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04 Jan 22:05

Imagine New York City With 3,000 Taxis Instead of 13,000

An experimental ride-sharing system could get everybody where they need to go with just a few thousand minivans and a willingness to share
Photo: Getty Images

Large-capacity ride-sharing services could replace 98 percent of taxi service in Manhattan, researchers report this week in Proceedings of the National Academy of Sciences.

“We could drastically reduce the number of vehicles” with a “minor impact to users,” says Javier Alonso-Mora, a computer scientist at Delft Technical University in the Netherlands, who worked on the project while at the Massachusetts Institute of Technology.

Today, there are about 13,000 taxis in use in New York City every day—but by design they usually pick up and drop off a single passenger or group. Some popular transportation startups, such as Uber and Lyft, offer ride-sharing options, but vehicles typically have space for only two passengers at most. 

Research published in Proceedings of the National Academy of Sciences  in 2014 found that 80 percent of Manhattan taxi trips could be shared by two riders, but the work didn’t take into account new riders joining after a trip has already begun. In addition, the 2014 work and other studies of ride sharing either limit the number of riders or they don’t study the effects of letting customers choose different pick-up and drop-off locations from each other, Alonso-Mora says. So the real benefits for large-capacity vehicles haven’t been determined before. 

Using a randomly picked week of New York City taxi data as input, the researchers created a computer program that produces a route for ride-sharing vehicles that minimizes passenger delay—both the time riders spend waiting for a ride and the delay caused by deviating from their route so their vehicles can pick up new passengers. The program penalized requests not completed.

It works like this: After a set time interval such as 30 seconds, the program checks for a new ride request and adds the request to a queue. By considering unfulfilled requests and trips already in progress, optimization algorithms compute which passenger should be picked up by which vehicle and where each vehicle should go.

The researchers tested the simulation with vehicle capacities of one person (traditional taxi), two (UberPool or Lyft), four (car), and 10 (minivan)—stopping at that number because of the extra computational power needed for simulating even higher capacities. They used a maximum of 2 minutes of waiting with a 4-minute delay, 5 minutes of waiting with a 10-minute delay, or 7 minutes of waiting with a 14-minute delay—similar to the 5- to 10-minute wait it would take to park a car in a busy area like New York City, Alonso-Mora says.

They found that it takes only 2,000 ten-passenger vehicles or 3,000 four-passenger vehicles to meet 98 percent of Manhattan taxi demand every day. (The leftover 2 percent would be lost because of the set delay constraint.) The mean wait would be 2.8 minutes, and the mean trip delay would be 3.5 minutes.

“You allow drivers the possibility to make the same amount of money working less,” says MIT computer scientist and collaborator Daniela Rus. So, she says, instead of taking jobs away from taxi drivers, this would let the same number of workers make the same amount of money in fewer shifts. (The New York Taxi Workers Alliance did not respond to a request for comment.)

Alonso-Mora believes the work is evidence that companies should expand large-capacity ride-sharing options, or buses should switch to more flexible, on-demand schedules. (Which option is better isn’t quite clear yet, he adds.)

Alan Erera, an industrial engineer at Georgia Institute of Technology who was not involved in the research but studies ride sharing, writes in an email: “I am very optimistic about the tremendous value that real-time ride-sharing systems hold for dramatically improving roadway and vehicle fleet utilization for moving passengers.”

However, he says, “these results are optimistic, since they assume that everyone is willing to share rides with anyone else, and will sacrifice their own convenience for system optimality. In reality, some will always prefer to ride alone.” He adds that the calculations don’t take into account the extra waiting time it takes for each passenger to get in and out of the vehicle and the amount of time the car is idle, nor any variability in travel time, which “skews the results somewhat away from conservatism.”

“Building new forms of transit by extending the Uber/Lyft model with automated vehicles and/or better ride-matching optimization,” he writes, “will actually only increase congestion and total vehicle-miles travel unless we can find approaches that ensure many riders will pool together and share trips.”

Alonso-Mora says that to avoid riding with strangers, users could set a preference for that in a theoretical app. He also notes that the algorithm can be tuned to factor in extra waiting time and travel-time variability, but the group found only “small differences” in system performance with different travel times. To deal with another potential challenge—tariffs—drivers could estimate the savings from multiple passengers and incorporate them into calculations. 

He says the next steps could be to take into account predictions of future requests to improve the algorithms. They may also analyze more cities and explore the implications of autonomous vehicles in such a system. 

There are already several companies around the world offering large-capacity ride-sharing services.

“We absolutely can replace 98 percent of taxi service,” says Matthew George, CEO of Bridj, a Boston-based startup that offers 13- to 15-seater bus ride sharing services in several U.S. cities. In March 2016, the company began partnering with the local transport authorities to provide customized public transport in Kansas City, Mo: Unionized city employees are at the wheels of its buses. He says there is a waitlist of 30 cities that want to start a similar program. 

Instead of using bus stops, when a user requests a ride, algorithms consider all nearby requests for similarity. A driver goes to common pick-up and drop-off points within a 5- to 7-minute walk of all rider starting locations and final destinations, respectively.

He says that right now, the average user spends about US $85 a month on its services. He won’t disclose exactly how many users there are but only that buses have gone “millions of millions” of passenger miles—about 80 percent of customers use the buses as their main daily transportation. Some use them in place of taxis—and he expects those kinds of customers to increase in 2017.

04 Jan 22:04

The Tricks to Launching 100 Satellites on One Rocket

India plans to launch 103 satellites at once next month; Spaceflight Industries is launching a system for 87 in February
Photo: NASA

Update: This story was updated on 4 January, when ISRO increased its launch count from 83 to 103 and moved the launch date into February.

As of November, a total of 564 nanosatellites have been launched into space. In February, the Indian Space Research Organisation aims to launch a combination of 103 satellites on a single rocket—reportedly a world record. The same month, U.S. startup Spaceflight Industries plans to send up a module designed to support the launch of up to 87 satellites.

Neither the Indian Space Research Organisation (ISRO) or its commercial arm, Antrix Corporation, responded to requests for comment. But Spaceflight Industries senior mission manager Adam Hadaller described putting together launch missions for large numbers of small satellites as “herding cats…. It’s very hard.”

Once you get them in space, nano, cube, and other small-scale satellites have several applications—from monitoring weather to helping farmers decide where to water or fertilize crops—all at a significantly lower price than traditional-scale satellites. Several startups and space agencies, such as ISRO and Spaceflight Industries, are working to launch more and more of them at the same time, further reducing costs.

Launch: The first challenge begins before launch, Hadaller says. Satellites can come from different countries, and it’s necessary to check all the various safety regulations, communication licenses, and technical requirements. The different separation systems, for example, need compatible adapters. 

Then there is a choice to make: Piggyback the satellites as secondary payload on a rocket that’s already heading to space, or mount a dedicated mission? However, when piggybacking, satellites don’t have much choice in their orbits, which limits the variety of possible scientific experiments.

A SpaceX Falcon 9 rocket is set to launch a Spaceflight Industries module in February called Sherpa—containing small satellites—as secondary payload. In the mission, Falcon 9 will launch its primary payload and then deploy Sherpa after an orbital maneuver. Half an hour later, Sherpa will release its satellites.

Hadaller says that in the case of the Sherpa mission, the main limitation of the module itself is interest: As of 12 December, only 33 satellites were on the manifest for its 87-satellite vehicle.

If piggybacking isn’t needed, a dedicated launch can provide better orbital options. For example, on 12 December, Orbital ATK launched a Pegasus rocket containing eight CubeSats designed to monitor hurricane development in the tropics. The satellites deployed at a 510-kilometer altitude at an inclination of 35 degrees; over time, they spread out over the entire orbit. Their inclination gives full coverage of the tropics.

Communications: Usually, satellite owners communicate with their satellites over radio by pointing antennas on the ground at satellite locations. The better the aim, the stronger the signal, so satellite operators find their satellite’s location by using some combination of onboard GPS, trajectory estimation data, large telescope arrays, the JSpOC satellite tracker, or radio ranging.

But if all the small satellites can be identified, then radio interference can be a problem. The frequences they often use to communicate with over radio could become crowded by satellites and ground-based radios or cellphones, says Bruce Yost, who directs a NASA institute for small satellite outreach called the NASA Small Spacecraft Systems Virtual Institute.

He says one solution is to communicate at higher frequencies that are less likely to suffer interference, but this requires extra power. Another, less power-hungry solution researchers are considering is to transmit data from space to ground by laser—the drawback being that the optical link would need “even more accurate pointing” than radio communications.

Collision: Mass deployment also runs the risk of becoming a mass of space debris, some say. Spaceflight Industries says its team has not run an updated analysis of the exact probability of its satellites colliding with one another or another object in space, but Hadaller says it is “extremely low.” Also, all the tech meets international space community requirements meant to prevent debris, including deorbiting by the satellite’s 25th year. The Sherpa module itself will stay in orbit for 10 to 18 years and the satellites between 3 and 10 years, before they reenter Earth’s atmosphere and burn up.

Mike Safyan, director of Launch and Regulatory Affairs at Planet Labs, an Earth imaging company that makes small satellites, believes that the demand for launching large numbers of rockets is low for now, but “if the companies are successful, then we’ll see more of these kinds of large cluster launches.”

Yost says that there will be at least five NASA-sponsored, small, cube-shaped satellites called CubeSats on the upcoming Spaceflight Industries launch, which has been delayed from late 2016 to 2017.

“The capability of these CubeSats is really, really advancing quickly,” he says. Advancements in computer processors have made it possible to do “extensive” data processing and analysis directly on board a small satellite. Improvements in design and fabrication are also making them more robust, to better survive the harsh environment of space.

Jordi Puig-Suari, an aerospace engineer at California Polytechnic State University, in San Luis Obispo, helped design the original concept for CubeSats. “The timeline is one thing that we have to work on,” he says. “The satellites can be developed very quickly,” but getting them into space might not happen at the same speed.

But, he says, the benefits of mass deployment of small satellites are clear. “Having a larger number of lower-cost missions will allow us to go to a lot more places,” Puig-Suari says.

04 Jan 17:11

Canadian fintechs shine as venture capital-backed investments hit highest level in nearly two decades

by Solarina Ho, Reuters

TORONTO — Venture capital-backed investment in Canadian financial technology companies hit its highest level in almost two decades last year, even as the flow of funds into major fintech markets like the United States declined, according to sector data.

Fintechs, or companies that use innovative technology to revamp everything from banking to fraud security, globally draw billions in investment annually.

In Canada, fintech is revitalizing the startup scene and has attracted a new crop of Canadian venture capital funds looking to invest specifically in young fintech companies.

According to PitchBook, used by the U.S.-based National Venture Capital Association, venture capital financing in Canadian fintech was US$137.7 million in 2016, up more than 35 per cent on the year. Five years ago, it was US$21.8 million and in 2000 it was US$7.3 million.

Figures compiled by Thomson Reuters show a rise of nearly 74 per cent from 2015 to 2016, to $264.8 million (US$197.41 million), its highest level since 2000, when venture capital investment in Canadian financial technology firms reached $317.9 million.

The data vary as some investors do not disclose full information, while methodologies can differ on how the information is collected, how many companies are tracked, what is considered fintech and what constitutes a venture deal.

The figures pale in comparison to the United States, where investments reached US$4.27 billion in 2016. But the trend in Canada is on the rise, compared with a decline in the U.S. and Britain.

Investments declined at least 30 per cent in the U.S. in 2016, while in the UK they fell nearly 25 per cent and Singaporean fintech investment sank 65 per cent.

Weaker activity in the U.S. and UK was partly due to market uncertainty around the U.S. election and the Brexit vote in the UK to leave the European Union, as well as smaller deal sizes, according to data provider CBInsights and KPMG.

“From a global stage, Canada is a relatively small market,” said Adam Nanjee, who heads the fintech group in Toronto’s MaRS research hub.

“But it’s one of the best markets to build a company around innovation because we have a great test market, great infrastructure for financial services.”

The province of Ontario has among the highest concentrations of tech firms outside Silicon Valley, according to the provincial government, thanks in part to cheaper costs and the cluster of Toronto and Waterloo area universities producing engineers and developers.

The re-invigorated startup community lured home Canadians – such as the founder of online investment startup Wealthsimple, Mike Katchen – keen to trade promising careers for a more supportive and less cut-throat environment.

“There’s no loyalty whatsoever (in Silicon Valley). You’re going to overpay for somebody, they’re going to stay with you for six months and they leave for the next gig,” said Christian Lassonde, founder of Canadian-based investor Impression Ventures.

It’s one of the best markets to build a company around innovation because we have a great test market, great infrastructure for financial services

“Trying to build a successful company in the Valley has actually gotten too hard.”

California-based Lightspeed Venture Partners, early investors in Snapchat and Nest, has been tracking Canadian fintechs for potential investments.

Lightspeed, which has yet to invest in Canada, is monitoring startups including League, which offers alternative employee health plans, and FundThrough, a lending service for small businesses.

“What we look for are companies … that may start with the Canadian economy, but are thinking beyond Canada,” said Lightspeed partner Arif Janmohamed.

Other foreign players are also taking note. Goldman Sachs invested in Toronto-based Financeit in 2015 and nanoPay in 2016, for example.

Meanwhile, Japan’s NTT Data Corp, one of the world’s largest technology services companies, and MaRS announced a partnership in November to help Canadian startups expand into Japan and give NTT access to technology being developed by Canadian startups.

Maturing big-name startups such as Shopify, Wattpad, and Hootsuite helped pave the way, said Wealthsimple’s Katchen, for the next “cohort of companies that are coming of age on the international stage.”

© Thomson Reuters 2017

04 Jan 17:06

Bitcoin may be the biggest winner of 2017 so far

by Emma Hinchliffe
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Bitcoin is having a good 2017. 

The digital currency traded at $1,029 on Tuesday, its first day of trading in the new year. The price was bitcoin's first over $1,000 in three years. 

The jump in value was attributed to increased demand in China, which is where most bitcoin is traded. Analysts speculated that more people in China were using bitcoin to circumvent the Chinese government's strict regulations on money leaving the country, BBC reported

Demonetization of high-value paper currency in India has also led some to turn to bitcoin, CBC News saidRead more...

More about China, Digital Currency, Blockchain, Bitcoin, and Business
04 Jan 17:06

3 Leadership Resolutions You Need To Make For 2017

by Paul Keijzer

There’s no better time to set goals for yourself than the start of the year. And I’m not talking about professional goals or your business’s goals. I’m talking about your personal goals. Your leadership resolutions that’ll set the tone and pace of the year ahead. These resolutions or pledges are imperative for your leadership’s success and the impact it makes on the people around you and the business you run.

So getting right to it, here are 3 leadership resolutions you need to work on to become a better leader.

Strive For Balance

There’s much talk about work-life balance and the struggle for a leader to achieve it is relentless. While work-life balance is always something to strive for, I’m throwing another perspective into the mix. And that’s achieving mind-body balance.

The first step of course is to manage your time better. Schedules and allocating time for everything that’s important to you on a daily basis is essential. But what’s next when you’ve found the time away from work. Or when you’ve attended to the other things in life outside work. The time you find after work and personal life is what should be invested in your body and mind. That’s the time you’ll be spending keeping yourself fit and in shape and strategizing on the next big innovation. Basically what it comes down to is a pledge to exercise your mind and your body.

Build Capacity

As a leader you’re most likely seen as a role model and a source of guidance and motivation. That’s probably a fundamental trait that defines leadership. So you inspire dedication and commitment. You drive performance through motivational engagements. And you lead with innovative and creative thinking. But all that comes down to is you being the focal point.

Building capacity is not just succession planning. It’s going a step further and stepping out of the limelight and not being the focal point of the company. Truly building capacity entails quite a lot of invested time and effort on the leader’s part. So, as a leadership resolution, you’ll make efforts to specifically allocate quality time with each member of your team – one-on-one. During this time the conversation won’t be about the business or the targets that the company has. It’ll be about the bigger picture and the role each team member will play. It’ll be about how you’re empowering them and allowing them room to maneuver and shine. This is the time you’ll actually be transferring your vision. The objective is not just to motivate or inspire your team members, it’s to elevate them to the next level of leadership. It’s passing on the torch without actually leaving.

Invest In Yourself

While chasing your vision you may often find yourself trapped in a vortex that just keeps asking more of you. You’re constantly on your toes in terms of how people perceive you. You’re motivating people, developing strategies and ensuring outcome. You’re meeting customers and business associates to ensure stronger ties. You’re networking and building relationships. You’re doing all this and much, much more.

Investing in yourself is a loaded leadership resolution in that it demands many things to be taken into consideration. But on the surface of it, what it requires is stopping for a moment and thinking about nothing except yourself. Just you. Who you are. What you want to achieve and be remembered by. Where you see your career and life headed towards. When you plan on achieving each objective you have for life. And how you’ll get there. To answer any or all of these you’ll need to find some time reflecting on everything you’ve achieved so far and design a path that you can navigate through for the foreseeable future of your life. This leadership resolution is beyond your business and your personal life. It’s about you – as an individual. Once you’ve invested time in yourself you’ll be able to decipher what value you’ve created, the direction you’re headed towards, the personality you’ve developed, the changes you’ll need to make, the relationships you need to strengthen or let go of, the challenges you’ll put yourself up to, and the behaviors you need to display. Yes it’s a loaded leadership resolution for sure!

Irrespective of what goals you lay out for yourself this year, make sure to have some of these leadership resolutions on your agenda. While you’re leading your teams and realizing your vision your pursuit of excellence and continuous strive to be a better and stronger leader should remain on course.

04 Jan 17:05

4 Simple Closing Strategies for More Profitable Sales

by Marc Wayshak

Do you ever start out a sales presentation strong, only to lose confidence toward the end of the meeting? Closing the sale is one of the most intimidating parts of the sales process—but it’s also the most important.

If you can’t regularly close sales, you’ll never make a great living as a salesperson. But if you can crack the code, then you’ll make insanely profitable sales at a consistent pace. The following 4 strategies are simple ways to close more deals, so you can capture more profit—and crush your sales goals:

1. Dig deep to discover key challenges.

If you find yourself reaching the close and everything feels off track, then you probably haven’t spent enough time discovering your prospect’s deepest frustrations. From the very beginning of your interaction with prospects, you should be digging deep to find out what their biggest problems are. Armed with this information, you can then craft a solution that they’re actually willing to invest in.

Encourage your prospects to articulate what their top challenges are actually costing them in dollars, so you’ll know the exact value of your solution. Then ask, “Is solving this challenge a priority right now?” If you’ve done your job well, the answer will be “yes”—and then you can move confidently to close the sale.

To learn more about this strategy, watch the video below:

2. Be honest with your prospects.

If you sense a selling situation going downhill, your instinct might be to stick to your original plan and push through—but that’s actually the worst thing you can do. Instead, stop the conversation and simply tell the prospect, “I get the sense that this just isn’t working.”

This authentic moment of straightforward honesty might be just what the situation requires. You can backtrack the conversation with your prospect, figure out where things went wrong, and then head toward the close with new information—and more trust from the prospect—than you had before.

3. Ask for feedback.

One of the best ways to increase your closing ratios is to ask for feedback from prospects who you couldn’t close. The next time you falter during a sales meeting and fail to close the deal, ask for feedback. A simple question such as, “Do you mind my asking where this meeting went off track?” will give you tremendous insight into how you can improve your closing approach and close far more sales.

4. Hand over the reigns.

You don’t want to sit back and let the prospect completely drive the sales meeting, but a well-timed moment of “handing over the reigns” can actually help you close more sales. After the discovery process and before you move into the close, put the prospect at ease by giving them some control. Try asking, “What would you like to do next?” This gives them control over their decision to buy from you—and allows you to hear exactly what they’re thinking.

Do you find it difficult to close sales? Which of these tips did you find most useful for keeping future sales meetings moving in the right direction? Share your thoughts in the comments below. While you’re at it, check out this Special Report on 3 Closing Questions You MUST Ask

04 Jan 17:05

The Importance of Social Proof: Leveraging the Most Impactful Sales Tool

by Wesley Cherisien

Before buying a product, going to a new restaurant, or visiting a destination, what’s the first thing we do?

Read reviews.

We scour the Internet, talk to friends and read articles before we make any decisions. This is the power of social proof.

Before we do almost anything, we look to other people for feedback – positive or negative – to decide if we are making the correct decision. Even though we might not know the people writing these reviews, just by reading them we are empowered and justified in our actions. That is social proof and it’s clear why it is important and vital in today’s marketing world.

