Migrating to digital marketing from traditional marketing is a question I get asked frequently. Giving a talk to the Te Atatu Business Association, I was able to showcase both business to business (B2B) and business to consumer (B2C) examples of ways to work out these things
Where to start your digital marketing
Which marketing methods will work best for your business
What communications will work best for your clients and customers
The resources on the last slide are worthwhile saving / bookmarking. They relate to directory listings and tips for local marketing.
http://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpg00Rebecca Caroehttp://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpgRebecca Caroe2018-05-16 10:23:272018-05-16 10:23:50How to Migrate to Digital Marketing
By Blair Enns, Pricing Creativity Webinar Host – May 2018, details here.
The value conversation is where value pricing theory goes to die. The difficulty in mastering this conversation is what causes most people to give up on value-based pricing completely and revert back to selling time and materials. It needn’t be so difficult, though.
There’s a hack to the value conversation that a successful former client of mine pointed out after reading the manuscript of Pricing Creativity: A Guide to Profit Beyond the Billable Hour. When he explained it to me over dinner I thought, “This is brilliant. I should put it in the book.” In the end, I didn’t include the hack because I feel strongly that mastering the value conversation is one of the most valuable skills in all of business – a skill that can transform careers and businesses. So, while encouraging you to learn that skill, I’ll now give you the shortcut. But first, some context.
Perhaps the Most Valuable Skill in Business
There are three tiers of financial success in a creative firm that I can correlate to pricing strategies. The lowest tier of true financial success is occupied by the efficient cost-based pricers – those firms that bill as many of the available hours as possible. An efficient firm might bill around $200k in adjusted gross income (AGI) per full-time equivalent employee (FTE), whereas the average cost-based firm might bill around $140k in AGI per FTE.
The next tier of success is where you find the value-based pricers – those who charge based on the value to the client and not based on their costs or inputs of time and materials. These firms escape the limits imposed by the pursuit of efficiencies, moving their AGI/FTE number north of $200k, into $250k and maybe even the $300k range.
The very highest tier of financial success, however, is reserved for those value-based pricers who master the value conversation. These firms can push into the $400k range and beyond, with no real theoretical limit. A well-facilitated value conversation not only has a profound effect on the income of the firm, it creates more value for the client and it is a thing of beauty to behold. I consider it to be one of the most valuable – perhaps the most valuable – skill in all of business.
The Value Conversation Framework
Here’s the simple four-step framework for facilitating the value conversation:
Confirm the client’s desired future state (What do you want?)
Agree on the metrics of success (How will we know we have achieved these things?)
Uncover the value that would be created by hitting these metrics (What’s this worth?)
Offer pricing guidance (I’m going to bring you a range of solutions in the $Y to $X range.)
There’s lots of nuance around the “how” of each of the four steps above, but it’s really that straightforward. You’ll notice that by the end of the value conversation you haven’t even begun to think about solutions. Your entire focus is on the client: what they want, how you’ll measure their success, how much value you might create for them, and finally, some initial ideas on what you might charge for helping to create such value. After this conversation, you retreat to think about costs and solutions, building and pricing your proposal accordingly, while following the rules set out in Pricing Creativity.
The Reality: Few Get There
So, why are there so few firms mastering what seems like a simple conversation and moving to the highest tier of financial success?
The reasons are many:
This mastery is a sales skill and not a pricing skill
It requires you to be selling from the expert practitioner position and not the vendor position
It’s tactical knowledge acquired from doing, not implicit knowledge acquired from reading or listening
It requires you to be talking to client-side executives charged with value creation and not middle managers charged with managing a project or budget
The first few conversations can be awkward, and few push through the awkwardness to get to the incredible riches on the other side
All of these reasons and more make a value conversation hack so valuable. So here it is…
Early in Pricing Creativity, I tell the story of the first time I saw a one-page proposal based on value rather than inputs. It was the principal of that firm that I found myself having dinner with while the book was in pre-production. Commenting on the manuscript he said, “You left out my hack!” What did he mean, I asked? He replied that he never mastered the value conversation. (Chapter 9: Master the Value Conversation – to me, perhaps the most important chapter in the book.)
