Wednesday, August 22

Being Steve Jobs: Where The Open Forum Got It Wrong

Barry Moltz is a pretty smart guy. But he really blew it when writing up why business owners don't want to be like Steve Jobs for the Open Forum by American Express. Sure, with a broad brush stroke, we can call Moltz right — it's one thing to be influenced by someone, it's another to mimic them.

So he's right in saying that small business owners don't need to learn how to be "just like Steve Jobs," but not for any of the reasons included on his list. The real takeaway from Jobs is that you never want to compromise being yourself. And Jobs, if he was good at anything, was being himself.

Rehashing the list: Where it's on and where it's off.

Demand More From Your Employees. Moltz took exception to the fact that Jobs frequently told employees that they could never do anything right. Some of them were even afraid to take an elevator ride with him for fear of losing their job by the time they reached their floor. Moltz says it's better to be just be blunt (but not lambasting them or embarrassing them in meetings).

But there is another dynamic here that is missing. Jobs operated from an position that no matter how good something was, it could always be better. He was right. The challenge that many small business owners have is that they are always trying to reach some place of complacency where they can just go with the flow. That place doesn't exist. Maybe Jobs was too harsh for some tastes, but people knew where they stood. Those who excelled also developed a knack for fearlessness, which is critical for creativity.

Tell Customers They Are Wrong. Jobs also had a knack for telling customers that they were wrong, sometimes firing off emails in the middle of the night saying so. Moltz says the lesson is to cool off before firing away an email. The advice is mostly right. I tell people the same thing all the time, except when they are passionate. In those cases, I tell them to draft it up exactly what they are thinking as long as they don't hit the send button until they can read it fresh in the morning.

Still, I think the bigger lesson here is that sometimes you have to tell customers they are wrong. The quickest way to lose a customer is do exactly what they want when it's the wrong way and watch it fail. Communication people, in particular, do this all the time. They think they are preserving an account by doing what customers tells them to do (even if they know its wrong). Then they lose the account anyway because the customer holds them accountable to the outcomes. The grief isn't worth it.

Claim Your Employee Ideas. Moltz relates how Jobs frequently reviewed employee ideas and presented them on as his own. Moltz says it is always better to share credit when credit is due.

Jobs was hardly the only person to do it. Andy Warhol and Charles Eames most immediately come to mind, which is why I have mixed feelings about placing idea ownership in the black and white column.

While Jobs' style is not mine own, many small business owners could use a dash of it. It isn't necessarily appropriate to steal ownership, but neither is it appropriate that small business owners undervalue themselves. They create the environment, fund the work, inspire the direction, etc.

Never Settle For Less Than You Want. Moltz sets up the lesson by showing Jobs as uncompromising on two points — both in business and smallest details. He wasn't afraid to break bad contracts and cared about the inane (even if it what kind of flowers are in a hotel room). Moltz partly agrees, saying that you ought to never stick to a contract that doesn't meet your needs and ought to push people past their limits. But he wants to negotiate resolution and leans light on the details.

I've met a few self-made millionaires and billionaires. All of them sweat detail. I know one who won't eat an orange unless it measures out to perfect circumference. I often wonder if maybe they are right. Maybe those inane details matter. Or maybe you need to decide if they matter to you.

More importantly, small business owners sometimes get mixed up anytime the word "negotiation"  comes up in a conversation. It's because many small business owners have their words mixed up. "Negotiate" and "compromise" are not the same thing. You can negotiate a win-win contract. But "negotiating resolution" smacks of compromise, which is a settlement of mutual concessions.

The last point is probably the biggest takeaway of all. Compromises are often lose-lose propositions, with both parties losing, even if one party thinks they are winning. Small business owners can't afford to play that game. If you can't negotiate a win-win with someone but you can with someone else (assuming quality, price, etc. are all equal), you have to move forward. If you compromise or force someone else to compromise, then you're likely headed in the wrong direction. Never settle, but never ask someone else to settle either.

Monday, August 20

Emerging Markets: Will Shift Social Scores

A recent study by eMarketer pinpoints something marketers may need to consider in the near future. Emerging markets lead the world in social networking growth. And these markets are very likely to eclipse North America (China already did).

