Tag Archives: Customer

What is Coming in Digital Marketing? Six Points

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Situation: In traditional marketing, many marketers were more focused on activity than results. In the digital environment, successful marketing organizations must become better at listening to their customers, watching them, and tracking their purchase decision behavior. What does this mean for the marketer? What is coming in digital marketing?

Advice from the CEOs:

  • The digital world has changed marketing. The traditional marketing campaign was led by creative. Through the early 90’s marketing was directed by media players and large publishers. Once a campaign was developed the pitch was “buy lots of impressions and customers will come.”
  • Since the dot.com boom there has been a shift to ROI – originally it was spend $x with Google, get y clicks that will yield z buying customers. This was very transactional and could be expressed relatively simply. Behavior is now changing, and the model is becoming more collaborative: a potential customer expresses interest and a need, a supplier offers a solution, the potential customer verifies and validates the offer through online communities: LinkedIn, Instagram, Snapchat, Twitter, Facebook, and other online communities. Eventually the potential customer may make a buying decision
  • The buying decision today is very different from the traditional offer-driven process. The whole decision process can happen in minutes.
  • For the marketer, this means moving far beyond simple advertisements. The marketer needs a presence on the sites mentioned above in addition to their website to woo potential customers. For marketers this is expensive and requires a different level of resource commitment. It is important for them to attribute the appropriate value to each online presence that the customer engages as they evaluate their buying choices.
  • Only through developing complex metrics, which change real time as customer behavior changes, can the marketer track and understand customer behavior and adapt the offer to the needs of the customer. As individual consumers increasingly engage employ new forms of digital technology the challenge to marketers only increases.
  • The digital marketer who will thrive will develop a sophisticated, metric-driven understanding of the multiple touchpoints and social interaction of a given transaction.

Thanks to Vikas Sharan, CEO, Regalix, Inc. for his contribution to this article.

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What are the Best Ways to Open New Markets? Four Thoughts

Situation: A company was founded and has gained nice traction in Europe. Focusing first on Silicon Valley, they want to expand into the US. This means identifying companies that could use their service, as well as appropriate contacts within those companies. What are the best ways to open new markets for a product or service?

Advice from the CEOs:

  • Start with a set of profiles of possible customers and contacts. As you create a history of success look for companies in similar industries and with similar profiles as your current customers. Build a set of profiles of customer companies and use these profiles against the lists that you develop to identify and prioritize prospects.
  • Develop a list of who’s in your addressable market and narrow this list to prospects. Work with your staff and systematically review past jobs and companies that you’ve been associated with including vendors and suppliers.
  • Identify a list of possible target customers, and use LinkedIn, Link Silicon Valley and other social networking sites to confirm and develop your contact list. Work with companies that develop and update databases of local companies including contact lists, web sites, telephone numbers, revenue data and SIC codes. For example, Rich’s Business Information develops searchable lists of companies Northern and Southern California. Similar resources are available in other geographies. Dunn and Bradstreet and others sell searchable lists of companies and positions.
  • Subscribe to the locally published Business Journals in your target markets. These Journals generate books and lists of local companies and contact information. Network with those you know and ask who they know. This is more effective once you’ve developed a set of profiles, so that you can clearly characterize what kinds of companies you seek.

Thanks to Greg Curhan of Clickworker for his contribution to this article.   

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How Do You Leverage Digital Marketing? Six Points

Situation: In traditional marketing, many marketers have been more focused on activity than results. In the digital environment, top marketing organizations need to become better at listening to their customers, watching them, and tracking their purchase decision behavior. What does this mean for the marketer? How do you leverage digital marketing?

Advice from the CEOs:

  • The digital world has changed marketing. The traditional marketing campaign was led by creative staff. Marketing was directed by media players and large publishers. Once a campaign was developed the pitch was “buy lots of impressions and customers will come.” During the dot.com boom and into the 2000s there was a shift to ROI – spend $x with Google, get y clicks that will yield z buying customers. This was transactional and could be expressed relatively simply.
  • Behavior has changed. The model has become more collaborative. A potential customer expresses interest and a need. A supplier offers a solution. The potential customer verifies and validates the offer through online communities – LinkedIn, Twitter, Facebook or other platforms, and may eventually make a buying decision based on what they find along the way.
  • The buying decision today is very different from the traditional offer-driven process. All of this can happen in minutes.
  • For the marketer, this means moving far beyond the simple advertisement. A presence is required on multiple social media sites, in addition to their website, to woo potential customers. This is expensive and requires a different level of resource commitment. Therefore, it is important to attribute the appropriate value to each online presence that the customer engages as they evaluate their buying choices.
  • This requires developing complex metrics, which change real time as customer behavior changes, so the marketer can track and understand customer behavior and adapt the offer to the individual needs of the customer. As individual consumers increasingly engage and employ new forms of digital technology the challenge to marketers only increases.
  • The digital marketer who will thrive will develop a sophisticated, metric-driven understanding of the multiple touchpoints and social interactions of a given transaction and will adapt new marketing approaches as the marketing environment continually changes.

