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Golden Nugget or Lead Balloon

Published

Nick Rice

on November 4, 2008

in Client Magnet Archives, business, marketing and strategy

. 2 Comments

Golden Nuggets

One of the biggest mistakes I see consultative professionals make is to offer a solution during an initial conversation with a prospective client. You may not be aware of the damage you’re doing to your ability to be hired when you offer these “golden nuggets” of advice.

Let me explain. By a consultative professional I mean someone who offers customized advice, direction and solutions to a specific problem. Here are a few examples of consultative professionals: designer, physician, architect, engineer, business coach, consultant, ad agency, chiropractor, attorney, financial adviser, accountant, etc…

They people are very knowledgeable about their given trade. They typically have years of education and experience and often a few initials behind their name. They don’t just sell “what’s in their briefcase,” they uncover problems and issues for their clients and prescribe customized solutions to those problems. And they are very comfortable talking about their solutions. Herein lies the problem.

When asked to offer advice, a consultative professional often jumps right to their solution. They mentally cull through years of experience and similar situations and offer an amazing nugget of insight. Most of the time, their advice is spot on. But often that amazing advice is never acted upon by the recipient.

One of two things usually happens; if the other party acts upon your advice they are typically missing a few key ingredients to make the solution a success on their own because they do not possess your wealth of experience and knowledge. If they DO succeed, they often wonder why people would pay you if the solution was so simple that it came out of a 20 minute conversation.

But most of the time, they will not take action on your advice. And when you check on their progress the next time you meet, there’s often an awkward moment where they feel like they have to explain why they sat on your golden nugget of wisdom. Here’s why; you never took the time to fully understand the problem behind their request for advice. Solutions, unto themselves, are devoid of value without a problem to fix.

I talk to consultative professionals every week that feel like they give away golden nuggets of information only see them turn into lead balloons, because the prospective client’s problem was never truly analyzed.

As a consultative professional, it feels good to offer advice. It’s comfortable. It feels valuable. In fact, it’s what we do best. But advice not tethered to a problem often causes more harm than good.

Offering solutions is an easy trap to fall into. In fact, almost everything a client asks of us begs for a solution. “Help us do…; We need a…; We want a better…” Most professionals respond to these questions by offering a solution. And we wouldn’t just offer any solution; we offer a golden nugget because we perceive this as our chance to shine.

Most clients would like to believe that there is a magic bullet solution to their problem; but in reality it’s often much more complicated than that. It’s easy to jump right in with a solution (even one that would work); but you must dig to uncover the real issues behind the request. If you let the client get away with the original question, it puts all the pressure on you to come up with the magic bullet. As a consultative professional, you must get the client to fully describe the issue and its implications on their business.

Here are a few questions that I use to uncover & quantify the real issue:

How do you know this a problem?
Why hasn’t this issue been addressed yet?
How much is this challenge currently costing you in both hard dollars & soft dollars?
What kind of results would occur after fixing this problem?
Why is the future state better for you? What’s it worth to you?

It’s been proven that people (and organizations) move away from pain faster than they move towards a gain. Forget about your experience and solutions for a minute and take the time to fully understand the pain caused by the issue; or at least what type of gain they are expecting to see by engaging you.

If you continue immediately offer a solution,you’ll continue to see your golden nuggets sink like lead balloons. In these initial conversations, you will garner more respect by uncovering the pain behind the request before offering a solution. I know it’s difficult to put your knowledge and experience on the back burner for a little while, but if you’re able to do so, you will move into bigger projects and bigger fees; and you’ll be able to make a bigger impact–which is ultimately what we all want.

Keep digging to find gold

Published

Nick Rice

on September 9, 2008

in management and strategy

. 0 Comments

Every day I get an email from the Institute for Management Consultants (IMC) and I must say, they worth reading–everyday. Today’s email focused on keeping people on track without letting them ramble down a tangent during the conversation.

They suggest using a technique called the “5 Why’s.”

Here’s an excerpt from their email that I felt needed to be passed along:

One tactic that comes to mind is to introduce a process in your discussions to keep focus in a solution space. This is known as the “five whys.” When you start with a solution to an identified problem, accept the first solution and then ask a series of “why” questions.

For example, someone suggests they should sell more products in the marine market (which is one of your strongest markets). Why? Because the marine market is underserved. Why? Because the market is growing and no new suppliers are entering. Why? Because the margins are poor for this highest growth segment of the market. Why? Because the new segment cares about price more than quality, which is your company’s strength. Why? Because these new customers are young consumers early in their earning careers.

