Archive for August, 2008


Saturday, August 30th, 2008

“Vote NO For President”

Your only option on the Presidential ticket this year includes either a black man or a woman. I don’t know about you, but that makes me proud to be an American. What a land of opportunity! Finally, a country of equality! While I’m still tossing around opinions about the candidates, I’m glad they are who they are.

“But,” I wondered, “what will the poor chauvinistic bigots do?”

I soon found out. As I was waiting at the print shop, a clearly upset man came in to have a sign made. His rough draft (this is his original copy) was scrawled on a piece of scrap paper:

It says, “Choices Not Good in 2008! Vote NO For President!” but he changed it to “Choices Not Great in 2008.” It kinda rolls off the tongue, doesn’t it?

He had the sign laminated and hung it in the window of his car. If you see him driving around our town, give him a honk and a friendly wave. He needs all the support he can get.

He’s going to have a tough four years, no matter what.

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Wednesday, August 27th, 2008

A Tale of Two Brains or Three?

It has been said men likely think with their head, rarely think with their hearts, and sometimes even think with their…

I wonder which brain locks in on the same-old-same-ole advertising ideas. Who’s run this? Have you seen this somewhere else? What terms make it work best? Should the warning signs be yellow, or should we use stop sign red?

These are NOT made up questions. These are asked weekly.

Below is the response to a real client situation. Hang in there. You might get a really good idea.

IQ- Impact Quotient is simply an ads power to deliver its intended results. The impact quotient of an ad is certainly affected by outside issues. Ads don’t deliver in a vacuum. (You know this.) A few things to keep in mind are product purchase cycle, media delivery vehicle, share of voice, etc…

Here is an example of each:

Restaurants verses furniture stores is the first. We humans need three squares a day at least, and we buy a new set of bedding once every 10-15 years. Regardless of the quality of message visa vies IQ the impact of the restaurant ad will happen quicker. It is not likely a person is going longer than several hours without food, but even if your mattress is bad you’ve slept there for years and another several nights won’t matter.

The store has to decide between newspaper and radio. They decide because they read the newspaper each day, “their customers do as well.” But we know the customer only reads the special food section on Thursdays and advise radio as the best option for the campaign. The radio campaign would start Monday and play 4x per day 6a-5p. (We know MMJ is a radio listener of course.) So by the weekend the NP ad has made 1 impression if the entire customer base read the paper, while the radio would have played 20 times and probably reaches a 3 or 4 (impressions) in the market.

Share of voice is the last example I’ll give you. Hometown Furniture decides they are going to run their annual ½ off the warehouse sale next week. The event if studied closely has been losing sales volume each year for the last 3 years, but the volume is better than thinking-up some new event that might be untested, so they just keep on running it. Cool! But the same week the competition decides they are going to running a store remodeling event at the same time. The store remodeling company spends 20% more than Hometown the same week and although the events both feature terms, and discounts the 20% extra promotion drowns out the ½ off warehouse promotion.

Urgent messages making “a limited time offer” raise the impact quotient for customers who are currently consciously in the market for the product, but the lower the impact quotient for customers who are not currently in the market. The brain is a very smart organ. It refuses to store information that isn’t relevant. Therefore, you cannot establish a long-term brand position with a series of short-term “limited time offers.” The only thing that will be remembered long-term is “never buy from these people unless they’re having a sale.”

Also remember the eyes and ears are not only separate organs, but also connected to entirely separate parts of the brain that gather, process, store and retrieve memories in entirely different ways. One commonly held myth is that we remember “more of what we see than what we hear.” In fact, the opposite is true. Visual memory is fragile, but auditory memory is involuntary and long-term. This is why we can sing along with more than 2,000 songs we never wanted to know.

