Category Archives: Reality checks

Atonement

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 calendar – Rosh 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   Whom 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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Love The One You’re With

One of the trends I hear discussed all the time is that of chasing the next shiny object.  As it turns out, that’s not something that occurs solely in the tech space.  A recent study from Adobe – The Adobe Digital Index – shows that online retailers are ignoring the 80/20 rule by ignoring current customers in favor of attracting new ones.  Maybe today’s screed should have been titled “You Always Hurt The One You Love.”  Their summary:

Online retailers spend nearly 80% of their digital marketing budgets acquiring shoppers (new visitors), but does this focus make sense? To find out, Adobe Digital Index analyzed 33 billion visits to 180 online retail website in Europe and the United States from April 2011 to June 2012. Our data indicates retailers should shift spend to returning and repeat purchasers, two existing customer segments that drive a disproportionately high share of revenue, exhibit higher conversion rates, and really step up in the Christmas holiday season and tough economic times. Migrating just 1% of shoppers to returning purchasers could generate as much as $39 million in additional revenue per retailer.

In other words, we’re spending way too much time and money chasing new customers while we ignore a lucrative user base that’s just waiting to be asked to the dance.  40% of revenue for online retailers comes from returning or repeat purchasers, who represent only 8% of all visitors, according to the study.  In other words, you have to attract five to seven shoppers to equal the revenue of one repeat purchaser.

Having run an online retail business I can tell you that the vast majority of our thinking was about attracting and converting new customers.  It wasn’t as if customer service was an afterthought and we did allocate a good deal of our marketing to up-selling our existing customer base.  However, this study opened my eyes to the fact that we probably could have done more with those who’ve already demonstrated a desire for our products and I’ll keep that in mind as I work with clients going forward.  How about you?

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Nuance

Does anyone remember nuance?

Emoticon logo Title

(Photo credit: Wikipedia)

You know – the subtle differences that are out there in the non-virtual world.  Maybe it’s why some folks see Azure, Cyan, or Turquoise while others just see Blue.  Nuance is why some people who can read the words really can’t understand the meaning of what they’ve read.  It’s for sure why some managers have issues with their staff and peers – they can’t hear the nuances in tone that are so critical in interpersonal communications.

I worry about nuance from time to time.  Most of the communication we all seem to have these days is via the written word – email, social posts, and texts.  None of those things have nuance.  I think that’s in part where emoticons came from.  They can help add nuance to social posts (and are totally inappropriate for business communications, kids).  I also think that we all have been on these lengthy email chains from time to time because someone is missing the nuance in one of the notes.  Ever wonder why a brief phone call or in person meeting resolves the back and forth issues?  Nuance.

It’s not just written stuff that lacks nuance.  A lot of the evolving social scoring or influence measurement totally misses the nuance of influence.  Two of the most influential people in my life can barely turn on a computer and are invisible on the social web.  They have neither Facebook nor Twitter nor other social accounts.  The people who are influencers in my life that are online don’t have tons of followers or friends.  I checked one of my friend’s Klout score and it’s in the teens but people online and offline come to him for advice and guidance all the time.  Quantity certainly misses nuance and even attempts to measure the quality of his user base fall short.

What matters isn’t how many Twitter followers and Facebook fans you have or your business has.  What matters is how you and your business turn those embryonic links into real relationships – ones that involve nuance in the interpersonal communications.  That leads to buzz but it also leads to more satisfying bonds with your friends, your staff, your clients, and your customers.

You see the nuances?

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