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14 Jun 16:57

Google aids app discoverability with Nearby (GOOG, GOOGL)

by BI Intelligence

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Last week, Google launched Nearby, a new feature that recommends apps and mobile websites based on a user's physical location.

The feature is aimed at making it easier for users to find contextual apps and could vastly improve app discoverability, an issue that has been plaguing developers and publishers alike. The Google Play store has somewhere between 1.5 million and 2 million apps available, making it difficult for smaller app developers to get their apps seen.

Nearby will be particularly useful for apps that are location-specific, such as travel apps or retail apps. The feature, which is opt-in, opt-out, requires users to enable both Bluetooth and Location on their devices.

Once on, a notification will surface on the user's screen to let them know an app or mobile website is available that will enable them to discover and interact with things nearby. Tapping the notification will take users straight into the intended experience. For example, a user at an airport could be notified to download an airline's app to receive free in-flight entertainment.

Offering a location-based app feature is one way that Google is hoping to better curate relevant apps for users and, at the same time, aiding in app discoverability for developers. App discoverability remains one of the primary sore points for developers and users alike. App stores are typically weighted in favor of top-performing apps, so the apps downloaded most often are also the ones most likely to surface when users search.

Cutting through the noise of an overcrowded app market is critical for any app developer looking to build a viable user base. There are now well over 3 million apps available across the world’s five largest app stores. Delivering the right product to the right audience at the right time in this environment is imperative to the success of any app.

The challenge of marketing an app effectively has made app-install ads — an ad unit that directs users to download a mobile app — an essential tool for developers seeking to stand out in the Google Play and Apple app stores. This is why it's not surprising that more marketers are using paid channels to drive downloads than ever before. In fact, over 80% of respondents in a survey of the top 100 grossing mobile app developers noted they plan on increasing their spend on app-install ads in 2015.

Will McKitterick, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile app-install ads that looks at the revenues from app-install ads and how they're expected to grow over the next five years. It also looks at the performance of app-install ads and how these metrics are expected to change over time.

Furthermore, the report examines the top app-install ad products and pricing models offered by the leading advertising platforms, including Facebook, Twitter, Yahoo, and Google, as well as newer app-install formats from Instagram and Snapchat. Looking to the future, the report examines how companies are shifting their app-install ad spend to new formats, as well as the new tools they're using to improve optimization and ad effectiveness.

Here are some key takeaways from the report:

  • Mobile app-install ads — ad units that direct users to download a mobile app — are an essential tool for developers, and they account for a major share of mobile ad spend. We estimate 25% of total US mobile ad revenue was generated by app-install ads in 2015.
  • A combination of new developers entering the space and rising ad budgets will drive increased spending in years to come. US app-install ad revenue will grow to over $7 billion by year-end 2020, according to BI Intelligence estimates.
  • Mobile app install advertisers have traditionally invested heavily in display and interstitial ads, but are moving to mobile video and native install formats. 86% of developers currently use in-feed video app-install ads, and video ads are seen as the most effective app-install format.
  • As formats like video rise in popularity, older formats are losing their appeal for install campaigns. Static nonnative ads are widely used but are not seen as effective. Free app networks and offer walls have also fallen out of favor.
  • Ad platforms are now developing innovative new install formats to earn even more revenue from these lucrative ad units. New approaches, including deep linking and app streaming, are more contextualized and interactive than older ad formats.

In full, the report:

  • Forecasts app-install ad spending in the US through 2020.
  • Explores which app-install ad formats developers believe are most effective.
  • Discusses what the most popular platforms and ad networks are doing to attract ad spending.
  • Investigates new tools for marketing apps, including deep linking and app streaming.

To get your copy of this invaluable guide, choose one of these options:

  1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
  2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of mobile app-install ads.

Join the conversation about this story »

14 Jun 16:55

How Tony Lacavera is helping Canadian startups cross the “Valley of Death”

by Joe Castaldo
Startup founder looking across a chasm

(Illustration by Min Gyo Chung)

In many ways, James Sun is emblematic of today’s tech entrepreneur: He’s scarily young (21), fluent in business jargon and running a company that’s baffling to anyone older than 30. He arrives one morning at the office of Globalive Capital, an investment firm in Toronto founded by Anthony Lacavera. Sun plops down at the conference table, wearing a hoodie over top of a bright blue T-shirt emblazoned with the name of his company, Revlo. Globalive invested seed capital into Revlo last year, and the startup is raising a follow-on round. Sun is here to give an update to Lacavera and the company’s three other partners.

Revlo requires some explanation: It’s a fan engagement platform for influencers on Twitch. (Don’t worry if that sentence means nothing to you. “The first time I met James, I didn’t even know what he was talking about,” Lacavera says later.) To understand Revlo, you need to first know that gamers now live-stream their play for others to watch. Twitch, owned by Amazon, allows them to do that. Second, the practice is so popular that the best gamers command legions of followers, draw brand sponsorships and earn a plush income. Revlo’s platform helps these gaming influencers retain and engage their fan bases by facilitating things like contests, giveaways and rewards. Revlo is also looking to expand to other streaming services, such as YouTube Gaming.

Even though Sun’s startup is still figuring out how to make money, Globalive’s partners are enthusiastic about its prospects. “I would go crazy on influencer management,” Brice Scheschuk, Globalive Capital’s CEO, tells Sun in the meeting. “Understand those guys. Live in their world.” Lacavera adds, “They’re really your customer.” Sun politely nods along, although one gets the impression he already knows all this.

Revlo is the kind of startup Lacavera wants to back for the long-term, especially now that he’s turning his attention to venture capital investing. He is best known as the founder of wireless carrier Wind Mobile, which was sold last year for $1.6 billion. Flush with cash from the sale, Lacavera has wasted little time in seeking out startups to finance. He wants to eventually put together a $100-million fund that would include cash from outside investors and be capable of writing even bigger cheques. A sizable war chest would allow Globalive to have more influence with portfolio companies and within the venture capital scene in Canada at large. (He’s on track to close the fund by the end of the year.)

Lacavera’s goals extend beyond earning a return; he wants to help fix a fundamental problem with the funding landscape today. The recent boom in accelerator and incubator programs, which help young entrepreneurs build or refine business plans in exchange for equity, means ample funding for early-stage ventures. At the other end, funds such as OMERS Ventures and Georgian Partners, two of the country’s most prominent VCs, are capable of investing large amounts of money in more mature companies. OMERS and Insight Venture Partners, for example, led a $100-million investment in Shopify in 2013, which turned heads at the time.

As Lacavera sees it, the problem occurs in the middle. “That’s where we don’t have enough funds,” he says. This phase, sometimes known as the Valley of Death, is part of the reason tech startups have difficulty scaling into world-class behemoths. Entrepreneurs might sell out or be wooed across the border by American VCs. “We’re actually gift-wrapping investment opportunities for these people,” he says. Lacavera’s fund will focus on Series A investments, the term given to the capital raise that follows an initial seed round, and will help bridge the funding gap in Canada by being faster, more flexible and willing to take on bigger risks. But among the first questions he’s asked when approaching potential investors in the fund is, “What makes you think you can do this?”

One way to pull it off is to be mindful of valuations. At the meeting with Sun, the talk turns to Revlo’s fundraising round. Sun tells the partners how much he’s looking to raise and the valuation he’s seeking. (Canadian Business was permitted to attend a series of Globalive meetings, provided financial information was not disclosed.)

“I would say you have risk on that valuation,” Scheschuk says. Sun gives a quick nod and turns to Lacavera.

“That’s too fucking high, man,” Lacavera says.

“I was trying to be more diplomatic,” Scheschuk deadpans. Sun laughs. Rather than trying to press his case, he asks for their thoughts on a more reasonable valuation. The figure Lacavera quotes is a good deal lower than what Sun was seeking. The young entrepreneur doesn’t seem too dejected.

Lacavera isn’t new to investing (Globalive has made more than 75 investments over the past 15 years), but raising this fund would put him in another league. Perhaps that’s what makes him eager to tout his credentials. He thinks his entrepreneurial experience differentiates him from other funds run by individuals who come from finance, rather than an operational backgrounds. He founded Globalive Communications at 23 years old in 1997 and went on to start, grow and exit a number of businesses. Enunciate Conferencing, founded in 2001 with two partners, offered automated teleconferencing services. It sold for $28.3 million in 2006. More recently, Globalive launched an augmented reality firm and then sold it 18 months later to a Los Angeles–based company for an undisclosed amount. Wind, of course, was the biggest of those ventures, growing to eventually employ approximately 1,200 people. Lacavera feels that puts him and his partners in the unique position of being able to advise entrepreneurs and to take on an active role in case business plans go awry. “Not a lot of VCs know how to do that,” he says. “Or they haven’t done it to the same extent we have.”

Lacavera is looking at a different fee model, too. Typically, venture capital firms charge a 2% annual management fee and take 20% of whatever profits are made by the fund. (Private equity firms and hedge fund managers also use the so-called “2 and 20” model.) Lacavera declines to discuss specifics, except to say, “I’m considering something unique that keeps a greater percentage of risk with Globalive, and a greater percentage of the upside.”

But what really could help Lacavera’s fund address the gap in the Canadian market is an emphasis on speed and flexibility. Funds typically have a certain investing mandate; they focus on early-stage mobile gaming companies, for instance. If an opportunity arises that’s slightly outside that mandate, the VC firm’s partners might have to get the approval of their investors before making a move. By that time, the opportunity could be gone. The VC market is also fragmented. While there are a few firms in Canada targeting Series A rounds (as Lacavera plans to), there are usually only one or two names per sector. The result is a startup that’s been turned away by the one Series A fund in its category has few other places to turn in Canada. Lacavera’s mission, on the other hand, is almost absurdly broad: “The fund mandate is we’re going to invest in technology companies,” he says.

In order to practise that kind of flexibility, however, Lacavera has to find like-minded investors. Often VCs secure money from the Canadian banks and other large institutional investors, which would not make an ideal fit for him. “I don’t have a lot of confidence that the Canadian banks wouldn’t impose some restrictions on my fund that I’m not interested in having,” he says.

Ultimately, Lacavera has a different view of risk than his Canadian peers—the same issue he ran into when trying to get Wind off the ground. “In 2007, I went around to every single Canadian telecommunications investor, and I got laughed at—out loud—or I got told no,” he says. Investors thought taking on Bell, Rogers and Telus was foolish. To Lacavera, it made perfect sense to challenge an oligopoly. “That’s what is fundamentally wrong with the Canadian investment community,” he says. “Instead of thinking of it as a suicide mission, think of it as an opportunity.” (He later scored a $700-million commitment from Egyptian billionaire Naguib Sawiris.)

With his VC fund, promoting speed and flexibility tends to make Canadian investors nervous. Moving quickly on an opportunity means less time for due diligence. “When I started talking about this Series A focus for Globalive in the Canadian community, [I heard], ‘Oh, well, the guy’s reckless. He’s too fast,’” Lacavera says. “If you think I’m making a stupid bet, that means you think I’m stupid.”

Although Canadian investors are still welcome to participate in the fund, Lacavera hasn’t yet found a match. Instead, the most promising partners are institutional investors and high-net worth individuals outside the country. It’s worth noting that Lacavera does have an almost preternatural ability to raise money. (“I don’t know how to explain it,” Scheschuk says, before venturing that Lacavera succeeds by simply being straightforward with investors about his business goals and how he plans to achieve them.) In addition to securing Sawiris’ backing, Lacavera was forced to recapitalize Wind in 2014 when its then majority owner, VimpelCom, sold its stake following a dispute with the Canadian government. Lacavera turned to private equity firms to replenish Wind with cash. Those investors made out nicely when Wind was sold, he says.

The funding challenge Lacavera is hoping to address with his new venture has been a long-standing issue in Canada. Investors are far more willing to back early-stage companies because the amounts of cash required are relatively small, and the potential payoff is huge. “Everyone has seen guys like Peter Thiel make millions off a $500,000 investment,” says John Albright, co-founder of Relay Ventures in Toronto, which also targets Series A rounds. Later-stage firms, even though they require greater sums of money, are seen as less risky. By that point, aging startups have likely turned a profit (or have a clear path to profitably) and have proven a market exists. In between, however, companies’ capital needs increase, and the viability of their businesses could still be in doubt. That makes investors wary—especially Canadian ones.

