Tom Asacker

What's your external focus ratio? How does it compare?

Are you wondering how FY2009 will turn out for you, your brands, your business, or your organization?  Here's a proven diagnostic test.  First, estimate your EF (external focus) ratio:

EF = A/S + I/P, where

A = Time, attention and money invested in empathizing with and understanding ones audience

S = Time, attention and money invested in empathizing with and understanding oneself

I = Number of thoughts and conversations about ideas

P = Number of thoughts and conversations about people

Now, the greater your EF ratio - as compared to others competing for the same audience's time, attention and money - the greater your chances of success.  That's all there is to it.  Feed the numerators.  Starve the denominators. 

Note: Since you have abolutely no idea what others are doing with their numerators, you should be paranoid as hell and invest heavily in yours.  Is that what you're doing?

Customer value in a down economy: framed or real?

The Boston Red Sox recently announced that for the first time in more than a decade they will not be raising ticket prices next year.  Now that's what I call value (not).  That's called "framing," where the intention is to selectively influence the perception of value.  The reality is that the Bosox average ticket price of $48.80 in 2008 was the highest in the majors. And let's not even talk about the hot dogs.

Contrast that news with news from the Bronx Bombers.  A brand new Yankee Stadium will open in April 2009 with a strategic focus on adding value to the fan experience (my assessment).  Here are just a few of the changes as they relate to one of the ten specific value components outlined in my new book:

• Engagement Value
  
  "Hundreds of high-definition flat-screen panels will dot the new Yankee Stadium, from bathrooms to the martini bar, so fans won't miss a single pitch. Video cameras will be posted around the field, enabling fans to watch the game from multiple angles — from the dugout, the outfield or their favorite player's view." - Mercury News
  .
  
• Involvement Value
  
  "Instant replays and a variety of camera angles will soon be accessible via cellphone . . ." NY Post
  
  "Those sitting in luxury booths will be able to choose the angles they want to view." - Mercury News
  .
• Time Value
  
  "[F]ans may even be able to dial up hot dogs and beer, team officials announced yesterday." - NY Post
  
  "Fans will also  . . . get traffic tips before leaving the stadium at the end of the game."
  .
• Social Value
  
  "Future plans for the interactive network include the ability for fans to chat with each other, comment on the game and upload video, Ricci said." - NY Post
  .
• Growth Value
  
  "The team also plans to install Cisco's cutting-edge TelePresence video technology in a Bronx library for community outreach. 'Derek Jeter can help some kid in the Bronx do long division,' Ricci said." - Mercury News
  .

As someone once smartly remarked, "What you see depends on what you're looking for."  When you have a model for understanding - and delivering - customer value, it opens your mind to endless possibilities.  For example, why not allow the fans to vote via cell phone for game MVP, best play, etc.?  Why not have some retired Yankees Twitter their commentary during the game and stream it on the bottom of the screens?  Oh, you won today's game trivia contest? Great!  Shoot a photo of yourself with your cell phone and upload it to the big screen.  And on, and on, and on.

Now please don't misinterpret this post as advocating for technological advancements in the grand old game, or in any other business for that matter.  What I'm advocating for is the delivery of value vs. the communication of value as a strategic imperative for 2009 and beyond (although technologies like RFID, location-based cell phones, social networking platforms, digital video, etc. can be powerful strategic enablers and differentiators).

Sure, reframing value may get you a sale, but it is unlikely to get you the holy grail of marketing . . . word-of-mouth.  That requires "real" value.  So ask yourself (and your team), What's stopping us from adding value to our customers' experience with our . . . software startup, consulting firm, hotel, publishing company, apartment complex, bank, restaurant, supermarket, gym, library, radio station, pub, CPG company, NGO, hospital, dental practice, speakers bureau, etc.

I'd love to know some of the answers that you receive.  Really, I would.

New article - Get Unstuck!

This month's article was inspired by the Dalai Lama, and two pointed questions that were put to me over the past few weeks. One was asked by a seasoned, and very successful, executive recruiter. The other came via email from a very thoughtful marketing student at the University of North Dakota. I hope I've answered them.

"Easy times are the enemy, they put us to sleep. Adversity is our friend, it wakes us up."
- The Dalai Lama

Read "Get Unstuck!" Here's the link:

http://www.acleareye.com/thoughts/Article_Get_Unstuck.pdf

If you enjoy it, please pass it around to your colleagues and associates; especially those who feel stuck. Thanks in advance.

Also, if you're interested in receiving notification of new articles by email (along with some random statistics, news and interesting links that you won't find on this blog), you can join the legion of others by entering your email address, clicking the submit button, and then confirming your subscription from Aweber.  Thanks! And please note: You'll only receive about one email a month, and I will never disclose you email address to anyone.  Promise.

Oxymoron

According to Wikipedia, an oxymoron is "a figure of speech that combines two normally contradictory terms. Oxymoron is a loanword from Greek oxy ('sharp' or 'pointed') and moros ('dull'). Thus the word oxymoron is itself an oxymoron.

Hmm . . .

Marketing ('sharp, sexy, fun')

Pragmatism ('dull, boring, hard')

My guess is that you know where I'm going with this.

What is brand value?

A recent survey by the market research firm YouGovPolimetrix revealed that the slumping economy has a lot to do with how people perceive brand value. For example, in the hotel category, Best Western and Comfort Inn ranked as best; Motel 6 ranked as worst. YouGovPolimetrix defines brand value as "getting good value for what you pay."  That seems a bit imperceptive to me.  What about people's investment of time, attention, and, especially, identity? Would you hold a client conference at a Best Western? I didn't think so. (By the way, if names truly influence brand success, YouGovPolimetrix should be really worried.)

Are customers really responding to the recession by redefining value? I'm not so sure. They are certainly not using a rational, price and functionality-based calculus to choose between products and services. Think about this: According to the Coupon Council the typical family saves less than $10 per week using coupons.  Contrast that with the amount of money that the average family spends on renting videos and buying lottery tickets each week.

So what are people doing in today's marketplace? They're doing what they've always done: they're trying to optimize their desire for "happy now" - novelty, sensory stimulation, engagement, and social experiences - with their desire for "happy life" - physical and financial well-being, growth in mind, spirit and relationships, and giving back and making a difference.  The recession hasn't caused them to modify this rapid, and primarily subconscious, marketplace calculus.  It has simply made them more discerning.

What's that mean for marketers?  It means that if your brand commands a price premium, you had better understand the nuanced way that your audience defines and intuits value. And then make sure that your brand - including your facilities, people, web site, et al. - deliver a bundle of value components that provide "good value" for your customers'  investment of time, money, attention and identity. It is not as simple as it may appear, as evidenced by the recent news about GM, Mrs. Fields, and Circuit City. And in my humble opinion, many, many more to come.

You can vote however you like

Do it for the children.

West coast bound

I'm off to San Diego for a few days to share my radical views of "branding as value creation" in a keynote speech.  If you're in the area, have some free time on Tuesday evening, and would like to connect and chat, please let me know.

In the mean time, here's a brief interview I did with Chris Wilson of Fresh Peel about my new book, A Little Less Conversation: Connecting with Customers in a Noisy World.  Chris is a really smart guy and a contributing author to an important new book titled The Age of Conversation 2.  Take a look at that title again: The Age of Conversation 2.  I don't think Chris likes the title of my new book very much. :)  But he was still kind enough to read my book and interview me.  Thank you Chris.

P.S. Have a great week!  And please . . . don't forget to vote.