CEOConsultant.com » Business Strategy

TIVO and The Chasm

Blair Ingle — Wed, 05 Oct 2011 17:00:58 +0000

If you market a product or an idea, I strongly suggest that you read Geoffrey Moore’s “Crossing the Chasm.” Even if you aren’t in business, marketing or sales, its a great insight into why we buy, what we buy, and when we buy.

The theory is based around the Law of Diffusion of Innovation. Before your eyes glaze over, the theory around the law is pretty simple.

There are 5 different stages of “adopters” or consumers:

Innovators: these are the ground breakers, the risk takers and make up 2.5%
Early Adopters: these are the consumers that believe in the product and buy on emotion, making up 13.5%
Early Majority: these are the folks who only buy when something is tried and tested, 34% of the market
Late Majority: this group will arrive once the product or innovation has long since been accepted, making up 34%
Laggards: this group has no choice but to accept the product or innovation, making up the final 16%

Here is an example of how this works. When the iPad was announced, the Innovators (2.5%) waited in line for 6 hours for the chance to pre-order. A week after the product hit the shelves and there was some inventory, the Early Adopters (13.5%) showed up. About 3-6 months after the iPad was introduced, those Early Majority (34%) consumers arrived and ordered theirs online. The Late Majority (34%) showed up this past Christmas and gobbled up all the inventory, or maybe they waited for the iPad 2. And the Laggards (16%), well, they are still waiting, and when they are ready, they will pick up their rotary phone and call Apple, or borrow an Innovator’s ancient iPad.

Here is what is important about the groups. Those Early Adopters influence the Early Majority which then influences the Late Majority. The Early and Late Majority groups make up 68% of the market. The Early Adopters are the key influencers.

And “The Chasm?” That’s the tipping point between those Early Adopters and the Early Majority; the tipping point between a small share and market domination. Your product only enters the mass market when it hits that 12-15% mark. Most marketers will tell you that you can literally trip over 10% of the market. That 10% will leave you in a heartbeat if the Early Adopters push or influence them in a different direction.

So, if you have 5% or 6% of the market, even in a fractured industry where that is the largest share, your hold is tenuous at best. You are standing on the wrong side of the Chasm. You still need to hit 15% before becoming comfortable and working on the Majority. Dig in and get back to work aggressively or suffer the inevitable consequences. Because someone else WILL jump you eventually.
Just ask TIVO, who maybe had the greatest product technology OF ALL TIME, that we all enjoy using now via DVR on our crappy Time Warner Cable boxes. TIVO nearly went bankrupt and has been passed like a turtle on the Autobahn.

Don’t be a turtle, endeavor to jump the Chasm.

Blair Ingle

“Innovative leader; man of action, influence and service everyday.”

You can read more at his website BlairIngle.com

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Aristotle Is Laughing At Me…Again

Blair Ingle — Wed, 28 Sep 2011 17:00:09 +0000

If he was alive today, do you think Aristotle would be busy? Do you think he would be a blogger? Would his calendar be completely booked with speaking engagements?

If you think about it, so many of the self-help gurus are really preaching practices that Aristotle and his contemporaries discussed in 350 BC. Even as I talk to people about their personal strengths and assessing their strengths, somewhere in the heavens, Aristotle has to chuckle at my feeble efforts to describe his ground breaking theories a couple thousand years later.

Look at some of his quotes and teachings:

“Knowing yourself is the beginning of all wisdom.”
“It is the mark of an educated mind to be able to entertain a thought without accepting it.”
“Excellence is never an accident. It is always the result of high intention, sincere effort, and intelligent execution; it represents the wise choice of many alternatives – choice, not chance, determines your destiny.”
“Those who know, do. Those that understand, teach.”
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
“Whatever we learn to do, we learn by actually doing it: men come to be builders, for instance, by building, and harp players by playing the harp. In the same way, by doing just acts, we come to be just; by doing self-controlled acts, we come to be self-controlled; and by doing brave acts, we become brave.”

That last quote on self-development really hits home with me. You can’t improve through desire alone, you have to actually act on the self-improvement. Small strides coupled with minor setbacks, but we learn by doing, successfully and unsuccessfully. Is it any wonder that his student, Alexander the Great had such a dramatic impact on the world in his time?
What was true two thousand years ago is still true, because of the continuum of human nature. Whether you wear a suit or a toga, carry an iPhone or a wooden staff, ride a Hummer or an elephant, human truth remains.

What will you learn by doing today? Would Aristotle nod approvingly?

Blair Ingle

“Innovative leader; man of action, influence and service everyday.”