What started out as a “good idea” to expand into a market area your company is already in, then swerved into a potentially bad idea (poor margins), then back into a good idea (future potential) but for different reasons. Before you asked the “whys” you might have entered the market quickly, but now you know to pace yourself and cultivate this customer base as their spending abilities grow.

Tip: It may take more or less than five “whys” to get to the bottom of an issue, but you will get your client into the habit of becoming very precise with their suggestions.

Copyright (c) 2008, Institute for Management Consultants

We need people to halt, cease, anything but stop…

Published

Nick Rice

on July 27, 2008

in advertising, branding and strategy

. 0 Comments

Saw this great video below on a Facebook post by my friend, Jason Parmer, owner of design firm, Apparel Studios.

If this video wasn’t so spot on, it’d be funnier. Unfortunately, since I’ve lived on the client side of the fence more than the agency side, I’ve been part of meetings just like these. The group think that comes from everyone trying to cover their own a$$ and make it look like the winning idea was their own kills simple effective marketing.

It will never cease to amaze me that organizations bring in the “expert” outside marketing firm only to second guess and outright direct the final product. If they were capable of producing the deliverable on their own, why go outside in the first place? You don’t tell an architect how to design a stable, functional and attractive structure; you don’t tell the oncologist how to treat cancer; you don’t tell the attorney how to best win your case. Yet everyone thinks they are a designer; everyone thinks they are a world class copy writer.

Now, I cannot put all the blame on the client. A large percentage of the design profession suffers from self esteem issues and cannot seem to stand up for what’s right. They quickly forget that their ability to solve problems is valuable. Too many designers cut their own throat just to get an assignment only to cuss the client all the way through the process–while crossing their fingers for a referral. They’ve never taken the time to understand what makes business work and therefore have a hard time truly communicating with their own client. They complain that “good design is not magic;” then fail to ask enough–or the right–questions to get the answers required to create an exact solution.

Clients respect marketing firms that can prove their point. And designers need enough balls to stand up to the client and say, “This is wrong for these reasons…,”and be willing to walk away if the client won’t listen. Let another schmuck handle it. Go out, proactively market yourself and find clients that value what you bring to the table.

Enough ranting. On with the show… “What if there were no Stop Signs and a Major Corporation was tasked with inventing one.”

I’m loving the Volume Fairy

Published

Nick Rice

on July 16, 2008

in management, marketing and strategy

. 0 Comments

Tom Fishburne is a genius. His cartoons are always spot on.

I see this all too often with clients that are overly dependent on referrals & word of mouth. I’m beginning to believe that the old business adage, “feast or famine,” is simply a signal that the business is poor at marketing their services/product. I know there are seasonal/circular patterns to some businesses, but good marketing helps to offset these normal variances. And marketing done properly (ie. planned, tied to measurements, evaluated, tweaked and relaunched) can become a system to generate predictable results.

For instance, I know that everytime I publish a blog article on Fast Company I’ll get a spike in web traffic. Google Analytics shows me that ~10% of those people sign up for my email newsletter, Client Magnet. Once they are on my newsletter, it typically takes six to eight months for them to call/email me about working together. Publishing articles has become a system for me.

If you’re still counting on the volume fairy, you need to know that generating consistent sales isn’t rocket science. Consistent sales comes from consistent proactive marketing. Pure and simple. You cannot leave it solely up to your word of mouth stream which is too unpredictable from month to month. You may be great at what you (and probably are), but you need to become a better marketer to grow your business.

Just Do It?

Published

Nick Rice

on July 2, 2008

in Client Magnet Archives, entrepreneur, management and strategy

. 0 Comments

We live in a very action-oriented society.

Getting things done, accomplishment, success and winning are valued above almost everything else. When you meet someone new, they first ask you what you do. And we love to tell them.

And I’m no exception. In fact, I feel guilty when I take it easy and am not doing something productive.

What’s wrong with this picture?

What’s wrong is that this primary focus on action is ultimately doomed to failure. It’s a strategy that will not consistently get us what we want. In fact, it can contribute to huge amounts of wasted time, spent energy and unfulfilled dreams.

I’m not saying that action is bad. No, it’s quite essential - in its place. What doesn’t work, what actually hurts us, is a focus on action above all else.

Nike’s iconic motto “Just Do It” is a lie.

