do we counteract it?? Get ahead of the curve!
You need to be proactive with your messaging NOW more than ever! A constant flow of positive press releases, making your senior executives available to the press at any time (with even a moment's notice), and proactively suggesting topical ideas. These are all ideas to get ahead of the powerful PR curve. We know the stories of ill-conceived sub-prime lending, lax credit reviews, and overly aggressive lending tactics. However, we know we are NOT part of it...yet, if we don't communicate and get ahead of that curve, we will be lumped into the same category and pulled into the same articles.
Hold yourself up as a positive example...share stories of your lending staying local, community assistance, credit assistance programs...anything that will counteract the negative press.
As Marketers, we have to be both strategic and tactical in our thoughts, planning and approach. Within our bank and externally to those that talk about us. That includes the press, our customers, and our staff!
Constantly review the "talk" and provide your staff with talking points, Q&As, and other information to prepare them for potential questions. The questions asked in the office are only a small portion of the questions asked....Don't forget that you and your staff are representatives of the bank and are probably asked MORE questions are football games, dinner parties and at the mall that anywhere else...remind your staff to be prepared and direct people to credible resources for information (your website hopefully is one of those resources!)
With preparation, planning, and getting ahead of the curve, you can position your bank to be a leader now and in a strong leading position when the economy and industry eventual turnaround.
Cheers!
Bruce
Thursday, November 13, 2008
Banks Can Learn From Obama
Barack Obama will become the 44th president of the United States for many reasons. Among them are his exceptional communication skills.
Obama will become the country's "communicator-in chief" in just a couple of months, in large part because of the way he presented himself in a variety of challenging and stressful communication situations (does the global financial crisis and the loss of trust in banks come to mind).
Obama connected with millions of Americans on a human and personal level. Persuading customers (or voters) is about more than having logical or sound ideas. Facts, data and details alone won't motivate and move people. It won't inspire them. Obama understood this and worked hard to improve his communication style.
It seems like everyone wants to sell solutions today. Actually doing it, however, requires a fundamentally different starting point when it comes to how Marketing creates and delivers customer communications.
Today, the top three challenges faced by traditional bank marketing and sales departments looking to move to a solutions selling approach are:
· How do we shift from product-centric messaging to more customer-centric messaging?
· How do we create more solutions-oriented, value-driven customer communications?
· How do we drive, more consistent, high-quality customer conversations and collateral materials throughout the sales cycle?
There’s a significant opportunity to avoid parity in your value propositions and set your company apart in the competitive marketplace by truly communicating with customers in the way they want to buy.
Since product managers often have P&L responsibility, they may charge myopically and parochially into creating the ultimate product training, sales information, marketing content, and customer communications tool kit -- extolling the virtues of their particular offerings.
Essentially, they equip business development people to tell the customer: “Here’s what it is. Here’s what it does. Here’s why it’s good for you. And, here are some ways that we think we’re better than the competition.”
Does this seem to be the typical outline of a product launch and sales kit at your company?
If product management or marketing is going to help a business development person create and sell a “solution” for a customer – whether in a conversation or presentation – then they will have to show how their product, or particular features of that product, can be applied to help the customer accomplish a real business goal, or solve a business problem.
Unfortunately, too many product marketers, while having a good grasp of their products, don’t know enough about their customers’ problems or goals. Ultimately this “company-centric” view can trickle out to sales and service people. As a result, aligning products and capabilities with real-world customer needs is left to chance with only the most intuitive business development people doing it naturally – the trait that sets them apart as successful consultative sales people.
The opportunity is to “codify” this intuitive solution selling approach and begin to pre-build marketing messages and sales content in an attempt to clone the best customer conversations and collateral materials for your overall sales staff, whether it's retail or business banking.
This requires a transformation of your sales coaching and customer-facing communications.
One way to think about it: as organizations we need to move from traditional company product-centric messaging to customer problem (or goal)-centric messaging.
The key lesson here is communication...communication...communication. It's taking the good products and services that your bank has developed and communicating to the customer or prospect how they have relevance to their particular needs today, tomorrow and in the future.
Whether or not you voted for Obama, he continues to offer valuable communication lessons to any professional who must persuade, motivate and inspire others.
Cheers,
Nick Vaglio, CFMP
Wednesday, November 12, 2008
Change is the Word
If there’s one word that can sum up 2008, it might be “Change.” I’m not saying that I was wrong – because I wasn’t – but times have changed.
With buzz phrases like “golden parachutes,” “sub-prime lending,” “predatory lending,” and “bail out” flying around, it is no wonder that the country’s perception of banking has changed … particularly BIG BANKING.
If you’re a credit union – the “not-for-profit” message will differentiate now. If you’re a community bank, the “good neighbor” message will strike a cord. In short, we should get back to the fundamentals and directly address this change in perception. Are your bank’s decisions made locally with the customer’s and community’s best interest in mind? Now consumers will care. Have you helped local small business to start and flourish? Now consumers may listen.
In short, CHANGE IS GOOD. And as small to mid-sized financial institutions, we should not only embrace it, but capitalize on it.