Social proof is the idea that people will be more apt to commit to doing something that they consider to be the “correct behavior” because others have previously taken the same action. People essentially follow the trend and do what others are doing if the results appear to be favorable. It is noted that 70% of consumers look at reviews before making a purchasing decision. Having proper social proof can be deemed as one of the most powerful marketing tools for companies. It’s so important because individuals will make decisions purely based on the recommendations of their peers, and understanding such is crucial for any company who truly wants to succeed. Because everyone is so prone to allowing feedback to steer their decisions to buy a product, it is necessary that companies develop ways to express why consumers need their products. Strategies that companies can use to help their social proof would be testimonials on their website, before-and-after snapshots of the product being highly effective and even a highly engaged social media following. Once a potential consumer browses testimonials, the psychology of social proof will kick in and the customer will believe the feedback that they are reading.

Let’s use a diet pill as an example. If a customer goes to a website to read about a diet pill they will research cost, shipping, time it will take for the pounds to start to shed and any other information related to the true value of the product. While all of that information is important, what will be the most important?

Testimonials. What are other people saying about the product?

Here’s why: For a diet pill, most websites will show a before and after picture to show the positive effect the pills will have. If this company is smart, below the pictures there will be a quote from the person who had a successful experience and explains the wonders of the pill, how this helped them and why everyone else should try it. A potential customer is more likely to identify with that quote than anything else. The potential customer is now receiving feedback from someone who has theoretically used this product and is being told “from a peer” how great it is.

That is the power of social proof.

Product reviews are a great example of social proof. Amazon has product reviews listed that are measured with stars and written reviews. As a consumer, that will probably be the first place that I would look before deciding if I want a product. Regardless of knowing any of these reviewers, I would be more apt to purchase a product with positive reviews because I have psychologically been told that it is worthwhile. Also, since other people who have purchased it have had a positive experience, I assume the same would hold true for me. That shows the power of social proof between an old customer and a potential customer. It also explains why reviews are so vital to the success of a product in today’s market.

A strong social media presence is another factor in building social proof. Have you ever seen those social media posts that have the “liked by x amount of people”? If you see that a product page or informational post has been liked by hundreds, or even thousands of people (including your peers), the likelihood of you checking it out increases astronomically. This is why the most successful brands use social media as a form of social proof that their brand is popular rather than a communication tool. There are even companies who are committed specifically to increasing your social media presence – the value simply cannot be overstated.

Bloggers are another source that can help promote products or Do-It-Yourself projects that can help legitimize companies’ products. Because of social proof, we place a blind trust in people and believe what they say to be true. If I am an avid follower of a blog that holds a giveaway of a product, what happens? I would immediately enter the contest, trust the product, and invest in wanting it for myself. I have trust in the blogger and therefore I have trust in the product that they are promoting, regardless of knowing much about it outside of that platform. To reinforce my trust in the product I could go to other sources and read reviews (company websites, Amazon, etc.) and that would also play into me trusting the product.

Today we have even created platforms that are purely to review companies, restaurants, products and experiences. Anyone can go onto Yelp and get feedback about restaurants, nail salons, or stores. Yelp is customer run and all you’d need to do is create an account to write a review. However, you do not need an account to read reviews. That is a powerful tool for customers today, which plays into social proof.

Glassdoor is a review platform created to discuss companies. You can look up salaries, positive aspects of companies, company size and anything else that employees are willing to disclose. Employees can review the company as a former employee or as a current employee and keep their identity anonymous. Glassdoor is extremely powerful for potential employees. That feedback is crucial and this example of social proof can really make or break a company. Continuous bad reviews will certainly be a deterrent for potential employees. No review should be taken lightly today.

Last year Forbes wrote an article disclosing that 88% of consumers trust online reviews. As consumers, we instinctively trust our peers, despite if we know them personally. That feeds into social proof and should affect how companies market products today.

It remains clear that whether people know one another, or not no longer matters. Communication, marketing, and advertising have changed drastically as we have more and more instant access to information. Because of these factors, social proof holds so much weight today. We believe our peers and trust others who have made a purchase that we are interested in. The moral of the story: social proof is extremely important and has the ability drive or deter company’s sales at a rapid rate. Today things are constantly going ‘viral’ due to social media and instant communication, so it’s more vital than ever to showcase positive reviews, testimonials, and case studies wherever possible.

04 Jan 17:02

The Single Most Effective Way to Win New Business on LinkedIn

by John Nemo

Understanding LinkedIn’s obsession with member-driven, original content and blog posts is critical to winning new business on the platform.

When I first took my young sons fishing a few years back, they would just drop a hook in the water and expect the fish to bite.

In their excitement to catch some fish, my sons didn’t realize they were missing a critical component of the entire process: Bait!

In today’s online marketplace (and in particular on LinkedIn) the same mistake is being made by far too many professionals looking to reel in new business.

In digital terms, your “bait” is Content – blog posts, podcasts, videos, webinars, eBooks and similar.

And, just like my sons at the lake, you are not going to hook any hot prospects without some tasty bait.

Fishing for Prospects on LinkedIn

To take the analogy a step further, LinkedIn recently released an Infographic showing how to strategize your content marketing on the platform. And it comes down to three key “Ws.”

When you understand “Who” LinkedIn members are looking to for content on LinkedIn, “What” motivates LinkedIn members to engage with that content, and finally “Why” engagement around your content can win you business on the platform – you have a recipe for success.

WHO: Your Content Demonstrates Your Value

In a recent study of 9,000 site suers, LinkedIn measured content from four different sources: peers, colleagues, brands, and influencers, demonstrating the value for all those groups to have their metaphorical fishing line in the pond.

According to the study, 79 percent of LinkedIn users reported that they read or “engaged” (meaning they clicked, liked, shared or commented) with content on the platform at least once a week. Even more, 1 in 3 respondents said they did so daily.

Whether you’re representing an established brand with a reputation to uphold, or building a new business of your own, you must earn the time and attention of prospects by demonstrating your knowledge and expertise via the content you create and share online.

Creating great content is critical to conveying to a potential customer that your “bait” is something they’re going to want to keep nibbling on until they get hooked, i.e. wanting to learn more about your paid products and services.

Put another way, content marketing gives you a golden opportunity by helping you demonstrate your authority and expertise.

Remember: Anyone can claim he or she is an expert, but if you can prove you are by offering valuable and actionable tips, or a compelling case study, you’ll have a much better chance of proving your worth and earning trust from potential customers online.

WHAT: Different Fish Like Different Bait

Also, when you go fishing, you use certain types of bait to catch certain types of fish. The same is true with Content Marketing – certain types of content appeals to certain types of audiences.

Best of all, creating killer content has become easier than ever. With today’s tools and technology, you can quickly create online training videos, turn a slide deck into a compelling webinar or even write a blog post without typing a single word.

And by using hashtags (LinkedIn’s version of keywords) with every piece of content you publish on LinkedIn, you’ll ensure your posts get indexed and sorted properly on LinkedIn.

Because it has nearly 500 million users in 200+ countries, LinkedIn is one of the world’s largest search engines. Every single day, hundreds of millions of professionals worldwide are using LinkedIn’s powerful internal search features to find content, tips and resources related to their businesses and industries.

For example, as a LinkedIn Trainer, I create and post a variety of content types, from free video trainings on creating a killer profile, as well as personal stories and inspirational posts, to in-depth webinars on how to find new clients and generate sales leads using LinkedIn.

Whenever you create and post content on LinkedIn, remember to include a Call To Action (CTA), be it inviting someone to a free webinar, embedding a video that introduces readers to you or your company, inviting comments on your post or whatever else moves followers further into your sales funnel.

WHY: Content the Cost of Admission

Now more than ever, your content is what earns you the time and attention of potential prospects on LinkedIn.

As a result, it’s critical that your content generates discussion (Likes, Comments and Shares), because that signals LinkedIn to push your post higher up in the newsfeed and rank it higher on related searches since it’s generating so much engagement.

Your content is also an excuse to engage with your prospects. You can interact with new, warmed up sales leads by responding to the Comments, Likes and Shares related to your posts. You should also use your content as a valid reason to message your key prospects 1-on-1.

Nobody ever complains about you sending a 1-on-1 LinkedIn message that features valuable tips, strategies or advice around a key professional problem or pain point that the person is looking for help with.

Engaging in a 1-on-1 approach where you’re demonstrating value and expertise and helping someone solve his or her biggest challenges for free is a great way to win the long-term trust and business of people online.

Again, your content is not meant to be an overt sales pitch.

Instead, it should be insightful, helpful and actionable, and it should appeal to a niche, target audience and address a key pain point they have in today’s marketplace.

If you take that approach, and tie in the content you create as a natural extension of a product or service you offer, it becomes a win-win situation for everyone involved.

There’s a reason LinkedIn is pushing content marketing for members all across the platform – it flat out works!

04 Jan 17:02

19 skills everyone should learn in their 20s

by Shana Lebowitz

woman at work

Your 20s can be a confusing time.

You might not be in school anymore, but you still have plenty to learn before you're a fully functioning adult.

To help you navigate this tricky decade, we reviewed several Quora threads on helpful skills to develop and ways to spend time in your 20s and highlighted the most useful insights.

Here are the life skills every 20-something should master.

SEE ALSO: 19 signs you're a functioning adult — even if it doesn't feel like it

How to be present

This skill is less fluffy and more practical than it sounds.

"Social media throws out all these qualifiers for happiness," writes Jennifer Taylor.

"You just need to be debt free and then you will be happy. You just have to buy this shirt and you will [be] effortlessly cool and then you will be happy. You just need to wake up at 5:00 a.m. every morning and be productive as f*ck and you will be happy.

"You don't need to do any of these things in order to appreciate all the wonderful things in your life that you have already. That's not being unambitious. That's pragmatic gratitude."

Indeed, Stanford psychologist Emma Seppälä previously told Business Insider that living in the moment, instead of mentally racing toward the future, is key to happiness and success. 



How to handle uncertainty

Planning only works to an extent.

That's why Dylan Woon recommends learning to "embrace uncertainty."

He writes: "Nothing is really certain, after all. Instead of clinging to the fake certainty, move beyond your comfort zone and see what's out there. You're young and can afford calculated risk. Your life should be a meaningful adventure."

 

 

 



How to just be honest

When you're late to an appointment, it's tempting to pin the blame on gridlock or train delays.

Instead, says Quora user Michael Hoffman, "just apologize. You don't have to give details. 'I planned poorly' is a hundred times better than risking your integrity by inanely blaming traffic."



See the rest of the story at Business Insider
04 Jan 17:02

10 Interview Questions to Help You Separate Content Marketing Rock Stars From Wannabes

by Sujan Patel

content-marketing-rock-stars

Before I begin, I want to say, “Thank you, internet,” for spawning countless occupations that simply couldn’t exist without you: web designers, app developers, SEOs, and, of course, content marketers. Plenty of the roles suit both creatives and techies.

Digital careers are relatively new and exciting, both for employees and employers. That is, aside from one small problem: How do you pinpoint the best candidate to fill a role that didn’t even exist a few years ago?

We’re all familiar with the typical interview questions:

  • What are your weaknesses?
  • Why do you want to work here?
  • Where do you see yourself five years from now?

There’s nothing wrong with these questions in principle, but they reveal little about someone’s suitability for filling a digital role – content roles included.

Perhaps more worrisome, the digital industry seems to be a culture of inflated egos. It’s easy to exaggerate skill sets hiding behind a screen, and it’s understandable why someone might want to. Unfortunately, this attitude often extends offline and into the office.

Faced with the potential of having both content marketing rock stars – and the wannabes – knocking on your door, how do you separate them?

Here are 10 questions you can ask.

1. How do you generate ideas?

Does the candidate lead a monthly scheduled brainstorming session, sitting down with the team to hash out ideas? Or is the candidate thinking about the next viral hit during the commute to work, while consuming content others have created, or even as they sleep?

Rock star content marketers don’t resign idea generation to a meeting room or whiteboard. They understand that such a regimented, pressured environment rarely leads to great ideas. They know that the best ideas often arrive unexpectedly.


Rock star content marketers don’t resign idea generation to a meeting room or whiteboard, says @SujanPatel.
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The greatest content marketers are always prepared. They know that the concept that could lead to their next winning idea could come to them anywhere, at any time. They’re never without a way to jot it down – whether that means a pen and paper on the nightstand or an app like Evernote on their phone.

2. How do you decide whether an idea has legs?

The ability to listen to and trust your instincts is important in all areas of your life, not just content marketing. People who rely entirely on what they believe will work, however, are a liability. A great content marketer uses facts and logic alongside instinct to assess whether an idea is worth pursuing.

A great answer to this question might entail a rundown of some of the key principles of successful content. For example, great content should be:

  • Simple – It is easy to understand.
  • Unexpected – It stands out and surprises its audience.
  • Emotional – It makes an audience feel (whether that’s happiness, sadness, or something in between).
  • Actionable – It should inspire the consumer to take action on account of it (usually, that means sharing it).

4 principles of successful #content: simple, unexpected, emotional & actionable says @SujanPatel.
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The best content marketers will run through these principles before moving forward with an idea and should be able to explain them to you in an interview setting.

3. How do you promote your content?

Ask candidates to talk you through their process for promoting content. The right candidate should know that creating great content isn’t enough to make it go viral; that only happens when it’s shared by someone who can get the ball rolling.

Sure, once that ball starts rolling, a content marketer can sit back and watch the rewards come in. Until that happens, though, it’s full steam ahead. Sending out 20 emails and hoping for the best simply isn’t good enough to promote content successfully.

There are no set rules about how much time we ought to invest in promoting content. For some, it’s a 50/50 split. Social Triggers’ Derek Halpern recommends that marketers spend 20% of their time creating content and 80% promoting it.


Marketers should spend 20% of their time creating #content and 80% promoting it says @derekhalpern.
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There’s no right answer.

What matters is the candidates’ ability to talk through a variety of tactics that they employ to promote content. You want to weed out any one-trick ponies. A good answer would be composed of a variety of promotional tools and tactics.

A better answer would include an explanation of how certain tactics are best suited to particular types of content.

A great answer would cover all of the above and talk about how to divide time and budget. For example, the rock star candidate might discuss implementing a multi-tier outreach strategy – one that entails sending highly personalized emails to a small group of tier-one prospects, sending slightly personalized emails to a larger group of tier-two prospects, and finally, automating an email campaign to an even larger group of tier-three prospects.

HANDPICKED RELATED CONTENT:
8 Nonobvious Tips to Promote Your Content

4. Which piece of content are you most proud of (and why)?

This question might be obvious, but it’s critical.

A candidate’s most prized piece of content tells you a lot about the individual’s potential as a content marketer and, perhaps more importantly, about his or her values.

If they cite content that sucks and can’t offer a valid reason why they’re proud of it in spite of that, you know they’re probably not going to be a good fit.

Perhaps they worked on it for a particularly tricky client and felt that the deck was stacked against them but still managed to pull a piece of content out of the bag that made the client happy and got results. Maybe it’s because that piece of content secured a mention on a site the candidate had always wanted to get featured on.

These answers tell you what that candidate values most and helps you assess whether their values line up with your own.

If candidates pull up a great piece of content and explain that they’re proud because it gained 40 links, sent 10,000 referral visits to the site, and resulted in three high-ticket sales, that’s an obvious rock star.

5. Which piece of content are you least proud of (and why)?

All content marketers have produced content they’re not proud of. Anyone who says otherwise is new to the role or lying. They’re also a surefire wannabe.

It speaks volumes when candidates can own up to their mistakes. You’ll also learn a lot from their reasons. Are they not proud of the content because they don’t like the idea, the execution, or the response it had?

Great content marketers will be open to owning up to their failures, and open to explaining why.


Great content marketers will be open to owning up to their failures and explaining why says @SujanPatel.
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HANDPICKED RELATED CONTENT:
10 Mistakes Content Creators Need to Avoid

6. What do you know about SEO?

Every content marketer should understand at least a little bit about SEO. Neil Patel once wrote about how SEO is all about content marketing, noting that too many marketers treat the two subjects like this:

seo-content-marketing-treated-separately

As he explains, marketers ought to see SEO and content marketing like this:

seo-content-marketing-intertwined

Rock star content marketers should understand the importance of keyword research and the placement of those words and phrases within content and meta tags. They should be aware of the impact of duplicate content, know how to prevent it and, ideally, have a grasp of how their day-to-day work affects a website’s visibility.

HANDPICKED RELATED CONTENT:
Excel at SEO With This 15-Point Plan

7. How do you measure content’s success?

Don’t automatically write off the candidates who say they measure their content’s success from social shares and links, but expect a better answer from content marketing rock stars.

Given that not all content pieces have the same goals, they should not be measured by the same metrics. For example, an infographic is almost always designed to get links, but a long-tail article’s primary goal generally is to drive traffic.

The best content marketers understand that the success of their efforts can’t always be measured the same way.


The best content marketers know #contentmarketing success can’t always be measured the same way. @SujanPatel
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HANDPICKED RELATED CONTENT:
The Secret to Content Marketing ROI

8. How do you react when content bombs?

Do candidates blame everyone else? Do they say the content was great, but everyone else just didn’t “get it”? Do they say they didn’t tell enough people about the content, or they didn’t tell the right people?

Or do they sit down, think carefully about the content they created and what they did to promote it, and try to figure out why this one failed to resonate with the target audience?

Great candidates are honest and reflective about how they contributed to the content’s bomb.

What separates the wannabes from the rock stars is how they handle that failure. Do they learn from it? Or do they blame the failure on something outside of their control and try to forget it ever happened?

The best marketers will always take responsibility for their mistakes and, more importantly, learn from them.

9. What book had the biggest influence on your approach to content marketing?

There is largely no right or wrong answer. Books are subjective. It’s not your place to dictate what someone should find influential. The key is that the candidates answer the question. It shows not only that they’re an avid reader but also that they pay attention to content they read and apply the lessons to their day job.

10. Which industry blogs do you follow?

This question is similar to the book question. Again, you’re not looking for the candidate to name any blogs in particular. What is important is that they can answer the question.

Conclusion

While you shouldn’t write off candidates for a vague answer or lack of response to one question, you should take pause to think more carefully about their responses to the other questions. By the end of the interview, your rock star candidates will have given thoughtful, insightful responses to almost all 10 questions.

What questions do you ask a prospective content marketer to help separate the rock stars from the wannabes? Let me know in the comments.

Want to be able to have a great answer to No. 10? Subscribe to CMI’s free newsletter.

Cover image by Joseph Kalinowski/Content Marketing Institute

The post 10 Interview Questions to Help You Separate Content Marketing Rock Stars From Wannabes appeared first on Content Marketing Institute.

04 Jan 17:00

8 Creative Sales Prospecting Ideas You've Never Tried Before

by afrost@hubspot.com (Aja Frost)

Creative Sales Ideas

  1. Create a Website for Referrals
  2. Form Strategic Alliances
  3. Attend Your Customers' Events
  4. Send Them a Book
  5. Offer Complimentary Consulting Sessions
  6. Serve as a Matchmaker
  7. Start or Join a Niche Group
  8. Try a Direct Mail Campaign

Sales success largely depends on routines. There are only so many hours in a day to sell -- the more practiced salespeople are at completing everyday tasks, the more time they can allocate to high-value activities like meeting with prospects or learning new skills.

But sticking to the same process isn’t always a good thing. If you rely on the same prospecting methods and never try anything new, you’ll miss out on valuable opportunities. After all, many buyers will never get on your radar via traditional channels.

Maybe they haven’t changed vendors for 20 years and would only switch if a trusted business partner referred them to another supplier. Or maybe they’re unaware of their problem in the first place, so they’re unlikely to download your content or seek out a salesperson.

To find these high-value prospects, you’ll need to try add some creative prospecting techniques to your arsenal. Use these six ideas as inspiration.

1. Create a website for referrals

Bill Cates, a sales referral expert, suggests creating a simple website customers and contacts can use to forward you referrals.

The headline should read something along the lines of, “You’re here because someone who’s invested in your success thought you’d benefit from [main value of salesperson’s product].”

If you have the resources, Cate also recommends filming a short video. Introduce yourself, why you believe in your product, and share two or three fun facts. Not only will this video humanize you and make prospects more open to working with you, but it’ll also highlight your passion.

Having trouble identifying your personal motivation? Cate advises asking yourself these questions:

  • Why am I in this business?
  • Why do I believe in the work I do?
  • Why am I with the company I’m with now?
  • Why am I excited about the company I’m with?
  • Why am I more excited about this work than I’ve ever been before in my career?

The last section of the site should motivate prospects to take action. Give them a valuable piece of content in exchange for their name and email address, or ask them to schedule a time on your calendar to talk using a tool like Meetings.

2. Form strategic alliances

Take a page from your marketing team’s playbook and partner with other companies with similar audiences. You’ll each receive qualified leads -- not to mention, valuable insights about your buyers. From buying trends to suggestions for selling to specific prospects, you’ll give each other a wealth of information. This technique is like co-marketing but for your sales department.

If you’re not sure which companies to target, identify the other purchases your customers make, then figure out the top providers of those products.

For example, suppose you sell accounting services to startups. Asking your customers about the other purchases they make in the same price range reveals the majority outsource their legal needs. With that knowledge, you might reach out to legal service providers and agree to send each other a certain number of referrals each quarter.