Now, I’m not saying that taking it easy is the answer either. This article has nothing to do with finding balance and reducing stress. Although useful, they are not the key to making your dreams come true.

Have you ever noticed that two people can be equally busy in their lives - in their business - and yet one is a lot more successful, more accomplished than the other? I’ve certainly seen this with my clients.

Similar businesses, similar levels of intelligence, but very different results. One consistently produces superior results and the other struggles valiantly only to see their efforts fall short. Both are equally action focused. So why do they get different results (even when using similar methods)?

This really is the proverbial $64,000 question!

The answer to this question is both powerful and elusive. It’s powerful because, if you understand and apply it, it can change your life. It’s elusive because, like the air we breathe, it’s easy to miss.

So let me demonstrate how it works.

I’m going to ask you to do a little exercise: I want you to picture something that you want to accomplish in your business but haven’t yet. Make this as clear as you possibly can. See it, feel it, touch it. Make it completely real.

Then say these words to yourself: “I want….” and then describe what you want as clearly and as concisely as possible. Focus only on this, on nothing else. Take your time until you are clear and specific.

Notice how you feel once you have a higher level of clarity about what you want in your business. Are you more (even if a little) excited, enthusiastic and confident than before? If not, go back and clarify your “want” a little more. Don’t cheat yourself by being vague–get very specific and clear.

Next, take a minute and write down 3 things you can do to make your “want” happen. It could be anything, but again, like your intended result, make your action steps very specific.

Do these action steps seems doable, achievable? Can you easily see yourself doing them and having them lead to your ultimate accomplishment? Are you ready to get started?

OK, that’s the exercise.

If you only read through this exercise quickly, I urge you to go back and actually do it. It only takes a minute or two and can kick start major changes in your business.

Clearly picture something you want to accomplish in your business and concisely articulate what it is.
Notice how you feel (if it’s not more positive, repeat step 1).
Write down three specific action steps.

The secret to effective action is “Clear Intention.” Without clear intention, you’re just going through the motions. You’re putting a plan into action with no direction. And more often than not, you don’t get the results you desire.

I have a pretty good understanding of what you’re going through right now. I’ve noticed that when you tell someone that they haven’t created a strong clear intention, they usually won’t agree with you!

But the proof is in the pudding. When the intention is clear, your feelings are in alignment and the steps you need to take seem both obvious and simple. You automatically move towards realizing the intention you created.

Take a few moments to create a clear intention for your business - what is something you really want to accomplish? Set a clear intention for money - how much do you want to earn and what will you do with it? Set a clear intention for marketing and selling - what projects and clients would you love to have?

Action without clear intention is like a race car without big sticky tires; you’ll feel like you’re moving forward only to look back and realize you’ve been spinning your wheels.

(originally published by Robert Middleton of Action Plan Marketing)

Ideal Client Mix

Published

Nick Rice

on April 8, 2008

in Client Magnet Archives, advertising, marketing and strategy

. 5 Comments

The more I learn about small business, the more I’m surprised about the shaky foundation on which they build their businesses. Owners risk so for their business, yet they often put themselves at greater risk because they choose not to market consistently.

Overwhelmingly, when people discover that I’m a marketing coach they proudly state, “I’ve built my entire business on referrals. I’ve never had to spend a penny on advertising.” And my response is typically, “That’s great, advertising rarely works for service businesses anyway. And I applaud you for providing a service valuable enough to get people talking. So tell me, how do you get referrals on a consistent basis?” That’s when they usually stop dead in their tracks. They realize that referrals are not predictable; they realize that they are not in full control of their own business.

Now let me be clear; referrals are great! They are vital to your firm’s growth. They are the easiest business to close and they are typically less price sensitive than other buyers. You should ALWAYS strive to do your job well enough to get people talking about you and your services to friends and colleagues.

That said, the ideal client mix for a service business is 50% referrals and 50% new business. And by new business, I mean clients that would not have otherwise come to you without stumbling across one (or more) of your marketing tactics. So what’s your percentage? How much of your business do you ultimately control?

Referrals are going to happen (or not) when you provide good service and deliver value. Referrals are next to impossible to control. You can’t magically turn on the referral switch and get new business when you need it. So while they are great business; you shouldn’t let referrals totally control your business. You need to proactively grow your business in addition to working with referrals.

You need a reliable system in place for generating new leads and attracting new clients. By balancing referrals with proven marketing strategies, you can potentially double your business if your current mix is 100% referral-based.

