Shel Israel speaks to OCRI Zone5ive

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Shel Israel was the featured speaker today at OCRI Zone5ive’s first session of the year for technology marketers.

PowerPoint has a lot to do with a traditional way of thinking. I talk at you. My slides establish that I am the authority.

That was then. This is now.

Effective communication involves conversation. And blogging enables conversation. One to one conversations that scale to one to many and many to many.

The conversation is fundamental to marketing. But it has become divorced from the marketing that has been happening for the last 50 years.

Marketing at its base was word of mouth. The local butcher. The local shoemaker. Talking to the local resident.

However, word of mouth was unable to scale with the development of mass production, mass media and ultimately, mass marketing.

Now, we are in a period in which audiences for mass media audiences are splintering and shrinking. And mass marketing is not as effective as it once was.

We are entering a time in which people can speak directly to one another about what they believe, what they like, about their passions. And others read and listen to this.

Smart companies are recognizing that their blogging employees can put a human face on the company and its products. And they can engage in conversations with people who care the most.

The Edelman Trust Barometer this year indicated that the most trusted source of information is “People like me.” Not the traditional institutions.

Sidenote: In a room full of marketers, only two people raised their hands when Shel asked whether anyone knows who Richard Edelman is. 

When you understand what people are thinking, then you can decide what the wise course of action may be. If you want to hear what people think, start a blog. They’ll tell you what they want and need.

Blogging allows the conversation of two people who know and trust one another to scale around the globe.

Good marketing will take the customer out from the edge of the company and bring them into the center. Blogging can achieve this.

Dell is coming to terms with the need for and the potential of blogging. They have moved from their position of unresponsiveness at the time that Jeff Jarvis proclaimed he was in “Dell Hell” to launch their own blog. And while that blog was widely criticized in its early stages, they have learned and responded. Dell has changed. They have become part of the conversation. And their perspective is being shared.

The adoption of blogging by corporations has been slow to develop. But as they become more familiar with its potential, the pace of adoption will accelerate.

HR is the first place that should blog. New recruits will judge a company by its bloggers. The company that wants to attract the MySpace generation will supply new employees with an employee blog at the same time that they receive their telephone, their computer and their security pass. And they won’t be told they have to blog. Nor will they be told what to blog. This will send a signal to them that their employee understands the evolving world and trusts them to behave responsibly.

Something very fundamental has changed. One way communications to two way communications. The traditional advertising vehicles are becoming more expensive at the same rate they are becoming less effective. As a new generation comes into the mainstream, they will expect marketing to be conversational.

Riya: Another glimpse at the development of a web 2.0 company

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RiyaBlog readers continue to be treated to an unusual peek behind the scenes in the development of a web 2.0 company.

Last spring, Riya launched with much fan fare in the blogging community, largely due to the ground-breaking social-seeding efforts of Tara Hunt.

Shortly after launch, Tara left the company to pursue her dream and Riya CEO Munjal Shah began a fascinating series of posts about the first months of the company’s public beta. The series culminated with Munjal indicating that the company had decided it needed to change its strategic direction. The beta experience was showing that the market for Riya was someplace else than Munjal and his team had thought it would be.

Munjal’s blog has gone dark for the past several months. Now, he has emerged again with a short post pointing to a substantial post by Riya Board member Peter Rip.

Rip’s post suggests that early stage investing is a bit like “hunt and peck” typing:

Riya’s approach to search is a perfect metaphor for early stage investing.  Eighteen months ago I couldn’t describe the business with any real precision.  We had some great ingredients in a field of opportunity. I figured I’d know it when I saw it. 

And Riya 2.0 will be significantly different than the beta site launched just a few months ago:

…Riya 2.0 is nothing like the Powerpoint we saw in Q1-05.  And it bears no resemblance to the stuff that was on our whiteboard in the Fall of 04.  But this is the nature of early stage consumer.  Change Happens. Iterate. Pivot. Evolve.

The key aspects haven’t changed. The core of the business is still image  analysis and  classification.  We now have 14 researchers just on this problem – perhaps the largest image analysis pure research team in the world – and a huge intellectual property portfolio.  The biggest changes are in how and where we apply the technology. Perhaps the best move we have made is to signal to the photo, social networking, and community sites that we are not in their business at all, enabling us to work together with them and exploit some real economic synergies.  It’s just as important for the world to know what you’re Not as what you Are.

