Ideas

Google: the Local Business that Permeates My Life

By Bill Freedman

Many of you know that I’m a big supporter of local businesses. Recently I’ve noticed I’m doing a lot of business with a company that is fifteen miles from my home. That company is Google.

Google has a number of great products and employs many of my neighbors. They are also a pre-eminent global business with users and customers in every corner of cyberspace and the globe.

As I upgraded my Grand Central account to Google Voice, I took inventory of the Google Products I use every day. They include:

  • Google Adsensegoogle_logo
  • Google AdWords
  • Google Alerts
  • Google Analytics
  • Google Chrome
  • Google Mail
  • Google Maps
  • Google Reader
  • Google Search
  • Google Talk
  • Google Toolbar
  • Google Voice
  • Google Webmaster Tools
  • 800-GOOG-411

The interesting thing about my relationship with Google is that I pay them for one product (Google AdWords) they pay me for one product (Google Adsense). Everything else is no charge. Privacy advocates point out that I’m “paying” for these services by disclosing personal information about myself. My position is a bit different. I’ve accepted that there is no meaningful privacy on the Internet.  Everything we do on the Internet is closely monitored and analyzed so that someone can make an incremental buck.

In most parts of America and the world, Google is not a local business. It is a global competitor that is out-competing local institutions from newspapers to software companies with a unique business model. I’m able to reconcile my buy local bias with heavy usage of Google technology. Their products are good, they feed the local economy and they inspire innovation and excellence. I guess I’m comfortable living in a very competitive neighborhood.

Winning Customer Reference Programs in the Internet Age

By Bill Freedman

Virtually everyone can agree that customer references are critical tools for B2B sales efforts. In my career I’ve headed up numerous customer reference programs, interviewed a number of heroes at customer sites and written a lot of success stories. The sales team could never get enough customer stories.

Did these programs drive sales results? Yes. Were they what the prospective customer wanted? No.

The plain fact is that prospective customers want to hear directly from current customers…without any vendor involvement, filtering, positioning or influence. None. Nada. This is simply because:

  • End users generally trust each other
  • Customers are far less trusting of vendors

Can you earn a prospective customer’s trust while you are selling? Of course.  But that doesn’t change their preference for communicating directly with each other. With social networks and other Web tools, it has never been easier to bypass the vendor when checking references.

Try Peer-to-Peer Customer Reference Programs

Peer to peer conversations between prospects and customers isn’t a problem to solve but a fact to accommodate. Below are best practices for leveraging your installed base to create a winning customer reference program:

  1. Keep publishing success stories on your web site. They are extremely useful for establishing the facts around the business you serve and problems you solve. Accept the limitations of written endorsements and do more.
  2. Embrace transparency. Enable customers and prospects to share their experiences. Affinity groups on social network sites like LinkedIn are a start, but public forums and wikis running on your web site are better for customers, prospects and your brand.
  3. Don’t fret a few negative reviews. Everyone knows that your company and product aren’t perfect. Negative reviews give your prospects a chance to see how your business relates to customers. You may also use the Delighted platform if you want to create free customer surveys.
  4. Keep things lively. Nobody likes to show up to a dead party. Assign a community leader who contributes authoritatively and consistently, and who inspires reciprocity from your customers.
  5. Achieve critical mass. You want to get to the point where there are enough customer “ambassadors” who can and will respond on your behalf.

Points 3, 4 and 5 are very important as a whole. The biggest negative for any peer-based customer reference program is indifference.

1 Strategic and 6 Tactical Marketing Practices for Recessionary Times

By Bill Freedman

We’re all thinking about it: how can we excel at our profession as we settle in for a prolonged period of economic challenges. I approach this topic with optimism, which means that I see many ways that the future will be better than the present. ch-in-us-gdp-q1-2006 Before drilling down into the tactics, I need to climb up on my strategic marketing soapbox. While your tactics might change during a recession, your value proposition, message and target ought to be reasonably stable. Much of marketing is about the medium to long term. While your customers may have reduced budgets, their needs, their trusted vendor/channel relationships and your product benefits ought to be reasonably identical in good times as well as bad.

6 Tactical Marketing Practices to Start Right Now

Stepping off my soapbox. …Here are my contributions to the tactical marketing practices useful during recessions:

  1. Play offense—You still need to win the minds of customers.
  2. Innovate — There is no recession on new and good ideas. All other things equal, better mousetraps sell. SEO is essential for your business to grow, but you do not have to abandon your responsibilities and spend too much time on it. You can always outsource the management of your SEO to a SEO Sydney professional. And you can focus on addressing other business matters that need your immediate attention.
  3. Listen to stakeholders—Communication is a two way street. You have two ears and one mouth. Listen twice as much as you talk.
  4. Execution excellence—Nothing derails progress more than execution blunders. Meet or exceed reasonable expectations for timeliness and quality. This applies to everything from terms of service in contracts to typos on your Web site.
  5. Focus—Resources are now tighter, so you need to focus in areas where you are abundantly talented.
  6. Outward optimism—Not everything in the world is gloomy. The sun comes up. Stephen Colbert tells funny jokes. You meet new and interesting people. Be mindful of the gloomy environment and make it part of your inner calculations, but be positive when interacting with others…it really helps.

