Marketing

The Hour of the Underdog

Robert Borneff Marketing , , , 0 Comment
The Hour of the Underdog

Successful, well-managed companies are excellent at developing and improving their products and services, so that they perform  exactly according to the customers’ needs. These companies listen carefully to their customers and everything that may not please the customer is rejected.

Professional market research, good business planning and proper execution of the plan are cornerstones of good management.

Successful companies grow continually to maintain their share prices and to create new opportunities for their employees. To maintain that growth the focus is on large markets that promise a maximum of revenue.

Sounds good! Doesn’t it? There is only one problem. Large and well-managed companies are often good in developing and improving products that already exist. This can be for example a recliner with even more motion functionality or a softer rug or faster closing window shades.

But what about products that are new on the market or not even invented yet. What about products that are currently only sold in niche markets? What about products that provide a lower margin than the mainstream products? For example a recliner with integrated butler to operate the TV remote and provide drinks; a self-cleaning carpet or grocery bags that dissolve into air after 48 hours of use.

It turns out that big companies are often only good with sustaining technologies, meaning already existing products. Regarding new or different products these companies often fail. The reason for that is, that the same management practices that made these companies to industry leaders also make it extremely difficult for them to work with disruptive technologies. This is the conclusion of Professor Clayton Christensen in his book The Innovator’s Dilemma.

So, What’s the Big Deal?

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Warning: Contagious!

Robert Borneff Marketing , , , 0 Comment
Warning: Contagious!

Watch out! Don’t get too close! This is CONTAGIOUS! Is this about a disease or germs or anything like that? No! Not at all! It’s about ideas and products and a great book that describes why some things become very popular and others die before anyone notices.

Jonah Berger explains in his book Contagious that there are 6 STEPPS that make things popular or go viral on the internet. See how you can use them for your messages.

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Reinventing Retail and Design

Robert Borneff Marketing , , , 0 Comment
Reinventing Retail and Design

Retail is changing! In her blog post on June 6, 2016 Jennifer Marks with Home &Textiles Today quotes the last WSL Strategic Retail Survey (”How America Shops Mega Trends”), that 55% of women said their top spending priority is paying off dept, followed by saving (48%) and vacations (35%). Jennifer Marks concludes consumers are losing their interest in accumulating “stuff”.

On the bright side Deloitte found out (Retail Volatility Index 2016), that small and mid-sized retailers are taking market share away from traditional retailers (also see Disruption in Retail). That’s mainly because small retailers can offer niche products and experiences that big retailers can’t offer. These small companies are well informed, prepared and adaptable, so they stick out from the competition.

I was blessed to be able to attend the opening session of the High Point Market in spring 2016 with Polly LaBarre (The Mavericks at Work) discussing “Reinventing Retail and Design”. Polly described in her sweeping half hour talk what it takes to make a difference. The following are her key points of her presentation:

  1. Stand for something

Successful companies differ from the competition in their core values. Some may be specialized on a certain product group others may serve a certain customer group but every company has a mission and values which it stands for.

  1. Do they work of art

Successful companies develop their strategies together in a bottom-up atmosphere. It is an open and honest discussion where all team members participate equal.

  1. Open Up

Successful companies not only have an open working atmosphere (internal),  they are also opening up to the world outside. They are very interested in the opinion of their customers and also take criticism serious.

  1. Lead without authority

Because of the open internal and external atmosphere, hierarchic structures or military style management forms are missing. Everything is in a steady flow. The loss of control is accepted.

  1. Learn as fast as the world is changing

Successful companies know that the world today is changing faster than ever before. Being on top of the development is crucial to maintain the lead long-term.

Certainly this sounds easier than done. But young organisations like Jazzy Jobber don’t have a past to which they are connected too. They are also not connected to expensive inventory or other assets like buildings and machinery. There are also no management structures that could block future development. These are only a few advantages that give organizations like mine a little head-start. Time and effort will show how to benefit from it.

Source:

The next big idea; Jennifer Marks; Home&Textiles Today; 2016

 

 

7 Types of Multi-Channel Customers

Robert Borneff Marketing , , , 0 Comment
7 Types of Multi-Channel Customers

Customers are enthusiastic about shopping, independent of where they go to. It can be the Internet shop, the social networks or in the brick and mortar store.  With consumers increasingly becoming more experienced with the internet, retailers need a solid “cross-channel” strategy. The search for product information, the sales initiation and the sales incentive often take place in other channels than the actual purchase.

