Marketing
Why celebrate Halloween?
Because everyone else does.
Why believe that people once put razor blades into apples and you should only eat wrapped candies? Because everyone else believes it (it's an urban legend).
Most of what we believe is not a result of direct experience (ever seen an electron?) but is rather part of our collection of truth because everyone (or at least the people we respect) around us seems to believe it as well.
We not only believe that some brands are better than others, we believe in social constructs, no shirt, no shoes, no service. We believe things about changing our names when we get married or what's an appropriate gift for a baby shower.
This groupthink is the soil that marketing grows in. It's frustrating for someone who is hyper-fact-based or launching a new brand to come to the conclusion that people believe what they believe, not that people are fact-centered data processing organisms.
Sure, it would be great to have an organization that enjoys the advantage of everyone believing. Getting from here, to there, though, requires stories, emotion and ideas that spread. Organizations grow when they persuade a tiny cadre to be passionate, not when they touch millions with a mediocre message.
Opt in and opt out
Every year, tens of thousands of people die because organ donor status in the US is opt in. If you want to be an organ donor when you're dead, you need to go through steps now to opt in. The default is "no."
Press releases, sent by the billions, seem to have become opt out. If you don't want the barrage of nonsense, PR firms appear to believe that one by one you must alert each and every publicist in the world of your desire to not hear from them.
401 (k) plans tend to be opt in. If you do nothing, you get nothing.
Talking to the police after getting arrested is strictly opt out. Nothing to sign, you just talk.
Cheese on your pasta used to be opt out, but now it appears to be becoming opt in.
Bacon should never be opt out. Sorry, but that's just the way I feel.
I think there are a few general principles that could save us time and money and hassle:
- If there's a public good involved from a certain behavior, the default should be opt out.
- If the pressure or cost of opting out is high and it involves a civil right, then opt in is a better choice for our society. (Obviously a potential conflict to the first rule).
- If a business benefits in aggregate and the consumer is penalized on average, then it's smart public policy for it to be opt in.
- If your business is going to depend on this connection as an asset, opt in is the way to go. Opt out email is another word for spam.
So, I'd make organ donation opt out, public religious observance opt in, newsletters opt in and smart financial choices opt out. Anything that tricks a consumer into paying for something ought to be double opt in. And without a doubt, email (and commercial transactions of all kinds) are opt in. Smart for both sides.
No need to sneak around. Ask first.
What you buy when you buy a lottery ticket
Hint: you don't buy a future of money.
People who win the lottery are almost always unhappy in the long run, and most of them continue to buy lottery tickets.
It's not the destination, it's the journey. Same thing with first dates, blog posts, opening presents and answering a phone call from a stranger.
The thrill of possibility, the chance for recognition, the chemical high of anticipation. That's what people pay for.
Some people are better than others
By 'better', of course I mean better customers, better prospects, better sneezers, better at spreading the word.
Here are two interesting lessons from the book industry:
- Kindle readers buy two or three times as many books as book readers. Why? I don't think it's necessarily because using a Kindle leads someone to read more books. I think it's because the kind of person who buys a lot of books is the most likely person to pony up and buy a Kindle. I know that sounds obvious, but once you see it this way, you understand why book publishers should be killing themselves to appeal to this group. After all, the group voted with their dollars to show that they're better.
- Walmart and other mass marketers are now offering top bestsellers for $9 or less each, about $5 less than their cost. Why? Why not offer toasters or socks as a loss leader to get people in the store? I think the answer is pretty clear: people who buy hardcover books buy other stuff too. A hardcover book is a luxury item, it's new and it's buzzable. This sort of person is exactly who you want in your store.
Dunbar's Number isn't just a number, it's the law
Dunbar's number is 150.
And he's not compromising, no matter how much you whine about it.
Dunbar postulated that the typical human being can only have 150 friends. One hundred fifty people in the tribe. After that, we just aren't cognitively organized to handle and track new people easily. That's why, without external forces, human tribes tend to split in two after they reach this size. It's why WL Gore limits the size of their offices to 150 (when they grow, they build a whole new building).
Facebook and Twitter and blogs fly in the face of Dunbar's number. They put hundreds or thousands of friendlies in front of us, people we would have lost touch with (why? because of Dunbar!) except that they keep digitally reappearing.
Reunions are a great example of Dunbar's number at work. You might like a dozen people you meet at that reunion, but you can't keep up, because you're full.
Some people online are trying to flout Dunbar's number, to become connected and actual friends with tens of thousands of people at once. And guess what? It doesn't scale. You might be able to stretch to 200 or 400, but no, you can't effectively engage at a tribal level with a thousand people. You get the politician's glassy-eyed gaze or the celebrity's empty stare. And then the nature of the relationship is changed.