You can read more at his website BlairIngle.com

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A Case for Having a Strategy: Sustainability Reality Should Not Lag Perception

CEOConsultant — Sat, 27 Aug 2011 01:40:09 +0000

Machiavelli wrote that it is better to appear virtuous than to be virtuous, that leaders benefit from looking like good guys while actually doing whatever they see as best for themselves. A recent study, by Brandlogic and CRD Analytics entitled “Sustainability Leadership Report, Measuring Perception vs. Reality” seems to echo history’s most famous expert on amoral leadership -companies that are seen as leaders in the area of sustainability are not always the greenest companies. While it may seem opportune to benefit from this inflated reputation, in fact it represents a growing risk. In many cases, it has been known to backfire – sometimes spectacularly.

The Brand Logic / CRD study looked at 100 leading companies across 9 major industries and compared perceived performance on environmental, social, and governance (ESG) parameters versus actual reported performance. It found that, in many cases, there is a stark disconnect between how companies perform and how they are perceived.

The perceptions were measured in six countries (China, Germany, India, Japan, United Kingdom, and United States) from three “highly attentive” audiences: investment professionals, purchasing professionals, and graduating university students who are entering the workforce. The reality score was determined from a review of the companies’ Global Reporting Initiative (GRI) G3 sustainability reports, the most universal reporting protocol for sustainability.

Perhaps surprisingly, a number of well-known brands such as Apple, Google, and Honda were categorized as ‘Promoters’, meaning that “they are credited with ESG [environmental, social, and governance] performance ahead of their actual achievements”. While these companies enjoy a halo-effect from the prominence of their brand and from some specific sustainability activities, they are, as a whole, sitting on reputational air.

Recent events surrounding Apple and BP demonstrate that reputational bubbles can deflate rapidly and embarrassingly. Apple was exposed to the critical spotlight when the alarming treatment of workers by their supplier, Foxconn, was exposed. BP, who dramatically rebranded themselves from ‘British Petroleum’ to ‘Beyond Petroleum,’ saw their market capitalization halved in the wake of the Deepwater Horizon disaster last year. In these cases, as in others, ‘Promoters’ suffered tangible consequences for having sustainability performances that did not live up to their marketing.

It has become increasingly difficult for companies to mask their environmental deficiencies because the stakes for sustainability performance have been raissed dramatically in recent years. Most Fortune 500 companies have taken actions which they can point to as sustainability achievements. While it is a positive sign that so many companies are seeing value in investing in these activities, many of these programs are still formed from the bottom up as opportunistic collections of uncoordinated quick hit actions. This is no longer enough to demonstrate leadership or even differentiation. What’s needed is a strategic platform to: review needs, benchmark successes and failures, adapt and improve. Beyond reputational credibility, such programs often uncover cost savings and even profitable new market opportunities.

To develop a program that can vault your company into the ‘Leaders’ category, your company needs to be deliberate about reviewing all areas of operations. We find that it is best to begin the process with an assessment to see where you are performing well and where there is room to improve. Many of our engagements begin with this type of sustainability review, followed by benchmarking your performance to your peers. We commonly find that even in the best-managed companies there are opportunities to realize more value from environmental initiatives, or for risks (reputational or otherwise) to be mitigated through more comprehensive action.

Machiavelli might have thought that looking green is better than being green, but many companies have already found that greenwashing is a liability. Simply put, sustainability should not be faked. Sustainability benefits will accrue over the long-haul when they are developed under an umbrella strategy that has high level commitment, clear targets, and authentic program branding so stakeholders can recognize that sustainability is part of corporate DNA.

Zach Goldman
Partner, Malk Sustainability Partners
Corporate sustainability solutions for the banking and technology industries.

Don’t Underestimate the Power of Great Customer Service

CEOConsultant — Tue, 17 May 2011 12:00:15 +0000

This is a guest post by Topher Lee.

Did you know that your customer service could help you win over new clients before they even walk through your door or look at your website? Think about it. Word-of-mouth about your service, for example, could go a long way in convincing potential clients to consider you first when they’re ready to make a purchase.

The following are a few customer service tips that can significantly boost your bottom line:

Existing Customers Recommend the Company

Good customer service can have a lasting impression. Existing customers will be more likely to recommend companies that rank high in customer service to friends and family. Who can resist acting on a recommendation from someone they know so well? The qualities you should promote throughout your company include being helpful, friendly and responsive. It sounds elementary, but you would be surprised how hard it is to actually execute.

As head of the company, you should also be cautious when choosing business partners, and pay careful attention to their customer service as well. Like it or not, you inherit the reputation of your partners. For example, the shipping company you choose to deliver your products could end up reflecting positively or negatively on your business. Quality is always key, and issues like the speed and the integrity of your shipping provider come into play. People don’t want to wait a long time for items to be shipped and want the items to be in good condition when they arrive. It’s important to keep this in mind with anyone you are considering partnering with. It’s not just the work you do that gives you a reputation, but also who you choose to work with.

