Backwards and Forwards

January 27, 2013 By Leave a Comment

Backwards and ForwardsI’ve never been one to be overly concerned with the past. That doesn’t mean I don’t enjoy learning about it or studying it (I minored in ancient history after all!), but it does mean I don’t spend much time wishing I could change it or re-capture it. When I was in high school I remember some kids would comment how they missed “the care free time of elementary school,” and in my early thirties I now hear people talk about how they wished they could go back to a fun filled college life. Do you know anyone who is stuck in the past or constantly refers to the “good old days”? Or perhaps instead of always wishing to re-live the good, they hold on to the pain of the bad? They are trapped and helped captive by their decision to not actively participate in their future. I’m sure YOU are not one of those kind though.

There is another trap equally as seductive though… the trap of focusing on your competition. It too can keep you looking in the rear view mirror. It can kill your creativity, and more importantly allow yourself to be copied by others because you are no longer trailblazing ahead. Just like with history, there are benefits to studying your competition, but allowing that study to muddle your own view of the future can be disastrous. Ultimately I think most people obsess over and copy their competition simply because they don’t have a strategy of their own, or they lack a true belief in their chosen course.

For others, it may be simply that they can’t think of anywhere else to draw inspiration from. They feel they have no choice but to react – then react again. To move beyond reacting, look at those in your industry that are not your competition (geographically non-competing markets in the home building world), other industries entirely, or articles, blogs, and books (yes, this will require an investment of time!).

The last of the barriers of moving forward is simply fear. When every step you’re taking is into a difficult to see future, then every inch forward seems like it should be taken more carefully then the last – or else you could find yourself walking clear off the cliff. How to combat this formidable foe? Not alone. This is where you need others around you to keep you from standing still.

“Life can only be understood backwards; but it must be lived forwards.” – Soren Kierkegaard

The world of real estate seems to be full of backwards looking people, companies, and organizations. Most are nothing but a “me-too.” I’m continually drawn to those who are looking forward. Their positive energy and ambition is intoxicating – and I will always value their friendship as we move forward together. Do your part to make sure that others on your team, in your company, and in your world see you looking forward.

Filed Under: Branding Tagged With: , , ,

Mission Critical For Your Business

January 13, 2013 By Leave a Comment

Mission CriticalThere are only two things that are always mission critical in business – customer satisfaction and profit. Many companies talk about how important it is that every member of their organization is actually part of the “sales force” no matter what their actual title or position is. I think, however, that it may unintentionally get everyone in the company focused on a metric that doesn’t always matter – volume. Sure, there will be periods of intense growth in any company where reaching a certain level of volume will matter and create efficiency, however taking your eyes of off what is mission critical can do serious damage.

Why do I keep using the term “mission critical?” All companies have a purpose – a mission, and the items that are crucial for that company continuing to do business are critical. Satisfaction used to be the lesser concern behind profit. Back in the “good old days” for some companies, customers had no true voice that could match the power of advertising. As long as your product was profitable enough, you could buy your way out of trouble.

Things have certainly changed. A couple bad Yelp reviews, or one ticked off customer with 30,000 Twitter followers can seriously harm your ability to continue. The best way to deal with these issues? Prove that those less than ideal testimonials are nothing but a freak accident – representing only .001% of your customer’s experiences. A secondary option is to have a brand so strong that it can take a direct hit and still give you time to prove (or improve) the prevoius point. Most companies, despite their own opinions, aren’t quite strong enough for that though.

Yes, profit keeps the doors open and the engine of business turning – but it now plays a secondary role to customer satisfaction. Even if you are nothing but a pure capitalist then you understand that a predicatbly higher satisfaction level than your competition will let you charge a higher premium – and increase your profit.

So today, look around and ask yourself how you can have the biggest impact on your customer’s experience and take action. Your companies margins will be glad that you did. Haven’t a clue where to start? Then start listening to your customers – closely.

Filed Under: Branding, Customer Loyalty, Marketing Strategy Tagged With: , , , , , ,

Stop Negotiating to Make Your Brand Great

May 18, 2012 By 1 Comment

Don't negotiate on attitudeNope, I’m not talking about negotiating on price – although that still would apply. I’m talking about your most important asset, your people. You must stop negotiating with attitudes and behaviors at your organization and you must have core principles that everyone agrees to follow. John DiJulius, author of What’s The Secret  calls these your organization’s non-negotiables, and they transcend job descriptions.