Still, there is some debate in the venture capital community about whether the overall need for capital is greater at the Series A stage (where rounds are typically between $5 million and $10 million) or at the next stage, Series B, where bigger amounts are required. Jim Orlando, a managing director at OMERS Ventures, contends the deficiency is actually greater at Series B. At the beginning of 2015, Orlando predicted there would be a “mid-stage capital crunch” that year, owing to the fact that it has historically been the most difficult stage of a young company’s growth, and because U.S. investors that might otherwise back Canadian companies have their pick of opportunities at home these days. That didn’t end up happening—both the volume and value of investments at this stage increased from 2014. Orlando isn’t exactly sure why, but he does suggest that Series B funding remains the bigger challenge. “A Series B round requires something like $20 million to compete on a world-class stage,” he says. “As companies grow larger, there are fewer and fewer funds that can write those kinds of tickets.” Albright, meanwhile, says Canadian companies need ample access to funds at all stages in their development. “It’s hard to believe there could ever be too much money chasing Series A,” he says.

But the threat of American VCs poaching Canadian startups is not as urgent as it once was. “That’s not the norm anymore,” says Allen Lau, co-founder and CEO of Wattpad. “That’s more the exception.” His previous company, Tira Wireless, secured the backing of one U.S. venture capital firm, but it was contingent on moving the headquarters to Silicon Valley. That was 10 years ago, however. Albright isn’t seeing that phenomenon happen either. “I haven’t been in a deal in four years where the U.S. VC insisted the teams move,” he says. “They all realize the disruption caused by moving is huge.” Relocation is expensive and distracting, not to mention the fact that costs are high in Silicon Valley and the competition for talent is intense.

If there is a risk of that situation happening today, it’s for early-stage startups, which have a small number of employees and fewer ties here. Revlo, which is currently tiny, might fall into the category. The company recently enrolled in the prestigious Y Combinator accelerator program in Silicon Valley, deepening its connections to American investors. “Over my dead body I get beat by a U.S. VC on that thing,” Lacavera says.

He’ll soon have the chance to hone his chops when it comes to actually leading a Series A round. In May, Globalive secured the position of lead investor for a raise by TimePlay Inc., a Toronto-based company that makes an interactive gaming app for movie theatres. He emphasizes the $100-million fund is just a start—that amount is merely the price of entry to lead Series A rounds, after all—and naturally, he’s aiming high. “There’s no way I’m raising a $500-million fund later if the first one doesn’t hit it out of the park,” he says.

To that end, he’s scouting dozens of potential investment opportunities. On the day Canadian Business visited, an experienced telecommunications executive met with Globalive’s partners to pitch the mobile payment company he’s now heading. Upon introducing himself, the executive mistook Lacavera for a Canadian Business reporter. “I’m Tony Lacavera, the chairman of Globalive Capital,” the venture capitalist explained patiently.

Later, Lacavera laughs it off. “That was unusual,” he says. “I think that’s only happened two other times in 15 years.” If his fund takes off, it probably won’t happen again.


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The post How Tony Lacavera is helping Canadian startups cross the “Valley of Death” appeared first on Canadian Business - Your Source For Business News.

14 Jun 16:55

Growth Hacking with User Behavior [Podcast]

by Bill Hobbs

The subscription economy has exploded over the last decade.

Top SaaS companies with flexible, innovative technologies are in high demand. The lower barrier to entry however, has created a myriad of competitive pressures on SaaS providers. To dominate their markets, tech companies must drive immediate and continuous value for customers.

Last week, I spoke with Nic Poulos, Principal at Bowery Capital, about how “Behavior Based Marketing” is changing the world.

A Simple Example

Imagine if a SaaS company could identify a power user that loves 3 of their product features but doesn’t know about a 4th new feature. The company also knows that other power users in the same field used the 4th feature to achieve their quarterly business in one-third less time.

This information is easy to uncover using a platform like Totango, but to capitalize, the SaaS company needs to take immediate action. Using behavior-based marketing, the company could send a personalized note to the user saying, “We noticed you use these 3 features, but there is another feature in your subscription that will help you reach your goals in a third of the time. Attached is a 2-minute video showing how it works. Click here to get started now!”

This method of “Behavior-Based Marketing” is moving the needle in the SaaS world. Unlocking these hidden opportunities is a critical component to driving more renewals, upsells/cross-sells, increasing trial conversion and making partnerships more valuable for everyone. Check out the full podcast below and let me know what you think.

14 Jun 16:51

Run Flawless Discovery Calls With the Simple Tool Doctors Use

by dkhim@hubspot.com (David Ly Khim)

Run_Flawless_Discovery_Calls_by_Using_the_Same_Tool_Doctors_Use.jpg

As a salesperson, you're on the phone -- a lot.

How do you make sure you don’t make a silly mistake or forget something on a call when you have so many to keep track of?

It happens to the best of us. You make a rookie mistake and then facepalm yourself for it. Even doctors who’ve performed the same procedure for decades make simple mistakes.

But doctors discovered a simple tool that helps them  avoid unforced errors and perform at the highest level -- and you should be using it too: A checklist.

Get the simple checklist to optimize your discovery calls.

For example, doctors are supposed to follow these five steps every time they insert a line into a patient:

  1. Wash their hands with soap
  2. Clean the patient’s skin with chlorhexidine antiseptic
  3. Put sterile drapes over the entire patient
  4. Wear a sterile mask, hat, gown, and gloves
  5. Put a sterile dressing over the catheter site once the line is in

These steps are no-brainers for doctors. Still, when nurses were asked to observe doctors for a month at Johns Hopkins Hospital (one of the top hospitals in the United States) they found that in more than one-third of patients, the doctors skipped at least one step.

That means an increased risk for line infections, which forces patients to stay at the hospital longer than necessary and in some cases leads to death.

Once a hard-copy checklist of the above steps was implemented and strongly enforced by hospital administration, the ten-day line-infection rate dropped to zero. In that hospital, this one checklist prevented 43 infections and 8 deaths, and saved the hospital $2 million dollars in costs.

How often have you gotten off a call and realized you forgot to ask a question? Or to provide a crucial piece of information? It’s not that you didn’t know to do those things. It just slipped your mind because you had a rough day.

Imagine how often those unforced errors result in lost opportunities. Even if you only made a mistake in one of every ten calls, that can add up to tens of thousands of dollars lost every year.

Use a checklist every time you’re on a discovery call to ensure you get all the information you need and book the follow up call.

Your bottom line will thank you for it.

Click below to get the Discovery Call Checklist and
avoid making silly mistakes that cost you profits.

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13 Jun 18:22

Intel Ceases Work On Wireless Charging (Elise Ackerman/Forbes)

Elise Ackerman / Forbes:
Intel Ceases Work On Wireless Charging  —  For the last three years, Intel has been stoking demand for PCs ahead of the next big buying cycle with the promise that new machines will be totally wireless.  “We carry around a lot of wires,” Kirk Skaugen, Intel's senior PC exec said at Computex Taipei 2015.

13 Jun 18:15

BAML: This is the biggest risk facing the planet

by Elena Holodny

drought water

The world is eyeing numerous global economic, geopolitical, and demographic problems.

But there's another somewhat-under-the-radar problem that many countries will soon have to address: Lack of water.

A Bank of America Merrill Lynch team led by Beijia Ma recently reiterated in a report to clients that water is the number one pressing issue for the world as whole.

From their report (emphasis ours):

"Water is the #1 risk facing the planet. ... Globally, 750 million people lack access to safe drinking water source and 2.4 billion have no access to proper sanitation facilities. Close to 50 countries are officially classified as being water stressed, and up to 70% of the world's underground aquifers have reached peak water. Global water demand is set to overshoot supply by 40% by 2030E, and by 2050E, 3.9 billion people will be living under "severe" water stress. Poor water supply and sanitation cost the global economy US$260 billion per year or c1.5% of global GDP. By 2050E, 45% of projected GDP is at risk, with as many as 50 countries at risk of conflict over water."

Notably, one particular place where this is already a huge problem is California.

The state is in its fifth year of severe drought, and experts say it has been the worst the state has seen in 1,200 years. Plus, a mid-2015 study from the University of California-Davis estimated that the drought would cost the state's economy $2.7 billion and nearly 21,000 jobs that year.

"In a business as usual scenario, California water demand will outstrip supply by 50 billion m3 (1 trillion gallons) by 2060E, with an 80% chance of multi-decade 'mega drought' this century," the BAML team argued.

Moreover, folks have also singled out Saudi Arabia as a major country that's steadily running through its supply of nonrenewable groundwater reserves.

"Saudi Arabia is facing a catastrophe if agricultural practices don't change. The remaining groundwater needs to be preserved," Ali al-Takhees, the former undersecretary of the Saudi ministry of agriculture, previously told Al-Araby.

In sum, water shortage is a big problem that many countries need to prepare for.

SEE ALSO: This is Saudi Arabia's "Achilles' heel"

Join the conversation about this story »

NOW WATCH: Scientifically proven features men find attractive in women

13 Jun 18:14

Company Culture: Sales Eats First

by Dave Stein

(Note: Since there are numbers of comments, you may want to read a copy of this post on LinkedIn.)

I hosted best-selling author, Mike Weinberg, the other day for a powerful and memorable webinar about dysfunctional sales management. At one point during our discussion, I brought up the powerful cultural message: “Sales Eats First.”

Recalling that imperative brought me back just a few years…

I don’t hear the phrase “sales culture” very much any more. That’s too bad.  In the past, that phrase was most commonly used in two situations:

First, by venture capitalists who were determining if a CEO in whose company they were considering investing had the orientation and experience to support sales to the extent that it would drive the company’s growth at a predictable and significant rate. There was always a danger, especially with tech companies. Founders too often depended on product innovation to drive sales and paid little attention to the sales function, as in “the product will sell itself.”  (I’m certainly willing to admit that Apple and Tesla survived rather well using that model.)

The second situation related to high-performing sales people who wanted to understand whether the companies they were interviewing with and considering had a sales culture.  They wanted to be sure that they would be empowered, not inhibited, in their selling efforts.

When I think sales culture I think Larry Ellison and Oracle.  I think Marc Benioff and Salesforce.com. Whom do you think of?

I also think back to Kevin Madden and Joe Puishys at Honeywell Building Solutions (HBS)… I first heard the phrase “sales eats first” at a President’s Club meeting in San Diego where I presented to HBS’s top salespeople.  Kevin Madden (VP World Wide Sales at Honeywell Building Solutions) and Joe Puishys (former President of Honeywell International, and now CEO and President at Apogee) each spoke as well. It was Joe who talked about what “sales eats first” meant to him and the future success of Honeywell. Kevin was beaming, having the unqualified support of his boss. I was beaming as well.

(Honeywell Business Solutions, under yet again, strong, new leadership are featured in a case study in Steve Andersen’s and my book, Beyond the Sales Process. In fact, Sean Mahoney, VP of Sales, Honeywell Americas, was a panelist at a recent event Steve and I facilitated. HBS is a Performance Methods, Inc. client.)

The following is a quote from an 2007 article by Joe Kornik in Sales & Marketing Management Magazine about Joe and Kevin.

“One of the defining moments [of a cultural turnaround] was when Joe spoke for the first time in front of the sales team,” Madden says. “He stood in front of the troops, and he said ‘I’m going to tell you right here and now—sales eats first.’ It sounds simple, but that declaration completely changed how we played the game.

That’s what I’m talking about.

I’m not sure why having a sales culture either isn’t talked about very much anymore or it isn’t seen as the positive thing it is.  Come back to me in a comment with your views on the importance of a sales culture. I’m really interested in your opinions and experiences.

Photo credit: © Alexander Raths – Fotolia.com

13 Jun 18:13

The Pitfalls of Scaling Content [Infographic]

by Louis Foong

If you are a frequent visitor to my blog, then you already know how strongly I believe in the power of inbound marketing. After all, why would you want to spend your time chasing after customers if a well-designed and executed campaign will bring them right to your website? Content marketing is a wonderful tool when it comes to reaching a wider audience, driving traffic, and increasing your sales, but scaling up your content production can backfire if you’re not careful. After all, pumping up your output won’t do your business any good if the quality starts to suffer. This infographic from CopyPress gives some great tips for building up your content and conversions without breaking the bank or losing your steam. Let’s take a look.