Existing Customers Become Repeat Customers

A great product and poor customer service does not create repeat customers. Your product could be useful, durable, and the best value on the market. But if consumers have to fight you for it, or their questions and concerns aren’t addressed with tact and efficiency . . . don’t count on closing the deal or ever even seeing them again. On the other hand, if they have a good experience from a customer service standpoint as well as a product/service standpoint, first time customers are more than likely to become repeat customers. They will associate their good experience with the company and recognize the fact that subsequent interactions will be equally as satisfying. That’s when you can put word-of-mouth to work for you. Money can’t buy the kind of marketing return that a friend’s referral can yield.

Customer Service Works on Many Levels

Business owners should also be aware that customer service can make an impression on many different levels and during different time frames. For instance, a client may encounter the customer-service style of a company when he or she calls or emails the company with questions. This initial contact with customer service or support creates an important first impression that can have a significant impact on whether or not a sale is made. Another level of customer service occurs while the purchase is being made. Is the contact with the representative or salesperson friendly? Does it address all the customer’s concerns about what he or she is buying? Are appropriate efforts being made to offer the customer other items or services they may also want to purchase? Does the customer feel she can get further assistance should any future concerns or questions arise? Failure to address your customer’s needs on any of these levels could unhinge your entire customer service strategy. Paying close attention and ensuring all of your “i’s” are dotted and “t’s” crossed will help to ensure your product and company are presented in the best light possible.

A business owner who keeps customer service a top priority in these various circumstances can be assured of having plenty of satisfied customers.

Incorporating an Internship Program in Your Business: 4 Major Benefits

CEOConsultant — Mon, 16 May 2011 12:00:42 +0000

This is a guest post by Lauren Bailey, who regularly writes for best online colleges.

Although corporations, especially small businesses, assume internship programs are costly and unnecessary, the benefits of incorporating an internship program in your business far outweigh the costs. Interns can range in age: some companies hire high school students, undergraduate students, or even young professionals (who are lacking experience in the field). Below are 4 benefits of incorporating an internship program in your company’s hiring process.

Fast Track Training and Evaluation for Potential Full-Time Hires

Hiring interns allows managers and human resource heads to weed out incompetent, unfit (potential) full-time hires. Usually, undergraduates spend their summers working as interns for a company or organization. Some companies pay and some don’t. However, even those that pay high stipends still benefit in the end. The company gets a chance to train interns, and in return, test his/her work ethic, learning habits, and total fit with the company. The best part: you can say goodbye to them after the summer!

Get More Work Accomplished for Less Pay (or free if authorized)

Usually, you can assign interns complex assignments without having to worry about paying for the same benefits and salaries you would give full-time hires. Some universities and organizations even fund interns to work at a company of their choice. If they receive this funding, they are usually barred from receiving funds from the company they work. If you get one of these applicants, you can hire interns without paying for them!

New Fresh Ideas

No doubt, young people (the Y Generation) have new ideas, input, and creative thought processes. They have had different experiences and different encounters with new technologies. You shouldn’t doubt a young person because they are inexperienced. A fresh, new take on issues may be exactly what your company needs. You can definitely get that perspective from smart interns you hire. Have them sit in on important meeting with you. Let them ask questions and participate. You would be surprised what YOU may learn from one of them.

Oh, and There’s that Good image (Being a Good Person Thing…)

Your company mission statement probably includes statements on corporate social responsibility and improving the locality in which you are located. Hiring interns translates to a perfect opportunity to help your locality. Help educate young people on what it is like to be in the workforce. What skills should they develop while they are still in school? How can they improve certain personal attributes before they enter the work force full time? These are all things they can discover as interns!

By Lauren Bailey, who regularly writes for best online colleges. She welcomes your comments at her email Id: blauren99 @gmail.com.

Inspirational Website Design for Business

Damon — Sat, 29 Jan 2011 08:04:37 +0000

Many business websites are boring, just a virtual business card on the web so the few people that visit it can get your telephone number.

However, there are many business websites that pop, inspire, and shine which make it really attractive to the user.

Whether you like it or not, you business website should be visually appealing and motivate a user into an action (hopefully buying your product or service).

The most difficult part is trying to figure out exactly how you want your business to be positioned on the web. Many CEO’s will hire an agency to handle most of the design work, but you still want input on the design. What do you tell them? There’s so many websites out there that you can’t filter bad design from good design.

Here’s a solution, BestOfWebDesign.com features some of the most visually stunning websites around the world. Some are personal sites, others are project sites, but most are business sites. This can be a great place to start your search for design inspiration for your new website.

If you’re new site is just as awesome and inspiring as some of the others, submit your website to the directory for all to see.

