Archive for January, 2008

Is your CEO human?

There’s a case to be made that, if you can’t get your company’s internal communications right, it’s unlikely that you’ll be able to engage with your customers in any authentic, believable, or genuine manner. I chose these three adjectives deliberately. Not that I have a habit of using random words but these three in particular lie at the heart of a December press release for a new report that focuses on what a number of CEOs at high profile organisations consider essential for building trust in their workforce.

All well and good, of course, but what struck me was that the ambitions aired and the desired outcomes of the interviewed CEOs seemed stuck on the workforce. It was as if they couldn’t make the obvious leap from realising that what worked for their workforce would work for their customers. Here’s a typical remark from one of the CEOs: “I think employees are smart enough to understand that things aren’t always going great.” Replace ‘employees’ with ‘customers’ and is the sentence – and sentiment – any less valid. Of course not.

The message from the press release and the report in question is that CEOs are keen to appear more human – but only to their employees. Customers will still be fed the ‘positive message’ and the ‘spin’.

December also saw, coincidentally enough, Todd Defren posting his ‘Open Letter to CEO Bloggers’ on the PR Squared blog. It’s an excellent piece on the necessity of listening as a precusor to joining the conversation. CEOs, like everyone else, can get excited by the possibilities of blogging and the opportunities it can bring personally and for your company. Of course, CEOs can be larger than life and accustomed to being noticed. They might expect their blog to be noticed and praised, simply because of who they are. It’s a hard lesson to learn: the web teaches humility. Before you start saying things, try and discover what your audience are interested in hearing.

So, whether a CEO is communicating internally or on the web through a blog or any other social media, being human, admitting mistakes, showing a little humility and, more than anything, being honest, will reap rewards that bluster and spin can never hope to match.

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What happens to my blog posts?

For those of you who are already bloggers, Wired has a great ‘interactive’ diagram of what happens to a blog post once you click ‘publish’. You’ll find it here.

No more interruptions (part 2): why listen?

In the first part of this series of posts I tried to show – from 30,000 feet – why interruption is no longer a valid form of marketing for most companies. I ended by suggesting that before joining an on-line conversation, it was important to listen. I also promised to tell you how but that’s for the next part. For now, here’s a story about ‘why’.

The unwanted restaurant
John is the landlord of a busy pub. It heaves with customers at lunchtimes and evenings. The bar gets crowded and he’s had to add tables outside for warm days and even set up a covered area out back to convert into a beer garden. One thing John has never done is sell food beyond the usual nuts, crisps, and that staple of high pub cuisine – the bags of pork scratchings. He’s lost count of the times he’s been asked if there is a bar menu. Takings over the last few years have been good and John had the cash flow to covert a large room upstairs into a rather fancy restaurant – even if he did say so himself. He brought in a chef, who designed a tasty menu, using high-class produce. The dishes weren’t cheap but, then again, it was high quality food.

In the weeks leading up to the launch of the restaurant, John posted notices around the wall of the bar and left leaflets on the table. As soon as the menus were printed, he left copies in the bar, too. For opening night, John offered a free bottle of wine with every two main courses bought. Standard stuff.

Opening night came. John hoped – and, to be honest, expected – for a hectic night. In the end, the restaurant was never more than half full. The bar downstairs was as busy as ever. Perhaps it would take a bit longer, he thought, to develop the same buzz. He knew that the quality of food was good enough to generate some positive word of mouth.

Over the next few weeks, bookings for the restaurant continued to fall rather than rise. By the end of the second month, only a booking for a wedding party that had lost their original venue to flooding allowed John to pay the restaurant staff.

From behind the bar, John could see drinkers on any given night pick up the menus and look at the leaflets, talk with their companions and….. stay where they were. Occasionally, he’d even asked a punter whether they were going to eat. The replies tended to be uninformative and non-committal.

Poor market research
Of course, what happened was that John took a perceived market for pub food and remade it in his own image. He wanted fancy food and a fancy restaurant. His customers wanted pub food in a pub they obviously enjoyed. They certainly didn’t want to leave the atmosphere of the pub they had come to and go upstairs to a restaurant atmosphere. If they wanted a fancy restaurant, they could take their pick of a large number in the area.

