Word of Mouth From the Inside Out
Navel Marketing helps create organizations worth talking about and then arm customers to spread the word. On the surface, this may seem like a simple enough task, but too many companies today focus the majority of their efforts on how to get the word out with little thought as to why someone would care. Whether you choose to use more traditional tactics, such as advertising, or new methods, such as social media, your target market needs to know why you matter before they invest any time or emotion in your brand.
Marketing today is about meaning. Customers buy products but evangelists buy causes. You have to mean something in the marketplace before someone will take notice of your communications and, most importantly, tell others about them. Navel Marketing helps you develop the inner tools that create meaning for your customer, such as a cause, a unique and compelling position, a culture that reflects your cause, a simple repeatable message, a viral customer experience, and more. We then implement word-of-mouth marketing tools to help arm your customers spread the word.
Feedback on “Marketing From The Navel,” the Book
As many of you know, I have had my head down focused on finishing up several more chapters of my book, Marketing From the Navel: How to become a company worth talking about and arm customers to spread the word. After making it through several bouts of writer’s block, distractions from kids, and overtures from the occasionally needy wife, I have posted the first 5 chapters on my site. Visit the Book page to see for yourself.
Here is where you come in. I am ever the believer in crowd sourcing and feedback and would love to hear any ideas or suggestions that you might have. Writing a book, as any author knows, is like birthing a child. This experience has been no different for me. It has been a cathartic process that feels a bit like Dumbledore’s Pensieve (for all of you Harry Potter fans) – a place to empty my thoughts, experiences, and some things I have learned along the way.
Trying to avoid the naivete that many in the social media world exhibit, however, I have password protected these pages so that only those who ask me for the password can view them. Intellectual property is a fickle thing. The Table of Contents and the Introduction are available password-free. However, if you want to read past that point, simply drop me an e-mail at info@navelmarketing.com and ask for the password.
Thank you all for your support and help. It is because of my experiences with many of you that these ideas have come about. Any feedback you can offer on the finished product would be much appreciated.
E-Book Readers Are For Influencers
Recently, I was struck by a statistic that was highlighted in a July New York Times article. The article pointed out the fact that Amazon.com, one of the nation’s largest booksellers, is now selling more e-books than hard covers for the first time in history as of the second quarter of 2010. In fact, it was selling almost 1 1/2 times the number of e-books to hard covers. This trend doesn’t show any sign of slowing down either. In the 4 weeks prior to the article, that ratio was approaching 2 e-books to every hard cover.
Many credit the proliferation of e-book readers such as Amazon’s Kindle, Barnes & Noble’s Nook, Sony’s Reader, or Apple’s iPad for driving the consumption of e-books. Though Sony’s Reader has been out for several years, it was the introduction of Amazon’s Kindle in time for the Christmas shopping season in 2007 that launched this rapidly growing trend. The combination of hardware, content, and wireless access was the missing spark that lit the e-book powder keg. It is no coincidence that what started it all was a product called the “Kindle”.
As the proud owner of a Nook, I am amazed at how easy it is to buy, read, and share e-books. I have always been an avid reader (in my adult life anyway), however, I read significantly more with the device than I did before. There are always free e-books that are on promotion and many authors are even giving away the first book in a series in order to get you hooked (I can attest to the fact that it works). I have an e-wishlist with 30 books on it and add one every time I hear about a new book that interest me. Sometimes when I am just sitting around (which isn’t often) or waiting for a plane and get the hankering to read, I just surf the Barnes & Noble eStore to see what’s available.
However, there is an even bigger reason for the growth in e-book sales. In fact, it reminds me of a client I had in another industry. Roaring Springs Water Park is the largest water park in the Northwest. Their season pass program gave the deepest discount to its customers and they considered getting rid of the program. What we did was help them understand that those people who buy season passes were the influencers. They were people who were so passionate about Roaring Springs, they knew they would come to the park enough to warrant a season pass.
