Church of the Customer: December 2003 archives
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December 30, 2003
When finance guys take over sports
Writer Scott Ostler on sports fan vigilantes:
The fan was fed up with [other] fans brainlessly waving and pounding anything that was handed to them at the turnstile. He was sick of everything being sponsored, like the Acme Transmission clutch play of the game. "And that fumble," said the fan, "was your Outback Steakhouse Heimlich-maneuver cough-up of the game."
Top 10 customer resolutions for 2004
Answer the following question: "My company could have created customer evangelists this year if only we had ..."
Missed opportunities in 2003 are staring you in the face in 2004. We frequently hear from marketers that customer-centric activities would certainly improve their company's revenues, but they can't overcome the internal inertia.
Change is incremental in most companies, so here's a list that might help turn the wheels. Pick whichever one seems easiest, and take ownership of it in 2004.
1. Resolve to gather more customer feedback. Call at least one customer every week. Schedule it on your calendar now.
2. Resolve to launch a blog about issues affecting your customers. Be personal and topical. Do not let your PR department sign off on every post.
3. Resolve to be more authentic and personal in your email communications and website content. Forbid jargon.
4. Resolve to offer at least one case study about your company's successful marketing program or processes to your industry's trade magazines. Write down your top-of-mind idea right now.
5. Resolve to conduct one less focus group. Instead, hire an outside firm that will interview your best customers about why they love your company and what you must improve upon.
6. Resolve that you will communicate with your customers on a regular basis, thanking them for being a customer and asking what you can improve.
7. Resolve that you will speak to at least three groups and associations about industry issues and solutions in 2004. Sub-resolution: Your presentations will not be about you or your company.
8. Resolve to sub-divide at least one product or service into bite-size chunks that are inexpensive, easy or fun. Sub-resolution: You will not let the engineering group change your mind about this.
9. Resolve to invite your most enthusiastic customers into a program that rewards them for their loyalty or word of mouth. Sub-resolution: The rewards are access, not cash or points.
10. Resolve to create at least one new product or service that will change the lives of customers.
As an old, impish character in a sci-fi movie once said, "Try not. Do."
Happy new year!
December 28, 2003
New York's smoking ban not killing business
Here in Chicago, a proposed ban on smoking in bars and restaurants has been debated for a year (a vote is scheduled for January 2004, but many past "scheduled" votes have come and gone).
An industry-backed group called "Chicago Citizens for Freedom of Choice" claims that "non-smoking laws have been demonstrated to hurt the economy of a city and lead to the closing of many bars and restaurants."
But a New York Times story today says that isn't so.
"The early evidence is that many businesses are unharmed," the Times report says about New York City's far-reaching smoking ban. To the contrary, the owner of McSorley's Old Ale House says the city's tough law against all restaurant and bar smoking "may be helping us because it's driving people to drink."
Tim Zagat, publisher of the famous restaurant guides, says the real economic benefit of a far-reaching smoking ban is that people dine out more frequently. "I don't care how you cut it, I think it's long-term good for business."
There's a good discussion of this topic among Chicagoans at 37 Signals.
December 27, 2003
Customers, front and center
While researching customer management programs recently, I saw two companies smartly featuring their customers as web site front door greeters.
At Salesforce.com, the company prominently features a customer, his picture, name, title and a quote. No ambiguity there. A great testimonial is this site's most prominent marketing tactic.
At Best Software, makers of Act!, the web front page features the company's "Act fanatics." A few clicks deeper produces 30+ testimonials and case studies of how Act! has been incorporated into the business lives of its fully identified customers. Best Software has smartly invested marketing resources into helping customers tell the story of Act's value.
In the customer evangelism model, companies are communities of customers, not just product and service features and benefits or the lowest price. Chances are your company has evangelists, fans and fanatics. Are you providing an opportunity for them to voluntarily demonstrate their love?
December 25, 2003
A sound sales strategy
Tomorrow, the day after Christmas, is D-Day for many businesses: It's expected to be the biggest shopping day of the year, eclipsing the day after Thanksgiving as most important.
A New York Times story about this day of marketing days offers more evidence that focusing on existing, satisfied customers makes for a profitable strategy:
* The Gap, in the midst of a company turnaround, directed its most intense marketing to old customers with "bounce-back" coupons -- good for a rebate only on a second visit -- as opposed to storewide percent-off sales. Retailers say storewide sales foster one-time-only shoppers instead of repeat customers.
* AnnTaylor, Pacific Sunwear, Urban Outfitters and Men's Wearhouse stores also "focused their efforts on their existing customers successfully and have likely gained wallet share,'' a UBS analyst wrote in a report issued this week.