Gathering and Using Web Intelligence

CEOConsultant — Thu, 04 Nov 2010 02:45:45 +0000

All company’s have websites in the 21st century, not all company’s use it effectively for increasing and retaining business.

Gathering Web Intelligence

Gathering web intelligence from analytical platforms such as Coremetrics, Omniture, Google Analytics, or others can reveal data and insight that can help drive strategy and growth.

Coremetrics and Omniture are best of brand for gathering web intelligence. They are both implemented by your online marketing team and development team and can be customized to suite the metrics you need to measure to gather business intelligence and understand consumer behavior.

Google Analytics is the best “free” platform with the downside being there is about a 10% variance in the intelligence it gathers compared to server logs. With custom coding and implementation, Google Analytics can almost compete with the other top brands.

Using Web Intelligence

Once you have sufficient data from your analytics platform, you can start to analyze the data and make decisions that can have a positive impact on your business.

Where are visitors going to when they visit your site? Are they reviewing the products and services you offer? Are they making a purchase? Are far along in the sales funnel are they going before they drop off? How can you increase the number of people that begin the checkout process to complete the checkout process?

Analyzing these events can help you improve the web marketing channel to create more customers.

Maybe there are other products and services these website visitors are looking for that you can now provide.

Having a great online marketing team that can analyze this data and implement strategic goals will make all the difference between success and failure.

Creating a Beautiful Web Presence for Your Business

Damon — Mon, 09 Aug 2010 04:42:10 +0000

Your business website should be viewed as your virtual storefront or office space. If your website is outdated, broken, or just plain ugly, few people are going to want to do business with you. This is just like the physical store or office space that you’re sitting in right now.

Perception is reality. And it does make a difference!

If I was to walk into your store looking to make a purchase, but the interior colors were horrendous or it was hard to find what I was looking for, I would walk out pretty quickly.

This is true of your website as well. A beautifully designed and customized website can make all the difference in online shoppers deciding to make a purchase or not.

I have seen old and outdated websites receive few conversions and then afterwords with custom website design services redesigning the site having sales skyrocket!

Even with all the SEO tactics and strategies used on a ugly site, it doesn’t mean that it’s going to convert more. Being ranked number one for a primary keyword may bring in hundreds, if not thousands, of visitors a day doesn’t mean that the website is going to convert.

For the site design, this is where getting user feedback would be beneficial. And to help convert those potential buyers on your website having heat mapping software installed such as Click Density or CrazyEgg can help you analyze where users are clicking on the website and how you can update the layout so more conversions happen (and they happen with fewer clicks).

Okay, you’re thinking to yourself “enough already, I know I need a website redesign…but where do I start and I have so many questions.”

There is a lot that goes into a website redesign to make sure your business needs are being met and your ideas for what you want get though. You can make it easier on yourself and the web designer by reviewing a website design FAQ and get most, if not all, of your questions answered.

Whatever you choose to do, you have to trust in your web designer! A good web designer who has been around a while will no what works and what doesn’t. You don’t want your ego to get in the way of hurting your online presence! Otherwise, you’ll make some web designers list of clients who they make fun of like “How a Web Design Goes Straight to Hell” or “the stark reality behind most designer/client relationships?”

Film & Production Companies Take Advantage of New Mexico Tax Incentives

Damon — Mon, 09 Aug 2010 00:49:33 +0000

The entertainment industry in New Mexico has seen a rising in projects and engagement in the state due to New Mexico film incentives passed by the state years ago.

For those interested in acting in New Mexico or working in the film industry, they can check out the new site of NMFA which has a job directory of New Mexico’s film and production industry.

States that offer the highest tax incentives are seeing more production companies coming and and filming their movies in the state. This is not only true of New Mexico, but other states such as Texas and Michigan as well.

Personal Development Increases Employee Satisfaction and Improves the Organization

Damon — Tue, 08 Sep 2009 17:00:02 +0000

Many companies offer personal development courses to their employees to improve their business. Typically they will assign certain classes from a local universities continuing education program to help improve the employees knowledge base or skill set to improve the organization.

Companies that foster this type of learning are progressive in their business leadership. Employees that feel valued are more likely to stay with the organization longer to fulfill the company’s strategy in the marketplace.

Employees are more likely to stay with an organization like this because they want to increase their own business knowledge and skill set.

Organizations that don’t offer these types of learning programs are worried that the employee will leave the company to find work elsewhere. Even though this does happen, it’s no excuse to not offer learning programs. The cost to the company to not have the best talent available can bring a company down as executives don’t inspire to take on risks or competitor’s pass them by using current and improved business models and strategies.

To recruit and hold on to successful executives and employees, businesses need to come up with creative benefit packages and compensation so they will continue to provide their skills and leadership to keep the company growing and profitable and ahead of their competition.