Pandemonium Chat

A great cause, a huge achievement!

2012-03-01T08:00:00.000+11:00

In a special blog this week I want to congratulate Arax and her team of amateur swimmers who took on the 24 Hour Mega Swim for MS and raised over $10,000 in sponsorships. Impressively, most of this was personal donations from individuals who were inspired by the teams passion and commitment to take on that physical challenge.

This great effort highlights some of the core messages we regularly discuss with our clients:

Do you have a visionary goal that inspires and encourages people to follow?

Do your team on the ground believe in this message?

Does your marketing reach your star customers and offer a compelling story that will change their behaviour?

When there is a strong cause, these things happen instinctively and the results are powerful, both in terms of results and emotion.

It is also a reminder to raise our sights higher, show leadership and head out to achieve something great. It's only then the best people will follow and give you their energy and commitment.

Again, well done to the team. A great effort both in the pool and raising funds. I look forward to cheering you on again next year!

Is detail causing a yawning gap with customers?

2012-02-21T08:00:00.000+11:00

If you're playing the violin in an orchestra, it's fairly important to know all the right notes. But as a concert goer, these are only of interest if the musicians get them wrong. The audience are looking for the big experience and the overall story. The same is true when discussing your business to customers and prospects.

So often when talking to business leaders, I find they quickly drill down into detail. This occurs with organisations of all sizes and all sectors, from restauranteurs to manufacturers to national brands. But as important as detail is to the successful operations of a business, it can become a real distraction to successfully marketing it.

Some of the hardest questions to answer about your business seem to be the most basic: "Why does your business exist and why should people choose it above your competitors?" So often the response is the "chilli prawns" or the most important feature or benefit of the day.

Instead, I encourage you to step to the back of the auditorium, take in the full scope of the orchestra and feel the passion and rhythm of the business. How do you help people, what problems does your business solve, how can you differentiate yourselves in a meaningful way from your competitors?

For operations, the details are the means to an end. Your consumers just want the end, by any means.

Cut your advertising fat and shape your marketing muscle.

2012-02-14T08:00:00.000+11:00

Over the good times it's easy to put on a few pounds, and our businesses are no different. But it can be hard to tell fat from muscle and know what activity is waste and what is vital.

In these times, where every marketing cent must earn its keep, how can you significantly reduce your communications spend while improving performance?

In simple terms, we can view the conversation between your business and your customers as:

Talking. These are your owned messages, everything you say including advertising, online, sponsorships and packaging.

Listening. How much of your talking is heard. Most of us are pretty good at shutting out "interruption" messages and there is a generation coming who have never watched live commercial TV!

Buying. How many of those that listened, were actually compelled to buy?

Referring. How many of those that bought made an effort to endorse your products personally or online? These are the precious "earned" messages that are so important in the decision making process.

Imagine focussing your energy on the top 30% of your market. By understanding these customers better and taking a leadership position on issues they are passionate about, you can get them to listen more, buy more and refer more often.

What beliefs stand in the way of your marketing success?

2012-02-07T14:36:00.000+11:00

One of the interesting aspects of being an external supplier iswatching how companies approach marketing activity. Like many chaotic systems,it sometimes seems there is no pattern at all. But step back to see the fullspectrum of personalities, inter-departmental empires and embedded supplychains and some of those weird decisions start to make sense.

For all the planning, meetings, research, discussions,presentations, submissions and tenders, where do your final decisions comefrom? The most obvious feature of "human adjusted" decision making,is the gulf between strategy and action. Here are some of the beliefs we comeacross that seem to stand in the way of fully achieving marketing objectives.

"Internalresources are free!" This concept has stood the test of time. Thereare two main reasons why a business continues to work on a project long afterit should have been delegated to an expert supplier. The first is that it isfun or interesting. Photo shoots and logo designs tend to have seniormanagement being very hands-on. The alternative is the junior employee who can"handle that." These tasks, such as print production, go fine untilthere is a problem.

