There has recently been a great deal of discussion and controversy over the boisterous demonstrations on the campus of a Canadian University. The right wing commentator Ann Coulter had been scheduled to speak at the University which provoked this demonstration. It seems the somewhat rowdy "free speech" of the crowd actually intimidated Ms Coulter to the point she cancelled her appearance.
Some in the media began suggesting this was an embarrassment to Canada and represented an attempt by this crowd to limit "free speech". This is such a curiosity for me...free speech, limited free speech. A woman that promotes an extreme right wing point of view is intimidated by those that object to people presenting extreme right wing points of view. Interesting.
The world is currently witnessing the largest social psychology experiment to ever occur. The USA is giving public voice to the provocative extremists like Ann Coulter, Glen Beck, Rush Limbaugh, and Sarah Palin and these people are having a profound affect on the masses. These and others are suggesting Obama's health care Bill will create "death panels" to decide whether grandma should live or die, and large groups of people will lose their Medicare benefits among other bogus claims.
Prior to President Obama's health care Bill the majority of Americans felt their system needed some changes. Health care in America is the most expensive system in the world and growing in costs every year. They suffer from the highest obesity rates of any country,a higher child mortality rate than some third world countries and tens of millions without insurance. Current polls are saying that the overwhelming majority object to the President's health care Bill!
So what happened in the last year? This is where the social psychology study comes in. The reticular activator, or ACC (Anterior Cingulate Cortex...also known as the "oh shit" center) of our brain is what causes us to pay attention when we are otherwise on cruise control going about things in our life. It responds best to things that are familiar, unusual or problematic. If you think about walking along talking to a friend or being in a room full of people and someone calls out your name. The reticular activator is at work and brings you to attention to see who it is. That's because your name is the most familiar thing to you. If you hear a sudden foreign noise in the middle of the night, even if you are asleep you will be brought to attention.
When our brain doesn't fully understand something it responds to fear. Our fear (something is problematic) of the unknown makes us receptive to extreme rhetoric. We don't know why we are afraid but that fear seems to grab hold of ideas that tend to confirm why we should be afraid. It's that "I knew it!" moment. The reticular activator at work.
The facts on the other hand are boring. They don't stimulate the reticular activator to make our brain pay attention. They may become completely overlooked. We register information more readily because of fear.
This is what makes the Coulters, Becks, Limbaughs and Palins so dangerous. The more outrageous the comment the more powerful it's affect. When people like this have a public forum they gain credibility. They are on radio or television saying these things so it must be true because they wouldn't be allowed to say it if it wasn't.
Let's look at the issue in Canada with Ms Coulter. She is invited to speak at a public forum. This gives her credibility. She is being paid to speak which gives her even more credibility. Our brain now thinks she must have something credible to say because this university has invited her. Surely a university wouldn't allow someone to spread lies in such sacred venue!
But you say "I know about her extreme right wing views and I would like to debate her. After all I may help to change her mind. At the very least I may give her something new to think about." This is the deluding brain at work. This woman holds absolute beliefs that couldn't be dislodged with a jack hammer. To be cynical, don't forget she makes her living being extreme and controversial. Do you think she is going to give that up because you gave her something new and profound to think about. Sorry...
The down side is those of the audience that hold fears or insecurities. They are the most vulnerable. They are searching for reasons to justify what they believe or feel. Ms Coulter is the perfect "credible" voice to confirm their fears or at the very least provide fodder for future issues that may arise in their life.
There is nothing to be gained by giving these extremists a public voice but there is certainly a great deal to be lost. These people create chaos in our world because "fear trumps facts" every day.
Saturday, March 27, 2010
Thursday, March 18, 2010
Market Yourself Not Your Competition!
So what is marketing? To put it simply, it is everything you do to identify where your market is, who your customer is, which venues to use for advertising and how you present your business to the outside world.
Advertising is considered to be the glamorous representation of marketing and may include using web sites, print ads, flyers, radio, etc. This creates your “outside perception”. How people perceive you and your business. If you operate from a physical location, that is part of your “outside perception”. This also includes word of mouth from past customers or just people that know you.
