Cash flow, creativity, and compassion are not mutually exclusive™

Southwest shows us how to handle a PR crisis

Southwest Airlines turned a safety nightmare into a PR coup that proves the brand really does care about its customers.

We’ve all seen the amazingly campy Southwest Airlines ads that tell us they love our bags so much, they get to fly free. Southwest is trying to prove they are the airline that cares about true service, and it’s an incredibly powerful differentiator in an industry that feels like it will eventually charge us for cups of water. And instead of unrealistic visions of clouds and comfortable passengers with miles of legroom  that other airlines show in their ads, Southwest uses humor and personality to say, “Look, we know flying sucks these days. We’re going to try to make it as fun an experience for you as we can.”

This is carried through down to the employee level. I recently flew Southwest and the flight attendant, upon landing, joked, “How many of you checked bags today?” Many of us raised our hands. Then she asked, “And how much did you pay for those bags?” The answer was a resounding shout of “Nothing!” “That’s right!” she said, “Here at Southwest, we love you and we love your bags, too!”

Recently, Southwest was in the news for a large gash that expectantly tore through a 737 fuselage mid-flight. The plane made an emergency landing and everyone was unharmed. This could have caused a brand fiasco, a PR nightmare. But Southwest stepped up and showed why they are a power brand.

How?  According to this WSJ article, by doing the right thing: being proactive and transparent and putting their passengers before profits. The article reads like a 24 episode, a blow by blow of what happened as the PR crisis unfolded. Every action Southwest took makes you love this brand even more.

They transparently kept press and passengers in the loop on the situation. They also stepped out in front of it by  cancelling hundreds of flights and grounding their entire fleet of 737’s until the cause of the tear could be determined. They walked their talk and showed they really do care about their customers.

Turns out Boeing, the manufacturer, said their models were flawed in terms of wear and tear and are working through tests and investigations with the NTSB. The article states they may have created a  new standard for the industry by being so proactive. “The move allayed passenger concerns and helped the carrier adhere to its aggressive inspection timeline with more control over its own destiny..”

The NTSB praised them for taking action before the government forced them to. That is how you control your brand, even thought it ultimately lives in the minds of your customers. You control all the aspects within your power to ensure people will form the right brand impression.

That’s the thing about brand. It’s all well and good to say you stand for something. But its what you do when the going gets tough that either increases your brand loyalty or completely destroys it. This is one of the marks of a Power Brand: to be able to elegantly recover from a crisis, not just intact, but as a way to prove yourself even more.

Cash flow, creativity, and compassion are not mutually exclusive™

Tracking your every move

I don’t get the whole appeal of location-based apps and ads. I mean, yes, I get that it would make things convenient if my phone could recommend restaurants I was passing by, or a notify me about a special Frappaccino discount at the next Starbucks I was about to hit. When I was single, traipsing around San Francisco in my 20’s, it would have been nice to know where friends were to meet out at a moments notice. But it seems people are just fine with telling the entire free world what they are doing and where they are at every single moment in time.

Am I a luddite? Maybe. I’ve never been an early adopter. But it’s only a few short steps from location-based apps to sinister government tracking devices and I’m not sure I can get on board with that (although they probably know our every move anyway already, given GPS in our phones).  OK, I know, too melodramatic, but on a lesser scale, sometimes you don’t want any powers-that-be – be it your boss, your clients or your mother – to know where you are. How many times have you played hooky from work to take a “mental health day” or told your husband you were one place when you were secretly buying his Christmas present across town?  I revel in my freedom – after all, I fought for it tooth and nail when I was a teen. Why would I give it up as an adult?

I remember living in San Francisco when wi-fi came out at AT&T Park.  People were psyched: you could skip work to go to the afternoon Giants game AND still be productive.  But now, they’d know you were not “working from home.”

