The Magic of Hyper-Links

For some reason I missed this story when it was originally published in The Wall Street Journal:

“Borders Tries About-Face on Shelves” – by Jeffrey A. Trachtenberg

I am always on the look-out for stories on In-store merchandising, book publishing and bookstores. But I missed this one.

However, I stumbled across it via a series of hyper-links:

  1. A post on Seth Godin’s Blog – “Do you have” vs. “Do you want” which referenced…
  2. A post on the Brand Autopsy Blog – “Borders Reducing Its Borders” which was commentary on the original WSJ story about Borders Bookstores’ decision to:
    1. Place more of their books “face-out” on their shelves vs. the traditional “spine-out” style (common in libraries)
    2. This means cutting back on the number of individual titles stocked in each store by @ 10% (9,350 titles)
    3. Because when this new merchandising strategy was tested in a prototype Borders Bookstores, sales of the individual titles placed “face-out” increased by 9%

For anyone who has a life outside of book publishing, book selling and libraries this may seem like a “no-brain-er.”

“Some think the move is overdue. Unlike modern supermarkets, booksellers haven’t done enough to make books look attractive on the shelves, says John Deighton, editor of the Journal of Consumer Research.

“Breakfast cereals are not stocked end-of-box out,” he says. “You want to your product to be as enticing as possible. It’s a little bizarre that it’s taken booksellers this long to realize that the point of self-service is to make the product as tempting as possible.”

“To be as enticing as possible…” As in to pick up the book, look inside and decide to purchase it! Continue reading “The Magic of Hyper-Links” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

Getting the Competitive Edge in News Reporting

Gathering and reporting the news has always been a highly competitive business. It is cut-throat. The race to get “the scoop” or to “break the story” is how reputations are made.

Daily newspapers, weekly news magazines, the 6:00 PM network news, 24/7 cable news, the Internet. The medium changed. However, the way that news was gathered and reported did not change so much.

Until recently.

To properly report a story you had to be there. On-the-ground. Live and in-person. You needed access to your subjects (and their handlers) in order to obtain exclusive interviews. You needed to be present in order to report “leaks” from anonymous sources. The reason that reporters needed to be on the scene was to report the “back story” – the story behind the story.

But now there is a new story. And this time it is about the process of gathering and reporting the news:

“The Buzz on the Bus: Pinched, Press Steps Off” – This is the story in today’s New York Times.

Except… It was also the lead political story on the MSNBC website. And it had a prominent placement on The Drudge Report. And The Huffington Post and at least a half a dozen other Internet “news” sites.

Here is a brief excerpt from the NY Times piece written by Jacques Steinberg:

“Traveling campaign reporters say they try to do more than just regurgitate raw information or spoon-fed news of the day, which anyone who watches speeches on YouTube can do. The best of them track the evolution and growth (or lack thereof) of candidates; spot pandering and inconsistencies or dishonesty; and get a measure of the candidate that could be useful should he or she become president.

Deep and thoughtful reporting is also being produced by journalists off the trail. And some news organizations that can afford it are doing both. But the absence of some newspapers on the trail suggests not only that readers are being exposed to fewer perspectives drawn from shoe-leather reporting, but also that fewer reporters will arrive at the White House in January with the experience that editors have typically required to cover a president on Day 1.”

(Click here to view a slide show accompanying the NY Times article.)

So, today, many news reporters do not have to put up with inconvenient travel schedules, stripping down in order to pass through airport screening machines, fast-food diets, suspicious hotel accommodations and a noticeable lack of sleep. Their editors don’t even need to go to the expense of installing expensive connections to The Associated Press (AP) or Reuters. They just need a 24/7 broadband connection to The Drudge Report.

The Drudge Report is one of the most widely viewed Internet sites. Almost every political reporter maintains a constant connection to his site. And Matt Drudge does not even report! He collects the news stories that others report and he creates “headline links” to the original sources. The only editing that he does is to select the stories to place on his one-page website and to determine their placement or prominence.

