Empowering Marketing Service providers
july 2012
Partly Cloudy with a Chance of Opportunity Three sure-fire ways you can find the silver lining among the clouds Clear-Cutting Oil Change Morph
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One of the beautiful aspects of a silver lining is that your competitors are not likely thinking this way. They’re too busy feeling sorry for themselves and bemoaning change.
Publisher mark potter
July 2012
Marketing Manager brandon clark
P2
MANAGING EDITOR
Publisher’s Thoughts
michael j. pallerino ART DIRECTOR brent cashman
Editorial board chris petro GlobalSoft
Clear-Cutting
P4
Marketing Insights P8
Best of Canvas Notes Oil Change
tom moe Daily Printing
P10
dean petrulakis Rider Dickerson
Three sure-fire ways you can find the silver lining among the clouds
Partly Cloudy with a Chance of Opportunity
david bennett Bennett Graphics
P16
tony narducci O’Neil Printing
How – and why – you must change from PSP to MSP
Morph
CANVAS, Volume 4, Issue 4. Published bi-monthly, copyright 2012 CANVAS, All rights reserved, 2180 Satellite Blvd., Suite 400, Duluth, GA 30097. Please note: The acceptance of advertising or products mentioned by contributing authors does not constitute endorsement by the publisher. Publisher cannot accept responsibility for the correctness of an opinion expressed by contributing authors.
CANVAS P1
Publisher’s thoughts
Clear-Cutting When a paper company clear-cuts a forest, some people get a little bent out of shape. They can’t believe a mill would cut down all those beautiful trees. Beyond the perception that it’s environmentally wrong, some get a bit nostalgic about the destruction of old trees. These same people may not realize that an old tree is not necessarily a good tree. At some point, a tree goes from producing oxygen, to producing carbon dioxide, which isn’t good for the environment. In addition, when you clear-cut a patch of forest, new growth occurs. The smaller trees and seeds that never received light suddenly are in a position to grow. In turn, these young trees produce oxygen that help revitalize the environment. A few years ago, I was reviewing videos from the BRITE Conference. Held every year at Columbia University, the conference is a “who’s who” of thought leadership. During this particular session, conference leaders were trying to tackle the impact of the Great Recession.
As our industry and our economy reboot, small businesses and new ideas are taking hold. These businesses and ideas are the lifeblood of a new economy.
Interestingly, a couple of the speakers discarded the notion that we were in the midst of recession, instead dubbing the difficult period as the “Great Reboot.” They believe that difficult times bring new ideas and new entities to the forefront. I am a big proponent of the “Great Reboot” notion. I understand that some of our greatest companies were built during difficult times.
As our industry and our economy reboot, small businesses and new ideas are taking hold. These businesses and ideas will be the lifeblood of our new economy. Together, they will spur innovation, employ people, and give each of us hope. These are amazing times for those who see the world through rose-colored glasses. The landscape has been clear-cut, the playing field leveled. New entities will flourish, and opportunities abound. Our cover article in the July edition of CANVAS Digital speaks to thought leaders, marketing minds and those impassioned few within our industry. “Partly Cloudy with a Chance of Opportunity” highlights what history has proven time and time again: The best companies are built in downturns. In addition, Ron Strauss discusses how a multiplicity of media technologies and channels available for communications continue to multiply before our eyes. His article, “Morph – How to Change from PSP to MSP,” shows you how to use this to your advantage. We continue to see the silver linings in our industry. And we know you feel the same. I hope you are having a wonderful summer and I thank you for making CANVAS part of it. Warmest regards,
Mark Potter, Publisher P2
CANVAS July 2012
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marketing insights
Say what?
Talkin’ ’bout my New survey calls generation Facebook a fad There is a new generation forming – a culture of “real-time information seekers and problem solvers” driven by the spread of today’s smartphones. According to a recent study from the Pew Research Center’s Internet & American Life Project (http://www.pewinternet. org/), young mobile-device users are using their phones to research problems, hatch plans and make decisions on the fly. The study showed that 50 percent of all U.S. smartphone users used their device in the 30 days prior to the survey to coordinate a gathering; 49 percent used it to decide whether or not to visit a business like a restaurant; and 47 percent used it to settle an argument. And what happens if the person is a nonsmartphone owner? According to the study, only 10 percent used their mobile phone during the 30day period to decide whether or not to visit a business.