I can tell when this happens. I'm guessing you can too.
Victorinox Chef's Knife
A really great chef knife will be insanely sharp, yet retain its edge easily, and be well balanced and welcoming to hold. These days a decent high-grade chef knife can cost between $100-$200. Several cooking publications (including Cook's Illustrated) recently identified a bargain $27 chef knife that in their tests rated just about as good as the $100 plus knives. This is the one we use.
The Forschner Victorinox is a hybrid of a thin Japanese blade with its 15 degree edge (western knives have a 20 degree edge) but with the longer, broader blade of European knives. It is lightweight, nicely balanced, and lethally sharp. It has a comfortable very grippy handle that won't slip even when wet. We have 5 cooks at our household and this is the knife they all grab first. It may not be as super great as the chef knives previously reviewed, but for the $27 price it can't be beat.
-- KKForschner Victorinox Chef's Knife, 8 inch
$27
Begrudging
I don't know if this happens to you, but I'm noticing it more and more. Someone offers you a refund, or agrees to sell you something or even hires you to do a project, but then spend a lot of time explaining that it's a one time thing, or that it's against policy or it's not even something they like to do.
What's the point of agreeing to anything begrudgingly? Does it get your partner to do his best work? Does it increase the chances that you'll get to win next time?
If you're going to do something, do it. Go all in. Doing it half in makes no sense at all to me. It's a like a store that has so many rules and regulations about sales and exchanges that you wonder if they really want to be bothered to sell you anything at all.
The best podcast/radio show of all time
If you drive a fair amount and have an ipod, it's essential that you visit radiolab and see what they've been up to.
You can easily (and for free) subscribe to their podcast in iTunes and listen to every one of their past shows. I'm hoarding them, saving each one for a drive that deserves it, because they don't make new ones fast enough.
The content of each show is a unique mix of science, pop culture and relevance. I guarantee that they will make you smarter. That's a lot to promise for a radio show, but I think it's true.
And the production demonstrates that even when a medium is 90 years old, it's possible to reinvent it. They make the flat and linear structure of radio old fashioned. These guys are the real deal, and I'm privileged to recommend them to you.
Trolls
Lots of things about work are hard. Dealing with trolls is one of them. Trolls are critics who gain perverse pleasure in relentlessly tearing you and your ideas down. Here's the thing(s):
1. trolls will always be trolling
2. critics rarely create
3. they live in a tiny echo chamber, ignored by everyone except the trolled and the other trolls
4. professionals (that's you) get paid to ignore them. It's part of your job.
"Can't please everyone," isn't just an aphorism, it's the secret of being remarkable.
The joy of quitting
The governor of New York faces an interesting choice.
He can do the natural thing, the thing with momentum, the thing he's been trained to do his entire life: run for a full term. That involves raising a lot of money, living on the road, compromising a lot to gain support and almost certainly losing, probably in the primary.
Or, he can quit. He can win the embrace of his party, of power brokers and his family by quitting now, as opposed to losing later.
It's hard to see a better illustration of the Dip. In elections, you win or you lose. He's almost certain to lose. The dip is deep and long and essentially unsurvivable. If he quits now, anoints an electable successor, acts as a power broker and walks away while he can, he gets to choose his next life. If he runs and wins, that's terrific. But if he runs and loses... not so good.
I can understand why it's hard for him to quit. It's unnatural. But that doesn't mean that he (and the rest of us) can't profit from deciding in advance when to quit (before the market decides for us).
[This video of Richard Nixon doing a sound check before his resignation captures the freedom he felt once he decided that he was truly stuck in the Dip. After the decision, going down the path is the easy part.]
Consistent, persistent generosity
That might be exactly the strategy you need to have an impact on the market.
Consistent as in not stopping to say, "my turn." Persistent as in long-lasting, not as in annoyingly over the top. And with permission, because interacting without delivering anticipated, personal and relevant messages is a waste at best, annoying at worst.
Talk of generosity...
...of information that wants to be free, and of virtual communities is often dismissed by businesspeople as youthful new age idealism. It may be idealistic but it is also the only sane way to launch a commercial economy in the emerging space. "The web's lack of an obvious business model right now is actually its main event," says Stewart Brand, of the Global Business Network.
When a sector of the new economy passes through the protocommercial phase, it is the opposite of the "tragedy of the commons." The tragedy of the commons was that nobody took responsibility for maintaining the communal pastures that were the livelihood for the entire community. In the follow-the-free economy that seems to precede commercial activity on the net, everyone keeps the commons up because nobody is able to make a living from it on their own. Sophisticated software, as good as anything you can purchase, is written, debugged, supported, and revised for free in this "triumph of the commons."