And now, it appears, that many mainline media are “doing the Drudge.” They are populating their pages via “links” to the original reporting that others perform. They need news content that is constantly updated. However, the costs of actually going out into the field to gather reports are rapidly escalating at the same time that their subscription base and advertising revenue are in a precipitous free-fall.

So what can the media do? Create “links” to other media sites? This is not a blatant case of “passing off as their own” the original content that others create. After all, the original sources are always credited – and I hope compensated!

“The Medium is the message.”

Marshall McLuhan coined that phrase in 1964. That was at a time when the visual media, especially television was rapidly replacing newspapers, books and radio as the preferred medium for news and entertainment.

Perhaps now, 44 years later it is time to reapply this phrase to our analysis of news reporting – especially in the arena of politics. Continue reading “Getting the Competitive Edge in News Reporting” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

What Price is Right?

I was surprised to see this story on the front page of the Sunday New York Times:

At Megastores, Hagglers Find Prices are Flexible

It seems that “haggling” over prices has made its way from the street corner into Aisle 3 at Best Buy and Home Depot.

“Savvy consumers, empowered by the Internet and encouraged by a slowing economy, are finding that they can dicker on prices, not just on clearance items or big-ticket products like televisions but also on lower-cost goods like cameras, audio speakers, couches, rugs and even clothing.

The change is not particularly overt, and most store policies on bargaining are informal. Some major retailers, however, are quietly telling their salespeople that negotiating is acceptable.”

So now, the big-box stores that are already offering aggressively priced merchandise, clearance racks and “door buster” sales have added yet another weapon in the pricing war.

Good news for the consumer? Yes!

If you drive your car to a shopping mall or a big-box store your willingness to spend is already compromised due to the high price of gasoline. You are looking for any extra incentive before you make a purchase. You have scoured the ads and already know what is on sale. And now, you can practice your bartering skills to drive home an even bigger bargain. This is now socially acceptable – the New York Times says so – right on today’s front page!

Bad news for profits? Perhaps.

When a business sells a product or service they either realize a profit or a loss. How big a profit? How deep the loss? That depends upon the price at which the goods were purchased or manufactured and the price for which they were sold. If you own a store, do you know your “break-even” point? Does your staff? Are you sure? Have you trained them on this?

Products that remain on the shelf (or in inventory) for too long lose value. So, unless you sell precious metals or vintage wines that appreciate in value over time, it is better for you to “move the goods” off the shelf and sell them – even if you do not get your desired price.

Bad new for independent retailers? No as bad as you would think.

Let’s forgo the word “Haggling” – it has a negative connotation – and talk instead about price negotiation.

There can be little doubt that our sluggish economy is forcing most consumers to think twice before making many purchases. We see this most dramatically in the area of “discretionary” spending – electronics, entertainment, fashion, etc. Consumer purchases in these areas has noticeably slowed down.

What’s a retailer to do? Advertise even lower prices? No! Definitely not! This only encourages shoppers to price compare and to use your advertised pricing to get a better price – at your competitor’s store.

Price negotiation is not a bad thing. It is a misunderstood concept. And it can work out to benefit both parties -the seller and the buyer. Successful negotiations lead to a “win-win” situation. One in which the buyer gets some or all of what they want (a lower price, an upgrade, no charge for shipping, etc.) and the seller gets some or all of what they wanted (sell a product that has been sitting around, sell more items – a quantity purchase, sell accessories at a full mark-up, etc.)

Negotiation requires training and information. Most big-box stores suffer high employee turn-over rates. The staff does not stay put long enough for good training  to become effective. An independent store that invests in staff development can turn this to their advantage. Continue reading “What Price is Right?” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

WOW Your Customer! – The Power of One Front-line Employee

customer-satisfaction-book.jpg My birthday is this week and that always brings back many memories. I like memories. I like to tell stories of memorable experiences. And I like to hear about the memorable experiences that other people experience. Memorable experiences in customer service are rare. That’s why I like to celebrate them when I hear about one.

