Thoughts From The Cake Scraps

What do you see when you look at this picture?  Do you see a game of Jenga nearly complete?  Do you see a tower of block about to fall?  Do you see the next block that you would take out and add on top?  It all depends on your perception.

Many people will just see the picture as a game of Jenga.  Passive.  Just a picture.  That may be true, but what it represents is opportunity.  Yes, there is risk in taking the next block out.  But – as they say in a casino – you cannot win if you don’t play.

The economy is in an interesting state right now.  Things are a little wobbly.  But the interesting part is that we can change it.  All this is is economics.  As business pull back and cut ad spend that means that if you were to buy what they are leaving behind it will not only cost you less, but you will gain market share.

This won’t work with all businesses and all products.  Some things just won’t sell with things as they are.  Then go somewhere else.  Wal-Mart is growing.  McDonalds is growing.  Thrift stores are growing.  It is easy to just dismiss these things as obvious.  Resist the temptation.  What they are really doing is providing a service that people are seeking out right now.  Yes, in this case it is value, but it doesn’t have to be.

Really think about how your business can fit a need for the modern customer.  If Lands’ End had never expanded into apparel, would they still be around?  BMG is canning its mail-order membership.  I just got my “Final Mailing” because they are getting out and moving into a discount model rather than a mail-order model.  (On a side note, did you know that if you forgot to decline the ‘Featured Selection’ you could just write “Return To Sender” on the box and they have to ship it back and don’t charge you!)

The point is that people still have needs.  Visualize how you can help morph your current business to fit a need.  It may be as simple as shifting your marketing to promote value.  Or if you are doing that maybe you have to highlight the value and some other feature that the product has.

Winners and losers are being determined as you read this.  Which side is your company on?

This has been a Thought From The Cake Scraps.

An interesting thing happened to me the other day. I was having diner with a friend at a Mexican place and I had a craving for a quesadilla. I scoured the menu for quite a few minutes and came up with nothing.  I sat there thinking to myself “how can a Mexican place not have quesadillas on the menu?  Perhaps they don’t actually eat quesadillas in Mexico and this place is hardcore authentic.”

Now I have no idea if they actually eat quesadillas in Mexico or not.  Frankly, I am more interested in food that tastes good than if it is placed into the “correct”category.  That said it was still a let down.  I had settled on something else and was ready to order, but I made a comment to my friend about how bummed I was.

It took him about 10 seconds to locate them and point it out to me.  What, you might ask, was my problem?

I’m not sure if it is from reading too many blogs, going to too many websites, or just filtering out stuff just because but I missed the whole section.  After looking at it a bit closer I think I figured out why.  It was made to stick out.

That might sound a bit counter-intuitive at first, but its not.  I skipped it because it had a different background then the rest of the menu.  It was colored to stick out.  But for whatever reason my brain just skipped it.  Near as I can figure, it is just because if the menu was a webpage that is where the advertisement would have been.  Or at least it was blocked off and so my brain just read it as advertisement even if it was in the wrong spot to make sense.  I just ignored the whole section.  Keep in mind that this is while I am activly searching, trying to find something in the menu and I still skipped the whole thing.

For me it proves how cluttered the world is.  It proves how hard it is to stand out.  It proves that the game has changed.  What used to stand out and draw attention no longer works because people’s brains have been overstimulated with advertisements.  Do you even notice the product placement in moves/shows?  Sometimes it is painfully obvious and you can’t miss them (and then it just looks dumb) and the other times you miss them entirely.  Too much clutter.

Do you ignore clutter?

This has been a Thought From The Cake Scraps.

When looking at a web site process, such as registration, it doesn’t take much testing to figure out that the answer is always less.

What information should we collect?  Less.  What questions should we ask?  Less.  How many steps should there be in checkout?  Less.  Less.  Less.  You get the idea.  The reason is that each step or bit of information, or whatever is another obstacle that the visitor has to overcome to convert.  Why add things that actually prevent the visitor from taking the desired action?  Because you’re greedy.  That is the only answer.  If you do not have a guest checkout, you’re greedy.  If you force someone to put in their address when signing up for an account to access ‘premium website features’ you’re greedy.  You only need an address to ship.  Don’t be greedy.