Thanks to Vikas Sharan of Regalix, Inc. for his contribution to this article.

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How Do You Select Good Business Developers? Five Thoughts

Situation: A company wants to expand its business development staff. What is your experience, and what has worked best for you in selecting among business development candidates? How do you select good business developers?

Advice from the CEOs:

  • The first priority is your compensation plan for the new person. There are three basic compensation schemes: High Base/Low Commission, Medium Base/Medium Commission, Low to No Base/High Commission.
  • Choice between these options depends on your own philosophy, as well as common practice within your industry. Compensation is central to candidate selection. The CEOs recommended asking candidates about their own preferences for compensation. If they prefer Option 1, don’t hire them – they either lack experience or confidence. Ideally they prefer Option 3 – they can make more money, but cost you little unless they perform. If they prefer Option 2, probe. They may be good but face personal obligations that make it difficult to choose the high risk/high reward option. Ask about past compensation and performance. Verify any claims made during the interview.
  • You want to structure sales compensation so that non-performers leave of their own accord – without costing you dearly in time or money.                                              
  • What are the most important traits to seek in a good B.D. candidate? Understanding of customer’s requirements as well as purchase behavior and understanding of your product or service.
  • How do you find candidates? Use a Head Hunter who knows your industry and competitors. Use written tests to evaluate the individual’s traits. Let the hunter find and screen prospects and present the top 2-3 to you as a test of their skills.

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How Do You Reduce Dependence on a Few Customers? Four Thoughts

Situation: A company has been very successful, but one customer represents over 60% of their sales. To grow, the company needs to diversify its customer base. How do you reduce dependence on one large customer? What are the risks involved? How do you reduce dependence on a few customers?

Advice from the CEOs:

  • The key to getting new customers is to dedicate time and resources to the task. Consider hiring a business development professional – a commission based “hunter” who has experience landing big accounts. You may pay this person a hefty commission for bringing in new business, but diversifying your customer base can be worth the cost.
  • If there is shared ownership of technology co-developed by the company and client and the client does not wish to pursue markets beyond its strategic focus, is it feasible to negotiate rights to pursue this business? The larger client will pursue their own interests, not those of the smaller vendor.
  • Perhaps a win-win can be worked out, but it may be challenging – particularly if the client is concerned that use of the technology in other markets could have a negative impact on the client. Use caution. The easiest way for the client to defend itself from a perceived threat is to sue and bury the smaller vendor through legal expenses. Regardless of who is “legally right,” deep pockets can win through attrition.
  • Consider recreating the opportunity. Create your own adjunct proprietary product with your own software or design talent and use this to expand your horizons. Be aware, the large client can still sue if they believe that your proprietary product impinges on their rights.

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Can Marketing Partnerships Work Well? Five Considerations

Situation: A company has the opportunity to form a marketing partnership with another company. The primary potential benefit to the company is gaining access to new customers. On the other hand, partnerships may bring complications. What is your experience with marketing partnerships? Can marketing partnerships work well?

Advice from the CEOs:

  • Marketing partnerships can certainly work, provided that both parties see benefit to the relationship, and –  more importantly – both parties are committed to make it work.
  • Clearly define boundaries with the partner. If either company can perform a particular service, whose customers are who’s? Is there alignment throughout the partner’s organization regarding the partnership? Are their conflicting priorities within different branches of that organization? Test the waters ahead of time and assess how these will potentially impact the partnership.
  • There are potential pitfalls to take into consideration. What is the in-house/outsource attitude of the partner? If there are strong voices for in-house production or service provision, these will not be supportive of the partnership.
  • Monitor the quality of the partnership over time. Successful partnerships are based as much on friendly cordial relations as on business priorities. Are your business cultures and ethics compatible? Who is the champion for the partnership on the other side? What will happen if the champion leaves? Is there a backup champion?
  • Build an exit strategy into the partnership that will allow you to leave gracefully and mitigate financial or good will consequences if the partnership sours.

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When Do You Focus on the Plan –  When Do You Adjust? Four Guidelines

Situation: The dynamics of an early-stage business require balance between focus and opportunity. Both are important in a dynamic business environment. The challenge is in the balancing act. When do you focus on the plan, and when do you adjust?

Advice:

  • Never allow friends to become statistics. Think of your customers as your friends. Often the most loyal and vocal friends were early adopters and got the company where it is today. They remain important participants in the conversation and should always be in focus.
  • When using social media to communicate to your audience, remember that this is a face-to-face conversation. This is a key point of focus. Remove as much friction from online interactions as you can. Make it as easy as possible for people visiting your web site to buy. This requires both live interactions with users and attention to detail. If a question keeps coming up, answer it; put the answer right up front on your web site where it cannot be missed. We’ve all made hundreds of tweaks, each tiny. Each has removed a point of friction. As the company grows it is easy to lose sight of these details. Never lose sight of details.
  • Much of what businesses face is transitory. It is important to stay nimble and not get stuck fighting the last skirmish. Early in our business history we found that a subscription service was difficult for institutional users like purchasing departments in schools to understand. We focused on fixing this.
  • Be careful not to chase bright shiny objects – opportunities that take you outside your principal market competence. Would you try to modify a hammer to put in screws? One company’s principal product is a communication device for kids with verbal challenges. Some have suggested that it could also be a teaching device. In the future there may be room in the company’s plan for a teaching device, but this will be addressed as its own market and application when the company is large enough to diversify.