Instead of doing away with the season pass program, we helped them add significantly more value through added perks and offerings. One of those was Buddy Tuesdays, where season pass holders could bring a friend for $10. They also stayed open an extra hour on Mondays, just for season pass holders as well as offered a 4th of July BBQ for $1 – again, just for those who were members of “the club”. The result – increased season pass sales and a 30% jump in profit the first year from people who would not only come to the park, but stay longer and spend more money.
How does this relate to e-books? Those who purchase e-book readers are like season pass holders at Roaring Springs. These are the influencers and evangelists. These are those who read so often that they know an e-book reader will be worth the investment. As such, they are shifting their reading habits from regular books to e-books and the book sellers as seeing the shift.
How are Amazon and Barnes & Noble appealing to this crowd? By offering a package of value that goes beyond just buying books cheaper. Those who own e-book readers are part of a club. They get special deals, can lend books to friends, and (in the case of Barnes & Noble) even have dedicated content when you bring your Nook into a store.
What does this mean for the future of the industry? Books will never go away, however, as your influencers and evangelists shift their reading habits you will continue to see a shift in the balance of power. Before, the publishing and distribution process was controlled by a select few. Now e-book readers are making it much more simple to publish and distribute your intellectual property. Barnes & Noble even has a new program called Pubit! that allows to publish your e-book directly to their library. Amazon has its Digital Text Platform which accomplishes the same thing. ePublishing sites like YUDU and Scribd make self-publishing simple and social. The iPad even allows you to have all these ePublishing libraries on one device.
When your influencers are on the move, so goes your industry. The publishing industry is seeing a seismic shift similar to digital music, television programming, and movies on demand. Some might say these earlier movements paved the way. However, one thing is for sure – the book industry is changing forever. Who will lead and who will follow? Who will be caught saying, “it’s just a passing fad”? How will the democratization of publishing affect the quality of the content? All these questions and more have yet to be answered.
Where do you think the growing demand for e-books will take the industry?
If Social Media Were a Planet…
Many people refer to their geeky friends who spend all of their time in social media land as “living on their own planet.” Well, apparently now there is a map of that planet.
A recent Mashable story showcased how the social media landscape has changed in a short 3 years. Back in 2007, web comic XKCD published the original “Map of Online Communities”. If you visit the Mashable article, you can see the original compared to the latest rendition. Notice how the relative size of communities and online tools have changed between 2007 and the one created for 2010 by marketing firm, Flowtown, below. Twitter didn’t really exist back then, MySpace ruled the world of social communities, and “Farmville” would likely get you some strange looks.
Though many social media “experts” would have you believe that social media marketing means getting thousands of followers on Twitter or friends on Facebook, the landscape is always changing. I have often said that the tools will come and go, but the principles of marketing in a connected world will not. You still have to create something worth talking about, no matter the community in which your customers choose to talk about you.
Marketing is About What You Are NOT
I have been lucky enough to work with companies large and small. Each does have unique challenges depending on market size, industry, and business life cycle. However, no matter the size of the company, it seems everyone struggles with many of the same problems. For instance, every company has to develop something worth talking about before prospects and customers will tell others about it.
One principle which is true no matter the size is that marketing is as much about what you are NOT as it is about what you ARE. No matter the size of the company, it seems everyone struggles with focus. This became apparent again during a recent workshop I conducted in Kuala Lumpur, Malaysia for senior marketing executives at Pfizer, Abbott, and Phillip Morris. No matter what industry you in, the natural inclination is to cast a wide net. The prevailing thought is that if you focus your efforts, you risk alienating a portion of the market. In fact, the opposite is true in marketing. The more you narrow your focus, the more you broaden your appeal – because you mean something.
This means there is more power in being the company that specializes in software for the education market rather than the general market. There is more power in being the legal firm that specializes in IRS tax issues than the firm that does everything. There is more power in being a marketing firm that specializes in digital marketing rather than being a “full service” agency. It gives your employees a direction and your passionate customers something to tell their friends.
