By Leo Valiquette
There is no shortage of counsel that an economic rough patch is the time to ramp up, not reduce, a company’s investment in marketing and public relations. When potential customers are reconsidering or holding off on purchasing decisions, you need to be out there giving them a reason why they need to buy, and buy from you, now.
In the current environment, companies that are nimble and can adapt quickly will not only be the ones that survive, but will also be the ones that prosper as they take advantage of the confusion, fear and indecision of competitors standing on the sidelines wringing their hands as the same old way of doing things fails to yield the results it once did.
What needs to change is the message you are putting out. Everyone is feeling the pain of a recessionary economy. Our motto at inmedia has always been that it’s not about the technology, but about the business case for the technology. We always emphasize to our clients that their messaging must articulate how their product or service is the drill the customer needs to make that hole in the wall. (Or as the case may be, the patching compound that will make the hole go away.) Marketing and PR are crucial tools to convey how your product or service can address the most acute and top-of-mind pain points of your customers. They are also key to reaching and cultivating new markets.
Entrepreneur Magazine recently published a good article on where to avoid the temptation to drop the axe to cut costs. It featured a great perspective from Ann Handley, chief content officer at MarketingProfs. She emphasized the importance of marketing in a slump to maintain the volume of sales leads, and to adjust your messaging to reflect the current realities facing potential customers.
“If you sell washing machines, for example, and people don’t want to buy new models, you can stress how much they’ll save on maintenance and electricity with a more energy-efficient model,” she said.
Of course, adjusting your messaging and targeting new markets must make sense and hold the potential of a return greater than the investment. My catalyst for writing this post came from a radio ad I heard the other day from a company that is obviously thinking outside the box to reach a broader demographic of potential customers.
The ad came from retail pharmacy chain Jean Coutu and featured a fellow talking to his buddy about how busy he is taking care of the baby on paternity leave. His comment was along the lines of, “My wife does her part, but thank goodness for Jean Coutu.”
OK. Creative thinking on Jean Coutu’s part? Yes. An untapped market? Maybe. A big market worthy of the effort? Not so sure on that one, though I will concede it may catch the attention of a broader male demographic than just dads on pat leave. What’s important is that it demonstrates the kind of creative thinking that companies need to succeed in the current environment and the value of maintaining the marketing investment. (Consider this free plug I just gave Jean Coutu because I heard that ad and it resonated because I’m a father with a four-year-old.)
By Francis Moran
The quote in my headline comes from a beautiful little story that is warming the hearts of Canadians today. Jorma Hogbacka was a regular customer at the Tim Hortons coffee shop in his hometown St. Catherines. Apparently, he had a colourful way about him, part of which was to ask the coffee shop staff to help him pick his lottery numbers, with Jorma promising to share any winnings with them.
Well, Jorma won. Big time. His was one of three winning tickets in Saturday’s $43-million jackpot, netting the retired welder a tidy $14.8-million.
And his instant millionaire status did not cause him to forget his promise. True to his word, yesterday he handed a $30,000 cheque to former Tim Hortons staffer Melissa Grivich, who, according to the Globe and Mail, now works as a police officer. And Jorma is working with the iconic Canadian coffee chain to find four other employees he says are on his list to receive similar big tips for past performance.
I’m writing about this because I constantly harp on customer service and how it can be a sharp, effective and sustainable competitive advantage in a world where commodity pricing and reverse engineering rapidly erode any other leg up a company might initially have in the market place. And even though she is a paramount example of how things should be, the newly-enriched Melissa Grivich doesn’t think she did anything special.
“It was my job. I was serving coffee. It wasn’t the greatest job in the world, but I made the best of it,” the Globe quotes her as saying. “It’s just unbelievable how far customer service can go.”
‘Nuff said, Melissa. ‘Nuff said.
By Leo Valiquette
It was business building 101 this morning at OCRI’s monthly Technology Executive Breakfast, with three executives representing different stages of a company’s growth offering pearls of wisdom and insights learned at the School of Hard Knocks.
Mark Edwards, president of Bent 360: MediaLab represented start-up companies; Rob Woodbridge, CEO of Rove, spoke for growing companies, while Jim Roche, founder and former CEO of Tundra Semiconductor and president and CEO of business and management consultancy Stratford Managers, represented established companies.
Here’s a rundown of the key points discussed by the panel:
1. Diversity among a group of partners or company founders is key to ensure one person’s weaknesses are offset by another’s strengths. Diverse backgrounds and skill sets are vital.
2. Focus. Focus. Focus. A company must have a clear understanding of its own identity. To whom is it selling? Why? What is its value proposition? As Jim commented, if an organization suffers from this lack of clarity, there will be confusion within the ranks, people will come to work at cross purposes and revenue growth will stagnate. Rob shared his experiences about the benefits of Rove’s decision to refocus around one single enterprise product rather than chasing multiple opportunities in both the enterprise and consumer markets with eight products.
3. There is no such thing as overnight success. Citing author Malcolm Gladwell and his book Outliers: The Story of Success, Jim talked about the 10,000-hour rule — the amount of hard work needed to truly master something and achieve success. He contended that behind every “overnight success story” there are, in fact, years of effort under the radar and behind the scenes.
4. Cold calling. Few people tackle this one with gusto, but as the panelists emphasized, if you start with people you know, your list of prospects will run out in short order. If you’re not making contact with clients or prospective clients on a regular basis, then you’re not in business. Mark himself aims to make five calls a day (not necessarily all cold). He emphasized the importance of using tools and databases such as LinkedIn, Dun & Bradstreet and Hoovers to develop contact lists. From there, the trick is to start calling and work through an organization until you have found the receptive individual who has buying authority, or can serve as your internal advocate with those that do. Just leaving a phone message breaks the ice and makes the follow-up call a warm one, he said.
5. When to shake up the management team or make a change was also discussed. Jim acknowledged that most organizations tend to be slow to identify and act on weaknesses that affect an organization. He emphasized the importance of executives acting on their gut instinct since they rarely have the luxury of making a decision with all the facts in hand. If you think there is a problem, there likely is. He considers it a sign of good leadership to be able to provide clear and consistent feedback on a subordinate’s performance with direct, and even brutal, honesty.
6. The value of mentoring was also discussed, not just in receiving it, but in giving it. According to Mark, the rewards flow both ways and he isn’t afraid to seek out as mentors people younger than himself if they have opinions he values and experiences that are relevant. Jim commented on more formalized mentorship in the form of advisory boards or boards of directors and spoke about the leads these people can provide into new customers or financing opportunities.
7. And then there was the cold hard truth that any company operating in the B2B space will have to look outside of its own backyard if it wants to growth. Jim said a Canadian B2B company should expect 70 to 80 per cent of its revenues to come from outside its home market. And though it is a challenge for an earlier-stage company to manage it, a presence on the ground in a foreign market, especially one as distant both geographically and culturally as China, is critical. The challenge is ensuring these staff remained linked into the organization and its culture through frequent contact with the home office, both by phone and in person.
8. And lastly, I can’t fail to mention Mark’s endorsement of engaging with a PR resource to help raise a company’s profile in its target markets.