It’s impossible to talk about advertising without talking about sales. Sales occur when your advertising has worked for you. Now you get a chance to educate the prospect on the advantages of your product or service. This can be considered your “inside reality”. Your “inside reality” is made up of you, your sales staff, service people, software, business practices, showroom, etc.
I don’t feel there is a great deal of difference between sales and advertising. In fact I prefer to think of them as the twin siblings of business. They may be applied in two separate physical environments but they should be addressed the same. I feel one of the biggest problems in business arises when you don’t see them as being so similar.
Take a moment to think about your “inside reality”. What makes you different than your competition? Why should the prospective consumer spend their money with you over your competition? Do you feel the consumer would be an absolute fool to spend their hard earned money anywhere else? If you don’t then I would suggest you look at how you can improve what you do to make that distinction between you and the competition.
Now that you are the absolute best in class for your product or service, what is it that you are communicating once you have the chance to present yourself in person? Everything in your “inside reality” should be educating the consumer on the benefits of spending their money with you. Help them to understand what makes you better value than your competition. Provide follow up service to ensure they carry your “inside reality” with them to provide you with more business. They will now become one of your least expensive and best forms of advertising.
But wait a minute. “I’ve done all of this but I don’t seem to be attracting any more business than my competition. I feel like the best kept secret in town.” If you feel like the best kept secret in town I’m not surprised. When I look at most advertising being done in this time of such intense competition I am at a loss to distinguish one business from any other in the same category. Everyone is using the same old platitudes and hyperbole. “Biggest selection”, “largest showroom”, “family owned and operated”, “best service”, “in business since 1900BC”…and so on. Or maybe you use “menu board” style by simply showing pictures of product with pricing. Just like the menu in a restaurant.
The easy litmus test for your advertising message is to ask, “Can anyone else say what I’m saying?” It’s not whether anyone else can DO what you do, but can they say what you are saying. If you could simply change the company name in the advertising piece and make it apply to your competition then you’ve got a problem. If anyone else can say (and likely is) what you are saying how can the prospect possibly know you are the best in class? Chances are that all of your competitors are doing the same thing. People are going to spend their money somewhere so it is likely that you are just getting your small share of the business available. As they say, “Even a dead fish can float down stream.”
I hate to pick on Lawyers but they are one of the easiest examples to demonstrate how bad advertising can get. Virtually every one of them simply lists the services they provide and then include platitudes like “A reputation built on integrity, experience and skill.” “Expert Legal Defense…” “Legal Strength you can Trust.” I can only assume from their advertising that they are all the same.
Without knowing the details of the product or service you sell I can’t give you specific cures for what ails your advertising but I can provide some general rules. I said earlier that sales and advertising are the twin siblings of any business and should be dressed the same. You need to be using the same language in your advertising that you would use in your face to face presentation. I was talking with a business that sells paint and I asked him what were the differences in the various brands and why would I pay more for his. I then ask if he used that information in his advertising. As a consumer I would consider that to be important before I ever had to enter his showroom and face the dreaded salesperson.
Understand what your prospects concerns might be about spending money on your product or service. Address those issues in your advertising along with how you can help them overcome their fears. Don’t be afraid of ad copy. Most advertising salespeople will tell you that the consumer won’t read all that you have to say. I say that’s nonsense. If you make it relevant to them they will read it. If they see that your headline is hitting on something that has held them back from buying they will read everything you have to say.
There is a formula for ad writing that goes like this. Interrupt, engage, educate, and offer. The headline should interrupt them. The easiest way to do that is address a major concern of the prospect. There are other ways to interrupt such as sexual images. This was used a great deal in the past. People used to say that “sex sells”. Sex doesn’t sell, it interrupts. The problem is if it doesn’t engage the thinking of the prospect you will quickly lose their attention.
Once you have their attention, engage them with some relevant facts. Expand on the issues they are concerned with. Next you need to educate them about how you can solve all of their issues. And finally make them an offer. Even if the offer is just to send them more information. That gives you a name to remain in touch with. Give them a reason to come in to see you or book an appointment for you to see them if that’s the nature of your business.
This may seem simple but you need to keep a couple of things in mind. You must be sincere! If you are not truly the best in class of all your competitors you will eventually be exposed. You may get away with it for short time but remember, they are part of your “outside perception”. They are your ad on the street. PT Barnum may not have really said this but contrary to the statement “there’s a sucker born every minute”, they will eventually bring you down.