Don’t get me wrong. I support targeted marketing. I believe that the better a company targets it’s ads, the less crap I have to wade through that doesn’t apply to me.  There are probably ways to notify advertisers of your location, but not broadcast it to the people in your life, and maybe that’s not so bad. It’s better than telling criminals the best time to go rob my house because I’m in another state.

I’m struck by two film images whenever this topic comes up: one, Minority Report, when Tom Cruise races past a billboard and it knows who he is.  And, two, Wall-E, where we are introduced to a future society of obese humans zooming around on electric Lazy Boys, with their heads stuck in an audio/visual device – thus, inhibiting any interaction they may have with their real fellow human beings. OK, the latter is more about our techno-dependence these days, and I already know the former scenario exists anyway.

Still. I refuse to turn on Facebook Places and the like. I’m holding on tight to the ability to take a day off when I need a break  – without anyone being the wiser.

Do you use location tracking apps or have you benefitted from location-based marketing? Please share your story in the Comments.

Cash flow, creativity, and compassion are not mutually exclusive™

Ask the Expert: Matt Heinz on how to sell your heart out

MattHeinzDo you think Sales is a four-letter word? Well, Matt Heinz can help you break it down into something manageable, repeatable and effective. I sat down recently to grill him on his new book, Successful Selling: How to Attract, Manage, Close & Keep More Business in a Buyer-Centric World, The book answers questions like: What are the secrets to unlocking more sales at a lower cost? How do you match your sales strategy with the way your customers want to buy? Where do you spend your time to build the biggest-possible sales pipeline? How do you close more business when your buyer is in control?

Matt is a sales pro, bringing more than 12 years of marketing, business development and sales experience from a variety of organizations, vertical industries and company sizes. His focus has been on delivering measurable results for clients in the way of greater sales, revenue growth, product success and customer loyalty.

Check out his blog, Matt on Marketing, or follow him on Twitter.

We talked about sales, productivity and the challenges of moving beyond just the founder’s networks when doing business. And I realized how much of what I teach clients about branding applies to selling effectively – which is ultimately what good branding is all about: making more sales.

RS: Do you think company size matters when it comes to who faces sales challenges?

MH: Actually, companies of different sizes, industries and stages often have the same three fundamental problems when executing their sales & marketing efforts. 

One, most often, there’s not enough customer focus.  The sales process is created and driven by how the company wants to manage sales, not based on how the customer buys

Two, many companies also don’t have a consistent sales process they’re following across the organization.  Without consistency, it’s impossible to predict future revenue and scale those efforts to new markets.

Third, few companies evolve their sales & marketing enough as their customers, markets and competition change the playing field.  The best sales & marketing organizations in the world (at companies big and small) are constantly testing, evolving and measuring what they’re doing.

RS: Adaptation seems to be everyone’s weakest link, doesn’t it?! Let’s move on to productivity: You talk about quite time-saving tools in your book. Do you feel time management is the biggest barrier to effective selling?

MH: No, but it’s an important part of reaching your optimum velocity.  Whether you make 40 calls or 80 calls a day isn’t necessarily going to help you sell more if your message doesn’t hit the mark with your target customer.   The biggest outcome of productivity focus is eliminating the constant distractions that surround us every day.  Know what you need to do, focus on it, and eliminate the majority of things that would otherwise take your time.  If you effectively measure the impact and outcome of your activities, you can then predict the impact of doing more of that activity on sales and revenue.  And that expected outcome can become a motivator to stay focused (yourself and your team) moving forward.

RS: Having worked both in both B2B and B2C, I hear conflicting opinions about who “has it easier.” Do you feel B2B vs. B2C companies need to nurture leads differently?

MH: The tactics may be different – B2B companies can often afford to spend more based on the average sales price per customer, for example – but the fundamentals are the same.  Whether you’re selling to a business or an individual (and in both cases, you’re really selling to people anyway), the vast majority of qualified prospects will not be ready to buy.  Right person, right company, not ready.  If you assume they’re going to be in the market eventually, your primary job is to be in front of them at the right time.  A good nurture program builds value with the prospective buyer so that they want to continue hearing from you.  This increases your overall awareness, allows you to continue a frequent line of communication, and will significantly increase your ability to win the business when the prospect is finally ready to make a move.