Retail of tomorrow means that one thing cannot be done without the other. While some of the customers are happy to receive in-house advice and then shop online, other customers inform themselves online and then buy in the brick and mortar shop. In addition, very often the Internet helps to find the best offer.

This development offers many opportunities for retailers. Companies should find out how to reach their target customer with different sales channels to gain new customers and keep them loyal  in the future. An important part here is the emotional connection of online customers with their favorite online shop.

But who exactly is the customer who buys through these different channels? Roland Berger Strategy Consultants , has specified the following purchase types:

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How to use Digital Data for Your Business

Robert Borneff Marketing , , , 0 Comment
How to use Digital Data for Your Business

The availability of more and better digital data helps companies to better understand their customers through instant feedback. According to Ajaz Ahmed and Stefan Olander in the book Velocity, brands need to use digital data to be “useful” for their customers rather than “convincing”. The following are the seven take-aways of the book:

  1. A Smith & Wesson beats four asses

New technology is changing the rules. With mountains of data available, brands should carefully collect significant digital data to learn about their customers and adapt to the new circumstances. Innovation and reinvention must become an ongoing task. Resisting the change will lead to a decline of the business. Small businesses have the advantage of being more agile and can react faster to change. Small organizations should live up to a culture of innovation and be ready to leap at any given time.

  1. It’s easier done than said

Changes and innovation should be put in action immediately, without long preparation. If it does not deliver the expected results, it always can be changed afterwards. If you know what your customer wants, deliver it before he figures it out by himself. Action tops strategy!

  1. The best advertising isn’t advertising –make meaningful connections

Business is done between people. People need to be connected to do business. Advertising is not enough anymore. The customer needs to be engaged. Digital technology allows more communication in different forms (blog, facebook, twitter, etc.) The customer needs to understand and share the story behind a service or a product. Serving the customer means entertaining the customer and creating emotions.

  1. Convenient is the enemy of right

Shoot for the moon, so you can hit the stars. To be on top of the game it’s necessary to work on the highest level of achievement. Learn from experience – yours as well as others. Make things as simple as possible.

  1. Respect human nature

Use digital data to learn about the customer and combine it with real life experience to make life easier, richer and more fun. Apply your messages to different senses of the human body (visual, audio, smell etc.) Support your customer in choosing the right product. Remember the feeling when a pharmacist gives you the right product for you out of a two shelf collection.

  1. No good joke survives a committee of six

Make decisions based on facts and stand behind them. Do what’s right and not what everybody does. A open discussion must be honest and lead to practical decisions. Be guided by your mission and your values.

  1. Have a purpose larger than yourself

Be guided and inspires by your mission. Dream big and love what you do. Be taken away be the people you serve. Have an overall goal that helps the public.

On a personal note I think that a lot of companies don’t realize the power and opportunities of digital data. Being engaged with your customer and relying on feedback will be a crucial part of many businesses in the next years. Here at Jazzyjobber I am looking for ways to create an organisation that prioritizes what the customer wants and delivers what’s requested.

Sailing Blue Oceans

Robert Borneff Marketing , , , 0 Comment
Sailing Blue Oceans

Business is tough! When you start a business, you should find out what the competition is doing! To gain market-share you have to beat the competition! To be successful you have to offer a better product at a lower price offering better service! – Sounds familiar? We all know this. Business books are full of it. But is this really the way for a company to be successful, in a time when everything seems to be upside down? Can it not even be dangerous to do what competitors are doing, just trying to do it better?

Markets, products and customers are changing today faster than ever before. Who still thinks that phone calls overseas have to be expensive? How much do we have to pay for social media? Can you publish a book yourself today? Hasn’t Amazon opened a store where you can leave with the product without payment?

One way to be successful in today’s marketplace is to not to fit in or stick out of the competition, but to be different. Instead of butting heads with other companies, eliminate the competition by doing what nobody else does. Create new demand for products and services that only you offer. Sounds difficult? It is, but wait, there is help.

W. Chan Kim and Renée Mauborgne developed a strategy to maneuver around the competition and sail in untapped ocean of new markets. Whereas other companies fight in cutthroat competition that turns the ocean bloody red, companies following this strategy may find calm blue oceans to sail in. That’s why it’s called Blue Ocean strategy

How does this work?

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Fair Trade and Home Decor

Robert Borneff Marketing , , , 0 Comment
Fair Trade and Home Decor

In times when one food scandal chases the next one and when the news is covered with reports about miserable working conditions and accident disasters in various countries of textile and furniture manufacturing, consumers are increasingly unsettled.