Your prospects benefit from this arrangement too. Before, it could have taken them two months to research and review different options for their legal needs; with your recommendation, it might take two weeks.

If you’re not sure which non-competing companies your customers buy from, ask:

  • “What other purchases are you considering right now?”
  • “What’s the last product you bought?”
  • “Where do you plan to invest in next?”
  • “What other challenges are you experiencing?”
  • “What other needs do you plan on addressing?”

3. Attend your customers’ events

Guess who your buyers hang out with? Other potential buyers. That’s why events hosted by your customers are gold mines for prospects.

It pays to keep in touch with people after they’ve signed the contract. Once a quarter, reach out to existing customers and ask how they’re doing. You might also consider sending along a relevant article or tip, congratulating them on recent company news, or offering to connect them with a specific person in your network they’d benefit from knowing.

Strong connections tend to invite you to professional events of their own accord. However, you should also monitor their websites and/or subscribe to their newsletters so you’ll know if there’s an event coming up. Ask your customer, “Would it be possible for me to attend [event] on [date]?” Because you’ve been consistently providing value, they’ll probably be happy to oblige.

4. Send them a book

There’s a few reasons sending your prospect a book usually pays off. First, nearly everyone -- from CEOs to junior employees -- loves receiving packages. Second, your recipient typically feels obligated to reciprocate by responding to your email or getting on the phone with you. Third, you have the opportunity to demonstrate your expertise by choosing a book that corresponds to the buyer’s challenges and needs.

To use this technique with an individual prospect, identify one to three topics she’d likely be interested in. Maybe she is the director of HR at a mid-size software company. Previous experience with similar prospects suggests she’s focused on shrinking average time-to-hire, improving two-year retention, and creating more professional development opportunities. Use these priorities to find a book with relevant advice or case studies. (If you’re struggling, ask similar prospects for their favorite work-related reads or search “[pain point] best books]” and “[prospect’s industry] best books.]”)

Mail the book, along with a note explaining why you think it may be valuable, to the buyer’s company. (Make sure the package is addressed to your prospect.)

Here’s a sample template:

Dear [prospect name],

Are you [struggling with X, looking to capitalize on Y, concerned with Z trend]? You might find this book helpful. I found [specific tip/section/explanation] in chapter X particularly helpful.

Best,
[Your name]

Most mail carriers let you request a signature upon delivery for an extra fee. Take advantage of this option; as soon as you get a notification the package has been signed for, call or email your prospect.

Say something along the lines of, “Hi [prospect name], I see you just got my package. Would you like to schedule a quick call on [date and time] to discuss the concepts in the book?”

Whether or not they say yes, you’ll have made a favorable impression -- meaning you still have a good chance of getting some time on their calendar at some point.

5. Offer complimentary consulting sessions

Time is a salesperson’s most precious resource -- so the idea of giving it away and asking for nothing in return probably seems dubious. But this can be a highly effective way to find good-fit prospects.

First, define your ideal customers: Their industry, market, company size, job title, location, and so forth. Then, hone in on a challenge most of these customers are facing.

A salesperson who works with biomedical companies, for instance, might focus on the difficulty his prospects have raising funding.

Once you have a challenge in mind, offer buyers complimentary 20- to 60-minute consultations focused on solving it. The meeting length you choose should depend on the size and complexity of the issue and your average deal size. If you have a limited number of high-value customers, your consultations should be longer. If you serve a large amount of lower-value customers, shorten the consultations.

These consultations will position you as an expert in the space. When prospects are looking around for solutions to their problems, you’ll naturally be one of their first choices.

You can also use this technique to connect with referrals. Tell your current customers you’re providing free consultations on a specific challenge, then ask if they know anyone dealing with that challenge.

6. Serve as a matchmaker

People are usually more willing to connect you with potential buyers if you’ve made some valuable introductions for them first. With that in mind, make a habit of asking prospects, “Are you currently searching for [a new, additional] suppliers, employees, partners, or customers?”

Follow up with, “Can you describe your ideal [supplier, employee, partner, customer]?”

Use your prospect’s criteria to find potential matches within your network. They’ll be grateful for your help -- and eager to return the favor by introducing you to contacts who fit your ideal customer profile.

If your prospecting strategy has started to feel stale -- and your results aren’t meeting your expectations -- use some or all of these six ideas to find fresh potential customers.

7. Start or join a niche group

From Facebook and LinkedIn to in-person meetups, groups are an excellent way to prospect. If you specialize in selling building supplies to local contractors, research groups for local real-estate investors, realtors, contractors, and architects.

If in-person meetups are where the leads are, show up to gatherings regularly, get to know attendees, and even pitch to speak at one of these events. You'll make inroads with qualifies prospects, and they'll be more likely to remember you when it's time to order supplies or make a recommendation to a business partner.

Online groups are also a successful way to prospect. When appropriate, request to join groups where your ideal customer hangs out. Before jumping in immediately with a pitch, get to know the people in the group. Join conversations in a non-salesy way, adding value by answering questions and sharing helpful resources.

If someone asks you a specific question you know your product/service could remedy, tell them you'll send a direct message with more details. By keeping your pitch private, you'll avoid spamming prospects who might not be ready for a pitch.

When in doubt, reply in kind. If your prospect liked an article you shared in the "Contractors of Toledo" LinkedIn Group, don't send them a message saying, "I saw you liked my article on new Ohio building permits. Let me tell you how I can help Ohio contractors like you reduce spending on supplies." Your prospect might have simply found the article interesting or clicked "Like" by mistake. Immediately messaging them sends the wrong ... well ... message.

Instead, leave them a comment thanking them. From there, the ball's in their court.

8. Try direct mail

Give this tired outreach tactic a fresh look by picking one primary message ("The best building supply customer service in Ohio"), one CTA ("Call today for a free estimate"), and leading with strong visuals.

Don't forget to add impressive company stats ("We respond to each support ticket or customer call in one hour or less"), a glowing customer testimonial ("Buckeye Building Supply was able to update my order in under an hour when a client had a last-minute change-of-mind on cabinetry materials!"), and a special offer to encourage your audience to reach out ("Call today for 10% off your first order.").

While inboxes have never been more inundated with salespeople and their requests, it's given the actual mailbox a rest. Seize the day and create a direct mail campaign that will have your phone ringing off the hook.

Prospecting doesn't have to be a chore. Try some of these creative sales ideas out this week, and see how your numbers improve.

HubSpot CRM

04 Jan 17:00

7 Things the Best Sales Calls Have in Common, Based on 25,537 Calls [New Data]

by chris.orlob@gong.io (Chris Orlob)
best-sales-calls.jpg

Think about the mid-to-late '90s. What was the status quo for the internet marketer?

Guesswork.

Marketing analytics technologies had not yet emerged as a tool-of-the-trade, so marketers would create their online campaigns and hope they worked.

Today that would be unheard of. Any marketer operating without analytics, measurement, and technology would be out of a job soon.

Analytics and marketing technologies have turned internet marketing from mostly art to mostly science. Marketers can easily measure what’s working (and what’s not) -- continually optimizing every element of their campaigns for higher conversion, more customers, and greater ROI.

Internet marketing has become one of the most optimized disciplines in the business world.

The sales profession has been a different story. Sales professionals, managers, and leaders have been operating with the same blindfold that plagued internet marketers before analytics arrived.

We rely on what we think works in sales. We have our theories, instincts, intuition, and anecdotal experiences.

But (until recently) there has been no technology, data, or analytics that has measure what is actually getting results.

What We Learned From Analyzing 25,537 Sales Calls: 7 Key Insights

During the first half of 2016, we analyzed anonymous conversation data from 17 of our customers using Gong’s sales conversation intelligence SaaS platform. These customers were typically mid-market SaaS companies.

Here are the details of how we surfaced the data and insights I’ll talk about in the rest of this post:

  • We analyzed 25,537 B2B sales conversations from 17 customer organizations. These were sales calls conducted on conference call platforms like GoToMeeting, join.me, and Zoom. In other words, these were account executive calls rather than SDR calls (fun fact: the average call ran 43 minutes long).
  • Each call was recorded using Gong, speaker-separated, cleaned, and transcribed from speech-to-text.
  • Next, the calls were mapped to their matching CRM records. This gave us the power to analyze against sales outcomes such as win rates, revenue production, and sales cycle length.
  • Finally, we ran Gong’s artificial intelligence engine through the massive data set. Call topics, key moments, and sales behaviors were auto-categorized using sophisticated AI algorithms.

We found seven distinct trends of high-performing B2B sales calls. 

1) Talk-to-Listen Ratio Impacts Win Rates

As sales professionals, we all know it’s best to listen and let the prospect do most of the talking.

Still, most sales reps are speaking much more than they think they are.

The average B2B sales rep consumes 65-75% of talk time, leaving little room for the prospect to “get a word in.”

sales dialogue.png

I’m embarrassed to admit: When I first started at Gong, my average talk-to-listen ratio was 72:28 (!) Thankfully I’m trending closer to 52:48 these days.

Now for the good stuff: The ideal talk-to-listen ratio for the highest yielding sales calls is 43:57.

closers-sales-calls.png

The good news is you don’t need to hit that exact ratio to see results. If you’re speaking too much, there’s low-hanging fruit in letting the prospect talk just a little more:

win-loss-by-prospect-talk.png

Increasing the prospect’s talk-time from 22% to 33% of the total call time significantly increases opportunity win rates.

2) Pricing Discussions Impact Win Rates

Discussing pricing three or four times in a call seems to be a good sign, but let’s all remember: Correlation does not always equal causation.

pricing-mentions.png

According to our data, when pricing is discussed less than three times or more than four times in any given call, win rates decline.

If price comes up three or four times in a call, it’s best to treat that as a buying signal. But that’s not the only discovery we found in regards to pricing …

3) There Is a Best Time to “Talk Price”

Top-producing sales reps “talk price” around the 40-49 minute mark in their sales calls.

Average and low performers tend to distribute their pricing discussions more evenly throughout the call:

closers-vs-average.png

Moral of the story? Establish value, then talk price.

4) “Probably” Is Probably a Good Thing

Any B2B sales rep worth his or her salt will ask the prospect the “timing question” at some point:

  • “When do you plan on moving forward with this project?”
  • “When do you estimate getting this agreement finalized?”
  • “What does your timeline look like for purchase?”

Surprisingly, a somewhat “cautious” response by the prospect is a good sign:

probably-sales-calls.png

When your prospect responds to your timeline question with “probably,” they are likely responding cautiously because of how seriously they are considering the purchase.

Again, it’s best to treat this as a buying signal while keeping in mind that correlation doesn’t always equal causation.

5) “We Need to Figure Out ... ” Is Probably Not

Now that we’ve talked about the positive signal regarding the timeline question, let’s talk about the negative signal.

When potential customers respond to a sales rep’s timeline question with some variation of “We need to figure out [fill in the blank],” there is a negative correlation in terms of win-rates and forecast accuracy.

Here's what this typically sounds like in the context of a call:

  • “We need to figure out who gives the final go-ahead for this ... ”
  • “We have to figure out how we will use the product internally ... ”
  • “We’ve got to figure out how we are going to justify ROI ... ”

No need to give up on your deal if you hear this phrase, but as a sales professional, you deserve to know the data: Your chances start to dwindle when your prospect utters these words.

6) “Risk-Reversal” Language Soothes Fear and Anxiety

Remember when I said your lowest-hanging fruit for increasing your win rates is getting the prospect to talk more?

Well, here’s your second lowest hanging fruit: Soothe your prospect’s pre-purchase anxiety by mitigating their risk. In our research, we found that when salespeople use "risk-reversal" language, their odds of making a sale increase by 32 percent.

Proactively, frequently, and aggressively talk about terms of the deal that are designed to protect the customer from risk:

  • Easy cancellations
  • No long-term contract
  • Easy, low-effort setup
  • 90-day opt-outs
  • Money-back guarantees
  • SLAs (service-level agreements)

risk-reversal-sales.png

I’ve noticed most sales professionals actively hide deal terms like this -- they don’t want to deal with an opt-out, a cancellation, or headaches of that sort.

Here’s my advice: The increase in your cancellations and opt-outs will pale compared to the much larger spike in your win rates.

7) Coaching Sales Reps at the Conversation Level Pays Off

The customers we pulled this anonymized data from were using the Gong conversation intelligence platform for sales call coaching.

Those customers that had the highest usage of coaching activity within the platform experienced the highest increases in win rates and revenue, while also shaving the most time off of their sales cycles.

greenhouse-1.png

It makes sense. The highest leverage point of the sales cycle is the conversation between a rep and a prospect.

If you can increase the effectiveness of that “lever,” you’ve made measurable progress.

What You Should Take Back to the Sales Floor

To sum this up, here is what artificial intelligence has revealed to us so far about sales call effectiveness:

  • The “ideal” talk-to-listen ratio is 43:57.
  • Most sales reps speak 65-75% of their calls.
  • Bumping a prospect’s talk-time from 22% to 33% delivers a sharp increase in win rates.
  • If pricing comes up 3-4x in a call, consider it a buying signal.
  • Top sales professionals typically discuss pricing late in the call (40-49 minutes in on average).
  • When your prospect responds to the timeline question with the word “probably,” consider it a good thing.
  • When prospects respond to your timeline question with the phrase “We need to figure out X,” you’ve got your work cut out for you.
  • When you soothe your prospect’s fears with risk-reversal language, win-rates on average increase 32 percent.
  • Conversation-level sales coaching leads to higher win rates, more revenue, and shorter sales cycles.

Now that we’ve brought the sales world the first wave of data-driven sales conversation insights, I’d love to hear what you think.

What questions do you have for me? What surprised you? What validated what you already knew? Shoot me an email at chris.orlob@gong.io.

Editor's note: This post originally appeared on ThinkGrowth.org and is republished here with permission.

HubSpot CRM

04 Jan 17:00

Why Modern Sales Leaders Manage Activities (Not Results)

by Bob Marsh

Can you imagine an Olympic track coach telling a sprinter that to win the race, he simply needs to run faster?

Of course not. But that’s exactly what sales leaders do when they tell reps to “just close more deals.”

The track coach has athletes do practice runs, then jog in place to warm up before a race. The coach explains how the runners can lift their knees high to reach top speed, land their feet properly to push off to the next step and breathe effectively to get the most oxygen.

The coach trains an athlete on the activities that will help them run better. And so it must be with the modern sales leader. It’s imperative that we manage and motivate our sales reps around the activities that lead to closing more business. Let me explain why.

3 Reasons Activity-Driven Management Works

1. You can’t manage business results.

Wins, revenue, profit and other names you use for “closing deals” are outcomes – lagging metrics that cannot be controlled, or at least require customer consent to make them happen. Because of that, they are by nature unmanageable. There’s research to prove it. Think of it this way: If you could actively manage revenue, wouldn’t you hit quota every quarter?

The good news is that you can manage your team’s selling activities – leading indicators – which are controllable and affect your business outcomes. These are things like calls, talk time, face-to-face meetings, ROI presentations, VP-level conversations, demos completed and proposals sent.

Key selling activities are unique to every sales team and selling role. A series of actions that lead to closing business for one team may not work for another. That’s why you need to define your key selling activities and map out how they form your sales process. Then you can start to manage your team around sales activities they can control – which will then lead to results.

2. Managing activities creates proactive sales managers.

At first, managing sales activities seems tedious. Do sales reps really need to be told how to do their job? Even just the idea of tracking sales activities feels intrusive and bears the odor of micromanagement.

In their book, “Cracking the Sales Management Code,” Jason Jordan and Michelle Vazzana argue that tracking the activities of sales reps actually leads to proactive management.

It makes sense. By providing your reps with instructions on how to navigate a sale (your key selling activities), you’re setting them up for success. You’re providing reps with clear directions, instead of letting them take a trial-and-error approach to close business.

Activity-based sales management enables better coaching. When reps aren’t making quota, sales managers can look at activity data to understand why. Let’s say your reps close 50 percent of the deals that make it to the proposal stage, but one rep only closed 2 out of the 4 deals she needed to hit quota. You know that she should have sent out 8 proposals. Now you can coach that rep on bringing opportunities to the proposal stage.

You can also consistently onboard reps faster with an objective set of metrics. Hire a sales rep, let them know what their quota will be in a couple of months, and provide them with the activities that will get them there. They spend less trying to figure out your sales process and more time getting ramped and making sales. One of our clients, Paycor, has done this and their analysis showed that their sales reps are getting fully ramped and hitting quota in half the time they used to; plus, far more of them end up being successful which leads to less sales rep churn.

3. Better sales management leads to higher goal attainment.

A proactive sales manager is much better than a reactive one. And better sales management leads to higher quota attainment.

In a study of global B2B sales teams, Vantage Point Performance found that the top quarter of sales managers performed at 115 percent of their target. That was also 39 percent greater than the target achieved by bottom-performing managers.

So what do we know? Revenue can’t be actively managed, but sales activities can. Tracking sales activities leads to better sales management. And better sales management leads to higher target achievement. The case for managing sales activities is clear. Let’s be Olympic track coaches and make sure our athletes come in first.

The post Why Modern Sales Leaders Manage Activities (Not Results) appeared first on OpenView Labs.

04 Jan 17:00

Marketers Put Content Marketing On A Pedestal For 2017

by Jonathan Bright

Well there’s a nice welcome into the new year for us – content marketing is hot stuff for ’17. And, encouragingly, the industry views it with more importance, it seems, than other marketing trends. Despite this, there are too many businesses that know full well what they need to do, but still lack a proper strategy for doing it.

Industry expert Smart Insights recently released the results of its Digital Marketing Megatrends 2017 research, in which over 2,300 marketers worldwide were asked to “select one marketing activity that you think will give your business (or client) the biggest incremental uplift in leads and sales in 2017.”

Incidentally, my colleague quite rightly pointed out that the word ‘digital’ does not appear in that sentence. This is perhaps a sign of the times or a slight oversight, but the responses were nevertheless overwhelmingly of a digital ilk.

This list is a canvassing of opinion on what will have the biggest influence in 2017

Top-rated content

The top-rated technique was content marketing, favoured by 20.3% of respondents. This was closely followed by big data (which includes the use of market and customer insights, and predictive analytics), which was stated as the most effective technique by 20.2% of respondents.

There’s a fair margin between these two and the rest of the pack. Number three on the list is marketing automation, favoured by 10.3% of marketers, a good 10-point drop. Other notables on the list include mobile marketing (9.2%), social media marketing (8.8%), SEO (4.1%) and online PR (3.3%).

This list is a canvassing of opinion on what will have the biggest influence in 2017. In that sense, the dominance of content marketing shouldn’t be seen as coming at the expense of other techniques, but it is nevertheless interesting that the industry still puts the most weight behind our beloved content and the data that guides its strategy.

Content marketing has actually topped this list for the last three years running. And, even with new trends on the up, a solid and documented content strategy is still likely to be one of the most effective marketing techniques.

Indeed, according to research by Smart Insights and Hubspot, more than 40% of businesses now employ a documented, strategic approach to content marketing. That, coupled with the fact that big data ranks equally as highly as content, suggests businesses are aware of their potential for adding to the online content fog without really targeting their wares to their audiences, and are changing their ways.

A documented content strategy is still likely to be one of the most effective marketing techniques

Documenting your strategy based on customer insights is absolutely crucial. A lot of this change in attitude is down to better content personalisation and an enhanced overall customer experience. These aren’t achievable without a good plan that everyone in your content team can get on board with, working towards an agreed outcome and ensuring your content is reaching the desired audiences.

The undocumented strategy

Despite the fact that brands are wising up to the benefits of a fully documented strategy, around six out of ten aren’t achieving what they could with their content marketing. That’s quite a hefty chunk of businesses that are being left behind while content marketing as a practice matures considerably. They’re either not creating content, or creating it without reason.

Recently, the Content Marketing Institute outlined why some businesses do not have a documented strategy, and the problems that lie therein.

First of all, the CMI has found that brands that write down their content goals, share them widely amongst key teams and consistently review how their performance is stacking against those goals are significantly more successful with their content marketing than those who don’t. No matter how big your content team – whether you’re a one-man-band or a whole department – without writing down your strategy, you don’t know your metrics, and therefore have no tangible gauge on what success looks like.

Many brands simply haven’t finished creating their strategy. This is often down to an understandable eagerness to do something, anything – a blog, a podcast, a newsletter – with scant thought to why they’re doing it or what they want to achieve. By not prioritising the strategy there’s no way to stand out. Your story won’t be heard – it’s just content, being spread into the ether never to be consumed or acted upon.

They’re either not creating content, or creating it without reason

Meanwhile some brands say their teams are too disparate or cannot agree on a strategy as their needs are too different. If this is the case, the coherence of the customer’s or client’s overall experience will similarly falter. Someone with a strategic overview needs to control the strategy to ensure the needs of all departments are considered and included in the overall direction of the content plan.

