Amplify · Being Remarkable · Story Telling

Your customers aren’t buying your products

I don’t mean your customers are no longer buying your products. Because if they aren’t buying from you anymore they are no longer customers. And that’s a different blog post.

I mean the main reason your customers bought from you in the first place–and the reason they continue to buy from you–isn’t because you have the best products. In fact, the retail industry’s relentless and nearly single-minded focus on product is the main reason so many retailers are in trouble. So-called “merchant prince” Mickey Drexler of J. Crew finally admitted this.

But it’s always been true. People buy the story before they buy the product. And they continue to carry our handbag, wear the hat with the swoosh, come to our restaurant or wait in line for the next version of our stuff because of how they feel when they experience our product or service. And that goes way beyond the objective, rational superiority of our features and benefits.

While I am hardly the first person to make this point, every time I make it I invariably get challenged on my lack of merchandising skill (guilty) or how I just can’t see how critical good product is. If these people only drink tap water I tend to listen a bit more carefully. But that doesn’t make them right.

Here’s the thing. I’ve never said product is unimportant. But when we confuse necessary with sufficient, we are on our way to making some big mistakes.

Brand success is most often determined at the intersection of desire and scarcity. You may sell what I want (or need), but if it isn’t special I’m not buying it (or I’m only buying it from you because you have the lowest price).

For most customers, in most categories, good product is far from scarce. A truly remarkable experience, a feeling that move us and that we are compelled to tell others about? Well that is very much in short supply.

Perhaps you DO need to improve your products. But if I were a betting person, I’d wager you also need to tell a better story.

It matters which you choose to prioritize.

Amplify · Being Remarkable · Customer Growth Strategy · Personalization

Are you done cutting those cookies?

In today’s retail world there are a few truths I hold to be self-evident:

  • Folks don’t need or want much more stuff, so we had better not count on overall spending growing much, if at all.
  • With just about anything available anytime, anywhere, anyway, competing on scarcity of information and access is no longer a viable strategy for most brands.
  • Engaging in a price war is not likely to end well–unless you are Amazon.
  • Consumers are overwhelmed by information and the distracted customer has become the norm. The new battleground is for share of attention.
  • Mass marketing is becoming less effective by the day.
  • No customer wants to be average.

And yet so much of the product we see, the stores we visit, the websites we surf and the marketing we encounter, looks awfully familiar.

Our Boards encourage us to adopt best practices, and by the time we do, the industry leaders are on to something entirely different.

We pick the tried and true, because it seems safe, when it is precisely the opposite.

We choose average because it’s easy to manage and seems to scale. Until it doesn’t and we are left to wonder what the hell happened.

For most of us, the only way to win going forward is to eschew boring and average. We must know our customers better than the competition and use that information to treat different customers differently. We must commit to being intensely relevant and utterly remarkable. We must amplify our signal amidst the noise.

Let somebody else can make the cookies.

 

 

 

 

 

Amplify · Being Remarkable · Customer-centric · Personalization

Just about everything is noise

The overwhelming majority of the ads that are run are not the least bit relevant to any one of us. In fact, we’ve grown accustomed to skipping through them when we can–or simply tuning them out when we can’t.

Even a well-curated social media stream contains an awful lot of information that we couldn’t care less about.

When we drive down the street–or walk through the mall–there are only a handful of stores we pass that we will ever walk into, much less buy anything from.

And within the stores we do visit–or the websites we traffic–it’s rare indeed that more than a tiny percentage of the product we see actually grabs our attention, commands true interest and captures any of our spending.

The fact is just about everything we encounter is noise. Advertising based upon interruption rather than permission. Marketing programs that are mostly one-size-fits-all, rather than rooted in treating different customers differently. Product assortments that suffer from a sea of sameness. An avalanche of data and a tsunami of stuff.

And the noise is growing. Consumer distraction and disinterest has become the norm.

When we accept that just about everything is noise, when we understand that, more and more, the power has shifted to the consumer, when we embrace the notion that attention is fast becoming the most precious asset for any brand, then we realize our challenge is not to merely copy best practices or do what we’ve always done, but just a little bit faster, cheaper or louder.

