What fly fishing can teach us about lead generation

What fly fishing can teach us about lead generation

Feb 22, 2016 | Marketing, Small business, Strategy

 

When I can, I fish for trout with a dry fly in mountain streams. It can be cold, obviously very wet, frustrating, but oh the joy of the feel of a fighting trout on the end of a 2kg breaking stain line, and a light rod.

Often you sneak up a stream all day and see nothing, but sometimes, occasionally in unexpected places, you get  a rise, with luck and skill hook them, and with more luck and a lot of skill and experience, can bring some of them into the net.

So what has this got to do with lead generation?

Well, a lot actually.

Fish where the fish are.

There are places in a river where the trout are more likely to be, at the tail of runs, behind an exposed rock, under the banks, protected by overhanging trees. You can spend a lot of time fishing every inch of a stream, but if you need a feed for lunch, best spend your time going to where the best odds lie.

Patience

You rarely get lucky quickly, it takes time, perseverance and patience, as well as skill, and better yet, local knowledge.

Use the right bait

Trout are fussy feeders. In the really clear streams, you will sometimes see a trout come up ‘for a look’ and pass on the fly. When that happens, it sometimes pays to give a it a few minutes, and change the fly to an alternative. You know there is a fish there, you know it can be tempted, so trying an alternative fly sometimes pays dividends.

Blend into the ecosystem.

Being obvious ensures failure. Colorful shirts, noise, creating any disturbance in the surroundings puts trout off. They are timid, easily scared, and have very good senses that pick up anomalies. Alarm them even slightly, and you have no hope of tempting them to a fly.

Learn to stalk

When you find an ideal spot, and you know there is a trout there somewhere, spend some time watching, noting the nuances of the stream, observing the sort of food that is around, and how it behaves in the water , and particularly if and when your target comes up for a look or rises to take something. Then you have the knowledge to tempt them onto your fly.

The conditions have to be right

Trout are very sensitive to conditions. They will not rise if there is a storm coming, they feel the pressure differences, so they hunker down. Similarly, they rarely rise in the rain. Surprising really, a bit of extra water should not make a difference, but it does. Best times are early morning, when the sun has been up for an hour or so, and still evenings around dusk.

Luck plays a role.

J.P. Getty was once asked how he became so successful. His response  was ‘rise early, work hard, strike oil’.

Sometimes you just get lucky but if you are not in the river at the right time, with the right fly, and doing all the right things, by definition you cannot be lucky. Luck comes with hard work, engagement and commitment.

None of this is any different with Lead generation, it is remarkably like fly fishing. Every lesson I learnt a my old dads knees, hiking through the bush to find the right spots, wading up steams, learning the knots and skills of the sport is applicable to  commercial ‘sport’, where lead generation is an absolutely essential skill for most businesses, certainly all B2B businesses.

As we fly fishers say ‘tight lines’ .

Why many small businesses fail with digital marketing.

Why many small businesses fail with digital marketing.

Feb 16, 2016 | Marketing, Small business

Imagine you discover a compound in your kitchen that will cure cancer.

You know it works because it cured your mother.

That would be a really amazing feeling, to be able to make a huge difference to peoples lives, and find instant wealth at the same time.

Imagine further that you did  not tell anybody.

Your Mum knows, as do your siblings and a few others close to you, the old family doctor is sceptical, and your neighbour who goes to church a lot is downright dismissive, because it is clearly a miracle that has brought the cure, not a chemical.

The barrier between you and success is twofold:

  1. Lack of credibility
  2. Lack of an audience.

So it is with  marketing.

The newest iteration of marketing, digital, is not a cure-all for an ordinary product, non competitive price, lack of distribution underdone value proposition, or anything else that normally leads to failure in the market place, it is just an additional set of options to understand and manage.

You still need both the product customers want and the audience that knows about it.

One without the other is not of much value.

Most small businesses fail one if not both the tests.

No matter how great their product, how responsive their service, without an audience, people who know about what you do and care enough not just to shower praise, but to go out and buy it, and encourage others to do the same, they will fail.

Success with digital marketing is not easy, despite the nonsense to the contrary, but it is a capability now as basic as having a good phone manner was 20 years ago.

 

 

 

 

Why did Thomas Dux really fail?