13 percent trust Facebook to guard their data, while 12 percent feel safe making purchases through the site
Maybe there was more to Facebook’s stock fluctuation than anybody knew. According to an Associated Press-CNBC poll conducted by GfK Roper Public Affairs and Corporate Communications (http://ap-gfkpoll.com/), about half of the American public (46 percent of all adults and 51 percent of young Americans) believes Facebook eventually will slip back into obscurity. Even more interesting is Facebook’s privacy issues among its users. For example, the survey showed that three out of every five Facebook users said they have little or no faith that the company will protect their personal information. And only 13 percent trust Facebook to guard their data, while 12 percent feel safe making purchases through the site. Even Facebook’s most dedicated users are wary – half who use the site daily said they don’t feel safe buying things on the network. What about the ads on Facebook, its moneymaking component? The survey showed that 57 percent of users said they had never clicked on an ad or Facebook-sponsored content. About another quarter say they rarely do.
That’s what he said... Although there are risks in moving too fast, companies often don’t survive long enough to apologize for moving too slow. – Groupon CEO Andrew Mason in a letter to shareholders on the company’s ambitions to expand from the daily-deal it offers into other types of local services that help small businesses build its consumer bases P4
CANVAS July 2012
The amount, in billions, that the global mobile advertising market was worth in 2011, according to an analysis by the Interactive Advertising Bureau and its partners. In the North American market, the market was worth $1.7 billion. The study was undertaken in an effort to size the mobile ad market both globally and regionally by the IAB Mobile Marketing Center of Excellence, the IAB Europe and the IHS Screen Digest.
marketing insights
How to (and not to) control your social media content If you have experienced trouble with the social media side of your content marketing, don’t fret. Not every content marketer is comfortable with all the media there is to deal with these days. Why? Mostly because we all want to maintain control of our content. To succeed at content marketing, you must create a system that offers quality content every time. That means having a quality assurance program integrated into your plan that will help minimize
those occasions and enable you to feel comfortable with your content, no matter where it appears across the web. To help you out, the Content Marketing Institute outlined the dos and don’ts of controlling social media content. To view the entire article, written by Manya Chylinski, marketing consultant, writer and founder of Alley424 Communications, visit www.contentmarketinginstitute.com/2012/04/ keep-control-over-your-social-media-content/.
What you should do Have a plan: Every article you’ve ever read on creating content includes a reference to planning (i.e., create an editorial calendar or a checklist). Advanced planning is key to helping assure quality. Nothing scuttles a content marketing program faster than not knowing the best time and place to publish your content on the right channel – or not knowing the steps to take beforehand to get it done properly. Train your team: Make sure everyone on your contentproducing team (internal and
external) understands your organization’s goals and the required procedures involved in your content marketing program. Provide them with a style guide. Teach those who manage your real-time communications (e.g., Twitter or Facebook) what your company considers appropriate and inappropriate for posts. Outline your criteria for escalating any concerns about posts or replies to a supervisor. Providing adequate training is the best way to ensure your team is producing timely, relevant and valuable content.
Designate a media monitor: Assign specific team members to monitor all mentions of your company online. Whether you use your own monitoring system or a market tool, stay on top of these conversations. Designated team members can track mentions and keep tabs on customer sentiment on a regular basis, so you’ll know how to respond in a timely manner, and important conversations won’t fall through the cracks.
What you shouldn’t do Don’t drive angry: Don’t respond right away to disparaging comments about your company. Replying immediately, but inappropriately, can make the situation worse. Slow down, take a deep breath, and lean on your style guide and content rules to ensure that your response produces a good outcome.
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CANVAS July 2012
Don’t mumble: Unless your blog is about creative writing, use simple language and avoid jargon. Don’t muddy your message. Think about the meaning of the words you use and how your audience will understood them. Writing content that’s full of jargon and esoteric language is like mumbling to your readers. You must create content that’s useful and readable.