  1. Grammatical gaffes. Do you know the difference between “their”, “they’re” and “there”? If you don’t but your customers do, watch out. 59% of potential customers would not give their business to a company whose website features typos and poor grammar, and 82% wouldn’t work with a company that hasn’t properly translated their website into English. 42.5% of social media followers say spelling errors are worse than overly “salesy” posts!
  2. Outsource or die. For better or worse, gig workers are becoming a big part of the economy. Gig workers work with on-demand companies and are matched up to provide services as needed. Intuit’s Alex Chriss has estimated that gig workers will make up 40% of the workforce by 2020. What does this mean for you? Easy access to skilled professionals on a job-by-job basis, with the flexibility to shop around as projects take new directions.
  3. More traffic, more problems. Don’t just plan to boost your traffic – you can have millions of eyes on your content, but it won’t make a difference to your sales if they’re just not interested or qualified. On average, every $100 spent on increasing traffic, only $1 goes toward increasing conversions. Companies with a solid plan that focuses on conversions are twice as likely to see increased sales than companies without one.
  4. Mobile is mandatory. You probably know this yourself just by looking at your own patterns of use, but 60% of all digital consumption now happens on smartphones and tablets. Companies just can’t afford to ignore mobile anymore. Make sure that your content works well on all popular mobile devices.

Have your or your company had any difficulty scaling up its content marketing? What tips would you give to others ready to take that step? Let me know in the comments!

The Pitfalls of Scaling Content  Infographic

13 Jun 18:12

Here are the tech companies most likely to get acquired next, according to Goldman Sachs

by Rachel Butt

obama linkedin jeff wienerDealmaking in the tech industry is back with a bang. 

Microsoft is buying LinkedIn for $26.2 billion, while computer-security company Symantec is buying Blue Coat Systems for about $4.65 billion.

Goldman Sachs' research analysts, led by Jessica Binder Graham, on Friday updated the basket of companies the bank thinks could get acquired in the next 12 months. 

LinkedIn had a two ranking, meaning the research analysts thought it had a 15% to 30% probability of being involved in mergers and acquisitions activity.

Here's a list of those companies in the tech, media, and telecoms sectors with a one ranking, meaning a 30% to 50% chance of M&A in the next 12 months.

SEE ALSO: We just talked to Satya Nadella and Jeff Weiner about why Microsoft decided to buy LinkedIn

Acacia Communications

What: Acacia makes high-speed optical-networking products.

Market cap: $1.5 billion

Recent news: The company, based in Maynard, Massachusetts, went public on May 13. It marked the second tech initial public offering this year, and it was seen as a welcoming sign for some investors amid a quiet IPO market.



Lumentum

What: Lumentum makes and sells lasers and fiber-optics parts.

Market cap: $1.5 billion

Recent news: This company, based in Milpitas, California, reported revenue of $230.4 million for the three months to April 2, up 16% year on year. The company cited strong demand from China and a growing data center network.




Cornerstone OnDemand

What: Cornerstone offers an online enterprise training and recruiting service.

Market cap: $2.5 billion

Recent news: Cornerstone's revenue for Q1 2016 was $99.3 million, a 34% jump from the same period last year. 



See the rest of the story at Business Insider
13 Jun 18:10

Twitter is now under more pressure to sell — perhaps to Google (twtr, GOOG)

by Jim Edwards

larry page google alphabet ceoTwitter stock jumped on the news that Microsoft is to acquire LinkedIn as investors reconsidered longtime rumours that Alphabet, the parent company of Google, might now acquire Twitter. TWTR shares were up 6% at the time of writing.

Most people think Google looked at Twitter a long time ago and decided it did not like it. ("Larry doesn't give a f--k about Twtr," is the famous quote from Amir Efrati of The Information regarding Alphabet CEO Larry Page's attitude toward Twitter.)

But hold that thought.

Investors clearly think that Microsoft's acquisition of LinkedIn shows the way. LNKD holders will get a 49% premium on their stock from Microsoft. Ever since Jack Dorsey became the CEO of Twitter again, TWTR has been in the doldrums. The stock has been on a long downward trajectory since 2014. (Disclosure: I've owned some Twitter shares for a long time.) Apparently, the prospect of being acquired moves TWTR stock more than Dorsey's leadership.

So who might buy Twitter? The rumoured companies are:

And then there is the existing deal that Twitter has in place with Google.

Google has given Twitter's tweets greater prominence in its search results. And Twitter's advertisers can now use Google's DoubleClick Bid Manager and DoubleClick Campaign Manager to buy and measure campaigns on Twitter. The deal doesn't come into full fruition until Q3, Adam Bain told analysts on the last earnings call, but when it does it will let both Twitter and Google identify shoppers whether they are on mobile or desktop computers. Accurate cross-device measurement is a huge push for all the major tech companies right now, because they want to be able to follow you when you ditch your phone for your laptop.

Now, assume this joint venture goes well — Twitter and Google both get more ad revenue and, importantly, more user data. At that point, Twitter's stagnant user-base looks like less of a weakness. Despite its faults, Twitter is still the best place for breaking news and finding out what is happening right now. It is still better than Facebook for that "instant news" aspect (although Facebook is catching up). And, crucially, Google is nowhere in social.

Now Google is looking at a platform it can monetise, with 300 million active users, which could benefit from being boosted on Google's other platforms, and whose stock is very, very cheap.

It also offers Dorsey and his board an end to their yearslong struggle to get Twitter to the next level. 

Everybody wins.

Join the conversation about this story »

NOW WATCH: Mark Cuban explains why downloading Snapchat is a huge mistake

13 Jun 18:09

Amazon’s Alexa may gain ability to detect your emotions, remember conversations

by Kyle Wiggers

Amazon's Alexa voice assistant may soon get a whole lot more perceptive. Rumor has it that the company is working on a voice-based emotion-detection system, plus a mechanism that'll allow Alexa to remember past conversations.

The post Amazon’s Alexa may gain ability to detect your emotions, remember conversations appeared first on Digital Trends.

13 Jun 18:07

These high-tech bionic limbs are the future of prosthetics

by Danielle Muoio

Sophie de Oliveira Barata is making people think differently about prosthetics.

bionic man alternative limb project

De Oliveira Barata began the Alternative Limb Project in 2011, an organization that creates realistic and alternative looking prosthetics for amputees. Her designs are stunning, futuristic, and often high-tech. 

Scroll down for a closer look at the Alternative Limb Project's work.

De Oliveira Barata is a sculptor by trade who started the Alternative Limb Project in 2011 after working for medical prosthetic providers for nearly a decade.

She works with electrical engineers, metal workers, and spray artists to make her designs, de Oliveira Barata told Tech Insider. 



De Oliveira Barata said her goal is "to inspire people to think differently about prosthetics, the body, and its evolution from an artistic perspective."

Clients usually fund these designs themselves, either through sponsorship or insurance, de Oliveira Barata said.



She helped design this bionic arm that is worn by James Young, a 25-year-old biological scientist.

It comes with a flashlight, integrated lighting, charging ports, and a landing pad for a racer drone.



See the rest of the story at Business Insider
13 Jun 18:07

Why Microsoft buying LinkedIn is good for Pandora (P, MSFT, LNKD)

by Nathan McAlone

Tim Westergren

Microsoft's monster acquisition of LinkedIn on Monday has analysts looking at other potential M&A targets in the tech space.

Two that have jumped out are Twitter and Pandora, which have both built large user bases but whose shares have been under pressure recently. There have been rumors on and off that Pandora could be for sale, and last month activist investor Corvex demanded the company sell itself. CEO and founder Tim Westergren, who returned to the CEO spot in late March, has repeatedly said the company is not for sale.

But even so, the recent LinkedIn acquisition is good news for Pandora, according Albert Fried & Company. “This recent on-the-run M&A transaction should translate well to Pandora shares in our view,” analyst Richard Tullo wrote in a note on Monday. “Pandora on some metrics such as monthly users and minutes per users compares well to LinkedIn.”

Here is a comparison the two companies Albert Fried put together:

Screen Shot 2016 06 13 at 11.47.42 AM

Albert Fried has a $16 target on Pandora (the stock is currently sitting at less than $11), and thinks “Pandora shares are attractive and fluctuations could provide even better entry points.”

Pandora has been cited as an attractive acquisition target in the past. The streaming music company appeared on a recent Goldman Sachs ranking of the tech companies most likely to get acquired in the next year.

Under Westergren, Pandora is a company on the brink of a radical transition.

Two high-profile acquisitions last year showed Pandora’s ambitions to break beyond "internet radio," with a particular interest in on-demand streaming, which would put it into more direct competition with Spotify and Apple Music. Pandora in November bought key assets of the embattled streaming service Rdio for $75 million, and the company has said these are critical to its plans to move into the on-demand arena.

Pandora's stock is down a little over 1% in trading on Monday.

SEE ALSO: We just talked to Satya Nadella and Jeff Weiner about why Microsoft decided to buy LinkedIn

Join the conversation about this story »

NOW WATCH: Scientists just found out the Stegosaurus had a bite like a sheep

13 Jun 18:06

Step inside the 187-foot-tall apartment that's just opened in the Eiffel Tower

by Chloe Pantazi

Eiffel Tower apartment

Over 7 million people visit the Eiffel Tower each year, though few people can say that they've spent the night there.

But now, a lucky group of competition winners will get to stay in the iconic iron structure, where a new apartment was opened on June 10 by the holiday home rental site HomeAway for the Euro 2016 championship.

The accommodation site recruited the designer Benoit Leleu to construct a pop-up apartment that will remain open until the end of the football tournament in July.

At 187-feet-high, the 2,000 square-foot flat has two bedrooms, an "urban greenhouse," and jaw-dropping views of Paris, according to a press release from HomeAway.

The accommodation site chose four winners from all over the world after 150,000 entries were submitted. The winning guests will stay in the apartment on four nights: June 23, June 28, July 4, and July 8.

Didn't win a stay? Take a look inside the apartment below.

Designer Benoit Leleu transformed a conference room on the first level of the Eiffel Tower into a luxury flat in under 48 hours, according to HomeAway. There's also a football theme incorporated in the design, including a football table in the living area.

  



The apartment's football theme continues throughout, with a wide-screen TV to watch matches near displays of football shirts and trophies. Screenings of the match will be held here throughout the Euro 2016 tournament.



Guests can enjoy phenomenal city views over lunch or dinner, while there's a small kitchenette to make the space feel more like a home, a spokesperson from HomeAway said.



See the rest of the story at Business Insider
13 Jun 18:04

Microsoft explains why LinkedIn will be the opposite of the Nokia disaster (MSFT)

by Matt Weinberger

satya nadella

Microsoft may be excited about its $26 billion acquisition of LinkedIn, but it has a spotty history with gigantic acquisitions.

In 2012, Microsoft took a massive $6.2 billion writedown on the $6.3 billion acquisition of aQuantive. In 2015, just about a year ago, Microsoft took a $7.6 billion writedown on the legendary flameout of the Nokia acquisition.

But on a conference call with investors today, Microsoft CEO Satya Nadella said that LinkedIn fits in to the company's existing business way more smoothly than those past mega-deals

"Our executional handicap is a lot lower than any of the others we've talked about in the past," Nadella says. 

Furthermore, Nadella says that unlike Nokia or aQuantive, Microsoft plans to let LinkedIn operate independently as a wholly owned subsidiary, like Instagram and WhatsApp are to Facebook.

"Of course we'll learn from the past," Nadella says.

In fact, Microsoft CFO Amy Hood says on that conference call that the combination of LinkedIn and Microsoft assets will actually help the company blow away an important financial milestone for the company. 

Once the acquisition is complete, LinkedIn will be a part of Microsoft's Commercial Cloud business unit, which includes crucial and fast-growing internet-based business products like Dynamics CRM and the Azure cloud platform.

Amy Hood Microsoft CFO

Microsoft has said that it wants to see the Commercial Cloud unit hit a $20 million annual run rate by fiscal year 2018. The company is more than halfway there, breaking $10 million by April 2016. 

Now, Hood says that with the addition of LinkedIn's revenue, plus the social network's technology and product lines for HR departments and recruiters, Microsoft will actually beat that $20 million goal, ahead of schedule.