Build your audience in 2017

The fact that content has retained its top spot in the mix seems down to the fact that a large contingent of savvy companies recognise that 2017 is about building more engaged, loyal audiences – using content strategically, with an attitude of constant refinement to create an ever more personalised experience.

This is, perhaps, reflected in the fact that the humble email newsletter will enjoy a resurgence this year, as multiple sources, including the CMI, Smart Insights and Pure360, have recently said. Not only is email amenable to marketing automation that can save time on building audiences, but behavioural insight can be easily gathered and fed back to create more personalised content, turning the content of the email newsletter into one part of a properly tailored experience, and not just another nice-to-have bit of marketing fodder.

Equally, the fact that content marketing is top of the bunch also reflects that there is still work to be done for the remaining 60% of brands that perhaps aren’t using it correctly. While the savvy brands make headway, others are getting stuck on the wayside. Sure, they’re producing content, but they fail to place it, and in 2017 that could widen the margin between themselves and the top brass.

There is a quite a gap between how the industry views content marketing versus other marketing techniques. This is encouraging, but it also highlights the gap that those that haven’t quite got it right have still to close.

03 Jan 16:54

10 Modern Editing Tips for Meticulous Bloggers

by Stefanie Flaxman

protractor, ruler, and gray pencil - copyblogger

I watch a lot of YouTube videos about the best ways to clean your bathroom.

In fact, I realized that I spend way more time watching “hacks, tricks, and tips” about how to efficiently clean a bathroom than I do actually cleaning my bathroom.

Given the hundreds of thousands of views on these types of videos, perhaps it’s not just me. And I started thinking … this might be similar to bloggers who read about editing tips.

Editing, like cleaning a bathroom, isn’t always the most fun, so bloggers might spend more time reading about editing tips than actually implementing them.

We’d like to have a polished bathroom or a polished blog post — we just don’t always want to perform the work required to produce that shiny end result.

The 10 modern editing tips I’ll share today should invigorate you to put in the elbow grease … at least when it comes to your writing.

1. Become the Editor-in-Chief of your blog

Even though blogs have been around for a long time, some people may still associate them with sloppy, weak information posted on a website. And that’s what some blogs are.

But that’s not what you do.

While the writing rules you follow certainly depend on the audience you serve, your presentation must be thoughtful.

Blog posts that work for your business ideally satisfy a need for both you and your readers.

Here’s my definition of an Editor-in-Chief that serious bloggers like you can use to demonstrate your commitment to quality:

Editor-in-Chief (noun): a person who assumes complete responsibility for, and ownership of, all of the communication he or she puts out into the world to enable a self-directed, creative career.

2. Build editing momentum

You don’t start physical exercise without some gentle stretches, and you probably don’t even start drafting a blog post without some writing warm-ups.

So, don’t just jump straight into editing your writing without some preparation either.

Instead, energize your brain to tame wild words with your audience’s best interest in mind.

You want to feel ready to shape and craft your text rather than simply read it.

To build momentum to edit with ease, begin your editing routine by:

Those are just a few activities you can try. How do you get ready to edit? Share in the comments below at the end of this post.

3. Bond with your audience over a shared worldview

As I mentioned above, your blog post should be a thoughtful presentation that considers your audience’s desires, hopes, and needs.

And you don’t always need to write more to create the most engaging, useful, content possible. Sometimes you might just need to arrange your ideas in a way that is easy to consume.

That may include:

  • Revising your headline or subheadlines
  • Adding bullet points
  • Rearranging your sentences or paragraphs
  • Deleting confusing tangents
  • Turning a long blog post into a series

Editing is more than just checking for proper grammar, spelling, and punctuation. It’s your opportunity to extract your winning difference from your draft and shine a spotlight on it.

4. Sleep with one eye (and one ear) open

We know writers are always working, so look for meaningful snippets everywhere, even if they seem to have nothing to do with the topics you write about.

Why is this an editing tip?

Your draft may be a straightforward article that offers helpful information, but during the editing process you can infuse it with your own writing voice and incorporate interesting elements that hook readers on your blog’s style.

Go ahead, make the competition irrelevant.

More on writing voice on the blog tomorrow …

5. Ask yourself questions

It’s common to take a break after writing before you begin editing to help clear your mind. After all, it’s difficult to review your own writing objectively.

Another thing you can do is ask yourself critical questions about your content:

  • Does this introduction explain why someone should keep reading?
  • Is there too much hype and not enough value?
  • Can I simplify this point?

Since your headline is always a good place to start, check out: Ask Yourself These 3 Questions to Craft Better Headlines.

6. Add carbonation to your flat water

Plain water is fine, but isn’t sparkling water a little more fun?

As you examine your draft, vary your word choice and fine-tune your language throughout your post — especially at the beginning of paragraphs.

For example, if you begin the majority of your paragraphs with “Something you could try …,” or “Make sure …,” the text is going to look repetitive to a reader.

Also, take a look at the list items in this post. They aren’t merely “1. Edit,” “2. Proofread,” etc. They state unpredictable, unusual actions that guide the reader through the post in an unexpected way.

Be an artist. Play with your words and look for different ways to present your ideas.

7. Bring an umbrella (just in case it rains)

It happens to the best of us. We can all get a little … wordy.

Shield your final draft from extra explanations with your trusty word-repellant umbrella.

Aim to not get too attached to your words and swiftly cut out sections of your draft if they don’t benefit your audience. (Save them for later because they might fit perfectly into a different post!)

You want your article to be complete, but communicate your main message in a precise way.

8. Complete a “revision triangle”

Once you’ve set up a post in WordPress:

  1. Edit in the Text Editor screen
  2. Proofread in the Text Editor screen
  3. Proofread once again in Preview mode

I call this a “revision triangle” because a triangle has three sides and these are three steps that help ensure you have thoroughly reviewed your writing.

Since many mistakes are often not caught until you proofread, let’s look at my favorite proofreading technique.

9. Keep the reader in your created reality

In the draft of this post, I accidentally typed “learn” instead of “clean”, “person” instead of “perhaps,” and “always” instead of “also.”

If these errors had published, they would have jolted readers out of the experience I created for them.

They could reread the text and figure out my true intentions, but that’s a bit disappointing for readers — and extra work for them.

Catch these types of mistakes by proofreading from the end of your post to the beginning in Preview mode.

Remember that proofreading is not reading.

You need to slowly inspect each word in your draft.

10. Zig when others zag

This tip is also known as “double-check details other bloggers may overlook.”

Properly attribute any quotations you use and verify their accuracy (no missing or incorrect words).

Look up the exact names of companies and products. You don’t want to write “MasterMix 300” when the product you’re talking about is actually called “Master MixIt 2000.”

It’s easy to skip over hyperlinked text when you proofread, so give those words special attention.

Fact-check event information, such as the day of the week, date, and time.

There isn’t just one set of editing tips that help your blog stand out; you build respect and trust by getting the details right over time.

Strengthen your editing habits to differentiate your blog

Now that we’ve got a handle on practical editing techniques we can all use this year, I’ll resolve to also stay on top of my cleaning chores.

Should I straighten up the area around my bathroom sink?

It’s a start.

The post 10 Modern Editing Tips for Meticulous Bloggers appeared first on Copyblogger.

03 Jan 16:53

Assess and Measure Competitiveness to Stay Strong

by Laura Patterson

A Harvard Business Review article reminds us that today businesses face an environment where operating margins are increasing and market leadership is precarious. Being able to quickly read market signals and adapt is essential to sustaining a competitive advantage. Capabilities that lead to a competitive advantage in the past, may not continue to do so as market conditions and competitors change. Your sustainable advantage depends on how well your company delivers real, measurable benefits to customers, and produces solutions that are difficult for competitors to copy. With rapidly changing market, staying strong depends on regularly assessing and measuring your competitiveness.

Assess Competitiveness

Regularly Audit Your Competitiveness to Overcome Gaps

An internal audit is a good way to begin to review your competitiveness. Internal assessments or audits help uncover and highlight asset and people relationships key to positively impacting customers’ results.

The purpose of the audit is to assess your organization’s resources and capabilities. A good competitive asset assessment methodology requires two key ingredients, a champion and a framework:

  • The champion is someone who has a vested interest in gathering information about the enterprises’ competitive assets. This person should be someone with no agenda with respect to the results and facilitates or monitors the process. It needs to be someone who can ask probing questions, and who can keep the process from getting derailed.
  • The assessment is a collaborative effort, so there needs to be a framework that people in the organization can use that makes it easy to understand, implement and highlights the direction the business is taking.

Any assessment can only be called successful when it results in implementing initiatives and action plans that produce better solutions that address your customers’ problems and needs and value for your company.

Put an Effective Competitiveness Audit Framework in Place

Design your audit to capture your strengths and weaknesses. Then, categorize these in terms of how they align with your organization’s resources and capabilities. Evaluate each to determine the potential implications to your competitive advantage. Develop action plans for the weaknesses that need to be shored up and for strengths that can be further enhanced.

At a minimum evaluate these five primary capabilities in your audit:Assess Competitiveness

  1. Your ability to create and commercialize new solutions
  2. Your ability to market and sell existing and new solutions to existing and new customers
  3. Your ability to retain and grow talent
  4. Your ability to use data and systems to make customer and market decisions
  5. Your ability to service and support customers

A consistent process is essential to make regular audits effective and efficient. Build a process that incorporates these five steps:

  1. Setup
  2. Evaluation
  3. Analysis
  4. Initiative Development and Planning
  5. Initiative Implementation

You’ve completed the internal audit, reviewed the results, identified some potential areas to address and are formulating an action plan. More than likely there are a number of areas to address. It may be easy to decide what to do first. If not, benchmarking can help bring focus by highlighting areas where you are close versus far off the mark.

How to Benchmark Your Competitiveness

Most companies do some elementary level of analysis and have a competitive database that includes, the similarities and differences between products/services, and a comparison of strengths and weaknesses of each of their products and services, and pricing. Some companies take competitive analysis so seriously they use benchmarks. Possessing both the comparable data and information about the drivers behind the performance generating the results can help you understand potential trade-offs.

Webster defines a benchmark as “something that serves as a standard by which others may be measured or judged.” Benchmarking is the process of identifying benchmarks to improve performance. Benchmarking is specific to products or processes that are currently in existence. There are many benefits and uses for benchmarking. One benefit is that benchmarking others performing similar activities helps you understand the possible range of performance. Another is that with benchmarks you identify where to improve and where to prioritize your efforts.

Good competitive benchmarking requires bringing companies together to share information with the promise that the measures will be shared. As result, a third party is often best for facilitating the benchmarking process.

Here are few steps to help move your benchmarking process forward:

  1. Determine which functional areas are to be benchmarked
  2. Identify the key factors and variables with which to measure those functions — usually in the general form of financial resources and product strategy.
  3. Select the best-in-class companies for each area to be benchmarked — those companies that perform each function at the lowest cost, with the highest degree of customer satisfaction, etc. Best-in-class companies can be your direct competitors (foreign or domestic), or even companies from a different industry (parallel competitors with replacement or substitute products or services; latent competitors which might backwards- or forwards-integrate into your market; or, out-of-industry firms with whom you do not compete, but which have best-in-class areas to be studied such as FedEx or Wal-Mart in logistics).
  4. Measure the performance of the best-in-class companies for each benchmark being considered — search the SEC, the companies themselves, articles in the press or trade journals, analysts in the market, credit reports, annual report, suppliers, trade associations, the government or from interviews with other organizations willing to share their prior research or “swap” it with you.
  5. Measure your own performance for each variable.
  6. Begin comparing the results in an ”apples-to-apples” format to determine the gap between your firm and the best-in-class examples.

From this process you can identify the gaps between your company and the best-in-class examples. Once you have this information, develop an action plan that will enhance those areas that show the greatest opportunity to surpass the competition. Set specific improvement targets and deadlines. Establish a competitiveness metric. Monitor and report.

Create Your Competitiveness Metrics

Marketing dashboards are comprised of metrics that facilitate decisions and help you mitigate risk. We have a number of posts and articles on metrics and marketing dashboard, including the categories for your metrics. One of the categories you should include is related to competitiveness. A metric associated with competitive worth measuring and tracking is known as the Competitive Value Index (CVI).

A CVI provides a snapshot of your company’s competitive value picture. It defines your company’s position with regard to its ability to create and deliver competitive solution. A VI is founded on the idea that the reason customers buy from a company is based on the value they receive. Therefore, a CVI can be a useful metric for measuring your company’s ability to create and deliver the needed value. It can be used as a predictor of future growth because it explains a company’s competitive position.

Customers buy a product or service because they think it will be of value to them. How do we measure this value? A CVI attempts to provide insight into your customers’ value driver needs (represented by your company’s Value Proposition), your company’s ability to create that value, and your company’s ability to deliver the value.

Your particular CVI essentially measures the effectiveness of your value proposition. The components used to measure the CVI cover a wide range of business value drivers to create a complete picture of a company’s competitive value position.

Using primary research, you will need to establish the ideal performance for your attributes in three areas:

  1. Customers’ requirements
  2. Company’s ability to create value that satisfies the requirements, and
  3. Company’s ability to deliver that value

Through your primary research, capture your customers’ rating of your performance and your competitors for each of the components. You will use the results to create the index. As a result of the process you will know how you stack up against each component as well as your overall value index. By performing the process to get your CVI, you will a better idea as to which value components are strong and which need strengthening.

Creating your CVI depends on selecting the right competitive value drivers, or ”key success factors”, and their evaluation criteria. Choose drivers that cover customer needs – knowledge like quality goals, geographic considerations, and custom requirements, and knowledge about your company’s operations, e.g. project management skills, innovation process, communication tools, and resource and time management.

Picking the right questions can add to the usability of the measure. Here are 10 questions to get you started:

  1. How much competitive value do we have for the marketplace and how much do we want to have or want to keep?
  2. How much more value is out there that we can procure for competitive advantage? Where is it? And do we know what it looks like?
  3. Value wise, where are we now and where do we want to go? Do we have the right value strategies and tactics or do we need to change direction? What do we know about our company, its value assets, and what don’t we know?
  4. What value must be changed or eliminated? Have our current value sources worn out? Are we attempting to fit established products and services to contemporary problems?
  5. Do we have a viable value creation process (or system)? Knowing that value creation drives activities, are we collectively and constantly thinking about creating (new) value? Do we have value creation goals? How are decisions about value/value position made?
  6. Do we have enough resources to pursue opportunities?
  7. Is there a viable market for our new and existing products and services?
  8. Can we continue our success with the skills we have, or do we need to change or add to them?
  9. How do we prevent turnover within our core competencies?
  10. Are we delivering our products and services in a timely manner to meet our customers’ needs?

Once you’ve selected your value drivers, score each against three dimensions (you’ll need to set up a scoring methodology):

  1. Effort applied to make it successful.
  2. Compliance to the criteria.
  3. Value it adds to overall value position.

Then multiply the ratings that result from the assessment to determine your CVI.

Summary

Competitive advantage is fleeting. Regular assessments are needed to keep you focused on improving your competitive value in order to survive and thrive. Win/loss analysis and ecosystem maps provide insight into which competitors to include in your audits.

03 Jan 16:53

How to Use Built-In Social Media Analytics to Uncover Hidden Insights

by Gene Sobolev

“You can’t manage what you can’t measure,” management theorist Peter Drucker is often quoted as saying. This holds especially true for social media, where correct measurement is a non-trivial task.

Most professionals use tools such as Mention, SproutSocial or Hootsuite to monitor and analyze social media performance. There is, however, one significant problem: None of these tools, free or paid, gives you complete data, leaving many valuable insights hidden. On the bright side, you can get all the missing data at no cost by using the analytics tools that are built into the main social media networks.

What’s on the Market?

The market is saturated with companies who offer social analytics and monitoring solutions, either on their own or as a part of a larger suite. Some of the more familiar and accessible of these platforms are Hootsuite, SproutSocial, Mention, Audiense (formerly SocialBro) and SumAll. In the mid price range there are the likes of Simply Measured, Klear, Brandwatch and TalkWalker. And then there are the enterprise solutions from heavyweights such as IBM, Salesforce, Oracle, Adobe and SAS. For more information on these solutions, check this comparison.

These companies offer various aspects of data and levels of analysis. The main difference in price results from the ability of a tool to show complex metrics in an accessible way and use algorithms that offer predictive analytics. However, social media networks’ APIs make the exact same data available to all social analytics tools, expensive and cheap alike.

This means that when it comes to measuring your daily performance, these solutions have the same initial data to work with, regardless of the eventual presentation of these data. For example, the only engagement metrics that Twitter’s API provides are Likes and Retweet counts. If you are using a solution such as HubSpot which offers URL shorteners, then you can also get data about link clicks.

This is why most tools can’t provide a 360-view of your social reach and engagement. For daily tasks, it’s usually enough to know a basic trend but whenever you want to adjust core aspects of your social strategy, more care and data are required. Luckily, getting the additional data is very simple and absolutely free: it already comes packed with your social profiles. I’m talking, of course, about the analytics tools that are built into the various social media networks.

For a long time, social networks didn’t provide much data to their users but as they started to monetize their huge audiences, a need to to provide analytics to marketers rose quickly and most social networks were quick to implement some built-in solution. Some of these solutions have by now grown to be powerful tools.

What Important Data is Missing?

I like to divide social data into two kinds: descriptive and actionable (inferential). Descriptive data shows an existing status or a trend, but doesn’t tell you what causes the trend. For example, a metric such as a number of new fans or followers will tell you whether more or less people decided to follow you but it won’t tell you why they did so or which actions you should take to improve this metric. On the other hand, actionable data helps you to see beyond just a trend on a chart. It allows you to spot actual insights that can answer complex questions and be used to alter your social strategy.

Most social analytics tools lack actionable data because of the scarcity of metrics provided by the social networks’ APIs. The built-in analytics solutions provide more accurate and more complete data about your social media performance. Built-in analytics provide many engagement types beyond the well known Like, Reshare and Comment as well as context to those engagements. This is like looking through a microscope – a whole new world exists on this level of detail.

For example, with actionable data you can easily determine whether your content is truly engaging your audience by analyzing engagements in the context of impressions – did you need just a 100 impressions to generate 10 engagements or was it closer to 10,000 impressions? Without this context, engagements tell very little about the true interest of your audience in the content you are sharing. In another example, you could determine what type of media resonates with your audience by placing engagement in context with media types.

That being said, descriptive data is more useful on a day to day basis when you just need to know the current status and to be able to quickly spot emerging problems. The need in actionable data kicks in when you decide to change something.

Where to Find the Right Data?

Through the rest of the article, I will only discuss actionable data that you can find on Twitter, Facebook and LinkedIn. More specifically, I tried to present a unified workflow that balances simplicity of analysis, impact and speed for the time-starved marketer. You can of course carry out more complex analysis to predict future trends, but I believe that the time to value ratio will diminish.

Which Data to Look for on Twitter Analytics?

You can access Twitter Analytics by visiting analytics.twitter.com and logging in with your Twitter account. After logging in, you will land on the “Home” tab where you have a quick overview of your main descriptive metrics. Skipping to the “Tweets” tab, you can see data about impressions, likes, retweets, replies and link clicks by day as well as data about individual posts.

Impressions chart in Twitter Analytics

Next to each individual post, you have the number of impressions, engagements and an engagement rate (engagements divided by impressions). Clicking on a specific post will show you a breakdown of the engagement types such as likes, replies etc. This data is interesting because it gives you the details and context.

Unfortunately, Twitter doesn’t allow you to sort these posts, which makes it hard to uncover insights. On the bright side, Twitter allows you to export data which you can conveniently analyze in your tool of choice (e.g. Excel, Google Spreadsheets or various data analysis tools such as Pandas). To export data from Twitter, choose a time frame and click on the button labeled “Export data”.

Steps to export data from Twitter Analytics

In the exported data, each engagement type gets a column, which makes it easy to isolate engagements, timestamps, impressions and other data. You can easily aggregate data or analyze individual posts. This flexibility allows you to quickly discover valuable insights about the content types to share, when to share them, how to annotate and so on.

Useful Insights to Look for on Twitter

  • Impressions and engagements per hashtag – find your best performing hashtags by retrieving the hashtags from the post texts and using them to group engagements
  • Impressions and engagement by time – convert the timestamps from UTC (Twitter default) to your local time zone and find out when people interact with your content
  • Impressions and engagement by day of the week – convert the dates to week days and check if there are some days when you should be posting more
  • Impressions and engagement by post length – sort posts by number of characters or words to find out the optimal length for your annotations
  • Impressions and engagement by media type – isolate tweets with image URLs from those without and combine with the media column to sort engagements by media type
  • Organic vs paid engagment – compare organic engagement against paid to determine how much to invest and where the balance lies
  • Best performing posts – sort posts by engagement rate to find the ones with the most engagements per impression. These posts engage a large portion of the people they reach and are therefore a solid guideline for deciding which content to share more of.