Take care,
Eric
Monday, November 10, 2008
Notes from Ed Keller's session at NAMP
Ed Keller, Word of Mouth Marketing Guru
Unleashing the Power of Word of Mouth
Plenary Speech
Monday, November 10, 2008
Recent example of great WOM marketing:
The Obama Campaign decided to announce his running mate via text messaging. That was the carrot to encourage people to sign up and provide their cell phone numbers to the campaign, which they used later to send out text messages to “get out an vote.” Those cell phone numbers were incredibly valuable to the campaign to set up their word of mouth campaigns.
3.5 billion brand impressions via word of mouth each day in the United States. Think about how expensive a brand impression is that you purchase via paid advertising.
Word of Mouth is the most influential touchpoint (from research done by AdvertisingAge). Word of mouth has more impact than any other touchpoint available.
What is word of mouth?
-people giving advice, insight and information to others in their own voice and in a natural, honest and genuine way.
Word of mouth marketing:
1. Encouraging word of mouth within a marketing objective.
2. Making it easy for consumers to spread the word about your brand
3. Making sure everything you do that touches the consumer is “TalkWorthy”
Word of Mouth Marketing Techniques:
Online: Online buzz, viral videos, brand blogging and brand communities
Offline: street teams, house parties, referral marketing, customer activation and CRM, WOM sampling and seeding, evangelist marketing (finding the 1% of your customer base who are evangelicals about your product and helping them spread the word)
Key Questions:
1. What’s your story?
2. Who will tell it?
3. How can you facilitate the conversation (tools you can create to help WOM)
6 Key Insights:
1. Americans like to talk. The average American engages in 105 conversations a week about products and services. Those conversations contain an average of 69 brand mentions. Top three categories: Food and Dining, Media and Entertainment, and Sports, Recreation and Hobbies.
2. Word of Mouth has Impact on Audience. On a zero to ten scale, 55% rated 9 or 10 on a 1 to 10 scale. 49% of people say they are likely to purchase a product that is recommended by a close friend.
3. Word of Mouth is mostly positive. 63% of brand references in world of mouth conversations are “mostly positive,” which is seven times the rate of “mostly negative” references (9%). Research also shows that positive word of mouth has more impact than negative word of mouth.
4. Word of Mouth is mostly face-to-face. 73% of marketing-related conversations take place in person. The remainders are phone (17%), e-mail (3%), text message (3%), online chatroom or blog (1%) and other (2%). This remains true across all age groups. Offline WOM is more credible, more positive and more likely to inspire purchase.
5. Half of WOM driving by media/marketing. Nearly 1 in 2 brand conversations refer to brand marketing or media. Consumers tend to take things they hear from traditional marketing mediums and use it in their WOM mentions. 50% of consumer brand conversations refer to marketing or media, lead by television (15%).
6. When it comes to conversation, not all consumers are created equal. One American in ten tells the other nine how to vote, where to eat, and what to buy. They are called the influencers.
Influencers:
10% of population accounts for 1/3 for all WOM.
60% more conversations each day.
90% more brand conversations.
They are leading indicators of consumer trends.
They are consumer advocates.
They are “market multipliers” – two to three times as likely to talk to others as the average consumer.
Eager to sign up for WOM programs and more than 3/4ths of influencers like to pass along info, discounts and ads for brand they like.
More than 3/4ths of influencers invite friends to events for brands they like.
2.5 times more likely to post reviews and ratings.
Reaching Influencers
· Find them in your database.
· Media planning tools are available to plan media efficiently. More active users of the internet and heavy users of print media.
· Many times, they will self-identify. Active participation on your website. They attend your events, and contact your call center. They also post reviews and ratings.
How marketing needs to change to maximize WOM:
· new marketing objectives
· Need to focus on things that are “talkworthy” campaigns that will create a buzz
· Better integration across marketing channels and disciplines.
· New channels, tools and techniques.
· Target influencers who are predisposed to recommend.
· Focus more on current customers, not just prospects.
Unleashing the Power of Word of Mouth
Plenary Speech
Monday, November 10, 2008
Recent example of great WOM marketing:
The Obama Campaign decided to announce his running mate via text messaging. That was the carrot to encourage people to sign up and provide their cell phone numbers to the campaign, which they used later to send out text messages to “get out an vote.” Those cell phone numbers were incredibly valuable to the campaign to set up their word of mouth campaigns.
3.5 billion brand impressions via word of mouth each day in the United States. Think about how expensive a brand impression is that you purchase via paid advertising.
Word of Mouth is the most influential touchpoint (from research done by AdvertisingAge). Word of mouth has more impact than any other touchpoint available.
What is word of mouth?
-people giving advice, insight and information to others in their own voice and in a natural, honest and genuine way.
Word of mouth marketing:
1. Encouraging word of mouth within a marketing objective.
2. Making it easy for consumers to spread the word about your brand
3. Making sure everything you do that touches the consumer is “TalkWorthy”
Word of Mouth Marketing Techniques:
Online: Online buzz, viral videos, brand blogging and brand communities
Offline: street teams, house parties, referral marketing, customer activation and CRM, WOM sampling and seeding, evangelist marketing (finding the 1% of your customer base who are evangelicals about your product and helping them spread the word)
Key Questions:
1. What’s your story?
2. Who will tell it?
3. How can you facilitate the conversation (tools you can create to help WOM)
6 Key Insights:
1. Americans like to talk. The average American engages in 105 conversations a week about products and services. Those conversations contain an average of 69 brand mentions. Top three categories: Food and Dining, Media and Entertainment, and Sports, Recreation and Hobbies.
