Ever since Chris Anderson published “The Long Tail” it’s been argued about. Anderson himself is still trying to redefine what the market is- and how it’s measured. Does Netflix count as part of the category “video rental stores” or not. You can read some of his analysis in this article- where he takes some time to talk about the poor debunked Italian mathematician Vilfredo Parteto:
I am as guilty as, well, nearly everyone else of sloppily defining the “80/20 Rule” to mean whatever I want. Pareto’s principle really is an all-purpose widget, broadly applicable to almost anything humans do (and, of course, the behavior of atoms in a Bose-Einstein condensate)…
The general articulation of the principle is: “for many phenomena 80% of consequences stem from 20% of the causes.” (Vilfredo Pareto [shown] first articulated this in 1906 when he noticed that 80% of the property in Italy was owned by 20% of its population).
In a world of category killers- and mega stores like WalMart- the small business has to work harder to find and define the scraps left over of which to build a business model on. When almost any commodity can be sourced at the touch of a button, service has become the number one way of differentiating your business.
There is hope to be found in finding the niche that 20% of the market needs filled. Not every hit has to be a homerun for your business to build and grow, just one thing becomes essential- making sure you are able to come in first with top of mind awareness for your little bit of the pie.
Businesses that can tell their story better, can connect with a small segment of customers well- that have figured out that infinite choices are too many- that they want to do business with people they know best- those are the ones that have a chance.
We’ve been watching a small old Wympee building that seats 35 at most- be turned into a hipster dive, by focusing on a message that big can’t own- that their food is local, organic and fresher than anything anyone else can provide. In the highly competitive market where size seems to matter, being small is working as a competitive advantage.
Thinking in terms of the 80/20 rule- it doesn’t matter if 80% of your business comes from 20% of your customers- as long as you have enough customers to make your model work.
Personality has been used in marketing for a long time- what would Frosted Flakes be without “Tony the tiger” or Michelin would just be another tire company without Bibendum- or Nike without it’s celebrity athlete endorsers. Apple owns cool design, as do Oxo, Good Grips, Alessi, etc. The brand Craftsman stands for lifetime warranty and strength. We’ve infused brands with personality for years- but, the company- the people, from the way your employees answer the phone- to what they wear- to your packaging- what does it say about your company.
For a long time- we were afraid to show emotion- to have a face- being faceless was synonymous with being big- and everyone wanted to be big. Oh, we’d always be careful to be multi-cultural and politically correct- to the point of boredom, but- finally, companies like Virgin, Google, Zappos, Southwest all broke the mold and let people be people again.
I highly recommend the book “Personality not included” by Rohit Bhargava from Ogilvy. The Cliff’s note version:
Chapter 1 – Faceless used to work because big meant credible. This is no longer true
Chapter 2 – Accidental spokespeople are speaking for your brand – Embrace them
Chapter 3 – Uniqueness plus Authenticity plus Talkability equals personality. Use the UAT Filter
Chapter 4 – Backstories establish a foundation of credibility. You need one.
Chapter 5 – Fear of change leads to barriers. Finding your authority overcomes them
Chapter 6 – Personality moments are everywhere and unexpected, but you must spot them
The more we learn about building brands at The Next Wave- the more we’re convinced of two things, that this book keeps hammering home- the old adage that “People do business with people they like” is foremost- and, brand loyalty has to be earned everyday- and that the costs of acquiring new customers is so much greater than keeping existing ones- that doing things that create the love (talkability) should be a key part of every companies brand strategy.
What kind of tools do you have to keep close to your customers? What do you do to “Create Lust • Evoke Trust” in your company? Are your ads just beating your chest- or are they sharing your secrets sauce? What makes your company interesting?
If you are struggling with these questions, read Rohit’s book- and then give us a call. We’d love to discuss it with you.
“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
Yet, time after time we see companies trot out responses to competition that aren’t much different than the competition. Witness the box like car pioneered by the Scion Xb, then the Honda Element, and now the Nissan Cube. Honda misjudged the primary market so badly for the Element- thinking young hipsters would be the primary market- and it ended up being a car for the practical geriatric set (don’t worry, Chrysler had the same experience with the PT Cruiser).
And then there is a crazy inventor named James Dyson. The man who made 5,127 prototypes before coming up with the vacuum that doesn’t lose suction as it does its job. Not only did the vacuum work better- it also looked better- bright yellow, in a land of beige and brown. It also proudly displayed your dirt- something other vacuums were skittish about.
He was able to charge a premium for his product, not because of better marketing, but because he had built a better product. How many times would I rather get a better product than a better advertising pitch: it’s a no brainer, every time.