Before I explain in more detail, here is the list I created for my builder’s marketing, online sales, and design studio group:





S.P.I.R.I.T.

SERVICE: We are all here to serve others, not to be served.
PROBLEMS: Never share your problems without also sharing a potential solution.
INFLUENCE: Develop relationships that allow you to get things done because of who knows you, not what your title is.
RISK: Taking risks is not optional; it is required to invent something better – for change to occur.
IMPROVEMENT: Improvement in yourself and your work must be a daily goal.
TIME: Put in the time needed to get the job done – including the extra 15 minutes to make it great.

Job descriptions do serve a purpose in describing the deliverable expectations of a position, but they often ignore the importance of how you arrive at those deliverables. Do you have an employee who consistent produces good work, but leaves bodies in their wake? Do you have a sales person who always hits their goal for the month, but is always complaining to everyone they interact with? Are you nervous to have conversations with people about their behavior or attitudes because you’re not sure how to have them without making it feel like a personal attack?

By publishing this list and making all new hires agree to follow them, you now have something to reference and hold people accountable to and in time it will have an enormous impact on your corporate culture. I’m not sure what should be on your list, but you do. Resist the temptation to re-use someone else’s – it has to be something you own and individual to your goals. Finally, remember that you can’t hold anyone accountable to something you don’t hold yourself accountable too as well.

What would be on your non-negotiable list? Share in the comments below.

Filed Under: Branding Tagged With: , , , ,

Case Study: Home Builder Billboard Part 2

April 1, 2012 By 1 Comment

Schumacher Homes BillboardThe message on this billboard is not a new one in any industry. It attempts to gain awareness by saying your product is the most affordable and deserves consideration. Let me start off by saying that it is a legitimate strategy – IF you are dedicated to it no matter the cost (pun not intended – but I’ll take it). Once you lead with low price it is more likely that your business will no longer be in business than to later successfully change that strategy.

There is always someone hungrier and less risk averse than your company who will offer something cheaper. I once had someone tell me, “Yeah, but no one will trust those cheaper guys. Look at the Chinese drywall scandal – you get what you pay for.” He didn’t see the irony in his own statement, but that is your prospects mindset too.

What about resale? What about foreclosures? Might they offer a cheaper price per square foot? If they do, then the sales person will have to backtrack and explain why value – not price – is what they really need to be thinking about. While I’m thinking about it – do people really purchase by square feet? As they walk through your model home can you see their lips move as they silently count off their steps? When I showed a photo of this billboard to a friend of mine he asked “Is he a home builder or a shoe cobbler?”

Sure – everyone starts out with a desired threshold number. 2,000 square feet for example. It’s a nice round number… why not? The reality is that it is just like a mortgage amount to them. Ask someone how they came up with their square footage threshold and they’ll tell you the same way they came up with their mortgage limit. “I don’t really know – it is what we’re comfortable with.” Let me suggest that when a prospect brings up price per square foot to you that you should only internalize it as this – they have been to a low price competitor already. They are only asking you to defend your value (not your price!). Remember that they are in front of you because they love your home (or else they would have just bought what was cheapest).

So that this post doesn’t go on forever let me list three quick downsides to this message in terms of buyer psychology:

1. Which Side of the Brain Are You On?

Focusing on price takes people to the analytical left-brain and away from their emotional right brain. You are trying to prime the sales pump – but you are more likely to stall out the engine. We all feel long before we think. A recent IPA database study of hundreds of advertising campaigns found that emotionally oriented ads generated twice as much profitability as hard-sell ones.

2. You Get What You…

Price and quality are linked incredibly close during the initial exploration and information gathering part of shopping. Everyone wants the highest quality – however they are not sure they can afford it (or if it would be wise even if they could). However in the United States today there are more people who will rule out the cheapest right from the beginning than will rule out the most expensive. Stories of recalls, safety notices, and worse have all caused the consumer – especially the female consumer – to look for safety in quality. Those who keep the lowest price in their consideration set will be more skeptical and potentially harder to convert. They will keep the more expensive options open longer when searching for a home because it is what they aspire to, and are hopeful they can find a way to make it affordable.

This brings up an interesting side topic of surprise. Let’s say your company was committed to being affordable, but you didn’t lead with it. Instead you started with how beautiful your homes are, national quality awards that you have won, and an innovative home design process that is fun and pain free? After all that, then you proved that you were also extremely affordable. How would your prospects be likely to react? Never discount the emotions of surprise and delight. Timing matters – a lot.