2. Word of Mouth has Impact on Audience. On a zero to ten scale, 55% rated 9 or 10 on a 1 to 10 scale. 49% of people say they are likely to purchase a product that is recommended by a close friend.
3. Word of Mouth is mostly positive. 63% of brand references in world of mouth conversations are “mostly positive,” which is seven times the rate of “mostly negative” references (9%). Research also shows that positive word of mouth has more impact than negative word of mouth.
4. Word of Mouth is mostly face-to-face. 73% of marketing-related conversations take place in person. The remainders are phone (17%), e-mail (3%), text message (3%), online chatroom or blog (1%) and other (2%). This remains true across all age groups. Offline WOM is more credible, more positive and more likely to inspire purchase.
5. Half of WOM driving by media/marketing. Nearly 1 in 2 brand conversations refer to brand marketing or media. Consumers tend to take things they hear from traditional marketing mediums and use it in their WOM mentions. 50% of consumer brand conversations refer to marketing or media, lead by television (15%).
6. When it comes to conversation, not all consumers are created equal. One American in ten tells the other nine how to vote, where to eat, and what to buy. They are called the influencers.
Influencers:
10% of population accounts for 1/3 for all WOM.
60% more conversations each day.
90% more brand conversations.
They are leading indicators of consumer trends.
They are consumer advocates.
They are “market multipliers” – two to three times as likely to talk to others as the average consumer.
Eager to sign up for WOM programs and more than 3/4ths of influencers like to pass along info, discounts and ads for brand they like.
More than 3/4ths of influencers invite friends to events for brands they like.
2.5 times more likely to post reviews and ratings.
Reaching Influencers
· Find them in your database.
· Media planning tools are available to plan media efficiently. More active users of the internet and heavy users of print media.
· Many times, they will self-identify. Active participation on your website. They attend your events, and contact your call center. They also post reviews and ratings.
How marketing needs to change to maximize WOM:
· new marketing objectives
· Need to focus on things that are “talkworthy” campaigns that will create a buzz
· Better integration across marketing channels and disciplines.
· New channels, tools and techniques.
· Target influencers who are predisposed to recommend.
· Focus more on current customers, not just prospects.
Sunday, November 9, 2008
First blog from NAMP
Today was my first day at the National Arts Marketing Project Conference in Houston. I opted to come in a day early to participate in the pricing institute, and although they presented some interesting information, I feel like they condensed their overall presentation down so far to fit into one day that it lost some of its value.
I did have one insight and a good reminder today. The insight: at the pricing institute, we discussed values based pricing. What value do you bring to your customer, and the importance of comprehending, creating and communicating your value. However, Tim Baker (one of the presenters) said something that really resonated with me about organizations that do a lot of new work. He said "if the customer doesn't know the play they are going to see, it is extremely difficult for them to evaluate value, so the value equation must rest on the reputation of the institution." I took that sentence to read that if you want to do a substantial amount of new work, you must increase your institutional marketing to brand the institution because the customer cannot make a values based decision on a product that is unknown to them. This coincides with a main argument that Michael Kaiser makes in his new book The Art of the Turnaround. Mr. Kaiser's main mantra: good art, marketed well. And he says one of the major mistakes we make as arts marketers is concentrating too much on product marketing and not enough on institutional marketing.
I had dinner this evening with several respected colleagues, one of which being Kory Kelly, the new Director of Marketing and Communications at Actors Theatre of Louisville. Actors Theatre does quite a bit of new work, especially when it comes time for their Humana Festival of New American Plays. As a consumer, I don't have to know anything about the titles or the specific products because that festival is so well branded. I feel like I could buy tickets to any of the Humana Festival productions and see a high quality production. In this instance, Actors Theatre has done a great job of institutional marketing around the festival to boost sales for individual products.
I was also reminded today that you have to sell the experience. People don't buy the product in many cases, they buy the experience, and for many different reasons. At the pricing institute, we discussed the many "types" of values that one could assign to an arts experience including educational, spiritual, therapeutic, ritual, social interaction, and relationship enhancement values. The guy who purchases tickets to the opera for his girlfriend for a special night on the town purchases for relationship enhancement and ritual value (getting dressed up, heading out for a night on the town, etc). The parent who brings his teenager to see Death of a Salesman is probably looking for an educational value. I remember while living in London that if I was having a bad day, I would pop on over to RENT and purchase a 10 pound ticket to escape life. Even though I had seen the show numerous times, it provided me an escape from everyday life. We have to communicate the intrinsic and extrinsic values of our product by selling the experience.
Tomorrow I give my first of two presentations. So off to bed to get a good night's sleep...
