When Different is Better

By Patrick Mahan

Taking on the well-established, industry leader? Don't try to be BETTER than them. Aim to be DIFFERENT.

History shows this tactic works better than trying to beat the leader at their own game. Southwest Airlines is a good example. They entered a competitive space dominated by Delta and American Airlines. Now they have become the envy of the airline industry.

Rather than asking: "How can we do the exact same thing as Delta and American Airlines, but better?" they asked the better question: "How can we be different?" And what a difference that has made.

By focusing more on being DIFFERENT and less on being BETTER, ironically, Southwest has made being different, better!

Now take a look at your own business... are you focused on beating the competition at their own game, or differentiating yourself?

Sometimes, running in the OPPOSITE direction is better than trying to catch up and overtake your competitors.

Do you have any examples of this from your own experiences?

Golden Rule of Email Marketing

How to increase your email open rates and minimize unsubscribers.

By Patrick Mahan

Email marketing is one of the most effective and personal forms of marketing.

Why?

Because not everyone reads your industry's publications looking for your ads. Not everyone watches television at the time you run your commercials. Not everyone listens to the radio or drives past your billboard. Not everyone subscribes to your blog's RSS feed or checks your Facebook Page or visits your website each morning. But ... everyone checks their email inbox.

And that's why email marketing is so powerful. However, as they say, "With power comes responsibility." And your responsibility is to NOT wear out your welcome.

Powerful Marketing Lesson from Miracle on 34th Street

By Patrick Mahan

Miracle on 34th Street is not only a classic Christmas movie, it's also one of the most powerful marketing lessons of all-time.

In the movie, Macy's department store discovers their Santa Claus is sending customers to competitors. If Macy's doesn't have the item, or if a competitor sells it for less money, Santa Claus tells the parents where they can go to get it.

This outrages the manager of the toy department. But when Mr. Macy receives hundreds of telegrams from thankful parents expressing their gratitude for placing customers ahead of profits, Mr. Macy quickly embraces the radical new policy. The store becomes the talk of the town and sales shoot out the roof.

This is a powerful lesson in customer service, the power of word-of-mouth marketing, and the impact front-line employees can have on the success (or failure) of your brand.

Below is the dialogue from the movie...

Mr. Macy speaking to his executive team:

"On the face of it, I admit this plan sounds idiotic and impossible. Imagine, Macy's Santa Claus sending customers to Gimbels. But, gentlemen, you cannot argue with success. Look at this. Telegrams, messages, telephone calls. The governor's wife, the mayor's wife... over 500 thankful parents expressing undying gratitude to Macy's. Never in my entire career have I seen such a tremendous and immediate response to a merchandising policy. And I'm positive, if we expand our policy, we'll expand our results as well. Therefore, from now on, not only will our Santa Claus continue in this manner, but I want every salesperson in this store to do precisely the same thing. If we haven't got exactly what the customer wants, we'll send him where he can get it. No high pressuring and forcing a customer to take something he doesn't really want. We'll be known as the helpful store, the friendly store, the store with a heart, the store that places public service ahead of profits. And, consequently, we'll make more profits than ever before."

Are you brave enough to implement this "customers first" strategy? Or do you believe this stuff only works in the movies?

Marketing Lesson from The Master of Suspense, Alfred Hitchcock

By Patrick Mahan

In the new movie, Hitchcock, Anthony Hopkins plays the role of Alfred Hitchcock, the Master of Suspense, in a behind-the-scenes look at the making of Psycho.

I saw the movie today at the old Kentucky Theater downtown. (If you're gonna watch a movie about Hitchcock you might as well watch it in a theater built in 1922. Something about it adds to the experience).

Hopkins was brilliant as usual. And the movie was pretty fascinating. Several things I didn't realize...

The Perfect Subject Line for Emails

By Patrick Mahan

Every marketer is looking for the perfect email subject line to increase open rates.

Lots of How To articles have been written on the topic. Most recommend writing subject lines that invoke curiosity. Or ask a question. Or speak directly to the reader. Or announce breaking news.

One research study concluded that the most successful subject line of all-time was the phrase: "You are not alone."

But what if we take an entirely different approach?