Don’t SEO just to SEO: Keywords are critical to search engine optimization, so you want to include them whenever possible in all your content. But make sure you do it organically. Monitoring your use of keywords will help ensure your content is top-notch and gets appreciated for the value it provides – not just because it was easy to find.
marketing insights
She said it... CEOs say social media will be key
We’ve been allocating some dollars for experimentation every year because the marketing landscape is changing so quickly every single month… I’m always encouraging my team to come to me with an idea. – Xerox CMO Christa Carone on the company’s small budget dedicated to experimenting with emerging ad and marketing platforms
Video that ad, please Here are some numbers you can wrap you advertising programs around. According to a comScore Video Metrix report, U.S. web users watched almost 37 billion content videos online during the month of April. The viewership helped video ads account for a record-breaking 9.5 billion views – or about one in five of the total videos viewed online. Hulu topped the chart with 1.6 billion video ads delivered, followed by Google sites with 1.3 billion, the BrightRoll Video Network with 943 million, Adap.tv with 881 million, and the TubeMogul Video Ad Platform with 831 million.
Ask a CEO to rank the hierarchy of his company’s customer interaction methods, and you most likely will get a response like this: face-to-face, websites, channel partners, call centers, traditional media, advisory groups and social media. But according to a recent IBM survey of 1,709 CEOs from 64 countries, that may soon change. Surveyed executives expect social media to climb the ranks of traditional outreach methods and become one of their most important customer-interaction tools within the next three to five years. The study – conducted through in-person interviews – also found that CEOs plan to create a more social workplace. For example,
Surveyed executives expect social media to climb the ranks of traditional outreach methods and become one of their most important customerinteraction tools within the next three to five years. 48 percent of the surveyed companies that were among the top 20 percent in terms of revenue and growth promote organizational openness so that employees feel free to collaborate. In addition, the study highlighted a data divide among CEOs. While 54 percent of the top 20 percent companies said they have access to and can draw insights from data, only 26 percent of the others said as much. And 57 percent of the top companies said they could translate those insights into action, while 31 percent of the others said they were able to do so.
The percent of small businesses (with fewer than 100 employees) that have a stand-alone mobile website featuring content and layout designed specifically for mobile purposes, according to web.com’s “Small Business Mobile Marketing.” Interestingly, of the companies that had a strong mobile presence, 84 percent reported an uptick in business activity due to mobile marketing, and 69 percent said that mobile would be a key driver of business growth in coming years. For the study, web.com surveyed 50 companies.
CANVAS P7
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P8
CANVAS July 2012
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Partly Cloudy
with a Chance
of
Oppo
Three sure-fire ways you can find the silver lining among the clouds P10 CANVAS July 2012
I
had just finished sharing some perceptions on the state of the economy and the challenges facing most salespeople during a recent seminar, when I noticed one of the attendees prepare to respond. I knew what was next.
ortunity By Dave Kahle
“Dave, what’s the good news? Where’s the silver lining?” he asked. “Great question,” I said. So many of us have been concentrating on the dark clouds recently, that we haven’t noticed the silver lining around them. Sure, the economy is limping along in many industries – even ones accustomed to regular growth. The challenges of the Information Age can seem overwhelming. But at the same time, there are unique and powerful opportunities for salespeople who choose to pursue the silver linings.
CANVAS P11
Partly Cloudy with a Chance of Opportunity
One of the beautiful aspects of a silver lining is that your competitors are not likely thinking this way. They’re too busy feeling sorry for themselves and bemoaning change.
The difficult times are the ones
Opportunity No. 1
that distinguish true professionals
Your customers may be reducing staff
from those who merely are in the
We have all seen this. What looks like a negative, holds
right place at the right time. One of
the potential for great opportunity. Fewer staff generally
the characteristics that contribute to
means that some people are doing jobs they have never
success in difficult times is the abil-
done before (read fewer people doing more jobs). These
ity to see opportunities in almost any
are both opportunities for the creative salesperson.
situation. This is such a valuable trait to have today.