Just for a minute, assume you keep your current level of referrals and you elevate your new business marketing efforts to attain the ideal 50/50 split. What would that mean for your business? What would that mean for your personal goals? Having a marketing engine that consistently creates more opportunity than capacity allows you to choose better clients and better projects.

What I’ve discovered is that most people don’t understand how to market their business. They’ve never had any training or they simply get distracted by the details leaving their big plans to collect dust. In addition to referrals and advertising, there are many more marketing options.

BNI is the world’s largest “lead referral group.” Each week millions of businessmen and women around the world get together to proactively drum up referrals for their business. Earlier this year, they asked their members about their marketing strategies. Here are the results (in order of weight as of March 2008):

BNI Marketing Strategies

Referral Marketing - 41.6%
Direct Marketing - 17.6%
Web Marketing - 9.9%
Direct Mail Marketing - 5.8%
Email Marketing - 5.5%
Print Ads - 4.8%
Other - 4.2%
Public Relations - 3.8%
Telemarketing - 3.1%
TV/Radio - 2.8%

So even in a group that purposefully built to generate referrals, members are still spending over 50% of marketing efforts on other strategies. But here’s the kicker, BNI members are missing out on some of the most effective marketing strategies available for professional service businesses.

Just look at the focus on direct marketing, direct mail, print ads, and tv/radio; those strategies are basically marketing number games. The response rate for those strategies is so low you need tens (if not hundreds) of thousands of contact names on your prospect list to make it worth your time and effort. We’re talking about a ~0.5% response rate on those strategies.

If you’re in a service business, you are selling your knowledge, expertise and ability to solve client problems. Chances are you have hundreds, maybe thousands, of people in your contact list or address book–no where near enough to play marketing number games. Not to mention, it’s very difficult to explain the value of your intangible service offering with traditional advertising. You need a different approach; you need different options.

I help my clients pick between 11 proven marketing strategies. We select the top three to five strategies that are best suited for their unique goals and personality. These are “big bucket” strategies that can have hundreds of different tactical executions apiece. The 11 strategies include (in alphabetical order not effectiveness):

1. Advertising (paid placement of message, incl. sponsorship)
2. Articles & Publishing
3. Direct Outreach (one-to-one direct mail, email, phone calls)
4. Keep in Touch (newsletters, auto-responder email)
5. Networking (events, lunches, committees, Board of Directors
6. Online (SEO, banner ads, webinar, registration forms, blog)
7. PR (earned media/press mention)
8. Referral (Word of mouth, viral marketing)
9. Speaking, Presentations, Workshops
10. Special Events (host seminars, open house, customer events)
11. Strategic Alliance / Joint Venture

For instance, take Networking. As an overarching strategy, you can network at local Chamber events, professional groups, church, alumni clubs, civic organizations, and online networking sites like LinkedIn. You can join boards, country clubs, mastermind groups. In order to take advantage of networking (or any of these strategies), you need a plan.

Each of these marketing strategies has been proven to work. But some are more effective than others. Notice that advertising and referrals are both solid strategies, but they’re not the only options. And I like I said before, advertising only works with businesses with mass market appeal. The very nature of a service business has a targeted audience.

The small business owners I talk to want a tangible return on their investment of time, money and energy into marketing. Everyone has unique goals, but one of the most common goals that I encounter in professional service partners is the desire to be seen as an “expert” in their field. They want to elevate above their competition and be recognized as a leader. If this goal resonates with you, one of the most potent combination of marketing strategies you can employee is Writing, Speaking, and Networking.

Think about who you look to as leaders. How do you tap into their knowledge? Where do you find them? Chances are you buy their books; or read their articles/white papers; or see them talk at a conference. Experts purposefully select marketing strategies that allow them to capitalize on their knowledge and “thought leadership.” Now, this is just one example. You have to pick strategies that excite you and are best suited to reaching your specific goals. If you can’t get excited about speaking, for instance, chances are you won’t actively work your speaking plan.

In closing, I want you to think about your business and your goals. If you have a business built 100% on referrals and you’re completely happy, I congratulate you. But if you have a business dependent on referrals and the stream is dwindling down or you yearn to take the business to the next level, you must become a better marketer. You need to balance your referral stream with new clients. Building action plans around a couple of the marketing strategies listed above is a great way to reach the 50/50 client mix.

