Situation: A CEO wants to increase awareness of company products and services. They have a strong customer list and a long history of successful projects. How to they increase awareness among potential customer decision-makers? How do you boost awareness of your products and services?
Advice from the CEOs:
There are three stages to a good awareness strategy:
The company already has great products and services. Hire a quality PR Firm and have them highlight this for company trade shows, blogs, YouTube, etc.
The objective is not broad awareness but getting to specific decision-makers – what will get to them?
Generate broad awareness of company capabilities through entertaining videos to excite the team members of prospect companies who report to the decision makers.
This is a complex strategic sell. If recommenders think that the company’s stuff is cool they will pass the word – create a campaign to encourage this.
The priority is to close more business. Why not brand or co-brand and promote the company’s products? This may ease reaching the target decision makers.
The PR advice is good – but how will this play to the crowd that’s writing the check?
What makes current customers comfortable working with the company? Is it repeatability? Credibility? Creativity? Referenceability? Decide which it is and highlight it.
Everything that the company is doing on the “cool” side falls under the marketing strategy. Efforts in PR and sales must support this marketing strategy.
Consider a campaign on YouTube – How do the parts of “Sally” work? How did we design it? This attracts a smaller audience, but it may be the right audience.
Within company capabilities, there are two distinctions to clarify – both are important but require different emphasis:
Situation: An entrepreneur has created a new business offering a critical service but struggles with how to monetize it. The primary clients don’t have the resources to fund it viably. What alternative sources of funds or revenue can be found? How do you monetize a new venture?
Advice from the CEOs:
The venture’s brand name must carry the message – the name must describe the mission.
One of the core messages is reciprocity. Reinforce this theme all over the site.
Testimonials are critical. Testimonial videos of real users personalize the experience. These drive participant acquisition and contributions.
Make participants feel like they are a part of a community.
Consider a variety of landing pages – same database but different doors of entry.
Encourage even more communication within specific target communities.
Look at MySpace vs. Facebook to guide the model:
MySpace was already big when Facebook launched.
Facebook exploded by making itself a more closed community – all exclusive colleges and Universities.
Monetize via donation or advertising vs. subscription. Fees could kill the opportunity. Too many other resources are available for free.
The key appeal is enabling people to do something that makes them feel good.
Post stories from those who have succeeded as a result of the platform, as well as those who have helped on the site. This will inspire others to participate.
How do you recruit new participants?
Some CEOs joined LinkedIn because of peer pressure – after enough people asked them to join, they did.
Install a template to encourage people to invite new participants – allow new participants to tell their story and the need that the service fulfills for them.
Consider adding premium content to the site, but only for those who have made contributions – monetary or in-kind.
Consider Fremium to Premium. In the Fremium model include a banner ad for users, like a university Training Institute.
Consider creating an advice network. Post questions and ask for answers from the community. Include an option to click to become a contributing participant.
Online there are eyeballs vs. action – the action is what matters.
A CEO is concerned that her company does not have enough new prospects or
business on the horizon. New business opportunities appear sporadically but not
predictably. She asks how others schedule their time and effort to bring in new
clients. How do you maintain a robust pipeline?
from the CEOs:
Devote a regular amount of time to business and relationship development. Even when business is busy it is important to have the discipline to devote 4 to 6 hours per week to new business development. Schedule this time and fill it with activity. Occasional networking doesn’t work.
What differentiates a company is its brand. If new business comes from referrals, turbo-charge this by becoming the information hub for the referral group. Make it easy for others to make referrals.
There is a hierarchy of things to do.
Stay on potential referrers’ radar screens – monthly or quarterly awareness marketing to referral sources.
Spread awareness of best practices in areas where the company has expertise.
Make best practices relevant with situational stories.
Think in terms of a target.
Where do most referrals come from? This is the center of the bull’s eye
2nd Ring – 2nd level of referrals
3rd Ring – 3rd level of referrals
Network more with contacts at the center of the target – they know clients in need of help.
There is a lot of information in the cloud that is relevant to the business – personnel moves, hiring, firing, etc. If you it is possible to track this, it can help.
LinkedIn can help. Look for 1st and 2nd degree links to individuals of interest. For example, you want to meet a CEO who on LinkedIn is a 2nd degree link. Request a warm introduction from a 1st degree link between you and the CEO.
Think of LinkedIn in terms of rifle shots, not a shotgun approach. This makes it both more manageable and more valuable.