When you sit down as a team (or possibly a team of one) to create your marketing plan, don’t just determine what you are, decide what you are not. This takes discipline, self-awareness, and the slaughtering of a few sacred cows. However, especially when you are introducing a new product, division, or company, focus becomes critical to staking your claim and establishing a brand.
What DON’T you do?
Word of Mouth Marketing – Dilbert Style
A recent Dilbert cartoon nailed most companies’ approach to word of mouth marketing:
After you have yourself a quick chuckle, you’ll realize how much truth there is in this simple comic strip. How many companies today have heard of word of mouth marketing as a tactic and decide they need to add it to their “marketing mix”? I know have had too many companies approach me asking if I can do some of that “word of mouth stuff” for them. The problem is that marketing doesn’t happen in campaigns.
Let me share a secret I shared with the attendees at a recent workshop I conducted. The secret to word of mouth marketing is this:
- Create an organization worth talking about
- Engage with your customers
- Arm them to spread the word for you
Notice step 1 is to have something worth talking about. How many companies do you know who miss that first, critical step?
How do you become a company worth talking about, you ask? Check out the “innie” model for a few ideas.
Any examples of companies you have seen who seem to epitomize the comic strip above?
LinkedIn is the Business Lunch, Facebook is the Cocktail Party
One of the most often asked questions I receive is “when do I use LinkedIn and when do I use Facebook?” People, especially business professionals, are looking to take advantage of popular social networks as a way to build their personal networks, add to their “Rolodex”, and build professional relationships that can help them further businesses and careers. So when it comes time to select somewhere to spend your time, the natural question is, “where do I focus?” (Twitter is also effective, but we’ll leave that one aside for now)
The short answer is – both. It seems like a lazy answer, but let me explain why. When you want to build a true relationship with someone in the analog world (not online), how do you typically go about it? You will most likely set up some sort of formal meeting, such as a business lunch. Once you get through the formalities and a couple of business lunches, you begin to build your relationship on more of a personal basis. It is at that point you feel more comfortable talking about family, hobbies, likes and dislikes, etc. This is typically something you would do at a cocktail party or after hours event, such as grabbing an adult beverage together.
If you want to build lasting relationships with high value contacts, start with LinkedIn. LinkedIn is the online equivalent of the business lunch – quick, professional, exchange of business cards, a few probing questions, etc. Once you have built your relationship at the professional level, try broaching the personal realm using Facebook. Facebook is the cocktail party. This is an area where you can ask, “how are the kids doing?”, “how was the fishing trip?”, and “how is the new house coming?”.
Online relationships often mimic what we do offline. Take advantage of all the opportunities you have to connect with people. However, just because you are “connected” doesn’t mean you are friends. As the old saying goes, people do business with friends. We have unprecedented access to each other. Use that access to build friendships, both online and off.
Social Media Exhaustion
There are many pundits talking about social media as a “bubble”. Just as we experienced the recent housing bubble or Internet bubble of a decade ago, they argue that social media will reach a point of diminishing returns. While I don’t believe that social media will ever disappear, there is some truth to this argument that we need to take into account.
I remember a mere 5 years ago I was doing seminars on what a blog is, what a podcast is, and how you use these in a business environment. Those seminars consisted of helping people set up their tools and learn how to use them in a meaningful way. Today, everywhere you turn there is a newspaper article, TV news segment, blog, or social network posting with someone’s opinion about social media, how to use it, and where it is going.
I was driving and listening to a sports talk radio show recently and heard “Tweet of the Day” segments and even interviews of athletes on what they Tweet about. Late night comedy hosts have bits about Facebook and Twitter almost every night. Also, since when did it become hip to plaster a “Follow us on Twitter” or “Friend us on Facebook” logo on every possible piece of company literature? When I saw the phrase, “WWJT? What would Jesus Tweet,” I knew it has hit mainstream America.
So what’s next?
I think many people are beginning to experience what I have for about the last year – what I like to call social media exhaustion. It is not that social media are not valuable. They are simply on overload. You reach a point where you feel as if you are the digital version of Henry David Thoreau. You just want to go find a pond somewhere and build yourself a cabin – sans broadband.