We are in the process of re-defining image search.  The core premise of what we are doing is that there are lots of things humans can’t describe well in text, but we “know it when we see it.” We aren’t so much about searching for images as much as we are about searching with images.   This is really a different kind of search experience. Faces are the most extreme case. Our brains are highly tuned to recognize the most subtle visual dues, but humans can’t verbally describe faces with any precision at all (except for the occasional scar or mole.) 

Fascinating. I’m looking forward to continuing to follow the Riya story. Will they be able to pull off a business success? Stay tuned.

Stowe Boyd has some good advice for people taking the leap into solo consulting

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Stowe BoydStowe Boyd offers some sage advice on the FreshBooks blog that should be read by anyone considering solo consulting.

Stowe is one of the more successful independents. In his view, “One third of your time should be devoted to networking and marketing, that is finding new clients, or letting them find you; one third to talking up new projects, getting them into contracts, and managing the business side, up to and including getting paid; and one third performing billable work.”

And how does Stowe market himself?

I have a simple approach to marketing my services: I don’t. Or, perhaps more accurately, I don’t do any marketing other than blogging and attending conferences, which are the primary channels for potential clients. I leave the rest up to fate, the Tooth Fairy, and word of mouth.

Blogging is the centerpoint of my professional life, and in a real sense defines my professional identity. Many thousands of other consultants also blog, so I am not some outlier in that regard, and I believe that the benefits of diligently exploring your professional interests in the blogosphere can be enormous. Blogging is also relatively low-cost, although the time investment may be high. I know that there are some advocates of blogging who believe it is possible to get a solid return on a lesser time investment, but I try to blog daily, and often, many times a day. I have come to be considered an A-list blogger (whatever that may mean) but I think the key is to define a niche of interests that you write about that would allow a potential client to get an insight into your thinking. And then the email will start.

Marketing in the era of social media. This is advice you would not have heard even two years ago. But I have encountered several practitioners I respect who seem to have adopted this model. And judging from the smiles on their faces, I have to believe that it works!

Dell. You're still missing the point. Customers want to decide.

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Dell has redesigned their home page. In doing so, they’ve missed a great chance to make their customers feel that they are recognized as individuals.

Now, I’m not a Dell-basher. In fact, I’ve been a fan since founding Thornley Fallis in 1995. Over the years, we have standardized on Dell equipment. With the exception of a couple Apple systems, every computer and every server we own is a Dell product.

However, I have been frustrated by my inability to configure computers the way I want them once I’ve entered the Small Business channel on the Dell website. From time to time, the features I want on a particular system are only offered on the “Home and Home Office” channel. In order to find the system I want, I’m forced to search and compare across channels.

New Dell Home Page

Yes, Dell has redesigned their Home Page. And guess what. They’re continuing to force customers to fit themselves into segments.

In a post on Dell one2one discussing the decision, Manisha Mehta, Dell’s Director – Global e-Commerce, says:

The previous version of the Dell.com home page forced you to pick what type of user you were and guided you within that segment. Products became secondary. Many users have provided feedback that they preferred to navigate by products. We made some changes, so you can now navigate by products initially, but we still ask you to identify what ‘segment’ you best represent.

Why? Just show me all the products you offer and let me decide . . .

Seems like a fairly easy thing to do… Can’t be that hard, right?

Unfortunately, it is a bit more complicated than just changing links. When you call Dell on the phone we have specific phone numbers depending on your customer type. This way we can offer you the right product, the best solutions & accessories, and the proper warranty/services coverage for your system.

The good news in this post is the confirmation that I am not alone in my dislike of the Dell customer segmentation system.

The bad news is that Dell seems determined to ignore this feedback.

In his blog post, Manisha acknowledges that Dell’s customers have told Dell that its segmentation scheme is not working for them. Unfortunately, Dell’s response insists that, “This way we can offer you the right product, the best solutions & accessories and the proper warranty/services coverage for your system.”

This type of thinking tells me that Dell has lost its understanding of what attracted me and (I’m sure) many others in the first place: the promise of customization by me to meet my needs. If I wanted a system that was pre-packaged by a manufacturer, I’d buy it at Best Buy.

Worse, the rationale for maintaining the segmentation seems to be connected to Dell’s beleaguered telephone support system.

I live in Canada, a small market. But still, I have in my Contacts four different Dell support numbers to which I’ve been directed on different calls. And I can never understand why I am shuffled around.

Companies will make mistakes. They will struggle with growth. They will also face the challenge of cost control. But they must learn from their mistakes.

Dell, I hope that you know how important it is to re-establish that special experience that once was had by selecting and owning a Dell computer.