3. Is That All?

Leading with a low price leads consumers to believe you have nothing better to talk about, and without experiencing or researching your product – price has no meaning. I’ll prove it to you. Do you want to buy this really cool thing from me? It’s in my pocket and you can have it – and it’s only $50. The skeptics out there are saying “that’s not the same at all. At least in the billboard people know you’re talking about a house. I have no idea what is in your pocket.” Touché. Ok, I have a ring in my pocket and it’s only $50… no do you want it or not? I could have a 2ct. diamond ring or a my two year old’s costume ring but because you don’t know enough about it you can’t even begin to determine if you are getting more or less for your money.

The words I don’t care for in the message on this billboard are “price per square foot.” I do like the word “best,” but that alone wouldn’t make a very good… wait a minute.

Billboard Redesign

(If you missed the other post discussing the use of billboards as a medium and the creative design of this particular one, you can read about it here.)

 

Filed Under: Branding, Case Study, Marketing Psychology, Marketing Strategy, Selling Strategy Tagged With: , , , , , , , , , ,

Case Study: Home Builder Billboard Part 1

March 31, 2012 By 1 Comment

Schumacher Homes BillboardAs I was driving yesterday I had an opportunity to safely take this photo of a home builder’s billboard that caught my attention. It originally caught my attention because of how simple the ad was (a good thing!) and how prominent the website was. However what really surprised me was that it was done by Schumacher Homes.

I grew up in Ohio and worked for a home builder there for several years, and so I’ve been very aware of Schumacher Homes and their brand. They build a good home at a fair price on your own home site. Their advertising was always well executed and thoughtful. I even had a moment to meet Paul Schumacher and one or two of his executives at this year’s International Builders Show and they all were really sharp and engaging people. So before I begin my analysis let me say that the actual builder here is coincidental – and I wish Schumacher continued success!

I have actually seen similar billboards for Schumacher in several states recently (Pennsylvania, Ohio, and West Virginia). I have a hunch they they may have partnered with either a national billboard company (a Lamar board is pictured here) or several regional ones to place one large buy of inventory at a greatly reduced price. I have purchased billboards at up to 90% off of their retail price using similar tactics. To be clear I’m not anti-billboard at all if they are purchased smartly. I think in the right locations for the right price they can be very effective. As a medium though, they can suck cash out of your budget quickly if done improperly – so be careful.

Let’s continue on to the creative design of the board. It is very clear and straightforward in its main message (best price per square foot) and its call to action (the website). The “on your lot” banner and energy star logo are nearly lost completely and probably should have been dropped or repositioned. The image I’m also hoping they have changed per market to appeal to those who are most likely to pass by, but I can’t confirm that is the case.

Lets talk for a moment about the large and clear website on the bottom. I’m becoming convinced that website names in certain forms of advertising are become less important every day based upon how people interact with the web. IF you have an SEO strategy and execute it properly then you don’t have to try and brand the website as much as your company. When the prospect sits down at the computer they will type your name into Google and find you quickly and easily. I tried typing in Schumacher Homes with about 15 different spellings and each one brought me right where I was trying to get to. Perhaps they were concerned that their traditional logo would be unreadable at higher speeds, I’m not sure. In any case how likely is it for a prospect to go to that website the moment they see it while driving 70 MPH down the freeway?  Or will they wait until a later moment in time and attempt to recall what they saw – most likely by typing it into a search engine. Something to think about – especially if you’re not confident in your SEO strategy.

The last item I want to discuss on the creative design is the selection of color. While it is true that black and white are a high contrast combination, they also tend to feel a bit lifeless and bland. If you’ve seen ads of theirs in other mediums, or you’ve visited their website then you know what a great job they generally do with color. In this case though, it subconsciously tells consumers that the way they achieve the best price is by potentially cutting quality. Which is a shame because using color would not have cost any more – however that is still what is inferred.

We’ve covered the medium and creative design, but there is much so more to discuss. Come back and we’ll look deeply at the message and the psychology behind it in part two.

What do YOU think about billboards as an advertising medium? What about their design for this one?

Filed Under: Branding, Case Study, Marketing Psychology, Marketing Strategy, Media Buying Tagged With: , , , , , , , ,
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