Remember when social media used to be the tool we used to escape all the noise of the advertising world? Now social media has BECOME the noise. We have created the very environment we were trying to avoid.
Is social media a bubble ready to burst? Possibly. The more likely scenario is that more of the classically trained marketers, like myself, are going to find ways to use this one-on-one medium to avoid the noise and establish relationships the old fashioned way… by earning them.
If you are tired of the noise, let us know. Bring us your tired, your worn, your huddled masses, and your fed up anti – Mafia Wars/Farmville/”Business Opportunities”/Group Invitations/Cheap Software activists. Come find rest for the social soul and value for your time. Tell me how you avoid social media exhaustion…
Strategy First, Then Tactics
(The following is an excerpt from the Introduction of the upcoming book Marketing From the Navel: How to Become a Company Worth Talking About and Arm Customers to Spread the Word)
I have a favorite saying by the famed war strategist, Sun Tzu, that says, “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” In the marketplace today, there is a lot of noise. Anyone who learns how to use Facebook is all of the sudden a social media “expert” and the bookstore shelves are littered with publications giving their take on what this new reality means from a marketing perspective. Most of this literature tries to tell you what is going on in the market but few give you the tools to do something about it.
If you were looking for a Twitter or Facebook “tips and tricks” book, then you have come to the wrong place. There are plenty of excellent publications available that will help you hone your skills in one particular technology or another. There are some publications that will give you a task list (i.e. “write a blog”, then post it on Facebook, then Tweet about it). Others will give you a list of rules for online etiquette.
Stephen Covey talks quite a bit about “paradigms” in his writings, such as The 7 Habits of Highly Effective People. A paradigm is a mental map, or the way in which we see the world. He uses the analogy of an iceberg to illustrate that the tip of the iceberg is our behaviors or our attitudes. If we want to make small changes in life, we work on the tip of the iceberg. However, if we want to make large, quantum changes, we work on the mass of the iceberg beneath the water, which is our character. It is as Blaine Lee states in his book, The Power Principle, “The principles you live by create the world you live in; if you change the principles you live by, you will change your world.”
I believe organizations work the same way. For so many years, we have operated under a certain paradigm. The industry as a whole has been making small changes by simply changing their tactics or their attitude about the consumer revolution. We have merely added social media or viral marketing as arrows in our quiver. I want to do more than change your list of tactics, I want to change your paradigm. I want to change the way you think about marketing.
Secondly, you most likely hear a lot of “noise” in the marketplace about new marketing tactics and how the old ways are dead. The Internet bubble of the late 1990s taught us many lessons about hype versus substance. The biggest lesson of all was that core business principles don’t change, but remain constant. For example, you still need a business plan that will generate revenue at some point (being bought out for millions of dollars because you have a lot of users doesn’t count). Also, cash is still king, and the faster you burn through your venture capital money, the faster you will make it to the unemployment line. This is the reason Amazon.com is still growing, yet Pets.com is a mere sock puppet memory. The Internet bubble taught us that though the delivery mechanisms may change, the core principles stay the same.
While there is significant hype about new forms of marketing, whether it be new media, word-of-mouth, or simply new places to plaster ads (i.e. cell phones, urinals, bases in baseball stadiums), there is a risk in all the hype. People are again forgetting the basic principles of marketing that still apply and are more important than ever. Like core principles in the universe (i.e. do unto others as you would have them do unto you), there are core principles in marketing that never change – despite the tactics. Many of the technology tools available today, such as Facebook, Twitter, or LinkedIn didn’t even exist 5 years ago. The tools may change, but if you understand the principles you can be successful no matter what the hot new technology is.
In the following pages, you will hear familiar terms, such as “positioning”, “customer segmentation”, and “customer experience”. Do not be alarmed! These are simply some of the core principles of marketing that, when applied correctly in the new paradigm, are just as powerful and more relevant than ever.
