Monthly Archives: September 2018

Teshuva 2018

It’s Yom Kippur, the holiest day of the Jewish year.  This was a post from several years ago.  As I read it over, looking for inspiration for something to write on the subject of change and business based on the holiday, I realized that I had expressed my thinking pretty well in the earlier post.  Those of you who celebrate the holiday are probably not reading this until sundown (I scheduled this yesterday in keeping with the spirit of not working on the day). Whether you do or don’t celebrate, I hope you’ll take a moment to reflect.

Yesterday was Yom Kippur, the holiest day of the Jewish year. For those of you unfamiliar with the holiday, it concludes the 10 day period at the start of the Jewish calendarRosh Hashanah – head of the year – during which all Jews are supposed to reflect upon the past year and examine how they’re going to change their lives going forward. One also seeks forgiveness from those against whom he has transgressed – both those of this earth and higher powers. There is a lot of other imagery connected with the period – inscription in the Book of Life being a big one – but I think there’s something each of us can take as a business lesson in a non-denominational way.

We all get off track.  Sometimes it’s in little ways like eating badly or drinking too much.  Sometimes it’s in big ways like alienating our families or hurting friends who love us.  The concept in Judaism of repentance is called Teshuva which means “return”.  I love the notion of coming back to one’s self as well as to the basic human tenets that are common to all religions and peoples.

We can take a period of reflection and “return” in our business lives as well.  The most obvious way is for us as individuals. Who have we alienated this year?  What client have we taken for granted?  But it a bigger opportunity.  How has the business diverged from the mission?  Why have we stopped getting better and are just marching in place?  What can we be doing to grow our people but are ignoring?

We ask those kinds of questions from time to time, but I guess I’m suggesting that it become a more formal process.  Set aside a period every year for “return” thinking.  A period of repentance?  Maybe, in some cases.  But in all cases a chance to change.  A chance to regret past bad actions and to vow not to repeat them.  Most importantly (this is true in the religious sense as well), to correct the transgression.  To apologize.   To make restitution.  Whatever is right and lets everyone move forward with a clear conscious and a vow to do better.

Sound like a plan?

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Filed under Thinking Aloud, What's Going On

You’re The Customer Too, Dummy

We haven’t had a screed in a while in which I point out the on-going silliness of many of us in marketing, so let’s start the week with one! There was an article in the eMarketer newsletter about a recent study. I’m just going to quote it directly:

In an August 2018 survey of 103 ad agencies, publishers and marketers in North America conducted by Pressboard, 27.2% of respondents said they use an ad blocker to block ads on the websites they visit. These figures are similar to those found in the general population. According to eMarketer forecasts, 25.2% of US internet users will use an ad blocker in 2018.

Pressboard’s research showed that advertising professionals are more likely to rely on their friends than on ads when they decide whether or not to purchase a product. Nearly eight in 10 respondents (78.6%) said that word-of-mouth from friends influenced their recent purchase decision. Just fewer than 16% of those surveyed reported making a purchase after being influenced by banner ads.

I hope you can see immediately why this precipitated my response. It’s might be easy to shrug this off. I mean, what does it really say? Marketing and advertising professionals are humans too? How is that a surprise? Well, it’s not, but it does point out a fundamental problem. Apparently, when they put on their business hats and get to work they forget how they feel as consumers. After all, if they react badly to banner ads and rely more on word of mouth, why do they persist in figuring out how to invade the consumer’s website use in as many ways as possible? They use ad blockers because, to paraphrase Barry Goldwater’s campaign slogan, in their hearts, they know it’s right. The state of web marketing is akin to that of an Arabian bazaar or a NASCAR driver. Ad blockers at least make the web tolerable.

The message to any of us is that we’re customers too. We need to think like customers and not as marketers when we’re figuring out the best ways to interact with our audiences. How can we solve their problems? How can we deliver information that’s useful to them and not just scream at them? Keep that in mind and not only will your customers be better off, but you will be as well. Make sense?

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Everyone’s Got A Deal

A very wet Foodie Friday here but that won’t deter me from posting a few thoughts about what I think is a post-value world. What I mean by that is that value seems to be more of a given today that it did a few years ago. I also hope by now you’ve learned the difference between value and cost because your customers certainly have.

In the food business, you see this playing out in spades. Everyone has a deal, whether it’s $1 menu items or $5 foot long subs or free cheeseburgers from using an app to order. I suspect that many of these items are loss leaders. They certainly can’t be maintaining the margins which are already slim in the restaurant business. They’re designed to build traffic and that traffic will buy other, more profitable items.

The problem with this is the restaurant business is one where the supply has outstripped the demand. Chain restaurants are growing faster than the overall population and there aren’t enough hungry folks out there to support them all. Because deals are so prevalent, it actually frees the consumer to decide if they place more value on the price of the meal or if they value higher quality ingredients or better service or just the overall dining experience an establishment offers. More often than not these days, the price is less of a concern. Why? Because everyone’s got a deal!

What does this mean for your business? It means you’ve got to continue to get beyond thinking about cost in terms of how your customer values your product or service. The health of the business depends on more than a lot of customers. Fewer, more profitable customers seem better to me than a lot of slim-margin ones. Ask K-mart, whose profitability peaked in 1992,  if the low-margin, high volume strategy can work over the long term. Someone can always compete on price (Walmart).

The “deal” I try to offer to my potential clients is the highest level of value. That value is defined in THEIR terms, not mine. If all they’re after is a low price, I’m probably not going to be working with them. If what they want is a profitable result that advances them to their goals, well, that’s my deal. What’s yours?

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Filed under Consulting, food, Thinking Aloud