—–

If you’re in the greater Lexington, KY area, mark your calendar. Starting May 15th, I’m leading an 8 week marketing workshop for Independent Professionals and Partners in professional service businesses who want to attract more clients. This program, entitled the Fast Track to More Clients, will be a business “tipping point” for owners who are:

Tired of struggling with marketing and getting minimal results
Resistant to engaging in marketing activities
Committed to growing their business to a whole new level

Learn more at http://www.nick-rice.com/fasttrack

Is the opportunity real?

Published

Nick Rice

on February 4, 2008

in Client Magnet Archives, business and strategy

. 3 Comments

We’ve all been in that sales situation where you think you have it wrapped up and at the last minute it stalls. They stop returning your calls and emails, all correspondences are very short and to the point, the RFP is hanging out there, it seems like your prospect has simply fallen off the face of the earth.

So what happened? Were they not an ideal client or part of your target audience? Was there secretly a competitor with an inside track or existing relationship (hint: there usually is, but that’s a different ezine topic)? Were they simply shopping to see what’s available in the marketplace?

It could’ve been any of those, and more, so today I want to introduce a framework to help you evaluate each opportunity - before you commit to chasing it. I can’t claim this model as my own, though I’ve adopted it in my daily client interactions.

When I got serious about understanding consultative sales, multiple colleagues recommended I pick up Mahan Khalsa’s book, “Let’s Get Real or Let’s Not Play.” And I recommend you read it as well. The short version of the story is that Mahan is responsible for sales performance at FranklinCovey, the Seven Habits folks, and this book shed more light on how modern sales work than anything I’ve read. When I read a recent ezine from Mahan, I knew I needed to share some of his wisdom with a little bit of “Nick Rice practicality” thrown in for good measure.

When you are presented with an opportunity for a new project or new business, you need to uncover as much as possible to gauge how successful you will be with this project. If you try to fix every problem that presents itself, you will never be seen as a specialist, and as such, you will never command high fees. Generalists stay busy with small projects, but when the client wakes up and decides to fix the big problem, who are they going to call?

So, how do you uncover such details? At a high level, you have to ensure that three things are present before you can properly evaluate an opportunity. Here is the Opportunity Framework:

Opportunity Framework

First off, you have to know that there truly is a problem to solve or a result to achieve. You cannot help someone that doesn’t admit or realize that something needs to change. It doesn’t matter if you know beyond a shadow of a doubt that there’s an issue; if you cannot get your prospect to see it and admit it, you’re wasting your time. On the flip side of this, it has to be a problem worth fixing or a result worth achieving. Organizations live in a constant state of brokenness - and that’s okay as long as they are still profitably functional. Some problems are worth fixing, some are not. Realize that as soon as possible and move on.

The second item to uncover is the prospect’s ability to make and act upon a decision. There’s nothing worse than someone who cannot make a decision and move on it. If you’re running into this, chances are you’re not talking to the real decision maker or you’re not helping them paint a picture of what life could be like after fixing the situation. If you work with large organizations, know that junior level managers and staff love to keep consultants and sales people busy. They like the power trip. And it makes them look productive to their bosses. You need assurance that the person you’re working with can say yes to your proposed solution before you invest a lot of time and energy.

The third leg of this stool is ensuring that appropriate resources are available to address the issue. Resources can take the shape of budget dollars, staff availability, executive oversight, equipment - anything required to make the solution a reality. If there’s not enough budget or internal staff resources, the project will never get off the ground. If you cannot get commitment from a certain executive for support, you’re on thin ice. How can you be successful without appropriate resources?

If any one of these three items is left unknown, you put the project and your success at risk. Chances are you’re going to waste a lot of time when this initiative stalls at some point in the future.

We’ve all seen good opportunities with no budget. We’ve all seen executives than cannot make a decision. We’ve all walked into a client’s office and almost tripped over the problems in the organization. If you are someone that wants to be recognized as an expert in their field; someone that wants to truly provide the best solution to the client’s problem; you owe it to yourself to slow down enough to uncover all three parts of an opportunity. And don’t be afraid to walk away if the opportunity isn’t ideal. You should only work in an environment where you are set up to succeed. If the project isn’t right, it isn’t right and now it’s time to move on.

You cannot expect the client to simply lay all of this out on the table for you. You have to dig. You have to ask the right questions to bring these issues to the forefront - and in doing so you will separate yourself from 98% of the other sales people out there. Too many people simply jump at what’s presented in an RFP or what’s said a meetings as gospel without digging any deeper. Clients want and expect you to ask tough questions. They want to know that you fully understand their issue inside and out before presenting a solution.