If someone suddenly becomes responsible for a product category you sell, you have a great opportunity to
As examples of how negative
educate that person on your product, the reasons why
situations always contain the seeds
the company has worked with you in the past, and the
of positive opportunities, here are
benefits you bring to the company. Do this, and you will
three issues you may confront as a
continue to position yourself as a valuable resource. You
result of the slow economy. But if
can capture this opportunity by leveraging your position
you look a little closer, you’ll see they
into opportunities to present more of what you sell.
provide unique opportunities.
If some of your key contacts are responsible for doing jobs they haven’t done before, they may be able to use your help. By expanding the services or products you sell to them, you may be able to simplify their jobs and reduce some of their stress. For example, a purchasing
P12 CANVAS July 2012
agent may suddenly become responsible for buying two or three new categories that were someone else’s responsibility. Now is the time to tell that account why he should buy more from you. Tell him that by doing so, you’ll reduce the number of salespeople and purchase orders he needs to deal with (read all those time-consuming details). That can be a powerful attraction in these circumstances. One of a salesperson’s most potent opportunities is the customer who’s overwhelmed with the details and complexity of his job. If you can help him simplify his job and assume some of what he used to do, you’ll have a powerful opportunity to establish a growing importance with that account.
Partly Cloudy with a Chance of Opportunity
Remember to be particularly sensitive that your customers may have
people as often – if at all. This lack of attention is an open door for you.
more to do. Initiate conversations
As you call on your customers over the next few months,
about how you can positively im-
pay particular attention to anything you can learn about
pact their time and relieve their
possible competitor cut backs. Try to find out which of
stress level by reducing the num-
your customers or prospects may be impacted and give
ber of vendors they deal with. Find
them special attention.
creative ways your company can help them. If you can more closely ingrain your
If you can make an inroad with an account formerly committed to a competitor, the relationship you establish will work well even after the market turns around.
company with your customers in
It may be that your competitor is not reducing sales-
these difficult times, you’ll become
people, but rather a service or production capability. If
more important to them and enjoy
that’s the case, it’s possible that some of your competitors’
a growing portion of their business
accounts may have trouble with delivery, service, quality,
when the economy turns around. It
etc. See if you can find out if they are experiencing issues
is a rare opportunity.
like this. Again, these are opportunities for you.
The difficult times are the ones that distinguish true professionals from those who merely are in the right place at the right time. Opportunity No. 2
Opportunity No. 3
In a move to reduce costs and sur-
This one is a real challenge. What good can come of a cus-
vive in this difficult economy today,
tomer going out of business in your territory? If you do your
a lot of companies are reducing
job well, and are blessed with a little bit of luck, this could
staff. That can open up an incred-
turn into two or three good customers down the road.
Your competitors may be cutting back
Your customers close down or move their facility
ible opportunity for you to prosper
If you’ve done your job well over the past few years,
in the long run. For example, if your
you’ll have created positive relationships with several key
competitors are reducing the num-
people. You will get to know them personally and profes-
ber of salespeople they employ,
sionally. You will get to know their families. You will have
relationships with their customers
gained their respect and trust. Many of them are not go-
may suffer. That’s an opportunity
ing to move to Mexico, China or anywhere else. They’re
for you. Your competitors’ custom-
going to stay right where they are, which means they’ll be
ers won’t see the competitive sales-
looking for a job similar to what they’re doing now.
P14 CANVAS July 2012
Get their home addresses, phone numbers and re-
busy feeling sorry for themselves and
sumes. When you hear of an open position, let them
bemoaning change. Use these linings
know. Try to help them find jobs in your area. Regardless
as an opportunity to expand your busi-
of what happens, they’ll recognize that you tried to help.
ness or find new accounts. You’ll be
Keep in contact with them. It’s possible they’ll end up
the envy of your colleagues. Adapting
in a similar position with another company in your area.
to change and looking for the silver lin-
That would be a great business opportunity to leverage.
ing in the dark clouds can be a reward-
One of the beautiful aspects of a silver lining is that your
ing experience. It’s the true mark of a
competitors are not likely thinking this way. They’re too
successful professional.
