Everyone, anyone and the cluster of someones

It seems perfectly okay to hope that everyone and anyone would agree that compassion and fairness are essential values to espouse.

Just about everyone and anyone might even be a sensible target market for Amazon or Walmart.

For the rest of us, that way of thinking is certain to drive us into a ditch.

As the mass era gives way to a new era where brands must be more relevant and intensely personal–where share of attention is at a premium–there is no everyone anymore. When we’re grateful for anyone who buys our product or service that merely demonstrates desperation. not clarity of strategy and purpose.

It’s always been a good idea to identify and differentiate the key customer segments we intend to focus upon and to understand the uniqueness of our value proposition. Today, it’s not just sensible, it’s essential.

Clearly articulating “the cluster of someones” for whom we will be powerfully relevant and distinctly remarkable is the new table stakes.

Treating different customers differently must become our mantra.

Why go to the store?

There are some who think that most brick & mortar stores are eventually going away and that e-commerce can have a compound annual growth rate of 15% until the end of time. To which I answer, “don’t be silly” and “of course not.”

There are many powerful reasons for physical retail locations to exist. In fact, we are already witnessing the limits of pure-play models as online only players are opening more traditional store-fronts (Warby Parker, Bonobos, Amazon and many others). Well established direct-to-consumer brands like LL Bean are doubling down on a commitment to retail store expansion. And even with the explosion of online shopping, close to 95% of transactions still take place in a traditional store.

When you take out products that can be delivered digitally (books, movies, games and the like) in most cases, for most consumers, there is value in being able to go see, try on, or touch the actual product. Having a live conversation with a well-trained sales associate can be extremely helpful. Physical stores offer a social experience that can’t be readily duplicated via the web or smart phone. And, typically, you can take the product with you, rather than having to wait.

Having said this, digitally enabled business models ARE disrupting every category and chipping away at many historical advantages of bricks & mortar. Websites often have better information than in-store sales people. Assortments can be much wider and prices are often sharper. Next day delivery may be either good enough or simply more convenient than having to drive to a mall and deal with the crowds. And we can be certain that future innovation will further eat away at traditional store advantages.

The fact is, in most instances, the future winners will be retailers that blend digital and physical offerings. They will deeply understand customers wants and desires and build a tightly integrated, highly flexible hybrid model rooted in treating different customers differently. That means a transformation, but not the elimination, of physical stores.

By contrast, the losers will be those that blindly adopt all things omni-channel.

The losers will be those traditional retailers that continue to run a bolted on and siloed e-commerce channel.

The losers will be those who fail to see the interplay between digital and physical stores and close too many doors–and turn the remaining ones into boring museums of best-sellers and “me too” products.

The losers will be those who hold on to one-size-fits-all customer and marketing strategies.

Consumers will continue going to stores for many, many years to come. Whether they will come to your store is a different question.

Some customers

One of the more amusing moments of my time at Sears was when our newish CEO insisted that we stop referring to our customers as “him” and instead say “her.” This was meant to underscore the need to reinvigorate our apparel business and identify women as the most frequent decision-makers for our softline categories.

While there was merit to this strategy–and Sears testosterone-driven, male dominated culture absolutely deserved a swift kick in the, uh, pants–it ignored the complexity of Sears myriad businesses and the attendant diverse consumer segments we needed to attract, grow and retain.

Of course, Sears wasn’t alone. It’s common for business leaders and analysts to make global pronouncements about what “she wants” or how “our customer” is responding. While these statements may have an air of profundity, they’re just glib soundbites.

Today there is no everyone. There is no monolithic him or her or them.

Today the idea of being a little bit of everything to everybody is irrelevant. The era of mass is giving way to the era of us.

Today one-size-fits all strategies are running out of gas. We must treat different customers differently.

Today it’s not about “the customer” or any notion of all customers.

It’s about some customers; the right customers, carefully selected, deeply understood and served in unique and remarkable ways.

Batch, blast and hope

No, batch, blast and hope is not the name of a personal injury law firm. It is, however, a realistic description of all too many marketing campaigns these days.

Despite all the talk about deep customer engagement, increased relevance and enhanced personalization, the sad reality is a huge percentage of direct mail and email marketing is still mostly one-size-fits-all (save for perhaps a few tweaks).

It’s not hard to understand why.

Large scale blasts are easy to execute. They reach a lot of people. They’re cheaper than mass customization or true one-to-one marketing campaigns. And it’s pretty simple to measure incremental ROI and generate comparisons to what we’ve always done.

Of course, many of us know that opt-out rates are climbing while click-through and conversion rates are sinking. But when email is “free” and direct mail is dirt cheap why not keep the execution straightforward and the spigots open?

Well, maybe because what used to count as “working” is just as irrelevant as most of our messages?

Maybe because one-size-fits-all just adds to the noise that consumers are increasingly tuning out?

Maybe because in a slow growth world if you aren’t commanding greater share of attention you have little chance of gaining share of wallet.