I did have one insight and a good reminder today. The insight: at the pricing institute, we discussed values based pricing. What value do you bring to your customer, and the importance of comprehending, creating and communicating your value. However, Tim Baker (one of the presenters) said something that really resonated with me about organizations that do a lot of new work. He said "if the customer doesn't know the play they are going to see, it is extremely difficult for them to evaluate value, so the value equation must rest on the reputation of the institution." I took that sentence to read that if you want to do a substantial amount of new work, you must increase your institutional marketing to brand the institution because the customer cannot make a values based decision on a product that is unknown to them. This coincides with a main argument that Michael Kaiser makes in his new book The Art of the Turnaround. Mr. Kaiser's main mantra: good art, marketed well. And he says one of the major mistakes we make as arts marketers is concentrating too much on product marketing and not enough on institutional marketing.
I had dinner this evening with several respected colleagues, one of which being Kory Kelly, the new Director of Marketing and Communications at Actors Theatre of Louisville. Actors Theatre does quite a bit of new work, especially when it comes time for their Humana Festival of New American Plays. As a consumer, I don't have to know anything about the titles or the specific products because that festival is so well branded. I feel like I could buy tickets to any of the Humana Festival productions and see a high quality production. In this instance, Actors Theatre has done a great job of institutional marketing around the festival to boost sales for individual products.
I was also reminded today that you have to sell the experience. People don't buy the product in many cases, they buy the experience, and for many different reasons. At the pricing institute, we discussed the many "types" of values that one could assign to an arts experience including educational, spiritual, therapeutic, ritual, social interaction, and relationship enhancement values. The guy who purchases tickets to the opera for his girlfriend for a special night on the town purchases for relationship enhancement and ritual value (getting dressed up, heading out for a night on the town, etc). The parent who brings his teenager to see Death of a Salesman is probably looking for an educational value. I remember while living in London that if I was having a bad day, I would pop on over to RENT and purchase a 10 pound ticket to escape life. Even though I had seen the show numerous times, it provided me an escape from everyday life. We have to communicate the intrinsic and extrinsic values of our product by selling the experience.
Tomorrow I give my first of two presentations. So off to bed to get a good night's sleep...
Saturday, November 8, 2008
Just landed in Houston...
I just touched down at George Bush International Airport in Houston, and I couldn't help but think that I am pretty sure the celebratory atmosphere that I left in DC following the election of Barack Obama probably wouldn't be the same here.
I am in town for my fourth National Arts Marketing Project Conference, where I will be presenting two sessions, leading a round-table discussion and hosting a dine-around. A packed schedule, but I like it that way. I have met so many interesting people at this conference over the years.
A highlight of this year's conference is a convening of marketing experts from major regional theaters that I have been invited to on Monday, November 10. Jim Royce, Director of Marketing, Communications and Sales at Center Theatre Group and Rodi Franco, Director of Communications at the Alley Theatre are hosting the dinner. The group includes Alan Brown (WolfBrown), Mary Trudel (Wallace Foundation), Tim Baker (Baker Richards Consulting), Bil Schroeder (South Coast Rep), Linda Garrison (Steppenwolf Theatre), Anne Trites (Yale Repertory Theatre), Kory Kelly (Actors Theatre of Louisville), Chad Peterson (Northlight), Nella Vera (CTG) and myself representing Arena Stage.
The main topic of conversation will focus on how our institutions are addressing the current economic crisis. The group has agreed to let me blog about the conversation. I must say that I am incredibly excited to be at the table with this group of folks, and I hope some interesting ideas are floated.
Just today, two major opera companies announced huge changes that were blamed on the current economy. The NY City Opera announced that it has separated ways with its incoming artistic director Gerald Mortier, and the Washington National Opera announced that it has abandoned its plans to present the Ring Cycle next year. I have also heard from my colleagues around the nation at some of the largest theaters in the country that they are preparing to make substantial changes in their season. The first out of the box seems to be Seattle Repertory Theatre.
We are all in the same boat, so hopefully we can create an agenda to address this crisis together.
I am in town for my fourth National Arts Marketing Project Conference, where I will be presenting two sessions, leading a round-table discussion and hosting a dine-around. A packed schedule, but I like it that way. I have met so many interesting people at this conference over the years.
A highlight of this year's conference is a convening of marketing experts from major regional theaters that I have been invited to on Monday, November 10. Jim Royce, Director of Marketing, Communications and Sales at Center Theatre Group and Rodi Franco, Director of Communications at the Alley Theatre are hosting the dinner. The group includes Alan Brown (WolfBrown), Mary Trudel (Wallace Foundation), Tim Baker (Baker Richards Consulting), Bil Schroeder (South Coast Rep), Linda Garrison (Steppenwolf Theatre), Anne Trites (Yale Repertory Theatre), Kory Kelly (Actors Theatre of Louisville), Chad Peterson (Northlight), Nella Vera (CTG) and myself representing Arena Stage.
The main topic of conversation will focus on how our institutions are addressing the current economic crisis. The group has agreed to let me blog about the conversation. I must say that I am incredibly excited to be at the table with this group of folks, and I hope some interesting ideas are floated.
Just today, two major opera companies announced huge changes that were blamed on the current economy. The NY City Opera announced that it has separated ways with its incoming artistic director Gerald Mortier, and the Washington National Opera announced that it has abandoned its plans to present the Ring Cycle next year. I have also heard from my colleagues around the nation at some of the largest theaters in the country that they are preparing to make substantial changes in their season. The first out of the box seems to be Seattle Repertory Theatre.