The other challenge to this system would be the creation of the ad copy. Most people aren’t great creative writers and are going to need some help. That is a specialty all its own. I guess that’s where I could provide additional help. I am just in the process of building it but you can contact me at www.buy-ology101.com for more information.
Advertising can be one of the most challenging aspects of being an entrepreneur. Since most businesses use advertising that all looks the same, most of the money you spend is helping your competition. As a business consultant I have actually taken advantage of this advertising flaw by helping new business owners select the right location (close to the competition). With a few simple changes you can own the market for the product or service you provide. Be sure that your advertising is working for you, more than your competition.
Advertising is considered to be the glamorous representation of marketing and may include using web sites, print ads, flyers, radio, etc. This creates your “outside perception”. How people perceive you and your business. If you operate from a physical location, that is part of your “outside perception”. This also includes word of mouth from past customers or just people that know you.
It’s impossible to talk about advertising without talking about sales. Sales occur when your advertising has worked for you. Now you get a chance to educate the prospect on the advantages of your product or service. This can be considered your “inside reality”. Your “inside reality” is made up of you, your sales staff, service people, software, business practices, showroom, etc.
I don’t feel there is a great deal of difference between sales and advertising. In fact I prefer to think of them as the twin siblings of business. They may be applied in two separate physical environments but they should be addressed the same. I feel one of the biggest problems in business arises when you don’t see them as being so similar.
Take a moment to think about your “inside reality”. What makes you different than your competition? Why should the prospective consumer spend their money with you over your competition? Do you feel the consumer would be an absolute fool to spend their hard earned money anywhere else? If you don’t then I would suggest you look at how you can improve what you do to make that distinction between you and the competition.
Now that you are the absolute best in class for your product or service, what is it that you are communicating once you have the chance to present yourself in person? Everything in your “inside reality” should be educating the consumer on the benefits of spending their money with you. Help them to understand what makes you better value than your competition. Provide follow up service to ensure they carry your “inside reality” with them to provide you with more business. They will now become one of your least expensive and best forms of advertising.
But wait a minute. “I’ve done all of this but I don’t seem to be attracting any more business than my competition. I feel like the best kept secret in town.” If you feel like the best kept secret in town I’m not surprised. When I look at most advertising being done in this time of such intense competition I am at a loss to distinguish one business from any other in the same category. Everyone is using the same old platitudes and hyperbole. “Biggest selection”, “largest showroom”, “family owned and operated”, “best service”, “in business since 1900BC”…and so on. Or maybe you use “menu board” style by simply showing pictures of product with pricing. Just like the menu in a restaurant.
The easy litmus test for your advertising message is to ask, “Can anyone else say what I’m saying?” It’s not whether anyone else can DO what you do, but can they say what you are saying. If you could simply change the company name in the advertising piece and make it apply to your competition then you’ve got a problem. If anyone else can say (and likely is) what you are saying how can the prospect possibly know you are the best in class? Chances are that all of your competitors are doing the same thing. People are going to spend their money somewhere so it is likely that you are just getting your small share of the business available. As they say, “Even a dead fish can float down stream.”
I hate to pick on Lawyers but they are one of the easiest examples to demonstrate how bad advertising can get. Virtually every one of them simply lists the services they provide and then include platitudes like “A reputation built on integrity, experience and skill.” “Expert Legal Defense…” “Legal Strength you can Trust.” I can only assume from their advertising that they are all the same.
Without knowing the details of the product or service you sell I can’t give you specific cures for what ails your advertising but I can provide some general rules. I said earlier that sales and advertising are the twin siblings of any business and should be dressed the same. You need to be using the same language in your advertising that you would use in your face to face presentation. I was talking with a business that sells paint and I asked him what were the differences in the various brands and why would I pay more for his. I then ask if he used that information in his advertising. As a consumer I would consider that to be important before I ever had to enter his showroom and face the dreaded salesperson.
Understand what your prospects concerns might be about spending money on your product or service. Address those issues in your advertising along with how you can help them overcome their fears. Don’t be afraid of ad copy. Most advertising salespeople will tell you that the consumer won’t read all that you have to say. I say that’s nonsense. If you make it relevant to them they will read it. If they see that your headline is hitting on something that has held them back from buying they will read everything you have to say.