"That goal did not account for this type or scale of M&A," Hood says. "I think this should accelerate our momentum beyond what we've talked about as our goal beyond FY18."

With Microsoft turning its whole business to orient on the cloud, beating that milestone will be a nice feather in Nadella's cap. 

SEE ALSO: Here's what Microsoft CEO Satya Nadella told employees about the LinkedIn buy

Join the conversation about this story »

NOW WATCH: 5 insider tips for getting noticed on LinkedIn

13 Jun 18:04

5 Ways Writing a Book Builds Your Consulting Business

by Gerald M. Weinberg


If you're a consultant, or want to be, you need to read this blog by my colleague, Tonya Price: 

5 Ways Writing a Book Builds Your Consulting Business


I agree with all of Tonya's 5 points, and I'd like to point out one other way writing a book helps you become a successful consultant. Writing a book is not a one-way street, sending ideas from you to clients and prospects. Writing a book is a way for you to learn new ideas and new ways of expressing your ideas.

In my experience, if I want to learn some new material, the best way to do that is to write a book about it. Even if I never publish the book—even if I never even finish it—and don't achieve Tonya's five benefits, I still benefit by becoming a better consultant.

So, even if you're afraid that you don't write well enough to be a successful author, you ought to start writing a book about something you'd like to better understand. And, a good first step is to take advantage of the Write Stuff 2016 bundle of ebooks.

 5 ways to a book helps your consulting
13 Jun 18:01

How IoT can cool down a hot problem

by Cate Lawrence
ice

In October 2015, a refrigerator thermostat at Stanford Children’s Health failed, spoiling ten different types of vaccines and causing 1,500 kids to receive ineffective vaccinations. Unfortunately, failed thermostats are not an unusual issue and can cause ruined blood samples, vaccines and other important tests, costing millions of dollars and placing lives at risk.

To prevent lost bio samples, hospitals are now turning to IoT-monitoring platforms which deploy sensors to alert hospital and lab administrators of temperature irregularities in real-time, helping them fix the problem before it starts.

One solution to losing bio samples: connected thermostats

DataToWeb is an IoT monitoring platform from the company based in Montreal, Canada, that reduces the risk of losses, facilitate the management of regulation complacency and reduce workload related for the management of temperatures in hospitals, laboratories and pharmacies by automating temperature readings and alerting when there is a deviation.

I spoke to their CEO, Hakim Rouab, about their services. Like many startups, temperature regulation through IoT was not their original intention; rather, they pivoted from home energy monitoring.

Roubac was prosaic in admitting that it was great to being in a sector where we can provide a business solution to an identified problem. “We’re bootstrapped. we are very happy because we struggled with energy monitoring and now we are very lucky to have found a business where customers pay for the service that we provide,” he said.

20151028_161157

In discussing the need for temperature monitoring, he said:

“We’ve heard so many bad stories about what happens when a laboratory or hospital’s fridges and freezers are not at the right temperature. 80% of our customers previous to our services, were having a person go around several times a day (usually between two and four) and manually check the temperature of each fridge or freezer.

 There are significant consequences if hospitals fail to meet basic monitoring standards, and they cannot operate if they do not monitor their supplies accurately. There’s also the need in many instances to monitor room temperatures and humidity. Every time there is a big issue in hospitals, it is typically just before national holidays, we heard of an example when someone in maintenance just shut down the entire supply of Co2 for their incubators throughout the entire hospital.”

 20160525_090635

It’s easy to predict a media outcry if patients realized the need for “do-over” tests due to incorrectly stored samples. Roubac noted:

“When someone has a liver biopsy or blood sample, you don’t really want to ask ‘Can you come back for another test, we had the throw the first one out!'”

DatatoWeb also has the advantage of being within the health industry but not subject to the restrictions of regulation due to the nature of their data. “We don’t store patient data, only machine data, so we don’t require all of the regulation around privacy of people” he explained. “Our system is safe to hacking, people cannot access data from our server.”

I asked what would happen if their service failed, as technology is wont to do very occasionally.

“We’ve used the services of  Compose since 2015, we had problems with our previous databases, so we now use mongo DB,” he replied. “Because this is an alert system, we really don’t want to have downtime. We had downtime once with our previous database and it wasn’t great. Luckily, our customers typically use back-up.”

The next step for DatatoWeb is to scale their business outside of Canada and expand their customer base.

The post How IoT can cool down a hot problem appeared first on ReadWrite.

13 Jun 17:53

UK research suggests math could boost your sex life — even into your 80s

Almost half of the study participants in their 70s who answered questions correctly were sexually active in the recent past. The 28 per cent that struggled were not active
13 Jun 17:47

How to Impress and Score Your Next Freelance Writing Client

by Stefanie Flaxman

I have an affinity for service businesses. I love when people: Recognize that they possess specific skills that can help...

The post How to Impress and Score Your Next Freelance Writing Client appeared first on Copyblogger.

13 Jun 17:44

Here's what Microsoft CEO Satya Nadella told employees about the LInkedIn buy (MSFT, LNKD)

by Matt Rosoff

jeff satya reid

Microsoft just bought LinkedIn for $26.2 billion. Here's the letter Microsoft CEO Satya Nadella sent to employees about the buy:

Team,

I’m excited to share that today Microsoft announced a deal to acquire LinkedIn. You can see how Jeff Weiner, the CEO of LinkedIn, and I envision the opportunity ahead in this public presentation.

This deal brings together the world’s leading professional cloud with the world’s leading professional network. I have been learning about LinkedIn for some time while also reflecting on how networks can truly differentiate cloud services. It’s clear to me that the LinkedIn team has grown a fantastic business and an impressive network of more than 433 million professionals.

Given this is the biggest acquisition for Microsoft since I became CEO, I wanted to share with you how I think about acquisitions overall. To start, I consider if an asset will expand our opportunity — specifically, does it expand our total addressable market? Is this asset riding secular usage and technology trends? And does this asset align with our core business and overall sense of purpose?

The answer to all of those questions with LinkedIn is squarely yes. We are in pursuit of a common mission centered on empowering people and organizations. Along with the new growth in our Office 365 commercial and Dynamics businesses this deal is key to our bold ambition to reinvent productivity and business processes. Think about it: How people find jobs, build skills, sell, market and get work done and ultimately find success requires a connected professional world. It requires a vibrant network that brings together a professional’s information in LinkedIn’s public network with the information in Office 365 and Dynamics. This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you’re trying to complete. As these experiences get more intelligent and delightful, the LinkedIn and Office 365 engagement will grow. And in turn, new opportunities will be created for monetization through individual and organization subscriptions and targeted advertising.

Jeff and I both believe we have a significant opportunity to accelerate LinkedIn’s growth and the value it brings to its members with Microsoft’s assets and scale. In fact, when Reid Hoffman, the founder of LinkedIn, and I spoke about the opportunity for us to come together, he called it a “re-founding” moment for LinkedIn and an opportunity to reach the mission the company set out on 13 years ago.

The opportunity for Office 365 and Dynamics is just as profound. Over the past decade we have moved Office from a set of productivity tools to a cloud service across any platform and device. This deal is the next step forward for Office 365 and Dynamics as they connect to the world’s largest and most valuable professional network. In essence, we can reinvent ways to make professionals more productive while at the same time reinventing selling, marketing and talent management business processes. I can’t wait to see what our teams dream up when we can begin working together once the deal closes, which we expect will happen this calendar year.

A big part of this deal is accelerating LinkedIn’s growth. To that end, LinkedIn will retain its distinct brand and independence, as well as their culture which is very much aligned with ours. Jeff will continue to be CEO of LinkedIn, he’ll report to me and join our senior leadership team. In essence, what I’ve asked Jeff to do is manage LinkedIn with key performance metrics that accrue to our overall success. He’ll decide from there what makes sense to integrate and what does not. We know that near term there will be no changes in who reports to whom so no reporting relationships at Microsoft will change in that regard. This approach is designed to keep the LinkedIn team focused on driving results while simultaneously partnering on product integration plans with the Office 365 and Dynamics teams. During the integration, we’ll pick key projects where we can go deep together that will ultimately result in new experiences for customers. Kurt DelBene will lead the overall integration efforts at Microsoft in close partnership with Qi Lu and Scott Guthrie.

I’m on the LinkedIn campus today in California and will host a call for investors at 8:45 a.m. PT with Jeff, Brad and Amy – please join if you can. Following that, I’ll then spend the day meeting with the LinkedIn team. Tomorrow, I’ll host a special Microsoft employee Q&A – I hope you can make it.

So far, what I’ve learned about the LinkedIn team is how much our cultures share many of the same attributes. We both care deeply about individual and collective growth, and find deep meaning in the work we do to make a difference in our world. Together we’ll do just that.

While I’m in northern California sharing our vision to empower professionals, the Xbox team is in southern California at E3 sharing our vision to empower gamers. I encourage you to check out the E3 press briefing, which starts at 9:30 a.m. Pacific Time.

Finally, if you’re not on LinkedIn, join up now and start using and learning more.

Satya

SEE ALSO: MICROSOFT BUYS LINKEDIN FOR $26.2 BILLION

Join the conversation about this story »

NOW WATCH: This smart earpiece translates languages as they are spoken

13 Jun 17:43

Has LinkedIn Become Facebook? Only When You Let It.

by John W Hayes

6290003115_7788c41563_bHave you ever stood in a crowded room with someone who is trying to create a little hush so he or she can share an important piece of information? Perhaps he or she wanted to start a speech at a wedding, share an announcement at a party or deliver a presentation at a networking event. There are always people who insist on continuing to talk long after they have heard an initial request for silence.

And then it starts.

People in the crowd start demanding silence by delivering abrupt requests to “ssshhh,” “be quiet” or (and this is just plain rude) “shut up.” Before you know it, the sound generated by the well-meaning “ssshhh” mob becomes louder than the sound of the people who refuse to be quiet. Under the shelter of this new cacophony of noise, other people take the opportunity to restart their conversations, and the room gets even noisier.

Social Noise

LinkedIn, the business-friendly social network, is currently receiving a lot of criticism for the number of “Facebook-style” posts being posted to its users’ feeds. You know the sort of thing – links that suggest “if you can solve this math puzzle, you’re a genius” or clickbait that promises “to blow your mind.” And don’t get me started on the motivational memes inviting you to “climb success mountain” that should have been assigned to the trash when they were taken down from the walls of boiler house sales departments in the 1980s.

However, in my opinion, there’s one thing worse than the noise of pointless, non-business-related posts on LinkedIn, and that’s the comments about pointless posts on LinkedIn.

When you comment on a post on social media, it simply pours fuel on the original post, extending its reach and potentially polluting your own wider social network. In short, you are adding to the noise, just like the well-meaning noise-dampers who hiss “ssshhh” at a social event.

If you want LinkedIn (or any other social network) to retain its professional integrity, instead of shouting, “Keep these Facebook posts off LinkedIn,” you can do one of two things:

  • Ignore anything that’s not relevant to your business (in the same way you would ignore poorly targeted sales pitches and other everyday office distractions).
  • Unfollow anyone who doesn’t play by your rules or add value to your experience (in the same way you would unsubscribe from unwanted email marketing campaigns).

Business networks, like email lists, need nurturing – and occasionally cleansing.

Manage your networks effectively, and you’ll cut out the bulk of any unwanted noise. Remember, it’s the quality of your connections that counts, so don’t be afraid to cut out any deadwood.

This post first appeared on the iContact Email Marketing Blog.

Photo: Sheila Scarborough

13 Jun 17:42

Fixing Pharma’s Incentives Problem in the Wake of the U.S. Opioid Crisis

by Christopher Bowe
jun16-13-51119532

No matter how you look at it, there have been terrible, unintended outcomes from the introduction and marketing of next-generation prescription opioids. Since 1999, three years after OxyContin was unveiled by Purdue Pharmaceuticals, the rate of drug overdoses in the U.S. has quadrupled, according to the Centers for Disease Control and Prevention (CDC). Nearly half a million people have died, a number driven mainly by prescription opioid overdoses In 2014, more people died in the U.S. from drug overdoses than in any year on record at the agency, and at least half of those deaths were caused by prescription opioids.