Dyson Air Blade hand dryer
But the key to the Dyson brand is that they’ve continued to offer products that don’t look or act like other products. Just adding a ball to the vacuum wasn’t enough, next came the hand dryer- the “Air Blade” the scraped the water off your hands with one simple swipe through a wall of super fast air. It cut the time to dry hands by a third compared to other air dryers.
Now, Dyson introduces a fan- like no other. And, while the fan looks different, works different, it also solves a major safety issue (which I only found out once I tweeted about it- and a friend instantly retweeted- kid safe, no fan blades).
Dyson Air Multiplier fan
Sure it costs about 10 times more than the fan you can get at the local superstore, but, that’s what real innovation does- it gives a business a distinct competitive advantage. Here is the description from Dyson:
The Dyson Air Multiplier™ fan works very differently to conventional fans. It uses Air Multiplier™ technology to draw in air and amplify it 15 times, producing an uninterrupted stream of smooth air. With no blades or grill, it’s safe, easy to clean and doesn’t cause unpleasant buffeting.
Sure, Burger King has seen 20 consecutive quarters of same-store-sales-growth since it finally hired an ad agency that “gets it” (Crispin Porter + Bogusky) and then let them do their thing.
Of course for that to happen, you also need a Chief Marketing Officer who “gets it” and it seems Russ Klein has some pretty good insight on what to green light:
Mr. Klein: “Whopper Freakout” was a great example of tension and the way deprivation affects the way someone who is a loyal Whopper fan. We try to make all of our briefs hinge on some sort of social or anthropological insight that’s charged up with tension. It’s not like we’re trying to set our hair on fire to get tension.
The line that we put in bold italics should be on a big sign above any marketers desk. It’s much easier to get an emotional response to something that’s already got emotions attached.
No one cares about your nifty new twist on your features, advantages or benefits- no, they want to know what’s in it for them- in a way that makes them lust for your product and trust your company.
Interestingly enough, the article on the other side of the spread was “Why emotional messages beat rational ones.” This quote sums it up nicely:
What the data show us is that emotional campaigns are almost twice as likely to generate large profit gains than rational ones, with campaigns that use facts as well as emotions in equal measure fall somewhere between the two.
It turns out that emotional campaigns in general generate a wider range of desirable business effects, each of which plays its part in improving profitability. But they excel in one noteworthy area: reducing price sensitivity, and hence strengthening the ability of brands to secure a premium in the marketplace (or, in the current economic climate, to hold firm on pricing).
To create messages with meaning, start looking at what decisions a buyer has to make to choose your product, and think of how it fits into the rest of their life- then find what makes them uncomfortable and make it engaging or funny- be it the complexity of a car- broken down into the parts that go together like the Honda Cog ad they point to in the second article or the “Whopper Freakout” campaign. Either way- you’ll get more interest, which should translate into more sales.
It was Sears, that first got it right when it came to presenting product options. They had “good” “better” and “best” and that was all you needed to make up your mind.
I recently went to Sony’s site to look at 37″ flat screen televisions- so that I could figure out which one was right for me- and I came back more confused than when I started. This is bad news for any marketer, because if it’s not clear what you are selling, the customer will find someone else quite literally at the touch of a few keys.
There are some fundamental things that go into making a buying decision- and just being part of the evoked set these days is a major accomplishment. Remember that your brand lives outside the world you control, so you have to make it really easy for people to talk about your products. Need an example: look at Amazon.com. So many people go there for reviews before going to the “professionals” to make their buying decisions- so it behooves you to have your products there if possible.
I don’t know how many sites I’ve been to where it’s impossible just to link to a single product info page- very annoying for anyone who wants to write about the widget they just bought and love. Make sure you make it easy for social media to link back- and even better, give them the opportunity to build links on your site back to theirs- it’s called sharing the love.
Complex product matrices make sense to your brand managers, but often leave the consumer scratching their head. Think it’s just in high-tech? Nope, same problem with a local restaurant. They had a great brand, the name of the place- but as they grew, they added a coffee shop/cafe (first brand extension) then a “Jazz room” - second brand extension- and before long, you needed a tutor just to decide where to sit and what to eat. Keep it simple, stupid still applies.
If you need yet another example, go compare Dell.com and Apple.com to try to pick a laptop. Guess which one makes ease of buying a priority? You don’t even have to go to know the answer. Simplicity in product offerings and clear differentiation is more important than ever. Make sure you don’t over think your offering, because your customer won’t.
. So many people go there for reviews before going to the “professionals” to make their buying decisions- so it behooves you to have your products there if possible.){kind=link}