A young company that focuses on personalized solutions needs to generate near-term
revenue to meet expenses. There are also options for debt or equity financing,
but the terms for each will equally depend on near-term revenue potential. How
do you generate near-term revenue?
from the CEOs:
in terms of the referenceability of early customers. As a new company, the first five customers
define the company to future customers.
core values of the company will help clarify how to make early choices.
just go for the easiest closes.
a chart of potential customer prospects:
potential prospects into groups.
is the deal model and key value proposition for each group?
a video and communications package to demonstrate the company’s benefit to each
are trade-offs between the different deals that the company will pursue:
fast deals are most likely to meet immediate cash flow needs.
biggest deals may involve the creation of LLCs. These will involve both more
time and additional legal fees.
sure that early deals align with the company’s core brand.
outsourcing to speed the provision of services to early clients. Build this
cost into your billings. Assure that the funds from early deals flow to or
through the company. This will improve the financial story to additional
serving special interest groups. Their potential value is that they work for
their passion more than for money. If the company chooses to work with one or
more of these groups, assure that customer selection aligns with company values.
current focus for near-term monetization is on merchandizing. As an alternative,
consider charging a separate fee for the use of company IP. This may give clients
additional incentive to utilize company technology to monetize their
Situation: An early stage company has assembled an impressive team and has a solid service offering. The immediate challenge is bringing in clients to fuel growth. The team has the capacity but needs some creative ideas on where they should focus their efforts. How do you fuel early stage growth?
Advice from the CEOs:
Fully utilize the team’s talents. Team members with established expertise can offer clinics featuring the company’s service offering at local colleges, business organizations and other venues to target audiences. Think about business organizations with members who would benefit from the company’s services. Also reach out to venture capitalists and the entrepreneurial market.
Develop a strong value proposition:
Eyeballs on the market
Links to highly qualified resources
Demonstrated expertise in your space
Claims tied to the top priorities of target clients
For start-up and entrepreneur client targets:
Offer a packaged set of services for a fixed fee. Be open to creative payment options to fit the financial needs of entrepreneurs.
Start developing a full suite of services. Start by assessing the need and developing a target list of early clients. VC portfolio companies can be a great target.
Build a good web-based communications interface for client use. Think of what is needed to create an attractive menu and let this drive service development.
Develop a separate brand for ancillary services that will complement the current offering, but which is outside of the current offering. Look at markets which would benefit from the service, including medical and nursing providers.
Situation: A company has built a strong prototype line capable of handling projected volume for the near-term as they scale up production. Their long-term plan is a fabless model through manufacturing partners. They have solid IP counsel and protection. What are the most critical elements of scale-up? How do you generate scalable manufacturing?
Advice from the CEOs:
The answer will depend on the product strategy, if the near-term focus is on quick tactical wins.
The most critical elements of the scale-up will be:
The planned speed of the scale-up. A tactical approach, which will make limited demands on production near-term supports a prudent scale-up plan.
Having the right business development talent to generate quick wins with smaller volume opportunities to feed the scale-up.
When you are ready for larger volume – and your scale-up capacity can support this – hire an experienced sales professional who is known in the industry and who can bring you some relatively quick higher volume contracts.
Que near-term contracts according to the sales cycle.
Design cycle – build awareness of your capacity among significant market players and focus on quick turn-around to respond to their demand.
Qualification cycle will be longer, perhaps 6 months. As your brand awareness builds push for qualification orders which will be larger, but still within near-term capacity.
Focus business development efforts on building strong awareness across your target companies. Some companies tend to limit early knowledge of vendor capabilities between their divisions until they have confidence in the vendor’s ability to deliver. Optimize customer awareness by:
Cultivating business partners who can facilitate a high-level approach within your target customer companies.
Start creating a small forum of industry savvy individuals who can become your champions. Leverage this forum to spread your message and bring you opportunities.
Situation: A company was launched on a single product with variations. Their R&D team has now developed several additional products which they are planning to launch. This will involve new product names and new customer segments. Having not done this before, the CEO seeks advice on managing multiple products, brands and market segments. How do you manage multiple products and segments?
Advice from the CEOs:
The most important element is the plan – write it carefully and build from a solid base.
When working with multiple products or market segments, match your segment strategy for each segment to your product strategy for that segment.
Build a grid that shows all products and all segments where you wish to sell them. In each cell, determine both the decision maker(s) and their top purchasing priorities. This will help you to build your Product/Segment strategy and optimize resource allocation while increasing sales and marketing effectiveness.
It may also help you to fire problem customers who cost you money and attention and reallocate these resources to more promising opportunities.
Analyze the customer’s decision-making process for each product and segment. Make sure that your marketing and sales effort makes sense within their decision process and focus on what is workable.
When introducing a new product or idea, focus first on smaller segments and test the fit of your product or idea. This is low risk if you fail, and you can leverage what you have learned if you win.
Build a one-page strategic plan that covers your full company strategy. Each department compliments the company strategy with its own departmental strategy to support the company strategy.
Special thanks to John Maver of Maver Management Group for his contribution to this discussion.