Meanwhile, the amount of prescription opioids sold by pharmaceutical companies has quadrupled, despite no proliferation in the amount of reported pain. Dr. Thomas Frieden, director of CDC, and his colleague Dr. Debra Houry wrote in the New England Journal of Medicine in April that they “know of no other medication routinely used for a nonfatal condition that kills patients so frequently.”

But disastrous events often demand hard questions and unearth new perspectives. How did the making and marketing of drugs like OxyContin go so terribly wrong? And what can we learn from it? One place to start might be a fresh look at the incentive compensation structure in the pharmaceutical industry.

Generally speaking, executives are compensated for things under their control: moving projects along, the stewardship of a P&L, and for the company hitting financial targets. Sales positions can be incentivized by activities like calls on doctors and meeting regional sales targets. These incentives, when combined with the strategy of developing and maximizing the rapid and widespread use of OxyContin — an old drug with a new longer-acting dose — helped catalyze a massive uptick in doctors prescribing the drug.

As the Los Angeles Times recently reported, Purdue doubled its sales force when the drug launched. Reps were instructed to pitch OxyContin as a convenient answer to pain, with its 12-hour dosing a key selling point. Even when doctors began reporting that patients were complaining that the drug wore off much sooner, reps were instructed to reiterate to doctors that the 12-hour dosing was correct — and that one solution was to encourage physicians to increase dose strength instead of the frequency of taking the medication.  This created the potential for two negative outcomes. If the drug wore off sooner, patients could be at risk of anticipating future doses and beginning a cycle of dependence. And higher doses have a greater risk of overdose.

“Higher doses did mean more money for Purdue and its sales reps,” write Los Angeles Times reporters. “The company charged wholesalers on average about $97 for a bottle of the 10-milligram pills, the smallest dosage, while the maximum strength, 80 milligrams, ran more than $630, according to 2001 sales data the company disclosed in litigation with the state of West Virginia. Commissions and performance evaluations for the sales force were based in part on the proportion of sales from high-dose pills.”

The opioid epidemic is an extreme example of how development and marketing incentives drove sales, but ultimately raised the risk of potential addiction, overdose and death. “Successful” from a financial standpoint was not necessarily aligned with public health, to say the least.

So what if bonus compensation for both executives and sales employees was tied instead to potential real outcomes of a product while in clinical testing — like prolonging a person’s life who has cancer — and measured outcomes after it was approved and selling on the market?

Here’s roughly how it might work for the two core functions of the industry: R&D and commercial (sales and marketing). They typically hold sway over the decisions, direction, actions and success of the company. These ideas are by no means comprehensive, but they can help spark conversation about what needs to change.

R&D. When you analyze most proxy statements from pharmaceutical companies, it becomes clear that an R&D chief’s pay is determined in a quantity, process-oriented, ticking-boxes type of manner. Bonuses are awarded for moving programs along, some of which could have started years before this executive’s arrival. Ideally, these R&D projects would have been selected and maintained for their maximum ability to produce outcomes. But that’s often not the case.

Tying R&D — and CEO — bonus compensation to generating outcomes, in addition to internal measurements like project completion, could have significant benefits. It could prompt collaboration and agreement on achieving a good outcome — a health state of a patient resulting from healthcare — and metrics to define it, something pharma and physicians have clashed over in part because, well, it’s hard. It could drive early attempts and innovations to collect outcomes data for a new medicine (for instance, niacin drugs were big sellers until they were found, years later, to have little impact preventing heart attacks or strokes). It could also help drive the selection of drugs to test by the potential biggest impact on patients. Researchers — and executives like CEOs — could also receive bonuses tied to a drug’s observed number and degree of real-world outcomes seen in patients when it is used widely on the market.

Commercial. It isn’t news that rewarding sales volume rather than public health outcomes is a problem in the pharmaceutical industry. In fact, this is the root of nearly all the mistrust that clouds the industry’s operations, relationships, and reputation. The memory of hefty legal settlements for improper marketing and obfuscation of safety risks lingers, the biggest being GlaxoSmithKline’s 2012 $3 billion penalty over the marketing of antidepressants and a safety issue for a diabetes drug.

But there are ways that employee compensation around outcomes could change that. For one, it could instantly align each sales rep, and other commercial employees, with their customers — and with the patient. Suddenly doctors and pharmaceutical employees could be working to the same defined outcome goal for patients.

So, for example, part of the incentive compensation for the commercial team could be tied to real outcomes in patients in their territories. Certain territories will be more challenging — for instance socio-economic factors, diet, education, and behaviors like smoking could vary from area to area. Adjusting for that, a sales rep could have higher compensation potential for working in such areas and generating results.

Legally, salespeople can only talk about outcomes if they are approved in the drug’s label by the Food and Drug Administration — another reason to have more outcomes data determined in the testing phase. But commercial employees also could work to help improve outcomes through community outreach.

This reimagination of the sales rep as a health outcomes advocate would require some different skills and a new collaboration with health providers and insurers. Strategically, however, it could transform the value of the frontline sales force. Rather fighting for doctor time, the sales force could be a grassroots, public health army working and advocating for optimal health outcome in patients and the community. The opioid story, after all, might have been different if bonuses incentivized value instead of volume.

While much of this may sound difficult, tying employee compensation to positive outcomes for patients is not inconceivable. It may actually be following a trend: Physician compensation is increasingly connected to patients’ outcomes. Sooner or later, this change is going to affect pharmaceutical companies — by way of what doctors decide to prescribe given different incentives — whether they like it or not.

The tragedy from the success of Oxycontin — and other prescription opioids that followed — highlights the fact that pharmaceutical companies need to change to rebuild their trust with society. Aligning pay to a larger public health goal might just deliver that, or be a good first step.

13 Jun 17:42

How I Got Out Of Gmail’s “Promotions Tab Jail” (And The Tools & Techniques You Can Use If You’re In There Too)

by Ian

A couple of weeks ago I woke up to a nightmare scenario for any email marketer.

As I do most days, I tapped away to write an email I thought would be useful, interesting and fun for my subscribers. Job done, I shot off a test email to myself to make sure the links were all working.

5 minutes later, it hadn't arrived in my inbox. Another 10 minutes and it still wasn’t there. I sent another one.

Still nothing.

Then I spotted a notification that there were new emails in my Gmail promotions tab.

Surely not? Surely my own emails that I read on a regular basis aren't going into my promotions tab?

But yes, they were.

According to Email Deliverability expert Chris Lang, you get an 8-10% increase in opens and clicks simply by being in the primary tab rather than the promotions tab on Gmail.

That's a huge difference. And it's a direct hit on your revenue if email is a key part of your marketing.

Lang estimates that Gmail runs about 40% of the world's email behind the scenes. In my case, since my clients tend to be smaller businesses it's probably higher.

So ending up in the promotions tab is bad, bad news.

So why was I in there and more importantly: what could I do to get out? I started looking around for answers.

There are four potential reasons why your emails might suddenly start going into the promotions tab (actually, the truth is it doesn't happen suddenly – you just notice it suddenly. Since every email users experience is different, the chances are that you've been drifting into more and more people's promotions tabs over time and now finally it's happened in a way that's made it visible to you).

The first potential reason is a Gmail algorithm change. These happen al the time. Just like with its search results, Google is constantly tweaking the algorithm for where it places emails in the inbox to try to improve the experience of it's users.

Generally, Gmail does a great job. I rarely get any spam.

But the decision on what to classify as promotional and what should go in the primary inbox is less clear cut. My emails are gently promotional, but contain a lot of value (at least I think so!).

Gmail has definitely been tightening its algorithm recently, and that might explain the change. But it doesn't help me get out of the promotions tab.

The second reason you might end up in the promotions tab or spam folder is because of the system you're using to send your emails.

The servers and domain your emails are sent from build up a “reputation” over time with email services like Gmail, Outlook, Yahoo and others. If your email service is known for sending lots of spam or promotional emails generally, then that will damage your inbox placement.

This is the first reason many people jump to when they first have problems. They assume it must be a “deliverability issue” with their email provider (after all, they're probably not doing anything different themselves).

But the truth is that this is rarely an issue. All the big email marketing providers work on a regular basis to maintain their reputations with email services. They all have temporary blips, of course. But they simply wouldn't be around for a long time if they had consistent deliverability issues.

One quick way of testing out your email service provider is to check senderscore.org from Return Path.

You can put in the IP address of the servers your email is being sent from (look in the source of the email – for example by using “Show original” in Gmail). You'll see something like this which is from one of my test email addresses:

Gmail IP Address in original

You can then put that IP address into senderscore.org to see the “reputation” of the server. It shows you an overall reputation figure – (ideally you want to be in the 90s) and it also highlights if there have been lots of recent spam reports and other factors for those servers.

Here's an example report:

senderscore

The figures are just an indication and they show just one of very many factors that influence inbox placement. But if your email provider's score is below 80 I'd contact them to ask what they're doing about it.

In my case, the sender score of my Active Campaign server at the time was 97 – so it clearly wasn't that.

The third factor that can influence your inbox placement is, of course, the content of your email.

Gmail (and the other email providers) are trying to show the most relevant emails to their users. And one way they can look for relevance is by the content of the emails. At a simplistic level, there are words and phrases that indicate an email is spam (hopefully you won't be using any dodgy phrases about cheap watches and male enhancement pills!). But they also look for words that indicate promotional (but non-spam) content.

To some degree, you cant avoid this. Legally you're required to have an unsubscribe link in your emails, and the email services can use that to know that this is bulk email (along with the fact that it probably hits the inbox of hundreds or thousands of their users simultaneously). Emails with lots of images, or images and little text, or that talk about sales, discounts and ask you to “act now” will tend to be promotional ones, so the systems can pick up on that too.

So one thing you can do to try to help is to vary the content of your emails. Try not to use more than one image. Don't use words or phrases that are overly promotional (save those for the landing page you send people to). Have a decent amount of text in your emails (for example, most of the time I tend to have the content of my regular tips in the email itself rather than just doing a link to a blog post). Use your personal name rather than a generic business name as your From email address/name – and keep it consistent over time, don’t vary it. And don't put tons of links to all your social media profiles in your email. Keep it simple.

You can test the placement of your emails by setting up test email addresses on gmail, hotmail, outlook.com and other common email services and sending to them and tweaking your emails if needed before sending out to your full list.

An even better way of doing it is to use a service like G-Lock Apps. If you register for their service they'll give you a list of email addresses you can send to and they'll then monitor the inbox placement of emails you send and report it to you.

gmail-promotions-tab

It will also give you a summary of your server's sender reputation (using senderscore.org) and the results of passing your email through various spam filters (Postini, used by Gmail, Barracuda, used by many corporate systems and Spam Assassin. it even shows you what Spam Assassin tests you passed/failed so you can adjust your email if needed).

G-Lock Apps Summary

In my case, my content passed all the spam filters, it wasn’t too short and it didn't have any overly-promotional messages in it.

But just like when I sent the test email to myself G-Lock Apps were reporting that my email was going to the Promotions tab.

So that leaves the fourth potential reason: your “user engagement”.

“Engagement” is one of those generic phrases that gets thrown about a lot. But in essence, what it means is that the big email systems monitor how much the people who receive your emails interact with them. Do they open them? Do they spend time reading them? Do they scroll down? Do they ever reply to them? Do they file them away in a folder for safekeeping? Do they add you to their contacts list? Do they drag your emails into their primary inbox tab?

Or do your emails just sit their unopened and unloved?

Each of the different email providers has their own metrics and ways of judging whether your emails are being engaged with. No one outside of those vendors knows exactly what they look for, but representatives from AOL, Comcast, Gmail and Outlook.com gave a decent overall picture at the Email Evolution conference last year.

The general message is that if, overall, your emails aren't being opened and read, then it's going to be harder for you to get in the primary inbox in future.

And “overall” means system-wide. If a lot of Gmail users don't read your emails, then it's likely that your emails will go to the promotions tab or even spam folder for all (or at least most) Gmail users – even if some of them do open and read your emails regularly. When Gmail is deciding where to place your email it looks at the previous level of engagement of that specific user with your emails AND your average engagement across all Gmail users you sent to.

So what can you do to increase your engagement score?