The great thing about exporting this data is that you have the flexibility to mix metrics to discover really interesting insights. For example, maybe some times are better for posting specific media types than other times. Maybe posts with more than 100 characters should have 3 hashtags and those with less only 2 hashtags. Or perhaps posting towards the beginning of each hour is more likely to reach your audience.

The chart below is an example of a visualization of how on average tweet length influences impressions. The chart is based on our own posts at inboundli and uncovers an interesting insight – while many marketers argue that Twitter annotations should be kept short, we consistently found that longer tweets work better for B2B companies (data from 12 million B2B posts). This doesn’t necessarily contradict the commonly accepted truth because the longer tweets had hashtags, mentions and images. These make posts longer without touching the annotations while increasing reach and engagement.

A chart showing impressions by post length

Twitter has a well-balanced analytics platform with plenty of insightful and interesting data that are a great addition to whichever analytics solution you are using.

What Data to Look for on LinkedIn Page Analytics

Access LinkedIn Page Analytics by first clicking on your LinkedIn photo at the top-right corner of the navigation bar. From the dropdown menu that appears, locate the section titled “Company Page” and click on “Manage”. On the company page, click on the tab labeled “Analytics” under your company’s logo.

Steps to access LinkedIn page analytics

The data that LinkedIn provides is scarce, but it’s nevertheless useful. The actionable metrics on LinkedIn are found at the very top in a section called “Updates”. Here you can see individual posts with data about impressions, clicks (clicks on content, company name or logo), interactions (likes, comments and shares), new followers on sponsored updates and engagement ratio.

LinkedIn currently doesn’t provide a way to export this data. One way around this is to download an extension such as Export Linkedin Analytics. However, the data exported with the extension is not organized in an optimal way. Another way is to manually select and copy the data and column headers in the Updates section (you will need to click on “See more” several times until you see all the data you want to select). When you paste the data in a program like Excel, the copied values will be placed in columns and cells with the headers correctly corresponding. Although it’s a manual process, it hardly ever takes more than 5 minutes to get all your data ordered in a spreadsheet.

Steps to copy LinkedIn metrics

Useful Insights Unique to LinkedIn

  • Follows from sponsored updates – it’s hard to get followers on LinkedIn, which is why it might make sense to sponsor content that can drive followers for your company page

Of all the main social networks, LinkedIn offers the least data via its API. The additional data from the built-in analytics is a welcome addition to the analytics solution that you are using to monitor LinkedIn.

What Data to Look for on Facebook Insights

To access Facebook Insights click on the down arrow at the top-right corner of your account and select “Manage Pages” from the dropdown menu that appears. From a list of your pages, select the Facebook Page you would like to manage and select the “Insights” tab once on the Page.

The menu with the most actionable data is titled “Posts” and has a section called “All posts published”. This section has data about each post in your Facebook feed. The data includes a timestamp, the post text, type (link, image etc.), geographic targeting, reach and engagements (clicks, likes, reactions, comments and shares). The great thing about this section is that Facebook allows you to sort the data by various properties, making the analytics interface more flexible than the ones offered by Twitter and LinkedIn.

Sorting data in Facebook Insights

Exporting data from Facebook Insights will give you even more flexibility and easier access to insights. Click on the button labeled “Export” from the top-right corner of the “Overview” menu. Select to export “Post Data”, a time range, a file format and you are ready. The exported report offers the same flexibility as Twitter’s export.

Steps to export data from Facebook Insights

Useful insights unique to Facebook

  • Impressions and engagement by time* – convert the timestamps from Pacific Time to your local time zone.
  • Engagement by content type** – sort engagements by media type.
  • Impressions vs. reach*** – determine how many unique people your post reached and how many times a unique person was served your post.
  • Engagement from people who like your Page – check whether your page has the right following and whether your content is reaching them
  • Negative feedback – check if your posts are steering any negative emotions
  • Engagement by video length – find the optimal length of videos to post

* Unlike Twitter, the default time in Facebook is Pacific rather than UTC.

** Unlike Twitter, Facebook provides a dedicated column for media types so you don’t have to compile data from various columns.

*** You can read this post if you would like to know more about the distinction that Facebook makes between reach and impressions.

Similar to Twitter, you can mix metrics to get a better sense of what to improve. Facebook has a lot of useful metrics and makes it very easy to optimize posts for your specific audience.

Benchmarking Social Networks

Many of the metrics are compatible across social networks. I recommend using these metrics to do an in-depth comparison of your performance on Twitter, Facebook and LinkedIn.

Engagement rate, media types and days of the week are among the many compatible metrics. One important feature is that the exported data allows you to differentiate between organic and paid engagement, which gives you an important segmentation ability. For example, you might find out that Twitter has much more impressions than Facebook, but if you compare organic and paid engagement, you might discover that promoted posts on Facebook are more engaging – an insight you could have otherwise overlooked and decided to scale down your Facebook activity.

You might find out that each platform has different optimal times and days for engagement, which can lead you to optimize your content calendar. You might find out that different post lengths perform differently on the social networks and optimize annotations for each network.

How to Make it Manageable

As a fellow marketer, I know how time-stranded you are and it might seem overwhelming to do the analysis I described routinely. Luckily, the analytics solution you are using is most likely enough for periodical measurement needs and is probably more convenient for that task as it hopefully aggregates data from all the networks in one place.

The analysis I suggested is required when you need to see beyond a trend or current status. I recommend doing the analysis I described every half a year (which should provide you with enough fresh data to notice changes). This will help you to discover the reasons behind emerging trends in your weekly reporting and allow you to tweak or pivot your strategy. Other occasions when you might want to go deeper with your social metrics are when you spot a bad trend in your weekly reporting or if you are planning a strategy shift.

Conclusion

There are plenty of good social analytics tools on the market, but the free and built-in analytics tools of various Social Media offer great additional data which is reliable (coming from the source) and easily accessible. By exporting data from these analytics applications, you can build the most flexible and comprehensive workflow to discover insights beyond the usual reporting metrics that can state the status quo but have little other use. Not using the built-in solutions means passing on the vast majority of insights related to your social media strategy. With a routine check and clearly defined metrics and goals, the possibilities are nearly unlimited.

 

03 Jan 16:51

Content Creation Considerations: 9 Key Steps When Going From Concept to Content

by Jessica Mehring

Coming up with an idea is the easy part. But it’s only one small piece of the pie.

The biggest challenge is often taking that brilliant concept and turning it into content.

You’ve been there. I know you have, because we all have. You get a brilliant, game-changing idea for a piece of content that will shoot you (and your company) into content-marketing superstardom.

Your audience will go crazy for it! Sales will skyrocket! Your boss will give you a raise!

And then the wheels start moving. Different team members get involved. Some details are overlooked. The content is created, but it’s not exactly on point; it just doesn’t quite flourish.

There are a lot of reasons for why a once-seemingly-great idea can turn out to be a flop, one thing is for sure:

Going from ideation to creation to delivering results is rarely as easy as it should be.

But you can fix that. You can keep up your momentum, and keep you and your team moving forward confidently toward content creation success.

You just need to take that nugget of brilliance and create a strategy to take it from concept to alignment then to content.

Here are the 9 key things you need in your content strategy to keep quality content flowing.

1. A Content Marketing Goal

Think about your major content marketing goals right now. How does this piece of content align with one (or more) of those goals?

This might seem obvious, but people often overlook this in their excitement about an idea.

Keep a list handy – put a sticky note on your monitor if you need to – of your content marketing goals. Consider lead generation, brand awareness, thought leadership, customer retention, etc.

Now, line up your new content idea with one of those goals, and make sure your team is on the same page about what your desired outcome is.

2. Audience

Will this content appeal to your target audience?

Pull up your target buyer persona and look at where they are in the buying cycle. Make sure this content’s subject, tone, and style will resonate with the target buyer where they’re at.

Take a look at the content you’ve previously created for that stage of the buying cycle. What worked? What didn’t?

Based on your success history, does this new piece of content have a good chance of being successful? Or are you making the same mistakes you’ve made before?

3. The Value of the Content

Any successful piece of content, no matter where it falls in the buying cycle, will have value to your audience. It will solve a problem, provide important information, inspire, or be uniquely entertaining.

Does this new piece of content provide real value to your target audience?

If you’re not sure, you might want to ask someone in your target audience if they find your idea appealing. This honest feedback may give you a more realistic perspective, and it may help you pivot your idea to be more effective.

Here’s a high-value example from BuzzSumo. Their audience is content creators and marketers, especially those using influencer marketing. This piece of content is going to get saved, linked to, shared, and referred to heavily because it’s so incredibly useful to the BuzzSumo audience.

ViralContent.jpg

4. If (and How) the Content Aligns With Sales and Product Management

Is your company launching a new product? Is there a sale coming up? Will this piece of content align with that and support it … or will it conflict or simply appear misaligned?

It’s easy to keep the marketing blinders on when you’re in the throes of content creation exhilaration. But you need to make sure your content strategy is in alignment with the plans of your sales and product teams or it simply won’t perform as well as it could.

Misalignment between marketing, sales, and product management comes through in how customers perceive your brand – and how they receive your content.

5. Your Content Writer

Who will write your content?

Make sure you have this key team member lined up before you pull the trigger on your content project – because scrambling to find them when the clock has already begun ticking toward your deadline is a recipe for disaster.

Because the writing is most often the first real milestone for any content project, not having a writer in place at the outset will hang up the entire project. Get this duck in a row, first and foremost.

6. Research

Will any research be necessary beyond the standard “do a Google search for related articles?” Will your writer need to interview subject matter experts or customers? Will they need to comb through feedback surveys or investigate your competitors?

An experienced content writer knows that research can sometimes be more time-consuming than the writing itself. So consider it in your content strategy – and discuss it with your writer before creating your project timeline.

7. Content Type

What format will your content be produced in? Will this be a blog post, a white paper, an infographic, a video … ? Would it be even better if it was interactive? (Yes, you can make all of those content types I just mentioned interactive!)

When many people think “content marketing,” they think “blog post.” There are so many other content types to choose from – many of which might be so much more effective for your specific audience!

So don’t just stop at creating a blog post. Think about the content types that would work best to convey the subject and engage your audience.

Here’s an example of an interactive video from Vidyard to stir your imagination …

InteractiveVideo.jpg

8. Design, Distribution, and Promotion

How will your audience find your content? How will they interact with it?

This might be the most important step after assigning a writer. How you design, distribute, and promote your content will directly impact its effectiveness. No matter how great your content is, if no one finds it, you just wasted your time and budget.

  • Identify the important keywords your audience will use to find your content, and make sure they are incorporated into the copy.
  • Make sure the design provides a great user experience that is also consistent with your brand.
  • Figure out your promotional strategy. Do you need a landing page? What about social channels, paid media, or an email blast? All of the above?

9. Details, Details, Details

Meet with your team and make sure you have accounted for all the logistics of content creation and publication. Agree on a timeline, make sure all roles are assigned, and secure any additional resources you may need (like coders, software, and photography).

You don’t want to start creating a piece of content only to discover later that you don’t have the resources or personnel to get you across the finish line.

Your Content Strategy Is Now Complete

These 9 steps encompass a basic content creation strategy that any team can use to go from concept to content.

I strongly suggest you document the strategy so you can repeat it for future pieces of content. Throw it into a PDF and keep it in a cloud folder for your team to refer to. If you use a task management tool like Asana or Trello, create a template you can copy and reuse.

Pretty soon, your content creation process will be as easy as falling off a log.

03 Jan 16:51

What So Many Strategists Get Wrong About Digital Disruption

by Freek Vermeulen
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“Digital is coming and it’s coming fast”; “No industry sector is immune to disruption”; “One thing is certain about digital transformation: It will be a big change for your entire organization”; “Digital will disrupt your industry.”

Judging by the headlines and opening lines of recent articles and business books, digital is about to disrupt your industry and you with it – unless you act now (and buy the book).

And, in fact, I don’t disagree – at least not entirely. It would be terribly naïve to assume that nothing in your business will need to change. However, some of the most common beliefs about how this will happen, repeated by conference speakers, self-proclaimed gurus, and consultants, have been oversimplified, misunderstood, or misapplied. In most “normal businesses,” the impact of digital will be different than for digital behemoths like Amazon, Google, and Facebook. Here are four to watch out for.

1. Network effects: The winner does not always take all.

The first common misconception is that in a digital world, the winner takes all. Many business models that make extensive use of digital technology have network-type properties. This means that the more users and content-providers you sign up, the better the business model will work. People flock to Facebook, for example, because most of their friends and family are on it, which in turn allows Facebook to collect a large amount of data about us, and attract advertisers. Given these network effects – as many proclaim – markets get “winner takes all properties”: the largest network will win, crowding out the remaining competitors (like MySpace and Google+). That’s the reason a company like Uber needs to grow big, fast – and why it’s investors didn’t worry about losing money early on. And they are losing money: Uber’s losses in just the first half of 2016 totaled over $1.27 billion.

That logic sometimes holds, but more often it does not. That is because networks are rarely exclusive. Travel to Singapore, for example, and you will see why. Every taxi driver has at least two mobile phones in her window: if a ride comes in on one network, she will click “accept” and turn the other off. Taxi drivers are invariably part of multiple competing networks. Similarly, most riders have at least two apps on their smartphone. When they require a ride, they will quickly check both apps and then use the one where a taxi is available quickest and at the best rate.

It is a misconception to think that network effects inevitably and always lead to a winner-take-all market. Sometimes that may be true, but there are at least as many network-type markets that can easily sustain a variety of players.

2. Complements are not substitutes.

A second misconception about digital disruption is that new technology will inevitably substitute old technology, rendering it obsolete. And indeed, we have witnessed e-mail replace the fax machine, flash memory supersede diskettes, and Wikipedia supplant the Encyclopaedia Britannica. However, industries with perfect substitutes are the exception to the rule; more often than not, digital will offer a new complement, rather than be a substitute. And this leads to a very different dynamic in the market.

Consider my own field of higher education. Many have been proclaiming that online learning will render lectures obsolete, that physical colleges will be replaced by online universities, and that MOOCs will be the new norm. However, this is not what seems to be happening, any more than the invention of the printing press supplanted in-person sermonizing in the 15th century.

Business models and competitive advantages are complex systems. This means that they consist of multiple elements – some of them tangible; some intangible – which interact with one another, meaning that it is their combination that makes it work. In many markets, digital will just add one new factor to the mix or replace one element, but not often all of them. This means that in many businesses, digital technology will complement and alter the incumbents’ existing resources and capabilities, but it certainly won’t always entirely replace them altogether. Therefore, when making strategy, the focus should be on identifying complements, rather than assuming complete substitution.

3. Geography (still) matters.

A third common misconception about how digital disrupt is the assumption that geographic distance has lost relevance since we can now communicate instantaneously with anyone, anywhere around the world. Closeness still matters, however, even though we may not realize it (research tells us, for instance, that people tend to underestimate the value of face-to-face communication).

Consider the management consulting industry. It has been a stable and quite homogeneous industry for many decades. The top firms have been doing pretty much the same type of thing for many years: matching consultants with clients. As a firm, McKinsey finds consulting projects and then matches them with people they have recruited and trained. And that’s how they have always done it.

Recently though, some new companies have figured that, in today’s digital age, there are other and perhaps more efficient ways of matching clients with consultants: online, through search terms, and by building rich databases. Some started digital platforms where supply and demand could match themselves. Others began databases of freelance consultants where they searched for suitable people for the projects they secured. However, most of these upstarts haven’t been able to scale. What they have underestimated is the relevance of human interaction. In consulting work, the ability to read each other’s emotions, intentions, and personalities is paramount, not only in terms of how consultants work with clients, but also for who gets matched with whom. In fact, you cannot successfully do consulting without them.

A company that understood this well is Eden McCallum. They too developed a business model based on a pool of freelance consultants, but rather than rely on a database, a matching platform, or some other digital search function, they understood that in their business – high end strategy consulting – there was no substitute for really knowing people. Therefore, they made the strategic decision to not rely on digital technology, but rather invest heavily in old-school getting-to-know-people: they developed a team of about 20 partners who maintain relationships and interact on a regular basis with about 700 consultants and over 300 major clients. They have opened up offices in London, Amsterdam, and Zurich and were recently highlighted in the Harvard Business Review by Professor Clay Christensen as the prime forerunner of a pending wave of disruption in the consulting industry – albeit with a completely non-digital business model. Eden McCallum shows that not all disruption need to be digital. Digital technology is more likely to make headway in industries and parts of your industry’s value chain where face-to-face interaction is less relevant.

4. Speed? Not so fast.

One of the characteristics of the digital era, people continue to say, is that change is fast. And because the world is changing so fast, companies have to change fast too.

The first part of this claim – that the world is changing faster than ever – is in fact already dubious. Academic research suggests that the rate of change has not been increasing at all. Yet, even if your business is undergoing rapid change, this does not mean your company also has to change rapidly – quite the contrary probably.

If in a fast-changing industry you change equally fast, you’re likely to be jumping onto all sorts of fads. Remember  “Second Life”? The virtual world in which people could live through an avatar? It was supposed to be the next big thing. Dutch bank ING decided to act swiftly, and rapidly assembled a large team of dedicated executives who would explore the new technology, develop applications, and market its products in the virtual world. ING was determined to not miss the boat. But the boat never took off; Second-Life turned out to be a short-lived fad, which disappeared again after a few bleak years; and ING’s big investment came to nothing.

Sometimes it is better to deal with contextual change and uncertainty by not changing at all – at least not immediately – but by giving things time to play out. If your company is in an environment in which new technologies come and go quickly, you may need to slow down rather than speed up. Given the level of market uncertainty, you will really only be able to distinguish the fads from the more substantial developments after some time has passed. It may sound paradoxical, but in an environment of rapid change, sometimes trying to match that speed can backfire.

Digital is changing the nature of competitive advantage in many businesses – just like major technological developments have done before. However, the change will not be uniform across all industries. Digital technology is affecting and will affect different businesses in different ways. Miss these nuances and your strategic decisions could lead you seriously astray.

03 Jan 16:51

How Customers Perceive a Price Is as Important as the Price Itself

by Sandeep Heda
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Price wars have broken out in consumer industries around the world. Retailers such as ALDI and Walmart have used price to position themselves against traditional competitors in their markets, pinching margins all around. Financial asset managers have been out-price-cutting one another in exchange-traded funds in a bid to gain market share. Major U.S. telecommunications carriers now compete fiercely on price as they try to win new customers. And airlines are gearing up for a price war on trans-Atlantic routes as some low-cost carriers plan service between the U.S. and Europe.

These companies are reducing prices because they believe that will boost their perceived value to consumers. As pressure intensifies to reduce prices, either by cutting the list price or offering a discount, managers may act hastily, without the same rigor they apply to investments elsewhere, such as capital deployment or product enhancements.

But when managers reduce prices, a fundamental question sometimes goes unasked: Will customers notice and respond as expected? All too often they don’t. That’s because how customers perceive the price is as important as the price itself. Even if customers fail to notice specific price moves in isolation, companies should make sure customers have a good sense of how the firm’s prices compare to those of competitors. And most companies—luxury purveyors aside—want to be perceived by consumers as having lower prices, relative to competitors, than they in fact do. A store with the same prices as a competitor’s would like to be seen as having lower prices; and a retailer with average prices that are 10% higher than a key competitor’s would love to be perceived as being only 5% higher.

There are clear winners and losers in the battle to manage price perceptions in order to get this so-called “pricing credit” from consumers. Bain & Company and ROI Consultancy Services (formerly PollBuzzer) recently surveyed almost 2,200 consumers in Atlanta and Washington, DC, about the prices at eight retail chains carrying groceries. We found that retailers can get either more or less credit for their pricing than actual shelf prices would suggest.

For example, one retailer’s reputation as an upscale discounter, built through its store and product design, has given consumers the perception that it charges a price premium, when in fact its prices run slightly lower than the average in the two cities. Its pricing strategy does not mesh with its overall proposition to customers, with the result that the retailer does not get the pricing credit it deserves. One option for the retailer would be to raise its prices slightly, since customers have already baked the (incorrectly) perceived premium into their shopping decisions.

The intense competition on pricing that pervades many industries makes consumer perception more important than ever. Aggregator and comparison websites have brought greater price visibility and ease of product comparison to banking, insurance, hotels and other consumer markets. It’s also easier for consumers to split their spending among different providers, depending on which firms offer the best perceived price-value equation. Bain’s grocery survey shows that half of consumers’ monthly spending goes to stores that are not the consumer’s primary store.

Managing price perception, not just pricing structure and actual price points, thus has become a critical capability for firms in consumer markets.

Improving perception

How can companies get more credit from consumers for their pricing, so they can build traffic and earn loyalty?