The Movement

“Good” products are no longer measured by their attributes, but by the stories they tell and their socio economic footprint. Trust is not a given fact, but has to be developed continuously and through transparency companies can establish confidence among their customers.  What emerges is a new type of critical customer that knows his power in a world of sharing and social media. The closer a product is to the body, the more sensitive the customer reacts.

The movement of “Fair Trade” is growing globally. It is the need for certified products in which people can believe in. On the one hand,  because it is important where products and their components come from. On the other hand, it also matters that there was value added in the region of production. Environmental protection, resource efficiency and corporate social responsibility change the economic system in the long term. Growth in the future will be generated by a new mix of economy, ecology and social commitment.  Certainly this also opens a multitude of possibilities for cheating and the fake environmental promotion (Green washing).  That subject will be left for another post here on Jazzy Jobber.

The Opportunity

For a long time Fair Trade products were limited to crafts and coffee, but as the Wall Street Journal recognizes in an article in 2015, “Fair Trade becomes a Fashion Trend”. And by the way, it’s not just fashion, but also home decor.

For companies in the Home Decor industry working with fair trade products may be a way to be different from the competition. It also shows that the company cares about social standards and sustainability. This can lead to gaining new customers who appreciate the added value of Fair Trade products. Last but not least, Fair Trade is an interesting growth market and the demand for fair trade products is rising.

Sources:

  1. Fair Trade – Von der Nische zum Trend; Zukunftsinstitut 2016

https://www.zukunftsinstitut.de/artikel/fair-trade-von-der-nische-zum-trend/

  1. “Fair Trade“ becomes a Fashion Trend; The Wall Street Journal 2015

https://www.wsj.com/articles/fair-trade-becomes-a-fashion-trend-1436307440

 

10 ways to connect with the customer

Robert Borneff Marketing , , , 0 Comment
10 ways to connect with the customer

On my search for ways for companies to connect better with their customers, I stumbled over the book “Emotional Branding ” by Marc Gobé. Even though it is a couple of years old, its “10 Commandments” to improve customer relations are still inspiring:

  1. From Consumer to People : Consumers buy but people live.

Instead of trying to win over a customer create a win-win situation. For example instead of pushing someone into a deal, develop a mutual agreement. The customer may appreciate your approach. Instead of waving a sales sign “valid only today”, ask your customer to show you pictures of the room to be designed. Then develop design solutions together.

  1. From Product to Experience: Products fulfill needs whereas experiences fulfill desires.

Offer more than just price and convenience. Arouse the imagination of the customer and turn “needs” into “”wants”. Add emotional relevance to your product. The age and smell of a chair for example could relate to historical events.

  1. From honesty to trust: Honesty is expected. Trust is engaging and intimate.

Top your best practice policies by eliminating risks for the customer. Generous return policies are great as well as products on trial.

  1. From quality to preference: Quality is a given. Preference creates the sale. 

Offer more than the competition. How is your product outstanding? Sell what others don’t have.

  1. From being known to being loved: The difference between notoriety and aspiration.

Think of telephone companies. Just because everybody knows you does not mean everybody likes you.

  1. From Identity to Personality: Identity is recognition. Personality means character and charisma. 

American Airlines has a strong identity, but Virgin Airlines has personality.

  1. From function to feel: What a product is for and what a product can do

A Harley Davidson is not just a motorcycle. It’s an experience.

  1. From Omnipresence to Presence: The difference between being there and being seen.

Quality tops quantity in advertising. Billboards and commercials are everywhere. Starbucks is at the right place at the right time.

  1. From communication to dialogue: Communication is telling. Dialogue is sharing

 Think of the benefits of social media. Listen to your customer.

  1. From service to relationship: Service is selling. Relationship is acknowledgement.

Howard Shultz, CEO of Starbucks:”If we greet customers, exchange a few words with them and then custom-make a drink exactly to their taste, they will be eager to come back.”

How do you foster the relationships with your customers?

Source:

Marc Gobé: Emotional Branding: The New Paradigm for Connecting Brands to People; 2010

 

Corporate Social Responsibility

Robert Borneff Marketing , , , 0 Comment
Corporate Social Responsibility

In one of my last posts (“Transparent Marketing”) I was talking about the importance of an open and honest business approach. To gain the trust and establish rapport with customer a business has to send truthfully and reliable messages to their customers.

In this post I want to show what influence the internal actions and policies of a company have on its public relations. I am talking about Corporate Social Responsibility (CSR).