It is important tofully judge the true cost of internal resources, not only in terms of time,salary and lost production, but also new equipment, training, stress andre-dos. A good supplier brings ideas and experience to your brief and takesownership of the outcome.

"Everyoneshares my interests!" We have seen huge sponsorships put into horseracing and motor sport that would have very limited cut-through for groceryshopping customers. Marketing budgets seem ripe to become a slush fund forpersonal hobbies.

When consideringprojects, a good guide is to refer back to your customers' decision makingprocess. By analysing customer behaviour, you can better judge the potentialsuccessful of an activity.

"I wouldnever wear that colour!" Another obstacleis confusing the values of staff with the values of the brand. Some managerslive their products but many don't, yet still create ads to appeal to them, nottheir customers.

A strong, welldefined brand will make decision making easier and less subjective. Itwill move discussions away from personalopinions, towards ideas that best represent the interests of customers.

"That workedwell, now what's our next idea?" So often marketingideas are run for a while before being dropped or replaced unnecessarily. Manyin-store campaigns are only run once until the allotted time or budget expires.Then there is an assumption a whole new activity is required for the nextcampaign.

Staff work with acampaign day-in, day-out, but for customers your marketing is probably a smallpart of their life. Applying a continuous improvement philosophy to marketingwill slowly improve outcomes and give you the greatest return on good marketingideas.

"Everyone isdoing it!" This can also be called, "I've just seen agreat idea!" Following the herd is tempting, they must know what they'redoing, right. Groupthink applies not only to branding and ideas, but also tomedia. A lot of activity seems to be produced by people looking over theirshoulder and not focussing on their own goals. This is a shame, as new mediahas incredible potential to deliver customised and powerful solutions.

Get some spacefrom your competitors by having a clear understanding of where your businesssits in your territory. Carefully identify which aspects should be unique andpush them hard, both in terms of creative and media. This will ensure you arenot following others for security, but offering your customers real reasons toconsider your offer.

So, as you develop marketing plans, consider these issues and makesure you are not selectively interpreting data, or being swayed by yourcompetitors. The less chaotic your decision making, the easier it is to see howyour project went and plan for improvement.

7 qualifying factors when choosing customers

2012-02-02T11:52:00.001+11:00

Having highly qualified prospects is one of the keys to sales success and an important factor when determining your star customers.

The FORRCED list of qualifiers is a series of considerations we add to traditional lists such as SCOTSMAN. They are:

Fit – Do they share our cultural views?

Ongoing – Will they have longevity as a client?

Repeatability – Can we use this experience to sell to similar?

Reputation – Will this customer make us look good?

Cost – Will their engagement process cost above average?

Ease – Are they enjoyable to deal with?

Depth – Will they buy more of our products?

If prospects rate well in most of these factors they are more likely to be beneficial to your business. It is also interesting to rate current customers on these issues. Doing so may prompt strategies that will improve your important customer relationships.

5 Key Needs for a Successful Team

2012-01-17T10:49:00.001+11:00

The Hierarchy of Team Needs

Maslow's hierarchy of needs is an interesting model to investigate our behaviours and motivations. In essence, he believes each layer of need must be satisfied before we can focus on the layer above. First we must address our biological needs of food and air, then our safety, followed by family and friendship, then self-esteem. Only when all these issues are addresses can we focus on creativity and problem solving. Critics have argued over the order and categorisation of the needs but it stands to reason that it's hard to focus on the future when your house is on fire.

I believe the same hierarchy exists with project teams. Assuming a team has the objectives, processes and tools they require, there are still needs that must be resolved before they can successfully focus on change.

Level One - The parts and the whole.

The study of personality types has gotten more scientific and potentially more useful when employing people or forming teams. However, I believe the vital ingredient is respect for yourself and others. A team can work with personality clashes and fiery discussions, and a little chaos may even be positive as rivals challenge each other to improve. A team will never progress past this level if the question keeps being asked, "What is this person doing here? How did they even get this role?"