Instead, early on in the sale – much earlier than I would advocate – he would put a one-page proposal on the table with three options. But he didn’t view this proposal as the final one. In fact, he said that the initial proposal was never the final one. It was only there to serve as a catalyst for discussion over what the client really valued. The hack, according to my client, was to put at the bottom of each option, “Choose this option if X is important to you.” X might be speed to market, customer service, low risk, knowledge transfer or anything else. He would then ask the client, “Which one of these options is the most appealing to you?” The client would point to one, and in doing so, reveal what he most valued. This would direct the conversation. “Ahhh, so educating your team as we develop the product (or programme) is something important to you?”
In this way, the early proposal led to a more targeted value conversation in which the client and the firm could talk through specific value drivers that the client had revealed by simply pointing to an option, all while framed by the context of the initial prices. The discussion would result in the firm coming back with another proposal more specifically targeted to what the client most valued.
To Hack or To Hold Firm?
As someone who values rule-breaking as much as I do rule-making, I love this hack while I simultaneously worry about sharing it with you. There is no substitute for mastering the value conversation. I’ll repeat that I believe it might be the most valuable skill in all of business, but I also know that the size of the gap between those who understand value pricing and those who truly implement it is problematically large, especially in the creative professions.
As I craft this parting advice I find myself wondering what I would do if I were in your shoes (Win Without Pitching is a productised service business – we don’t value price the way a customised service firm like yours should) and I don’t think I would deviate from proper sales process and a good value conversation. But not all value conversations are good and easy, especially in the beginning. And like all good hacks, I would keep this in my back pocket for those situations where I saw that an elegant theory was clashing with my harsh reality.
So use at your discretion. If you do try it, I’d be interested in hearing how you make out.
Pricing Creativity Webinar Registration Details
http://creativeagencysecrets.com/wp-content/uploads/2018/04/Blair-Enns-Headshot.png300400Rebecca Caroehttp://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpgRebecca Caroe2018-04-18 10:00:002018-04-20 15:01:31Hacking the Value Conversation
“So little thought goes into websites” I said this afternoon, prompting my colleague, Conrado Langer to add “You just described humanity in one sentence!”
Reviewing the social sharing icons for two clients this week we had opposing experiences.
One was getting great traction – but the sharing icons overlaid the blog text when viewed on a tablet.
Our bad – we reviewed the settings and adjusted the screen size for when the layout switched to the mobile enabled format.
The other just installed a social sharing plugin without thought to their blog layout or users. It scrolls round to two rows, and includes some which are barely used including the highlighted, VK. This is a Russian site with few privacy controls and full of undesirable content. An unlikely choice for English-speaking consumers.
A poor choice of social sharing icons
Relevant social sharing icons
Do you know your audience? Do you know which social channels they use? If the answer isn’t yes you need to go do some research.
My choice of social sharing icons for a consumer business in 2018 are:- Facebook, Twitter, Instagram, Pinterest
And if you are chasing a youth audience – consider adding Tumblr, Instagram and Snapchat (QR Code)
My choice of social sharing icons for a B2B business in 2018 are: LinkedIn, Email, Facebook, Reddit
And if you’re a creative, film, art or music business consider Vero the newly launched service.
http://creativeagencysecrets.com/wp-content/uploads/2018/04/sharing.png2581216Rebecca Caroehttp://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpgRebecca Caroe2018-04-16 10:00:052018-04-13 16:08:45Social Sharing Icons - choose the right ones for 2018
It’s that time of the year again where we remind you about the benefits of good ol’ directories! Before the internet, we relied on finding services through the big yellow brick of a book we received each year. Thanks to the world wide web, we now find them stuffed under uneven table legs or as a booster seat. Today we find what we’re looking for with a click of a button. Does your business stand out?
In 2016, Google took away the right-hand sidebar where the paid adverts were displayed. Now the paid posts soar straight to the top, making it a tough battle for smaller companies to get noticed. Directories can be a cost-effective way to help get found via search engines. Being active on directories increases the chances of your business getting noticed.
Why updating your information is vital
It is important to keep your business updated in directories. If your business has gone through a recent change and you didn’t update your information, you could lose a lot of potential customers!
Never forget to NAP, this means not sleeping on the details. Make sure your Name, Address and Phone data is accurate and up to date. Location and accessibility are two of the most important factors when it comes to customers. If your telephone number is an old one and a customer can’t get through to you, they’re unlikely to try again. Likewise, if you were to put your address as a small town in South America, a New Zealand customer wouldn’t follow up with your business!
Pro tip: Check the directories your company is listed in and confirm your details are correct. Some websites take their information from others; resulting in a cycle of incorrect information.
