It’s a bit less than a week before Election Day and I, for one, can’t wait for the elections to be over. That will mean that the political ads will end too, and that can’t happen soon enough.
Putting aside politics, the vast bulk of these ads are horrible marketing. One thing that marketers learned long ago doesn’t work is badmouthing your competition; yet damn near every ad I see across the multitude of channels I watch and stream is 30 seconds of negativity. These folks spend their allotted time distorting positions, taking things out of context, and flat-out lying in many cases. The candidate-produced ads are bad and the PAC-produced ads are even worse. You’d think they’d stop. In 2007, the Journal Of Politics did a study of negative ads. They found:
…that negative ads tended to be more memorable than positive ones but that they did not affect voter choice. People were no less likely to turn out to the polls or to decide against voting for a candidate who was attacked in an ad.
While campaign consultants seem to think that these ads work, science proves otherwise. Of course, there are many folks out there who don’t believe in science but that’s another screed…
It’s bad marketing. Going negative makes you look petty and unprofessional. Playing up your strengths always works better than bashing a competitor’s weaknesses. Good marketers explain how they are going to solve your problems. I think good politicians should do that too. I don’t want “small” people representing me. If you can’t run on your positions and your solutions, then how am I to trust that you can outperform the one running against you?
This applies to your business as well, obviously. Do you see a lot of non-political negative ads? No, you don’t. There are many good reasons for that. Do you see a lot of false claims in non-political ads? You sure don’t – there are laws against it. The FTC Act prohibits unfair or deceptive advertising in any medium. That is, advertising must tell the truth and not mislead consumers. A claim can be misleading if relevant information is left out or if the claim implies something that’s not true. It seems to me that many political ads do just that, unfortunately.
Politicians may be brands, but they sure don’t advertise as if they were. Going negative isn’t particularly helpful in non-political marketing and it’s just as bad in politics. That’s one man’s opinion. What’s yours?
It’s Foodie Friday and for some reason, I’ve got omelets on the brain. I’m not talking about the egg concoctions they’d serve you at the local greasy spoon although as you’ll see I’m a fan of those. No, I’m thinking about the French Omelet and as it turns out, there is a business point that comes along with it.
If you’re not familiar, a classic French omelet (or omelette) has, as Serious Eats put it, a smooth, silky exterior with little to no browning that cradles a tender, moist, soft-scrambled interior. It is a dish that relies almost exclusively on technique. As with any dish, you want the best ingredients, but unlike many of the foods about which I’ve written over the years in this space, this dish is a fussy little thing and without knowing the proper technique, producing the unblemished golden-yellow eggs with an ultra-creamy texture is almost impossible.
There is no person better equipped to explain the proper technique than the great Jacques Pepin. Here is a video in which he makes a country omelet (what you or I would make at home) and the classic French omelet:
With the first one, a competent 6 year old could handle the technique (or lack thereof). I’m pretty sure that the second technique would involve a fairly large mess. So what does this have to do with business?
I’m not going to deny that there are “techniques” in business. Where we see them most often is in the sales area. I recall going through various sales training sessions years ago where I was taught closing techniques, questioning techniques, objection handling techniques, and so on. The problem is that many of these techniques are used without an ethical overlay. Salespeople often look at them as ways to trick people. Obviously, if you have the right customer, you’re selling them something that will solve a problem they’re having. Why would tricking them be necessary?
I’m more of a country omelet businessperson. Sure, there are skills involved in what I do and you need to understand how to use the tools at your disposal. I’m far less concerned, however, with technique and more concerned with putting out a product that satisfies the basic need: someone is hungry! Is the ability to turn out a perfect French omelet impressive? It is, but it’s also way more fraught with risk. Minimizing risk while producing a great solution to a customer’s problem works for me every time. You?
Filed under food, Consulting
I wrote last week about the new area in which I’ve begun consulting. Thank you, by the way, to all of you who both read the announcement and sent along your support.