Level Two - Security

This refers to the individual members, the project and the company as a whole. Ask yourself, "Is there a perception that their activity is a waste of time or won't be taken seriously by management? Do the final decision makers do what they want regardless of the recommendations? Are political considerations more important than genuine progress?" To properly visit the issues and move forward, a team needs to know they stand on solid ground.

Level Three - Trust and access to the truth

For me the truth goes beyond the facts. Facts are a small part of a story that can often hide the greater truth. The real truth sits with the ambitions of the owners and how they relate to the needs of consumers. To discover this, a team must be trusted to challenge and explore the brief. This is how to understand the future; measurable facts are interesting but belong to the past. If the team did not know why the project really existed, they will not know why their outcomes worked or didn't work.

Level Four - The higher awareness

When a team functions at this level, there will sometimes be a breakthrough in thinking that changes the game. This may make all the previous work redundant or shake up preconceptions of what the business is about. It is important these insights and innovations are recognised, not punished. Even if there is no "ah ha" moment, the successful team will lay out a plan that must overcome a lot of inertia. The question is, "Does the team have the authority to pursue success, not just answer the brief?"

Level Five - Bringing others on-board

Even if a team has worked together well, felt secure and respected, been trusted to explore fundamental truths and has made breakthroughs, it must have the will to see it through. Every-one likes strategy and putting together a plan, but implementing change and breaking down barriers is often hard work. What is your plan to successfully communicate your outcomes and inspire others to follow?

I'm interested in your experiences in the hierarchy of needs as it applies to project teams. Have you experienced teams who have been stuck at certain levels? Do you have a different opinion as to the nature or order of these needs?

New Year Resolutions

2011-11-28T13:03:00.000+11:00

We may as well face it, 2011 is as good as over. If you are not implementing an existing plan now, it's probably too late to start.

This means there is no excuse not to cast the eye further afield and start setting some goals for the the end of 2012. If you are glad to be seeing the back of this year, what should you be celebrating this time next year?

For many of our clients, across a spectrum of sectors, this has been a year of restructuring and reassessment. Products, business models and marketing plans have been tweaked and in some cases re-invented. There have been a variety of reasons for this including the tail of the GFC, threats of a new GFC, the strong Aussie dollar and changes in technology, especially the mobile online space. Some may see this as a step back, or sideways, but overall I believe many businesses are in a better position, or at least know what a better position looks like, than twelve months ago. And hopefully, this means we can get a clean start to Q3.

So let's start looking at our goals for 2012 and listing them down. As a starting point we suggest developing at least three goals for each of these categories:

• Sales. What can you do that will strengthen your relationships with customers, both business and consumer?

• Marketing. What can you do that will make your consumers aware of your products or services and feel passionately about them?

• Products. What can you do to your product portfolio that will both fulfill the purpose of your business and give you the maximum return?

• People. How can you ensure your staff, suppliers, partners and customers are inspired and empowered to achieve the ambitions of your business.

The next step is to start rating and prioritising these goals:

• If successfully implemented, what outcomes would they achieve? Are these outcomes financial or structural?

• What would be required to achieve them? What business strengths will you need? Are those strengths extant or will there need to be an investment?

• What will you need to do more of? Who is going to do that and with what?

• What will you need to do differently? What barriers exist and will there be unintended consequences?

By comparing the outcomes to the difficulties, you will probably identify a few goals that stand out. A good innovation is one that will give you a financial return. A great innovation will give your business a real competitive advantage.

And who knows, there's still a few weeks left in 2011, maybe you can squeeze in one more project and have something to celebrate!

Overcoming Implementation Inertia.

2011-11-14T09:54:00.000+11:00

One of the biggest hurdles managers face is the ability to work on their business, not in their business. Once a strategy has been developed, implementation is often the greater challenge. In fact, up to 80% of plans are never acted upon as day-to-day spot fires are always a priority.