We are all in the same boat, so hopefully we can create an agenda to address this crisis together.
Friday, November 7, 2008
Banking's New Version of Russian Roulette
Considering the current economic crisis, it is doubly troubling when you come across an article such as the one that appeared recently in the Business section of the New York Times. The article was titled, Drawing a Bead on Debtors, and it focused on how some banks and credit card companies are mining databases to pitch new loans to troubled borrowers.
The articles profiled the travails of Brenda Jerez, who in 2005 became ill with cancer and ran up $50,000 on her credit cards after she was forced to leave her accounting job. She filed for bankruptcy protection last year.
For months after she emerged from insolvency last fall, 6 to 10 new credit card and auto loan offers arrived every week that specifically mentioned her bankruptcy and, despite her poor credit history, dangled a range of seemingly too-good-to-be-true financing options.
Russian Roulette, as you well know, is like the art of suicide with a little Las Vegas odds thrown in. You load a bullet into one of the six chambers, spin the cylinder, hold the gun to your temple, pull the trigger and hope for the best. Only, in this banking version, all the cylinders have bullets.
The business practices outlined in the New York Times article is akin to giving a recovering drug addict a sample of cocaine or a recovering alcoholic a six-pack of beer. It's all about the next product sale--regardless of whether it has the underpinnings of the next tsunami in the economic crisis.
Singling out even struggling American consumers like Ms. Jerez is one of the overlooked causes of the debt boom and the resulting crisis, which threatens to choke the global economy.
Today, companies comb through an array of sources, including bank and court records, to create detailed profiles of the financial lives of more than 100 million Americans. They then sell that information as marketing leads to banks, credit card issuers and mortgage brokers, who fiercely compete to find untapped customers--even those who would normally have trouble qualifying for the credit they were being pitched.
Sound like the next financial minefield? Except in this case we are planting the minefield and throwing away the map.
I used to feel very proud to say I was part of the financial industry--first as a banker and now as a consultant. But today it is hard to put the words bank and trust in the same sentence without it sounding like an oxymoron. Unfortunately, for the majority of banks that operate with the utmost integrity, morality, and social consciousness, we all suffer from a little guilt by association.
That's why today, more than ever, the number one job for all banks is to reestablish that one-to-one trust with our customers, so they will then view us again as true partners that are looking out for their well being.
Trust me on this one.
Cheers,
Nick Vaglio
Thursday, November 6, 2008
Arena Stage's NEW DEAL
As the anemic economy lingers, I have gotten more and more questions, from press, board members and colleagues, about what I believe the impact will be of the worsening economic crisis. As I wrote in an earlier post, the honest answer is -- I don't know. Truth be told, the first several shows of Arena's season have performed on par with previous seasons, and Wishful Drinking was one of our best performing productions in the past decade.
That being said, I am not so optimistic about the future. Money is getting tight, and some of the most talented forecasters in the retail industry are calling for an incredibly rough holiday season.
As a preemptive strike, Arena Stage announced its New Deal program today. At its core is a huge one day only sale. For one day, Friday, November 14 from 12:00am until 11:59pm, Arena Stage will place 25,000 tickets on sale for $25 each, which represents 60% off regular ticket prices. I believe we owe it to our community to make ticket prices more reasonable during these times, and this is the program we have developed.
I also believe that we have to give customers a reason to buy, and buy now. To a lot of people, a great product is no longer enough -- they need a deal that they feel they can't pass up in order to purchase. In turn, I need them to purchase their tickets now far in advance for shows months away. I refer to this as my security blanket in case the economy gets worse--almost like a subscription in a way.
Round 1 begins...
That being said, I am not so optimistic about the future. Money is getting tight, and some of the most talented forecasters in the retail industry are calling for an incredibly rough holiday season.
As a preemptive strike, Arena Stage announced its New Deal program today. At its core is a huge one day only sale. For one day, Friday, November 14 from 12:00am until 11:59pm, Arena Stage will place 25,000 tickets on sale for $25 each, which represents 60% off regular ticket prices. I believe we owe it to our community to make ticket prices more reasonable during these times, and this is the program we have developed.
I also believe that we have to give customers a reason to buy, and buy now. To a lot of people, a great product is no longer enough -- they need a deal that they feel they can't pass up in order to purchase. In turn, I need them to purchase their tickets now far in advance for shows months away. I refer to this as my security blanket in case the economy gets worse--almost like a subscription in a way.
Round 1 begins...