When you approach each opportunity as a chance to find the perfect solution for your client - whether it involves you or not - you’re doing the right thing. And Carma has a way of rewarding those that do the right thing. In order to understand the problem and propose the perfect solution, you need to know all three parts of an opportunity.

Excellence versus Perfection

Published

Nick Rice

on January 9, 2008

in Client Magnet Archives, marketing and strategy

. 3 Comments

Michael J. Fox once said, “I am careful not to confuse excellence with perfection. Excellence, I can reach for; perfection is God’s business.” Those words rang true as soon as I read them.

Early in my career I was a graphic designer for a local university. I was responsible for creating text books and classroom materials for the International College of Dentistry - super exciting work by the way :). Like any job I had deadlines to meet with the editors, publishers, printers, etc… One day I caught myself going back to tweak the layout for a certain book. That particular book was printed six months earlier and currently in use in Dental Schools throughout the Middle East. But here I was futzing with margins, font spacing and the like.

Something made me stop and think about what I was doing. Why in the world was I messing with a text book that would never be reprinted? I had other things to work on, but internally I was going nuts because I knew I could do a better job than I had originally. Mind you, there was nothing wrong with the final published book. It was great. Everyone signed off on my designs and loved it. Not to mention that it was a critical component of actually training and producing dentists. It was working.

And in that moment I realized that I was a “tweaker”. My edits had nothing to do with my audience. They were strictly for my own benefit and justification. I wanted better margins simply because it was the right thing to do in my mind. Tweaking was a constant thread in my professional life for years. And to this day I still fight the urge to pull up a logo I designed nine months ago, or a strategic plan that I helped write with a client and make a few tweaks. It’s just a part of who I am.

But a few years ago I realized that tweaking was just for me - not my clients - most of the time they never saw my tweaks anyway. When I did bring my revised files to a client, they would look at me like I just handed them a moon rock. You could see it in their eyes, “What is this? Why are you bringing this to me now?”

After more than a few of those interactions, I decided that perfectionism doesn’t work for me. In fact, it was actually hurting my client relationships. They had moved on. I was obsessing. I was the crazy consultant or designer that couldn’t let go. So today, I actively strive for excellence.

Excellence is something completely different than perfection. And it took me a long time to fully understand how powerful and good simply being excellent was. For me, perfection was the top. It was it. Anything else seemed like failure. I look back now and realize how silly I was to think that being excellent meant failure.

And here’s the funny thing that all perfectionists know - perfection isn’t possible. If it isn’t possible, why keep killing ourselves to reach it? If it isn’t possible, why even think and act like it is? Why assume that nothing else will suffice? Why do we set ourselves up for a letdown?

Being excellent is attainable. It’s not always easy, but it is doable. Excellence doesn’t mean that you’re sacrificing your soul. It doesn’t mean anything other than excellent. And how can that be a bad thing?

When you strive for perfection, you shoot yourself in the foot right from the start. You’ve given yourself a goal that’s unreachable. You will never be satisfied with the end result and that creates a type of myopia. You cannot see past perfection. Perfection holds you back from reaching your true potential. It’s a constrictive way of being. Perfection costs you more than you realize.

And here’s the kicker - no one expects you to be perfect. People expect you to strive for excellence. Excellence is what people pay for. It’s what people really want from you.

Being recognized as excellent in your field is the key to success. So I encourage all of you perfectionist out there to take a few minutes and look at how your never-ending quest for perfection affects your life and relationships. Is it helping or hurting you? Are you getting what you want?

If you’re open to looking at it from another angle, ask yourself these two questions:

If it were impossible to be perfect who would I prefer to be?
If I could be the new way, what would things be like? What would happen?

If you’re like me, you’ll find that the new way of being is much better than the current constrictive way. Once you come to that realization, life and work take on a whole new meaning.

Like I said, I still fight the urge to tweak, but recognizing how it affects me and actively striving for excellence has allowed me to be more productive, more effective and happier. And that’s something that most New Year’s resolutions can’t beat.