RS: If someone reading this is starting from a standstill and has absolutely no sales process or standard tools whatsoever, what do you recommend their actual first step be?

MH: Two things, both related.

First, identify your target customer.  Get specific, and narrow.  Get to know them inside and out – who they are, where they are, what background or motivations or needs bring them to the market, who and what influences them, etc. 

Second, use that knowledge to map your sales & marketing strategy specifically to how your customers want to buy.  The best marketers today are simply walking alongside their customers as they navigate their own path to purchase – providing advice and value, building reputation and trust and credibility along the way.

You can use this customer understanding and practical purchase-path knowledge to build the tactics, tools and processes necessary to effectively serve the customer, and scale your ability to do it with more and more customers moving forward.

RS: What advice do you have for companies that rely on the founder’s reputation and networks for new business and want to move to a more scalable, repeatable sales model?

MH: Figure out what it is that makes the founder’s system so effective, and systematize it. Build it into the DNA of the organization.  Document it, measure it, and moving forward iterate on it to improve it.  Michael Gerber talks about treating every small business as the prototype of a franchise.  Even if you’re not planning on opening dozens of branch offices, assume that you will.  How do you replicate and scale what worked in the beginning so that 1) you can scale, and 2) you can (as a founder) separate yourself directly from the ongoing success of the business?

**Full Disclosure: The link to Matt’s book is through my Amazon Affiliate Program.  But wouldn’t recommend the book if I didn’t love it and believe you will get incredible value from it.

Cash flow, creativity, and compassion are not mutually exclusive™

Any Open Letter to restaurants: Stop tarnishing your brand at Valentine’s Day

Oh, how I wish there was a forum to send a message to every restaurant owner in the country and know it would get read.

Just like my open letter to business owners, this one goes out to any restaurant, bar, or eatery that serves us on Valentine’s Day. STOP. TARNISHING. YOUR. BRAND.

We all know Valentine’s Day is a money maker for you. And it’s so easy to say, “Let’s pack in as many people as we can and do a fixed menu so we can cycle them through faster!” I know margins suck in the restaurant business. I know it’s a tough industry in which to be successful. But do you understand what you’re sacrificing for the quick buck?

The last few Valentine’s Days, my husband and I were so annoyed at pre fixe menus. Like cattle, we were herded into what were supposed to be some of the finer dining establishments and crammed into obviously-added tables, elbow to elbow with the patrons next to us. We were given 3 entrée options that were mass produced and only allowed to select certain wines.  It sucked. Many of these restaurants were ones we were trying for the first time (hello? new potential loyal customers?!) and we were so disappointed with that experience, that even though we know it probably isn’t always like that, we have never gone back. The experience soured us on their brand.

My question is: Is ruining your brand for the long-term really worth it?

Just like I don’t understand why churches pack people into hot, sweaty, standing-room-only situations at Christmas and Easter rather than adding new masses – and in the process, making anyone coming for the first time in a while vow never to come back again – I don’t get how you can squander this opportunity to showcase your brand in it’s best light. This is a prime chance to turn first-timers into loyal customers.

We tried to avoid the chaos this year. Thinking we were smart, we went out on Saturday night instead to a place we were so excited about.  But they were crafty: they knew people would be going out over the weekend, and therefore had a pared-down Valentine’s menu (albeit with many more choices than a pre fixe) for the whole darn weekend. The food was good, but we felt we didn’t get to try some of the more traditional options we would have liked.

I know you want to make as much money as you can in one night. But at what cost? Do you really want my first impression of your place to be chaos and lack of choice? How likely am I to return? There is a great restaurant here in Seattle that we tried on Valentine’s Day last year. It gets great reviews. The regular menu looked amazing. But we won’t go back. We feel annoyed and gypped by that experience.