In this book, I introduce two separate models. The first model will help you develop a company worth talking about. This is the strategy component. Before you do anything online or off, you have to create something worthy of our attention, worthy of our passion, and worthy enough to pass along. Otherwise, you will merely create the “noise before defeat.” The second model takes the buzz-worthy organization you have now created, and shows you how to deputize your own customers to take your message out and spread the word. This is the tactical component that will help you achieve a quick “route to victory.”
There were many who were too comfy in the existing power structure and existing paradigm. Marketers controlled the message, the medium, and the content. Today, they are no longer in the conversation, and that elicits great fear in executive corridors and ad agency war rooms. However, those that embrace and implement the following models and principles will find that it is an amazing time in our profession. Never before have we been able to engage with each consumer on a one-to-one basis. Never before have we had the key influencers in our target market gathered together in a central location. Never before has a message been able to spread so quickly.
All you need are the tools… the tools of the revolution.
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Are The 4 Ps Dead?
(The following is an excerpt from the Introduction of the upcoming book Marketing From the Navel: How to Become a Company Worth Talking About and Arm Customers to Spread the Word)
The 4 Ps
In 1960, a concept was introduced by E. Jerome McCarthy that identified the four basic tenants of marketing as Product, Price, Place, and Promotion or, as it is more commonly known, the 4 Ps. Anyone who has ever taken a marketing class from then until now is taught the 4 P’s as the basic overview of marketing. These simple questions are what make up the basics of marketing:
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What kind of product are we going to produce?
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What is the right price for this product?
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How are we going to distribute this product?
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How are we going to promote and sell this product?
The purpose of McCarthy’s model was to further the understanding that marketing is much more than selling and advertising. In actuality, Selling and advertising only make up the promotion component of McCarthy’s model. According to McCarthy in his book Basic Marketing: A Global-Managerial Approach, “The aim of marketing is to identify customers’ needs – and to meet those needs so well that the product almost sells itself.” Easy enough, right?
The truth is that today many marketers are declaring the 4 P’s dead, or at least no longer relevant. There are many marketers who have even added more P’s to the mix, such as people, process, physical presence, or (as the word-of-mouth/social media crowd like to say) participation. The big question is can any product almost sell itself, or are there other critical factors in the new reality of the consumer movement?
The Missing Ingredient
While the 4 Ps offer a good basic framework for understanding the all encompassing nature of marketing, they are missing one key ingredient that has been made blatantly apparent by the consumer revolution – the consumer’s involvement in the process. The 4 Ps are segmented like an organizational chart, chopping up the functions of marketing in 4 bite-size chunks. But what about the fickle nature of the consumer? What if what meets their needs well one day doesn’t the next? What if your product is priced correctly, but so are the other 123 options on the market? What if the best person to design your product is the consumer? What if the consumer discovers your product is manufactured in sweat shops in India by 8 year-olds because someone walked in with a camera phone and then posted it on YouTube, their blog, and their Facebook page?
As I mentioned before, the world has changed since advertising’s glory days in E. Jerome McCarthy’s 1960s. However, many marketers have not. I have had the opportunity on many occasions to guest lecture in a university marketing class or judge a high school or college marketing class and am disappointed, to say the least, to see that our marketing education has not kept pace with the changing nature of marketing. Marketing educators still spend the majority of their time on the 4 Ps (with some attention paid to segmentation) and then dive into advertising. Some might say that this is indicative of the average age of the tenured professor, the fact that so few educators are practicing marketers within the wild west of the last 5 years, and some might even say it is a flaw in the system.
According to the existing system, educators lump this new reality of the consumer revolution into “interactive marketing”, because a significant portion of it occurs online. What they fail to see is that we need to re-address the underlying models upon which marketing is based. It goes beyond adding more “Ps”, but needs to address the new reality that we as marketers face today. We need a model that helps us understand the X factor that the consumer plays in the marketing process. We need a model that helps us connect with and engage the consumer in ways that they are most comfortable with. We need a model that helps cut through the clutter that exists in the commoditized markets in which we compete by tapping into the ability of human beings to influence each other.
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