December 23, 2003
The benefits of a well-defined cause
From "Life and Def," the provocative autobiography of Russell Simmons, the entrepreneur who has expertly guided hip hop from a niche musical style into an American cultural phenomenon:
The people who are excited about what you're doing and who will defend you against those who are offended -- those are your core people. From Run-D.M.C. to Public Enemy, from the Beastie Boys to Onyx, from Def Comedy Jam to DMX, I've been involved with so many projects that have been vilified, demonized and dissed. And that's been good. The haters have always solidified the fan base for all these projects. Playa haters are some of the best publicists around. Please, keep up the good work.
December 22, 2003
Understanding customer evangelist behavior
Your customer evangelists are typically Internet junkies, too. Putting your best foot forward online is essential to winning the hearts and minds of frequent-forwarders.
That's among the findings of recent work by Washingtonpost.com and RoperASW, which tracks the 10% of the population that shapes the attitudes and behaviors of the other 90%. Roper calls them "influentials."
Other findings include:
* 77% of influentials have Internet access, compared to 50% of the general population.
* 67% of online influentials are asked for or forward advice and information about products and services.
* Online influentials who forward advice about product and services do so to an average of 5-20 people.
In a B-to-B study, researchers found that:
* 77% of business decision makers recommended the Internet as the best place to discover new products or
companies.
Here's where you'll find the complete survey results:
* Influentials Online
* Business Decision Makers Online: Usage & Opinions of a Critical Online Audience
* Purchasing Power Online: Usage and Purchasing Habits of Affluent Online Adults
December 19, 2003
When does Eliot Spitzer sleep?
Fresh from personally changing the way mutual fund companies slyly steal from customers and how some Wall Street investment banks scam everyone, Eliot Spitzer is taking on the scourge of the Internet: spammers.
Today, Spitzer filed suit against three marketing companies that are choking the Internet to death with spam. Squarely in his sights: OptInRealBig.com, a company Spitzer calls the third-most proflic sender of junk email. Spitzer vows to force the company and its leader, Scott Richter, into bankruptcy.
"We are standing up and fighting," Richter told the New York Times. (It's high irony that the "Code and ethics" web page of the Email Marketing Association, of which Richter is president, says simply, "Coming soon.")
This good vs. evil battle promises to be entertaining and educational. While federal watchdogs usually mindlessly watch customers get beat up, Spitzer fearlessly sprints toward customer muggings and does something. As the customer's superhero, Spitzer holds a revered seat in the Church of the Customer.
Customer evangelism hands-on training
We've just announced a February 2004 Customer Evangelism University workshop in Chicago.
It's designed for people and organizations who rely on customer referrals or see little or no return from traditional (and expensive) marketing tactics. Word of mouth and customer evangelism programs are helping companies of all makes and sizes grow top-line revenues via stronger referral rates and fatten bottom lines by recruting existing customers to become part of a volunteer sales force.
There are two workshops to choose from:
- February 17, 2004: A full-day immersion into customer evangelism tenets, strategies and tactics.
- February 18, 2004: A full day of specialized work for people who wish to train or consult with others inside or outside an organization on customer evangelism practices. Registration includes a wide assortment of training materials.
Past attendees say:
"An incredibly energizing two days -- I made new friends and got a lot of very helpful feedback from my peers."
- Marc Orchant, Van Dyke Software
"It's a great opportunity to interact with other people and learn new skills. I really came back energized and feel certain that this program will give us a shot in the arm. Thanks for all the great tools."
- Paulette Meyer, JCPenney
"The Graduate program gives you the foundation to be an evangelism evangelist and teach and convert others. Brilliant!"
-Betsy Weber, TechSmith
You'll find more info and registration here.
Change someone's life, create an evangelist
A principal reason why some companies create customer evangelists? Because they change people's lives.
This reminder is courtesy of Apple Computer, which was recently named "Marketer of the Year" by AdAge magazine. Lee Clow, the chief of Apple's ad agency TBWA Worldwide, says making life-changing products is Steve Job's "prime goal."
Jobs' theology has led to the creation of:
* iPod. More than 1.4 million sold to date, capturing 31 percent market share.
* iTunes. Surpassing 75 million songs purchased thus far, iTunes was named Fortune magazine's best technology product of 2003.
* Power Mac G5. Today, the fastest personal computer in the world.
* iMac. The elegant half-sphere base and swiveling flat screen have changed the way we think of personal computer design.
All of these products are selling well, enjoy fanatical customers because of the precendents they have set, and position Apple as the company to be reckoned with in the new digital realm.
If your 2004 plans include creating more customer evangelists, think like Jobs. Post the following paragraph on the wall of your office as a reminder:
"Our Objective for 2004: Build passionate throngs of customer evangelists by creating things that change peoples' lives."