Is your long-term brand reputation and increase in your loyal customer base worth sacrificing for one good night of sales? I guess I would ask that questions of anyone who trades brand building for short-term gain.

Cash flow, creativity, and compassion are not mutually exclusive™

Art + Social Media = Fabulosity (and Marketing Genius)

My good friend and videographer, Philip, sent me a clever social media campaign that I am just now getting around to sharing with all of you (yes, trying to get myself more organized in 2011).  Have you heard of the musical group Belle & Sebastian? They have a sort of a “folksy pop” vibe about them, and maintain a cult following throughout the world.

For the release of their album in August, they did a fun social media campaign that not only engaged their fans, but generated buzz and probably made their SEO rankings zoom off the charts by asking fans to create photo content. The best brand campaigns are the ones that ask your fans to do something (show their loyalty and commitment), promotes your business (what you ask them to do creates buzz for YOU) and creates beautiful content that can be repackaged with the tribe (that’s just my own personal vote.).

Their new album was called Belle and Sebastian Write About Love. When working on art for the album, they captured this image of a hip chick writing the record name in chalk in secluded spots in Glasgow:

 

Write About Love by belles glasgow Photo credit: Belle and Sebastian

So they launched a social media contest, via Flikr, to ask fans to do the same thing (write the album name in chalk in the towns where they live) and upload their photos. Winners would be used in their online TV show, and others would win trophies for “the most striking, scenic, artistic or funny contributions.” Here is the contest page and you can see some of the wildly different, yet artistic and fun entries they received. This insight into the “art” of their fans also probably gave them some valuable intel of their customers.

By doing this fun & spontaneous contest, Belle and Sebastian increased their tribe engagement and loyalty, creating an event that caused people to “check back in” and see how the entries were looking, offered incentives for really putting thought into the entry by offering prizes fans would cherish, and turned their tribe into a slew of field sales reps, promoting their album from here to kingdom come. For every one photograph, imagine the onlookers wondering what the heck each entrant was doing when they came upon them writing the band’s name in chalk and snapping pics?

The moral? Get creative with social media as it can have more arms and legs than you think. The other moral? Promotion does not have to be icky and sleazy. It can actually produce something artistic of which your fans can be proud and which can make them ever more loyal to your message.

Cash flow, creativity, and compassion are not mutually exclusive™

Brand at Work: MOO

I love brands that use every customer touchpoint to delight their buyers. Most recently, I got the chance to fall in love with MOO. A UK-based firm with a U.S. office in Rhode Island, MOO prints mini and full size business cards, postcards, greeting cards and more. You can print different images on each card, and they also use recycled and sustainable products. MOO cares about beautiful design and quality products at a decent price. They inject their fun, friendly and bubbly brand into thousands of little things and really understand the concept of “enveloping” their customers in a brand experience that gets people talking.

I recently ordered some minicards from them to promote my book, Branding Basics for Small Business. I wanted to leave people with a reminder about the book, rather than having them scramble for a piece of paper and a pen.

First off, the automated email message about my order: Full of personality. It starts with, “It’s Little MOO again. I thought you’d like to know, the following items from your order are now in the mail:” and ends with:

 Remember, I’m just a bit of software, so if you have any questions regarding your order, the best place to start is with our Frequently Asked Questions. We keep the answers here: http://www.moo.com/help/faq/. If you’re still not sure, contact customer services, (who are real people) at: http://www.moo.com/help/contact-us.html

Thanks for ordering with MOO – we hope you love your order,

Thanks,

Little MOO, Print Robot

They took a boring, bland auto-email and turned it into a reinforcement of my decision to buy from them. Easy. Simple. No extra cost to do this.