Updated List of Directories
This year, we bring you an even bigger list of potential directories your business may be found in. Take a look to see where your business is listed and where it isn’t.
It’s the only thing standing in between you and your next big client.
NB: Not all directories will apply to every type of business, some are more specific to particular fields. (eg. Tripadvisor will benefit restaurants and hotels over a telecommunications company.)
Create a personal profile and connect with and online attorney network.
Reviews and rankings of design agencies around the world.
Directory of beers, breweries, bars and stores around the world.
http://creativeagencysecrets.com/wp-content/uploads/2017/06/map-local-directories.jpg8531280Anagha Sridharhttp://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpgAnagha Sridhar2018-03-29 12:48:422018-03-29 16:48:41Boost Your Business with Local Directories
With many services out there for marketers, producing content and getting it to your audience has never been easier. However, not all services are trustworthy. We recently came to learn about TopBuzz, a platform that has divided opinions.
All started with an email…
A couple of weeks ago, we received an email out of the blue from TopBuzz, a content distribution platform, claiming to be ‘impressed’ by a video we did for a client. The email content was quite generic and seemed to be automated. TopBuzz said they were able to enlarge our video audience via their platform and we would be compensated for all the views we got.
A couple days ago, we received another email. This time, it was from a person claiming to be from this company, boasting about the number of active users and the number of views that all the videos get that are shared on their platform. She was very forward in her approach and encouraged us to become a ‘premium creator’.
Now, we did a little bit of research on these guys and it was scary to see what would have happened if we signed up with them.
TopBuzz key things we discovered:
According to past users of the platform, the communication from TopBuzz is poor and scarce if you ever try and contact them. If you have a problem with something, TopBuzz are unlikely to help and at best, you might receive template emails that are likely to be irrelevant.
This brings up the next problem. If you are unhappy with the platform…too bad. You can’t delete your account and your content will stay on TopBuzz’s platform forever.
However, it gets worse! TopBuzz can use any videos uploaded to their platform in whatever way they want. Say you work hard and make a viral video. If that video is on their platform, they can publish it as their own and you would get no credit. Unfortunately, most users only realised that this was their fate only after signing the contract without reading the small print in their T&Cs.
We were never interested in using this platform in the first place as the video we created for our client was content produced for a niche segment, it was an hour long and was a face to face interview. Targeting a mass audience and making revenue off views was not on the agenda, therefore, using this platform would have been unnecessary.
If you are producing viral videos, pursuing avenues through social media seems to be a safer option. For example, with Facebook, there are various pages that are dedicated to redistributing content according to different tastes.
Nevertheless, it’s important to be aware of dodgy services like this so be sure to do your research before jumping in!
Richard Poole founded the website GrownUps.co.nz and has built it up into a significant media propertyfocused on the over 50s market. What we found impressive is the ease with which the site has incorporated native advertising with traditional media as revenue streams.
He kindly agreed to be interviewed by the Creative Agency Secrets team.
What is your latest work?
I’m continuing to work with GrownUps, although the business is now owned by Cigna Insurance, having sold to them earlier in 2016. It’s been an interesting experience moving from being a small business to working with one of the world’s largest corporates, which I’m learning from. It’s been particular useful to have more governance and rigour around process and also risk. Also, being able to work with an innovative marketer and CEO from Cigna in NZ, has been very rewarding.
Since selling the business and taking away some of those stresses that do come with business ownership at times, we’re very proud to have doubled the revenue and also site traffic YOY plus grown membership 30%. It’s genuinely a real honour that each month we get to interact with over 160,000 visitors to the site and each week, speak with around half of our 120,000 members, via their weekly email newsletter. What’s really satisfying is that we have not wavered from our original vision from 2006 when we went live with GrownUps, whereby we seek to make every day better for any visitor to the site, whether by reading an interesting article out of the 8,000 that we now have, meeting an interesting fellow GrownUps members, playing a game on the site or maybe even being inspired to book that overseas trip that they deserve and have read about on the site.
What’s impressed you?
Having never worked in a corporate, it’s been great to see that very large corporates can work well with small businesses that they take under their wing – I think you each learn really. We’ve been fortunate having pragmatic leadership, clear guidelines and an understanding that we’re best to keep the essence of the small business feeling for customers/visitors. It actually can work very well.
What’s the next big thing?