There is a formula for ad writing that goes like this. Interrupt, engage, educate, and offer. The headline should interrupt them. The easiest way to do that is address a major concern of the prospect. There are other ways to interrupt such as sexual images. This was used a great deal in the past. People used to say that “sex sells”. Sex doesn’t sell, it interrupts. The problem is if it doesn’t engage the thinking of the prospect you will quickly lose their attention.
Once you have their attention, engage them with some relevant facts. Expand on the issues they are concerned with. Next you need to educate them about how you can solve all of their issues. And finally make them an offer. Even if the offer is just to send them more information. That gives you a name to remain in touch with. Give them a reason to come in to see you or book an appointment for you to see them if that’s the nature of your business.
This may seem simple but you need to keep a couple of things in mind. You must be sincere! If you are not truly the best in class of all your competitors you will eventually be exposed. You may get away with it for short time but remember, they are part of your “outside perception”. They are your ad on the street. PT Barnum may not have really said this but contrary to the statement “there’s a sucker born every minute”, they will eventually bring you down.
The other challenge to this system would be the creation of the ad copy. Most people aren’t great creative writers and are going to need some help. That is a specialty all its own. I guess that’s where I could provide additional help. I am just in the process of building it but you can contact me at www.buy-ology101.com for more information.
Advertising can be one of the most challenging aspects of being an entrepreneur. Since most businesses use advertising that all looks the same, most of the money you spend is helping your competition. As a business consultant I have actually taken advantage of this advertising flaw by helping new business owners select the right location (close to the competition). With a few simple changes you can own the market for the product or service you provide. Be sure that your advertising is working for you, more than your competition.
Tuesday, March 9, 2010
Saturday, March 6, 2010
The Tipping Point
I would first like to make it known that the use of this title is in no way meant to capitalize on the success of the book of the same name written by Malcolm Gladwell. I would recommend if you haven’t yet read Mr. Gladwell’s book, The Tipping Point, you should. It is probably one of the most influential books of the last decade.
This article was inspired in part because of my observations over the years of the lack of appreciation people seem to have on tipping in restaurants. There have been many articles written on the etiquette of tipping and the percentages recommended for various services provided. I have not yet come across any articles that explain how tipping works in the restaurant industry.
My expertise in this field comes from a couple of sources. As a business consultant I spend a great deal of time on the road in hotels. I am a member of a hotel rewards program and receive my annual letter from them expressing their gratitude for choosing their hotel group. Apparently I’m in the top 1% of all their members. I also have a couple of friends that own local restaurants. I’m a single guy so most of my time is spent in restaurants when I am in town and I have become friends with a number of the staff in these establishments.
I believe most patrons of restaurants are not aware of the concept called “Tip Outs”. The service you receive is a culmination of work by a number of individuals. It may be as simple as kitchen staff and wait staff, but may include bar tender/s, managers, and maître d’. When you leave a tip a portion of that tip is allocated to others in this chain of service providers. In some restaurants it may be more rigid and structured than in others but there is usually some breakdown of the tip you leave. This may be as little as .5% of a bartenders invoiced bills paid to the kitchen or 1% of the wait staff invoiced bills to the kitchen. In some cases the total amount of “Tip Outs” can be as much as 5% of the invoiced bill divided among the various other staff. Many people also may not be aware that restaurants are allowed to pay wait staff less than minimum wage. The standard in Ontario is about $8.25/hr.
I guess you could say I reached my “Tipping Point” the other day. I was in one of my local establishments and one of the wait staff had a table check that totaled $120. The patron left a tip of $7! That’s 5.8% of the bill. The total “Tip Out” in this particular restaurant is around 5%. This table seemed to be enjoying the service and was having fun with the staff. There was no complaint about the food. There seemed to be no tangible reason for this meager tip.
Now there are a variety of situations that need to be addressed related to how the tip is determined by the patron. If you have bad service then reducing the tip accordingly is justified but don’t forget the rest of the team should be compensated. It would also be important to let the house know what the issue is to allow them to deal with it. If the food quality or preparation is not to your satisfaction it’s important to let someone know but remember to properly compensate the wait staff. If the service and food are not as expected then a lack of compensation might be a consideration but again, it is very important to let the house know to enable them the opportunity to deal with the issue.
