You picked a really bad time to be boring

There was a time when you could get away with average products for average people.

There was a time when rapid growth could smooth over patches of mediocrity.

There was a time when being just a little bit interesting could hold our attention.

There was a time when relationships were built over time, face-to-face.

Now, consumers live in an anything, anytime, anyway world and there’s simply no reason to settle.

Now, largely stagnant markets require us to steal share if we wish to grow–and good enough isn’t.

Now, we are overwhelmed with choices and, more and more, the battle for share of attention is won by the weird, the purple cow, the remarkable.

Now, posts that include “more for Sagittarius”–or are merely a running commentary on your activities–get eliminated from our feed in one easy click. And winning back a lost relationship is harder than ever.

There’s a reason people don’t come to your store, leave your website within seconds, hit “unsubscribe”  or unfollow you.

Now is hardly the time to be dull, uninteresting and outright boring if you hope to make any kind of impact. If people see what you put out in the world and their first reaction is “who cares?” you’re either focused on the wrong folks or it’s time to rethink what you’re doing.

The fact is the tried and true no longer is. What once seemed safe is now often the most risky.

Yes, it’s a really bad time to be boring. But the good news is we can change.

What better time than now?


Confusing necessary with sufficient

We’re told we have to embrace all things omni-channel, yet Macy’s and Nordstrom, two of the acknowledged leaders in this arena, have yet to move the dial much on market share and profitability.

We’re told we have to digitally enable most dimensions of our business, yet Sears, which has been a pioneer in many aspects of e-commerce and digital innovation for more than a decade, looks to be in the midst of the world’s slowest liquidation sale.

The excellent and provocative work by L2 on companies “digital IQ” frequently ranks brands on the top end of the scale that are laggards on many key performance metrics.

Some will tell you that this proves that embracing a digital first strategy is over-rated or that investing heavily in omni-channel is a mistake.  They are mostly wrong.

The error comes in confusing necessary with sufficient.

There are few brands, especially in retail, that can ignore an aggressive move into frictionless commerce. The customer experience must become more unified.

More and more, mass marketing strategies are dying and it’s becoming extraordinarily difficult to break through the clutter. Letting go of one-size-fits-all strategies in favor of creating more personalized programs is becoming increasingly important.

And we can’t keep interrupting customers with largely irrelevant messages at the wrong time and out of context. Deeper customer insight, coupled with an understanding that smartphones and tablets allow the customer to be untethered and addressable at the moment of need, puts a premium on marketing that is localized.

We are entering an era where a high level of competence in the above three principles is necessary just to stay in the game, to be even marginally relevant, to have a crack at the customer’s consideration.

You can be leading edge on all of these dimensions and it’s still not enough.

What we offer the customer needs to be amplified–that is, it must be truly unique, intensely relevant and remarkable in the purest sense of the word. This is where Sears falls incredibly short and where Macy’s struggles to break out from the sea of sameness that characterizes much of the department store world.

Unfortunately too many companies vaguely embrace all things digital and start gulping down the omni-channel Kool-Aid while ignoring this last critical piece.

At the end of the day, if the dust ever settles, they’ll have spent a ton of time and money on merely keeping pace and not enough on the things that ultimately matter.


Never teach a pig to sing

“Never teach a pig to sing.  It wastes your time and it annoys the pig.”

– Robert Heinlein

Innovation is hard-work.  So is becoming truly customer-centric.

Those who want to desperately maintain the status quo rarely appreciate the champion of change.   Those who wish to stay slavishly product or channel-centric often dread hearing someone prattle on about “one face to the customer” or “a seamless cross-channel experience.”

The reality is that some people cannot be swayed by mounds of compelling analysis, a slick PowerPoint presentation or your convincing personal selling skills.  Some organizations do not have sufficient capacity to change. And all the wishing and lobbying and task forces in the world will not make it so.

Sometimes when you advocate a remarkable customer-centric idea, the initial resistance is a sign that you have folks attention and the foundation is being poured for something exciting and new.  Other times the path to anger and resentment is just being cleared.

So let’s be brutally honest:  at your job are you teaching pigs to sing or are you breeding purple cows?

And if it’s the former, maybe it’s time to tune up that resume.


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Surgical Shopping and the Hangover Market

Last holiday season I coined the term “surgical shopping” to describe the highly precise way many consumers were purchasing.  While the panic of late 2008 and early 2009 subsided, consumers were only gradually opening their wallets, focusing primarily on needs vs. wants and often trading down to brands that gave very clear bang for the buck.  By the time the numbers were in for the 4th quarter, it was clear that business was better, but not particularly good.

As an economic recovery struggles to gain traction, this “surgical shopping” behavior remains rampant, and in my opinion is not likely to change any time soon.

This behavior is evident on the lower end of the market, as private labels (or more accurately “private brands”) gain market share.  And it’s apparent on the higher end, as accessible luxury brands such as Coach, Nordstrom and J. Crew beat their more exclusive and expensive rivals.  Even at the absolute luxury tier, brands like Louis Vuitton, Gucci and Hermes outpace the competition as they emphasize their heritage of investment quality craftsmanship to win over flash in the pan, mostly pure image brands.