This simple but important truth could change the way people look at online measurement. With the fastest growth rates in the Middle East, Africa and Asia-Pacific, places like North America will represent a smaller and smaller portion of the global audience.

Specifically, some estimates suggest 78 percent of the U.S. population is connected to the Internet, but it only represents between 10 and 11 percent of the global online population. Conversely, 38 percent of China's population already represents 22 percent of the global online population. India already represents 5 percent of the global online population, with only 10 percent of its population.

It also means marketers have to erase some of their previous preconceptions in terms of influence or importance. Looking at Alexa rankings or influence measurements might not mean what social media experts told them they meant. Some search engines will likely be impacted too.

There are several ways to think about the global population shift.

One old rule of thumb (although it was as erroneous then as is it today) was to ignore anyone who didn't meet a specific global threshold. Nowadays, it's even less true. Unless a site or social network account is attempting to cater to a global audience, it's not likely to have a global rank as high as its country, regional, or local rank.

Ranking or popularity doesn't have anything to do with content quality. It has everything to do with potential reach. If the potential readership has a smaller audience, then it likely won't perform at higher levels. It's a lesson I wish some communicators would have considered before dropping their communication blogs.

Some thought they were losing their audience, but the reality was that they were catering to an ever shrinking reach against the total population. Ergo, as online demographics diversified, a smaller percentage of people were interested in communication-related topics. Likewise, as time goes on, fewer people may be interested sites with English content or Western-style visuals or even hot topics.

Mashable scratched the surface of how global participation can shape a network. It compared participants in the U.S. and participants in the U.K. on Pinterest and discovered some very different statistics. In fact, the interests of U.K. participants looked vaguely familiar to me. They were similar to the online interests of U.S. participants five years ago (but on different networks).

What seems to be happening on the small scale is similar to what happens on a global scale. In this case, U.K. small businesses and consultancies are moving into Pinterest ahead of consumers. In the U.S., the migration patterns were flipped. Small businesses mostly stayed away until public relations and social media specialists began taking an interest, based on independent blogger traffic spikes.

It's a small example, but one worth considering. If your content or connection isn't geared for a global audience, you'll either have to accept your company's smaller global reach or begin altering the content in consideration of other cultural expectations and influences. The latter isn't necessarily the best idea. It all depends on what your companies does, who it serves, and where those people might live.

Friday, August 17

Marketing Research: Listening For You Or To Them?

Last year, American Express must have been pretty happy. It had the most dramatic increase of voice and positive sentiment across social networks among banks. This implies it was doing something right. But was it really? Maybe all the other banks were doing something wrong.

The real evidence of an outcome came later. In April 2011, the company reported a first quarter net income of $1.2 million, up 33 percent from $885 million the year prior. The baseline analysis alludes to the idea that sentiment may be predictive. In this case, maybe. American Express had just moved aggressively into online commerce.

But there were several other factors in play for the company. It had settled litigation with MasterCard and Visa. It had launched several premium products. Cardmember spending was up 17 percent.

One year later, the story was much the same but not nearly as strong. Cardmember spending was only up 12 percent and net income only grew 10 percent (without the benefit of settlement payments). And according to Digital: MR, it was still the most talked about bank on social networks.

It also carries a great introductory APR, but its regular APR is not nearly as competitive. And its stock performance, which is among the top ten, does not reflect the same exuberance as its conversation points.

Sentiment analysis can be useful, provided it is not a distraction.

Personally, I'm a big fan of sentiment analysis. It can be used as a benchmark for communication efforts. But marketers ought not mistake sentiment as the end all in marketing measurement, making decisions that upturns mean "do more of the same" or downturns mean "do less."

In fact, in digging deeper into the American Express sentiment, we found that much of the buzz comes from a smaller group of passionate advocates than, let's say, Citibank, which has considerably more reach from a broader base of people. My only point is that not everything is as it appears to be.

My second point is that if your marketing team is only using sentiment analysis as a means to track positive impressions and share of voice, then the research time is probably being wasted. There is a big difference between listening "for you" or listening "for an industry" and really hearing consumers.