The challenge is to deeply understand our customers at a granular level,  to create and deliver something intensely relevant and remarkable and then to amplify the hell out of that sucker.

The challenge is to become the signal amidst the noise.

noise

 

 

 

 

Amplify · Being Remarkable · Customer Growth Strategy · Holiday Sales · Luxury · Omni-channel · Retail

My top ten posts of 2015

As has become a tradition, I present my most popular blog posts from this year.

  1.  Bleak Friday
  2.  Learning to surf
  3.  I see dead marketers
  4.  Omni-channel myths, distortions and, yeah, that’s just silly
  5.  What if omni-channel is too expensive?
  6.  An end to omni-channel?
  7.  It’s later than you think
  8.  Luxury retail’s big stall
  9.  Sears: The world’s slowest liquidation sale (redux)
  10.  The fault in our stores

And here are a few more that didn’t quite make the cut, but that I’m rather proud of….

  1. Retail’s new front door
  2. No new stores ever!
  3. A dim signal amidst the noise
  4. Everywhere and nowhere
  5. I fought the math and the math won

As I wrap up my sixth year writing this blog I am so grateful for your attention, support and feedback.

Best wishes for a safe, happy and prosperous New Year!

Amplify · Being Remarkable · Customer Growth Strategy

When the music stops

Somehow we seem to forget that in business the good times don’t last forever.

When the economy is strong, most decently run mature businesses thrive. For an earlier stage company, once it starts to gain traction, new customers come relatively easily and competitive forces are minimal.

But there will come a time when the music stops. A time when a booming economy can no longer mask our weaknesses, when emerging competition becomes a serious issue, when what worked so well for so long suddenly doesn’t.

Eventually, we can’t raise prices so easily. Inevitably we have challenges driving traffic or closing sales. The cost of acquiring a new customer (or maintaining frequency with an existing one) begins to rise. The once strong growth rates from new stores or our e-commerce business start to moderate.

The only surprising thing in all of this is that we seem surprised when it happens.

When things are good is precisely the time to invest in the future–a future that is very likely to include the need to drive virtually all growth from stealing market share, not merely riding a rising tide or passing on inflationary price increases.

For many businesses that time is right now or just around the corner. In that world good enough isn’t. Good enough doesn’t get you noticed. Good enough doesn’t cause customers to switch. Good enough rarely leads to loyalty or the ability to charge a premium price.

Stealing market share requires being more intensely relevant, more remarkable and, perhaps, more idiosyncratic than the competition. Unfortunately most organizations don’t worry about this stuff until they have to. And by then it’s usually too late.

Fix the roof when the sun is shining. Or something like that.

Amplify · Customer Growth Strategy · Customer-centric · Frictionless commerce · Omni-channel · Retail

An end to omni-channel?

I have a little confession to make.

Despite my including “omni-channel” liberally in speeches I give, in the hashtags of my tweets and in my often shameless self-promotion of my alleged retail strategy and marketing expertise, I kind of hate the term. Here’s why.

First, it’s hardly a new concept or a revelatory insight. I was leading the “anytime, anywhere, anyway” initiative at Sears in 2001 (not a typo). Companies like Nordstrom, Williams-Sonoma, REI and Neiman Marcus, among others, have been working in earnest on the essence of cross-channel integration and customer-centricity for more than a decade. If a brand has started throwing out the term in their annual priority statements and investor presentations more recently–or injecting it into the titles of staff members–it only means that company was late to the realization that it mattered, not that they are some kind of innovator or industry savant.

Second, it’s vague. As it’s applied relentlessly in retail do we ever actually mean “all”? Home shopping? Cruise ships? Military bases? University book stores? Of course not. Good strategy is rooted in choice, not trying to do it all. It’s not enough to say we’ve embraced all things omni-channel. In fact that’s quite sloppy and unhelpful. We need to lay out the customer relationships that are essential to our brand, the channels that matter for them and what we are doing specifically to eliminate the friction–and amplify the intensely relevant and remarkable–in their experience.

Third, it’s over-used. At conferences, in white papers and among industry observers it’s a virtual hype-fest. It often seems as if certain brands think that if they say “omni-channel” enough their needed (or hoped for) capabilities will magically appear. In my experience if a company is throwing around jargon a lot there is a pretty good chance it’s to obfuscate their lack of strategic clarity and/or executional progress.