Secondly, packaging: Your package arrives  in an appealing array.  They use package messaging to further reinforce their quirky friendly brand, with little sayings like, “Yay! You’re Our New Best Friend” in the holding case I bought, and a wrapper on the box that said,

“Your MOO minicards are inside*

*Open them quick!”

Everything about them is small, compact and sustainable. They actually design their packaging to be reused. Here is what they say about this on their website:

We think receiving products from MOO should be something special. After all, it’s your artwork, your photography, your event or your business you’re promoting. Something to be proud of and something to be shared. So we custom design our packaging for re-use, resale and recycling. If it’s worth packing, it’s worth packing well.

Third, website copy: Just look at the clever and witty way their website copy is worded and you instantly understand their brand and what they are about. The brand promise carries through in tone and word choice. Friendly. Bubbly. Customer-service focused. Check out this page for just a taste. This is actually a website you want to read and enjoy.

It is very clear throughout all of their messaging that they stand for fun, quality and environmental sustainability.

What does your business stand for? It is clear across everything that you do that this is the promise you deliver? Why not take a look at some of the simple, inexpensive things that you do and see how you can inject your brand voice into them to delight your customers?

Cash flow, creativity, and compassion are not mutually exclusive™

Why should I talk about your business?

Loved this recent post by Seth Godin about why ideas spread. This directly relates to benefits and why people should talk about your company, your cause or your brand. What is in it for them?  Do you know why they should care/recommend/buy? And if you do, is your brand set up to address it so they  know?

It’s one thing to know in your own mind why your business is so fabulous, your services so irresistible, your value so awesome. It’s another to connect the dots for your audience through your tone, words, visuals, elevator pitch and customer experience so that they will also know and understand. That, ladies and gents, is good branding.

Cash flow, creativity, and compassion are not mutually exclusive™

How to write an email that gets ripped open like a 5 year-old’s birthday present

Do you get frustrated sending emails to potential clients or partners that never get opened or fall into the ether? I sure do…

We’ve all been there: we spend hours poring over every word and line of a carefully crafted email only to click Send and wait like a lovelorn teenager by the phone. Cue crickets chirping.

Wouldn’t it be great if your emails were received like candy on Halloween, and recipients couldn’t wait to get their greedy little hands on the content? Hells yeah.

Well, Mike at Toilet Paper Entrepreneur just shared how to make it happen.

I’m loving this amazingly generous video gift he recently shared about how to use behavioral influence techniques in your email writing. The video walks you through an actual email he created for a  client. I learned so much from the video about little tips and tricks to engage readers, cut through the clutter and genuinely build rapport. If any of you are doing emails for business development, partnerships – or even for your loyal community – this is really Must See TV.

Some tips he shares (there are many more):

  • starting your email subject line with a lower case letter increases opens and builds familiarity
  • The technique is based on how we want to be communicated to as humans. You want to Identify, Involve and Include.
  • The sole purpose of the subject line is to arouse curiosity so they open the email
  • In the first paragraph, position the problem you want to solve. In the 2nd, build a relatable story. In the 3rd, tie into the emotion. In the 4th, evoke a positive response by offering a “pain escape”.” And then lay out the solutions you offer.
  • Repeat a key phrase throughout to make it stick and drive home a benefit

Enjoy and please share.

Cash flow, creativity, and compassion are not mutually exclusive™

Philanthropic Giving: Business Model or Brand Message?

As mentioned in a previous post, giving back to the community and maintaining responsible business practices are really hot for consumer loyalty right now. I personally hope this trend continues into perpetuity, as businesses have amazing reach and leverage to make a difference in the world. I pray this is not just a fad.

I read a sidebar in the WSJ today about businesses following in the footsteps (no pun intended) of Toms Shoes. For every pair of shoes they sell, they give one pair to a child in need. Pretty cool. While this may add extra costs or eat into margins, its also the reason why many loyal customers continue to support Toms – and they get ton of great PR around it. The WSJ article states that a July survey by Cone LLC found that 19% of adults would switch brands – even to those with higher prices – to support a cause. That’s pretty powerful, especially during a recession.