Companies can choose among tactics in four categories: offering lower prices, shouting out those prices, giving great deals, and tailoring the experience. Examples of tactics within these categories include price-point policies (such as ending a price with the digit 9), in-store or website signage, coupons, and a good/better/best assortment mix. The right combination of tactics, of course, depends on a company’s sector, strategy, and proposition to customers.

A traditional grocer that caters mainly to higher-income customers, for instance, needs to have a broad assortment and high perceived quality. It would focus on very targeted moves to align price perception with its high-end value proposition, including strategic promotions and signage, rather than on tactics that would significantly change the proposition, such as price matching or coupons.

A discount grocer, by contrast, typically uses private-label goods to influence price perceptions. Since its customers are less sensitive to product quality and breadth, the discounter can offer a narrower assortment, which allows it to present a lower-price and lower-end image in stores.

To determine which of these tactics to deploy, a company should first gain a deeper understanding of its current price position relative to consumers’ perceptions. Checking its prices against competitors’ prices on comparable items will reveal actual price gaps. Then, determining consumers’ perceptions will show whether and how they see those price gaps. The key survey techniques involve asking consumers to select a couple of competing providers with whom they shop, and gauging how they view each provider’s pricing on the relevant products. By aggregating hundreds or thousands of responses, a distinct pattern of price perception for each company will emerge.

The next task is to identify the factors that have the strongest influence on perception. These can be gleaned through in-store visits and surveys asking consumers about the provider’s signage, coupons, and so on. Again, aggregating responses allows managers to see how consumers perceive the company’s performance in each tactic relative to competitors. If consumers perceive a chain’s prices as lower than they really are, the analysis can home in on the tactics that most effectively drive that perception.

Data on the factors influencing perception is the foundation of a plan to build an effective price image, a plan that will likely include a mix of direct price changes and indirect tactics like rewards programs.

The experience of a European discount apparel retailer illustrates the power of a disciplined price-perception program. Facing stiff competition from other fashion discounters, the retailer fought back by slashing prices across the board, but customers largely didn’t perceive the price change, and the retailer didn’t achieve the anticipated boost in sales volume.  It decided to step back and take a more nuanced approach. In a process similar to the survey approach described earlier, the retailer analyzed its prices relative to competitors and customer perceptions and discovered that consumers incorrectly perceived that the company had higher prices than its key competitor. One reason was that the retailer offered a broader range of prices than its competitors, which confused people. Also, the company discovered that customers were more price sensitive about certain product categories, like children’s T-shirts.

The retailer defined new “roles” for product categories, based on customers’ perceptions of products, and priced according to these roles; for example, some products were assigned the role of driving foot traffic to stores, while other products played the role of enhancing margins. The retailer refined communications about pricing to make them consistent with the price perceptions it sought, and it reduced the number of price points. As a result, the company achieved its desired “price image” as a value retailer, developed a more strategic approach to pricing, and increased revenues by roughly 1%.

As this retailer discovered, there is a lot more to pricing power than just adjusting prices. Directing investments to lower prices may not supercharge sales. Worse, it might backfire if consumers’ perceptions don’t give the company sufficient credit for its price position. More indirect tactics, such as adjusting signage and using private labels, on the other hand, may have an outsized impact on pricing perception—a proven route to profitable revenue growth.

03 Jan 16:50

Easy Ways to Start with the Right Marketing Metrics

by Laura Patterson

At a time when marketers are being asked to be more accountable, more is being measured. The challenge, however, is to find the right things to measure, i.e., the marketing metrics that improve and prove the value of your investments. Read on for a primer on how to do this successfully.

Marketing Metrics Come in Three Primary Forms

Measurement typically fall into three categories: financial, infrastructure and behavioral. Financial metrics are things such as revenue growth and really serve as the verdict for how we’re actually performing. But they don’t necessarily tell us how we got to where we are or what to do going forward. Infrastructure metrics are often related to time such as response time, sales cycle time, and problem resolution time. Behavioral metrics refer to measures associated with customer and prospective customer engagement.Marketing Metrics

Behavior metrics are often linked to both financial and infrastructure performance; capturing these measures regularly can inform us as to why financial performance is rising or falling – you can’t make a profit without customers. These metrics can also confirm the impact of degradations in infrastructure performance which could turn customers away.

Focus on Behavioral Metrics

There are a vast number of behavioral metrics you can measure. If you’re new to behavioral metrics, we recommend starting with these four:

  1. Consideration Conversion Rates to Purchase – this measures what percentage of prospects make a purchase. If 100 prospects within a given time frame are in the consideration phase and five of them buy, the conversion rate is 5%. This metric can further be reduced to first time or repeat conversions. When you develop marketing strategies, using this metric serves as a gauge for overall effectiveness in driving purchasing, although it does not inform us as to why someone bought. The next metric addresses this.
  2. Conversion Rate to Qualified Opportunities – this measures how many sales are made from various tactical initiatives–advertising, promotion, PR, down to the finest details, which mailing, which banner, which ad, and so on.
  3. Average Cost of Customer Acquisition – this measure speaks for itself; out of all the ways in which we get paying customers, what is the cost of capturing them, on average? This metric can be an effective way to dive into a deeper market analysis. If the average cost is going up, why? Can it be attributed to higher capital or labor investment in the effort? Higher marketing cost because of increased competition? Both?
  4. Lifetime Value – this measures the future cash value in today’s dollars of a particular customer. We’ve pretty much come to accept that it is much more profitable to keep and grow repeat business from existing customers rather than having to go out and constantly replace them with new ones.

While tracking your own numbers is a great start, it’s important to put them in context. Knowing your company’s conversion rate has increased 30% from last year may sound good but you won’t know for sure without context. It might be that the industry average conversion rate has increased 80%, so while the company is doing better, the additional industry information would suggest you may have lots of opportunity for improvement.

For organizations that are data challenged, setting performance targets for your metrics can be difficult. One option is to use averages as a starting point.

Use Industry Averages as a Starting Point for Your Metrics

Averages can serve as a good guidepost and allow for easy categorization. Think about the teams of actuaries at insurance companies who use them to set rates. Or the analysts that comb through data to determine batting averages. If you don’t have any internal metrics, we suggest you use industry averages initially to help set expectations and establish your baselines. Set measurable objectives for each of your initiatives that will have the greatest impact.

Various organizations publish studies that provide insight into averages. Some well-respected sources for Marketing benchmarks include CMOSurvey.org, CMO Council, Demand Metric, Forrester, IDC, ITSMA, and our Marketing Performance Benchmark Studies.

Measure and Report On a Regular Basis

Once you have gained agreement from the management team on metric priorities, established your metrics and measured your results, make sure you have a process for learning from and communicating them. A Marketing Dashboard is one part of this process. Learn more about Marketing Dashboards.

03 Jan 16:50

Wonder Material: Hempcrete is Sustainable, CO2-Negative, Fast-Growing, Fire-Resistant and More

The development of hemp in the United States has been ridiculous, because idiot politicians thought it was the same thing as marijuana (it's not) and banned it back in 1970 as a Schedule 1 drug. In actuality, though hemp is a variety of Cannabis sativa, it has less than a 0.3% concentration of THC, the psychoactive ingredient that you need to get stoned. (Marijuana has a 5%-plus concentration.)

Nowadays, thankfully, open-minded materials scientists and builders have discovered hemp's value as an eco-friendly building material. As host of the UK's Grand Designs TV show for nearly two decades, British designer Kevin McCloud has seen his fair share of building techniques and materials. Here he explains why he finds hemp's benefits unmatchable:

Here is how hempcrete can be integrated into established building methods:

While the video above speaks of using recycled plastic forms, the DIY'er can create their own forms out of plain ol' OSB, and you can also see here how easy the stuff is to mix:

Here's LEED Green Associate Joni Lane giving a TED Talk about how hempcrete is a vastly more healthful building material than the conventional alternatives:

And here's Clarke Snell, former managing director of the Nauhaus Institute explaining how walls made of hempcrete deal with water:

By the bye, in the second-to-last presentation above Lane references the illegality of hemp manufacture in the U.S. Thankfully things have begun to change since then; according to the National Conference of State Legislatures, as of August of last year "at least 16 states have legalized industrial hemp production for commercial purposes and 20 states have passed laws allowing research and pilot programs." Next we have to wait for federal law to catch up; the Industrial Hemp Farming Act of 2015, a bill introduced two years ago, appears to have stalled in Washington.

Our President-Elect has stated he'd like to do away with numerous regulations on businesses. Let's hope that hemp shows up on his radar.


03 Jan 16:49

4 Must-Haves for Any Digital Business Set On Booming Growth

by Lucas Miller

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The Internet is a massive place.

How massive, you ask? Well, as of 2014, Google had indexed an estimated 10 to 15 million Terabytes (TB) of data. To better put this kind of technical mumbo-jumbo into perspective, one TB equals about 1,000 Gigabytes (GB) of digitized information.

Pretty crazy, huh? That’s not even the half of it, though …

Take into account the fact that 16 years of video is uploaded to YouTube on a daily basis, and the expansiveness of the World Wide Web is nothing short of jaw-dropping.

Anyway, the Internet is gigantic—you get the point.

Because of this, though, for digital businesses set on big-time growth, it’s not only spacious, it’s downright scary. And while the sheer size of the Internet might very well indicate never-before-seen potential, it also means that it’s incredibly hard for online companies to see success …

No worries—below, I’ve listed four must-haves for making it happen.

By no means do they contain the entirety of what’s needed to make it big, but if you’re able to do each of them at least moderately well, you’ll find yourself lightyears ahead of the competition:

1) Buyers Need to Know You Exist

Basically, your business needs visibility—makes sense, right?

It doesn’t matter if you’re pushing products, services or downloadable items, if prospective buyers haven’t heard of you, how on earth are they going to hand over their hard-earned dollars?

To increase visibility, consider each of the below marketing methods:

      • Social Media Facebook, Twitter, Instagram and LinkedIn—they’re all fair game.
      • Content Marketing Blogging is big for a reason—great content attracts buyers.
      • Digital Public Relations If your audience is small, grow it with the help of influencers.
      • Search Engine OptimizationVisibility means building rapport with search engines.
      • Paid Advertising For relatively little money, earn game-changing results.

Let’s talk about that last one for a quick minute, shall we? Don’t get me wrong—organic traffic is ideal, but even in a space as unfathomably large as the Internet, overcrowding is a problem …

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Whether it be on a social network or search engine, this is where the “pay-to-play” mentality comes into focus. Allowing businesses to produce immediate results, it’s no wonder pay-per-click specialists like DigiMar refer to the practice as marketing’s “speedy and expansive” solution.

Whatever you decide to do, actively cover all of your marketing bases to increase visibility.

2) Conversion Can’t Be Overlooked

In the world of online marketing, the term “conversion” refers to transforming site visitors into paying customers. It seems simple enough, but it’s something next to nobody is doing well …

From homepages to landing pages, it’s one thing to attract visitors, it’s yet another to get them to buy into what you’re selling. To do this, make certain you’re doing each of the following:

  • Headlines To convert site visitors, yours must be both clear-cut and benefit-driven.
  • Supporting Headline Here, provide context as to the message your headline transmits.
  • Hero Image or Video The human brain processes visual information faster than text.
  • Customer Testimonials The more social proof you provide, the better off you’ll be.
  • Mention Core Benefits – Instead of selling a mattress, sell a good night’s sleep.
  • Call-to-Action If you don’t ask for people to buy, they won’t—it’s simple, really.

You’ve heard of Princeton’s famous KISS principle, haven’t you?

Unfortunately, it has nothing to do with the popular, makeup-drenched 80s band …

KISS stands for “Keep It Simple Stupid.” Though not always applied directly to marketing means, you’d be wise to keep any and all conversion-focused materials simple.

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Easier said than done, practice is what will ultimately lead to perfection.

3) Order Values Must Be On the Up and Up

As an online entrepreneur, it’s your job to get the most out of each and every customer.

And no, before you bludgeon me over the head with a billy club of nasty comments, I’m not suggesting you swindle site visitors. What you should do, however, is build a few well-timed up-sells or cross-sells into your brand’s ever-expanding sales funnel to maximize customer value.

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For example, let’s say that you’ve got a knack for creating one-of-a-kind Halloween costumes.

Instead of simply selling all-inclusive packages, cross-sell costume upgrades, additional makeup kits and professional-grade wigs to help buyers improve their looks come the big day.

Regardless of entrepreneurial niche or area of expertise, by so doing, you’ll more regularly increase order values. After all, it’s “Booming Growth” we’re after with these strategies.

4) Repeat Business Means More Money Coming In

Thus far, we’ve covered three key e-commerce items:

      • Visibility
      • Conversion
      • Maximizing Orders

Things get better, though …

The real beauty behind each of the first three points? When given the time and attention they deserve, they keep customers coming back to you on a routine basis—automatically.

sales-funnel

That being said, to further increase the likelihood of customers coming back for more time and time again, offer mouth-watering sales promotions, build and maintain authentic relationships with buyers, and when the moment is right, make them related offers they can’t pass up.

Be Honest—Are You Missing Anything?

For this final subheading, I chose my words carefully: “Be Honest.”

If you’re anything like me, when it comes time to take a good, hard look at each phase of the Internet business you’re building, it can be hard to admit when there are clearly holes to fill

Luckily, if it’s a good starting point you’re in need of, use this post as a checklist of sorts.

Yes, the Internet is humongous, but that’s no reason to feel as if your online shop can’t bring in big money—regularly call upon the powers of the above, four-faceted list to make it happen.

03 Jan 16:49

18 Sales Email Templates Perfect for the New Year

by afrost@hubspot.com (Aja Frost)

The beginning of the new year is a fantastic time to reach out to buyers. Your prospects are focused on starting fresh, driving change, and setting yearly goals — if you reach out with a relevant suggestion or compelling value proposition, they'll be primed to respond. Double down on this effect by referencing the holiday in your message.

Adding some humor and levity to your sales emails will improve your response rates as well. Most messages are relatively cut-and-dry, so prospects are usually surprised and impressed by anything with a little personality.

To be clear, there are many ways to use the New Year as an ice-breaker to re-engage with a client, which is why we included the messages below.

Use the New Year-themed sales email templates below to connect, follow up, and close the loop with prospects — and start 2020 off strong.

Happy New Year Email Templates

Prospecting email templates

These prospecting email templates will start off your year of prospecting on the right foot.

1. "Don't drop the ball ... "

Why this works: To motivate your prospect to respond, remind them of a timely opportunity and offer your expertise.

[Prospect name], how are you handling [challenge]?

Hi [prospect name],

The ball might've dropped in Times Square, but I'm guessing you don't want to drop the ball on [initiative, recent company announcement, industry shift, likely challenge].

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I have a few suggestions on [improving/addressing business challenge]. Are you free on [date and time] to discuss them?

Best,
[Your name]

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2. "I can't do this alone ... "

Why this works: The self-deprecation will give your recipient a chuckle and make you seem more human and relatable. In addition, they'll appreciate your focus on their goals.

[Prospect name], I need your help

Hey [prospect name],

This year, I'm resolving to help you [solve X challenge, accomplish Y goal, pursue Z opportunity]. Oh, and [work out more often, eat less dessert, get organized] … but I'm less confident about that one.

Will you help me keep at least one of my resolutions? If you're available on [date and time], I have X suggestions that may help in [business area].

Thank you,
[Your name]

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3. "New year, new you ... "

Why this works: This email is short, easy to read, and engaging. If your prospect has already started thinking about the trend you mention, they'll be impressed by your timing. If they haven't started thinking about it, they'll be eager for your help and insights.

New year, new [prospect's company]?

Hi [prospect name],

Thanks to [trend], [business area, strategic focus] will be a major focus in 2020 for companies of [prospect's size] in [prospect's space]. How does [prospect's company] plan to capitalize on this change?

Best,
[Your name]

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4. "Congratulations ... "

Why this works: Show your prospect you've done your research by referencing company news. And because your prospect simply needs to say "yes" or "no," responding will feel nearly effortless.

Cheers to [prospect's company]

Hello [prospect name],

Most people are still toasting to the new year, but I'm lifting a virtual glass to [prospect's company] in honor of [recent announcement].

giphy (3).gif

Typically, businesses who do X [struggle with A, pursue B next, double their return by investing in C, minimize risk with D strategy]. Have you considered this approach?

Best,
[Your name]

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5. "Time is of the essence ... "

Why this works: The cheeky subject line will entice your recipient to open the email — and its helpful, relevant, non-pushy contents will prompt them to respond.

[Prospect name], I've waited all year to send you this

Hi [prospect name],

To be fair, since it's [date] 2020 I've only waited X days … But when it comes to [likely challenge, opportunity, industry shift], time is of the essence.

How is [prospect's company] planning to [deal with challenges, capitalize on X opportunity, respond to industry shift]? This [blog post, podcast episode, white paper] has some interesting tips.

Cheers,
[Your name]

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6. "First of your kind ... "

Why this works: Your prospect is far likelier to respond to an offer to help than a request for their time. Once you've added value to their life, they'll be eager to learn how your offering can help them even more.

[Prospect name], I want to be the first ...

… to wish you a Happy New Year, that is.

Now that we've gotten the last scraps of confetti out of our hair, I have a serious question. Would you be interested in [an introduction to a helpful person, a feature in a post I'm writing on X, a recommendation on achieving Y]?

[Your name]

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7. "Proton pack weapon not included ... "

Why this works: Who doesn't love a Ghostbusters reference? This creative email shows off your personality while demonstrating what you can offer.

 

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I might not have a proton pack weapon, but I do have a few suggestions for [solving pain point]. Is that a challenge [prospect's company] is currently dealing with?

[Your name]

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8. "Most expensive breadsticks ever ... "

Why this works: The unexpected subject line is guaranteed to boost your open rate. And the punch line is memorable, which means your prospect will be thinking about your email all day.

Would you pay $400 to eat at Olive Garden?

Hi [prospect name],

That's how much the restaurant's Times Square location charged people to attend its New Year's Eve party last year.

But whether you ate lots of pasta this New Year's or settled for good old-fashioned libations, I'm sure you're thinking about how to [solve X likely challenge]. I have some ideas — want to hear them?

You can book a meeting with me here: [Link to meetings tool.]

- [Your name]

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9. "Let the good times roll..."

Why this works: Highlight a success your prospect has had over the past year and use it as a conversation starter. Who doesn't like talking about their wins? This is a great way to engage and be top of mind as they begin their year.

You're on a roll, [prospect name]

Hi [prospect name],

I've been following you on LinkedIn for awhile, and couldn't help but notice all of the incredible strides your company made this year.

I have some ideas for how you can capitalize on your momentum in the new year. Are you free on [date and time] to discuss them?

Best,
[Your name]

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Follow-up email templates

Is your prospect ghosting on you? Use these follow up email templates that are sure to get a response.

1. "If at first you don't succeed … "

Why this works: Your honesty will impress the buyer and help you earn their trust. Even if they're not currently dealing with the pain points you've included, they may be impressed enough with your straightforward approach to respond regardless.

Turning the page

Hi [prospect name],

I've reached out to [prospect's company] a few times over the past [X months, year] but haven't heard back. What I talked about clearly didn't resonate. In honor of the new year, I'm refocusing on your needs.

The companies I work with in [prospect's industry] of [prospect's size] typically struggle with these challenges:

  • [Challenge #1]
  • [Challenge #2]

Are you experiencing either of these?

Best,
[Your name]

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2. "Looking forward ... "

Why this works: "Prediction" articles are a dime a dozen around this time. Find one that applies to your prospect's industry, geographic territory, product space, target demographic, and/or internal policies and pass it along. They'll be grateful for your helpfulness, likely leading to an opportunity to present your solution down the line.

[Prospect name], have you seen this?

Hey [prospect name],

I came across this post on [2020 predictions for prospect's industry or market] and thought of you. The author thinks [X event] is highly likely — does [prospect's company] have a plan in place for [responding to, minimizing the impact of, profiting from] this change?

Best,
[Your name]

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3. "No sales pitch, guaranteed ... "

Why this works: If you've been unable to get a prospect on the phone, this template may do the trick. The unexpected approach will surprise them and pique their interest. In addition, they'll feel like you're doing them a favor rather than the other way around.

I have an interesting New Year's Resolution

Hi [prospect name],

In honor of the new year, I'm doing something that might sound crazy: I'm giving my time away for free.

The last time we spoke, you [expressed concern, demonstrated interest] in [business area related to rep's expertise]. If you want a no-strings-attached [15-minute, 20-minute, half hour] consultation on [rep's area of expertise], just [book a slot on my calendar, respond with your preferred date and time] — no sales pitch, guaranteed.

There's no catch — I'd rather commit to this resolution than try to exercise more (and fail for the third year in a row).

Looking forward to discussing [how to solve X, drive Y results],

[Your name]

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A note of caution: Don't bait-and-switch anyone who takes you up on the offer. Buyers will get annoyed if you turn your consultation into a sales pitch — and rightfully so. Once you've spent 15 to 30 minutes helping them, request another meeting to talk about your product's ability to help them with the same goals.