About the Author Dave Kahle has trained tens of thousands of distributor and B2B sales people and sales managers to be more effective in the 21st Century economy. He has authored nine books, and presented in 47 states and eight countries. Sign up for his weekly Ezine. For a limited time, you can purchase his latest book, “How to Sell Anything to Anyone Anytime,” and receive $534 in FREE bonuses.
P16 CANVAS July 2012
I
f you review research information about the printing industry, several facts jump out.
• Printing com-
• Competing on
• Print dollars per
pany owners
price continues
capita continue
the number
survivors are
are concerned
to shrink margins.
to decline, while
of printing
companies
about pressures
overall media
companies is
adapting to
on margins,
communica-
declining and
the new media
despite aggres-
tions dollars per
the industry’s
reality and
sive reductions
capita increase.
share of GDP is
those show-
getting smaller.
ing increased
in employee
• Accordingly,
headcount and
• Among the
profitability.
other cost cutting measures.
How – and why – you must change from PSP to MSP By Ron Strauss
The new media reality is that there is a multiplicity
they’ve realized that their ties to
of media technologies and channels available for com-
the technology and equipment
munications – and they continue to multiply before our
they own shouldn’t determine how
eyes. So, how do you make sense of this complex land-
they add value in the future. They
scape? And how do you use your insight into all commu-
cannot be held hostage by their
nications mediums to help your clients and your clients’
equipment – no matter how cost-
clients navigate through this new landscape?
ly it was to purchase. The key will
The companies in our industry showing increased profitability are doing so, at least in part, because
be to amortize and recover those costs moving forward.
CANVAS P17
Morph
Your most valuable competence isn’t your equipment; it’s the people who are a part of your company’s value-creating network. Your most valuable competence isn’t
is a basic truism, it’s often clouded by taking a narrow
your equipment; it’s the people who
view of the business we’re in based on our inside-out
are a part of your company’s value-
needs, rather than an outside-in view based on our
creating network. If you don’t have the
customers’ needs.
right people with the needed competences, you have three choices:
Frankly, most customers are “media agnostic.” They don’t care about which communications media they use;
1. Train them
they care about creating demand and customers. That
2. Hire them
means they’ll use whatever
3. Cooperate with them
media accomplishes that. The idea behind the term
What Business Are You In? How Do You Add Value?
“media-mix” is that combin-
Examining your business by your
more demand, and therefore,
printing plant floor might suggest
value for your clients (rather
that you’re in the printing business.
than using them in an unco-
After all, there’s a lot of printing
ordinated manner). Combine
press and related equipment out
this with an integrated marketing communications ap-
there that must be kept busy and
proach, where all brand contacts received by a target mar-
paid for.
ket are relevant and consistent over time, and you have a
Examining your business from the
ing media often generates
method that’ll drive value creation for your customers.
vantage point of your current and
So, the business you’re in is to provide an integrat-
potential customers’ point-of-view
ed marketing communications approach – including
might suggest that you’re in the de-
the right media mix strategy – to each of your cus-
mand creation business.
tomers, which will improve the productivity of their
The mission of each is to create de-
communications budgets.
mand for a product or service. You lowed by preference, and, ultimately,
What’s Our Core Competence — Our Competitive Edge?
through trial and/or repeat purchases.
A good way to find out what this is, if you don’t know,
Your customers don’t want to
is to ask your best customers why they do business with
purchase media. They purchase
you. Hopefully, it’s because you provide value over a
media because it creates demand
competitive price. Find out what the source of that val-
for their products and services in
ue is. Each of the reasons your customers’ cite can be
the form of customers. While this
a competence.
do this by creating awareness, fol-
P18 CANVAS July 2012
Morph
This attribute usually will tie-in to
The first question should be, “What are the values
something the customer needs to
of my company and the value creating network of
offer value to their customers or val-
which it is a part of?’ For example, the core value of
ue-creation network. This means you
Wells Fargo Bank is “courtesy.” So, in deciding how to
must not only understand your own
conduct themselves, every employee must ask, “Will
value creation network – upstream
this decision result in me being seen as providing
suppliers, employees, trusted advi-
courteous service?”
sors, vendors, customers by served
The second question is, “How does that value (or val-
market segment, etc. – but also your
ues) create economic worth or added value?” In the
customers’ value creation networks.
