Posts Tagged ‘Seth Godin’

People still buy from People

July 29, 2010

The marketing, sales and PR mix has been rapidly changing over the last few years. Today, customers are hearing about and evaluating suppliers in different ways. With so many channels the traditional marketing techniques such as TV advertising are no longer working so well. The growth and ease of the Internet has meant there’s less of a need for sales people. Or at least a need for a different kind of sales person and PR message, using social media to get to know customers.

Would you Trust Him? (Danny Devito in the Roald Dahl movie Matilda, 1996)

However, even in this brave new on-line world, the old adage ‘people buy from people’ remains true. Customers want to like who they are buying from and feel that they can trust them. “People ultimately judge only one thing about you: the way the engagement makes them feel”. – Seth Godin. “People don’t buy for logical reasons. They buy for emotional reasons”. The challenge is trust is not quick and easy to gain and it cannot simply be bought.

Customers are no longer listening to the megaphone PR and marketing approach. They now prefer to research themselves and share advice with each other. PR and marketing now pays an increasingly important role as a salesperson. More than ever before PR and marketing has to develop that all important trust. However, how do you trust in a faceless message and person you don’t know.

Blogs and micro-blogging now brings a new way to understand and get to know someone. But it has to be real!! A website has to pre-sell and become a friend.  The question is: how can you trust a blogger or a company website/blog? From all that I’ve leant to become trusted, a blogger needs to be consistent, open, professional and show integrity. Honest as Seth Godin says. The only way is to be real on-line! The draw back with social media is that it takes lots of time and persistence to build social capital (as discussed by Ryan Carson). But then sales take time too – with 8% of sales people get 80 per cent of the sales because they are persistent!

However, I believe for the individual and company to gain credibility, reference points also need to come from other trusted sources. This still relies on traditional channels including independent editorial reviews, peer reviews, customer endorsements, etc. These references remain powerful in an increasingly online world because they are persistent and can be found and discovered by the new clients rather than pushed at them.

People do still buy from people but the process is changing. Blogs, mico-blogging (Twitter) and video’s bring a personal touch to marketing and PR interaction but conversations have to come from the heart. Recent case studies are now showing that Social Media Is The Major Contributor To Lead Generation. So, if you want and need sales as most of our companies do – get blogging, tweeting, videoing right now!!

The big dipper

March 23, 2010

I wouldn’t normally blog about a book but  Seth Godlin’sThe Dip’ explores   one of the most difficult and profound questions in life  – knowing when to quit and when to keep going. If you don’t know of Seth, you should – he’s a marketing legend! Challenges are constantly around us  but when the going  gets tough with  a hobbie,  job or startup should we give up or keep going?  Don’t be afraid to give up when a situation is  no longer  a challenge or after much effort it’s not growing. Good things will happen!

I gave a talk a couple of weeks ago to a group of PhD students about the how a business idea literates and that sometimes you have to give up on a product/idea. After the presentation one of the PhD’s approach me and said that their Pharma startup has been working on a product for 10 years. They’ve  just run out of money and the product is only just going into clinical trials. Unfortunately they don’t know if the product will pass. Nightmare situation ! Give up or keeping..

On the same week one of my family asked: “when are you going to give up”, referring our startup. This is a very good question. One which I have tried to answer in previous posts – Knowing when to quit flogging a dead Startup. This is probably the most difficult question of all for a founder. And That’s probably why they asked. NOTE: They’re already  a successful company founder :)

Seth is so right - it’s really hard to know when to quit or when to keep going. Success maybe just around the corner but that corner could just another shoulder obscuring the next climb. During my employee career I sometimes found it easy to stop pushing new boundaries and settle into a comfort zone. I believe it so important to keep pushing forward  and knowing when to quit if  your not moving forward.  However it’s not always easy to let go of something you have put so much effort and dreams into, like a startup or a new job.

You will know when something has run its course but are often too afraid of change to doing anything about it. Unfortunately change will eventually be forced upon  you if you settle for too long. The problem is the ego gets in the way of quitting – doubt kicks in. What will people think if I give up, ‘he’s a looser’ or ‘she’s a quitter!’, etc. The Dip is about  seeing the challenge for what it is – a  test, a learning experience and something that should be ultimately rewarding. It is there to be overcome one way or another – just get over it!

The source of entrepreneurial determination

August 12, 2009

My MBA in Entrepreneurship didn’t refer much to  the importance of determination. Yet I believe that being determined is a key quality for entrepreneurs. Since I’ve been immersed in the real world of startups I found this idea to be very true.

Rachel Elnaugh calls it the “pit” which you have climb out and Seth Godin named it the “dip” that you must see beyond. Paul Graham says its “The most important quality in a startup founder. Not intelligence– determination.” (point 5). But what does it mean to be determined?

terminator_fireThe Terminator movie

The Terminator machine has absolute determination to achieve its single objective. Entrepreneurs derive their determination from:

  1. Focus – There is alot of talk in business schools about vision and strategy.  A vision brings something to aim for. Laurence Peter said “If you don’t know where you are going, you will probably end up somewhere else.” With so much to do in a startup it can be overwhelming. Time can easily to burnt on doing things that don’t really matter.  Determination brings the focus needed to work on the things that do matter.
  2. Belief – Because startups have limited resources they have to believe in their vision.  The founders have to be determined  to energise  enough new resources to reach their goal. Mahatma Gandhi,  “If I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning.” If  founders don’t believe in what they are doing no one else will and others aren’t going to help.
  3. Committed - There’s is no getting away from it. Startups are hard work . The entrepreneur has to  fully commit and be determined to make the startup work. Peter Drucker said “Unless commitment is made, there are only promises and hopes; but no plans.”  The entrepreneur has to sacrifice other parts of their life’s to make it work.
  4. Consistency – Most business is based upon trust. Potential customers need to know that a supplier will deliver on their promises and they will be around in the future. The trouble is trust takes time to build up.  If the entrepreneur chops and changes too much this trust will not buildup. Patience and persistence on a single course is necessary. Build momentum through each successive achievement towards the startups overarching goal.
  5. Think skinned – Entrepreneurs are well known for their determination and tenacity. They have to be thick skinned to survive the startup emotional roller coaster. Everyone will give advice and “hundreds of people will tell you your idea is rubbish” says Richard Reed the co-founder of Innocent Drinks. They may even think the entrepreneur is insane. The entrepreneur has to be determined to press ahead if they believe in an idea.
  6. Flexible -  There is no point in flogging a dead startup idea! Once a new venture is started it can be difficult to see the difference between a set back or an idea that will never fly. Seth Godin believes that successful entrepreneurs know the difference between a dead-end and  natural dips. A startup vision and plan needs to be broad enough to accept change.
  7. Lucky – Entrepreneurs need to be lucky people. However, as  Ernest Hemingway said, “You make your own luck”. If the entrepreneur is  determined and locates themselves often enough in the right place where things can happen, they eventually will.

James Dyson is a classic case of determination. In 1983 his new idea was rejected by all the major house hold vacuum cleaner manufactures. He had the focus,  belief and commitment to manufacturer the new idea himself in 1993. During 2005 Dyson took a massive a 20.7% US marketshare compared to Hoover’s 15.6%.

Determination keeps us going when we loose all hope. Its when everyone and everything seems to be going against us. Determination is the spirit of innovation, entrepreneurship and being human. As Thomas A. Edison said “I have not failed. I’ve just found 10,000 ways that won’t work.”


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