We spend our time and energy trying to craft creative (and sometimes deceptive) subject lines in an effort to get more people to open our emails.

But here's the thing ... you should be more concerned about the NAME that appears in the "From" line and less concerned about the CONTENT that appears in the "subject" line. 

I receive newsletters from several authors that I have come to know, like and trust. When I see their name in the From Line, the Subject Line has little influence on my decision to open their email. 

So... as usual, it all comes down to building a reputation for yourself (and/or your company) as someone people know, like and trust. Develop a reputation for delivering content that is personal, timely, relevant and valuable.

When you focus your efforts on becoming someone of value, offering something of value, then you'll discover the "subject line" is the least important part of your email marketing strategy.

Is it the Mousetrap or the Cheese?

By Patrick Mahan

Every business wants to build a better mousetrap, but what they really need may simply be a different kind of cheese.

How to Grow Your Business the Seth Godin Way

By Patrick Mahan

Seth Godin is a marketing genius. Pick up any one of his best-selling books and it will change the way you think about marketing forever.

I found a video on YouTube, an interview in which Seth talks about how to make your small business indispensable. It is packed full of game-changing tips that will help you take your company to the next level. It's also a great primer if you've never read any of Seth's books, as it gives a brief overview of some of his most important philosophies.

I've included the video at the end of this post so you can watch it for yourself. But first, I'd like to share with you some of the key take-aways from the video.

As Seth explains, the old way of marketing is broken. The old way, "Interruption Marketing", was all about standing on the mountain top and broadcasting your message to the masses and hoping to capture their attention while they were busy doing other things. The theory was: If you yelled at people loud enough and often enough, then you would make enough money to pay for all that yelling.

"[Marketers were] yelling at people who didn't want to hear from them about stuff they didn't want to hear about." - Seth Godin

But today, technology has changed everything. People can screen their phone calls with Caller ID. They can skip television commercials with tools like TIVO. They can block internet pop-up ads. And SPAM filters help keep annoying marketers out of your email inbox.

Yet it seems that the harder consumers try to lock marketers out, the harder marketers try to pick the lock!

Think about how misguided that strategy is... If someone slams the front door in your face, then they're going to be really annoyed when you start knocking on the back door! And that's what a lot of marketers are essentially doing. Trying to beat the system. Trying to invent clever ways to "slip past the doorman".

Well, guess what? People don't like it! They've made that clear. So quit marketing to people in ways they don't like to be marketed to!

Personal, Timely and Relevant

As Seth says, your message must be "personal, timely and relevant." When you craft your message in a way that speaks directly to your prospect (like a one-to-one conversation vs. a public broadcast) and you deliver that message at a relevant time (like a plumber offering a coupon to a new home owner) people will appreciate that. And by giving them something of value, they are much more likely to grant you permission to continue marketing to them—as long as you don't violate their trust (by sending impersonal, poorly timed, irrelevant messages).

So earning permission is crucial. It's the equivalent of being invited into someone's home. And it's the polar opposite of the old, broken down "Interruption Marketing" strategy. You can learn more about this important distinction in Seth's landmark book, Permission Marketing. It will change your entire approach.

So how do you grow your business?

The key, based on Seth Godin's principles, seems to be a three-pronged approach:

1. Create a remarkable product or service that people like, trust and believe in
2. Wrap it in a story that is worth telling
3. Attract a tribe of like-minded individuals that will tell your story, spread the message, and attract more people into the tribe.

Read that list again. (I believe there was a carpenter who used a similar strategy about 2000 years ago with incredible success.)

"If you can lead a tribe, then the marketing will take care of itself." - Seth Godin

The tribe will spread your message for you (as long as you have a message worth spreading ... a story worth telling). It's word-of-mouth marketing at it's best.

"Turn strangers into friends, friends into customers, customers into salespeople." - Seth Godin

Make a Connection

Large businesses can afford to spend millions on mass marketing. Small business don't have that luxury. But they do have a distinct advantage. They're more human. And people like to connect with other people, not a faceless corporation.

Apple has been so successful thanks to the leadership of Steve Jobs. He gave Apple a human face. He created a brand image—a story—that Apple is created "by people, for people." As a result, people can connect with Apple in a way they can't connect with a corporation like IBM.

