Archive for May, 2019

Evaporating Influencers

Friday, May 31st, 2019

Enter “beach” in an Instagram search and you can expect to see the first 30 images stuffed full of perfectly lit, posed images of “influencers”, men and women in various swimwear, languishing on exotic beaches from Ipanema to Koh Samui to Byron Bay. A collection of largely anonymous characters paid to promote brands on social media. The giveaway, a link to the brand with some gushing “heaven” comment.

What started out, as a grassroots, guerilla marketing activity has become mainstream as the media companies and regulators exert greater transparency rules on the influencers and advertisers.

The medium in the rush for authenticity, fake or otherwise, is commanding huge time, energy and resource from small retail brands. Is this innovative or merely fixing a marketing problem? Is it really impacting purchasing patterns? Do the influencers possess real power and authority?

The answer lies in this question: if customers in a high-tech world can check the reviews, prices and quality of any retail clothing product 24/7, 365 days a year globally, do you agree the consumer now “owns” a brand’s marketing?

In other words, traditional sales and marketing teams, and resources are largely redundant.

If you do, the priority is “evangelism”. Highly credible and influential figures, who respond to innovative and creative brands not because they are paid to but because they are passionate about the product or service and see it is as mutually beneficial to promote the brand. So in one sense, little has changed for big or small brands in the 15 years since Tom Ford left Gucci? Perhaps not a lot. Other than who the consumer sees as someone with the power to have an effect, direct or indirect, on their style and purchasing patterns. Some are timeless like Julianne Moore, who is arguably as relevant today as when she first arrived in the entertainment business.

For small, emerging brands, instagram and its’ band of influencers “get stuff out there” but do they really achieve anything more? How do you know who really is watching, reacting and buying? How can you easily capture the data, turn it into information, and information into powerful knowledge you can apply to key strategic decisions? Let’s be honest it is “guesswork marketing”.

Why wouldn’t you if you were a small brand focus on, who your ideal customers are, who they listen to, who they admire, what they read and where they hang out? Armed with that information raise your “voice” and embrace multimedia with stiletto-like marketing spend (word of mouth, networking, speaking, publishing and hosted events).

I mean how many times do you meet someone, who says in response to a flattering comment, “I saw this amazing product or service on the Instagram page of a nobody in Orange County, and thought that is cool, I’ll go and buy it?

Just because Instagram influencers with fake lists of 5,000 or 50,000 followers convince you their medium is your priority, if you are a small, high-growth brand owner wouldn’t you want to maximise your control and power over engaging with your ideal demographic?

Accidental sales don’t count. Prioritising resource where real business lies with some degree of certainty does – “probabilistic marketing” – rather than relying on individuals with zero credibility. Just because it is “cheap” doesn’t make it a valuable use of your time, money and energy.

Customers Trump Investors

Wednesday, May 29th, 2019

Lawyers always advise clients if you cannot win on “fact”, you must try to win on the “law”.

If you are an enterprise technology or “enabling” business, seeking growth capital fast, you may not “win” immediately in convincing the investor but there is no reason you cannot show investors why you are a “winner” in your ideal customer’s eyes. We are talking about “leverage”, and applying tremendous “normative or peer pressure” to the investor’s thinking. The more impressive the customers (BMW), and the scale of the future opportunities (global markets), the more power you have to exert.

Customer Opportunity Assessment (“COA”):

  • Grid A: How much will the opportunity cost to implement (set up, training, operation, licence fees, lease space, new hires, new expertise) vs. How much potential benefit does the opportunity provide (tangible improvements for customers, new products or services offered, self-financing or not, is the risk worth the benefit, how long until we see expected results and so on)?
  • Grid B: How difficult is it to implement your technology (customer understanding, reliability, dependence on support staff, physical space, users’ connectivity ease and experience etc) vs. How close is the improvement to your ideal customer’s current corporate strategy (building a stronger brand, faster innovation, stronger business model, current systems, procedures and methods, faster new customer acquisition, quicker new product/services offered etc.)

You are ideally seeking to be positioned as “low” implementation cost/”high” potential benefit on Grid A, and “low” difficulty in implementing/”high” proximity to your ideal customers’ strategy, on Grid B.

If your attitude is the investor must find this out for themselves or you are wary of asking your own customers, you are dramatically reducing the odds of a prospective investor partnership and committed capital.

If you are serious, you cannot take that risk.

Slowcoach Award

Tuesday, May 28th, 2019

Winner: Martin Griffiths, CEO of Stagecoach, one of the UK’s rail franchisees.

Boarding a recent train from the Midlands to London with my 9yo daughter, we found sweltering carriages, no ability to sit in our reserved seats, a train with 100 people standing, children crying, no food and beverage and no offers of assistance by the train crew. With no prior announcements to passengers or communication on the entire trip, it was an appalling customer experience. This is not an isolated incident judging by recent customer comments.

A note seeking an explanation from the Company’s CEO with images, some 3+ weeks later remains unanswered. For a company embroiled in an ugly dispute with the UK transport regulators, over exclusion from the bidding process (unwillingness to take on the funding requirements for railway workers pension liabilities), this is a PR disaster. Perhaps Mr Griffiths and his firm’s real priority is not his customers’ welfare but their own enrichment.