I was looking over a Slim-Fast package and saw this box that lets you “customize your weight loss journey”.  It sounded interesting.  I’m not overly concerned about my current weight, but was curious anyway so when I had a chance I decided to check out the site.

This custom weight loss plan is on the homepage.  Like dead center on the homepage.  You can’t really miss the red “Register Now” button.

The Slim-Fast Homepage

At this point, for me personally, I was already a bit hesitant.  I’m thinking to myself, why are they calling it “register” and not “Get Your Plan Now” or at least something that doesn’t sound as impersonal as “register now”.

Anyway, because I was interested I click through anyway.  Point them.  But look at the ridiculous amount of information (click to enlarge) they demand from the visitor (in this case me):

So here I am, all interested is seeing what Slim-Fast can do for me and this is what they give me.  It is about the worst possible experience I could imagine.  But, I pressed on.  I really wanted to see what this “customized plan” was going to be.  So, like any person who has no interest in giving out tons of information for no reason, I filled in the stuff with a bunch of junk info.

Boy did they get me.  After I took the time to fill the whole long form out (albeit with bad info) they don’t even give me the plan.  They e-mail it to me.  Well, I didn’t put in an actual e-mail address so it when to some random person.  At that point I just lost interest.  I could not go on.

So with all of this in mind, what was Slim-Fast looking to gain with all of that information?  Would they mail me crap I didn’t want?  Just e-mail me the coupon.  What could they possible need all that information for?  Invasive marketing was my only thought and that is why I gave them bad information.  I don’t want to be invaded upon any more than I can help.  But the bigger miss here is what they lost.

Sure, they lost my interest but they lost something much more than that.  They lost my money.  Imagine, here is a customer all set to lose weight.  They not only want to lose weight, they want to lose it with Slim-Fast.  And beyond that, they not only want to lose it with Slim-Fast, but they want a diet plan from Slim-Fast that will – in all likelihood – contain a fair amount of Slim-Fast product.  From snack bars to meal bars to shake powder to a shake-in-a-can.  And then different flavors of all of those things.  This was a free pass for Slim-Fast to sell a lot of product to a customer that wanted to be sold to.

Instead of taking this easy money, instead of helping me toward my personal weight loss goal – and using Slim-Fast to do it, which I would certainly tell my friends about -, instead of any of that they got a visitor that was just pissed at them.  I wrote them a letter telling them how bad of a site they had and pointed out the huge opportunity they were missing out on.  After several weeks I have not got a response.  This is not how you build your brand.  I guess I shouldn’t be surprised.

Give information about your product freely.  Get a customer to engage with your product for free.  If you are a quality product they will be more than happy to give you the rest.

In fact, this is a perfect opportunity to quote the late founder of Lands’ End – Gary Comer (who was a billionaire – so yes, it works):

Take care of the customer.  Take care of the employees.  The rest will take care of itself.

Do you agree?

This has been a Thought From The Cake Scraps.

You don’t have to look very far or for very long to find a slew of people doing predictions for 2009.  If you look around, many of those same people made predictions for 2008.  And just before they posted their new 2009 predictions they reviewed the 2008 predictions.

The interesting thing to look for here is what story are they trying to tell.  How many predictions did they get right?  Or, more imporantly, how many did they get wrong?  It is not about laughing at the wrong answers but rather evaluating why they got them wrong. 

If they are right on all accounts then where is the vision?  Where is the reach in the predictions?  This is not to say that a person needs to make outlandish predictions, but a key element is stretch.  And if you have sufficient stretch in your goals then you will get some wrong and that is a good thing.

With all of that said here are my predictions that I am coming up with as I write this.  I have no idea what is going to come next.

1. There is going to be a massive, and unexpected, rise in coffee consumption which will be the indication that the economy is on the uptick.
2. A 62″ TV will be priced under $1,000 and a Blu-ray player under $100.
3. Microsoft will be sucessful in rebranding itself while Apple will stagnate.
4. Some new type of TV show will compete with reality TV and crime shows.  This will not be on a major network.
5. Clothing companies will start putting buttons on boxers – or put them on again since they took them off.
6. Netbooks become not only a status symbol – but significanly impact laptop sales.
7. I will win.  Not sure at what, but some large victory will be mine.