Well, firstly you can encourage your new subscribers to “whitelist” your emails on their system and to drag any they find in the promotions tab or spam folder to their primary inbox. The more that do that initially, the more likely you are to end up in the primary tab.

Chris Lang has a free “whitelist instruction generator” tool you can use for free here. And there's a case study about it here.

Secondly you can make your emails more “engaging”. Great subject lines that combine benefits with curiosity will get people to open your emails.

Great content will get people to spend time reading and scrolling your emails.

Asking interesting questions will get people to reply to you.

All of this increases what the email systems see as engagement.

Thirdly, you can practice good “list hygiene”. If your subscriber haven't opened or clicked any of your emails in a while, email then to ask if they're OK (I do this after 30 days and I get a lot of wonderful, genuine interactions as a result). If they still haven't opened or clicked anything after another 30-60 days, consider decreasing the frequency of your emails to them. That means that overall, your average engagement will be much higher because you're emailing the less engaged less frequently.

Note, for most people I don't recommend completely deleting contacts if they don't seem to be engaging. Firstly, open rates aren't that accurate so there could be some people who are opening and reading (though not clicking) your emails that show up on your email system's stats as not opening your emails.

Secondly, in the sort of businesses many of us are in, the buying cycle can be very long. I've had many customers who have been quiet for years because the timing just isn't right for them, then all of a sudden something has become an issue, they start reading the emails again, and then they buy something.

That happens far too often for me to just delete their emails if they don't take action for 60 days. So decreasing the frequency for non-responders gets me the best of both worlds. High average engagement so that my emails get good placement, but still sending emails to everyone who signed up ready for when they “wake up”.

Finally, you can run periodic “drag me out of promotions” campaigns – and that's what I did in this case.

I selected the segment of my mail email list whose email address was at gmail.com (this isn't all the Gmail addresses on your list – for example mine is at ianbrodie.com but uses Gmail behind the scenes. Nonetheless, it's enough to “move the needle”).

Then I simple emailed them a request to move my email into their primary inbox if they found it in the promotions tab. And because I don't like to ask for favours without doing something good in return, I included a link to get a free download of one of my very best reports on becoming seen as an Authority in your field.

I got lots of people clicking to download the report. A good number thanking me for I. And a good number emailing me back to say either they'd moved me to the primary tab or that, for them, I was already there.

But the big question: did enough people drag me out of promotions to ensure that next time I emailed, most people would get the email delivered to their primary tab.

The answer?

Gmail Primary

Thankfully, for now at least, I'm out of Gmail Promotions Tab Jail!
 
Of course, I'll need to keep monitoring it, keep my emails high quality, keep asking people to whitelist me when they sign up.

And you can do the same. If you stay out of the promotions tab it'll make a big difference to how many people open and read your emails and ultimately, to how many people buy from you.

The post How I Got Out Of Gmail’s “Promotions Tab Jail” (And The Tools & Techniques You Can Use If You’re In There Too) appeared first on Ian Brodie.

13 Jun 17:41

Jeff Weiner should get almost $30 million for selling Linkedin (LNKD, MSFT)

by Julie Bort

Jeff Weiner Sun Valley

By selling LinkedIn to Microsoft, LinkedIn CEO Jeff Weiner, and the company's other named officers, will be making a pretty penny.

Microsoft agreed to buy the company for $196 a share in cash, a 50% premium over LinkedIn's closing price on Friday.

This is s a sweet deal for LinkedIn's shareholders.

The stock price crashed big time in February, when a weak financial outlook worried investors about the company's prospects for ongoing growth. 

Prior to the crash, the stock had been trading around $192. It fell more than 40% to $108 in the aftermath. It has since been been inching its way back up, to around $135.

Even so, the crash was so severe that the month after it happened, Weiner gave his $14 million stock bonus to his employees, donating it back to the stock option pool, to help with employee morale.

With the sale, Weiner is more than making up for the stock he gave to employees.

Weiner's total change-of-control compensation package was calculated to be worth about $32 million, including $2.5 million in cash severance, nearly $23 million in restricted stock units and another $6.4 million in stock options, in forms filed with the SEC earlier this year.

However the value of the stock was based on closing price on December 31, 2015, which was $225.08. The actual sale of the company was lower than that, at $196 share, which should reduce the value of his payout to about $28 million.

Of course, this payout refers only to the specific portion of Weiner's financials that are affected by the company's change of control terms. He may also have a other holdings in the company, which would now be worth significantly more than they were before the Microsoft acquisition.

Here's what LinkedIn said about executive payouts to the SEC.

Potential Payments Upon Termination Following a Change in Control

        The following table sets forth quantitative estimates of the benefits that would have accrued to our Named Executive Officers pursuant to each of their offer letter and change of control agreements if their employment had been terminated by us without cause or had been constructively terminated, each within 12 months following a change in control consummating on December 31, 2015.

 

                                 
            Intrinsic Value of
Accelerated
Equity Awards
     
Name                           
  Cash
Severance
($)(1)
  Benefit
Continuation
($)
  Restricted
Stock Units
($)(2)
  Stock
Options
($)(3)
  Total
($)
 

Jeffrey Weiner

    2,500,000     24,076     22,946,456     6,485,357     31,955,889  

Steven Sordello

    1,100,000     24,076     8,095,677     1,930,891     11,150,644  

Michael Callahan

    875,00     24,076     6,051,501     417,143     7,367,720  

Michael Gamson

    1,100,000     24,076     4,133,482     907,767     6,165,325  

J. Kevin Scott

    1,200,000     24,076     6,586,404     1,119,528     8,930,008  

(1) Cash severance payment consists of annual base salary and bonus at December 31, 2015. 
 
(2) For each Named Executive Officer the estimated benefit amount of unvested restricted stock units was calculated by multiplying the number of unvested restricted stock units by the closing price of our Class A Common Stock on December 31, 2015, which was $225.08. 
 
(3) For each Named Executive Officer the estimated benefit amount of unvested stock options was calculated by multiplying the number of unvested stock options subject to acceleration held by the applicable Named Executive Officer by the difference between the exercise price of the option and the closing price of our Class A Common Stock on December 31, 2015, which was $225.08.

SEE ALSO: We just talked to Satya Nadella and Jeff Weiner about why Microsoft decided to buy LinkedIn

Join the conversation about this story »

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13 Jun 17:39

8 Tips For Bringing Your Best Old Blogs Back From The Dead

by Brittney Ervin

If you’ve been in the content creation game for a while, you know how dramatically blogging standards have changed, even in just the past few years.

As you learn more about communication and reaching your audience, your tone and style have to evolve to better connect with them. As you learn more about SEO, you have to change your formatting and editing style to fit its guidelines (which change often, too).

Not only does updating your blogs ensure that you’re providing your audience with the most relevant information, it may also give you a boost with Google’s algorithm.

Blog updates can also save you a ton of time—instead of starting from scratch with ideas, research and creation, you can go in and supplement the research you’ve already done with relevant changes.

There’s really no losing here people!

To help you get started with your blog updates, check out these ideas for sprucing up and refreshing your best work.

1. Find Out Which Blogs Should Be Updated First

blog_views_screenshot.png

Naturally, you’ll want to update your highest-performing blogs first.

After all, if they’re already generating traffic and visitors, it’s important to give those visitors the latest and most accurate information possible.

If you have a CMS (Content Management System) in place, you should be able to access a dashboard that shows you which blogs have the most links, views and engagement through the life of your website.

Google Analytics can also provide in-depth information on which blogs are performing and which aren’t.

Once you’ve got a good arsenal of high-performing blogs ready to update, you can start the process.

2. Update Your Images

Example_of_pictures.png

If you’ve switched blogging platforms, updated your website or simply learned more about formatting and sizing, you’ll probably need to make some changes to your content’s images.

For instance, when IMA rolled out our new website, we found that a lot of our old blog images were double-posting on our pages. We also found that the sizing was way, way off on our new platform. These issues could have been a death knell in our blog traffic and Google ranking if we hadn’t gone in and made the necessary updates.

Even if you don’t have sizing problems, you might not have chosen high-quality, attractive images when you first published your blog. Either you didn’t know where to find great images, or there simply weren’t that many available for free use when you were initially creating your content.

In 2016, you’ve got far more options at your fingertips.

Check out these great resources for high-quality, beautiful and free images for use on your blog:

With these new archives of great images, you should never rely on a cheesy stock image again.

3. Check for 404s in Your External Links

If it’s been a while since you published a particular blog, some of the links you included in the content might no longer exist. This will shoot your viewer to a 404 page.

404 pages are bad for your content in a couple of ways.

First of all, Google’s job is to serve its users the best possible content that’s out there. If a user searches a term, Google’s algorithm is trained to find the websites that provide the highest-quality content on that search term.

If your website’s content is loaded with 404s, not only does it de-value your content for your viewers, it makes it less attractive to Google.

There may not be a cut-and-dried penalty for 404s, but leaving them in your content makes it less attractive, relevant and valuable for your viewers.

The easiest way to check for 404s is to download a plug-in to help you scan your pages while you’re updating.

4. Skim Your Content for Dated Information

content-1.jpg

We can only write the things that we know. So it makes sense that our older content reflects events, attitudes and trends that were relevant when we wrote it.

But you have to keep up with the times.

Skim your content for outdated references and information. Change any CTAs that link to outdated offers, promotions or content.

If your blog is locally-focused, it’s vital that you research current events in the area so that you can relay the most up-to-date information to searchers.

5. Don’t Alter the URL

It’s important that you don’t change the URL of your post. If you do, you will have created a new URL that could get your site dinged for duplicate content—a big no-no in the eyes of Google.

If you must, change the title of the post to make it more relevant to current information, but try to retain any important keywords. It is very important, however, that you leave the URL the same.

6. Make Sure You Add an “Updated On” Note for Transparency

update.png

It’s important that you viewers know that your content has recently been updated. A short, italicized paragraph at the beginning or end of your content will help maintain transparency and ensure that your viewers know exactly what they’re reading and the timeframe it applies to.

7. Check Your Formatting

If you haven’t updated your blog in a while, you might need to make some SEO-friendly formatting changes.

Make sure you have H2s in your content, and add H3s where it’s relevant.

See lots of blocks of text? Go through and break them up.

See a list of items in paragraph format? Go through and add numbers or bullet points to give your viewers some tasty lists to skim.

Bolding, italics and short sentences are also better for your reader. Make sure your blog capitalizes on opportunities to format well, and you can make your content much more valuable in the future.

8. Add More Images

In 2016, visual content is more important to page performance and engagement than ever before.

If your blog’s content is still wholly relevant, but you still want to make some beneficial updates, consider adding more images! Whether it’s a relevant infographic, a screenshot or just a high-quality photograph, visuals will help your audience engage with your content.

Your blog still has life in it yet…you just have to resuscitate it! These tips are a good starting point for improving the value and visual appeal of your best-performing content. Once you’ve made the necessary changes, your content will be more relevant and more attractive to your viewers.

The SEO For Blogging Checklist

13 Jun 17:39

Feature/Benefit – Or – Feature/Price

by Tibor Shanto

By Tibor Shanto – tibor.shanto@sellbetter.ca 

Every tribe has its myths, collective beliefs, and things they claim to believe, things they avoid or adhere to, for sales the concept of Feature/Benefit is a go to favourite. While some believe this mode of selling may be outdated, and have moved beyond, the essence of most sales conversations, for many, Feature/Benefit is still the staple of their approach. Usually supported by their marketing teammates, it dominates their selling style, messaging, content and approach. For those who have moved beyond the basic Feature/Benefit, it may seem odd, but I am willing to bet, based on daily encounters with sales people and sales organisations, that a good majority of people reading this are selling based on some iteration of the Feature/Benefit selling.

Benefits?

There are a number of iterations of Feature/Benefit selling that are quite effective. It all hinges on which Features you leverage, and more importantly to whose Benefit. Stating that a particular Feature allows the product to spew out 11% more of something per hour, or faster, or shinier, means nothing. More, better, faster, is all good and nice, but still very vendor centric, and speaks to their view of Benefit, usually versus another competitor, including the current state (Status Quo being you number one competitor).  Consistent high performers see that as a spring board to what really matters, the buyer’s objectives.  These objectives are rarely framed in features which can be mapped to the product or offering.  They are defined in outcomes, impacts and how achieving one set of business objectives, sets the buyer up to achieve the next one.  High performers frame the Benefit in the outcomes and the business possibilities available to the buyer when they reach their second and third set of objectives.  Buyers, especially Status Quo buyers, ones who have neither started or interested in starting a buyer journey, will engage if you can get them to believe that you can impact their objectives, which Feature is leveraged in doing that, is usually irrelevant to the buyer.