Batch, blast and hope may be an amusing name for a fictional law firm, but it sure isn’t a marketing strategy for future success. Mostly it’s a prescription for failure.

No customer wants to be average

It’s only when our experience is terrible that we’d settle for average treatment. But what customer truly wants to be average?

average person

Most of the time, we hope brands know us, show us they know us and show us they value us.

And to do that, companies need to break out of a one-size-fits-all paradigm.

It’s not easy. Which is why so many stores are still filled with average products for average people and our mailboxes–virtual and otherwise–are chock-a-bloc with largely irrelevant pitches and promotions.

It also feels safe, even though it’s anything but. Relying on newspaper circulars and big TV ad campaigns and “Super Saturdays” and the same promotional calendar we ran last year, may bathe us in the warm water of familiarity, but more and more mass marketing strategies are delivering less and less.

Getting closer to the customer–making the choice to treat different customers differently–needs to be more than a slogan. It means busting the silos that get in the way of a unified and seamless experience. It means investing in deeper customer insight and the tools and techniques to deliver progressively more personalized interactions. It means embracing a test and learn mentality.

Mostly, it means radical acceptance of the reality that, for most brands, the only way to grow faster than average is to eschew the average.

 

Unified. Personalized. Amplified.

More and more, the customer is in charge. More and more, your best hope for superior growth–much less staying in business–requires stealing share from the other guys.

Unless you compete primarily on price–and your cost position allows you to win the inevitable race to the bottom–I suggest focusing on three guiding principles if you want to win in an ever noisier, omni-channel world.

Unified.

The lines between shopping (and media) channels grow more blurry by the day. The growth in mobile is making the demarcation between e-commerce and brick & mortar a distinction without a difference. Increasingly, the blended channel is the only channel.

For companies that hope to thrive, this means taking a sledgehammer to silos. Customer data silos. Inventory silos. Organizational silos. This requires eliminating the friction that exists throughout the consumer’s decision and purchasing journey. It necessitates an intense focus on integrating the way the customer interacts with your brand and connecting all the dots on the back-end.

Ultimately, you may tell yourself you have many channels, but from the customer’s perspective there needs to be one brand and a completely unified experience.

Personalized.

One-size-fits-all marketing strategies are becoming less and less effective. An explosion of choices means the battle for share of attention grows ever more intense. For many brands, it’s the end of mass and the beginning of us.

Understanding us–and consistently delivering remarkably relevant experiences and offers to us–puts a premium on deep customer insight. It requires developing ways to address us uniquely and in context. It requires a commitment to experimentation.

The notion of 1to1 marketing has been with us for some time now. At last, the tools to deliver on the promise are becoming readily available at scale. More importantly, the customer expects us to know them, show them we know them and show them we value them as individuals. Ultimately, he who gets closest to the customer wins.

Amplified.

In many industries there is a pervasive sea of sameness. Similar products and services. Nearly indistinguishable (and relentless) sales and promotions. Undifferentiated branding campaigns. Look-alike designs.

It’s always been a solid strategy to have a unique selling proposition. For a long time we’ve known that word-of-mouth is a brand’s most effective advertising. But in today’s world it’s harder and harder to separate the signal from the noise. Without the remarkable–without your purple cow–at best you’ll tread water. At worst, you are out of business.

Without something meaningful and relevant to amplify about your business it’s hard to imagine why anyone will pay attention for very long.  And without a remarkable story to share, it’s hard to imagine how your customers will help amplify your message.

 

This is not for you

Maybe it’s somehow coded in our genes.

Or maybe society conditions us to mindlessly think that bigger is definitely better; that more is always more.

Perhaps our fear of failure drives us to cover every imaginable base?

Yet the brutal reality is that the list of organizations that require scale to succeed AND can actually pull it off is undeniably short. And friends, I’m here to tell you, chances are neither you nor your organization is on that list.

Alas the pull of mass is undeniable. Let’s reach more people. Let’s gain more subscribers. Let’s try to sell more stuff, regardless of customer relevance or potential for profit.

As media choices explode, and the world becomes ever noisier, our default tendencies seem rooted in casting a wider net and shouting louder. That’s just stupid. It’s also expensive.

The best marketing plans are crystal clear about who the product or service is for and what it takes to become highly relevant and remarkable for that precise audience. By extension, the other thing a great marketing plan does is to declare who the brand is NOT for. As most brands are at the end of the life cycle of mass-driven strategies–or never should have been there in the first place–this is a critical distinction.

Confident brands don’t chase their tail or get sucked into a race to the bottom by reflexively pursuing volume for volume’s sake. They spend their time in search of depth and meaningfulness with their core, not trying to rope some generic somebody into engagement with gimmicks or endless discounts.

More and more, there is great power in knowing who your brand is for and who it most clearly is not.

More and more, there is great freedom in declaring simply and confidently: this is not for you.