I was re-reading Jeffrey Gitomer’s book, “Customer Satisfaction is Worthless. Customer Loyalty is Priceless,” and I want to share a personal story that ties both my birthday and this book together.

About 15 years ago I was flying home from a convention in Germany. I presented my passport to the ticket agent at the Frankfurt Airport. After the usual pause, she looked up at me and said, “Mr. Rocks – may I be the first person to wish you a Happy Birthday today!”

I thought that that was a nice gesture. It put a smile on my face and I walked away from the counter feeling better than usual. I like to be noticed. I enjoy being recognized. I like it when the hotel operator calls me by name. I have come to expect it. The hospitality industry trains its personnel to recognize people by their name. This has become standard operating procedure.

So back to my story. I was making a connection in London and had about an hour between flights. I checked in at the front desk of the Airline Club at Heathrow Airport and got my second surprise of the day. The concierge said, “Welcome to London Mr. Rocks. We are delighted that you can spend part of your birthday with us. Would you like a bottle of Red or White wine? German or French? Happy Birthday!”

How did they know it was my birthday? I did not present my passport; only my membership card. Did they have this information flagged in their computer system? I had to find out, so I asked.

No, they were not able to capture that information in the computer but they thought that that would be a nice touch. Rather, they told me that they had received a message from the lady who ticketed me in Frankfurt. She sent a computer message to the club alerting them that I would be stopping by while in-transit and that it was my birthday.

WOW! Now that was something special. That caught my attention! What a fantastic gesture from the lady in the Frankfurt Airport!. Front-line service at its best!

Why did she take the time to send this message? What made me special? What made me stand out? Is this something that she was trained to do? Or did she just take the initiative to do something out of the ordinary? Regardless, she really made me feel special! Continue reading “WOW Your Customer! – The Power of One Front-line Employee” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

Closing Your Business to Work On Your Business

News Flash! Starbucks is closing all 7,100 of their USA stores today at 5:30P.M local time! Incredible!

Except … They are not permanently closing up shop. That would be drastic!

Rather … They are holding a 3 1/2 hour mandatory, company-wide training session for all 135,000 store employees. That is dramatic!

That takes guts! And Howard Schultz, the founder and CEO has consistently demonstrated his vision and leadership. We know he has guts!

(Click here to read more about this dramatic event.)

I am sure that many business owners are saying, “How much is that going to cost them to close down all stores for 3 1/2 hours?”

The bigger question – one that I am sure they will be addressing during their training session – “How much will it cost Starbucks if we don’t invest the time to restore our enthusiasm, improve our service and revisit our company’s culture?”

Starbucks has two choices :

  1. Allow themselves to sink down and accept that they have become a commodity as they face increased competition.
  2. Rejuvenate themselves through special training. Re-visit what they must do to elevate the “Starbucks Experience.”

Happily, they chose Option #2.

Whatever short-term loss they have in lost revenue will be gained back in long-term profits and improved customer loyalty.

Here’s my resolve – First thing tomorrow, I am visiting my local Starbucks to see first-hand how they have changed as a result of today’s training!

I realize that it will take some time to rebuild the romance of the “Starbucks Experience.” I am eager to watch it evolve!

What do you think about this? Please add your comments below. This is a great topic for discussion!

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

What is Your USP?

“Our faith in the present dies out long before our faith in the future.”

– Ruth Benedict

Do you know your USP? More important – do your customers know your USP? What – you may ask – is a USP?

What does USP stand for? In many ways, your USP identifies exactly what you stand for!

Your USP is your Unique Selling Proposition. It is the specific benefit that your customers get from your product or service. In order to have a successful USP, it is vital that you understand these 2 points:

  1. Your customers need to perceive what you offer as a real benefit to them. It has to be a benefit that really matters.
  2. You must be the first to claim this benefit.

Creating your unique selling proposition also allows you to focus your business. It is a constant reminder of why you remain in business. Why your customers choose to do business with you – and not with your competitors.