So there you have it, 7 baseless precitions for 2009.  Have a great year all.

This has been a Thought From The Cake Scraps

If you do any sort of marketing, for your blog, business, or otherwise, the question that you should always have in the back of your head is “How will this be perceived by my customers?”

You can have variations such as “How am I presenting my brand to the customer?” or “How am I enriching the customer experience?” or countless others but the bottom line is what is your customer going to perceive.  It doesn’t matter what your intent is.  It doesn’t matter what you think you are saying or how you think you are presenting; only what is perceived matters.

I was purchasing a plane ticket recently with NWA – which had some really great fares by the way – and was all set to pay when I saw this:

Protect yourself against loss of non-refundable fares and change fees (up to $3,000) by purchasing Trip Protector. Trip Protector offers coverage for you and your traveling companions in the event you have to cancel or interrupt your trip due to unforeseen injury, medical emergencies, accidents or other covered reasons. See price details and terms and conditions

Now I can see the intent behind this note.  I can see that they are trying to be helpful (as well as make more money).  For me this just doesn’t do it.  Let me explain why.

First of all, my ticket was just over $200.  I am not really worried that fees could be $3,000.  That just doesn’t make sense.  I would be better off just not flying and buying a ticket from a different airline.  But lets pretend for a moment that NWA is the only one that flys to where I am going.  And lets say that I do have to make a change to my flight.  And lets say that my fees are $3,000 (in case you didn’t catch on, all of this happening at once is not very likely).  I am going to be really upset at NWA.  I won’t care that I could have purchased this protection.  I am just going to be upset.

My real problem with this is that NWA is choosing to use a hard-sell scare tactic.  “You could be charged $3,000 if you don’t buy this.”   Interesting.  Who exactly is going to charge me this fee?  Oh, that’s right, NWA is.  They are trying to scare the customer into paying for this service or else they are really going to get your money later.  It is just like insurance except that at least with regular insurance you don’t pay the insurance company if you get hurt with out insurance, you pay hospitals.  Here NWA gets money either way.

I understand that it does cost an airline money when you want to switch tickets.  I understand that there can and should be fees for changing.  I just don’t think they should try and scare a customer with $3,000 of fees on a $200 ticket.  It just seems odd that a company sells a service to avoid their own fees when they could change the pricing on their fees at any time.

For NWA it is probably simple.  This probably works.  People probably buy it more often.  But I just don’t feel as good when buying the ticket.  Can you really love the enforcer who comes around asking for money or else you may really pay extra for it later?  And if I don’t love the company, why come back?  The race to the bottom on price only gets you so far.

Do you ever buy “Trip Protection”?

This has been a Thought From The Cake Scraps.

In this post I return to the topic of virtual goods. I have previously written about virtual goods and how I don’t particularly get them. Clearly there are many reasons why a person would buy such a thing, but I thought that Fantasy7 did the best job making an argument that when you buy a virtual good, such as a gift on Facebook, you are really buying an experience for whomever you are buying it for. Fantasy7 did not look at it so much as a gift of property, but a gift of enjoyment to the gift recipient.

This does make sense in a lot of ways, but the financial side of me is not yet done kicking. This time I will stay away from video game objects, virtual gifts, and other such things. I will go after a major market: digital music.

Understand that I don’t have anything against digital music. I love my iPod Shuffle as much as the next person.  I love the ease of use, transfer, and search capabilities of a mp3 library.  My issue is the future.  What happens when you no longer like an artist and you want to get rid of the CD?  There is no garage sale.  Amazon cannot help you. eBay cannot be there for you.  You simply cannot sell the CD when you are done because it is just a file.  Even if you take the money aspect out of this, you cannot share (legally) your music with anybody.  So really when you spend that money, you had better be buying for the experience for the song rather than the song.

But really this is expanding beyond just the music world.  There are audio books, books for a reader like Kindle, entire video games, movies, pictures, etc.  Basically anything that people can figure out how to get on-line, they are putting on the internet.

What does this mean to the world of artistic photography?  Can you really justify paying for an digital copy of a piece or artwork when it takes nothing to create the same thing.  There are no numbered prints; I can just print my own.  The artwork is the artist’s brand and with digital distribution they have no control over their brand.  As for DVDs and CDs, whether you like to admit it or not, there is a certain sense of pride to have a DVD filled wall or shelving unit.