Far more important than your choice of media is your choice of message. I realize as an old advertising guy you might believe research into the “right” media is as important as message. I simply disagree. A furniture store can only handle a maximum of 120 ups per sales person per month. So in the case of a store like Hometown that might have 15 salespeople on the floor, they only need 1800 visitors. I believe a well crafted message is far more likely to get Ms. Jones to the store. Hype terms and discounts combined with limited time offers, or mass flight TV or radio schedules, or double truck newspaper ads won’t move a person an inch who isn’t already interested in the product.

Regardless of the offer Ms. Jones isn’t going to jump up and suddenly decide she must have a sofa this weekend! The right message delivered over the right buying cycle results in long-term growth of sales.

As you can see, there is no perfect answer. The choices that yield the greatest results today will likely yield the lowest results long-term. And the most monotonous thing in the short run is the most powerful thing in the long run.

But that’s just how life is, isn’t it?

Writer’s note: The information here has been gathered over the past 11 years studying at The Wizard Academy in Austin, Texas. If you’re feeling drawn to learn more and want to get it straight from the horse’s mouth, check out the Magical Worlds Communications Workshop. For $3,000 plus travel you’ll be able to experience this study for yourself. I’ll tell you one thing; life sure begins to look different once you understand these principles.

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Monday, August 25th, 2008

Idiom: Peace

World peace. Peace of mind. Give peace a chance.

Your customer might not have inner peace about shopping at your store. It’s going to cost her a lot of money. It’s going to take a lot of her time. She’s going to have to face off with salespeople who only want to sell her and delivery routers who only want to schedule her, with little regard for her needs and her time. It’s a potential mistake she will have to live with for a long, long time.

Is it war or peace on the battlefield of your showroom floor? What do you do to ensure your own little corner of world peace for your customer? What policies and practices do you have to guarantee her peace of mind?

What little white flags are you waving for her?

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Friday, August 22nd, 2008

Generational Stew

Things are whacky. Never in the history of the world have four distinct generations been working in such close quarters.

Craig Arthur is a Wizard of Ads partner. You can visit his site Wizard Partners if you’re interested in checking out his point of view. I was struck by a post summarizing a seminar he recently attended. Below you’ll see his 5-point summary for keeping Gen-X’s and Gen-Y’s happy with their work.

1. Think “High-Tech”
Make sure your company invests in the latest technology. Gen X & Y want the latest and greatest. Provide it and benefit from high productivity and dedicated employees.


2. Create Fun Environments
Add entertaining elements to work environments, e.g.… chair massages and spaces with lounges for social networking. Celebrate birthdays and recognize achievements. Offer work contests with high-tech rewards such as MP3 players, Mobile Phones and Laptops.

3. Leverage Relationships / Get Personal
Gen X & Y value friends and work mates of their own generations. They are the perfect resource for word-of-mouth recruitment for new employees. Educate them about the kinds of workers your business is seeking. Offer incentives for their part in the process.

Communicate. Communicate. Communicate. Build relationships with these generations by talking with them, showing you care, and making yourself available to hear their concerns. And never forget to thank an employee for doing a good job.

4. Embrace Workplace Flexibility
Develop an accommodating environment. Provide employees with opportunities for job changes, internal mobility and flexible schedules. Don’t micro-manage. Give them room to grow and make decisions.

5. Expand & Enhance Training Opportunities
Gen X & Y thrive on developing their work skills and knowledge. Most opportunities are seen as stepping-stones to something better in terms of their career. Provide learning opportunities by expanding e-based learning modules.

Unless you’re already planning your “Going Out of Business” sale, you WILL be affected by generational transfer. Bookmark TheLivelyMerchant.com. I write about family business issues weekly.

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Thursday, August 21st, 2008

The promise of 2008.

When asked this is what retailers said:

Home Furnishings Business Web Survey

Retailers, what is your business’ major New Year’s resolution for 2008?

major renovations to your retail space

10%

develop retention strategy for employees

0%

improve merchandising to help build sales

40%

build a greater on-line presence

50%

I wonder how you are doing?

Want help? I’m available.