4. "I'm not giving up on you ... "

Why this works: It cheekily references the number of people who abandon their resolutions a few months out — then shows you've got more stamina.

80% of people do this by February

[Prospect name],

Can you believe most resolutions are abandoned by the second week of February?

I'm not giving up on you so easily. Let me know if [addressing X, doing Y] is still a priority in Q2.

-[Your name]

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5. "It's not you, it's me... "

Why this works: We can all admit we've been turned off by receiving overly sales-y messages in the past. This follow-up template recognizes this, and offers a more human approach.

Don't you hate when this happens?

[Prospect name],

I'm sure your inbox is jam-packed, so I wanted to make sure we didn't lose touch.

I would love to follow up on our conversation from last week to discuss how I can support your 2020 business plans. Are you available at [date, time]?

-[Your name]

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Breakup email templates

If your prospect just doesn't seem interested, send them a message using a breakup email template.

1. "Not just because it's New Year's ... "

Why this works: This classic line from When Harry Met Sally will elicit a smile from your recipient. Meanwhile, hearing this is their last opportunity to work with you will incite some much-needed urgency.

Times are changin'

Hello [prospect name],

I promise I'm not just reaching out because it's New Year's ...

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I'm reaching out to ask if you're still interested in [driving X results, investing in Y business area, fixing Z issue]. If this is no longer a priority, do I have permission to close your file?

Thanks,
[Your name]

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2. "Reevaluating your strategies ... "

Why this works: This short and sweet message gives buyers one last chance to respond before you professionally move on.

[Prospect's company] 2020 [business area] plans?

Hi [prospect name],

As [prospect's company] enters the new year, you might be reevaluating your strategies for X. Are you still interested in discussing [solutions to/opportunities in] X for [prospect's company]?

If not, please let me know so I can stop reaching out.

Best,
[Your name]

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3. "We don't talk anymore ... "

Why this works: Playfully put yourself back on the buyer's radar without guilt-tripping them.

It's been a while

Hi [prospect name],

We don't talk anymore, like we used to … But it's a new year, and I'm ready to try one last time.

When we last spoke, we discussed [pain] and how [product] could help [drive X results]. Are you still interested in continuing that discussion? If not, please let me know so I can stop playing this song.

Best,
[Your name]

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4. "I'll be here when you need me... "

Why this works: Sometimes it's ok to be a rebound. Let your prospect know you'll be there when they're ready to proceed.

Ready when you are

Hi [prospect name],

I'm sure your new year has gotten off to a busy start. 

When you're ready to discuss a solution for [problem] to help solve [result], I'll be here to help. 

Best,
[Your name]

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These templates will make it easier to hit your first quota of the year. Now that deserves a toast.

Looking for fresh real estate email templates for the new year? Look no further.

03 Jan 16:49

Our Top 10 Blogs of 2016 at a Glance

by Elaine Ip
best marketing content 2016

Author: Elaine Ip

Every time the new year comes around, I clean. That’s not to say I don’t clean on a regular basis throughout the year, but there’s something about getting a fresh start that makes you want to clean all the nooks and crannies that get ignored on your busiest days (which, let’s face it, is almost every day). Plus, I know future me will appreciate it when those busy days roll around again in the new year.

During my annual deep cleanings, I find tons of “buried treasure” hiding in plain sight, under piles of other stuff. It reminds me a lot of the great content I’ve seen and haven’t seen. With so much information out there, it can be hard to keep tabs on what to keep tabs on throughout the year.

At Marketo, we get the opportunity to work with some of the brightest minds in our industry—both within and outside of our company—and our content team works hard to bring you their insights. We measure each and every one of our assets to continually optimize our editorial calendar and provide you with more of what you want—blogs being one of them. We look at metrics like page views, organic traffic, time-on-page, shares, engagement, and conversions to understand which topics and blogs are the most relevant for our audience. However, because we publish our blogs every weekday, we understand that it can be hard to read every piece we publish.

To make things easier, I’ve compiled a Cliff Notes version of our top performing blogs. Just like Cliff Notes, this is meant to be more of a guide than an in-depth overview, so be sure to click through to read the full blog if you’re interested!

Here’s a list of our top 10 performing blogs for 2016, brought to you by me and unsuspectingly chosen by you:

Measure the ROI of Digital Advertising Beyond Revenue Impact

ROI of digital ads
Measure the ROI of Digital Advertising Beyond Revenue Impact

When it comes to measuring ROI, many of us think about the numbers that impact the bottom line—pipeline, opportunities, and revenue won. However, most sales don’t happen overnight and, as such, late-stage metrics take time to mature. Even if you’re a consumer marketer, people do research on your company and products long before they decide to make a purchase.

For digital marketing especially, your buyers are perusing different channels to make informed decisions on whether they should purchase from you, let alone click on your ad. To understand their buyer’s journey and prove your ROI, it’s important to track early-stage metrics as well—brand impressions, impressions, website visitors, and downloads—to gauge the early impact of your campaigns and course-correct if needed. Read this blog from Mike Tomita, Director of Online Marketing at Marketo, to learn how to track important soft metrics for three popular digital ads: mobile video, native, and programmatic.

You’ve Got Mail: 5 Things Your Subject Lines Are Missing

email subject line tips
You’ve Got Mail: 5 Things Your Subject Lines Are Missing

While it’s true that you shouldn’t judge a book by its cover, your subscribers are definitely judging your email from its subject line. Finding the perfect subject line to use in your email can seem downright impossible, but luckily, there’s a method to the madness. Mike Madden, Demand Generation Program Manager at Marketo, shares five tried-and-true tips on how to improve your subject lines and ultimately your open rates: front-load the important words, ask a question, use numbers, get personal, or use rhymes, alliteration, and puns. Why? You’ll need to read his blog to find out!

3 Strategies for Maximizing Email Deliverability

improve email deliverability

3 Strategies for Maximizing Email Deliverability

Did you know that worldwide, 21% of permission-based emails get sent to a spam folder or go missing? This means that for every five emails you send, one of them never even gets to your subscriber due to spam filtering and low engagement. What’s an email marketer to do against these unfavorable odds? Here’s another great blog from Mike Madden that explains how you can improve your email deliverability. His recommended tactics? Set low bounce thresholds to keep your lists fresh, don’t ever buy lists, and stagger your email sends based on engagement.

10 Ways to Engage Your Audience with Interactive Content

interactive content
10 Ways to Engage Your Audience with Interactive Content

Content is king, but engagement is queen. To reach your audience, you need to provide them with educational, interesting, or entertaining content, which is affected by the format it’s in. Interactive content is a great way to engage your audience, presenting information in an easily digestible way. Katherine McAdoo, Senior Web Designer at Ion Interactive, shares 10 different ways that you can turn your content interactive. These formats include quizzes, rating systems, assessments, incentives, animations, visualizations, sneak peaks, tabs, charts, and carousels. Check out her blog to learn how you can transform your content into these interactive formats.

5 Lifelong Business Lessons I Learned from Nordstrom

life lessons from Nordstrom
5 Lifelong Business Lessons I Learned from Nordstrom

If you’ve ever shopped at Nordstrom before, you may have realized how it’s the epitome of world-class customer service. There’s even a book on this, titled The Nordstrom Way to Customer Service Excellence: The Handbook For Becoming the “Nordstrom” of Your Industry. So it’s no surprise that we have a lot to learn from the department store, especially when you consider that marketing is becoming more customer-centric.

In this blog, Alexandra Nation, Solutions Consultant at Marketo, reveals five important business lessons that she learned during her time working for the retailer. These values have stood the test of time and stick with her to this day:

  • Praise your employees and colleagues publicly and often
  • Focus on the customer and the money will follow
  • Balance great products with great people
  • Act like it’s your name on the door
  • Lead by example

How Brands Can Create Lasting Relationships on Social Media

create lasting relationships on social

How Brands Can Create Lasting Relationships on Social Media

Connecting with people on social media as a brand is no different than connecting with them as a friend, family member, or colleague. Okay, so maybe it’s a little different (you probably don’t want to see my cat memes every day), but the concept is the same. Marketers, just like people, should use social media to first and foremost build relationships. Marketo’s Senior Social Media Manager, Lisa Marcyes shares four ways to create lasting relationships with your audience on social media: establish your voice; initiate, respond to, and contribute to conversations; share relevant content; and address both positive and negative feedback.

4 Reasons Why Marketing Automation Fails

why marketing automation fails

4 Reasons Why Marketing Automation Fails

If the picture above seems all too familiar, you’ve probably experienced an epic fail at least once in your life. Was it a marketing automation fail? Marketing automation empowers marketers to connect with their potential and existing customers on a 1-to-1 basis—at scale. If that sounds too good to be true, consider that there are entire companies that exist solely to provide the most sophisticated marketing automation platform to support this (shameless plug). But even with the right tools, marketers still need to have a sound strategy in place. Jamie Lewis, Principal Solution Consultant at Marketo, reveals four common pitfalls he’s seen when it comes to marketing automation, which include not treating your audience as individuals, not using behaviors to target your audience, not designing your campaigns to meet business objectives, and not being on the right channels (i.e. the ones your buyers are on).

5 Ways to Boost B2B Sales Through LinkedIn Social Selling

social selling on LinkedIn
5 Ways to Boost B2B Sales Through LinkedIn Social Selling

With more than 400 million members in over 200 countries and territories, LinkedIn is an effective way to reach an audience with a business mindset. However, this doesn’t only impact B2B social media marketing. LinkedIn is also a great channel for sales teams to drive revenue with.

Russell Banzon, Demand Generation Manager at Inkling, covers five ways that sales can use LinkedIn for social selling. These methods include connecting with prospects and engaging with their content, leveraging shared connections for a warm introduction, using their Sales Navigator tool to build lead lists for your target accounts, creating CRM contacts using a lead’s LinkedIn information, and measuring your success with their Social Selling Index. Interested in putting these strategies to work? Read Russell’s blog for the low-down.

7 Marketing Automation Predictions: A SiriusDecisions Roundup

marketing automation predictions from SiriusDecisions
7 Marketing Automation Predictions: A SiriusDecisions Roundup

Our blog provides recaps for some of the biggest industry events to provide you with key takeaways from ones you couldn’t attend or to serve as a refresher for the ones you did. The annual SiriusDecisions Summit was no different, and one particular session that generated a lot of buzz was Marketing Automation: What the Future Holds.

Charm Bianchini, Senior Director of Marketing at Marketo, attended the summit and covered this session in detail, sharing SiriusDecisions’ seven predictions for the future of marketing automation. The common themes? An increased focus on the buyer’s journey, rising expectations for personalization, a shift to data-informed programs and predictive modeling, advanced analytics and attribution, and marketing automation as the foundation of an organization’s tech stack.

Get Scrappy: 7 Tips for Smarter Digital Marketing

scrappy digital marketing
Get Scrappy: 7 Tips for Smarter Digital Marketing

I think it’s safe to say that we could all use some tips on how to get things done with resource or budget constraints or, as Nick Westergaard puts it, “get scrappy.” As a strategist, speaker, author, and educator, Nick definitely knows how to do more with less and is well-suited to explain how to create a smarter digital marketing strategy.

In his blog, he answers the most common questions that were asked during his webinar, Get Scrappy: Smarter Digital Marketing for Businesses Big and Small. Some of his insights? Starting with a strategy is an important first step for all marketers, but the longer the sales cycle, the longer we’re responsible for keeping buyers engaged throughout their customer journey, which is where scrappy marketing comes into play. At the very minimum, scrappy strategies need to answer the why, what, when, where, who, and how for each of your audiences. Additionally, look beyond other industries for inspiration and leverage one of your biggest assets: your people. For the rest of his answers, read his blog to learn how to establish your top digital marketing priorities, his best social media tips, and more.

That wraps up our top 10 blogs for 2016. I hope you enjoyed this list and dive deeper into each of the blogs above. Did we miss any of your favorites? Share them below!

marketo-summit-december-promotion

 


Our Top 10 Blogs of 2016 at a Glance was posted at Marketo Marketing Blog - Best Practices and Thought Leadership. | http://blog.marketo.com

The post Our Top 10 Blogs of 2016 at a Glance appeared first on Marketo Marketing Blog - Best Practices and Thought Leadership.

03 Jan 16:48

Three Ways to Wow B2B Buyers with Account Support

by Gerhard Gschwandtner
According to the 2016 AskForensics B2B Sales Analysis, 64 percent of buyers ranked account support as the top influencer when making a purchase. These results are based on data collected between 2013 and 2015 from 137 Fortune-level accounts, totaling more than $2.3 billion in total contract value. As B2B purchases tend to be long-term and complex, the relationship is not only about an individual sale, but also about ongoing usage and consistent quality. Buyers want to deal with people who can guide them through the sales process and champion their needs with the vendor.
03 Jan 16:48

4 Lethal Startup Pitfalls for CEOs and Boards to Avoid

by Lisa Fernow

The other day I was listening to a colleague describing the difficulties one of his portfolio company CEOs was having with their Board. The CEO wanted to go one way. The Board wanted to go another way. If they didn’t resolve their differences the CEO would have to go. Nobody wanted that.

It occurred to me that these tensions aren’t unusual. In fact, they are common and can become startup pitfalls.

Since many of you who thrive on innovation may at this point in your careers be considering starting your own companies―or joining a startup board―I thought it might be useful to get some advice on what can go wrong between CEOs and their Boards so you can avoid these common startup pitfalls.

I turned to a colleague who has seen these issues from multiple sides. In his 30+ year career, Robert Bismuth has served as CEO of five startups, as a Board Observer or Board Member of seven startups plus four major industry consortiums, and advised about a dozen others. He currently serves as VP of Business Development and Strategy for STOIC, a software company based in Palo Alto, and as Director General of its hardware spinoff, SAS Fermat, based in Paris.

Bismuth was kind enough to document some of his favorites pitfalls below. Names have been omitted to spare all concerned.

Four Lethal Startup Pitfalls

  • “Helping” the CEO
  • Controlling the “Baby”
  • Cult of Personality versus Cult of Vision
  • Dilution, Crushing and Crafting the Exit

“Helping” the CEO

Frequently members of a board will decide to “help” a CEO in her or his decision making, hiring, strategic direction, sales pipeline, brand, technical development, or any of the multiple dimensions all startups struggle with as they establish themselves. Sometimes help is truly needed―even asked for. Sometimes it is not.

For example, a board may decide that a sales pipeline needs to be more robust and the issue is recruiting a VP of Sales to help the CEO develop customers. If the company’s products or services are at a suitable state of maturity, then such a hire can be very useful. Typically, this would be after initial proof of concept customer engagements have led to production deployment and initial revenue.

If, however, the maturity of the company and its product or services is not yet established, this move is generally not good. It burdens the company with a significant cost in terms of executive compensation and introduces a cultural change. Frequently such a badly timed move is interpreted negatively by the CEO who takes the incoming executive as the “board’s person” and therefore trust issues develop between the CEO and his or her board.

I have seen this type of “helping” activity destroy more than one company. In one prime example, the Board decided that in order to avoid losing time in the market, the company needed to develop an enterprise sales and consulting organization so that when its product was ready, it could hit the ground running.

What the Board didn’t realize was that the cost of those organizations would significantly impact the overall spending of the company which forced the CEO to reduce spending on engineering. The spiral that resulted eventually caused conflict: the Board blamed the CEO for overspending while the CEO distrusted the Board because it had pushed forward expensive executive hires. The CEO left the company and the Board eventually sold the company for pennies on the dollar.

Controlling the “Baby”

Investors typically look for companies that have a great team, excellent idea (the best being disruptive to their target markets), and a somewhat believable path to market that will eventually produce meaningful financial projections allowing an eventual exit for early investors with a healthy return on their investment. One of the dimensions and potential startup pitfalls that is critical in evaluating the probability of success is the passion behind the company―particularly the passion of the CEO. Is she or he willing to sacrifice everything to see their “baby” born and then continue to sacrifice as the “baby” matures and develops?

That level of passion is truly like the passion a parent has for his or her child. Imagine a parent being told that they are doing something wrong raising their child―or worse, being threatened with having that child given to a foster parent. Good parents will do anything and everything they can to cling on to the child and bring it up “their way.”

That’s exactly the issue that rises in a company with a truly passionate founder CEO when her or his board tries to interfere with his or her vision, strategy, or tactical decisions. Sometimes that interference is justified as the CEOs can―and do―lose sight of their responsibilities to their investors. After all, it is not the CEOs money that is on the line and the board represents the investors.

In many companies the battle for control truly wreaks havoc. The board of a company holds the ultimate power in that struggle and often agonizes over whether to step in and exert control over a company that is not moving forward as expected. Sometimes the board is correct in doing that. Sometimes the board is not. A misjudgment can have disastrous results, ultimately destroying shareholder equity in what becomes a non-recoverable death spiral.

A board exerting its control of a company is never a good sign. It means something has broken in one or more areas―strategy, customer engagement, product development, fiscal responsibility, etc. Unless the board is particularly good at diplomacy, it almost always results in a breakdown in trust between company management and its board. This typically leads to two outcomes: replacing the management or selling the company.

In either case, the value of company decreases precipitously.

It is easy to spot companies that have endured this type of control issue: just look for companies that have had a remarkable number of CEOs within a relatively short period of time. One example is a public company which is current being sold by its board. With ten or so years that company has had around five CEOs including its founder, who was brought back. The founder and his Board could not decide who had control and so he left again. The current CEO is clearly not experienced enough for the job though the Board tried to pull back and let the CEO manage the company.

The result was a continued decrease in the company’s market share while burning through cash reserves. Eventually the Board stepped in but left the CEO in place while they proceeded to get a buyer for the company. This was actually one of the few times they should have replaced the CEO but they became trapped in a logic put forward by that CEO: best leave me in place to do the deal or it will be worth less than if an acting CEO were put in place.

Again, control was muddled: sometimes the CEO has been in control and sometimes the board. In reality, when the latest CEO failed so badly, the board should have removed the CEO and put in place a temporary CEO with one goal: sell the company thereby providing the buyer with a much cleaner purchase since the buyer would not have to pay out a severance package to a poor CEO who could not successfully deal with the control issues that resulted from the board’s activities.

Cult of Personality versus Cult of Vision

Often times a founder CEO is so passionate about her or his vision that she or he drives the formation of the company through the very force of her or his personality. The initial team are frequently skilled professionals who know the CEO quite well and almost worship his or her personality. That personality becomes stamped on the initial culture of the company.

If the CEO comes in conflict with his or her Board, the cult of personality issue becomes one of the potential strategic pitfalls and problematic: taking steps to control, aid, limit or even replace such a CEO is very risky as the entire start-up workforce is essentially there because the CEO talked them into joining and any admission of fault or shortcoming on behalf of the CEO becomes a personal issue for workers. Boards which take action against this cult of personality do so at great peril to the company and the shareholders they represent.

Many of the largest, most successful companies in the world were born of a cult of personality around the founder CEO―Microsoft, Apple, Google, Facebook, Amazon, and even old school companies such as GE, IBM, FEDEX, UPS, Intel, etc. However, in all these cases, the cult of personality successfully transitioned to the cult of vision. In some cases, this happened very smoothly (GE, IBM, Microsoft, or Intel for example) and in some cases the transition was extremely bumpy. Apple is a prime example of a difficult transition which eventually happened but had several false starts over the preceding decades.

A good CEO seeks to move his or her company into a cult of vision. This is the only way a succession plan, or exit plan for the investors, can reliably work. If a CEO does not accept that goal or if a board moves before the goal is achieved, the result is a waste of shareholder value and ultimately the demise of the company.

I know of one start-up in which the major shareholder lost faith in the CEO and decided to remove the CEO too soon. What that shareholder failed to understand was that the majority of the company was in the mode of working for the CEO and not for the vision that the company was working to achieve. When the CEO was escorted out of the company, both the engineering and financial teams resigned completely within a week. The shareholder was left with a company that did not have a completed product and without any sense of the company’s financials.

Needless to say, that company never recovered and its assets, such as they were, disintegrated before they could even be sold.

Dilution, Crushing, and Crafting the Exit

At any stage in the development of a start-up, the issue of funding, investment, and exits are always on the table for a company’s current investors and represent potential startup pitfalls. When will more cash be needed? Will the company manage that through free cash flow? If more investors are needed, what terms and valuation would be offered up for attracting their capital? What’s the eventual exit strategy?

Each class of investor (Angel, VC, Corporate, etc.) has different priorities in all these (and other) dimensions. A company’s CEO also has his or her own priorities, usually starting with trying to minimize any dilutive impact on her or his equity position. CEOs who focus on that issue will sooner or later find themselves at odds with their boards if they fail to be flexible. At the end of the day, it is a company’s board that will make such decisions and not the CEO. Company management may advise or offer opinions but the end decisions around funding, exit, etc. will be in the hands of the external directors―many of whom will possess special rights based on when and how they became an investor.