Features?

Taking it back a bit, often the problem is not just the Benefits highlighted, but the actual Features showcased. In many instances marketers and sellers are blinded by their relationship and proximity to the product they sold for a time, and even may have had a in it’s development and introduction to the market.  Features are introduced because they may have seemed cool internally, those close to the product, but added nothing to the clients’ experience. How many times have you seen upgrades, especially in web based products or services, that did nothing but allow the vendor to talk about the upgrade, while pissing you off because you have to relearn something that makes no difference from outcome point of view. A lot like the Febreze “nose-blind” commercial, what others removed from the product experience is not the same as those who spend all their time with it, and depend on it for their success.

Which Is What?

The only features that count are ones that drive buyer’s objectives, delivering impacts that benefits the buyer in their terms, not in terms of the feature.  It’s simple, if the Benefit is a stat, not a specific business outcome for the buyer, try again.  If the Feature was thought of internally by someone who thought it was cool but has never faced a customer, rather than based on buyer input, the sale will be decided based on Feature – Price, with no Benefit.  Back to the drawing board.

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The post Feature/Benefit – Or – Feature/Price appeared first on Renbor Sales Solutions Inc..

13 Jun 17:39

What worries the Bank of Canada even more than housing? China

by Kevin Carmichael
For sale sign in front of two houses

(Erik S. Lesser/EPA/AP)

Unlike many central banks, Canada’s monetary authority has little regulatory power over the banking system. It does have a bully pulpit, however.

In 2001, the Bank of Canada introduced the Financial System Review (FSR) as an outlet for its views on lenders and credit markets. For years, only the most dedicated of the Bank of Canada’s professional observers read the FSR. Yet it was always there—twice a year, in June and December—to send a message if policy makers felt the need to do so.

Last week, Bank of Canada Governor Stephen Poloz felt such a need.

You will have read by now that Poloz used the Bank of Canada’s latest FSR to try to stop home shoppers in Vancouver and Toronto from doing something stupid. “Fundamental factors underpinning housing demand in the greater Vancouver and Toronto areas are strong, but the rapid pace of price increases seen over the past year raises the possibility that prices are also being supported by self-reinforcing price expectations,” the central bank wrote in the FSR, which was published June 9. Poloz was more to the point in a press conference: “In these two areas we see a rate of price increase that would be very difficult to match up with any definition of fundamentals that you could point to.”

Jason Kirby of Maclean’s brilliantly described the Bank of Canada’s use of behavioural economics to warn of irrational exuberance in Vancouver and Toronto. Average home prices grew at double-digit rates in those markets over the past year, compared with single-digit increases in cities such as Montreal and Ottawa. Poloz’s approach to now had been a series of gentle nudges; raising housing prices and record household debt as concerns, but at the same time accepting that buyers and their lenders likely knew what they were doing. But something changed between the previous FSR in December and now. To borrow Kirby’s phrase, the governor switched to “central banking by sledge hammer.” Poloz slammed through the wall of noise that stands between the Vancouver and Toronto housing markets and anyone who might want to have a calm discussion about the situation. The Bank of Canada has created a baseline: there is something wrong with this picture:

Chart tracking the ratio of home sales to new listings in Ontario and BC, 2012–2016

What is to be done? Poloz wouldn’t say. He is a member of the Senior Advisory Committee, a secretive group of senior technocrats that advises the finance minister on financial policy. Poloz told reporters that any advice he had for Finance Minister Bill Morneau would be delivered through that committee, not the press.

That was another way of saying that Vancouver and Toronto are not the Bank of Canada’s problems. It is important to be clear about what the central bank did last week: it provided a public service announcement, not a warning that it is contemplating higher interest rates. The Bank of Canada describes excessive home prices in some big markets as a “vulnerability,” a vulnerability that has gotten worse over the past six months. But to become a problem, a weakness must be exposed—in the case of Canada’s frothy housing markets, by a recession or a spike in unemployment that triggered a wave of defaults. Poloz and his advisers actually have become more confident that they have steered Canada away from such a tragedy.  They are generally satisfied that ultra-low interest rates, a weak dollar and stronger U.S. demand has put Canada on a better track. The banks likely could manage a bust in either city; they would feel it, but their capital cushion is bigger than it was before the 2008 crisis and they are among the most profitable financial institutions in the world.

So what what might keep Canada’s central bank governor up a night? George Soros’s decision to end his retirement, perhaps. According to various reports, the 85-year-old Soros is spending more time with the managers of his family fortune because he dislikes what he sees in global financial markets. He is selling equities and buying gold and the shares of gold miners, including Canada’s Barrick Gold Corp. Earlier this year, Soros said China’s debt-fueled economy reminds him of the United States ahead of the financial crisis. An extended period of negative interest rates in Europe and Japan is another reason to be nervous. In theory, the policy should work, but has never been tried. There is no way to be certain about how negative rates have altered behaviour.

The Bank of Canada isn’t comfortable with what is going on in financial markets, either. It used the FSR to report that traders and investors in Canada say that it is taking longer to complete trades in fixed-income markets and that larger trades that used to go through easily now must be broken up into smaller bites, especially when moving corporate bonds. There could be a number of explanations: new regulations, negative interest rates in Europe and Japan, a shift in risk tolerance are a few possibilities. Regardless, the Bank of Canada is worried about liquidity in debt markets. That matters, because if investors are becoming less willing to hold debt, interest rates could speak in the event of a shock such as another bout of worry about the state of China’s economy and financial markets.

Financial markets are worried about China because its debt has surged to a record 237% of gross domestic product, according to the Financial Times. For every Soros, there is an analyst who will tell you that China is fine—that its high savings rates and relatively strong growth will allow it to easily manage its debts. Yet to achieve its growth target of an annual rate of 6.5%, the Chinese government is borrowing heavily to fund investment. “The question from a financial stability point of view is whether or not those measures, to the extent they encourage more credit and more investment, may not buy some more growth today, but increase the risk of some disruption in growth further down the road,” Carolyn Wilkins, the Bank of Canada’s senior deputy governor, said at least week’s press conference.

The Bank of Canada rates the probability of a financial crisis caused by sharp correction in housing prices as low. The likelihood that something could go wrong in China that would cause financial pain: medium.


MORE ABOUT REAL ESTATE AND THE HOUSING MARKET:

The post What worries the Bank of Canada even more than housing? China appeared first on Canadian Business - Your Source For Business News.

13 Jun 17:35

7 Dangerous Misconceptions About Sales and Marketing

by Carrie Dagenhard

Oil and water, bleach and ammonia, Paul McCartney and Kanye West—no matter how hard you try, some things will never work together. But if you want your business to be successful, your sales and marketing teams absolutely, positively need to come together.

And not just in the way that two fighting siblings pretend to make up in front of their parents while secretly planning to dip each other’s toothbrushes in nail polish remover (sorry, Sis).

It’s not enough to simply coexist. To exceed your shared objectives of filling your sales pipeline with highly qualified leads, building stronger client relationships and growing your organization’s ROI at unprecedented rates, sales and marketing teams need to bury the hatchet. And not just bury it, but set it on fire and run away to a new place where we can align around common goals and cooperate like the capable professionals we all know ourselves to be.

To get started forging a bond and marching arm in arm into heaps of revenue, we must first acknowledge and rid our minds of these seven dangerous misconceptions.

1. Anyone Can Be a Marketer or a Salesperson

via GIPHY

I’m not sure where the notion originated that marketing and sales are roles professionals fall into when their dream careers didn’t take off, but it needs to die a fiery death. To be successful in either profession not only requires advanced training, experience and passion, but you must also have the capacity to understand a wide range of other roles and departments.

While what goes on behind the scenes in a salesperson or marketer’s day may remain a mystery to the client, it’s our job to understand nearly everything the client does. We must be able to empathize with their challenges, interpret their pain points and know exactly how our organization’s product or service will meet their needs. We are professional problem solvers of the highest echelon. Put simply, inbound salespeople and inbound marketers are rock stars.

Now that you’ve finished patting yourself on the back, let’s take a look at the misconceptions we have about each other.

2. Salespeople Will Promise Whatever Necessary to Get Their Commission

via GIPHY

The notion that salespeople are beholden to nothing more than their close rate isn’t just an unhelpful generalization—it’s downright silly. A salesperson is responsible for creating relationships with prospects and ensuring the client is fully satisfied. They know over-promising not only frustrates the rest of the organization, it can jeopardize their personal reputation.

And even if your business model has sales dropping out of the process after handing off the account to development or support, the success of the client relationship is still of great importance to their position. A positive customer experience means a continued relationship, an opportunity for an upsell or an increased likelihood of referrals—and a negative one could come back to haunt them in myriad ways.

Marketers: If you feel a product or service is being oversold, keep in mind your marketing efforts contribute to the prospect’s understanding of your offering. By working together with the sales team, you can ensure both of you are appropriately managing expectations.

3. Marketers Don’t Know How to Spend Their Budget

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Sure, there may have been a time when allocating a marketing budget required a lot of guesswork. Before marketing automation, the marketing department had little visibility into what channels, campaigns or messaging yielded the highest return. Determining what worked and what didn’t often meant wading through call reporting or relying on customer surveys—neither of which were especially accurate.

Today, however, marketers have access to powerful and sophisticated technology. They can access data that pinpoints the exact moment when a prospect became a lead, when a lead became a customer and their entire digital journey along the way. In other words, they have access to plenty of data that helps them make effective spending decisions. But that doesn’t mean they don’t need a little feedback now and then.

Salespeople: You’re closest to the customer, which means you have valuable intel about what drives customers to buy. Sharing this wealth of knowledge with the marketing team can make all of your lives much easier.

4. Good Salespeople Can Sell Anything

via GIPHY

A good salesperson knows how to build relationships and connect with prospects one-on-one. They can quickly diffuse concerns, overcome objections and make their customers feel comfortable with their decision to buy. But that doesn’t mean they can walk into a business and hit a homerun on the first day. To be successful, salespeople need to be confident. And to be confident, they need to be experts on the product or service they’re selling. Without sales enablement, even the most skilled and accomplished inbound salesperson would flounder.

Marketers: It’s up to you to provide the sales team with the resources they need to convert prospects. From in-depth product information to sales collateral, you can arm them with an arsenal that will increase their chances of closing great deals.

5. Marketers Don’t Care About Client Relationships

via GIPHY

While marketers generally aren’t held accountable in the same way as salespeople for a prospect’s ultimate decision (for example, they don’t often have a commission-based pay structure), they still feel the pain of a lost customer. Keep in mind their success is not only determined by the number of leads they bring in but, like you, also the number of leads that convert. If they’re delivering a lot of prospects that don’t turn into customers, they may not be appropriately qualifying those leads.

Also, like you, they’re almost always in the position of proving their value to the leadership team.

Salespeople: If you feel leads are not adequately nurtured or prepared when they’re passed along, share this with the marketing team. Better leads and increased sales will earn you both a nod of approval from the C-suite.

6. Salespeople Don’t Understand Marketing

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In the inbound marketing world, the sales team knows how their pipeline is being filled—they know it’s not pure magic bringing ready and willing prospects into their midst. After all, the shift away from cold calling has offered them the opportunity to transform into educated consultants rather than pushy peddlers. Likewise, their new-and-improved position as a helpful adviser means marketing can be more personable and human. It’s a win-win for everyone, and it depends on salespeople understanding the buyer’s journey from inception.

Marketers: If you’re under the impression the sales team doesn’t fully understand your efforts, offer them some insight and allow them to shadow you for a few hours. To perform at their best, they need to know how prospects are educated before they become sales-qualified.

7. Marketers Don’t Understand Sales

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Marketers pride themselves on knowing everything they possibly can about their audience. They spend countless hours (and dollars) poring over research and data to analyze your buyer personas’ every move along the buyer’s journey. That means they’re responsible for understanding what it takes to convince someone your organization is the best possible option. While they may not share the same challenges you do in terms of communicating with customers directly, the process of converting prospects is certainly in their wheelhouse.

