Are You “Messaging it Great?”

Thursday, December 8, 2011

What Malcolm Gladwell vs. Morton Grodzins can teach us about marketing and sales messaging

By Tim Riesterer

Are You “Messaging it Great?”Malcolm Gladwell sold millions of copies of his book, “The Tipping Point,” and he made millions of dollars on the concept. But, he didn’t invent it.

An obscure political science professor by the name of Morton Grodzins actually first conceived of “the tipping point” more than 40 years before Gladwell released his book. Yet, Grodzins didn’t make millions of dollars.

Malcolm Gladwell then went on to sell millions of copies of his book, “Outliers,” and he made millions of dollars, again. One of the key principles he described was a concept called “deliberate practice.”

You guessed it. The original theory was developed by someone else. He’s a Swedish psychologist, K. Anders Ericcson, who toils in academic anonymity, while Gladwell hits the big-dollar talk show and speaking circuits.

Gladwell “Messaged it Great”

What did Gladwell do that these other guys didn’t? Why was he able to make millions, while Grodzins and Ericcson never hit the mainstream?

He messaged it great. Malcolm Gladwell was able to take very geeky, academic concepts and connect with the the buying public and get them to part with their money. The other guys didn’t.

Have you ever been frustrated that you and your company have been beaten by lesser competitors? Are your customers continually trying to commoditize you? Or, maybe it’s you who needs to outsell a more innovative competitor.

Regardless, you as a Marketer are charged with creating your company’s story and getting it told in a way that drives growth. It’s your job to message it great.

5 Lessons for Messaging it Great

Here’s what you can learn from Malcolm Gladwell… You need find something inside your company that is inherently great and make it more apparently obvious to the customer. Buried in your company and your offerings are bright ideas, capabilities or concepts that just need to be messaged great.

Then, you must apply these five lessons:

Lesson #1: Your customer lives in your story, don’t force them to live in yours

The single biggest thing that separates successful companies from unsuccessful ones is the story you tell when you are communicating with a prospect in the buying cycle.  Do you force them to understand and love your company story, or are you engaging in a compelling dialogue about their story?

The real challenge in the customer’s story is what we call the “status quo barrier.” It keeps your prospects from wanting to change.  You need a message that not only differentiates you from competitors, but first convinces the decision-maker they need to do something different.  Your message needs to be about how the customer’s current story is changing, and how your strengths line-up in response to the changes happening to them.

The kicker is that you often need to tell the customer something they don’t know, about a problem they didn’t even know they had, if you want to break through the status quo barrier.  Your story needs to be a little challenging, dangerous and fearless instead of safe and self-satisfying. Too many of today’s value propositions are too impotent to provoke a response, let alone business opportunities.

Lesson #2: You must translate your brand positioning into customer messaging

Brand positioning is typically about what we feel our brand should be, what we want to be known as, why we come to work each day, what we promise to do for the customer, and what customers like about us.  Companies tend to we, we, we all over themselves when they create brand messaging.

It becomes 30,000-foot hyperbole that rarely separates you from your competitors, is difficult to translate at the 3-foot level where a customer conversation takes place, and almost never compels a customer to do anything different.  Companies test whether customers like their brand position, but they don’t test whether it will actually cause them to change behavior.  I like the way Sergio Zyman, former Coca Cola CMO and author of The End of Marketing as We Know It says: “We can’t live on virtual consumption.” (He said this after his brand advertising won many awards, but failed to change their market share.)

Bottom line is that branding, especially based on voice of the customer, will rarely offer up a compelling story that creates commercial impact. Customers can’t actually tell you what they want, or need, that will get them excited enough to do something different and be willing to go through the pain of change. When it comes down to actually creating selling opportunities and activity, you must translate your brand into something truly compelling and remarkable that breaks the status quo barrier.

Lesson #3: You need to offer a distinct point of view, not just more content

I got major heartburn at a recent conference on content marketing. The biggest topic of conversation seemed to be how to create the quantity of content needed, in a timely enough fashion, to fill all the holes in the demand generation and sales enablement content map. There were presentations and products about how to source third-party content from analysts and outside writers, and how to manage that process.

Not once, did I hear a speaker address the issue of how to make your content more distinctive and drive action. Seriously, if you are going to become an aggregator of industry analyst information in your marketing programs and customer portals, what value do you add? What should a customer do different because they found someone else’s content on your site or in your emails. Is being a content clearinghouse for other people’s generic content going to move the needle for you?

Gladwell didn’t just report on Morton Grodzin’s discovery. Gladwell made it meaningful to you and me. He made it useful in our lives and jobs. He took an esoteric concept and made it pragmatic and applicable. Likewise, you must add value in the messaging content you create. You need to offer a distinct point of view. Your story must show customers the relevant impact that the latest trends, issues, challenges, problems and changes will have on their desired outcomes. And, then how your organization can help them avoid the risks and maximize the opportunities

Lesson #4: Focus your messaging energy on the right enemy

Think of the “status quo barrier” we mentioned earlier as your biggest competitor when you build messaging content.  (It’s not your arch rival competitor.) Before you ever get to an opportunity, you need to break through and create a buying vision.