CEOs frequently get into trouble with this―particularly if they have a deteriorating relationship with their Boards. I had sat on a Board of a company whose Board had lost faith in the CEO. This was mirrored as the Board was doing its best to give the CEO as much chance as possible to turn the company around. The CEOs solution was to solicit an acquisition offer from a private equity firm which, if accepted, would have taken out the Board.

The CEO was fired and a new turn around CEO brought in. It was painful for all involved. Ultimately that company was merged into a much larger concern and the investors walked away with a reasonable return.

The CEO was never able to raise sufficient investment capital for any future venture and left the private sector.

These are just some of the issues I have seen as a CEO, as a board member, and as a strategic advisor to both company management and boards.

Being a CEO is a tricky thing: you have to balance your daily single minded commitment or passion for your current direction with an ability to take input and work collaboratively with those trying to help you.

And Advice to New CEOs and Board Members

I found it fascinating to hear Bismuth’s take on this subject because usually I only get to hear from one side or the other. Here are the lessons I took from his examples―I’m sure you’ll take others as well.

When you become a CEO:

  1. Understand you’ll be working for your Board and manage up accordingly.
  2. Choose your Board members carefully. Go beyond looking at their skills and networks and check out what their communications styles. Do they have a track record of working well with their CEOs? How have they handled conflicts with the CEOs they have worked with in the past?
  3. Check yourself out using the same criteria. Consider getting a coach if you have any concerns about your soft skills.
  4. Check your ego at the door but not your passion.
  5. Actively work to build trust with your board. Determine in advance, together, how you’ll resolve your differences.

When you become a Board member, the mirror image of these points applies:

  1. Understand startup CEOs may think their company is their baby and will sometimes be blinded by this. Understand how well they collaborate with others, how well they listen to advice.
  2. Choose the boards you serve on carefully. How well do they function today? What conflicts are they wrestling with?
  3. Think when and how to give advice, when to suggest versus when to push.
  4. Actively work to build trust with your CEO and your other board members so when conflicts arise you can have safe discussions.

As Bismuth commented, many companies succeed with flexible CEOs who have managed growth well, taken their boards’ advice, and allowed their “babies” to grow in paths they did not expect. Other CEOs fail in conflict with their boards.

I look forward to hearing your thoughts.

03 Jan 16:47

Sales is Not Binary

by Blake Bartlett

Editor’s Note: This is the second part of an interview with FullStory’s Scott Voigt. You can read the first part on how to create Magic Moments for your customers here.

You either love or hate sales. You can go all-in on self-service and let the machine handle customer acquisition. Or you can hire an army of reps and let the humans sell. There is no in-between.

This commonly held view of sales is wrong. Sales is not binary.

FullStory’s Scott Voigt says the answer is a bionic approach to sales. Man plus machine. Human, but more than human.

Empathy and Clarity

Two of FullStory’s guiding principles – empathy and clarity – led them away from sales early on.

“A lot of people don’t enjoy being sold to, including the folks at FullStory,” says Voigt. “As a company, we are super leery of anything where we have to talk to someone in order to see the product.”

Having to talk to someone suggests that something needs to be hidden – most likely the product’s cost or complexity. “We just want to cut to the chase and quickly understand the product and pricing.”

Valuing empathy leads to the Golden Rule. If FullStory doesn’t like being sold to, it would be weird if they turned around and aggressively sold their product to others.

Valuing clarity leads to transparency. Simplicity and clarity is easier said than done when it comes to product marketing , website copy and pricing pages. But customers are desperate for it.

Does It Work for Everybody?

FullStory’s focus on empathy and clarity means the company leads with self-service. I mean, look at the messaging on their awesome sales page:

But self-service doesn’t work for all customers. “I wish it worked for everybody. But in fact there is a correlation between the size of a company and the complexity of the buying process for that company,” says Voigt.

Complexity means your buyer needs help. The self-service machine falls down under the weight of a complex buying process. And if one of your humans doesn’t step in, the customer will turn to someone else’s human (and ultimately someone else’s product) to help them.

Empathy isn’t partial. You need to cater to the needs of both the “leave me alone” people AND the “help me buy your product” people.

Making Things Bionic

Empathetically coming to the aid of people with complex buying processes means embracing sales. But after initially avoiding it, FullStory wasn’t eager to do sales in the traditional way.

“Old school customer interactions are remarkably inefficient,” Voigt says. “Hire an army of sales reps to get new customers and a boatload of support folks to keep them happy. We’re living in the 21st century and there has to be a better way.”

This is where FullStory’s third operating principle comes in – making things bionic. It means making a human process more scalable through technology. But it’s not robotic automation stamping out generic crap. “The human component is the heart of bionics, because of that all-important first principle: Empathy. Being bionic helps us scale empathy. It allows us to be human with an ever-growing number of customers,” Voigt explains.

What does this look like in practice? FullStory provides intelligent, personalized customer success to anyone using the product. All users are created equal, and there is no fundamental distinction between prospects and customers.

“If you’ve ever tried our product, you’re a customer.”

Similarly, there is no fundamental distinction between sales, support and success efforts. “If everyone is a customer, then we want everyone to be successful.”

The intelligence and personalization comes from FullStory using its own product to deliver an amazing customer experience. A common example is receiving a proactive note saying, “It looks like you may have tripped on a bug earlier today. I’m really sorry about that. We’ve fixed it now and you should be all set!”

FullStory does the same thing when it sees users expressing frustration at the product during a session. We’ve all been there – the site is slow and you aggressively click the mouse in hopes of a response. FullStory calls this user behavior “rage clicks.” The team gets a rage click alert and the customer gets a message asking how they can help.

“Customers love this kind of care and attention. It leads to better customer conversion and satisfaction, but it would be impossible without bionics.”

Onward!

We’ve been sold a false dichotomy – that you must choose either the path of self-service or sales, but not both. But there is a better way, and it’s called bionics. Man plus machine. Human, but more than human.

Onward to a better future for your company and your customers!

The post Sales is Not Binary appeared first on OpenView Labs.

03 Jan 16:47

How to Segment Your Traffic to Increase Leads and Conversions

by Marcus Taylor

How to Segment Your Traffic to Increase Leads and Conversions

Whether you’re marketing an e-commerce site, an SaaS company, a blog, or a Fortune500 company, traffic segmentation has the potential to transform your lead generation results by delivering the right experience to the right person at the right time. (highlight to tweet)

Before I explain how to create personalized web journeys and marketing funnels for your audience buckets, let’s first establish why segmentation matters.

Why Segmentation Matters for Marketers

Imagine you’re looking at the Google Analytics report for your website’s homepage. You probably see a number of page views. Now imagine your page views as real people standing in a large room. You can probably see a mixture of people: good clients, bad clients, high-paying clients, low-paying clients, and people in various industries with different roles and interests.

People on your website have varying needs. Despite this, most websites send all visitors through the same one-size-fits-all path. But why, when traffic segmentation can generate an 89 percent sales uplift and 58 percent increase in average order value?

traffic segmentation buckets

No segmentation versus traffic segmentation into buckets.
Images via Freepik and MadebyOliver

Segmentation by the Numbers

If you’re anything like me, you might be thinking, “This sounds great, but where’s the evidence to suggest it’ll actually grow our company?”

In 2015, my team added traffic segmentation to MusicLawContracts.com, an e-commerce site that provides music contract templates. We added a form on the homepage that required visitors to answer, “Im a _, looking to _.” (e.g. “I’m a record label looking to sign an artist.”) When they hit “Find my contract,” they were redirected to a personalized landing page recommending the most relevant product based on their responses.

segmentation on MusicLawContracts.com

The results from this simple segmentation form were staggering.

Instead of taking an average of 20 minutes to buy a product on this site, it took under six minutes. The site’s conversion rate increased from 1.31 percent to 2.47 percent (an 89 percent increase in sales), and people were spending $110.50 on average instead of $70.89.

traffic segmentation improvement

In other words, segmentation improved the site’s conversion rate, average order value, and the time it took for someone to find and purchase a product. How? By making it easier and faster to get different visitors to the right product for them.

By knowing two pieces of information (who they were and what they wanted), we could also personalize all of our email marketing campaigns to be more relevant to their specific situation. We could now show the right message to the right person.

So, how can you apply this to your website to improve your marketing metrics?

4 Ways to Start Segmenting and Converting Your Traffic

There are several methods you can use to segment your visitors into different “buckets.” We’ve already seen how you can use a form tool to segment people into different buckets. This is my preferred approach, as it provides an engaging experience for visitors, while enabling you to capture leads in your CRM and create valuable reports to better understand your audience.

There are other methods like using cookies to dynamically track and “swap out” content on your site, but as this approach typically requires complex software to manage, I’d recommend starting off by segmenting visitors using a basic form.

1. Segment Leads as Soon as They Land on Your Site

One technique that has become quite popular is having a tool or form on your homepage that sends visitors down a personalized path when submitted. This is the approach that we use for Leadformly’s homepage. As you can see below, we have a form that asks visitors to describe their company. Based on their answer, they’re directed to a personalized “Thank You” page with a demo video that’s personalized to their type of business.

Leadformly form segmentation

In addition to providing a more relevant experience to visitors, we’re also able to see what percentage of our visitors are enterprise companies, agencies, SMBs, and startups each month. We can even break this down by traffic source to see precisely where high-value enterprise leads are coming from, so that we can take the guesswork out of which channels we should focus on for lead generation.

2. Give Your Visitors a Personalized Recommendation

Another popular technique used by companies like Hubspot, Wealthfront, and Crew is using an interactive form to give visitors a personalized report or recommendation based on their responses to a series of questions.

site visitor personalized report

While the visitor benefits from the free advice, these companies are able to cleverly segment their audience into different buckets, enabling hyper-targeted marketing later on via email marketing, retargeting, and direct marketing.

We tested this approach on a site called BrokerNotes. To “match” traders with a suitable broker, we built an interactive form that asked a series of questions that would produce a personalized report on which brokers would be suitable to use.

brokernotes personalized report

This interactive form increased BrokerNotes’ conversion rate of landing page visitors into leads from 11 percent to 46 percent. It also provided extremely valuable data on what traders on this site wanted to trade, their level of experience, and much more. Most importantly, though, the visitors on this site were receiving their desired outcome (learning which broker to use) much faster, as a result of better segmentation.

3. Refine Your Content and Messaging Using Segmentation Data

Sometimes the audience insights you get from segmenting your audience into buckets are more valuable than the immediate uplift in results from providing a better user experience.

A few years ago, we published a guide on finding the best web hosting. At first, the article was written for experienced webmasters who might be considering a mid-high range VPS or dedicated server. After segmenting readers of this article with an interactive form, we discovered that we were totally wrong about our audience (whoops!). Over 70 percent of the people reading the article were beginners looking to spend less than $10 per month on web hosting.

reader segmentation

After learning this, we scrapped the entire article and re-wrote it with a focus on helping beginners get started with their first web host. As a result, all of our engagement metrics improved, from time on site to bounce rate and number of shares.

If you’re running a content business or want to better understand the audience on certain pages of your site, segmentation might provide answers that would otherwise be tricky to identify.

4. Personalize Your Nurturing Emails for Each Segment

If you can segment your audience on your website while capturing a visitor’s email address, you can obviously use the segmentation information to send hyper-targeted email campaigns that are going to the lead.

One of my favorite examples of this is from a company called Paper Style, which increased its revenue per email by 330 percent using the following approach.

Paper Style, which sells wedding-related products, realized that their audience fell into two distinct buckets: brides and friends or family of brides. By identifying whether someone was a bride or someone helping a bride, Paper Style could personalize their email nurturing campaigns to promote products that a lead was most likely to be looking for at the time.

Paper Style site visitor segmentation

By increasing the relevancy of these emails, Paper Style’s open rates increased by 244 percent, email click through rates increased by 161 percent, and their revenue per mailing increased by 330 percent.

5. Remarket to Your Segments That Don’t Buy or Inquire

Imagine someone goes to your site and fills out an interactive form tool that tells you who they are and what their challenge is. Perhaps you’re a web design agency, and someone has just said they’re a medium-sized business and are looking to get a new website built. If that lead doesn’t convert, you could remarket to them with hyper-targeted ads that specifically mention something along the lines of, “We specialize in helping medium-sized businesses build a new website affordably and on time.”

This kind of hyper-relevance may be a bit scary, but it’s extremely likely to drive people back to your site or follow-through with their inquiry.

Segmentation is a fundamental in marketing. Unlike the shiny tactics and channels that phase in and out, segmentation provides the means to delivering a more relevant message to your visitors.

In marketing, there’s nothing better than reaching the right person with the right message at the right time. Segmentation allows us to get closer to that ideal in a way that is both scalable and well-adapted for the online world.

Understanding the value of segmentation is the easy bit. The hard part is taking action and applying it to your business. My challenge to you now is to take one idea from this post and start the ball rolling today. Henry Ford’s advice rings very true here: If you always do what you’ve always done, you will always get what you’ve always got.

If you want to learn more about segmentation and building interactive forms, feel free to join this free webinar I’m running on how to acquire 300 percent more leads without increasing your traffic.

Get more content like this, plus the very BEST marketing education, totally free. Get our Definitive email newsletter.

       
03 Jan 16:47

5 Marketing Tools I Can’t Live Without

by Ryan Shelley

Having the right tools is essential to getting the job done right and in a timely manner. The same goes for marketing. If you want to attract and convert leads online, you have to have the right tools. This is one area where I see businesses fail the most. They get the idea that they need to market themselves but when it comes time to buy tools that will help them maximize results they balk. Now, not all the tools on my list have a fee. In fact, only one is. But even for the free tools, there is a level of buy-in and commitment you must have in order to see your desired results.

This week’s question comes from Mindi Rosser – @mindirrosser

If you could only choose five marketing tools for your business, what would they be and why?

This initally seemed like an easy question to answer, but it actually took me some time. I decided to choose five tools that I can’t live without and that I believe can be helpful to you. Here’s a quick list of them

  • Blog: Content drives your marketing. This is your voice online. It also helps your SEO efforts.
  • Email: Connect with your contacts and nurture leads.
  • Google Analytics: Track what is working and where traffic is coming from.
  • Twitter: For me, this is a great social channel. I drive a lot of traffic and it coverts @ 4.3%
  • HubSpot: Marketing automation is key to making sure no one falls through the cracks. Connects all your tools and syncs your efforts. Not as expensive as you think.

Now, check out the video to get more details on each of the five must-have marketing tools.

If you want to do the job right, you need to have the right tools. Now, tools don’t do the work for you, but they help make the work a lot easier and make sure that what you’re building is built sound, secure, and with a good foundation. Today’s question is, “If I could only pick five marketing tools, what would they be and why?” Let’s get into my five tools that I would choose and how I would use them and why they’re so important to my strategy.

The first tool is your blog. The reason blogging is so important is it’s your voice online. It’s where you get to house your content. It’s where you get to add your flair, your style and really, let the world know a little bit more about you, your business and the way that you run it. Blogging is still an extremely powerful tool. But, it’s got to be used effectively. There are billions and billions and billions of pieces of content on the internet that absolutely suck. This comes from people believing that “if I just post more than somebody else, then my site’s going to rank.” We’ve got all these pieces of content that are just low quality, don’t add any value, but they’re floating around the internet.

That’s created a lot of noise. How do you use your blog to stand out? You be yourself, first off. You write with your own tone. You don’t try to be somebody you’re not. You try to give your business’ voice online the same feel as you would if somebody was speaking to you on the phone. Now, then you develop good content. Now, good content is a very hard term to define, right? Good content is content that’s going to speak to your audience and solve their problems or educate them in a helpful manner. Your blog is really a way for you to add your voice to the internet, add content that speaks directly to the people you want to reach and does it in a tone that really invites them to join in and connect with you. Your blog is still a very powerful tool and if used correctly, can help you generate traffic, convert leads and even turn those leads into sales.

The second tool that I would choose is email. Email is a great form of communication when used appropriately. Now, we all have one reason or another to hate email. Maybe it’s all the spam messages we get. Maybe it’s the millions and millions of just emails we get on a regular basis and we feel like we’re flooded. You can still use email effectively for marketing, again, if you do it in the right context. Email is about communication. Email is about connection. It’s not about spamming. It’s not about just putting more stuff in somebody’s inbox. If you overload people, they’re going to unsubscribe. They’re going to ignore you. Once they ignore you, the chances are, they’re not coming back.

Use email, but use it appropriately. Use it sparingly. Understand, again, your audience. Your audience is going to dictate how much you can send them, what types of content that you can send them and really if they’re engaged or not. Now, we do use email automation but I also use email in a more personal way, where I’ll send directly from my account with just a regular email, asking good questions, but also just trying to connect with people. I don’t use emails to harvest links. I don’t use email to ask people to do extra things for me if I’m not willing to do them in return.

We can use email, we just need to use it in the right fashion. Email is a powerful tool because everybody still uses it. There isn’t another form of communication yet that’s really overtaken email. Yes, we have messaging chats. Yes, we have Facebook business windows that you can message people in, but really when business comes down to business, people go to their email and they use their inbox. Email is my second powerful marketing tool that I would have to have.

The third tool that I would have to have is Google Analytics. Google Analytics is a powerful way to understand where you are and where you’re going. You need to understand what people are doing when they come to your site. Are they leaving quickly? Are they engaging with your content? Are they spending more time on your site or are they coming in through social channels or organic search or direct traffic? Google Analytics is going to help you uncover what’s working and what’s not working. Now, Google doesn’t give you 100% of the information. They have their reasons for doing that. A lot of it comes down to online privacy. For that reason, thanks Google. I really do appreciate it.

Now, we may not get all the keyword data that we used to get. We may only get as much data each month. Even some of the direct traffic is masked because we know that not all that direct traffic is actually direct. It’s probably some organic traffic or referral traffic or social traffic. The data we do get can tell us a lot. We can know who’s coming to our site, what they’re doing on our site, what their interests are. Google Analytics tool has really expanded over the years to give us so much more information than it did in the past. Google Analytics will be critical for me because it would help me know where I am and where I’m going and then where I’m supposed to or should invest more of my time, energy and maybe even money as far as my marketing campaign goes. Google Analytics is my third tool that I would have to have.

My fourth tool is a social channel and it’s Twitter. For me, Twitter is a very powerful way for me to connect with my audience. I drive a ton of traffic to my site through Twitter. Actually, my Twitter traffic converts at 4.3% visits to contact ratio. That’s pretty good for social visits to contact ratio. The reason why I believe my Twitter strategy works so well is I provide valuable content. I’m providing stuff that my audience actually wants. For you, it may be another social channel. Having a social channel that’s really a primary channel is really going to help you really get your message out there because everybody kind of has their niche. Every audience has their channel that they really enjoy being on. Maybe for you it’s Facebook or if you’re B2B maybe it’s LinkedIn. For me, it’s Twitter. I have to have Twitter because I have a large following that really likes what we do and connects with what we do, and comes back to our site, reads our content, engages with our content. Twitter would be my fourth tool, just because of the way it’s building my community and the way I’m able to get on there and just talk to people really quick; short information, short conversations where we can really just get to feed off of each other and share what we’re doing online.

My fifth tool is a little bit different. My fifth tool is an automation software. We’re HubSpot partners. I would have HubSpot. The reason why I would have to have HubSpot is HubSpot is kind of my one in all marketing tool. It controls my social media platform. My website’s on there. My blogs run through there, our landing pages, our email automation, our CRN is in there. HubSpot houses all this information with us and helps us keep track of everything we’re doing, but more importantly it speaks to each other through all the channels. I can see if somebody on Twitter also is on my mailing list and also went to my landing page and has visited my website. I get to actually string all my data together and I get to understand what each one of my users is doing and then how I can better adjust my strategy, my website, my content to meet my visitor’s needs.

When a lot of people think of HubSpot, they go, “Oh, my gosh, that’s so much money.” In reality, HubSpot’s not as expensive as you think. You’re already probably paying for web hosting. You’re already probably paying for some sort of lead pages or other landing page software or maybe marketing automation through an email client. What HubSpot does is kind of gets rid of all the different apps and all the different programs you’re using and puts them under one roof. When you get them under one roof, this is what makes them so effective. Each piece works together. When you have all of your tools working together and focused on a single goal, they work more efficiently and they deliver better results. When you’re trying to piece things together, things slip through the cracks. When things slip through the cracks, you can lose out on good deals, good opportunities. When everything’s together, everything’s working together and getting momentum in one focused direction, you’re going to see better results. HubSpot, hands down, would be my fifth tool and probably the most important tool of them all.

All right. That’s it. That’s my five most important marketing tools that I would have to have if I could only pick five. I have to have my blog. I need to have Twitter. I need to have email. I need to have Google Analytics and I must have HubSpot because all of those working together is going to help me keep my momentum and build my momentum forward. Those are five key channels for me in helping me focus my campaigns on one single direction to optimize my results.

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