This is now the Hangover Market.  Waking from the intoxication of too much marketing and societal hooch, consumers are now shaking off the cobwebs and dry mouth of excessive, superficial spending.   And while it’s always difficult to predict future consumer behavior, many consumers are not going back to their old reckless spending habits.  For some, this will be out of economic necessity.  For others, this will be values based, as they become more discerning about the quantity of what they buy and the price they pay for certain items.

So what does this mean for business leaders and brand stewards?

Tangible, obvious value wins.

Craftsmanship wins.

Authentic wins.

Experience wins.

Connectedness wins.

Being remarkable wins.

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Expensive & Lousy Meets Free & Excellent

I just got back from Chicago where I spoke at the annual Shopper Insights in Action conference.  It was a great trip, but one of the things I will remember the most is a very disappointing experience I had at the host hotel.

At this hotel (which shall go nameless, but it rhymes with lariat), I was charged $14.95 for daily “high-speed” internet access.  Putting aside whether hotels should charge for web access–they shouldn’t–my primary complaint was that the service was far from high-speed.  In fact, it barely worked at all.

After a full day of trying to get my email account to even load properly, I finally relented and called the toll-free help line.   After half an hour on the phone with the support person listening to them spew indecipherable technical jargon and trying various things to increase my connection speed–most of which involved limiting service for other folks in the hotel–we concluded that this was a long-term problem at this location, likely caused by their not having upgraded their infra-structure.

Expensive & Lousy.

Ironically, the next day as part of my conference presentation, I shared the Zappos success story to reinforce the importance of using remarkable customer experiences to win in an intensely competitive market.  As you may know, part of Zappos growing reputation for legendary customer service is that delivery of their product is free–both for the original shipment and for any returns.  Moreover, Zappos will often upgrade the customer to overnight shipping at no charge.

Free & Excellent.

Of course, we cannot just randomly give away high value products and services.  But as brand stewards, minimally, we don’t have to call attention to the things that represent an obviously bad value, nor do we have to reinforce the notion that we are using every opportunity to nickel and dime our clients (I’m looking at you credit card and airline industries!).

Remarkable is a choice, and we get to decide which elements of our business model and brand promise create the wow, the buzz, the purple cow.  It’s not always easy or practical to deliver the Free & Excellent.  But you can certainly stop the Expensive & Lousy.

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What Color is Your Growth Strategy? The Curse of the Red Herring.

Blue Ocean.

Black Swan.

Purple Cow.

In the last several years various authors and pundits have literally given us colorful ways to think about how to grow our businesses.   Good stuff.

But what about the Red Herring?

As you probably know, a “red herring” is any diversion that is intended to take attention away from the main issue.

How many folks in your organization employ the Red Herring Strategy to dismiss a potentially insightful line of inquiry or to shoot down a bold new idea?  How many times does your team lose traction and waste energy distracted by a long discussion of things that you simply cannot change.

Sometimes you need to let go of the Red Herring before you can swim in the Blue Ocean or find your Purple Cow.
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Defying the Sea of Sameness

Any business school course on strategy will devote significant time to the importance of competitive differentiation.  We attend marketing conferences where speakers pontificate on the need to have a unique value proposition.  Excellent books like Seth Godin’s Purple Cow preach the benefits of being remarkable to separate yourself from the herd.

Yet any visit to the mall or surfing of the internet quickly reveals an often numbing “sea of sameness.”

This has long been true for many retailers.  But I believe the recession has made it worse.  As retailers have slashed inventory, desperate to demonstrate inventory productivity progress to investors, merchandise assortments have become less interesting, less differentiated, decidedly less remarkable.

By now it should be apparent that a full recovery is going to be slow in coming.  That means revenue growth must come primarily from stealing market share.

Now is the time to go on the offensive.  Now is the time to commit to deeply understanding your target customers’ needs, compromises and preferences and to find ways to innovate, to be truly remarkable.

For some companies, this means embracing the trusted agent role, going out into the market and curating a unique offering for a discerning clientele.  This is what the best specialty boutiques do.

For others, it means finding more exclusive products in the market, leveraging existing vendor relationships to construct a unique offering and/or developing their own compelling private brands.  This is happening across the price spectrum.  Kohl’s recently reported that 47% of revenues now come from exclusive products.  Saks Fifth Avenue is aggressively working to significantly increase its percentage of private label and national brand exclusives to differentiate itself in a challenging luxury market.

I think two basic principles are at work here.  First, a willingness to move away from a product-centric, gross margin rate maximization mind-set to embrace customer-centricity and all that entails.  Second, an acceptance that it is actually more risky to play it safe and swim in the sea of sameness.

Someone in your industry will decide to break away from the herd and gobble up share while the competition is on their heels.  What’s your choice?
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