There is no doubt that my mind seldom stops for a break in terms of thinking about meeting people’s needs, which is sometimes a challenge to be honest. At present I’m committed to GrownUps so we’ll just see where that goes over the next while. I’d love to see our ‘baby’ achieve everything that we’d imagined and hope to play some part in that, if that’s wanted.
However, I’m 44 and there are several things that I’m keen to achieve personally and for our family by the time I’m 50. Priorities in life definitely change and so I guess we’re always all weighing up how best to live our lives and what makes us happy.
http://creativeagencysecrets.com/wp-content/uploads/2017/11/Grown-ups-logo.png236588Rebecca Caroehttp://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpgRebecca Caroe2017-11-27 12:21:532017-11-27 12:28:30GrownUps NZ, Richard Poole interview
This November, we’ve got another breakfast seminar happening! We will be covering 3 ways to change your business thinking and actions for 2018 success.
Has your business reached a standstill even with new business strategies and tactics implemented?
Perhaps it is time to renew your thinking with us! Getting your thinking right is the key to developing the right business strategy and tactics. Digital marketing is one of the most effective tools to utilise when unlocking business growth and boosting brand awareness. To help you better understand how incorporating digital marketing and the right business strategy can unlock secrets that underpin success, we have this insightful breakfast seminar lined up for you.
http://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpg00Abigail Mokhttp://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpgAbigail Mok2017-11-10 16:16:122017-11-10 16:16:123 Ways to Change Your Business Thinking & Actions for 2018 Success
A robust, scalable business is always based on strong processes. And if you are in the business of offering a Software as a Service (SaaS) product, you will doubtless have a recurring revenue model.
Our business debit card expires tomorrow and so I’ve been in the throes of receiving alerts, notifications and emails from a range of providers asking me to update my card details so they do not lose their revenues. The experiences were very varied from the best, smoothest, least painful to the worst where I had to raise a support ticket.
Given SaaS firms risk losing revenue from non-renewals, this is a critical business process.
The “best” process just allows me to update the expiry date on the card (PayPal) without having to re-enter all the other information
The “worst” don’t send me a link into the EXACT page on my account where I can update my details after logging in. Skype was particularly irritating with a hideous UX on their mobile browser. They leave me failing to find the right billing page detail and resorting to search / help / customer tickets.
The Very Very Worst was Teamwork where they successfully hide the link in an upgrade screen which is not where I’d look to find my payment information (see below)
Hard to find link for payment information on Teamwork.com
Any customer process needs testing and constant monitoring to keep it relevant and improved. Clues which may indicate you have this problem can be found:
Check the exit pages on your website
Check the long dwell time pages (that you don’t expect)
Check the customer service enquiries
Check the Searches on your website
When did you last mystery shop your business?
http://creativeagencysecrets.com/wp-content/uploads/2017/10/Teamwork-upgrade.png11262516Rebecca Caroehttp://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpgRebecca Caroe2017-10-30 16:14:062017-10-30 16:29:08SaaS renewals that are easy for customers
Here is how I would re-write the email in order to prevent others doing what I did. [Aside: surely I’m not the most stupid customer Kiwibank has…please, humour me!]
You have a Notice Saver bank account with Kiwibank. The interest payments for this account come from our PIE Unit Trust. The money you save in your account is invested in the fund and profits are paid back to you in the form of interest.
As an investor in this fund, we are obliged to share its recent financial performance with you. You can view an electronic copy of the financial statements for the year ended 30th June 2017 on our website via this link.
[insert rest of the statutory text here].
Lots of love, Mark Wilkshire, Kiwibank
Why is this clearer?
I think this text improves the context for receiving the message. It explains an investment I didn’t know I had and how the investment performance is relevant to my personal situation (bank interest).
Personally, I wouldn’t try to push out messages about other investments in this message. Make it simply about this one thing, and how to contact us.
The full truth about what I did on Kiwibank
And, I would anticipate possible confusion among customers by enabling self-help tools on the website to be advance programmed to have answers to questions relating to this investment.
My “Kiwibot” experience below reveals more about the lack of customer orientation and more about the regulatory communication box-ticking which probably sits behind this email misunderstanding.
Kiwibank Bot does not answer questions
Why the HELL NOT?
http://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpg00Rebecca Caroehttp://creativeagencysecrets.com/wp-content/uploads/2014/04/CAS_Logo_1line_RGB.jpgRebecca Caroe2017-10-11 10:00:002017-10-11 17:21:59Kiwibank, this is how I'd re-write your email