From our perspective as outsiders, it seems that so much energy and political capital is expended looking at the issues and devising schemes, there is little left for actually doing them. It's a bit like getting the jogging gear on, then sitting back down to watch TV!

We have seen this with a small mum-and-dad manufacturer who decided that the growth they wanted would be too much work. And also in a global brand that didn't have the ability to raise certain topics with their head office. In both these cases the problems seemed too big to tackle.

So, how do you overcome this inertia?
The first step is mindset; the ability to understand that long term plans are just as vital as day-to-day activity.
Make it a priority. Every WIP or group meeting should have time allocated to go over the vision and plan a few steps. Regular action will demonstrate that the plan is important, help create a rhythm and then establish it as a habit.
Hold yourself and your team accountable. There needs to be consequences for not acting and roadblocks must be solved, not used as excuses. An external coach can be incredibly valuable as they offer the discipline you require as well as assisting to work-shop solutions.
Break down the plan into digestible parts. These small goals will eventually conquer larger objectives. As my wife says, “Just 15 minutes of housework a day makes a huge difference!”
A physiotherapist tells us of his success with six weekly business coaching. He’s been amazed at his ability to move the business forward as he begins to understand where to find the most growth. He loves his clinical work and enjoys the interaction and the challenges, but was never taught how to run a successful business. In tough ecomonic times, it becomes critical to have a plan with actions in place to achieve favourable outcomes.

The ability to drive change is a different skill-set to other management tasks. That's why we need personal trainers to drag us away from the TV and work up a sweat. Even Tiger Woods has a coach! If your marketing or business plan is gathering dust, it may be time to step-up and take that leadership role. Focus on the vision, allocate responsibility, get a coach who can keep the team accountable and help problem solve. Make today the day to start ticking off some actions.

What's my motivation?

2011-11-02T15:52:00.000+11:00

There's an old joke that an out of work actor is getting by waiting tables. Confused on his first day he asks his boss, 'So I'm a waiter, yeah. But what's my motivation?"

Actor's call it motivation, Mike Boyle would call it personal profit and Pandemonium Planning calls it the Fundamental Truth. What's the real reason people act the way they do? What are they looking to get out of a transaction.

Is addressing a Fundamental Truth more powerful than talking feature/benefit. Try this simple test.

Next time you go to the supermarket, pick up a different brand of coffee or soft drink than you normally do. Put it on the top of the trolley for everyone to see. As you walk around, see if you feel different. Is it exciting or embarrassing? How has this new brand challenged your Fundamental Truth?

Now next time you make a decision, consider – "what's my motivation?"

Is your brand ready for the big time?

2011-11-02T15:15:00.000+11:00

For a company that has been successful in one market, it can be frustrating that this success does not immediately translate to a new market. On paper there should be strong demand, but for some reason that does not turn into sales.

It is our experience that many privately owned companies settle at a natural level of growth and profitability. This tends to be due to management reliance on organic growth and friendly relationships while establishing the business model. There is nothing wrong with this, however as there has been no urgent requirement for marketing or brand building, these aspects tend to be neglected.

Although the business may be successful, it will have reached a plateau, as the brand and values merely reflect those of the management. To take full advantage of the world market, the brand must become independent and relevant to its customers. It's a bit like a child who is ready to leave the nest and stand on it's own two feet.

And like that child, an independent brand may need to look and behave in ways the parent may not approve, as it tries to fit in and be popular. There will be small steps and trip-ups, as managing a brand takes a different level of commitment and energy to that which has made the current business successful.

The personality of the brand must become separate and distinct and it’s reputation must exist independently from that of management. This is the essence of the “brand”. The company must now exist to benefit the needs of the customer and not to simply fulfil the expertise of the owners.

Does the personality of Coke reflect that of the board. Are the managers of Nike all athletes? It doesn't matter. These brands are not closed and impersonal, they are open and invite others to join them and see themselves as part of a movement. The great benefit of this investment in brand, is the ability to achieve growth and profitability beyond the “natural” level of the initial business. It is now ready for the big time.