Is your marketing strategy in order? Are you innovating? Are you already working with companies like therankway.com? Which tactics are relevant for achieving your goals? Share your comments below.

A Fresh Look at Conversion Rate

By Bill Freedman

Conversion rate is the one of the most critical macro-level statistics and trends monitored by Web marketers. Simply put, conversion rate is the relationship between two easily measured quantities:

conversion rate formula

Tools like Webtrends, Omniture and Google Analytics simplify the collection and calculation of raw Web traffic and conversion rate. Investment decisions on lead generation campaigns and programs are now based on hard numbers such as conversion rate and program cost.

The easy job for the marketing team is establishing a “natural conversion rate” for your brand, products and company. Just implement an analytics tool, create conversion forms on your site or e-store and measure the results. The harder job, and the true measure of marketing success, is to steadily improve your conversion rate over time.

Improving your conversion rate at the macro level means that you’ve improved your effectiveness in one or more of identifying prospective customers, creating affinity with your brand and changing the individual behavior of Web visitors.

brain_image

Conversions happen in buyers’ heads and are only measured on your web site. Changing people’s behavior by getting them to consider and purchase a new product is a difficult and worthy marketing task. Think about it: do you give out your email address and name with each and every site you visit? Do you want site owners to contact you after your first visit to the web site?

Improving Conversion Rate: the Real Job of Marketing

Knowing your conversion rate is one thing. Having the skills to improve and optimize conversion rates over time is the real job of marketing. Communicating information of value, establishing trust and persuasion are the critical and harder tasks that require significant attention, deliberation and skill. Without an analytics tool hard-wired to customer brains, skill, experience, artistry and tenacity remain essential marketing skills.

Creating (Healthy) Workplace Conflict

By Bill Freedman

A recent study by Psychometrics Canada of 350 human resources professionals confirms that workplace conflict is ubiquitous. The study reports that the “most common causes of conflict are warring egos and personality clashes (86%), poor leadership (73%), lack of honesty (67%), stress (64%), and clashing values (59%).”

Violations of norms of civility and respect are negative forms of conflict that beg for immediate corrective action. The report suggests that leaders should quickly address toxic behavior by increasing supervision of problem personnel, providing additional clarity about expectations and modeling appropriate behavior. These findings are obvious but not always given sufficient management attention.

Healthy Workplace Conflicts Contributes to Improved Outcomes

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Even more interesting was that 87% of survey respondents believe that conflict can lead to positive outcomes such as

  • Better understanding of others
  • Better solutions to problems
  • Improved working relationships
  • Higher performance in teams
  • Increased motivation
  • Major innovations

I can’t agree more. When there is clear evidence to multiple people in the organization that things are off course or sub-optimal, conflict is a powerful tool to focus collective attention on the root cause and inspire improvements. The key is to focus on the evidence and potential solutions, not the personalities or behaviors.

While it’s easy to talk about the benefits of conflict, leading teams to embrace conflict, generate positive outcomes and avoid personal attacks is extremely difficult. The report concludes with several useful techniques for managing conflict such as understanding the situation in detail before acting and remaining positive amidst problems.

Thanks to the team at Psychometrics Canada for it’s insightful research on the beneficial aspects of conflict.

Volatility is the New Equilibrium

By Bill Freedman

Cognitive and biological science has demonstrated that our animal instincts replace human reasoning in the face of mortal threats. When individual survival is at stake, Charles Darwin trumps Adam Smith.

Instincts are powerful. They are put into practice without training or thought. But they aren’t always “right.” Those of us who’ve lived a little know that some threats are real while others are illusions of our imperfect ability to perceive the world around us. A noise in the dark will awaken a deep sleeper, even if it’s from the wind knocking over a trashcan rather than a lion preparing to pounce.

I started with a biology lesson because I believe that collectively, our imperfect instincts have distracted us from reality when it comes to the current economic crisis. Let me explain why.

The past twenty years of improving American prosperity have conditioned us that there is a single economic reality: consistent and predictable quarter-over-quarter growth. In the past year this perception has been challenged by sharp declines in prices for stocks, homes and labor. We’ve weathered other declines in financial markets, specifically in 1987 and 2001. The difference is that the current decline is broader-based and steeper than those other declines. No question about it, these changes are frightening.

With regard to the economy, I believe its time to turn decision-making back to human reasoning. The sense of mortal threat needs to be eliminated before reason can take over. Have you noticed:

  • The sun has come up every day
  • Your family still loves you
  • Police patrol our streets and teachers teach our children
  • Innovators are still looking for the next big idea
  • Entrepreneurs are still looking for the next opportunity
  • Lions didn’t pounce in my neighborhood last night

Volatility: It’s Not that Bad

The main lesson I’m learning from the crisis is that volatility is greater today then my comfort level allows. Yes, housing prices have fallen and markets are disorderly. Some individuals are facing “gambler’s ruin” which will severely impact their lives.

On the positive side, social services are available to soften the economic blow for many (though not all). I’m making the choice to accept the higher levels of volatility. Asset values will rise sometime in the future as certainly as the sun will rise tomorrow. Price volatility will remain high for some time and I need to deal with that.

Volatility is the new equilibrium. Purple is the new black. Democrat is the new Republican. Green energy is the new biotech. I’m ready to tackle volatility with my intellect and humanity.

Are you?