Here are four challenges causing the status quo barrier that you must confront with your message:

· Attention Economy – Time is the new currency. It’s almost impossible to get someone’s attention. You can’t be timid. And, they don’t have time to play the 20-question game. In fact, you will need to tell the customer something they don’t know, about a problem they didn’t even know they had. Be provocative and fresh to get your listener to the edge of their seat.

· Change Burden – No surprise here, customers loathe change. So much so, they are often willing to live with the pains they got because they perceive the pain of changing to a new solution as being worse. Breaking through the status quo barrier means you have to clearly show them how the pain of not changing is worse than the pain of change management.

· Risk Aversion – Pay attention here. People respond better and faster to the threat of risk/loss than the potential for more gain. That’s why your feature/benefit stories and your ROI calculations aren’t enough to break through. You must show them where their status quo is leaking and squeaking. They must see it as “unsafe” before they will move away from it.

· Entrenched Competition – Incumbency has its advantages. If there’s traditional competitor or in-house solution in place it’s safe and comfortable. No one is standing still, so they won’t give up their customers willingly. Your messaging job is to clearly show the contrast of your approach from the status quo. Prospects must see enough contrast to consider changing.

Like a spaceship trying to make it out of the earth’s gravitational atmosphere, breaking through the customer’s status quo barrier is going to take booster rockets in these four areas.

Lesson #5: Great, where it counts.

When Gladwell messaged it great, the measuring stick was how many books were sold. This isn’t about critical acclaim or awards from peers. It’s about connecting with the buying public and getting them to respond and choose you. It’s about selling millions or toiling in obscurity.

Messaging it great matters in demand generation and sales enablement – the moments of truth where your company is participating in, and looking to take the lead in the customer decision-making process.  These are easily tracked and measured messaging activities.  We’ve been able to demonstrate improvements in response rates, pipeline size, deal size, and quota attainment when companies message it great.

There’s a bulls-eye on Marketing’s back.  Now that senior management knows that these things can be measured, there’s no room for subjective or pre- funnel objectives.  It’s not about followers, or clicks, or impressions, or opinions.  It’s not about the volume of sales materials and training you put out.  It’s about revenue performance and the metrics that matter to the bottom line.

Are you Malcolm or Morton?

It’s not overstating the point to say that “messaging it great” is critical to corporate execution. All the best ideas, innovations, investments and introductions your company makes will mean nothing unless your customer says “yes” to them. And, the one thing that separates you from relevance or irrelevance is developing and delivering a compelling enough story to get them there.

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Posted in Paladin Information Comments (1)

What is your Retention Risk Factor?

Tuesday, November 8, 2011

We are beginning to see counter-offers and bidding wars for top level talent. If you have to counter in order to keep an employee, you might save yourself the cost and frustration by taking care of them now before they want to leave. My experience has proven that a counter offer is just a short-term fix. A loyal and committed employer would serve themselves well to evaluate their company’s risk of losing key personnel who are critical to the success of day to day business and growth. Direct turnover costs per employee are about 25%-30% of an individual employee’s salary/benefits package, according to market research firm InsightLink Communications.

We interview candidates every day and see a broad range of experience and talent. I thought it might be helpful to get another perspective of why people leave a job.

Some of the more common reasons people share with us regarding why they are looking to leave are: broken promises, loss of business, change in management, no growth in role, role has changed, money, benefits, commute, staff conflict, merger/acquisition, review/raise. Almost all of these can be remedied or addressed before people leave.

Broken Promises- Whether real or in a person’s own mind, a broken promise is hard to overcome. It could be as simple as a dedicated parking space or a review that never happens. Once the trust is gone, you have an uphill battle.

Loss of business- Business comes and goes. Unfortunately, the people who support that business do as well.

Change in management- Employees don’t like breaking in a new boss. It is always uncomfortable and creates a shuffling of roles and relationships. No one wants to be the odd man out.

No Growth in Role- Driven employees have a full agenda of what they are trying to accomplish in their career. If the advancement in their career at your firm is not to the level they expect, they will jump to find it elsewhere.

Role has changed- Change is not always perceived as good. A person who is a routine style employee will find any alteration in their work rhythm as painful.

Money- Competitive pay for services rendered is an expectation. An employee may take less when the market is down for survival, but once it improves they will be gone if they are not given a fair increase. Also, there is an unspoken expectation that a person’s salary increases with years of service. It could be in promotion, performance or a cost of living increase. Money is the most sacred of areas protected by an employee.

Benefits- This concern is most important to individuals with families to support or people who might have a pre-existing condition. They need cost-effective and comprehensive options that are broad and affordable. A job with little to no health benefits is a high turnover risk.

Commute- People prefer to work, as a general rule, within a 30 minute commute from their home. Our candidates are reluctant to consider jobs more than an hour commute.

Staff conflict- People do not want to work in an environment where there is personality or personal conflict.

Merger/Acquisition- When two companies combine there is often a redundancy of staff. Reducing the additional people helps control costs and improves productivity. It can be perceived as the perfect time for people who are afraid that they might be on the chopping block to jump ship. Good people who are fearful may jump too soon.