What do you think?  Is the age of Antiques Roadshow dead?  Will there be anything to pass onto the kids for the items I am talking about?  If not, does that say anything about this generation?

This has been a Thought From The Cake Scraps.

What is the market doing?  How is my site doing in relation to other sites?  How much time are people spending on my competitors site?  Hitwise can tell you all of this.  The real question is where do you go from there?

It has been my experience that people fall into two categories on this topic.  In the first group are the people who are absolutely convinced that you need to know how your competitors are doing and that Hitwise data is a must.  Residing in the second group are the people that say that the data may be interesting, but “it doesn’t impact what we as a company need to get done.”  It is important to note that the latter group isn’t saying the data is useless, rather it is just not going to impact what the company does.

That is what is said in the meeting.

In practice I have found that the data does impact the business.  People do make decisions on the data – and they should!  Don’t ever believe otherwise.  You have to know what your competitors are doing if you want to position yourself correctly.

Take the simple statistic of traffic to a site.  On one hand it is easy to say that you cannot change the traffic to another person’s site.  The data is not actionable.  Just focus on your own site.  I ask you to look deeper for a moment.

You know that your traffic is down 10% – perhaps you even have an alert set for such dips – but their traffic is down 15% to last year.  You could look at this and think that you are doing better than them.  That is good.  Keep doing what you’re are doing.  Then you look at your ‘competitive set’ a.k.a. a group of sites similar to yours.  Their traffic is down 15% as well.  Still looking pretty good for you.  The danger is thinking just that.

Yes, their traffic is down.  Your traffic is down less.  This is interesting, but you have to look for the real questions.  What are they doing or not doing compared to last year?  What are you doing or not doing compared to them?  This is where the power of the data is; not the data itself but adding that extra dimension.  If you can learn from them as well as yourself you can really help out yourself at a much reduced cost.

I think this brings about the way that the two groups mentioned at the beginning of this post really need to blend.  The first group – Hitwise junkies – are wrong if they are just looking at the data.  There needs to be an additional dimension added to turn the data into information.  The second group – the nay sayers – are also wrong if they see no value in the data.  The right questions have to be asked.  Comparisons can be made, but there needs to be an intent for action behind them.

If this blending can happen and form a third group then real information, not just data, is at your fingertips.  Do you agree?

This has been a Thought From The Cake Scraps.

I may be in the minority or maybe I just don’t have enough money to throw away or maybe I just don’t get it.

Viximo is a purveyor of virtual goods, more commonly called gifts.  While I would not say that they are common on Facebook, Facebook is the largest platform that they exist on (to my knowledge).  To be fair, while I might not think that they are common, Facebook is counting on it for revenue and not in small amounts.  It is estimated at $30 to $40 Million a year.

I don’t know how much Viximo is planning to make but when I first read about them over at TechCrunch I knew they would make money.  To be clear, I still don’t get it.  I know they will make money, and lots of it since their cost is fixed and it does not matter how many of a particular gift they sell, but why do people buy?

The value of something is defined by two things – supply and demand.  There is nothing more to it.  If you had 1 ton of gold and nobody wanted it you may as well have 1 ton of gravel.  In contrast you could have that ton of gravel in a place where no quarry exists and everybody wants it and it could be worth lots.  It is all supply and demand.

How does this relate to virtual goods?  If someone buys a virtual gift who really owns it?  If Facebook goes under – work with me here – where is your virtual gift?  Gone.  Do a google search on what happens to DRM protected music when the issuer goes under.  The sites going under will actually tell you to burn your songs to a CD and rip them back to your hard drive because you can’t transfer them or have the DRM validated after the site shuts down.  Why risk it?

I guess my point is that I understand that it can be fun to give a gift, it doesn’t really make sense.  Just e-mail them some clip art.  The only thing that I think makes sense is the free gifts.  The gifts that are sponsored by a company.  If the company takes its time, makes it clever, and makes it interesting then it can be a great marketing tool and a fantastic way to generate some buzz around the brand.  So it makes sense to a company to pay Facebook to offer their ‘gift’ but can someone explain why I should pay for one?

This has been a Thought From The Cake Scraps.