David Maister asks for advice on creating awareness

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David MaisterManagement guru and author David Maister has posted a request for advice on how to reach a broader audience with his blog and podcast.

Over the years I have read and benefited from David Maister’s wisdom in several of the books he has authored and co-authored.

So, I’d like to give something back to David by offering my thoughts on what he should do.

First, David, I’d advise you to start by reflecting on the nature of blogs and podcasts. Blogs and podcasts are not based on the broadcast model. They are based on the notions of community, sharing and conversation. In this medium, number of readers is less important than the quality of the relationship you have with those who become part of your community by visiting or subscribing to your RSS feed.

A passionate core community can help you achieve your objective. For example, you’ve reached me. I’ve read your books and now I recommend them to others who lead public relations consultancies. I buy copies of your books for new employees, ensuring that tomorrow’s leaders become familiar with you and your teachings. I link to your blog and note when others share my enthusiasm for you. And I’ve added you to my blogroll.

I’ve done all of this because I run a public relations firm and I subscribe to the perspective on trusted relationships and professionalism. I try to put into practice the approach your recommend in your books. And I value the insights you offer in your blog and podcast and the conversations that you spark. (In fact, you may recall that many months back I posted a comment on your blog encouraging you to add the Trackback capability so that bloggers like me could continue the conversation through postings on our own blogs.)

But that’s me. What about your other subscribers? You can learn a great deal about what draws readers to you by analysing your blog statistics and comments. The comments people offer and the number of links you get to individual postings should provide you with insight into what is popular and what draws and holds your community’s attention.

And you can be even more proactive in understanding your community. Why not conduct a survey of the subscribers to your blog and your podcast. Ask them why they have subscribed. What are they looking for? What do they value? What more or different content/features would they like you to offer? What do they do for a living? Where do they live?

This will provide you with much greater insight into what your current readers value and who they are. And you can use this information to refine the content you provide. After all, it’s all about the content.

Shel Holtz and Neville Hobson conducted a survey of listeners to their For Immediate Release podcast. And the results provided them with real insight into their audience and how they could fine tune their podcast to better serve their interests. And in this medium, the key to bigger numbers may be to drill deeper into a defined audience.

Of course, you could broaden the content of your postings to appeal to a more general audience. I think that this is the approach followed by Manager Tools. Their content is useful to anyone who works in any kind of office environment. If you were to do this, of course, you might disappoint and lose some of your core audience, who value your insight into the particular challenge of managing professional services firms.

Finally, do more of what you just did. By asking for advice, you engaged your community in a discussion. That bound them more closely to you. That generated links. And you can be sure that it increased awareness of your expertise and your blog as others read posts like this.

Microsoft needs a new chief cheerleader

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Punting on the CamRobert Scoble is leaving Microsoft. That’s big news for the company.

Scoble’s impact on the Microsoft’s image has been profound. He reminded us all that the company isn’t just a few aggressively competitive and astonishingly successful businessmen, but it is also thousands of individual employees who are probably a bit like you and me. This was an important accomplishment for Microsoft.

The 2006 Edelman Trust Barometer found that “in six of the 11 countries surveyed, the ‘person like yourself or your peer’ is seen as the most credible spokesperson about a company and among the top three spokespeople in every country.” And Scoble has been tremendously successful in becoming “the person most like me” for most bloggers.

Without doubt, he put a great face on Microsoft. And he continued to do this even in his post about leaving the company. Complimentary all the way through. A class act.

So what now? In his post about his decision to leave, Scoble himself observed:

I’m not the only blogger at Microsoft. There are about 3,000 of them here. They are not having the plug pulled on them. They changed the world. I just was the cheerleader.

Microsoft desperately needs a chief cheerleader to follow in Scoble’s footsteps. But none of the 3,000 bloggers in the company currently come anywhere near his profile.

Are any of the current bloggers capable of stepping into his shoes? Or will Microsoft have to reach outside the company to bring in another outsider with Scoble’s combination of skills as a communicator, cheerleader, networker and all round nice guy?

IABC International Conference – Pat McNamara

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Apex PRPat McNamara’s session was titled Fuel your business: Strategies from one of Canada’s fastest growing companies. She did not disappoint as she delivered a fast-paced presentation chock full of wisdom and practical tips.

Highlights of her presentation:

One of the secrets of success is to get awards. And we have applied for almost all the awards we won.

The ‘Not so secret” ingredients of a successful, profitable PR business are

  • The right people
  • The right clients
  • The right business

To be successful, you must have a passion both for PR and running a business. If you don’t have that passion, people will not want to work with you.