One last issue is food or drink that is “comped” (complementary) by the house. It seems that most people feel that if the item was provided but not charged for due to a complaint or just a grateful owner, the tip should only be on the invoiced amount…WRONG!!! The service was provided by the staff. Why should you not tip them for their service? They didn’t do any less work. You received the benefit. Show your appreciation for the service. They delivered whatever it was that YOU got for free. This is also true for gift certificates. Just because it covered part or even all of the check does not mean a tip for the entire amount can be ignored.
Don’t forget the “Point” of “Tipping” is to show your appreciation for service provided by people that are doing their job to look after you for an hourly rate of less than minimum wage. In some cases your lack of tip can actually cost the server money from their own pocket since the “tip outs” must be paid regardless of what you leave behind. If you don’t care for the service or food at a particular restaurant then speak with your feet…don’t go there.
This article was inspired in part because of my observations over the years of the lack of appreciation people seem to have on tipping in restaurants. There have been many articles written on the etiquette of tipping and the percentages recommended for various services provided. I have not yet come across any articles that explain how tipping works in the restaurant industry.
My expertise in this field comes from a couple of sources. As a business consultant I spend a great deal of time on the road in hotels. I am a member of a hotel rewards program and receive my annual letter from them expressing their gratitude for choosing their hotel group. Apparently I’m in the top 1% of all their members. I also have a couple of friends that own local restaurants. I’m a single guy so most of my time is spent in restaurants when I am in town and I have become friends with a number of the staff in these establishments.
I believe most patrons of restaurants are not aware of the concept called “Tip Outs”. The service you receive is a culmination of work by a number of individuals. It may be as simple as kitchen staff and wait staff, but may include bar tender/s, managers, and maître d’. When you leave a tip a portion of that tip is allocated to others in this chain of service providers. In some restaurants it may be more rigid and structured than in others but there is usually some breakdown of the tip you leave. This may be as little as .5% of a bartenders invoiced bills paid to the kitchen or 1% of the wait staff invoiced bills to the kitchen. In some cases the total amount of “Tip Outs” can be as much as 5% of the invoiced bill divided among the various other staff. Many people also may not be aware that restaurants are allowed to pay wait staff less than minimum wage. The standard in Ontario is about $8.25/hr.
I guess you could say I reached my “Tipping Point” the other day. I was in one of my local establishments and one of the wait staff had a table check that totaled $120. The patron left a tip of $7! That’s 5.8% of the bill. The total “Tip Out” in this particular restaurant is around 5%. This table seemed to be enjoying the service and was having fun with the staff. There was no complaint about the food. There seemed to be no tangible reason for this meager tip.
Now there are a variety of situations that need to be addressed related to how the tip is determined by the patron. If you have bad service then reducing the tip accordingly is justified but don’t forget the rest of the team should be compensated. It would also be important to let the house know what the issue is to allow them to deal with it. If the food quality or preparation is not to your satisfaction it’s important to let someone know but remember to properly compensate the wait staff. If the service and food are not as expected then a lack of compensation might be a consideration but again, it is very important to let the house know to enable them the opportunity to deal with the issue.
One last issue is food or drink that is “comped” (complementary) by the house. It seems that most people feel that if the item was provided but not charged for due to a complaint or just a grateful owner, the tip should only be on the invoiced amount…WRONG!!! The service was provided by the staff. Why should you not tip them for their service? They didn’t do any less work. You received the benefit. Show your appreciation for the service. They delivered whatever it was that YOU got for free. This is also true for gift certificates. Just because it covered part or even all of the check does not mean a tip for the entire amount can be ignored.
Don’t forget the “Point” of “Tipping” is to show your appreciation for service provided by people that are doing their job to look after you for an hourly rate of less than minimum wage. In some cases your lack of tip can actually cost the server money from their own pocket since the “tip outs” must be paid regardless of what you leave behind. If you don’t care for the service or food at a particular restaurant then speak with your feet…don’t go there.
Subscribe to:
Posts (Atom)
