The Better Service Blog

Sales, Marketing and Practice Management ideas for financial planners!

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15% changes everything

July 25th, 2010 · Uncategorized

When a newspaper loses 15% of its readers or 15% of its advertisers, it goes out of business. There are still people who want to read it, still people who want to advertise, but it's gone.

When a technology company increases its sales by 15%, profits will double. The sales line doesn't have to increase that much for profits to soar.

It's so tempting to head for green fields with a new thing, a new market, a new business. But in fact, 15% right here and right now might be exactly what you need.

Post written by Seth Godin and sourced from http://sethgodin.typepad.com/seths_blog/

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Running away vs. running toward

July 24th, 2010 · Uncategorized

Every brand, every organization and every individual is either running away from something or running toward something (or working hard to stand still).

Are you chasing or being chased? Are you leading or following? Are you fleeing or climbing?

Post written by Seth Godin and sourced from http://sethgodin.typepad.com/seths_blog/

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But who will speak for the trees?

July 23rd, 2010 · Uncategorized

Defenders of the status quo at newspapers, book publishers and the magazine industry are in a panic. Some are even misguidedly asking for government regulation or a bailout.

All three industries are doomed (if doomed means that they will be unrecognizable in ten--probably three--years). And yet...

And yet there's no shortage of writing, or things to read. No shortage of news, either. And there doesn't appear to be one on the horizon. In fact, there's more news, more images and more writing available to more people more often than ever before in history.

No, just about all of the whining is about protecting paper, the stuff the ideas are printed on, not the ideas themselves.

It's paper that makes the economics of the newspaper industry work (or not work). It's paper that creates cost and slows things down and generates scarcity. And scarcity is what they sell.

It's paper that makes the book industry what it is. As soon as you remove paper from the equation, the costs change, the timing changes, the barriers to entry change, the risk changes. And defenders of the status quo don't like change.

Is there not enough paper in your life? Why are we wringing our hands about the demise of paper as the economic gating factor for ideas? In fact, some of the trees I know are delighted that we've found a better, faster, cheaper way to spread ideas.

If the demise of paper means that good people doing good work in important industries will have to find faster and better ways to do their jobs, I don't think that's a bad thing.

Post written by Seth Godin and sourced from http://sethgodin.typepad.com/seths_blog/

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The art of seduction

July 22nd, 2010 · Uncategorized

Carole Mallory was Norman Mailer's mistress. Seducing him probably wasn't that difficult, though, as he was already on his sixth wife at the time.

Marketers seek to seduce. So do painters, authors and job seekers. The most important thing to understand about seduction is this: it only works when the other person cooperates, contributes and is at some level interested in being seduced.

In short: it's a lot easier to seduce someone who's worldview and attitude makes them open to it. If you want to be successful at whatever form of seduction you have in mind, seek out the right people.

Some people were seduced by the iPad. Many ignored it. It wasn't that the iPad changed from person to person, what changed was the audience's worldview and openness.

And yet...

And yet as marketers we seem to want to treat everyone the same, want to please everyone, want to come up with the magic words that open every heart.

Post written by Seth Godin and sourced from http://sethgodin.typepad.com/seths_blog/

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Getting to scale: direct marketing vs. mass market thinking

July 21st, 2010 · Uncategorized

A mass marketer needs to reach the masses, and to do it in many ways, simultaneously. The mass marketer needs retail outlets and fliers and a website and public relations and tv ads and more more more and then... bam... critical mass is reached and success occurs.

Best Buy is a mass marketer, but so are Microsoft and the Red Cross. Ubiquity, once achieved, brings them revenue, which advances the cycle and they reach scale.

The direct marketer, on the other hand, must get it right in the small. That pitch letter can be tested on 100 houses and if it gets a 2% response rate, then it can be mailed to 100,000 houses with confidence. That business-to-business sales pitch can be honed on one or two or three prospects, and then when it works, can be taught to dozens or hundreds of other salespeople.

The key distinction is when you know it's going to work. The mass marketer doesn't know until the end. The direct marketer knows in the beginning.

The mass marketer is betting on thousands of tiny cues, little clues, and unrecorded (but vital) conversations. The direct marketer is measuring conversion rates from the first day.

That's the reason we often default to acting like mass marketers. We're putting off the day of reckoning, betting on the miracle around the corner, spending our time and energy on the early steps without the downside of admitting failure to the boss.

Of course, just because it's our default doesn't mean it's right. Business to business marketing is almost always better if you treat it like direct marketing. Most websites that do conversion as well. Same with non-profit fundraising. As well as marketing goods and services to the bottom of the pyramid, people who live in villages where mass media and mass distribution are difficult and have little impact.

Get it right for ten people before you rush around scaling up to a thousand. It's far less romantic than spending money at the start, but it's the reliable, proven way to get to scale if you care enough to do the work.

Post written by Seth Godin and sourced from http://sethgodin.typepad.com/seths_blog/

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