What about your company? Does it have a human face? Or is it just another impersonal, faceless corporation? Have you ever noticed that at the center of most great companies is a charismatic, highly-visible leader? A face people can connect with?

Tribes Don't Have to be Big to be Effective

"If you have 1000 true fans and those 1000 people are willing to drive across the country to watch you perform and those 1000 people tell their friends, then that's enough to make a big impact." - Seth Godin

How to Create a Tribe

Rule #1 is to be a person. Be authentic. Show off your personality. Tell the truth. Create remarkable products / services that people want. Things they genuinely want because they want them... not because you pushed it on them.

Rule #2 is ... Don't try to be all things to all people. A tribe is a group of like-minded individuals. And tribe members want to feel like they are members of a club. They want to be "insiders". And as Seth says, in order to have insiders, you must have outsiders. That means, you must be willing to say that your product or service isn't for everyone. If you play it safe and try to be all things to all people—and if you don't want to risk alienating anyone—then you'll find yourself standing in the middle of the road. And the middle of the road is where you get run over.

You must go to the edge. Be extreme. Don't be just another bland, vanilla brand that caters to the masses. It's okay if some people HATE your product, as long as a tribe of people LOVE it. And as long as you remain true to that tribe and continue weaving a story that your tribe members will evangelize (not just on your behalf, but on their behalf as well).

Social Media's Role

In the following video, Seth says there is good news and bad news regarding the rise of social media. The bad news is too many marketers are using social media as another way to SPAM people—don't do that! Social Media is not another channel to yell at people. Instead, use the power of social media to build a social network—a gathering place for your tribe.

The Interview

Now feel free to watch this video featuring Seth Godin. This is an interview I found on YouTube posted by BusinessZone.co.uk editor, Dan Martin.

Video link http://youtu.be/3vzuLbaMAF8

Clearly, I'm a big fan of Seth Godin. I've read most of his best-selling books and plan on reading the rest. I hope I've done justice to interpreting his marketing philosophies in this blog post! And I hope you'll find some of this useful.

Are you a fan of Seth Godin? Have you been able to implement any of his strategies into your business plan? I'd love to hear your comments.

A Priceless Marketing Lesson From My 18-month-old Niece

By Patrick Mahan

Marketing gimmicks don't have to be expensive to work. Take this for example...

Yesterday, we took our 18-month-old niece to Firehouse Subs for lunch. She ordered a kids' meal, which was served inside a plastic firefighter hat. Pretty simple. Pretty obvious. But pretty smart.

Why? Because that plastic hat—which only costs about 25 cents to produce—is still hanging out in my garage. And even after we throw the hat away, the picture we took of my niece wearing the hat will last forever.

What's the marketing lesson here? Two things...

1. Give your guests/customers/clients a "takeaway"—something that will trigger them to think about you later when you're not around.
   
   
2. You don't have to spend a fortune. While so many companies are ineffectively spending millions of dollars on mass media (television, radio, print ads), Firehouse hit a home run with a 25-cent plastic hat.

Now it's your turn ... What "takeaway" can you give your customers? A souvenir, a token, a gift, a prize—something that they will stumble across a week from now, or a year from now, and cause them to think about you.

BONUS TIP: If you want to get even more mileage out of this idea, make your takeaway "photogenic". That is, something that people are likely to take a picture of and share with their social networks. In this case, we took a picture of our niece wearing the Firehouse Subs hat and posted it on Facebook. And now, lots of people have seen that little red hat... not a bad return on a 25-cent investment!

Power to the People

By Patrick Mahan

The rise of social media sites, like Facebook, have changed business forever. Those who think "it's silly" or a fad or a waste of time will be left in the dust.

Your competitors realize the importance of social media and are working right now to figure it out.

Here's the bottom line. In the old days, when a customer was thrilled - not just satisfied (big difference) - they would tell 3 to 5 of their friends. On the other hand, if they were disappointed (pissed), they would tell about 5 to 7 friends.

Today, however, the game has changed. Completely. Totally. Forever.

Social media has given consumers a platform and put a giant megaphone in their hands.

