Category Archives: Consulting

Mowers And Marketing

I bought an electric lawn mower this morning.  It runs on a rechargeable battery and it is both incredibly light and much quieter than the old gas-powered thing we’ve had for decades.  That it’s more environmentally friendly goes without saying – no fumes means no pollutants.  Yes it was a higher investment cost initially but over time it will just as cost-effective to cut the grass as with the old thing.

Obviously I didn’t just grab the first mower of this type I spied.  I went to the internet to do research and there was lots of information about battery-powered mowers generally and every model specifically.  That’s not news to you but it reminded me of a few points that might be applicable to your sales efforts so let’s review.

First, the single most important information upon which I relied was user reviews.  Putting together a list of the purchase candidates was relatively easy – I just searched for “battery-powered lawnmower reviews” and found a few professional sites that had side by side comparisons of features.  As an aside, most of these contained affiliate links to purchase the mowers which reminds us that having an active affiliate program is something every online seller needs.  Once I had sorted out my choices down to my three top candidates I went to Amazon to read reviews.  Any mower without at least a dozen recent reviews became a questionable choice in my mind.  Why rely on real people rather than the professionals?  Both because of much higher volume and due to the fact that I have no way of knowing who is being paid to say nice things (thanks, content marketing…).

That activity is typical.  A Bazzarvoice study looked at how reviews can impact sales and return on social media investment.  You can read it here.  The big takeaway is you must get users to write reviews.  They help with search results (SEO benefits) as well as with conversion:

As the number of reviews ticks higher, businesses start to see increases in the conversion rate. Just one review can increase the conversion rate by 10 percent. At 100 reviews the conversion rate can be boosted by up to 37 percent, and by the time there are 200 reviews, the rate can be boosted as much as 44 percent.

The fact that these reviews exist is just as important as what they say, as it turns out.  They add authenticity, and in addition to the types of ROI already discussed, authentic content also positively impacts overall consumer trust in a brand. Even negative reviews (which you MUST NOT edit or delete) can help.  I found many of the one or two star reviews were based on some nit or an unrealistic expectation (no, the battery doesn’t last for three hours before it needs recharging).

The only thing the folks at Home Depot won’t understand is how I came to choose their store and that model.  They have no clue how I did my research and the folks at Amazon won’t understand why I did all this research and never bought (their prices were hundreds of dollars too high).  That cross-channel measurement is a much longer topic but it’s a critical missing link in much of our marketing.

Think about your last major purchase.  Did it flow something like mine?  How are you serving all the folks who are doing their research right now?  How are you encouraging  reviews and getting them front and center?  Make sense?

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Coffee, Burned

Foodie Friday has come around again and this week it brings us coffee. The folks at Keurig manufacture coffee makers and the pods that hold the coffee itself. They had an earnings call the other day and it brought out some very valuable lessons for all of us. Keurig’s financial results were not good and their stock has been hammered subsequent to the announcement. That’s not so instructive but the reasons why certainly are.

You might have one of these machines. If you do, you’re aware that the pods are both very expensive and not particularly earth-friendly. As what I consider to be a consumer-friendly nod to that, Keurig also makes a little reusable pod that you can fill with your favorite coffee. It’s less expensive, I find it makes better coffee, and the coffee grounds are the only trash. Of course if you want to go the single use pod route, there are lots of sources for them other than the “official” Keurig partners.

Keurig introduced its new flagship machine recently and there were some changes. First, the machine would only accept “official” Keurig pods – sort of Coffee Rights Management. The interwebs quickly figured out how to bypass this but the fact that it was deployed at all demonstrated Keurig’s thinking. Next, the reusable pod doesn’t fit in the new machine nor has Keurig made one. You MUST buy disposable pods.

Why would Keurig do this? Simple – the profit margin on the pods is huge. The results? Sales of coffee machines and accessories are down 23% in the last year and Keurig was forced to lower its 2015 sales forecast. Oops.

Of course, it’s not Keurig’s fault, at least not in their minds. “Some of this was due to consumer confusion around pod compatibility.” That’s the CEO on the earnings call.  OK, we’re dumb, but at least you admit you were too:

…we took the My K-cup away and quite honestly we’re wrong. We missed, we didn’t – we underestimated, it’s the easiest way to say, we underestimated the passion that consumer had for this. And when we did it, and we realized it, we’re bringing it back because it was we missed it.

The lessons are pretty apparent.  Don’t build your business around a plan that conflicts with your customers.  If they like a product, make it better or less expensive, or both.  Don’t take it away because you think it might improve your profits.  When something you’ve done isn’t accepted or working the way you planned, alluding to “consumer confusion” without admitting you caused it is narcissistic.  Frankly, for many people I know their morning K-Cup is not consumed with a desire for great coffee – it’s fast, it’s convenient, and they get over their guilt about polluting by the time they race out the door.  Getting those people angry by taking away choice in what they put into the machine isn’t growing the business – quite the opposite.

No business can overcome crappy product reviews (the new machine failed miserably) and consumer resentment over less choice.  Keurig’s results demonstrate that very well.  Any questions?

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Filed under Consulting, food, Huh?

Reading The Words, Missing The Meaning

Let’s start today thinking about a language you don’t speak. It’s very possible, assuming that it’s written using the Latin alphabet, that you could pick up a book and begin to read out loud in that strange tongue. Of course, you’d have absolutely no idea what you’re reading. You can say the words on the page but you can’t explain what they mean.

Keep that image in mind as we change the topic to data. I can’t tell you how many times I’ve sat with clients and gone through their analytics reports with them and the aforementioned image has popped into my head. I don’t mean that to be derogatory to the people who pay me, nor does it mean that I’m fluent in analytics and they’re not. It raises a business point that is something we all need to keep in the back of our minds as data becomes more integral with everything we do.

Here is a small example. Most of us see “direct” traffic in our analytics reports. In theory, those visitors typed in the site URL or clicked on a bookmark they set on a previous visit. That’s a partial truth. The reality is whenever a referrer is not passed, the traffic is treated as direct traffic by Google. Think that’s an unimportant bit of information? How about in the context of mobile traffic not passing referrers at all (and I bet mobile is a big and growing part of your site traffic)? The point is that it requires both the knowledge that the “direct” bucket isn’t an absolute as well as some further analysis to figure out the truth.

I’ve seen the same sort of issues crop up in attribution modeling (what source was responsible for the sale).  The groundwork for proper attribution hasn’t been laid and so the reports aren’t accurate.  Sure, any analyst can puke out the data in front of them but the good ones – the ones who can interpret the words and not just say them – will tell you why there is a problem and fix all the links you’re putting out there to accurately reflect what’s going on.

“Keith,” you say, “I’m not a data scientist.”  Neither am I.  What I can do – and you probably can too – is to ask questions, especially when someone tells you they are dead certain about what the data is saying.  Be sure they’re not just reading aloud in a language they don’t understand.  Get beyond reporting and into meaning.  It changes everything.  Agreed?

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Filed under Consulting, digital media, Helpful Hints