Why did Thomas Dux really fail?

Feb 10, 2016 | Branding, Marketing, retail

There is a whole lot of discussion around the progressive closure of Thomas Dux stores by owner Woolworths, and the assumption that it will be closed down if a trade sale does not evolve.

Maybe there is a plan to save it, but I cannot see it, and having bought some rubbish grapes at an inflated price in the Lane Cove store during the week,  I do not know what it might be.

Not a lot of the discussion actually addresses the strategic failure that is the foundation of the commercial failure, just its superficial symptoms.

Strategic failure seems to have found its way into Woolies DNA over the past 15 years or so. They became so financially dominant in supermarkets that they forgot that they still have consumers to keep loyal, suppliers to keep in business, and competitors very keen to eat their lunch. They have done OK in petrol, well in liquor, absolutely bombed in hardware, poorly in general merchandise , and missed office supplies, electrical and furnishings completely, and are fiddling around with odd things like pet health insurance. Not a lot of logic in that mix.

I have watched Dux closely since the launch,  had a number of clients products listed, and visited all the Sydney stores multiple times since the first Lane Cove store opened. Until a short while ago, I really thought they would defy the corporate odds, and make it work.

The apparent failure is a sad day for the specialty end of the Australian food manufacturing industry, what is left of it, one less way to reach consumers.

So, with the clarity of (almost) hindsight, where did they go wrong?

 

Confused business model.

Whilst Dux had separate management, they operated out of the Woolworths warehouse, using the WW back office systems and presumably KPI’s which are all focussed on mass merchandise, stock turn and margin. This makes sense to the accountants who seek efficiencies but in the end forces the big brother behaviour on the upstart sibling who needs to do things differently to survive and prosper.

They forgot their “Why“.

Perhaps they never had it beyond a kneejerk response to an upstart competitor. The slogan “Inspiring your passion for food” is at least a half way decent one, until you see packets of mass market products available in the Woolies and Coles stores next door at lower prices. As a consumer, going into Dux , the presence of such items is inconsistent and diminishes any claim to a differentiated and valuable consumer value proposition.

Value delivery.

Consumers are not stupid, there is a limit to the price they will pay for something with a fancy name, fuzzy claim and benefit, and not much else. Pushing the prices beyond that limit in order to boost the GM% is pretty silly, because you do not bank percentages, just dollars. It is a fine line, but by observation, they got it wrong as much as they got it right, which is not enough.

Discounters are not the competition.

Giving in to the accepted wisdom that discounters are winning and that Dux is competing for the same consumer dollar is nonsense.  Consumers are looking for an experience, for specialist products not available in mass retailers.  They started well with their “foodies”, in store chefs available to give advice and recommendations, but the enthusiasm for this potentially differentiating strategy seems to have waned over time. Behaving like a discounter in some Sku’s but like a high end, fancy pants deli in others just confuses consumers, and I suspect their own staff.

What you will not do.

Strategy is, amongst other things, about what you will not do, as much as it is about what you will do. Thomas Dux seems to have forgotten this lesson and succumbed to the temptation to stock SKU’s that did not add to the positioning of Dux as a retailer on whom you could rely on to deliver quality and differentiated specialist food products along with a level of service well beyond the usual expectation. This confuses and devalues the brand. Thomas Dux is like any other brand in a development phase, it requires absolute focus on what makes you different and better. So why can I buy Kelloggs Corn flakes and Blend 43 coffee there?

It takes time.

Dux has been around for a while now, perhaps 10 years? That should have been enough time to establish a defensible place in consumers minds when it is clear there is a segment looking for an alternative to the mass market supermarkets. I suspect that the financial pressure has increased markedly over the last few years as Woolies excursion into hardware drained group profitability. The net result was that the quarterly numbers mattered more than the long term, so savings were made by management, the sort of savings that delivered me the rubbish grapes the other day. If the grapes were not good enough to justify the price, they should not have been on the shelf. That sort of challenging culture requires time and continual effort to reinforce, and a reversion to a quarterly focus removes the management incentive to not sell grapes this week because they are not good enough, they need the margin today at the expense of tomorrow.