Here are a few examples of truly memorable USPs:

  • Federal Express – “When your package absolutely, positively has to get there overnight.”
  • M&M Candy – “The milk chocolate melts in your mouth, not in your hands.”

Are these merely advertising slogans? No. They are operational imperatives.

Federal Express created their business to deliver packages overnight. Long before many customers realized that they actually needed to have their packages delivered overnight. Once enough customers started to see how overnight delivery of packages was important, other transportation companies started to offer overnight delivery.

That is when Federal Express realized that in order to stand out from their competitors, they needed to offer a guarantee. An not just any guarantee. Not just an offer to refund the money if the package didn’t arrive on time. Not just a coupon offering a discount on the customer’s next shipment – (and why would you care about the next shipment if your current shipment didn’t arrive when you promised?)

Their USP – “When your package absolutely, positively has to get there overnight.”

Here’s an interesting sidebar that illustrates leadership and vision. On the first night of operation, Federal Express used:

  • 389 employees and 14 aircraft to deliver
  • 186 packages overnight to 25 cities in the USA

FedEx helped to create the demand for overnight package delivery. There was little perceived need for this when they began operations. Once enough customers perceived that they needed overnight package delivery FedEx needed to cement their name and reputation in the front of the customers mind. And they needed to structure their operations to ensure that they would fulfill their USP – “When your package absolutely, positively has to get there overnight.”

No other package delivery company can claim that USP. UPS (United Parcel Service) had to create their own USP. They had to differentiate their business. That is why you have to be the 1st person or company to claim your USP. Continue reading “What is Your USP?” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

Don’t Blame Your Customers!

“A business without customers isn’t a business.”

– Anonymous

If you are running a business you know that your number one job is to attract and retain enough customers to remain viable. You need to attract enough customers who want to buy what you have to offer. You also need to entice your customers to return and make additional purchases. And… you work hard to delight your existing customers so that they, in turn, will recommend your business to their friends and associates. That is a smart way to build your business.

It is also a smart way to run a political campaign.

To get elected – or nominated by your party to run for election – you need to attract enough voters who want to vote for what you have to offer. And… you work hard to encourage the people who are now ready to vote for you to encourage their friends and associates to consider voting for you.

But the primary responsibility for success resides with you – the business owner or the political candidate. You must offer something that your customers want to buy; something that voters want to support.

Successful businesses do not make sales. Rather, they develop enough customers who are eager to buy the product or service that they offer for sale. Likewise, candidates need to develop enough voters who are eager to support their cause. Voters who are willing to recruit others in support of your campaign.

All of this seems rather simple and straight forward. And it is. The complexity lies in how you ask for your customers business; how you ask for your supporters vote.

People love to buy but they hate to be sold. Likewise with voters. You can – and should – tell them that you need their support; you need their vote. But I would never tell them that it will be their fault that I went out of business or that I lost the election.

Unfortunately, the Clinton campaign is ignoring this advice. Granted, I am not a million dollar a month political adviser (like Mark Penn) so why should they take my advice. But, I would never say this to my supporters: Continue reading “Don’t Blame Your Customers!” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

Strategic Thinking

“Tactics is knowing what to do when there is something to do.  Strategy is knowing what to do when there is nothing to do.”

– Savielly Tarakover

Name one thing that Sen. Barack Obama has accomplished … Political pundits (Chris Matthews, etc.) have been challenging / brow-beating their guests to respond to this question. Political opponents (Sen. Clinton, Sen, McCain) have been trying to use this rhetorical question to their advantage. So, courtesy of Time Magazine’s Joe Klein, here is one significant accomplishment for Sen. Obama:

He is the only significant candidate whose campaign has not gone broke! He and his staff have defined a successful strategy to capture the Democratic part’s Presidential nomination. 