John could have saved himself a lot of expense and worry – and embarrassment – by listening. His clientele were asking for food and were talking to each other about food. Each table in John’s bar was a forum where he could have gathered first-hand knowledge of the sort of food and restaurant that was wanted. Luckily, John saw the light and did just that.

Pub grub
Now the upstairs is as busy as the rest of the pub. The fancy decor is gone along with the fancy food and fancy prices. When people ask for food, the bar menu is exactly what they’re looking for. They even have to grab their own cutlery from a tray at the end of the bar. People love it.

A lot of small companies do a John, if you’ll pardon the expression. They hear a message from their customers or prospects and force it into something it’s not. Something that fits what they want or plan to do. They they’re surprised by failure. Unlike in a pub, of course, it’s hard to wander round and ask all your customers what they really want. There are no groups sitting around tables in front of your company HQ.

However, the internet lets you visit all those tables or forums – a bit like speed dating. (I’m using my imagination here: my one experience of ‘speed’ dating came when I was in my late teens and was set up to go on a blind date. I turned up, she turned away. The gap between expectation and reality was just too great for her. She wanted fancy food and got pub grub, perhaps. Anyway, end of date.) The trick is to find the forums and listen in and then join in.

This is obviously not a task for your busy CEO. So, who listens? And how? Next time.

17.5 million reasons to join the on-line conversation

I received a press release this morning that put in physical terms the way the relationship between businesses and customers is changing. Here’s the gist of the release:

A new poll has revealed that 35% of Brits no longer want to receive printed business directories at home – preferring instead to look up information on the Internet or better still receive recommendations from friends. The results of the poll commissioned by local search website http://www.welovelocal.com and conducted by YouGov revealed that 67% trust word of mouth more than advertising.

Max Jennings, founder of local listings web-site http://www.welovelocal.com, commented: “more than 17.5 million(i) unwanted directories are produced every year, the waste is staggering, particularly when this survey demonstrates that 51% of all British adults are now using the Internet to find local businesses.”

The most telling number in the poll, however, is this: 67% of the British public trust word of mouth more than an advert when trying to find local businesses. Think about that when you next wonder about the ROI of placing an ad in your local directory or free newspaper. It’s no longer even about reaching an audience off-line: it’s about reaching an audience that trusts what it reads or hears.

Word of mouth is fine for small businesses with low capacity in a local market. As this scales – or as your business grows – you still need the trust factor of word of mouth but you meed more voices, more ears, and a wider geographic spread. That’s where on-line conversations take over. That’s when word of mouse begins to make a real difference to your business. Now, and in the future.

No more interruptions (part 1)

Interruptive marketing is on its last legs. People generally don’t want to be interrupted. In the days when traditional advertising ruled the roost – the period Seth Godin defines as ‘During Advertising’ – interruptions were tolerated because it was perceived to be a price worth paying for receiving entertainment (i.e. TV shows) and learning about things to spend money on. Now, though, people face a huge information overload – much of which they choose themselves – and feel able to make their own choices about how to spend their money. That means that they often don’t notice your interruption in the first place. Most of us now record some of our favourite programmes or watch them on catch-up channels. This lets us skip the advertisements. Younger audiences are watching less TV and spending time with YouTube and MySpace instead. Printed advertising in the traditional press is probably in even worse shape: how can advertising thrive in a market that is continually shrinking?

Even companies with the budget for large advertising campaigns are finding it costs more and more to lift sales. This is because they’re still trying to interrupt. They’re like the guy at the cocktail party who wants to talk about himself and wanders round the room butting into conversations. He hasn’t listened to what’s being said in the conversation and he doesn’t care whether they want to hear what he has to say. He just reckons if he tells his story loudly enough and often enough someone will pay his some attention. He usually ends the evening alone by the bar, swaying slightly and feeling sorry for himself. Everyone else appears to be having fun.

But telling a story is good. That makes for interesting conversation. But it’s only a conversation when you tell a story that’s relevant to the listener. Broadcast stories don’t work as a marketing tool. What works is your story being picked up and told by others, one to one. When it becomes many to one and many to many, you know your story has hit gold. The problem for companies wanting their stories to spread is how to tell it without sounding like they’re selling. One way is through listening. How can listening lead to better stories? Simple: by listening to what your prospective market is talking about, you learn what’s important to them, what they want from products and services, and how they want to be approached.

Next problem: how to listen? I’ll cover that in a later post.