Wednesday, November 5, 2008
What are you doing...
to prepare your organization for the economic downturn? More from my experience and Arena Stage later this week, but check out the following headlines:
St. Louis Arts Museum delays $125 million expansion:
http://www.stltoday.com/stltoday/entertainment/stories.nsf/entertainment/visualarts/story/4efc5e0a4a78af6a862574f90069fed1?OpenDocument
Oregon Shakespeare Festival runs into Money Crunch:http://www.statesmanjournal.com/apps/pbcs.dll/article?AID=/20081102/COLUMN0801/811020304/1083/COLUMN
NY City Ballet Cuts Season: http://www.saratogian.com/site/news.cfm?newsid=20186738&BRD=1169&PAG=461&dept_id=602469&rfi=6
A Rough Road Ahead for Broadway:
http://www.nytimes.com/2008/11/05/theater/05bway.html?_r=1&ref=arts&oref=slogin
Opera Pacific Closes Down:
http://www.ocregister.com/articles/opera-company-jones-2217667-pacific-county
Milwaukee Shakespeare Dies:
http://www.jsonline.com/entertainment/arts/33613864.html
CTG announces Entertainment Stimulus Package:
http://www.theatermania.com/content/news.cfm/story/15957
Arts Groups Dig in to Weather Economy:
http://www.courier-journal.com/article/20081102/SCENE05/811020317/1011/SCENE
Museums Hit Hard by Economy:
http://online.wsj.com/article/SB122533230729582915.html?mod=googlenews_wsj
DC Fundraisers Show Signs of Trouble:
http://voices.washingtonpost.com/reliable-source/2008/10/rs-harman29.html
St. Louis Arts Museum delays $125 million expansion:
http://www.stltoday.com/stltoday/entertainment/stories.nsf/entertainment/visualarts/story/4efc5e0a4a78af6a862574f90069fed1?OpenDocument
Oregon Shakespeare Festival runs into Money Crunch:http://www.statesmanjournal.com/apps/pbcs.dll/article?AID=/20081102/COLUMN0801/811020304/1083/COLUMN
NY City Ballet Cuts Season: http://www.saratogian.com/site/news.cfm?newsid=20186738&BRD=1169&PAG=461&dept_id=602469&rfi=6
A Rough Road Ahead for Broadway:
http://www.nytimes.com/2008/11/05/theater/05bway.html?_r=1&ref=arts&oref=slogin
Opera Pacific Closes Down:
http://www.ocregister.com/articles/opera-company-jones-2217667-pacific-county
Milwaukee Shakespeare Dies:
http://www.jsonline.com/entertainment/arts/33613864.html
CTG announces Entertainment Stimulus Package:
http://www.theatermania.com/content/news.cfm/story/15957
Arts Groups Dig in to Weather Economy:
http://www.courier-journal.com/article/20081102/SCENE05/811020317/1011/SCENE
Museums Hit Hard by Economy:
http://online.wsj.com/article/SB122533230729582915.html?mod=googlenews_wsj
DC Fundraisers Show Signs of Trouble:
http://voices.washingtonpost.com/reliable-source/2008/10/rs-harman29.html
Tuesday, November 4, 2008
The Five Myths of Training
What will separate the banking winners from the losers over the next 10 years? A leading management consultant says there are three factors: number one, training; number two, training; and number three, training.
You would think that all organizations and managers recognize the importance of training. But, they don’t. Why? I’ve found that managers and organizations fall prey to the five management myths.
Myth 1
“Our people are experienced. They don’t need to be trained.”
This myth begins with the organization or manager who says, “Our people don’t need to be trained. They are all old ‘pros’ who have years of experience.” But there is a tremendous difference between experience and competence.
Think about it. Imagine a professional football coach saying, “Our people are all experienced, so we’re going to skip training camp this year. We don’t need it.” How do you think that team would stand up against the competition? How long do you think the coach would keep his job?
Ask yourself this question. Do you think that business is the same today as it was 20 years ago? Of course not. Business is changing. Management is changing. Successful organizations don’t do business the same today as they did five years ago, or 10 years ago, let alone 20 years ago.
Myth 2
"We tried it and it didn’t work.”
I’ve heard executives say, “When Harley Hotshot came to town, we put half of our people through his training and they haven’t sold any more than the rest of the team.” There are two very important things to remember about training. Number one: training is not an event, it is a process. And number two: in order to be effective, training must be ongoing.
Training is a little like calisthenics. If you haven’t worked out for years, and you jump right into a heavy exercise program, you’re going to be uncomfortable. So whether you’re talking about training or calisthenics, if you do it occasionally you grow sore; if you do it regularly you grow strong
Myth 3
“Our organization (or department, or division) is too small.”
It’s important to understand that training is equally important for organizations of all sizes. Consider this. If an organization has one hundred people, and if one person is not operating at maximum capacity, that’s one percent of the entire organization. On the other hand, if an organization has just two people, it may be easy to rationalize “We can’t justify training” … but, if one of those two people is not operating at maximum effectiveness, that’s 50 percent of the entire organization. So, training is equally important to organizations of all sizes.
Myth 4
“We can’t afford it.”
This is a cop-out. If you think the cost of training is expensive, compare it with the cost of incompetence! In today’s service-oriented environment poorly trained staff will drive your customer’s right into the camp of your competition.
Myth 5
“We don’t have time.
This is an absolute exercise in self-deception. If you are like most executives, I’m sure you sometimes ask yourself, “Why is it we never have time to do it right, but always make time to do it over?”
The manager who says, “We’re so busy we don’t have time for training” makes about as much sense as the woodcutter who says, “I’m so busy cutting down trees, I don’t have time to sharpen my ax.”
