Tag Archives: Small Business

The Age of the Customer®, Part 2: The new Field of Dreams business strategy

May 15, 2014 11:05 am ,
Photo courtesy of Archer Creative

Photo courtesy of Archer Creative

In the movie, Field of Dreams, the lead character, Ray Kinsella, is a corn farmer who hears a voice that causes him to do strange things.

Kinsella, played by Kevin Costner, first hears the voice say, “If you build it, he will come.” And even though Kinsella doesn’t yet know who “he” is, he determines that “it” is a baseball field, which he actually builds, and which, incredibly, attracts a bunch of formerly-dead major league baseball players.

Field of Dreams is a wonderful feel-good movie, best enjoyed by suspending all attachment to reality.

Unfortunately, some entrepreneurs believe what I call the Field of Dreams Myth, which is, “If I build it, they will come.” They think that by merely building “it,” which is a business, not only will “they,” the customers, come, but will consistently do so and in sufficient numbers to ensure success.

This will be on the test:  In the 21st century Age of the Customer, “If I build it, they will come,” is a fantasy and the business equivalent of a death wish.

Any questions?

The Field of Dreams strategy has never been an intelligent way to start a business. It’s always been prudent to identify how big the competitive pie is that’s being carved up by current participants, plus how prospective customers will accept the entry of your product or service into the marketplace. In the 20th century, it wasn’t difficult to identify all your competitors, which you could probably count on your fingers. Today you couldn’t do it with a supercomputer.

Every day of the 21st century, our customers have a virtually infinite number of purchasing options through the many competitive models in the traditional marketplace, plus the innumerable options available online. So as you develop your 21st century business strategy, the Field of Dreams voice in your head should be saying:

“If I build it, customers will only come the first time if I clearly and quickly identify what’s in it for them.  And even then, they won’t come back unless I make sure their experience is so exceptional that they choose to forsake all other options.”

There is one message the voice in Ray Kinsella’s head told him which tracks perfectly with our 21st century Field of Dreams business strategy.  When Kinsella was up against his most challenging obstacles, the voice said, “Go the distance.”

You must go the distance to determine who your customers are, what they want, why they’re doing business with you today and what they require to come back tomorrow.

Write this on a rock… Go the distance with what customers really want.

Posted in: Age of the Customer, Business Ownership , Tagged: , , , ,

The Age of the Customer®, Part 1: Can social media be dangerous?

May 14, 2014 11:04 am ,
Infographic courtesy of Digital Sherpa.

Infographic courtesy of Digital Sherpa

Can social media actually be dangerous to your small business? Absolutely.

“Blasphemy!” you cry. “Heretic!” you say.

Guilty as charged. Remember, Martin Luther was a heretic with a blasphemous message. Today’s heretic might be tomorrow’s prophet.

Being successful with any of the social media communities is as easy as falling off of a log – for individuals; but for small businesses – not so much.

The goals of these two groups are very different: Individuals use social media primarily to connect and share. Businesses participate in social media communities to pursue a marketing strategy in these target-rich environments.

For professional services providers, like consultants, trainers, writers or any venture that sells information and ideas, social media is pretty intuitive, completely logical and often highly effective. But many classicMain Street small businesses, like a restaurant, dry cleaners, contractor, etc., often struggle to create an effective social media strategy.

Unfortunately, some business owners, especially start-ups, get caught up in the social media whirlwind and, since it’s all the rage, actually believe that spending time “connecting” online will cause sales dollars to roll in. This is where the danger lies because social media activity can become a thief that steals time from effective marketing practices.  Effective means those strategies that are known to result in sales.

Even so, social media, with all the attendant sites and applications, may be a craze, but it isn’t a fad. It is real, and it will last. And just like the evolution of websites, in time businesses will figure our how to use social media as an effective tool. But for the time being, some businesses have figured it out, while many are still uncertain about how to produce a social media return on investment.

In order to actually have a social media strategy that isn’t dangerous, practice both/and rather than either/or. Continue to execute your traditional marketing strategy, while simultaneously getting involved in and learning about the 21st century social media universe.

Get a Facebook page and use it, but don’t live there. Acquire a Twitter and do some following, but don’t get sucked into the time drain. Link up on LinkedIn, but don’t forget to unlink.