A couple of years ago it was more or less up to a company how it was acting and what values it was representing. Thanks to modern communication technology everyone stands in the spotlight. Customers are rewarding companies with more sales for their social responsibility. For example in our community Kroger supports local Non-Profits and the people appreciate that. On the other hand Lumber Liquidators almost collapsed over allegations it would use wood from illegal sources.

Companies that share the the concerns of their customers have a positive impact. And it’s not just big corporations with large marketing budgets that can promote their intentions of doing good. Also small local companies can benefit from supporting a good cause. Here are some examples:

  1. Acting responsible

Customers reward companies that practice good business culture. Being known as  a good employer for example also creates trust in customers. Companies which are thoughtful with their garbage and emphasize recycling show that the earth is important to them. This also counts for efforts to save water and energy.

Responsible companies also show that they care for their customers in offering products that are made out of environmentally friendly materials.

  1. Support the community

Customers like companies which are engaging in the local community and support organisations that provide provide assistance locally. Here are just a few organisations that appreciate support financially but also donated volunteer hours:

-Habitat for Humanity    -Refugees Centers   – SPCA         – Schools and Day Cares

  1. Support of organizations that promote sustainability and fair business culture

Here are four organizations in the furniture industry that stand for Corporate Social Responsibility .

The Sustainable Furnishings Council is a coalition of manufacturers, retailers and designers dedicated to raising awareness and expanding the adoption of environmentally sustainable practices across the home furnishings industry.

  • Better Business Bureau                  bbb.org

BBB helps people find and recommend businesses, brands and charities they can trust.

  • GoodWeave                                       goodweave.org

GoodWeave is helping children in the international rug industry by certifying child-labor-free rugs

  • Forest Stewardship Council           fsc.org

The Forest Stewardship Council sets standards for responsible forest management. A voluntary program, FSC uses the power of the marketplace to protect forests for future generations.

 

In this context in want to close with a quote of Warren Buffet:

Look for three things in a person: Intelligence, energy, and integrity. And if they don’t have the last one, don’t even bother with the first two.

 

Transparent Marketing

Robert Borneff Marketing , , , 0 Comment
Transparent Marketing

In their book “Don’t Think Pink” the authors Lisa Johnson and Andrea Learned call for the need of Transparent Marketing to attract female customers. Over the last years women became the key- customer especially in the home furnishing business.

Transparent Marketing supports credibility. Credibility translates into trust; trust translates into relationship, and relationship can translate into sustained sales. The trick about this approach is to focus on the need of women without directly pointing to it. Here are some areas to emphasize on:

 

1. Focus on key customers

Instead of trying to be there for everybody, the focus should be on a specific customer group. This small group of customers will later on attract a larger audience. Choose niche marketing over mass marketing.

2. Know your customer

Find out as much as possible about your customer. Find out how they act and react. Communicate online and offline as much as you can and listen carefully. Make sure that the message you are sending online through your website and social media is consistent with your real life activities. What are the challenges of your customer? What is their motivation? What are they afraid of? What are their dreams?

3. Be present

Women are always thinking about their family, friends and neighbors. Make sure your customers can use the relationship with you to improve their social connections. Take advantage of the power of word-of-mouth-networks. Be at the right places at the right time, so that your customers always keep you in mind. Work together with other brands for common goals to reach out and explore new markets.

4. Open up

Keep improving the way you make the life of your customers better. Inform your customers about all aspects of your business. Include your customers in your decision process. Always ask for feedback. Use your testimonials to reach out to other customers. Work with referrals as much as possible.

5. Be emotional

Women like to be taken away by stories about how your product will improve the quality of life. Capture her imagination to help her understand how your product or service will fit into her life. Select images, messages and stories that will authentically reflect the values of your customers. A good story will give them the tools they need to visualize what it will be like to interact with your brand.

Apply your marketing to all senses of the customer. The customer will recognize the small things, the background music and the color of your displays and will pay more attention to the message of your store. Offer some little extras that the customer will discover herself.

Never push anyone into buying something. Be sure all questions are answered before the sale will be closed. It’s the experience with your brand that builds the bond with your customer.

6. Be Bona Fide

Your brand should be different from others and stick out of the crowd. Don’t follow your competition!

Show personality and be authentic. Be honest with the strengths and weaknesses of your brand. Work with real life situations to promote your product instead of idealized scenarios. For example showrooms must not be perfectly cleaned up as a display.

Be consistent in what you say and what you do. Two-faced messages disturb your credibility. Encourage questions and provide as much information as possible. Make sure this information can be shared publicly.

Source:  Don’t think Pink by Lisa Johnson and Andrea Learned, 2004