A company seeks to leverage the difference between information from traditional
media and the richer information available through social media. Their objective,
using publicly available information, is to identify individuals’ specific plans
or preferences to better target their clients’ marketing dollars. Can social
marketing leverage your competitive position?
from the CEOs:
principal value proposition is the ability to mine publicly available information
from consumers through social media and make it useful to advertisers who want
to reach those customers.
the company’s technology allows access to shared data which can be used by many
companies this is less expensive than clients’ trying to go it alone.
most important differentiation will be the timeliness of data. Many firms
collect data after the fact – for example after a key purchase is made. What
advertisers desire is the ability to anticipate purchases. An example is a
consumer’s plan to buy a house. This information is valuable to many companies.
If data is mineable, it is valuable.
essential question is how the client will make more money from data being
near-real time. If the client can use the company’s data to enhance their marketing
database, this adds value.
partnering with the agencies that B2B and B2C companies hire to advertise their
products. Even the largest consumer B2B and B2C companies work with outside ad
agencies because these companies have better access to targeted customer lists
than the companies.
a subscription model, offering access to unique, current data to many customers.
The differentiating value is the currency and timeliness of the data. A
subscription model generates an ongoing revenue stream.
Situation: A company has many meetings. Organizers calendar meetings on Salesforce.com. Despite this, participants show up late, and sometimes not at all. When the right people aren’t present they must re-schedule the meetings. This ends up wasting valuable time for managers. How do you enforce meeting attendance?
Advice from the CEOs:
The answer depends upon your company culture and priorities.
If you have a production-focused culture, absence and tardiness may not be tolerable. Companies with this type of culture can take the following steps:
Call out late arrivals and absences immediately – the first time take them aside and explain that tardiness or absence is not excusable.
Called out repeat offenders on the spot!
One company has a policy that if you arrive late you stand for the period that you’re late. This has been very effective.
The example that you set reinforces desired behavior for the others.
In client-centered service organizations the rules may be different. Some companies feel that customer calls and meeting customers’ needs comes first, even if it means that the meeting starts without a key participant.
Match your meeting discipline to your culture.
The quality of meeting is dependent on quality of the meeting facilitator. Make sure that you have the right people leading the meetings to keep them on time and on topic. This may improve meeting timeliness.
If this is a challenge for your company, meet with those involved. Clarify the problem and confirm the reality of problem; then agree on the solution and gain their commitment to comply.
Situation: A company has experienced delays in closing their annual books for years. Inability to complete final inventory is the critical factor. In recent years it has taken four months or more to get final numbers for the year. How do you close the books on time?
Advice from the CEOs:
It is important to put a system into place well in advance of fiscal year end. A key part of this is to conduct final inventory so that it is done smoothly and accurately either immediately prior to or following the end of the fiscal year. Retail or wholesale operations normally complete final inventory within 30 days of fiscal year end.
If your inventory includes both large and small value items, ask whether you have to count everything. Based on past inventory it may be that small items that do not substantially impact final inventory can either be eliminated from the count or handled on an exception basis.
Consider a system of doing monthly or rotating monthly inventory smaller sets of items that make up perhaps 60% of sales, and quarterly inventory on an additional larger set of items that together with the first groups make up perhaps 80% of sales. By completing inventory of these items more frequently, the company will not only have a better handle on total inventory, but is also likely to be more accurate at the end of the year. At year-end inventory add those items that make up the final 20% of sales to the inventory count.
Again, depending upon the nature of the inventory, it may not be necessary to count items that, as groups, are valued under $500 per group. Seek expert advice from your accountant on this point.