Allow me to demonstrate that I’m an equal opportunity heretic: As obnoxious as it may be today, social media will increasingly become a significant element of any successful small business marketing strategy.

Write this on a rock… Use social media like any other business tool — prudently.

 

Posted in: Age of the Customer, Online Content, Social Media , Tagged: , , , ,

Customers now co-own your brand message

May 9, 2014 11:30 am ,

As previously revealed in this space, the Age of the Seller is succumbing to what I’ve named The Age of the Customer®. In this new Age, control of the relationship between Seller and Customer has shifted to the latter.

This paradigm shift is largely caused by online platforms that are: 1) increasing the access customers have to information about Sellers and their products; 2) allowing customers to express and share what they’ve learned about and experienced with a business.

Your-Brand-Lives-Here1The first element above has created what I call, the “Moment of Relevance™,” where customers have access to virtually all the information they need before you know they’re interested, and prospects are similarly informed before you even know they exist. Such access to information is changing—or disrupting—the way you market to and connect with customers, as well as how you train sales people. Plus it demonstrates why your greatest danger in The Age of the Customer isn’t being uncompetitive, it’s becoming irrelevant.

To some, the second element looks like the new kid on the block. But it’s actually the new iteration of an ancient marketplace maxim that describes the practice of word-of-mouth: “If you make customers happy they will tell someone; if you make them unhappy they will tell 10 people.” The theory behind the 1:10 ratio is that all businesses, regardless of size, are motivated to perform, or risk a marketplace indictment by the judge and jury of word-of-mouth.

In the new Age, online platforms have caused word-of-mouth to transmogrify into a powerful dynamic called “user generated content,” aka UGC. This is when customers post their experiences, questions, praise or condemnation about a seller’s products, services, and general behavior in the marketplace. In the vernacular, it’s word-of-mouth on steroids.

Indeed, if the word-of-mouth maxim were coined today it would sound like this: “Customers may post their opinions online—positive or otherwise—about your business, making it available potentially to millions.” To paraphrase Mark Twain, comparing word-of-mouth to UGC is like comparing a lightning bug to lightning.

In The Age of the Customer, two of the new things every business must do are: 1) anticipate that customers are already well informed; 2) track and respond to UGC about your business. And how well you do these two will influence whether the new customer control becomes a handy lever to growth, or a disruptor that makes you irrelevant.

It’s the Age of the Customer—are you prepared for the Moment of Relevance?

Posted in: Age of the Customer, Branding , Tagged: , , , ,

Your values and customer communities

May 8, 2014 11:30 am ,

Last time we talked about focusing on developing customer communities as a way to find relevance through your online strategy, including website and social media. Now let’s strengthen this relevance by focusing on values.

ONLINE_SHOPPING_toppick_cropIncreasingly, prospects will turn into customers, and customers will become loyal, because they’re attracted to what your company stands for. They are looking for evidence of your values in your online elements. For example:

1.Are your brand elements – brand promise and image – all about you and your stuff, or do they sound like something that would benefit your customer community?

2. When delivering information to the community, is it all about you, or does it contribute to helping customers?

3. What is the tone of your marketing message? “Tone” is how brand messages are incorporated as you serve the community, from crassly commercial to almost subliminal. You should strike a tone balance between making a sale and serving the community.

In a world where everything you sell is a commodity, value – product, price, service – is the threshold of a customer community, but values are the foundation. Anyone can find value, but when customers like your values, they tell their friends. Indeed, the most dynamic and potentially viral element of any online community is the feeling members have about your values. But remember, that “feeling” can go either way – positive or negative.

Here are a few guidelines for establishing compelling values online that match your values offline:

1. Acquire and use the technology that makes online community building possible.

2. Create an environment where an online community can flourish around the value you deliver and the values you demonstrate.

3. Serve and protect your customer community, while accepting that you cannot control it. As customer members come and go, and say what’s on their minds, maximize the positive and repair the negative.

Once community members find your value and like your values, prospects will turn into customers and customers will turn into your best salespeople.

Write this on a rock…

Build and serve customer communities by delivering value and demonstrating values.

Posted in: Age of the Customer, Customer Care, Online Content , Tagged: , , , ,