Salespeople: If you feel there is a disconnect between what marketers think they understand about the sales process and how you actually operate, take time to educate them. Remember, they’re data junkies eager for any and all information you have about the customer experience.

Can’t We All Just Get Along?

Without sales and marketing alignment, the entire organization suffers. Conversely, when they’re able to set aside their ill-advised judgments and misconceptions and work together, customers are happy, revenues flourish and everyone’s paycheck grows. Making the effort to understand each other and help the other improve in their respective positions is rewarded in the form of a healthy ROI and a happier office.

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13 Jun 17:35

Is Inbound Marketing Holding Your Business Back?

by Kevin Bobowski

Is Inbound Marketing Holding Your Business Back?

“Inbound” marketing is defined as marketers getting people to come to them, rather than marketers going out to get prospects’ attention. As practiced today, it relies heavily on content marketing (the production and distribution of content like videos, eBooks, blog posts, podcasts, and so on) and search engine optimization. Act-On defines it as “activities that are designed to attract the attention of customers and prospects with the purpose of giving them a reason to come to you.”

Inbound is an effective marketing tactic, but it’s not a replacement for a complete, balanced marketing strategy. It can be a terrific tactic for the first part of your buyer’s journey: buyers with pain points and needs do research, and inbound marketing gets your pages (and brand) found. But getting found is only the beginning.

The risks of inbound-only

The biggest risk in focusing solely on an inbound marketing strategy is that you put yourself more in a position to be chosen, and less in a position to choose. This sets you up to acquire a lot of customers who don’t fit your ideal customer profile. They consequently may not be able to utilize what you have to offer, may be expensive to service, and may not stay with you very long. This puts you into what finance professionals call “sloppy growth” (gaining lots of mis-fit customers, with attendant high churn levels) which is expensive in many ways – not least the opportunity cost of missing out on your likely best-fit, high-profit customers.

Top Inbound Marketing Tactics in Use

What is outbound marketing?

Historically, “outbound marketing” was programming that was pushed out, as in email marketing, direct mail, broadcast ads, pop-up and interstitial ads, and so on. In recent years, technology has changed outbound profoundly, allowing marketers to create and deploy increasingly targeted, personalized programs. This in turn greatly increased outbound’s effectiveness. Automating outbound marketing also meant that account-based marketing could be scaled for the mid-market, making it no longer the exclusive province of enterprise companies.

Top Outbound Marketing Tactics in Use

What outbound marketing tells your prospects about you

If you are selling an ongoing service or subscription (such as SaaS), or a high-value product that has a warranty or will need maintenance, it’s likely that at some point that buyer will need to evaluate how dependable and trustworthy a partner you will be. Will you proactively help them? Or will you be missing in action?

How you manage your outbound strategy and tactics will show them what it is like to work with you; it will set their expectations for how much attention you will pay and what your service will be like.

For some companies, and some products, and some services, this stage of outbound marketing is where you win, or lose, your buyer.

Where and how account-based marketing fits in

In some ways inbound marketing takes a bit of cost and time to get started. But once you get started, you’re not spending a lot of money on acquiring these customers, they’re coming to you. And that’s great, except … you’re then dependent on who’s coming in to you. Those people who are coming in to you may not be your ideal customer or your ideal target.

On the outbound side, it’s almost the reverse. You have to be strategic and define who is your target company, what do they look like, what are their characteristics, and how do you go find them.

Once you’ve defined your ideal customer company and identified your ideal accounts, you can think about who your target buyer is, what are their pain points, what are their challenges.

This is, in my opinion, where and why account-based marketing has become so popular and relevant. It’s tied to truly understanding which accounts, and which people inside those accounts, to market to. It relies on researching, and proactively connecting with, account contacts beyond the first one to fill out a form.

Account-based marketing is very effective and very proactive, and it relies almost entirely on outbound marketing to achieve your goals.

Making the case for balanced marketing in a B2B world

In most sales, inbound and outbound tactics are complementary and inextricable from the process, for a successful outcome. Here’s a B2B scenario, generalized to fit almost any company and simplified to fit this blog post.

It’s not a playbook, just a fictionalized representation. All the actions in green are inbound. All the actions in blue are outbound.

example scenario of engagement that required both inbound and outbound strategies to close

Here’s the point: while inbound helps attract new leads and introduce new products, that’s just the start of the buyer’s journey. A typical buyer prefers to begin the journey alone, and take it much of the way there alone. We’ve all seen the numbers about how far the buyer gets through the process before agreeing to connect with a sales person.

But helping that buyer complete the journey requires an outbound marketing strategy tailored to the persona or to the account, whichever is appropriate for the particular situation. You do need to reach out to them proactively with information and education. You should help the buyer learn what they need to know, so they can make the best buying decision for them.

After the sale, use outbound marketing tactics such as drip email programs for onboarding to help your customers become successful. Use outbound tactics to support satisfaction initiatives such as surveys.

Inbound or outbound? What real people think really drives business

At Act-On, we’re always interested in what actual people think. So we partnered with Demand Metric Research earlier this year to ask working marketers how they were using inbound marketing and outbound marketing, and what their results were.

Here’s what they told us:

  • Most marketers (84%) say both inbound and outbound drive the business
  • Some companies say inbound or outbound alone drives the business yet they still derive sizable chunks of revenue from both sources. Those who answer:
    • “Inbound alone drives our business” still report 25% of revenue from outbound

“Outbound alone drives our business” still report 36% of revenue from inbound

Some Companies say Inbound or Outbound alone drives the business

  • Budget allocated is tipped a bit toward outbound (48%) over inbound (44%)
  • Revenue attributed to each is about equal (43% outbound, 41% inbound)

Beyond just lead acquisition to “brand, demand, expand”

Real life is a lot more complicated than just being an inbound marketer or an outbound marketer. We believe that the ideal is for marketers to take a holistic approach, and really build out a balanced marketing program.

The marketer who knows just when to deploy inbound or outbound marketing tactics will be more successful in the long term. They’ll be more successful because they’re thinking beyond just lead acquisition; they’re considering how to continually build the brand, and they’ve thinking about how to cement and expand those valuable customer relationships.

A marketer who is empowered with the tools to be successful in those three strategic areas of focus – demand, brand, expand – will be able to do the best work of their lives.

Balance is the answer

We have a number of regional events for customers and prospects, and at these a lot of people ask me questions like, “Should I really be practicing inbound marketing? Should I be doing outbound marketing?” My answer is usually some version of “You need to apply a balanced approach to marketing. Inbound marketing is effective. Outbound marketing is effective. At the end of the day it’s all about … marketing.” Balanced marketing.

You can, and should,integrate inbound and outbound tactics to serve the entwined goals of brand, demand, and expand, knowing that each tactic, and each stage, will complement the next.

Tips for Integrating Inbound & Outbound

In conclusion…

To be an effective marketer you have to be really, really balanced. You need to be balanced in thinking about how you drive and build brand awareness, you need to be balanced in thinking about how you drive demand, and you have to be very balanced and thoughtful about how you retain your customers. And you need to balance the right amount of inbound marketing with the right amount of outbound marketing for your company, for your purposes.

Want to find out whether you lean toward inbound marketing or outbound marketing? Take our amusing (but insightful) 10-question assessment to discover your inner marketer.

In recent years inbound marketing has received much media attention as an effective stand-alone marketing strategy. While inbound surely is an efficient portion of an overall marketing strategy, we set out alongside Demand Metric Research to find out if inbound tactics alone are really enough to drive a business. Download now to get the inside scoop on our insights about the symbiotic relationship between inbound and outbound marketing.

13 Jun 17:35

7 Must-Watch Metrics to Validate Your Marketing Efforts

by Will Kerschbaum

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You’re creating great content that answers your personas’ greatest pain points. You’re attracting visitors with well developed keyword strategy, and you’re circulating those posts within relevant verticals to get your posts discovered. But then what? How do you know your audience is actually engaging with the content you write? What metrics show you real engagement?

Here are seven of the most important metrics you should be watching to validate your marketing efforts.

Scroll Depth

If YouTube metrics like Average Minutes Watched can help you determine ideal video length, or what content is boring vs informative, Scroll Depth will give you equivalent insights for your blog posts.

scroll depth chart

Create segments to examine a subset of traffic based off scroll depth (e.g., scroll depths of 25%, 50%, 75%, 100%) and set up advanced filters to only show blog posts. This gives you a snapshot of your overall blog performance. Enable different scroll amounts to drill down on deepest or shallowest scrolled posts, to uncover blogs that people are scrolling through or dropping out of.

Also, these segments are applied to Google Analytics as a whole, allowing you to see scroll depth by

  • Screen size
  • Browser
  • Geography
  • Demographics
  • Page load speed
  • And more

Setting up scroll depth reports requires a little bit of work, but it’s not terribly complicated. For WordPress blogs there are some plugins available like WP-Scroll Depth by Parsnip, or you can use Google Tag Manager to get going. Most solutions require jQuery 1.7+. HubSpot supports jQuery 1.7x (make sure the proper jQuery version is selected under Content Settings).

Pro tip: For even deeper reporting on these segments, you can create custom tables and graphs with the new Google Data Studio. Check out this post that talks about creating custom comparisons above and beyond what’s available in Google Analytics out of the box.

Time on Page/Bounce Rate

Bounce rate as a stand-alone metric has the potential to give unreliable information. By comparing it to time on page we can identify if a high bounce rate is illustrating low engagement with content or a missing next step. If a visitor is on a page for a long time, like over two minutes, then bounces, what we’re seeing is a missing next step, not bad content.

While time on page shows how much time someone spends reading your post, bounce rate shows a session that ends without an interaction hit (basically, any kind of interaction that sends data to Google Analytics). There is a common point of confusion in what a bounce rate is. Sessions with an interaction hit are not limited to sessions with multiple pages viewed.

Total Views

Total views is the total number of times a page has been viewed during the period you’re tracking (month, quarter, year, etc.). It is NOT the number of visitors to a page. This metric can give insight to a page’s quality and value—although you can also get high pageviews if your visitors can’t find the information they’re looking for.

Flag the pages with the lowest total views and analyze them to see why they might be performing so poorly. Are they hard to find? Do they need some SEO love?

Pages Per Session

This shows you how many pages your visitors viewed before they left your site. This metric is related to bounce rate, but it gives you a bit more granular information. You could have an extremely low bounce rate, but that could give you a false sense of success if you don’t also look at your pages per session. If visitors are only clicking through to one more page before leaving, you’re not giving people the answers they’re looking for.

A low bounce rate and a high pages-per-session number shows that your visitors are getting a lot out of your content. The more they explore your site, the more interested they’ll be in buying from you.

RSS/Notification Subscriber Count

This metric tells you how many RSS and email subscribers are following your blog. Blog followers are important, because they’re the people who have found your content valuable enough to follow over time. They see you as a thought leader who provides the answers they’re looking for.

Your subscribers may also be farther through the sales funnel than other visitors, so tracking this metric over time can give you some insight into your success in nurturing leads. Pay attention to year-over-year numbers so you can identify trends better.

Open/Click Rate for Blog Notifications

It’s one thing to have people subscribing to your blog, but if they never open the notifications they get, that’s an indication that they’re no longer interested in you—they just haven’t bothered to unsubscribe yet. The open/click rate shows you how many of your subscribers are still interested in your content.

If you’re seeing lower numbers than you want, you might want to do some A/B testing on several variables, such as your headlines, publishing schedule, or featured images (one at a time, of course). One thing to consider is whether you’re sending your notifications at the right time. SeventhSense is a terrific tool that can help increase open rates and CTRs simply by optimizing your send time.

Social Shares

Social shares give you a view into specific content that your audience really loves. We’re wired to share what we’re excited about, so this is a helpful metric to pay attention to.

Note your highest and lowest performing content and analyze the content that gets the fewest shares. Make changes with A/B testing and track the results over time.

No single metric will give you a good understanding of your marketing efforts, but this combination of metrics will help you get a fuller picture of your inbound marketing success and areas for improvement. Remember, inbound is a marathon, not a sprint. Make small adjustments over time and track your progress. Some of your changes could take a few months to show their results.

Download the Cooking with Inbound eBook