The relationship between companies and consumers has changed, Book Discussion, Meatball Sundae part 2
For years, companies have searched for ways to “eliminate the middleman.” Well, we’ve gotten to the point where this is a reality for many types of businesses. Unfortunately, many companies mistakingly see this as a problem, not a solution. The first trend that Seth Godin discusses in Meatball Sundae: Is Your Marketing out of Sync?
is “direct communication and commerce between producers and consumers.” Basically this means that consumers now have (and expect) the ability to communicate directly with companies. This also means that it’s possible for companies to market and sell directly to consumers.
In the past businesses relied only on mass media to reach customers, but today the average consumer is going out of their way to avoid these interruptions (commercials are skipped, radio stations are changed, ads are forgotten). So much money has been wasted, and continues to be wasted on marketing to masses of people. Only a small percentage of people will even pay attention, much less be moved, by these mass marketing messages. So why do companies spend so much time and money on these methods? Because it’s the way it’s always been done. Like I said in an earlier post, instead of spending a ton of cash on ads, I would instead hire a team of excellent marketers that can take advantage of the free and cheap tools on the internet… but (you guessed it) that’s another story.
So, how can you take advantage of this new trend? Well for one, you should be immediately responsive to your customers. When they send you and email, they expect a reply. And fast. I’ve been guilty of leaving email unanswered for too long, and I’m sure you have too. It’s a mistake, and smart people learn from mistakes. Be smart, and remember that every unanswered email is a missed opportunity for you. Every interaction with the customer matters, and yet many companies seem to go out of their way to avoid customers (how many times have you been given the runaround?). This is a big opportunity for you to differentiate yourself and your company. Instead of ignoring those emails, answer them; engage yourself with your clients.
One of the advantages of this type of communication is that you can learn more about your customers, and even begin designing products based on their needs. In the past, companies created products and then used marketing to find customers. Now, you can communicate with your customers and create products and services that are specifically tailored to their needs. Pretty cool, huh? Godin has tons of examples in his book, and I’m sure you could think about many more.
Another way to take advantage of the changing relationship between companies and consumers is to begin taking part in permission marketing. Godin talks alot about this, and it’s easy to see why. With mass media becoming less and less effective (and therefore more and more expensive), permission marketing is the way to go to reach customers. Here’s how it works, instead of spamming tons of people with a message that may or may not pertain to them, you should find (and eventually build your own) communities built around the types of people that your product appeals to. Talk to them, respect them, don’t waste their time. Godin outlines some basic rules for permission marketing. Here’s the short version…
- Serve your customers, not yourself.
- Permission is not to be bought and/or sold.
- Keep your message relevant. If it has nothing to do with the customer and their life, they will leave.
- Legal print and privacy policies are meaningless. If you do wrong by your customers (even if you are legally correct) they will leave.
- Respect your customers.
- Strike first, strike hard, no mercy sir! (okay, I just made that one up)
Next we will discuss trend 2, “Amplification of the voice of the consumer and independent authorities.” See you then.
Notable quotes from this section:
- “The fact cannot be denied: Your people (customers, employees, prospects, readers, whatever) want to be heard. They demand it.”
- “An inbound e-mail is not (just) an expense; it’s (also) an opportunity - a chance for your organization to eliminate barriers and have a dialogue with a prospect or a customer.”
- “The job of marketing is to grow the organization, and growth comes, obviously, from putting yourself in front of people who didn’t know about you before you got there.”
- “Outbound marketing now demands respect for the people on the receiving end.”