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Wednesday, August 20th, 2008

The sighs and sorrows of men

I can’t remember where I downloaded this drawing but I’d like to give the artist proper credit. If any of you know where it is from, kindly contact me and I’ll change the post to give full credit. The reason I chose it for this post is because it so simply and understandably shows the expression of human emotions.

The transfer of a family business from where you are now to where you want to be in the future can be equally demystified with planning. Generational collisions don’t have to become bloody battles for supremacy. Moms and dads and uncles and grandfathers don’t have to fight to the death to move the family business to children, cousins or grandchildren if only everyone would do a little planning.

I’ve created a forty-two month transition plan that turns sighs to excitement and sorrows to joys. The plan is sixteen steps. The ordered steps might overlap from time-to-time, but deciding to leave one out could turn out to be hazardous to your wealth and your mental well being.

The plan to transition your business is:

  1. Recognize the need for change.
  2. Desire for change is planted in senior generation.
  3. Changing of day-to-day behavior by the senior generation.
  4. Analysis of current decision-making procedures.
  5. Documentation, stabilization and formalization of decision making processes.
  6. Broadening of decision making roles allowed by senior generation.
  7. Identification of all key tasks.
  8. Documentation of all tasks.
  9. Development of KEY management team.
  10. Investigate the first look at an exit strategy.
  11. Design the exit plan.
  12. Evaluate the overall organizational structure and making filling in any blanks a priority.
  13. Work with current and new team to iron out communication styles.
  14. Implement the new planned organizational chart.
  15. Hire additional needed staff and fire staff unwilling or unable to follow the new plan.
  16. Develop a board of directors and family council, to act as a sounding board during the transition.

The idea of business transfer is nerve racking enough. Planning makes mountain climbing feel more like a walk in the park. Either way –planned or not – time is moving on and so are your customers. Make sure your family firm is seen in the best light by leading your team, rather than letting circumstances of fading health, waning interest and lackluster results lead you where you might not want to go.

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Monday, August 18th, 2008

Idiom: Family Traditions

Have you ever been served dinner on the red plate? Not any old red plate, but THE Red Plate.

You can get one on eBay: it’s simply a plate that says, “You Are Special Today,” that’s used to celebrate birthdays or achievements or just to cheer someone up.

In our homes and in our companies, traditions say, “This is who we are and what we do. We always do this.” Traditions are comforting and reassuring. Traditions like the Red Plate take this to the next level by adding, “YOU are an important part of who we are and what we do. It wouldn’t be the same without you.”

What traditions do you have in your corporate family? How do you make your customer feel like part of your family?

Sounds like the childhood equivalent of the “Employee of the Month” parking space, doesn’t it? But I like it. I’d like to be served a piece of cake on the Red Plate.

Wouldn’t you?


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Friday, August 15th, 2008

Howling at the Moon

Did any of you get mad today when your inbox dinged with the sound of breaking news from Furniture Today? Amazingly, the furniture retailer community could not see the value in partnering with HGTV. HGTV and the NHFA shared niceties about one another, but the bottom line is that after many months the entire industry could only get 100 signed letters of intent.

This is shameful. The cheese people, the milk group, and even the pecan association are all capable of running national advertising aimed at raising public awareness for their products.

I personally attended one of the webinars and a live presentation at this summer’s Vegas market. This program was well thought out. This program had a real chance at raising consumer awareness. This program might have been one of the first steps at getting away from the “crack cocaine” NO,NO,NO combined with manufactures product promotions that have done little to nothing to increase the market share for furniture during the 22 years I’ve been in this industry.

It is fascinating that dealers still believe customers believe the crap they are saying in their advertising. Assuming dealers haven’t taken steps to jack-up their prices to cover the rising cost of terms, I wonder if there is recognition that each of these promotions damage the retailer’s health both short and long term. Short term, your expenses are increased or your margins are decreased to cover the price of financing or the commensurate mark down to the price. Long term, we continue to train consumers that price is the deciding reason to buy now, or they should wait for the next sale.