Situation: A company faces a question branding a new product – what should lead the branding focus: product design or product attributes that will be an eventual part of the branding strategy? Which should lead in building brand focus?
Advice from the CEOs:
There are two areas of focus – each an important part of the overall trademark and branding strategy:
A distinct name or symbol, for example Amazon.com or eBay, will gain the right kind of attention and be easy for potential customers to remember. The prime risk here is stepping on someone else’s mark.
Your overall branding strategy. The point here is not confusing your customers. Marketing people will advise you to KISS – Keep it Simple Stupid! One tack is simplifying the complexity of technology.
It is important to develop a consistent set of product attributes – one that you know through research will resonate with your client base – before your Alpha launch. It is dangerous to conduct an Alpha launch without clarity on this point. Subtleties of the eventual brand do not need to be finalized, but the overall framework of key product attributes should be consistent and clear from the beginning.
Design and the development of important product attributes ideally take place in synch with each other. Positioning will depend on your audience, and the unique needs and expectations of the audience.
The name itself could be important. Being clear and easy to spell may be important. Test alternative names for this trait.
Situation: A company has experienced low sales early in its peak season due to bad weather. The CEO wants to develop additional leading indicators that will help predict whether sales will recover prior to the end of the peak season. What leading indicators have you found effective in predicting seasonal sales?
Advice from the CEOs:
Access to benchmarked research can be helpful, especially industry reports that cite growth indicators. Some industry report producers can generate drill-down reports of their base data for a fee. This allows you to tailor your own study based on their data.
Depending upon whether you set revenue projections by brand or product line, look for indicators within brands or lines that will provide you with clarity on sales projections. An example is product reviews in relevant newsletters, provided that these have effectively benchmarked to sales results in the past.
In addition to new leading indicators for existing products, there are a number of ways that you can reduce the impact of seasonality on your cash flow. These include: investments that will lead to future income streams; new product placements to compliment or extend current lines; new key customers or outlets through which you can expand your market; and increasing sales calls to create new demand. Also, use the current season to establish additional benchmarks that will be useful in future years.
Other tactics include evaluating in-house versus contract production of your products to improve your margins, and strategies to improve up-sales from medium to premium products where margins are better. You can also focus on smaller independent outlets rather than national chains which are dominated by national brands, and also regional explore private label opportunities.
Situation: A company has recently introduced a disruptive business proposition. The immediate focus is pitching the solution as an attractive alternative and building early traction. What are best practices for building acceptance of a disruptive model?
Advice from Marc Rochman, CEO of Openbucks:
Any business, especially an innovative start-up, is bound to meet a wall of resistance; the key is finding the cracks in the wall. To do this, you must demonstrate a significant benefit to both the company and its customers. However, most important is finding a partner who has an early adopter attitude or culture.
Often the principal resistance is not with the product or solution being presented, but fear of being the first through the gate – particularly with a product and company who haven’t yet proven themselves. This stems from a perception that if the solution turns out badly the penalty may be severe, especially for the executive who made the decision.
Openbucks recently introduced a new payment solution for people who don’t have bank accounts or credit cards such as teenagers and people without strong credit and those hesitant to use credit cards online. The solution allows people to purchase a gift card from a retailer and use that gift card to buy in-store goods as well as to buy and pay for digital goods inside hundreds of online games.
Openbucks’ first partner is Subway. They are innovative, imaginative and not afraid to be first with a new concept. In addition, Subway also happens to have a subsidiary that specializes in payments and payment processing so they immediately understood the model.
Another early partner is CVS Pharmacy. To CVS the appeal was the model of convenience and a way to encourage repeat customer visits. Since people routinely visit pharmacies to get prescriptions and a host of other products, it is easy for them to buy a gift card during a routine visit.
The keys to overcoming objections to innovation are:
Be resilient and patient, especially when working with large companies. Once they begin to see a trend of success, they will more likely be ready for mass adoption.
Strike the right balance between persistence and a willingness to adapt your product when you see an opportunity. Pivot or tweak your model to take advantage of a new opportunity that you did not anticipate originally. The pivot allows you to take an easier path instead of banging against the wall too long. Sometimes you just have to go around the wall.
Subway has more stores than any other retailer in the US. Adopting the Openbucks solution came naturally for Subway because they understand payment processes and how to use them to create loyalty and foot traffic.
The program is simple and a win-win-win for the consumer, retail outlet, and merchants who can collect cash-like payments from the unbanked, under-banked and those who prefer not to use a credit card online. The purchase of a $10 Subway gift card can be used to buy a Subway sandwich, and inside mini digital stores in hundreds of online games. Fifty-four percent of those who buy a Subway gift card also get a sandwich – a clear value to the retailer. Further, since they have the card, they are more likely to be repeat customers.