Despite what you may think about bad publicity it is publicity none the less.  I can’t say that I totally agree that all publicity is good; there can be huge ramifications when something hits the press that is bad for your personal image or brand image.  No question.  That said, some bad publicity can be good because of the old saying: “what doesn’t kill you makes you stronger”.

Apparently the Republican Party of my state did not get that memo and missed that entire chapter on brand management.  Over the past week or two I have received no less than 8 mailings from them – not all of which were unique – and McCain was mentioned once.  Meanwhile all these mailings had told me how Obama is bad because of such and such and “Obama is not who you think he is” and other similar irrelevant remarks.

There was not a single thing that told me McCain’s position on anything.  There were more pictures of Obama – in dark colors and whatnot – then of McCain by about 4 to 1 in Obama’s favor AND I could not read an entire sentence without at least seeing Obama’s name at least once.  Who are these people campaigning for anyway?  At least criticize something that matters instead of some relationship that he may have had or political back scratching that has gone on.  Guess what?  I don’t care and from the questions that people were submitting to the debates – and general reading on the internet – nobody else does either.

Meanwhile, in typical smooth Obama fashion, I got mailings that I could not even tell who they were from on the outside.  It was literally a guide one how to vote.  It told me facts about voting and exactly what I would need to vote and what forms of ID were permissible so make sure I could vote.  The entire outside of the mailing even had my local polling station location printed on the mailing!  The only thing that even told me that it was from Obama is the clever “O” symbol that the campaign uses and a picture of him on the inside.  I can see people keeping that just because it has great information no matter who they are voting for.

Now ask yourself this: which is more powerful for a brand, something that people will read and throw away – even people who support your brand – or something that people are going to keep around no matter if they like your brand or not?  You’d be crazy not to shoot for that latter.  Apparently we now know the mental state of the people running my state’s campaign for McCain.

Know that I do not really favor one candidate over another – and suggest you find the party that is right for you even if it isn’t one of the major ones – but that as far as branding and marketing goes it seems like some of McCain’s supporters missed the boat.

Just like in my previous post I will close with this thought:

Best of luck to all candidates for President and make sure you vote.

This has been a Thought From The Cake Scraps.

If you have never had the chance to check out Seth Godin’s blog, you should.  I really enjoy reading it because of the variety of the topics he covers.  They are usually very interesting and definitive.  He tends not to postulate but rather state things as a fact.  It can be refreshing to read something with such a firm and decisive stance.

All of that said, his most recent post titled How To Lose lacked the quintessential reference that would have given credit where credit is due.  The post is about customers who are looking for something that you don’t have.  Seth has this to say about it:

Instead of feigning ignorance about the whereabouts of your competitors (you really don’t know where other shoe stores are?) and instead of pretending you don’t have a phone book, what would happen if you actually spent that spare minute being incredibly helpful. “Ask for Jimmy! Tell him Sal sent you…”

I totally agree with this.  If you don’t have what they are looking for then tell them where they can find the exact product they are looking for first and then suggest that you also have some fine similar products – if in fact you do.

The reason that I called this post “Calling Out Seth” is because this very principle is illustrated to the extreme in the holiday classic “A Miracle On 34th St”.  In case you don’t remember here is a quick summary from Wikipedia:

Ignoring instructions to steer parents to goods that Macy’s wants to sell, Kris tells one woman shopper to go to another store, Schoenfeld’s, for a fire engine for her son that Macys doesn’t have. She is so impressed, she tells Julian Shellhammer, head of the toy department, that she will become a loyal Macy’s customer. Kris later informs another mother that Macy’s arch-rival, Gimbles, has better skates for her daughter.

The store expands on the marketing concept. Anxious to avoid looking greedy by comparison, Gimbels implements the same referral policy throughout its entire chain, forcing Macy’s and other stores to respond in kind. Eventually, Kris accomplishes the impossible: Mr. Macy shakes hands with Mr. Gimbel.

It is a great concept -if taken to an extreme in the movie – and certainly it can be considered a ‘statesmanly’ thing to do, but not giving credit to such a prominent reference is a small, but important, shortfall of the post.  Moreover, including it would speak so much more directly with the reader because they can instantly relate.

This has been a Thought From The Cake Scraps.