Wells Fargo example, courteous service often results in
Ideally, you should know how the two
customers who feel well treated. This opens up an op-
networks intersect to create even
portunity to sell other services to that customer.
more added, and shared, value.
Often, the attributes mentioned by current customers
One way to gain insight into these
may offer insight into what other services to offer. On the
value-creating networks is to un-
other hand, you may find you must work harder at carv-
derstand the role and use of values.
ing out a core competence or attribute that your customers value. Try discussing
It takes communications. Staying in touch. Team-based selling and service – where there are multiple points of communications and contact with your customer’s organization and their customer’s organization.
what their current frustrations are with the system. This may shed light on new ways to add value. If you don’t have the right employees with the competences you need, you can train, hire or “cooperate.” Cooperate means examining your value-creating net-
Values are principles, ideas, beliefs,
work and looking for needed competences among other
standards and rules that help individ-
players in that network. By approaching those players
uals in a company decide what’s the
with a vision for how your respective competences can
right thing to do. They help define
create added value, you can gain their cooperation and
the culture of each organization.
create a “virtual company.”
It’s important to note the differ-
Making this happen calls for careful planning and an
ence between “values” and “value.”
agreement on whom “owns” the customer relationship,
Value most often is associated with
how revenues may be shared, and how to mediate any
estimations of economic worth. Val-
disagreements or issues.
ues is a sociology term that describes ideals, principles and beliefs associ-
How Do You Express Your Mission?
ated with a culture, customs, groups
Here’s a quick example of how this program can work. Say
and institutions. If you don’t have the
you’ve talked to your best customers and you find that
resources to do this, partner with a
one of their frustrations is they’re losing customers as fast
market research firm as part of your
as they’re adding them. This also is known as “the leaky
new value creation network.
bucket” syndrome – or “churn.”
P20 CANVAS July 2012
Morph
One way to gain insight into your and your customers’ value creating networks is to understand the role and use of values. With your customers’ permission, talk to their former customers to see why they stopped or cut back on their business dealings. Were they not being valued? Was there a perceived indifference? Strangely, the better your customer’s company performs on ac-
indifference. That’s why the vendor who has been paying attention to them gets their business. What does it take to overcome and/or prevent feelings of perceived indifference? It takes communications. Staying in touch. Team-based selling and service – where there are multiple points of communications and contact with your customers’ organization and their customers’ organization.
curately delivering on orders and
These points of contact should use multiple types
execution, the less need there is
of media, depending on the type of message and fre-
for interaction between them and
quency. Overall, each contact point should receive at
their customers. This
least one message per month — or a
might lead them to
minimum of 12 per year. Each message
believe everything was
can contain news or information that ad-
fine. Customer satisfac-
dresses your contact’s needs. The exact
tion surveys may even
media mix profile and content will de-
indicate
pend on many factors contingent on the
things
are
fine. But until another
industry and markets served.
vendor comes along
We live in a time of rapid change and
and pays attention to
challenge. This change is impacting many
them or something goes wrong with
of your served markets and customers, which creates op-
your customer’s performance, you
portunities to redefine your business mission and service
have churn.
offerings, rethink how you create value for your custom-
Perceived indifference is one of the root causes of customer defec-
ers, reconfigure your value creating network, and find who the key players are.
tion. The actual incident that precip-
Properly done, we can make the transition from a tradi-
itates defection may be operations
tional PSP to an MSP, and migrate from a land of scarcity
or performance related, but that’s
to a land of opportunity. It all depends on your frame of
often a handy excuse customers cite
mind and how you choose to see the world. Most of all,
when acting on feelings of perceived
it depends on how you decide to act.
Ron Strauss is founder and senior executive officer of Brandzone LLC, an Atlanta-based brand-guidance firm. He also is co-author of “Value Creation: The Power of Brand Equity.” Strauss works with CEOs and their staffs in deploying the unique power of brands to motivate employees, suppliers, customers and other network partners to create meaning and purpose for all, sustainable competitive advantage, and economic value-added outcomes. Visit his Linkedin page at www.linkedin.com/in/ronstraussbrandzone
P22 CANVAS July 2012
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