The bulk of the people to whom I speak about investing in a franchise come to me via a system of ads. Some of the ads promote a specific brand and others just speak to the great opportunity buying into a franchise affords someone who is looking to work for themselves. Both types of ads generate leads. These are people who fill out a form and ask to be contacted. With me so far?
What’s struck me after contacting nearly 100 of these respondents is how few of them actually respond. I realize not everyone is going to answer the phone, but if they don’t, I leave a polite voicemail and send them an email as well. Obviously, they’ve provided the information. Most don’t respond to either, even to say “hey, I was bored late one night and I filled this out but I’m not really interested.”
You should know that I’m not selling them anything. My services are free. Like a realtor, I’m paid by the seller; in this case, the franchisor. Once I get them on the telephone, it takes only about 10 minutes for me to assess their needs and to figure out how we should proceed, so this process is neither time-consuming nor costly. They’ve taken the time to start the process yet they hit the brakes before it even gets going.
What’s the point for your business? Sometimes customers know they have a need but they’re afraid of solving the problem. For any of us, change is hard. For people who are unhappy with their lives, it can be crippling to believe that there is a better way on the other end of the phone or through the door to your business. In my case, most of these people want to change their lives somehow and I think they were channeling that when they filled out the form. When change came knocking at their door (or calling their phones), the fear kicked in. Any business faces that to a certain extent. Why don’t people go for physicals? Putting aside the cost, I think in part it’s because they don’t feel bad and they don’t want to know if something is wrong. If the states didn’t mandate auto inspections, how many people would routinely have a mechanic give it the once over as preventative maintenance?
Part of what we need to do as good businesspeople is to guide our customers. They may be fearful or reluctant. Remember that they wouldn’t be at your door if they didn’t have a problem big or small that they need to be solved. Your job (and mine) is to help them with that solution and a better life. Make sense?
It’s Foodie Friday and we’re back to our regular nonsense here on the screed. Today I want you to think back to that time when you ordered takeout and it was not very good. I’m sure you’ve had such an instance: we all have. Maybe you ordered some fried dumplings that showed up as soggy as your recently washed laundry. Maybe the pasta dish you ordered had aggregated itself into a small object better suited for football than eating. Maybe you ordered a steak frites to go and it didn’t travel well. No one likes soggy fries and a cool steak doused in cooling, congealing butter.
For many restaurants, takeout has become a critical part of their business. Life today often leaves little time for cooking at home, especially during the week. Think about how many places you know that have only a few tables but do a ton of takeout. The growth of delivery services and apps has accelerated the trend while actually decreasing profitability (the services take a cut of the bill and in many cases, it’s close to the entire margin on the order). I’m not sure, however, that many restaurateurs put enough thought into putting their best products out there for takeout. Why sell something that you know won’t travel well?
Putting your best steak forward, so to speak, is something that every business should do. The most customer-friendly takeout situations have a separate counter to speed customer service. They might have a menu that’s priced a little differently since the costs of servicing a customer are different. They pack hot foods apart from cold foods and they take care to make sure that condensation in the hot food doesn’t make it soggy (vent holes, people). As with any customer encounter, how you present your brand matters. I wouldn’t even offer to sell a customer a product that I know won’t travel well. If they’ve enjoyed it before in my place, they’ll be disappointed. If it’s their first time, they won’t be back. We see this in businesses that take on jobs for which they’re ill-suited. I’ve turned down many opportunities over the years to build people websites since my ability to design and to code is not up to my ability to perform other tasks. That’s not my best steak.
Is that something your business is doing? Are you gathering data and keeping records of every customer interaction? Are you constantly looking for feedback so you can adjust your menu? Are you putting your best steak forward each and every time?
A little self-indulgence today, and I promise not to make it a habit.