 

Meanwhile  Harris Farm, the original target of Dux appears to be powering along. Perhaps Woolies will rue the day they did not buy Harris Farm when they were still young and vulnerable. I understand they tried, but were given the finger by the venerable Mr Harris.  Perhaps they should have tried again, it would have been less costly to both their coffers and their reputation.

What do you think?

 

 

The dirty little secret of digital marketing.

The dirty little secret of digital marketing.

Feb 8, 2016 | Communication, Customers, Marketing, Small business

Achieving simplicity is really hard, we all know that in our guts.

There is however a huge difference between simple and superficial, and again, we all know that but tend to be persuaded to take the easy way out.

The development of a specific ‘Persona’ to which you target your marketing efforts is one of those seemingly simple  things we can now do with digital help, but in fact it is really hard.

Therefore, many make a token effort, and go away satisfied, but have in fact settled for a superficial result.

And then they wonder why the subsequent marketing efforts fail to deliver on the hype.

It is impossible to target a generic message to a 35-year-old middle-class working mother of two, and have it received in the manner you would wish. It’s much easier to target a message to Jennifer, who has two children under four, works broken hours as a lawyer, and is always looking for quick but healthy dinners and ways to spend more time with her husband and  kids, and less time on housework.

As a young marketing bloke we always developed a ‘target audience’ for everything we did.

In those  days they were generally demographic categories, which were pretty broad. If we were lucky and had big budgets, we had a Usage & Attitude study that gave us some insights into consumers behaviour, but were pretty superficial. The research relied on peoples memory, and willingness to actually recognise and admit to the behaviours that drove marketing decisions.

It was relatively rough and ready stuff.

Then  we used mass media to try and reach those demographic groups, hoping to find a few by chance who wanted to hear and act on what we were saying, or even were just prepared to listen.

Progressively we have been able to develop detailed pictures of customers and potential customers, those of our competitors, and those who might be interested in what we have to offer. We now can build a detailed understanding of their preferences and behaviour from a range of data sources,  can direct messages very specifically at very small groups of  individuals, and with many forms of media, specific individuals.

This power is unprecedented , and mostly it is ignored by small and medium sized businesses.

It enables the development of a four sided picture of those we want to reach.

Who they are

Where you can find them

Develop your target persona

Develop your target persona

What are their behaviours that are relevant to your value proposition

Why they should  buy from you

The flip side of the persona, the challenge  most marketers fail to understand sufficiency is that individuals now can avoid you should they choose. That array of digital targeting tools can be turned against the marketer, their messages in one way or another moved to the ‘Junk file’ never to be seen or acknowledged.

Why they should  buy from you, what makes your persona something relevant to a potential buyer?

Because you can solve a problem,  they like/trust you, and/or they engage and relate to you.

Successful selling is not about the transaction, it is the value you can deliver that is more  than the cost of the transaction, and it is about the empathy you can deliver.

In order to create a story potential customers can relate to, you need to develop some sort of story for the character.  Who they are, how they got here, what they have experienced, the obstacles overcome, their character flaws, all the things that make them human. You weave your own characters into the sales itch, and lead people to the conclusion you want them to reach, because you relate to them, they relate to you, your story is theirs.

This means you may need a few variations that accommodate differing ideal customer personas, but not too many or it becomes false and fabricated.

Let me know if I can help.

 

 

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The power of “Why” in a sales pitch

The power of “Why” in a sales pitch

Feb 4, 2016 | Customers, Marketing, Social Media

One of the standard problem definition techniques I use is the classic “5 why” process pioneered by Toyota. Just keep on asking “why” to peel back the layers pf the onion to get to the real problem, rather than just being satisfied that addressing the associated and superficial symptoms is enough.

You rarely get past 5 before the guts are on the table, I certainly never have.
It can be a tough and extended process, but it works.

It also works when you are on the receiving end of a sales pitch.

Late last year I sat with a client through a series of pitches by advertising agencies, all heavy on rhetoric and marketing cliché, but mostly a bit light on strategic and creative grunt.

‘Why do you think this idea will deliver the strategy’?

‘Why is it a great idea as you claim’?

‘Why do you recommend this media mix’?

‘Why do you believe these metrics are useful’?

All pretty valid questions I thought.

As one group of hopefuls left, one asked another not realising I had followed them out to offer a final handshake  “Why was he bloody there?”