Pat is a fan of David Maister and she has put much of his advice into practice.

Getting hired is about earning and deserving trust. You need to earn trust. Be generous with your time and help. Show a good understanding of the situation.

The absolute number one key to success is having the right people and the right culture. Unfortunately, PR firms tend not to do a good job of communicating with their employees.

Culture must be consciously created.

  • Reputation is key.
  • Trust and empower your employees.
  • Build a strong, talented management team.
  • Ensure you have a leadership, not boss mentality.
  • Have fun.

At Apex, Pat believes that “The company becomes strong one employee at a time.” Think of employees as individuals. Figure out what each one is good at and figure out how to make those strengths fit into your success formula. Constantly reward success and achievement – in ways that are meaningful to them. And surprise them. The unanticipated can delight.

Always do an employee survey. You cannot pay too much attention to what your employees are thinking.

“People leave managers, not companies.”

If you can keep your employee turnover low, your business will have a firm foundation for growth. Clients stay with businesses that have stable teams.

HumanResources.com has a list of the top 10 reasons people stay at a workplace. 46% is related to people. 18% is related to the job. 12% is pay related. 10% is related to the company.

Ensure that you have a leadership mentaility, not a boss mentality. The company is about the sum of its parts. Everyone should be encouraged to understand and believe that they can contribute.

Focus on ensuring that all people in a leadership position have strong leadership skills and an understanding of the importance of this role.

McNamara recommends Marcus Buckingham and Curt Coffman, First Break All the Rules, as a source for the questions to ask in ensuring that employees are inspired.

To grow your business, you must:

  • Hunt and acquire new prospects.
  • Market to existing clients.
  • Identify new sources of business.

Not all new business is good business. If you work with clients who are not very nice or whom you are not very passionate about, you’ll lose your people. Get the right kind of business, not more business.

Existing clients are the most likely sources of new business and the most profitable.

When deciding who to purse, start with an honest assessment of your capabilities. Do you have a chance of winning this business? To have a reasonable chance, you must have special expertise, the time and the resources to stand out from the crowd.

Find out as much as possible about the client. You must know them well in order to understand their needs.

Ensure that someone on your team is excited about working with the client. If people are not passionate about this, don’t pitch the business.

Stay away from strangers. Don’t pitch unless you can be in the room and present to the client in person. People choose other people, not paper proposals.

Create a very short list that is focused on your capabilities and ability to win (never pitch business that you don’t think you have at least a 50% chance of winning.)

Pursue opportunities by sending creative packages and look for opportunities to interact (e.g. a PR 101 presentation.)

Understand that most people have made up their mind about whether they like you or not within the first two minutes of meeting you. Make the most of this time.

One you’ve won the business, you must work hard to keep them happy. This should be your number one priority. Happy clients will be forgiving. They will take your advice. They will provide positive referrals.

Reasons clients leave firms:

  • Failed to meet deadlines
  • Did not meet budgets
  • Lack of follow-through
  • Did not keep the client informed of project status
  • Poor or inconsistent quality
  • Did not meet expectations
  • Over-promised, under-delivered
  • Lack of enthusiasm
  • Order-takers vs. idea generators
  • Lack of good chemistry or trust.

Ways to keep your clients:

  • Ensure there is strong team chemistry
  • Provide senior level involvement
  • Under-promise and over-deliver
  • Clients are no your friends; remind your staff
  • Take a “no surprises” approach to budgets
  • Set clear expectations; put them in writing
  • Never miss a deadline; develop thorough, doable timelines
  • Ask: what’s the best/worst thing we could do?
  • Use their products
  • Let your clients interact with each other
  • Admit your mistakes
  • Show your passion for their business

Listen to your clients

  • Conduct a client survey
  • Conduct internal reviews – be brutally honest in your assessment.
  • Interact with your clients – walk the halls with them; attend sales meetings; introduce them to new ideas and services even if they are not your own.

Have regular conversations with the client:

  • First week: conduct a client audit and organize an internal indoctrination on how we will work together.
  • 30 days: conduct a review of how we are doing. Walk them through the first invoice
  • 90 days: Ask for an assessment of performance and gauge performance against written expectations
  • Six months: Do an activity recap and a planning session.
  • One-year review: Conduct a written survey and establish new directions.

To grow existing business:

  • Ensure you have multiple contacts
  • Conduct/attend media/presentation training
  • Attend marketing and sales meetings
  • Interact with other suppliers
  • Start an idea generator program
  • Introduce alternate team members
  • Invite them to other client events