In reality, only about 20 percent of research investment ought to be tracking impressions or attempting to snuff out complaints or improving positive:negative sentiment ratios. There is something much more important to consider: who are these people anyway?

The more you hear from consumers about everything else, the better your communication.

Instead of dropping every dollar on sentiment analysis, there are much more interesting things to learn about any particular segment of the population you might identify as customers or prospects. And none of it really has to do with your company.

What kind of music do they like? What were the last three movies they saw in theaters (and liked)? What were the underlying messages, if any? What kinds of books are they reading? Are they rigid in these tastes or more eclectic? Would they rather go to a fancy restaurant or buy new clothes? Is there a difference between what they buy and what they like? What kind of political leanings do they have? Are they aggressive about it or not? Do they cook? Are they struggling or secure? So on and so forth.

While you always have to keep in mind people feel this level of marketing research seems creepy, the takeaway is that marketers have a better chance of building a relationship if they hear what people are saying instead of listening for the latest mention. Or, in other words, marketing insight might be more powerful than marketing research.

It's a valuable lesson from old school copywriting — you communicate to a person, not an audience.

Wednesday, August 15

Alienating Publics: Every Message Is Public

You would think communicators would get it by now. While it always pays to tailor your message to an intended audience, there are no intended audiences anymore. Everything is subject to global opinion.

In 2008, Yahoo! became a public relations class example when it failed to consider that announcing cutbacks might have unintended consequences. The layoffs were announced to shareholders first, with smiles to suggest that the company was turning a corner. The lack of empathy impacted employees.

Flash forward four years and communicators have come full circle. President Obama is still trying to correct the misstep with his infamous "you didn't build that" speech. Presidential candidate Mitt Romney had a similar experience during the opening ceremonies of the Olympics. And CEO Dan Cathy did it when he was explaining his stance on same-sex marriage while speaking to Baptist Press.

Communication is never isolated to a single audience.

It is the easiest lesson to take away from the Chick-fil-A controversy. In considering his audience, sharing what he believed to be similar values with those who would read the Baptist Press made sense. Chick-fil-A wants to convey itself as a family-friendly restaurant chain.

Where it doesn't make sense is within the purview of a global audience. Words, even if there is no evidence of action, have consequences. But this isn't a just lesson for Cathy. It is a lesson for Chicago Alderman Joe Moreno too.

Moreno has been attempting to brush off his announcement that he will block Chick-fil-A's effort to build a second Chicago store. He has since backed down, simply saying he wanted to review their anti-discrimanation policy. At least his message is better than Mayor Rahm Emanuel, who has resorted to saying that he doesn't want to say any more and inflame the situation he already inflamed.

The aforementioned stories also have the best possible quote from Kathleen Hall Jamieson, director of the Annenberg Public Policy Center at the University of Pennsylvania. She said to Emanuel: "You're alienating conservatives in your city. It's difficult to alienate that many people in one lump. To do it concisely and memorably is a major accomplishment."

To alienate people concisely and memorably is a major accomplishment. 

No matter who you feel it fits best, it's the most concise and memorable lesson anywhere. The art of communication is hard not because people are afraid to be straight, but because they have to communicate their mission, vision, and values in such a way that it is honest without being hurtful.

Pretense: "Honey, do I look good in this dress?"

Pick one: 1) "The other one has always been my favorite." 2) "It makes you look fatter."

While some people are remiss that I haven't come out swinging with a stance on this issue, we can learn more by appreciating the finer art of communication. Think before you speak. And if you don't, take a moment to think about who you might have hurt with that last comment. You don't need fists to be a bully.

It's a lesson that Chick-fil-A has taken to heart. Consider the statement about the "Kiss" Day protest.

"At Chick-fil-A, we appreciate all of our customers and are glad to serve them at any time. Our goal is simple: to provide great food, genuine hospitality and to have a positive influence on all who come into contact with Chick-fil-A. — Steve Robinson, executive vice president, marketing, Chick-fil-A, Inc. in response to "Kiss" Day.

Monday, August 13

Liking It Now: The Attention Generation

A recent study by Performics, a marketing firm owned by Publicis Groupe, finds that 49 percent of respondents prefer text messages over phone calls and 40 percent are more comfortable connecting with people online than in person. In other words, more people are connecting to social networks but disconnecting offline.