BTW, There are probably spelling and/or grammar mistakes in this blog post. And that’s okay. I’ve spell checked it and I’ve re-read it and now I’m sending it. I want it to be right, but I also know that I can spend hours obsessing over every detail and it won’t go out until tomorrow or the next day. Hopefully a few grammatical errors (if you catch them) won’t keep you from thinking about what I’ve said. So here goes…

5 Ways to Join the Conversation Economy

Published

Nick Rice

on April 27, 2007

in marketing, social media and strategy

. 4 Comments

It’s no secret that the web is moving to a conversation platform. That’s one of the major check boxes for all “Web 2.0” apps online. You can have a 2.0 look (big fonts, clean simple design, and gradient color buttons), but to truly be 2.0 you have to build your site around information sharing and user contribution.

Well that’s easy to do if you’re a start-up. But what’s the benefit to Fortune 500 companies that are decades or centuries old? It’s hard to wrap your head around this paradigm shift if you’ve been pushing information out to your customers for the last 20+ years. In the old model, a company would buy enough airtime and/or print advertising to throw their message out in the market. It was a shotgun approach in the purest sense. Even as media-scarcity began to evaporate (think cable TV versus network or niche magazines versus the NY Times), new targeting models came about to direct budget dollars to more appropriate mediums. But it’s was still a one way conversation. Focus groups and the occasional talk to a sales person became the primary method of hearing what was going on with customers.

Today, we understand the world has changed. The TV industrial complex is all but gone. That’s not to say that no one will ever advertise on TV again; but we now understand that the expense to do so rarely generates a worthwhile return on budget dollars. There’s only one true mass market TV event - the SuperBowl - and that has pretty much sucked from an advertising point of view for the last few years.

The music industry is falling apart. Why would a band sell their souls to a record label when they can get online distribution on their own? When was the last time you walked into a CD or record store and bought something? The world has changed.

Ten years ago we had no idea what Amazon and eBay would do the marketplace. They built systems around trust - not to mention the innovations around warehousing, shipping and distribution. Trust comes from real people giving recommendations, ratings, comments and reviews. That’s not a new concept. The difference is that today, it’s enabled by high speed web technology.

So where do you start? How do you get on the bus? Whoa, slow down a sec. You don’t think you need to be on that bus? Well, if you don’t you’ll continue to see your profit slip. You’ll continue to get bashed on Technorati (didn’t know that was happening did you?). You’ll continue to look for ways to cut costs instead of grow revenue. And you’ll continue to feel the seismic shift underfoot until you fall in the crack. The world has changed. Consumers want, and sometimes demand, to participate in your brand - your half of the conversation.

So, here are my five ways you can start to revamp your business around the conversational economy/web:

Make it easy for consumers to talk about you - good and bad.
If you sell products or services, let users submit testimonials, reviews and ratings on your site. If you’re making good products or selling valuable services, you shouldn’t have to worry because you’ll see glowing reviews. If not, you’ve most likely found the source of your profitability or market share issues.
Customers are always right.
Even when they’re wrong, in their heads, they’re right. You have an opportunity to educate them; but at the end of the day, they choose whether to stay with you or leave. You cannot control that. How you handle the education part makes a big difference in their decision.
Stop trying to please everyone.
Make an awesome product for one segment. Dominate that group of users. Turn them into your biggest advocates. When you try to make something for everyone, you end up with mush. Think Apple. The only way to survive the conversational web or economy is to have people talking about you. They can either love you or hate you, but if you’re stuck in the middle, you’re toast.
Understand that each and every customer counts.
Like Chris Anderson said, “the ants have megaphones.” You have to recognize vocal supporters and address vocal critics. One bad review by an influential blogger and you’ve lost a lot of opportunities and credibility in the marketplace. People don’t trust mass media. They trust people like themselves. If you feel like addressing individual users is too much hassle, you now see how far you have to come to truly participate in the new marketplace.
Do something worth conversation.
I’m not talking about a press stunt. I’m talking about developing offerings that people love. I’m talking about delivering customers service that is delightfully unexpected. Simply meeting expectations doesn’t count anymore. There are too many options to pick from. That mentality comes from a scarcity mindset and we live in an abundant world. Create joy. Make a difference. Get people talking.

Customers have always talked about brands, products and services. Today, through web technology, they can influence 100X the number of people with very little time and effort. It’s just a few keystrokes after all. Consumers have always owned the brand of businesses they interact with. Today they control the brand. Conversation is the key - true two-way conversation. Stop pushing content out. Starting interacting and engaging with your audience. Your eyes and ears will be opened and you’ll benefit and create loyalty if you do it right.

(adapted from my Fast Company blog post earlier this week)