The most popular software used to run web sites is called Apache. It is not sold by Netscape, or Microsoft, or anyone. Apache, which has 47% of the server market (Microsoft has 22% and Netscape 10%), was written (and is maintained) by a network of volunteers. It is given away free. Apache, which is used by the developers of such commercial sites as McDonald's, keeps getting better because the triumph of the commons rewards a completely open product: Anyone has access to Apache's software source code and can improve it. "If you give everyone source code, everyone becomes your engineer," says John Gage, chief scientist at Sun Microsystems.
The most popular operating system for web server workstations is not sold by anyone. It is a product called Linux, a Unix-compatible program that was originally written by Linus Torvalds, and given away for free. In the manner of building medieval cathedrals, hundreds of software engineers volunteer their time and expertise to refine and improve Linux, and to keep it free. Beside Apache and Linux, there are many other free software suites, such as Perl and X-Windows, maintained by a network of programmers. The engineers don't get paid in money; rather they get better tools than they can buy, tools that can be easily tweaked by them for maximum performance, tools superior to what they can make alone, and tools that increase in network value, since they are given away.
Top this!
Diablo Cody on the pressure to outdo herself:
So what kind of pressure did you feel, post-Juno, to write something good?
None.
I don’t believe you.
Seriously. How could I possibly? The experience that I had with Juno
is something I could never replicate, ever. First of all, you never
have your first baby again. Second, the whole production was really
charmed from start to finish. I mean, every moment of it was special.
And then it culminated in Oscar nominations...I’m so fortunate that I got to have that experience. Now I almost feel
this great calm coming over me. I’d be feeling a lot more pressure if I
was still striving for that goal.
Sometimes, the work is the work and the goal isn't to top what you did yesterday. Doing justice to the work is your task, not setting a world record.
Empathy
I have no idea what it's like to be pregnant.
And for most of us, we have no idea what it's like to have $3 to spend on a day's food, or $4,000,000 to spend on a jet. We have no idea what it feels like to be lost in a big city, no idea how confusing it is to go online for the first time, no idea what it's like to own four houses.
Marketers and pundits and writers and bloggers and bosses pretend they are empathetic, but we never can be. Sure, we can try, we can be open to cues and sensitive to clues, but no, we don't really know.
Being certain about how someone else feels or what motivates them is foolish. Don't declare that you know exactly why someone made a choice or predict what someone is going to do next, and why. It's a great parlor trick, but you're probably going to be wrong. (I think the one universal exception is fear. We all know what it means to be afraid, and fear doesn't change based on income or gender. The causes change, but the fear remains the same.)
Empathy is a hugely powerful marketing tool if we use it gently, being sure to leave lots of room for error. When we say, "oh, you did that to make a quick buck or you did that because you hate that guy or you did that because you're a man..." we've closed the door to actually allowing people to write their own story and you make it difficult to learn what actually makes them tick.
The Geek Atlas
I am always looking for offbeat educational places to visit on my travels. The Geek Atlas has rounded up 128 great candidates from around the world. The Atlas calls them "places where science and technology come alive." I think of these destinations as places that make you think. The possibilities run the gamut from birthplaces of famous inventors and scientists (yawn) to really cool tours of working technological systems (a nuclear power plant, a dam turbine, a solar furnace) to a spectrum of interesting but little known museums, to just cool places like the prime meridian. A lot of these destinations are in the US and UK, but a fair number hail elsewhere. In addition to a description of a destination, author Graham-Cumming writes up a page explaining the key concept behind each spot. I've visited a dozen of these science hot spots and they are well worth a short detour, or in some cases a trip just for the purpose. You could probably fill another volume of brainy tourist traps missed by this book: I predict a sequel.
Solucar PS10 Power Station, Sanlucar la Mayor, Spain
The tower is at the center of a field of heliostats (mirrors that track the movement of the Sun) that focus the bright Spanish sunlight onto a receiver near the tower's top. The reflected sunlight is so intense that water vapor and dust in the air glow white. All that's needed to complete the scene is a maniacal James Bond villain atop the tower.
This tower is at the center of the Solucar PS10 power station. At the top of the tower is a solar receiver that is heated by sunlight to create saturated steam at 257°C. The steam is then used to drive a turbine that generates electricity. Make sure you're wearing sunglasses when you look up to the top; the tower's brilliant white glow is very intense.
*
Taipei 101, Taipei, Taiwan
The 660-Tonne Golden Ball
The Taipei 101 is the tallest occupied building in the world, with 101 floors overlooking Taipei's business district. But Taipei is prone to both typhoons and earthquakes, so the skyscraper contains a 660-tonne, gold-colored pendulum near the top to prevent the building from swaying and vibrating. It is the largest and heaviest such pendulum in the world.
