Tag Archives: Consulting

June 23, 2014 · 10:42 am

Don’t Be Famous

Over the weekend I came across a video of a graduation speech given by comedian Mike Myers. The fact that I watched it at all is a tribute to the concept of social proof. I normally don’t watch graduation speeches unless they’re by someone in whom I have a great interest. While I like many of his films and his SNL work, Mr. Myers normally wouldn’t pass that test. However, it was posted by a guy whose thinking I respect and he said it was worth a few minutes.  I’m posting the video below – it is worth the almost 8 minutes and you can probably skip the first 1:30 if you’re that pressed for time – and then I have a few thoughts.

 

“Legendary” is being known for something that you do and “famous” is just being known.  Being known has become an end in itself, free from the prerequisite of achievement.  Celebrity used to mean being celebrated for something that you did; celebrity has become a devalued currency.

That is brilliant, and a fantastic business lesson for all of us.  We can spend great sums of money becoming famous – getting our brand and company names out there via earned, owned, and paid media. What happens once the customers interact with us, having found us through those channels, is what can make us legendary.   It means we need to pay as much attention to execution as we do to attraction.

Napoleon has been quoted as saying “Fame is fleeting. Obscurity is forever.”  He was advocating for the permanence of obscurity, because it endures, while fame is weak and lasts only a small amount of time.   I think Mr. Myers is getting at the same point.  We can’t build our businesses on making loud noises or the marketing equivalent of screaming “fire” in a theater.  Sure, that gets attention (fame) but we’re in an era when anyone has access to the noisemaking tools (witness the screed!).

We need to build something more substantial if we’re to remain in business for a long time.  We need to become legendary. I’m trying each day – you?

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May 1, 2014 · 10:35 am

Free!

I got involved in a business model discussion the other day.

geese

(Photo credit: Grant MacDonald)

Someone who has a paid product is contemplating moving to a free model of some sort. The product is fairly unique and I would say has enough demonstrable value that giving it away would cause consumers to question that value.  The main thinking is that in the digital (and many other spaces) people have come to assume that everything is free.  Hello?

First off, nothing is free.  While you as a consumer might not have to lay out any money for the product or service being offered, you are probably giving back something of value.  Your attention (to ads), or your data (to damn near everyone), each of which has quite a bit of value in the aggregate.  Maybe the basic product comes with no strings attached but the really cool stuff requires a payment (freemium).   But that’s not really what was driving my thinking.

People don’t always choose free.  That said people always choose free if everything else is equal.  We call those things commodities, and not all commodities are fruits or natural resources.  Sports scores are commodities, for example.  Why would you pay for them when there are so many free sources (except nothing is free!).

People DO choose to pay for stuff they can get for free.  Bottled water.  Over the air TV.  The real question is this:

How do I differentiate my product so as to add value in the consumer’s mind for which I can charge?

We sometimes lose sight of the fact that price and value, while related, aren’t the same.  For commodities, free (or no price) can be a distinguishing feature.  Where does one go, however, once someone else jumps to free too?  Creating unique products that are clearly better sets up a lot of pricing and business model options.  Being a “me-too” doesn’t.  Make sense?

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February 12, 2014 · 10:48 am

The Kid On The Bicycle

We didn’t get our newspaper this morning.  Not the end of the world, I know, but humans are creatures of habit and one of mine is skimming the paper while I have my breakfast.  We didn’t get it yesterday either.  These are not weather-related issues; other than the bitter cold, the weather is fine.  I reached out to the NY Times yesterday – they had another paper here by early afternoon.  Hopefully that repeats itself today.  I also let them know that these two incidents have become more common of late and I’m getting concerned.

Why am I telling you this?  No, it’s not my usual ranting about some slight.  There is a business lesson in here.  Strangely, I used to use this exact thing as an example many years ago when I would meet with advertisers to talk about media planning.  I’d talk then about the newspaper business and how many millions were spent hiring reporters and editors, salespeople and printers.  I’d talk about the money invested in paper and in presses and in ink.  I’d mention the thousands of people who print and publish and distribute a newspaper.  Which is then given to a kid on a bicycle to get to the home.  My point then was about the junior people were entrusted with taking marketing plans and advertising strategies and making them happen efficiently without a clear understanding of everything that had gone on previously.

The point today is a similar but broader one.  I’ve subscribed to home delivery of the Times, according to my account, since 1992.  My lifetime value to them is already into the tens of thousands of dollars.  The kid on the bicycle (ok, it’s a guy in a car that needs a muffler) has me wondering if I am better off just buying the paper and maybe not every day.  By comparison, the other papers I take have come every day without fail.  The last link in a huge business but the one that has a long-time customer questioning the product’s value.

We all need to think about who rides the bicycles in our businesses.  A beautiful office can seem less so if the receptionist is rude to guests.  The aforementioned junior person who executes plans by rote with no real understanding of “why” is that same weak spot.  As managers we need to ride along behind, checking off each delivery.  We need to make sure the delivery kid knows the route and we need to motivate them to do their job as well as we do ours – maybe even better (don’t throw the paper in the mud, kid).

Who rides the bicycles in your business?  Who is the last link between your brand and your customer?  When was the last time you paid attention to that link?  Any thoughts?

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