Toms passes the extra costs onto consumers, who don’t mind paying it because, hey, they need shoes anyway and want to help people in need at the same time. Now many start-ups are mimicking this concept in small ways. The article cites Warby Parker who gives money to a nonprofit called Restoring Vision or every pair of glasses they sell. And a necktie retailer called Figs donates school uniforms to children in Africa for every tie sold.

While profit margins and growth may be slowed because of this, the companies seem to be trading off brand loyalty and attracting a  certain kind of loyal customer for the long term. That’s pretty smart, if they can keep it going. But I wondered if this is a business model shift or a brand shift? Obviously, you have to tweak your pricing and fulfillment to make this happen, so it does impact the business model and how fast you can grow. But it also ties so closely in with the “soul” of the company and what it stands for – and that is a brand decision if you ask me. It’s promoting a value to attract customers who share that value – which means it’s about a promise and a targeted message. All branding decisions.

Whatever you call it, I like it. And I hope it continues. But maybe that is because I am the type of person they are trying to attract. If someone is striving to make ends meet and cares about price, they are not the target audience for these companies.

Does that mean businesses who engage in this practice always need to be targeting a more affluent customer? What do you think?

Cash flow, creativity, and compassion are not mutually exclusive™

Five Brands That Stand the Test of Time

Guest post by Britney Baker

Many companies and brands have been a flash in the pan, remaining highly profitable for several years or even decades before they eventually fell by the wayside. Others have fallen foul of bad economic conditions, mergers, takeovers, and other business hurdles. Some, however, stand the test of time. Here are five of the most successful and recognizable companies with a long and and illustrious history behind them. They have survived two World Wars, the Great Depression, and the current economic crisis, and they serve as an inspiration to current business owners that it’s possible to persevere in the face of adversity.

1. Ford

Ford Motor Company was first founded by Henry Ford in 1903. Amazingly, 107 years later the company is still the most successful American automotive company. As Japanese companies like Toyota and Honda made in-roads into the American market, Ford’s place in the United States stayed very sturdy as it expanded internationally. The company managed to weather the current recession and turn a profit while other struggling American automakers had to ask for government intervention.

2. Coca-Cola

This soft-drink giant started as a very small company offering a medicinal elixir for a mere nickel in 1886. The company quickly switched gears by altering its product for non-medicinal consumption. The world of beverages has never been the same. Not only has Coca-Cola been extremely popular in the United States, but its presence internationally is staggering. Very few companies can say they sell their product in over 200 different countries.

3. Hershey

The Hershey Company began its existence in 1894. Not only is it the oldest chocolate manufacturer in the United States, but it is also the largest. Hershey chocolate bars and Hershey Kisses have stayed relatively the same product for generations; however, they still remain two of the most popular choices with chocolate lovers to this day. On top of that, the company has introduced plenty of other successful chocolate and food based products over the years. The company will certainly endure for years to come.

4. Kellogg’s

Kellogg’s is a company that began its existence in the tiny town of Battle Creek, Michigan in 1906. 104 years later, it is the largest provider of cereals in the world. Not only has Kellogg’s Frosted Flakes and its other cereal brands remained some of the most popular in the world, but the company has also greatly expanded into other food based markets. Today, the company competes strongly in the market for breakfast foods, snack foods, cookies, crackers, and even vegan foods.

5. Heineken

Heineken has been a very popular beer choice for many since 1873. Heineken International started as a relatively small company in the Netherlands. Since the late 1800’s, the company has expanded exponentially. Today, the company owns 119 different breweries and sells its product in 65 different countries. What is amazing is how well this European brand of beer has made in-roads in the United States. As a brand, it is often thought of as a hip beer choice in comparison to the much more American brand, Budweiser.

Britney Baker is a freelance blogger who also writes for Prepaid Cellphones.net.