Lastly, and most importantly, by itself becoming “omni-channel” is simply not good enough. Regardless of exactly what a brand means when they extol their omni-channel strategy, capabilities like cross-channel inventory availability, order-online-pick-up-in-store, and a host of other functionality that add up to the much vaunted “seamlessly integrated” experience, are rapidly becoming table-stakes, not differentiators.

Certainly retailers must root out the friction in their customer-facing processes and strive for a one brand, many channels experience. But they also need to accept that the power has shifted to the consumer and it’s become much harder to get a brand’s signal to command attention amidst all the noise. The reality is that in a slow growth world, more and more, sales increases must come from stealing share from the competition and mass, one-size-fits-all strategies are rapidly dying. Without making customer insight a core capability–and adopting a treat different customers differently commitment–market share losses and shrinking margins are almost certain.

Ultimately, I don’t care if you use the term “omni-channel” so long as you are clear about exactly what you are doing, how it benefits your efforts to retain, grow and acquire your core customers and why, when successful, it will be truly remarkable. But I’d also like to hear an acknowledgement that those efforts are simply necessary, not sufficient, to win in an ever noisier, customer empowered, slow growth world.

Amplify · Being Remarkable · Brand Marketing · Customer Experiece · Frictionless commerce

The antidote to a tsunami of stuff

We live in a world of expanding choice. A world where–if we are fortunate enough to have the money–almost anything can be purchased from almost anywhere in the world almost anytime we want. With the smart phone as a growing (and often omnipresent) access point, the web provides the portal to nearly infinite information and virtually unlimited products and services.

At one level this is a consumer bonanza. Limited data can now rarely be seen as a barrier to purchase. Prices are down, selection is up. A click replaces waiting until the store opens. Products come to us, rather than us going to them. Consumers are empowered in ways never thought imaginable.

Yet, more and more, we are faced with a tsunami of stuff. A bewildering array of seemingly undifferentiated products. Look-alike websites and marketing schemes. In-boxes chock-a-block with one-size-fits-all promotions. Spam, spam, spam, spam.

This growing mass of information and options–often combined with unrelenting interruption marketing–can be overwhelming. When the distracted consumer is the norm and it becomes increasingly harder to separate the signal from the noise, more is often less.

As our customers’ world grows ever noisier our reflexive response is often to dial things up to 11. Resist that urge.

The new battle ground is for share of attention. And we earn and command attention not through shouting louder than everyone else, throwing more at the wall to see what sticks or defaulting to using price as the only arrow in our quiver.

The antidote to a tsunami of stuff is to know more about our customers than the competition and to turn that insight into intensely relevant products and experiences.

The antidote to a tsunami of stuff is to eschew mass marketing techniques and to move aggressively toward more personalization and customization.

The antidote to a tsunami of stuff is to embrace editing and curation as a fundamental competency.

The antidote to a tsunami of stuff is to ruthlessly root out the friction in our customer experience and to distort those things we wish to amplify to the truly remarkable.

11

HT to Barry Schwartz and his TED talk on the The Paradox of Choice  

Amplify · Being Remarkable · Customer Growth Strategy

In search of amplification

When you live in a cacophonous world, if you want to be something other than a dim signal amidst the noise, you need amplification.

When consumers are inundated by a tsunami of marketing messages, much of which are virtually identical, you need amplification.

When your default strategy is to lower your price, and you find yourself in a losing race to the bottom, you need amplification.

When you find yourself regressing toward the mean in almost everything you do, because it seems safer, you need amplification.

The battle for share of attention isn’t won by merely shouting louder, beating the consumer into submission or constantly bribing customers to buy from you.

It’s won by being intensely relevant and remarkable. It’s won by taking one or more aspects of what’s commonly done and distorting it to new heights. It’s won by cultivating an obsessive core of customers. It’s won by creating a story that begs to be told, again and again.

If your business plan doesn’t contain clear points of meaningful value amplification, it’s time for a re-think.

If your best customers aren’t willing to amplify your message to your most valuable prospects, something is amiss.

Creating and leveraging points of amplification isn’t easy. But being irrelevant is a whole lot tougher.

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