Abraham Lincoln once said, “If I have three hours to cut down a tree, I’d spend the first two hours sharpening my ax.”
Now, let’s address a final point. How long should you continue training your staff? The answer is how long do you want your people to keep improving?”
Cheers!
Nick Vaglio
You would think that all organizations and managers recognize the importance of training. But, they don’t. Why? I’ve found that managers and organizations fall prey to the five management myths.
Myth 1
“Our people are experienced. They don’t need to be trained.”
This myth begins with the organization or manager who says, “Our people don’t need to be trained. They are all old ‘pros’ who have years of experience.” But there is a tremendous difference between experience and competence.
Think about it. Imagine a professional football coach saying, “Our people are all experienced, so we’re going to skip training camp this year. We don’t need it.” How do you think that team would stand up against the competition? How long do you think the coach would keep his job?
Ask yourself this question. Do you think that business is the same today as it was 20 years ago? Of course not. Business is changing. Management is changing. Successful organizations don’t do business the same today as they did five years ago, or 10 years ago, let alone 20 years ago.
Myth 2
"We tried it and it didn’t work.”
I’ve heard executives say, “When Harley Hotshot came to town, we put half of our people through his training and they haven’t sold any more than the rest of the team.” There are two very important things to remember about training. Number one: training is not an event, it is a process. And number two: in order to be effective, training must be ongoing.
Training is a little like calisthenics. If you haven’t worked out for years, and you jump right into a heavy exercise program, you’re going to be uncomfortable. So whether you’re talking about training or calisthenics, if you do it occasionally you grow sore; if you do it regularly you grow strong
Myth 3
“Our organization (or department, or division) is too small.”
It’s important to understand that training is equally important for organizations of all sizes. Consider this. If an organization has one hundred people, and if one person is not operating at maximum capacity, that’s one percent of the entire organization. On the other hand, if an organization has just two people, it may be easy to rationalize “We can’t justify training” … but, if one of those two people is not operating at maximum effectiveness, that’s 50 percent of the entire organization. So, training is equally important to organizations of all sizes.
Myth 4
“We can’t afford it.”
This is a cop-out. If you think the cost of training is expensive, compare it with the cost of incompetence! In today’s service-oriented environment poorly trained staff will drive your customer’s right into the camp of your competition.
Myth 5
“We don’t have time.
This is an absolute exercise in self-deception. If you are like most executives, I’m sure you sometimes ask yourself, “Why is it we never have time to do it right, but always make time to do it over?”
The manager who says, “We’re so busy we don’t have time for training” makes about as much sense as the woodcutter who says, “I’m so busy cutting down trees, I don’t have time to sharpen my ax.”
Abraham Lincoln once said, “If I have three hours to cut down a tree, I’d spend the first two hours sharpening my ax.”
Now, let’s address a final point. How long should you continue training your staff? The answer is how long do you want your people to keep improving?”
Cheers!
Nick Vaglio
Monday, November 3, 2008
Brilliant marketing
I know that I just posted a few minutes ago, but you MUST watch this. Starbucks marketing at its finest! Here's the link: YouTube Starbucks Video
The Real Financial Crisis
Some people have a knack for making profound statements with little effort. Nick Vaglio, the newest member of the MarketMatch team is one of those people. While stating the obvious, Nick said that the real financial crisis isn't the credit crunch or the housing bubble, it's the lost trust in their financial institutions.
He makes a good point. Think about it. Consumers are increasingly skeptical of the financial services industry and it is up to us to help ease their mind. Business Development Officers will need to reconsider their methods and become more like relationship managers than hunters and gatherers.
I know many of you have been communicating your safety and soundness to your communities, and that's GREAT! But we need to do more. When small businesses need help with their cash management they are going to their CPA's for guidance. Are those CPA's sending the referral to you or your competition? Building those networks will take a little time and finesse but will reap great rewards.
Just remember that we do not have the same fear our customers do because we understand. Plumbers don't worry about leaks and mechanics laugh at a bad starter. Remember that your customers are not bankers. Nurture the relationships and the rewards will be yours for the taking!
Remember to be extraordinary!!
Jenna
He makes a good point. Think about it. Consumers are increasingly skeptical of the financial services industry and it is up to us to help ease their mind. Business Development Officers will need to reconsider their methods and become more like relationship managers than hunters and gatherers.
I know many of you have been communicating your safety and soundness to your communities, and that's GREAT! But we need to do more. When small businesses need help with their cash management they are going to their CPA's for guidance. Are those CPA's sending the referral to you or your competition? Building those networks will take a little time and finesse but will reap great rewards.
Just remember that we do not have the same fear our customers do because we understand. Plumbers don't worry about leaks and mechanics laugh at a bad starter. Remember that your customers are not bankers. Nurture the relationships and the rewards will be yours for the taking!
Remember to be extraordinary!!
Jenna
Saturday, November 1, 2008
A Launch Strategy That Works
If you're about to launch a new product, book, website, or whatever and don't know where to begin – then you MUST read this...
After launching multiple products over my career, there's a proven formula that works every time no matter what the actual "thing" is you’re launching. In a nutshell, it’s coordination and synchronization of multi-channel marketing efforts.