Review/Raise- This is the most common reason I hear from people for leaving a job. It could be because they haven’t had a review and don’t feel valued or that they don’t agree with the reviewer’s opinion of them, or lack of a pay adjustment.

RETENTION RISK Survey

For each statement below, circle the number to the right
that best fits your opinion on the importance of the issue.
Use the scale below to match your opinion.

Statement

Scale of Importance

Never

Seldom

On Occasion

Most of the time

Always

We share all critical company information with staff

1

2

3

4

5

Reviews are conducted annually

1

2

3

4

5

We have had no change in our management team

1

2

3

4

5

Pay increases are an annual event

1

2

3

4

5

Our business has remained strong

1

2

3

4

5

We promote regularly from within our staff

1

2

3

4

5

We reward staff spontaneously for excellent work

1

2

3

4

5

Bad Managers are removed quickly

1

2

3

4

5

Our staff has grown with work volume as needed

1

2

3

4

5

Our benefits are little to no cost to employees

1

2

3

4

5

We have no staff turnover

1

2

3

4

5

We have an average tenure of 5 years+

1

2

3

4

5

Total Score 50-60 You have a work environment where staff grow and are loyal.

35-49 Your firm is considered stable and provides most of the things an employee seeks

25-34 You have and environment that is not for everyone.

0-24 Your firm is at a high risk of losing key staff for better opportunities

This assessment is not a scientific tool. It is based on social feedback and the opinions of staff and recruiters compiling this data.

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Keeping tabs on the marketing potential for tablets

Thursday, August 11, 2011

Did you know that there were more than 700 different tablets on display at this year’s Consumer Electronics Show? That means there were literally hundreds of new opportunities for businesses to connect with their customers. And the opportunities are only going to increase, as a recent report by Harris Interactive predicted that one in every five U.S. consumers will own a tablet by 2014.

Obviously, the tablet market has made significant strides since the introduction of the original iPad. Now, marketing professionals need to make sure that their strategies and capabilities advance to take advantage of the increasing prevalence of this emerging technology.

For example, consider incorporating business-to-business strategies for high-level marketing and sales pitches. Utilizing tablets can give your business a fresh approach that may help your presentations stand out.

Or perhaps you can take advantage of the mobile and interactive nature of tablet technology to evolve the state of your traditional print brochures and collateral. Imagine not just giving static facts and figures, but presenting prospects with a well-crafted story and an immersive atmosphere facilitated by touch responses and real-time feedback. The possibilities, and the potential, are virtually limitless. 

It is clear that you can do much more with a tablet than play Angry Birds or check the weather. Like print, radio, television and web marketing, tablets represent the next great medium by which businesses can engage their customers and fuel growth.

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Employees & Business Strategy

Tuesday, July 26, 2011

employees-business-strategy

Do your employees understand your business strategy and their role in it? If not, how can they be active, engaged and productive members of your corporate team?

Every day, executives are in meetings discussing various aspects of their corporate business strategy—fine-tuning goals, adjusting approaches, addressing challenges. It’s what executives live and breathe every day of their lives. 

But what about the rank and file employees? They’re busy doing their jobs. Likely, they are not aware of changes in the global market place in which your company operates. They are probably not aware of how market changes impact the way you do business. They may not fully understand how they contribute to your success, or failure. And most importantly, I wonder if they are fully aware of what your success or failure means to them – the impact it has on their work environment, the benefits they receive, their income, and in fact, whether or not they have a job.

Let me give you an example that I hope clearly illustrates the lack of connection between employee actions and corporate business strategy. I once had a team member I’ll call Spencer (that happens to be my dog’s name).

Spencer was a terrific employee, except when it came to customer service. When Spencer would get a request from a client, either internal or external, he might be helpful, or, depending on his mood, he might be downright surly. If it wasn’t something our department handled, Spencer would just say it wasn’t his job and end the conversation, not making an effort to help customers find the answer.

One day, Spencer and I had a discussion about his job. I asked if he liked working for the company. “Yes,” he said. I asked if he appreciated the opportunities the company afforded for continuing education. Again, he said “yes”. I asked if he liked his benefits and the annual bonus. His answer was, “of course.”

Then, I explained that the only reason he had a job with nice benefits, a bonus and the opportunity for continuing education, etc. was because of the money customers spent with our company, rather than with a competitor. I also explained how an unpleasant or unhelpful phone conversation or email exchange could cost us that customer, which would then reduce the funds available for jobs, benefits, continuing education, bonuses, etc.

Spencer was, as I said earlier, a good employee. He quickly became a great employee. His change in attitude was so dramatic and so positive that everyone noticed, including the CEO.

Every company has employees like Spencer. Effective employee communications can help them understand their role in making your business a success. Importantly, solid employee communications can help them understand why they have a vested interest in that success. A company-wide meeting once or twice a year won’t accomplish that. But a comprehensive, employee communication strategy that creates an ongoing discussion, will.

 

Virginia V. Mann is an associate of Paladin. She provides clients with Corporate Communications, Public Relations and Public Affairs expertise.

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