Had they been able to answer any of the questions satisfactorily, they may have got the gig, but as it stands I suspect they have no idea why they missed out.

I rest my case.  .

The (almost) impossible task of brand building momentum. A personal story.

The (almost) impossible task of brand building momentum. A personal story.

Jan 29, 2016 | Branding, Customers, Innovation, Leadership, Marketing

What is  a brand?

When you think about it, a brand is a just a promise embodied in a product.

A promise of performance, and delivery of value.

It survives and grows, retains and builds relevance and attraction only when the promise is delivered.

Finding the promise that can be delivered in a way that is sufficiently different to make an impact is really difficult.  Making a promise that is the same as everyone else’s promise, and the brand becomes indistinguishable, just another label on the shelf.

30 years ago I was heading a marketing group that amongst other successes, relaunched ‘Ski’ yoghurt in Australia. The relaunch was a huge success, and over the following 3 years, our national market share went from single figures to well over 35% in a market growing at double digit rates.

There is a lot of patronising bullshit around about the way to build a brand, advice that sounds nice but is usually just a template that promises an outcome, a bit like the paint by numbers paintings an old aunt had adorning her walls. Not very good, and certainly not original.

So, I thought that the hindsight afforded by the almost 25 years since that  Ski relaunch might be valuable as you consider your own brand building exercise.

Following are the lessons I took away, often with the enlightenment that comes with hindsight, as the appearance of organisation and planning is a bit of a fiction, the real situation was considerably more chaotic as we juggled competing priorities, competitive and financial pressure, and all the jostling and risk mitigation that goes on inside big businesses.

 

Be different.

At the time conventional wisdom was that the fruit in yoghurt had to be mashed, the product homogeneous, that lumps of fruit were not good. All the research told us that consumers wanted their fruit yoghurt to be consistent with the fruit mashed and evenly distributed, and the launch of Yoplait a few years earlier had kick started a genuinely competitive race and significant market growth.

We relaunched Ski on the proposition  of taste. The best tasting yogurt, the only one with pieces of fruit. It completely distinguished us from the then market leader, Yoplait, and all other brands, and gave consumers who liked or did not mind whole fruit in their yogurt a real reason to buy Ski. Of course, some rejected it, but many did realise after trying that they did prefer it, and whilst there was a lot of supporting activity and pack changes, the market share of Ski zoomed. A few of the small producers copied us, but the market leader could not, as their whole manufacturing process was designed to deliver a homogeneous product.

The value of true differentiation backed by a brand promise that was carried out and of value to at least some consumers was clear.

Across the range Ski was so different that  it created new segments within  the yoghurt category, segments we owned because we created and named them, and which made competition hard and expensive for our opposition.

 

Get onto a roll.

When you have a line-up of innovations that do add value, you can roll them out progressively and the competitive impact is cumulative, you leave the competition struggling to catch up with your first one, and spending valuable marketing resources to stay in the game while you roll out the second, and third iteration. I would not claim that Steve Jobs knew anything about Ski, but that is the exact strategy that Apple used from the launch of the original iPod on.

In our case, we relaunched Ski with the different product as noted, but we also changed the naming conventions that had prevailed. For example, the low fat version changed from Ski Low Fat to Ski DeLite. Worked a treat, and went some way to redefining the low fat category. The next ‘roll’ of the dice was to relaunch the 1kg size into the now common rectangular packs. To that time all 1kg Packs had been round, as they were operationally easier and the packs were much cheaper. However, we noted that most female buyers, and they made up 90+%  of purchasers, could not easily handle the product in one hand, they did not fit on most refrigerator door racks, and were less than optimal on the retail shelves.

When we changed all this, sales of 1kg exploded, and gave us new retail distribution. We then followed up with Ski Double-Up, a product that had a range of ‘toppings’ in a separate compartment  of the pack, and a completely different yoghurt that emerged from the combination of new strains of culture and operational process innovation,  that revolutionised the market again, creating an entirely new category.

Your customers may not be who you think they are.

Innovation is a powerful way to attract fringe, lapsed or just reluctant buyers into a market. When we launched Ski Double-up the typical consumer was young, educated, and female.  Consumption by men of yoghurt was only about 20% of female. Ski Double-Up changed all that. Not only did it attract more men, they were significantly older in profile, those who would not touch ‘yoghurt’ as it has been with a barge-pole. They tried Double-Up, liked it, tried other versions, and became regular and loyal consumers, adding significantly to the scope and scale of the Ski brand.