As you probably know if you’ve read this blog over the years, much of my consulting has evolved to a focus on startup businesses. That’s why, in addition to running my own practice, I’m a partner in a global venture catalyst that helps commercialization of startups post the idea validation stage through to sustainable profitability or a liquidity event. I also advise startups through my work at the First Flight Venture Center.
Two of the things I’ve noticed as I worked with some folks who thought they wanted to build and run a startup were that their as yet unvalidated ideas were often not really scalable businesses nor did they have a clue as to how running a startup business was different from life in the corporate world where many of them had spent their careers thus far. Quite a few of the budding entrepreneurs I’ve met were in their late 40’s to late 50’s. They had some money to invest in their startup but not enough to retire on. Besides, they were too young to play golf all day, as lovely as that sounds.
OK, so what’s the big announcement? What I realized is that rather than doing a startup many of these people needed a business in a box – something into which they could buy and, if they followed the plan, be successful. In short, a franchise. Because of this insight, I’ve expanded my consulting practice into franchise consulting. I will operate under the name of Franchise-Source and I’ve linked to the website (this is a temporary site – a newer, nicer one will be up soon). I’ve hooked up with a wonderful organization that represents over 500 different brands in over 70 different industries. My new entity has pages on Facebook and LinkedIn (those are direct links) as well. I hope you’ll check them out.
I’ll be continuing my other consulting as well and of course, the screed will continue although I’ll veer into the franchising world from time to time. I hope if you’re considering owning your own business or franchise and aren’t sure where to start that you’ll call or email me. As with a realtor, the buyers don’t pay for my services. The sellers – or franchisors – do. The work has been gratifying so far in that I’ve already spoken with a number of people who are looking to change their lives and rather than taking a chance on an unproven idea they’ve worked with me to investigate a solution that works for their goals, their budgets, and their lifestyle.
Thanks for reading. I’d appreciate you letting anyone you know who might have an interest in a franchise that I’m here to help. Back to our regularly scheduled blog programming next time.
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?
I’m in training now to expand my consulting practice. I’ll have more about what exactly that means in another week or so, once I’ve officially completed training and can begin working with clients. The training has been two or sometimes three 90-minute training sessions a day for the last week or so. It’s pretty intensive, and while much of it isn’t highly technical and involves some business knowledge that’s common to what I’ve learned working in other areas over the years, it’s still a lot. I’m enjoying it, in part because it’s been quite a while since I’ve had to absorb this much information about a topic that is totally new to me. Always good to get those old synapses firing, isn’t it?
One thing it’s reminded of is the difference between learning and doing. Maybe I should phrase that as knowing and doing, but they’re different. In any event, one is certainly not the other. I can explain to you the elements of a great golf swing and I can probably point out what in your swing is causing you problems. I know what a good swing looks like. Can I perform one myself? Oh hell no. I’m a great caddy – I can club you correctly and discuss strategy. Can I hit the shot I’m describing? Not consistently well.
That’s knowing vs. doing. Learning vs. doing is having the information as I now do about this new business area but really nothing more. I can tell you the rules, I can tell you the best practices, I can even tell you the mistakes you’re likely to make. What I can’t do is to give you any first-hand experience nor any nuance nor anything particularly insightful from that which you could get from anyone else. That last part is where any of us add value to what is, in essence, a textbook view of the world. A kid coming out of graduate school with an MBA (yes, 28-year-olds are now “kids” to me) has a ton of education and knows an awful lot but they have very little experience. The good ones that I’ve worked with know that and are anxious to add to their education by doing. The less good one think they already know it all thanks to their learning.
I know I can be effective in my expanded area right away although I’ll be even more effective as time passes and I learn the things one only learns by doing. Part of why we see some problems in the business world, particularly in the tech world, is that we have CEO’s who got to those jobs by being founders. They don’t have real-world experience because they’ve not done the series of jobs and learned from each that traditionally gets one into a CEO chair. Without a bunch of doing, a little learning can be a dangerous thing, don’t you think?