Many skyscrapers contain such devices, called tuned mass dampers, for the same purpose, but the Taipei 101 pendulum is unusual because it is on public view. It hangs between the 87th and 91st floors, and there are public viewing areas on the 88th and 89th floors. It's even visible from the restaurant and bar. Two other tuned mass dampers, located in the building's pinnacle are not on display and are tiny by comparison: they weigh only 6 tonnes each.
The ball is made of forty-one 12.5-centimeter steel plates welded together for a total size of 5.5 meters. It is attached to the building by eight steel cables, each capable of supporting the ball's entire weight. In normal use the ball can move up to 35 centimeters in any direction and cuts building vibration by 40%. In a major typhoon, the ball is designed to move up to 1.5 meters; hydraulic bumpers below the ball absorb its energy and prevent it from moving too far.
When the building sways in one direction, the ball opposes the movement by swinging the opposite way. The movement of the ball pushes (and pulls) on the hydraulic bumpers and causes them to heat up, absorbing the energy from the motion of the building. The pendulum is tuned by adjusting the length of the cables holding it. By changing the period of the pendulum (the time it takes to swing back and forth), it can be tuned to match the motion of the building.
*
Nevada Test Site, NV
At the Nevada Test Site, more than 1,000 nuclear explosions were set off between 1951 and 1992. The site contains over 3,600 square kilometers of dry lake beds and mountains, about 100 kilometers northwest of Las Vegas. Once a month, the U.S. Department of Energy provides a free, day-long tour of the Nevada Test Site's bomb craters, ground zeros, and test paraphernalia.
The tour covers around 400 kilometers of the nuclear explosion-pockmarked landscape: of the 1,021 nuclear explosions at the Nevada Test Site, only 126 occurred above ground; the rest were underground tests that left the site cratered. The largest crater of all, the Sedan Crater, is the highlight of the tour. It's almost 400 meters wide and 100 meters deep.
-- KKThe Geek Atlas: 128 Places Where Science and Technology Come Alive
John Graham-Cumming
2009, 542 pages
$20
True believers (and the truth)
The internet has amplified the volume of the true believers, the defenders of any faith.
If you're into high end stereo, it's far easier to find strident voices in defense of $100,000 stereos than ever before. If you have strong views on health care (either side) it's not hard to find the orthodox and articulate believers. It's not just specialty magazines or conferences any longer. The true believers are in our faces every day.
When you lead a tribe, the volume and accessibility of the true believers is a good thing. They're easy to find and they maintain order and create a culture for the group you're leading.
The problem is that these loud voices may be loud, but they might not be right.
If you want them to write glowingly about your company's new stereo, you'll make one that's so obscure and expensive you won't sell very many. If you want them to adore your new restaurant, it might be so edgy and cutting edge that not enough people will actually come and you'll go under.
Go check out the track record of the loudest believers in your industry. They're wrong far more than they are right. In fact, when they love a new tech product or candidate, it might just be the jinx that guarantees failure.
The truth of the market is that the market you sell to isn't filled with true believers. It's filled with human beings who make compromises, who tell stories, who have competing objectives. And as a result, the truth of the market is that the products and services that win (if win means you can make a good living and make positive change) are rarely the products and services that are beloved without reservation by the true believers.
Two seminars in November
[NOW SOLD OUT.
Thanks to everyone who signed up.]
I haven't done a public seminar in six months or so. It's clearly time.
All the details are here. There is one in New York City on November 19th and for the first time, a small roundtable session in my office on November 13th. The small session is by application only.
If you're interested in either one, I hope you'll sign up soon, because they sell out quickly.
Hope to see you there.
Fear of apples
At the farmer's market the other day, not one but three people (perfect strangers) asked me what sort of apple to buy. What do I look like, some sort of apple expert? Apparently.
In our industrialized world, people are now afraid of apples. Afraid of buying the wrong kind. Afraid of making a purchasing mistake or some sort of pie mistake.
And they're afraid of your product and your service. Whatever you sell, there are two big reasons people aren't buying it:
1. They don't know about it.
2. They're afraid of it.
If you can get over those two, then you get the chance to prove that they need it and it's a good value. But as long as people are afraid of what you sell, you're stuck.
People are afraid of tax accountants, iPods, chiropractors, non-profits, insurance brokers and fancy hotels. They're afraid of anything with too many choices, too many opportunities to look foolish or to waste time or money.
Hey, they're even afraid of apples.
"Notice me"
If the new web has a mantra, that's it.
So much time and effort is now put into finding followers, accumulating comments and generating controversy... all so that people will notice you. People say and do things that don't benefit them, just because they're hooked on attention.
Attention is fine, as long as you have a goal that is reached in exchange for all this effort.
Far better than being noticed:
- Trusted
- Engaged with
- Purchased from
- Discussed
- Echoed
- Teaching us
- Leading