 

Start with ‘Why’.

Defining the ‘Why’ of your brand is a foundation of all branding activity. The best articulation of “Why’ is the now famous TED talk by Simon Sinek.  A brand without a clear and distinctive ‘Why’ is just a label. Sinek uses Apple as an example several times, because as he says, ‘everyone gets it’ and they do. Apple is a branding icon, but not the only one. Recently I stumbled across a new brand from a start-up, one that is breaking new ground on a number of fronts, competing against some of the biggest and best marketers in the world, but will (I suspect) succeed on the strength of their “Why’. It is whogivesacrap toilet paper, purchased by consumers  direct rather than via retailers, with a very clear ‘Why’. Many, almost certainly most will not buy into the why, but enough will to make the brand and business a success, and they will do some good in the process.

The corporate benefit of ‘Why’ is that everyone in the business can buy into it, and the resulting culture can become a very powerful motivator and driver of performance. In our case, the ‘why’ was that we were producing a natural, healthy product, our workforce has all been taken into our confidence, and they were our market research as we ran taste group after taste group in the factory during the development process to get the variables right. When the products became very successful, those people  saw what their contribution had resulted in, and took great pride in it, making a huge contribution to improving the production efficiencies .

 

Sweat the small stuff.

Details matter, a lot. Steve Job’s obsession with the experience of opening a shipper containing an Apple product contributed  a core part to the brand identity of Apple. With Ski we pioneered amongst other things a  process that used a new and expensive printing process that both accommodated the square shape of the 1kg tub, and delivered crystal clear graphics. It was expensive and difficult, but  the attention to the detail that could have been dismissed for cheaper more utilitarian solutions paid huge dividends in volume, and profitability albeit at skinnier margins.

 

Be brave & committed.

Nothing really useful will evolve from just doing the same thing as others, but just a bit better. Being different means taking risks, being brave, pushing the envelope, all those clichés that mean someone has to be brave enough to open the door to the unchartered. That takes guts, rare in todays corporate world,  but around aplenty in small and medium sized businesses.

When we changed Ski 1kg to the rectangular tub, there was no way back. Over a week long factory shutdown, the old machinery for  filling the round tubs was removed, and the new rectangular filling machines installed. Had the change failed, there was no way back.

The steps we took with Ski were all brave at the time. We changed the dynamics and shape of the market, a seemingly obvious step,  but at the time it was sweaty palms all around.

 

You have to be smart.

The marketing group had some very smart people, but more than that, it was a collectively smart group. There was great collaboration and support, and the longevity of the group was substantial, which had offered the opportunity to make a few mistakes and learn from them. At a time when the average tenure of marketing personnel was about 18 months, we averaged 6 years, giving us a significant depth of market understanding and intelligence. Just as important, or perhaps more so, we had the support of the CEO of the division who was prepared to support and encourage the things we did, and I am sure his palms were sweatier than any others, although at the time it never showed. His confidence in us, and support in keeping the corporate drones at bay never wavered. Innovation is impossible without that sort of support from the top.

 

It is really hard to continue to succeed.

This is a warning.

If you succeed, when the applause is over and the credit appropriated, the corporate gnomes come out to play, those who do not understand the dynamics of a brand. If you go into a supermarket today, Ski is an also ran, it looks like it is back to single figure market share, a shadow of its former self we had built. The brand we developed was raped by the accountants and sycophants who killed the golden goose by greed, short ‘termism’ and stupidity, rather than continuing to nurture and invest. The temptation to do so will be strong, and it takes a CEO with brass ones to resist the siren call of the throngs and maintain the investment required.

That rot had started a year or so before I was toddled off. By that time the corporate structure had changed a couple of times, and I was unable to keep the support that had enabled the success in the first place in the face of the changed structure and personnel. Unable to stay quiet in the face of the short term lure of the margins instead of continuing the investment for the long haul, I insisted on being the resident ‘Cassandra’  and ended up paying the price.

As I wrote this post I had to shake myself that it was 25 years ago.

Seems like yesterday.

A lot has changed in the marketing landscape, but the essentials remain the same.