If nothing else, a presidential campaign tests a candidate’s ability to think strategically and tactically and to manage a very complex organization. We have three plausible candidates remaining–Obama, Clinton and John McCain–and Obama has proved himself the best executive by far. Both the Clinton and the McCain campaigns have gone broke at crucial moments. So much for fiscal responsibility. McCain has been effective only when he runs as a guerrilla; in both 2000 and ’08, he was hapless at building a coherent campaign apparatus. Clinton’s sins are different: arrogance and the inability to see past loyalty to hire the best people for the job and to fire those who prove inadequate. “If nothing else, we’ve learned that Obama probably has the ability to put together a smooth-running Administration,” said a Clinton super-delegate. “That’s pretty important.”

Strategy and tactics – both are important; they are intertwined. Your strategy defines and points you towards your goal. The tactics that you employ enable you to reach your goal.

A clearly defined strategy guides and informs your staff. It shows them they way and tells them what to do – especially when no one is there to tell them what to do; when no one is there to answer their questions.

Your clearly defined strategy provides the answers to these questions: What? Why? and When?

The tactics that they employ to successfully execute your strategy answer these questions; “How? Where? and Who? Continue reading “Strategic Thinking” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

Less is More

“A speech should be as long as a piece of string – long enough to wrap up the package.”

– Anonymous

Read Patrick Healy’s NY Times article, “For Clinton the Speaker, the Smaller the Better” (Click here) for insight into how the venue (where a speech is given) determines the effectiveness of both the speaker and their message.

There are books titled “It’s Not What You Say, It’s How You Say It, and “It’s Not What You Say, It’s What People Hear.” But in his article, Healy draws a sharp contrast to Sen. Hillary Clinton’s shortcomings when she speaks in front of large audiences and her remarkable success in connecting with her audience in more intimate settings. Consider:

“Big rallies are clearly not her strength,” said one senior adviser, who spoke on condition of anonymity in exchange for a blunt assessment of his candidate. “She’s far better at town-hall meetings, round tables, smaller venues. The challenge for her is to connect with and inspire large audiences more than she does now.”

versus

Yet in intimate settings, like her visit on Monday to the Yale Child Study Center in New Haven, Mrs. Clinton comes across far more personably, listening and empathizing and on occasion showing her emotional side. Indeed, at the Yale center, where she volunteered in the early 1970s, she became teary as her old boss praised “the incomparable Hillary.”

I remember Senator Clinton’s “Listening Tour” of New York state when she first ran for Senator in 2000 – and it was a great success. Sen. Clinton is a very good listener – she shows empathy and people really feel that she cares about them and that they have been heard.

And to her credit, she has shown great improvement as a speaker in venues both big and small. However, in my opinion, she needs to improve two things: Continue reading “Less is More” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn

How are you known to your customers?

“The most valuable asset that any company has is its relationship with its customers. It’s not who you know; rather it is how you are known to them.”

– Theodore Levitt, Harvard Business School

I discovered this quote about 8 years ago and it has become my daily mantra. I strive to live by it’s principles.

So, this quote immediately came to mind when I heard the news that Governor Mitt Romney was suspending his campaign for the Republican Presidential nomination. How was Gov. Romney known to many voters? As a “flip-flopper”; someone who frequently changed his position on key issues.

It is one thing to change your position on an issue after receiving new information or after considerable thought and deliberation. Unfortunately, Gov. Romney seemed to change his position based up the audience that he was addressing or as a result of a recent poll that indicated that voters showed a preference for a different position.

Leaders do not listen to the latest poll results. They listen to their heart. They speak directly; not from both sides of their mouth on all sides of a core issue.

In an article on Politico.com, Mike Allen and Jonathan Martin wrote: Continue reading “How are you known to your customers?” »

Share and Enjoy:
  • Add to favorites
  • Facebook
  • Twitter
  • Technorati
  • Print
  • email
  • Digg
  • StumbleUpon
  • del.icio.us
  • Yahoo! Buzz
  • Google Bookmarks
  • Orkut
  • SphereIt
  • Sphinn