Stop Negotiating to Make Your Brand Great

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.

Case Study: Home Builder Billboard Part 2

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.)

 

The Real Story Behind What’s Missing on the New iPad

Siri isn't on the new iPadThe reviews are in, at least the ones that count. Over 3 million consumers voted with their wallet in the first few days after the latest version of the iPad was released. There’s been the usual mix of reviews praising it as perfection, and others saying it’s not much more than a cash grab. However, what I was both surprised by – and impressed with – was the lack of Siri (Apple’s digital assistant on the iPhone) and Facetime (Apple’s version of Skype) over 4g networks.

Now since you probably already know that I’m a huge tech head, you may be wondering why I was impressed that something was intentionally left out (although maybe not if you recall my “missing list” post a while back) – especially since both are really software issues? 4g is certainly fast enough for Facetime to work well, and Siri would certainly run well on a device that is every bit as powerful as the iPhone 4s. So why did Apple choose not to include them?

Neither met Apple’s own internal minimum standards for delivering a reliable customer experience that they would be proud of. Let me explain. (If you aren’t familiar with Siri, please watch this first)

Siri records sound from your device, and then sends that sound over the internet to Apple servers who interpret the sound and send back a response. This means that on the Wi-Fi only (very popular) versions of the iPad customers would have heard a reply like “Sorry, I can’t help you with that right now” anytime they weren’t on a Wi-Fi network. Imagine if they saw an advertisement of an iPad running Siri and theirs often ”didn’t work” for a reason they likely do not understand – how frustrating! This isn’t an issue with an iPhone because except in airplane mode (or if the user is techy enough to navigate multiple menus to turn off cellular data) it is always connected via 3g to process the data and give Siri its witty reply to your request.

Similar story with Facetime. 4g coverage isn’t wide spread enough to reliable offer a seamless experience, and a customer’s data plan could be eaten up real fast during a Facetime call causing a larger than expected data bill and – again – an even more negative (and expensive) experience.

This is all layered on the idea that Apple products are “just supposed to work.” A perceived failure rate (remember – the software isn’t failing) of even 15% on these two singular experiences could have harmed Apple’s brand. They weren’t willing to risk it, and I applaud them for it.

Some people say Apple thinks that the people who buy their products are too stupid and that is why they make decisions to “protect people from themselves.” I think they have too much respect for their reputation, the product they deliver, and their customers to offer an unreliable experience.

What do you think? Should they have included them? Is it brave or stupid to make a decision like that? Why?

VidBit: Delivering Happiness: A Path to Profits, Passion, and Purpose

Delivering Happiness: A Path to Profits, Passion, and PurposeWhat kind of person would offer new recruits $2,000 to quit before training classes were over? Or encourage his employees to help customers order a pizza at 2am? A successful entrepreneur and customer service and company culture visionary – Tony Hseih, the CEO of Zappos.com. In 2009, Zappos.com was sold to Amazon.com for $1.2 billion.

His insights are all valuable – and applicable – to your business. They may run contrary to the way most companies are run, but that probably only serves to prove that he’s on to something BIG.

“…we ultimately came to the realization that a company’s culture and a company’s brand are really just two sides of the same coin. The brand is just a lagging indicator of a company’s culture.”
- from Delivering Happiness