Andrew Wylie is the director of Pandemonium, strategic thinkers in marketing, sales and creative

How unhappy should you make your customers?

2011-11-02T15:14:00.000+11:00

As unhappy as possible of course; absolutely miserable. And scared too. In fact, not buying your products or using your services should terrify them!

Building customer dissatisfaction is the key to driving change in their behavior. The more they are unhappy with their current position, the more likely they will be to listen to your story and start considering your plan to make their lives easier.

But what are customers unhappy about? You may think it would be price, service, lack of features or any of the important things you make or do. But more often or not the answer will surprise you.

A client in the manufacturing industry recently took the challenge and asked his top customers what the issues were that troubled them. He was amazed that not once was price mentioned. Their problems were about downtime, consistency, having to supervise and other things that went to the heart of their profitability. What's more, on a personal level, they were annoyed at missing time with their kids because they have to fix up other peoples mistakes.

So by careful listening, he now has the perfect sales pitch. He can demonstrate how their solution will overcome the customer's problems and the dire consequences of going with a cheaper competitor. And once you have won the customer the question becomes, how happy should you make them?

Andrew Wylie is the director of Pandemonium, strategic thinkers in marketing, sales and creative

Picking your odds on product favorites

2011-11-02T15:09:00.001+11:00

When looking at their product portfolio, many managers start to feel a bit average. Is above average volume more important than below average profit? It should be as easy as betting on a horse race where you have trained every starter! However, there are a lot of underlying issues that can muddy the track.

Even in a service based industry it costs a lot to develop and market a product and keep staff on hand who know how to deliver it. If it has to be manufactured or imported, the cost is even higher. So when is a product performing below average? At what point should you pull the plug? And which products have the best potential for success if they were treated better?

When reviewing products, each should be treated on its merits with as little emotion clouding the issue as possible. Otherwise you will keep building Hummers until you go bankrupt. But poor sales performance may not be entirely the fault of the product. There are many reasons why good products underperform. Brand, time, price and manner of distribution are amongst a number of issues that can dampen demand. Also, many businesses have products that are just for show. Paint manufacturers always head their colour-wall with bold hues that attract attention but rarely sell. These losses should be seen as an investment in marketing.

As a rule of thumb, your star products are those that suit your business strengths while rating highly in market attractiveness. That is, high demand and high barrier to entry as defined by factors specific to your industry. Once you have separated the nags from the thoroughbreds, you are much closer to picking the winner.

Andrew Wylie is the director of Pandemonium, strategic thinkers in marketing, sales and creative.

The low value of price

2011-11-02T15:07:00.000+11:00

It never hurts to have a price advantage, but relying on being the cheapest can be a risky strategy.

Take an importer I know who has let price drive their entire sales plan. It has been a real shock for them to discover that brand values and consumer loyalty are vital for long term key account relationships and not just empty buzz words. When volumes started dropping, and sales minimums were not being met, questions started to be asked. What was going wrong?

The word from the buyer came loud and clear; there needed to be an investment in marketing. And the truth is, if you don't believe in your brand, why should your key accounts or your consumers. An in-store visit witnessed customer after customer ignoring their product and choosing a well known brand name that was up to three times more expensive. In some cases the brand name is inferior both in performance and features.

Time to act. The first step is to realise that, as ruthless as they are, most stores want to support their stocked products, especially if they are exclusive. But it is a waste for them to give catalogue or advertising support to a product that is likely to disappear overnight. So for them to commit to you, you need to commit to your brand.

Armed with a draft marketing plan, our importer could re-negotiate the volumes and find the budget to make some quick wins. We helped them identify their point of difference and what was special about their product. Then they started to reach out to their consumers. There is a lot of work ahead but at least they are not going back with even cheaper prices.

Andrew Wylie is the director of Pandemonium, strategic thinkers in marketing, sales and creative