The latest research says that Facebook's 800 million users have an average of 245 "friends" each. So now, when a customer has a positive or negative experience with your business, what happens?

They post it on Facebook. Or Tweet it to all 245 of their friends. And if their story is interesting or shocking or compelling, then those friends might share it with their friends. And on and on.

This is something business owners have never faced. Sure, it's the ultimate form of word-of-mouth, which has been around forever, but now it's amplified and much more powerful than ever before.

This can be good news or bad news for your business depending on the kinds of experiences you're providing.

The days of a customer calling your service department to voice a complaint are fading fast. Now, complaints are aired in public (on Facebook) and you must be ready to deal with it. It's scary, but it's better than people talking bad about you behind your back. If it's out in the open, at least you have an opportunity to resolve the problem.

And it could be a golden opportunity. When prospects see how well you handle complaints - and turn unhappy customers into loyal customers - it strengthens their trust. It shows you truly care.

It's time to embrace social media. It's not a fad and it's not going away. It can be your friend or your foe.

Remember this... people like to do business with their friends. And social media gives you an unprecedented opportunity to strengthen and grow your network of friends. And... tap into their network of friends.

It's an inside-out marketing approach based on word-of-mouth, referrals and recommendations, as opposed to the old "spray and pray" mass marketing approach of casting a huge net and hoping to reel in a few fish.

As best-selling author and marketing guru Seth Godin says, the ultimate goal is to "turn strangers into friends and friends into customers". Social media allows you to do that like never before.

How to Avoid Becoming a Commodity... the Starbucks Way

By Patrick Mahan

Are you afraid that your product/service is becoming a "commodity"?

Remember this... coffee was basically a commodity until Starbucks came along and turned it into an experience.

How do YOU avoid becoming a commodity?

By taking a page from the Starbucks book and creating an extraordinary, emotional experience around your product/service. An experience based on over-the-top, five-star service. An experience that engages more than just one of the senses.

(Think about how Starbucks uses sights, sounds, smells and tastes to craft a remarkable experience... and justify a $5 cup of coffee!).

Every great brand has a story. The challenge is crafting a compelling, sensory-rich story and THEN figuring out how to draw customers into it.

It's Not What You Do, It's What You Do Differently That Counts

By Patrick Mahan

"In order to be irreplacable one must always be different." - Coco Chanel, fashion designer

What is it about Chanel that allows them to charge outrageous prices for their products? After all, when it comes to buying handbags, perfumes and jewelry, women have lots of choices. For about 20 bucks they could go to Wal-mart and buy a cheap purse that serves the exact same function as a $300 handbag from Chanel. But women want Chanel. And they're willing to pay the higher price. Why?

Because Chanel knows the secret.

The secret is designing more than a purse. It's about designing a unique, remarkable experience for your customers. An experience that goes beyond the product or service. An experience that creates a significant contrast between you and your competitors.

Why is this so important? 

How is Facebook Like a Ferrari? Understanding the Value of “Fans”

By Patrick Mahan

How do you explain social media marketing to business owners who want to jump on the bandwagon but hesitate because "the only comments we get are from people that aren't our ideal customer." 

That's a legitimate concern. And it's no surprise that you might jump to this conclusion after scrolling through the comments on your Facebook Page. It does seem that a lot of the people who are commenting may not fit your "ideal customer profile". For example, if you sell luxury cars, like Ferraris, the majority of people commenting on your Page probably can't afford one.

Does that mean their comments are useless?  Are you wasting your time and resources maintaining a Facebook Page if most of your comments come from teenagers or "unqualified customers"?

Pavlov's Dogs, Fish Tacos and Free T-shirts

Remember Ivan Pavlov ... The Russian scientist that rang a bell and made dogs salivate?

It was an amazing discovery and one that has had far-reaching effects with applications that even Pavlov couldn't have expected.

Over the years, Marketers and Advertisers especially have latched onto this concept of "Pavlovian Conditioning"and used it to influence and persuade consumers.

Still to this day, nearly 75 years after his death, the phrase "Pavlov's dog" is used to describe someone who reacts instinctively to a situation rather than logically.

Well ... today I witnessed this psychological phenomenon first-hand! At Long John Silver's.