Thanks to Phil Bookman of Assistyx for his contribution to this article.

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What is Agile Leadership? Five Perspectives

Situation: The environment continually becomes more complex for leaders. Not only must leaders perform classic roles, but they must also deal with increased uncertainty and change. How do you build a new leadership paradigm to address ongoing change? What is agile leadership?

Advice from the CEOs:

There are three challenges facing leaders today.

  • First, given that change is constant, what does the next likely settling point look like in your environment? How is this different from past settling points? Everything starts with your people. Once you determine the likely next settling point, conduct a capability inventory with your leadership team to determine whether you have the right people to handle the new reality. Can current members be trained to take on the new challenges? Do you need to add new talent and capacity?
  • Second, are your processes limiting or enhancing your flexibility? Do current processes encourage adaptability, cross-functional connection and communication. If not how will you change them? Deconstruct and reconstruct all critical processes to make them more agile, responsive and adaptable to current and future needs.
  • Third, how are you linking desired outcomes with rewards and incentives within the company? Growth in the past may have focused on building up infrastructure – adding more people and capacity. Now, knowledge management focused on tools and processes is required to make people more effective. Individualized assessment and reward structures have become an obstacle and have to be shifted to emphasize the importance of collaborative versus individualized performance.
  • Agile leadership and management focuses on reaching outside the boundaries of your own company. To deliver differentiated value suppliers and customers must be included in the exercise. It is necessary to reinvent engagement with suppliers and customers so that they are part of the collaboration.
  • The agile paradigm focuses on the unspoken needs of suppliers and customers. This takes the conversation beyond the transaction and includes quality, on-time delivery, and other differentiators that are mutually important. This can include competing for your competitors’ suppliers by being a better customer!

Thanks to Jorge Titinger, CEO of Verigy, Inc. for his contribution to this article.

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What are the Key Strategic Components of a Marketing Plan? Five Points

Situation: A CEO has decided that his top opportunities are to increase visibility and gain market share. As he focuses on these opportunities what are the areas on which he should focus as he builds his plan? What are the key strategic components of an effective marketing program?

Advice:

  • The best marketing plans don’t start with your company, product or service, They start with a focus on your customers and the benefits you can deliver to them.
  • The first step is to identify who your customers are. This can be challenging in B2B businesses. For example, for a company offering outplacement solutions, there are several possible customers: the HR department at the company seeking outplacement services; the CFO at these companies; the HR department at companies seeking good candidates; and the individuals who are going through outplacement and seeking new positions. Each of these audiences has different objectives, priorities and approaches. To succeed, the company needs to connect to each of them where they are and be prepared to offer effective solutions.
  • Once you have identified your target customers, the next step is to develop messaging and message delivery systems that capture and maintain their attention. The messaging must express a differentiation that is easy to grasp – something that clearly sets you apart from your competition.  In technology marketing, Apple’s Super Bowl commercial, with its man-versus-machine contrast, is one of the most famous examples of this.
  • Your campaign must consistently touch your potential customer base. Research suggests that this requires a minimum of 4-5 touches to effectively gain customer attention and to communicate your message.
  • Accompanying the messaging and the increased visibility that you seek, you must have an effective way to respond promptly and directly to customer interest or inquiries. Rapid and responsive follow-up are critical to success.

Thanks to Sanjay Sathe of Rise Smart for his contribution to this article.

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How Do You Respond to a New Competitor? Five Suggestions

Situation: A mid-sized company has learned that a much larger company is entering their geography and market niche. This company is known to enter new markets with a low pricing strategy to “buy” market share. How do you respond to this challenge? How do you respond to a new competitor?

Advice from the CEOs:

  • Accept the fact that you will lose some business; particularly from customers who driven more by price than quality and service. The flip side is that these customers are likely not your best customers.
  • Research the reputation and business practices of the new entrant in their traditional territory. What is their reputation? What are their weaknesses? Do your homework by networking with their current competitors and customers.
  • Take a lesson from those who have survived a move by Walmart into their territory. Boutiques survive Walmart – especially those that focus on personal service. Upgrade your customer base based on personal service. Use your knowledge of the marketplace and your long term relationships to your advantage – including your reputation with existing customers when going after new customers. You may remain more profitable than the larger company, on a per transaction basis, based on your knowledge of the territory or business niche.
  • Don’t assume that all large companies are Walmarts. Walmart has a unique set of talents and a tightly controlled process. This may not translate to other markets – especially those involving personalized service.  
  • If you are a family business, consider promoting your “old world skill” and established reputation and expertise.

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