Nobel economics laureate Daniel Kahneman has spent his career determining how and why people make decisions. In his classic work, Thinking Fast, Thinking Slow, Kahneman relates that there are two broad types of decision making. System 1 is thinking fast; simply reacting without much thought at all. You really don't have to think a lot about how you commute to and from work. It's instinctive after a short period. System 2 is slow thinking that operates at a more logical level.
Seth Godin is one of the most admired and respected minds in marketing today. He is the author of more than a dozen books and publishes a daily must-read blog for anyone who runs a business. Seth is unique because he looks at the world through different lenses, continually challenging the status quo to take fresh new approaches that work more often than not. He was among the first marketing minds to understand that the way people purchase had changed and recognized that it is necessary to change messaging to effectively respond to the paradigm shift that had taken place.
Seth Godin had another brilliant blog titled Managing Reputation in the Age of Infinity. Godin writes,
Amazon sells junk.
More junk every day. And they know this.
They sell junk that would never, ever be sold at a Wal-Mart store (or a BKBG Shareholder showroom). That's because in order to get into a store, a buyer, a human being with a reputation, has to allocate shelf space. The easiest way to lose your job as a buyer is to put brand-destroying lousy products on a valuable shelf.
In another brilliant blog post, Bernadette Jiwa (The Story of Telling) reminisced about the buzz that occurred when Ron Johnson, the genius behind Apple Stores, was named CEO of JC Penney. Immediately, Johnson tried to reverse Penney's decade-long practice of offering continuous sales and discounts and replace them with small store compelling customer experiences inside of a large department store. Johnson's goal was to convert Penney's into a place where people wanted to congregate instead of a place to buy stuff. Penney's stock soared when the strategy was announced, and the entire brick and mortar industry waited with bated breath to see if Johnson would succeed. Johnson's plan crashed and burned. Penney's stock price nosedived 37 percent, and Johnson was replaced after 17 months.
|There are not too many BKBG Shareholders or Preferred Partners that have too little to do. To start the new year off on a more productive footing, consider the following.|
In his new book, This is Marketing, Seth Godin contemplates dog food. "Dog food must be getting better. More nutritious and, of course, delicious," Godin suggests as he notes that Americans spend more than $24 billion annually on dog food. The average price of dog food continues to increase, and so has the number of gourmet ingredients, such as sweet potatoes, elk and free-range bison.
Myth: Not everyone can be creative.
Fact: Most everyone is passionate about something, and when you are passionate, creative juices flow freely.
Research has found that expertise in any particular field is required to produce creative results. To understand a problem you need to know what would constitute a solution. In order to promote creative solutions among team members identify the skills that they need, offer feedback on their work and encourage team members to address areas where their skill set needs to improve. Amazon, for example, believes the ability to write effectively is key to creative performance. That's why the company mandates employees to write six-page memos throughout their time at the company. Employees receive feedback and coaching on their memos and they know that if they want to advance, memo writing needs to be at the top of the skill set ladder.
Payless pulled a fast one several weeks ago in storied Santa Monica, CA. The discount footwear purveyor took over a former Armani store and stocked it with $19.99 pumps and $39.99 boots. That should not surprise anyone familiar with Payless, but that's not the whole story. The company and its marketing agency then invited groups of Southern California influencers to attend the grand opening of a new retailer called "Palessi" and asked their invited guests to comment on the merchandise featured in the store.
Fifty percent of US consumers cite email as their preferred method of contact from brands, according to Gartner L2’s Digital IQ Index. What makes for an effective email from a brick and mortar retailer? It certain is not a discount coupon offer. According to the survey, open rates for discount offers declined from 20 percent in 2017 to 18 percent in 2018. What does work are informative emails.
The reason why focusing on features and benefits of products does not work is because the brain craves meaning before details, claims University of Washington School of Medicine molecular biologist John Medina. When a customer does not understand what a new kitchen or bath will do for them, how it will affect their lives and how it will make them feel every time they cross the threshold, there’s little chance that talking about the number of finishes or options available will make an impact.