It seems participation also comes with expectation, with 49 percent of social network members annoyed, sad, hurt, or even angry when people do not like their status updates. In fact, 75 percent expect a response and 41 percent expect a response within the hour. Others, 21 percent, expect responses in 1-6 hours.

Social life is changing behavioral etiquette.

While it is no surprise that online on demand has become increasingly dominant, some people might be surprised just how much time is being invested in maintaining online connections. In an average week, for example, women spend 9.4 hours on their mobile phones (outside of texts, phone calls, and other connections) and men 5.8 hours. That doesn't even count other devices like tablets and desktops.

Even when people are engaged in other activities, they are likely to remain connected. Approximately 55 percent say they watch TV, movies or video on their computer at least once a week while 29 percent watch on game consoles and 28 percent watch on mobile devices. Multi-tasking has become the norm.






Naturally, the study was undertaken to assist marketers in understanding the behavioral changes in consumers. One notable finding was that individuals frequently place brands and people on equal status.
 
"These new participants are comfortable increasingly replacing real-time communications with social media interactions," said Daina Middleton, global CEO of Performics. "In this new social normal — one where people prefer online communication and maintain high expectations about two-way relationships — brands must utilize social channels to build exceptional, interactive digital experiences."

Basically, people want brands and brand representatives to interact with them like people, including reciprocal acknowledgment. However, brand managers ought to be cautious in overreaching. While online participants expect responses, other studies show interruptive marketing has negative outcomes.

Consumers, after all, are in transition. While social networking has become the new normal, it also comes with unintended consequences. As more think that social media runs the risk of making us less social, marketers have to avoid becoming part of the problem by inflating urgency for no reason.

Friday, August 10

Missing The Message: Apple Not-So-Genius Ads

When I first saw the advertising campaign rolled out by Apple for the Olympics, my stomach dropped. It was one of the biggest advertising missteps since the Tropicana Orange Juice rebranding blunder.

There were two schools of thought behind the advertisements and no champions. Either the campaign intent seemed to be an attempt to reach a broader group of consumers who are older and less tech savvy or the agency that created the ads was also thinking of the past.

They wanted to harken back to the "Get a Mac" campaign created by ad agency TBWA Media Arts Lab. On that measure, they failed too. The old "Get A Mac" campaign ads were from a different era when Apple was the underdog.

The "Get A Mac" ads also represent some of the best comparison spots in history, hard hitting but not so hard that anyone thought they were mean. The characters cast immediately disarmed any negative impressions. Other than using a person, the new campaign bears no resemblance to it.

The Apple Genius ads represent everything the company never intended.

In total, the new ad campaign consisted of a series of three spots, each focusing on the Apple Genius as a character. If you haven't seen them, I'm including one. I couldn't bring myself to share all three.



There are several reasons the ads don't work, but let's highlight the five most obvious.

1. Apple has had a tradition of showing people what's possible without any help. These advertisements turn the tables 360 degrees and tell everyone that you can't do anything on your own.

2. Apple has had a tradition of making its commercials about the customer. These advertisements are clearly about how smart Apple can be.

3. Apple has had a tradition of celebrating the product without being presumptuous; its genius is matter of fact. These advertisements sell something that doesn't really come in the box.

4. Apple always had a knack for creating a clean but edgy brand atmosphere right down to the people in its brick and mortar stores. The person cast doesn't look like any Apple Genius who helped me.

5. Apple has had a tradition of simplifying the message so it conveys one single point. This one rattles off various software and features that the only message is how much you have to buy. Nothing sticks.

It makes me wonder. Did the fine folks who worked at the agency responsible ever see this video?


If they never did, I hope Apple takes heart and makes it mandatory for anyone who wins a creative bid again. At a time when consumers are still saddened by the loss of Steve Jobs and feel uncertain about the company's direction, developing an advertising campaign that marks an end of era just reminds us.

Yes, these advertisements were something different, but not in the way Apple defined it. Broadening the base with low brow advertising isn't the answer. It's about putting possibility in the hands of everybody. You know, like ping playlists, which were still broken when I wrote this piece.
 

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