These efforts include:
--Staggered emails. These will go to you list and other synergistic lists and aim to build anticipation and a "hot list" of names before your launch. These names will then have potential to be your top buyers.
--Social media. Putting posts on blogs, bulleting boards, forums. Recording a video of yourself and posting it on YouTube. Ultimately, creating messages that have the potential to go viral.
--Pay per click. Bidding on your relevant keywords and having a mechanism and offer to collect names and build your hot list.
--Online PR. Getting your message out quickly and cost effectively. The release will get picked up by blogs, media websites, industry websites, and online news aggregators (such as Yahoo and Google) and not only increase awareness, but also give you backlinks (SEO!) as well as have the potential to go viral.
--Editorial and Article Syndication. Write articles for print and online media about the topic that ties into your launch.
All of these efforts build up slowly and culminate the day of your launch. You’re basically building momentum, that will pay off with traffic and buzz about your product.
***************************************************************************
Editor's Note:
I've been getting many emails from readers asking me about social media and how they can measure their activity. Having an Internet marketing, direct response and PR background, I find the following helpful when assessing my efforts:
Look at the "3 O's"—Outputs, Outcomes and Objectives.
Outputs measures effectiveness and efficiency, such as new subscriber sign-ups and spikes in Web site traffic during your campaign. And it measures analytics, such as referring Web site sources, visits, unique visits and visit percentages.
Outcomes measures behavioral changes such as internal customer/subscriber feedback (calls, e-mails, forum postings) on your Web site, as well as external reputation monitoring or visiting targeted chat rooms during your campaign looking to see the "buzz."
Objectives compare direct product sales during the time of the campaign to other sales that occurred before the campaign. So it establishes a baseline, giving room for sales assumptions tied to your effort.
I also use the following tools:
Google Analytics
-Check the “referring sources page” to see how much traffic was generated by LinkedIn.
-Look at overall traffic to website during same time period of your effort.
-If you have a sign up/email form, look for lead spikes during time period of your effort.
Google Alerts
-Set alert for your name, your company name, and keywords in your content. You’ll get notified via Alert if content/your messagegets picked up and goes viral.
Backlink Checkers
-Google Webmaster Tools - Check back links going to site during same time period of your effort.
-Link Popularity Check - Link popularity analysis is one of the best ways to quantifiably and independently measure your website's online awareness.
Sample free tools:
http://seopro.com.au/free-seo-tools/link-checker/ http://www.iwebtool.com/backlink_checker
http://www.backlinkwatch.com/index.php
After launching multiple products over my career, there's a proven formula that works every time no matter what the actual "thing" is you’re launching. In a nutshell, it’s coordination and synchronization of multi-channel marketing efforts.
These efforts include:
--Staggered emails. These will go to you list and other synergistic lists and aim to build anticipation and a "hot list" of names before your launch. These names will then have potential to be your top buyers.
--Social media. Putting posts on blogs, bulleting boards, forums. Recording a video of yourself and posting it on YouTube. Ultimately, creating messages that have the potential to go viral.
--Pay per click. Bidding on your relevant keywords and having a mechanism and offer to collect names and build your hot list.
--Online PR. Getting your message out quickly and cost effectively. The release will get picked up by blogs, media websites, industry websites, and online news aggregators (such as Yahoo and Google) and not only increase awareness, but also give you backlinks (SEO!) as well as have the potential to go viral.
--Editorial and Article Syndication. Write articles for print and online media about the topic that ties into your launch.
All of these efforts build up slowly and culminate the day of your launch. You’re basically building momentum, that will pay off with traffic and buzz about your product.
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Editor's Note:
I've been getting many emails from readers asking me about social media and how they can measure their activity. Having an Internet marketing, direct response and PR background, I find the following helpful when assessing my efforts:
Look at the "3 O's"—Outputs, Outcomes and Objectives.
Outputs measures effectiveness and efficiency, such as new subscriber sign-ups and spikes in Web site traffic during your campaign. And it measures analytics, such as referring Web site sources, visits, unique visits and visit percentages.
Outcomes measures behavioral changes such as internal customer/subscriber feedback (calls, e-mails, forum postings) on your Web site, as well as external reputation monitoring or visiting targeted chat rooms during your campaign looking to see the "buzz."
Objectives compare direct product sales during the time of the campaign to other sales that occurred before the campaign. So it establishes a baseline, giving room for sales assumptions tied to your effort.
I also use the following tools:
Google Analytics
-Check the “referring sources page” to see how much traffic was generated by LinkedIn.
-Look at overall traffic to website during same time period of your effort.
-If you have a sign up/email form, look for lead spikes during time period of your effort.
Google Alerts
-Set alert for your name, your company name, and keywords in your content. You’ll get notified via Alert if content/your messagegets picked up and goes viral.
Backlink Checkers
-Google Webmaster Tools - Check back links going to site during same time period of your effort.
-Link Popularity Check - Link popularity analysis is one of the best ways to quantifiably and independently measure your website's online awareness.
Sample free tools:
http://seopro.com.au/free-seo-tools/link-checker/ http://www.iwebtool.com/backlink_checker
http://www.backlinkwatch.com/index.php
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