Chicken Little

Tuesday, May 21st, 2019

When I feed the chickens at my family’s home with scraps from the day’s cooking, the sound of the food hitting the floor has them scurrying out to inspect the cabbage, the pepper, the potatoes peelings and so on. The first on the scene will pluck a few morsels, scuttle to a secluded area and then peck ferociously. If they are impressed, they won’t move. If not, they’ll abandon the morsel, and come back to the pile of food for something more ideal or drift back to what was interesting them previously. They do this daily and have a routine discipline, focus and organisation, knowing that the speed of staving off the competition is as important as the quality of the food they unearth.

I watch a great many entrepreneurs and executives, who seek help with their own hunting and gathering of new business or new investment opportunities. Their antennae are poorly attuned to opportunity (see, hear, read). When it does land, the time taken to jump on the opportunity is lamentable (follow up). They want to endlessly inspect what’s on offer, not knowing what is ideal (needs analysis). The competition repeatedly outsmart them or the opportunity disappears before there own eyes. There is no routine discipline, and there is certainly no allowance (spare capacity or time) for serendipitous opportunities.


If this is second nature for chickens, whose lifespan is considerably shorter and more precarious than humans, why isn’t this automatic in many businesses? Perhaps, they are too well-fed, they are not serious about their business growth or simply resigned to living off scraps forever?

Car Crash Marketing

Friday, May 17th, 2019

I routinely get 10 automated phone calls per month telling me they are from XYZ claims management organisation and saying they understand I was recently in a car crash. Please would I provide my details and they’d be delighted to help.

My instant reaction is to cut them off, and block the phone number.

We joke about Nigerian scams and other idiotic marketing wheezes from remote places on the planets. This is humans deliberately subjecting other humans to time-wasting and intrusion. It is happening in the UK.
We have a productivity problem.

We have regulators, Financial Conduct Authority, and the Information Commissioner’s Office, making great pronouncements about tightening up their policies. My guess is 40 million people in the UK think they are doing a shocking job but they are never held to account for enforcing the rules.

Black and White

Thursday, May 16th, 2019

Yesterday’s presidential pardon for convicted media mogul, Conrad Black, predictably drew polarised commentary along sharply divided political lines. “Powerful friends of Trump”, “That is what you get for writing a flattering book about the President”, and “It is Trump’s way of getting his own back on Comey and his bad cop friends”.

Yet there was little or zero factual commentary about the validity of the pardon.

When we screw the facts of every issue into an editorial or political agenda, we defraud political discourse and our own learning. The irony in that statement is that fraud charges are where the whole Conrad Black case started.

Dumb Expense

Thursday, May 16th, 2019

The problem with short-term corporate travel edicts, is not the policy, it is the immediate skills and volition of the people required to implement it, at the operational level in businesses. Think relationship first, then money saved.

How much sympathy would you have, as a client, for a business partner, who turns up late, flustered and cuts short your meeting because they thought they were “doing the right thing”, by choosing a cheaper travel alternative that offered zero flexibility for delays? This happens daily, in cities across the globe. The biggest culprits reside at the middle manager and junior levels of large companies, who “lean” on their brand’s goodwill until they fall over.

The underlying message is obvious: you are not the priority of the person sitting in front of you, and in all probability, they lack the means and authority to improve your condition. Why would you deal with them next time?

Insularity

Monday, May 13th, 2019

When your passion, energy and focus is laser-like on a singular objective that is to be admired (building a career or a business). However, when it is applied to the total or increasing exclusion of all other interests, experiences and people, you are creating a personality of very limited interest or attraction to others.

The process of “change” required to move from the status quo, in those situations, to a more appealing one, necessitates a very sharp right turn (cultivating new and diverse interests, joining new groups, educating others and so on).

I love to ask people, “if I didn’t know you – why would I be drawn to you?” Most people find that a provocative or even uncomfortable question to answer, particularly those with high affiliation needs. It is an important question to consider because the ease of consciously or subconsciously shielding or cutting oneself off, increases exponentially with greater wealth and success (The “Howard Hughes” syndrome). Note age is not a factor.

If you are doubting me, take a trip to the Beverly Hills Tennis Club for lunch. A secluded retreat on N. Maple Drive, where silver-haired retirees gossip over their linguini mare, the cosmetic surgeons wave to their former playing partners (few play tennis), as they shuffle between tables, and the ageing Jewish ladies bemoan the lack of class on offer at the Met gala (“Lola, d’you see hurr? How could she, really?!”). I have been a fly-on-the-gilded wall. Dull, dull, dull!

Rushing To Business

Wednesday, May 8th, 2019

In M&A advisory, it is hard to form partnerships in success with sellers of businesses, when you coerce them into signing mandates and accepting terms without first building a trusting relationship and reaching conceptual agreement on their desired outcomes and the improvement in their condition.

Just as founders and entrepreneurs need a “blueprint” for selling their business, so do those seeking to advise them.

If you insist on pulling out the exact same club on every tee, without looking at the layout of the hole in front of you and the other factors that might impact on where the ball lands, little wonder that more often than not your ball finds immediate “trouble”.

Is that the type of expertise you’d hire if the roles were reversed?

Maximum Insecurity

Tuesday, May 7th, 2019

In a free world, when you refuse to accept others comments/questions about your decisions (Kentucky Horse Racing Commission) and your “rules” seek to render them powerless (no right of appeal), you fuel conspiracy theories and their vengeance. Governments and regulators are masters of this failed strategy, which only goes to prove the stupidity of the system in the first place.