Do any of you like me ever wonder how Crate, Restoration, or Pottery Barn ever sells anything? I mean really, would a consumer really spend $2,400 for a fabric sofa that is not one bit better looking or built than a typical Rowe sofa sold by independent dealers day in and day out for $999? The answer is a resounding YES. Twenty years ago these retailers were considered specialty stores. Today some old timey retailers still describe them this way, while their market share is at an all time high. They are often compared to in market showrooms when talking about fashion, and they have tapped directly into the customer’s desire to live a certain way.

Lifestyle!

So I wonder if assertiveness, closing techniques, confidence tricks, conversion ratios, questioning, repetition, interrogation, and propaganda will always rule the day in independent furniture retail. Or is it possible to join the conversation already in progress? A conversation which includes Extreme Home Makeover being the number one show in primetime several weeks last year, or a conversation between 45,000,000 viewers of HGTV?

The apparent answer is NOT YET. WOW! Eventually the furniture business will move beyond the Henry Ford Model-T mentality of jamming product down the throats of the customer by making her believe she is getting a deal of a lifetime, while your margins are barely enough to pay the bills.

I just don’t get it! I guess I’ll just keep howling at the moon.

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Tuesday, August 12th, 2008

Idiom: Assumption

Don’t ever ask a woman when she is due.

Don’t assume she’s expecting, even if you’re at “Babies-R-Us” and she’s wearing a baggy t-shirt printed with a big arrow pointing to her bellybutton that says “BABY.”

You know what they say about people who “assume,” don’t you? It makes an A*S out of U and ME. There is no fix for this faux pas: false assumptions can faze a friendship faster than you can say, “Forgive me.”

But you really do need to know about your customer. You need to know how much she can afford to spend. You need to know how it will be used. You need to know about her family.

How do you find out about her without making – or, worse yet, revealing – your assumptions?

You think you know what your customer wants, what she likes, what she hates, what makes her happy and what ticks her off. But how do you know what you know is true? Here’s how.

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Sunday, August 10th, 2008

Crazy Little Ideas

Hello, Music City! Last weekend, we had the pleasure of attending the Boom Your Business seminar in Nashville hosted by Wizards of Ads partners. While the edges were a little rough in places because it was the first-time ever, Amy and I came home with two notebooks filled with opportunities for our customers.

We learned from Michele Miller, author of The Soccer Mom Myth, about the dangers of stereotyping female consumers.

David Young talked about the 6-steps of online conversion. David is a Persuasion Architect and teacher who also taught about persona based marketing. The Meet Ms. Jones analysis from Amy Lively and our marketing partners at R&A Marketing are already likely to be the best 1-2 punch in persona writing in the United States.

Peter Nevland from Spoken Groove rocked our world with his wonderful mix of fun, funky, and faithfulness. Peter challenged the room to be unafraid of crazy little ideas. Hopefully he’ll do a young writers workshop at our daughter’s school this year; our Midwest customers will not want to miss it when he does.

Tom Wanek, one of the newer partners, explained how biological signaling theory can be translated into our retail showrooms: simply stated, the combination of what you say and what you do signals customers what to expect or cause confusion when your words and your actions conflict (I talk about this as personal experience in the May 29 post, “Quicksand.”) Tom is a smart retail mind. You should begin to follow him.

Clay Campbell from Kentucky Opry brought down the house with his authenticity. His daytime job is writing books and helping small business owners achieve their wildest dreams. His new book, “12 Steps to A Better Website” is fantastic. Many ideas to improve our client’s sites will come from Clay’s work.

These are just 5 of the 14 presenters. The others were equally great.

In family-owned retail, the competition continues to stiffen. The Lively Merchant and R&A Marketing are constantly studying inside and outside our industry expertise to bring you the best ideas from around the world.

Stay tuned.

This fall, R&A Marketing will host a whirlwind 1-day no-holds barred seminar on small business marketing. Our customers already testify to the benefits of being in relationship, but we want a whole new audience for the day. Details will be posted here later, or contact us for more information. I know it will knock your socks off.

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