More or deeper?

More is:

  • The hunt
  • Acquisition costs
  • Onsite blog traffic
  • Splashy PR
  • Small bets
  • Millions of followers
  • Friends and admirers

Deeper is:

  • Relationships
  • Low churn
  • RSS subscribers
  • Specialized media
  • Big bets
  • 1,000 true fans
  • Allies

Neither is better or worse, but  (there’s always a “but”)…  BUT one of these has to be your dominant strategy if in fact you have a strategy.

(And if your answer is “both” then it’s time to reread Kevin Kelly’s original post about 1,000 true fans, starting with,”To raise your sales out of the flatline of the long tail you need to connect with your True Fans directly.  Another way to state this is, you need to convert a thousand Lesser Fans into a thousand True Fans.”  I can think of few things more dissimilar than the actions you’d take to “run out and find new converts” versus “convert a thousand Lesser Fans into a thousand True Fans.”)

So which one is it for you?  And why?

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Easy, hard

You certainly know who your top customers are from YOUR perspective – the ones who account for most of your revenues and most of your profits.

But do you know how many of them consider YOU to be their most important relationship?  How many of them love you best of all?

The first question is easy to answer, the second one is much more important.

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I hate newsletters…

…and form letters, and customer service notes that sound like customer service notes and most anything that was obviously written by lawyers trying to sound like lawyers whenever it’s not 100% necessary.

Like this note I got the other day from eBay’s customer service department, which includes gems like:

“Thank you for taking the time to write back to eBay regarding your concern…”

“I would request you to check your Account Status Page where you can easily get the detailed report of the fees charged on your account…”

“If you need further assistance, please don’t hesitate to reply to this email and let us know…”

(Yeah, I can tell they’re dying to hear from me.)

Compare that to this note from Moo cards:

“I’m Little MOO – the bit of software that will be managing your order with us.  It will shortly be sent to Big MOO, our print machine who will print it for you in the next few days.  I’ll let you know when it’s done and on its way to you…”

“Remember, I’m just a bit of software.  So, if you have any questions regarding your order please first read our Frequently Asked Questions at: http://www.moo.com/help/ and if you’re still not sure, contact customer service (who are real people) at https://secure.moo.com/service/

One of these companies is communicating that they care about every interaction and that personal connections matter to them.   In one of these companies, the naysayers lost, the people saying “Yes, but…” failed to choke the life out of things, and doing something memorable was more important than avoiding looking silly.

No one ever loses their job because they took something great and made it unremarkable.  And that’s a real shame.

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Breaking point

When do you push so hard that customers get to the breaking point?  And do you think you hear much from them until the moment when they’ve had it with you?

Here’s what you have to do in order NOT to run up a $4,000 cellphone bill when traveling internationally with your iPhone.

  1. Figure out your monthly data usage (either by logging on to the AT&T website, assuming you know how to do that, or knowing to ask the customer service rep this, after 5 minutes of navigating the voice response system).  Mine is nearly 300MB on an iPhone 3GS
  2. Pre-buy a certain amount of “international data” (sold in 20MB, 50MB, 100MB, and 200MB increments)
  3. Pray that this sticks (it didn’t for me, so I had to do this twice, once from the US and once from abroad…what would I do without Skype?)
  4. Go on your international trip and use your phone.  (Note: phone calls still cost at least $1/minute)
  5. Come home and tell them you’re through with the data service
  6. (oh, and there’s a catch here — if you discontinue after two weeks they only credit you with half of the data you purchased, so if you bought 100MB, used 75MB, disable the international plan after two weeks, you’ll be charged $4/MB for the 25MB “over” you went)

Why share all this detail?  Just to illustrate the 2+ hours I had to invest to figure this out (and hope that I’m saving others this wasted time).  Do you think AT&T is trying to make me happy or make as much money off of me as they can?  And aren’t iPhone users their best customers?

Imagine if they put as much effort into making their best customers happy as they do into creating a system that naturally results in “gotcha” $4,000 cellphone bills which date back to 2007

You know when you’re treating your customers right and when you’re milking them for all they’re worth.  Which strategy do you think is going to work in the long term?

(Oh, and this is the same thinking that got us into the subprime mortgage mess.)

Cheaters

Last year, 71 out of the 42,000 entrants in the New York City Marathon cheated in some way.  None did so as spectacularly as Rosie Ruiz, who rode the subway in the 1979 NYC marathon and was exposed as a cheat in Boston later that year (though Dane Patterson, the Biggest Loser Contestant who recently shaved three miles off the course with her NBC crew in tow comes close).  But every year, a number of folks cut corners in one way or another and in so doing undermine the integrity of the race.

Cheats and spammers and people who try to beat or abuse the system will always be out there, and you have to guard against them.  But what do you do in situations, like with the marathon, where nearly everybody does what they’re supposed to do and you have .2% of the people breaking the rules? How do you decide how much you need to protect, and how do you do it in a way that doesn’t kill the very thing you’re trying to create?

Airlines and airports mess this one up all the time.  For example, today I was told by a stewardess on a Finnair flight that my laptop has to go in the overhead bin for takeoff – not in my seat pouch or in my bag under the seat in front of me.  More amusing still, not long ago I went through airport security in Newark with an unopened, 6oz Stonyfield liquid yogurt in my bag.  When it was unearthed, I was told by the security agent that I could either walk back to the other side of security to drink the yogurt OR I had to throw it out.  No drinking the yogurt on this side of the X-Ray machine allowed.

Neither of these rules (overhead bin for laptops; on which side of security you can drink your more than 3oz of liquids) was written anywhere, but norms and habits develop among enforcers, and absent any feedback loop from the 99.8% of people who are playing by the rules, enforcement will tend to creep forward until the customer experience comes under serious fire.  If you have any doubts about this, try to get through security in just about any office building in New York City.

Knowing this, you have to be very honest with yourself about how big a deal it is when people break the rules.  At the NYC Marathon, it’s easy to monitor individuals without bringing down the system.  When you create a community (online, volunteer, etc.) and hand the reins of control over to that community, it’s not as easy to decide.  How closely do you want the members of the community to hew to your message, your values, your brand, the topics you’d like to see discussed?  If you take too much control you risk killing the enthusiasm, energy and sense of ownership on the part of participants.

When organizations made all the decisions, they could pretend that this was a marginal question.  More and more it’s going to be coming front and center, and we’ll all have to figure out where to draw the line.

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Not flier-worthy

I was walking down the street today and passed a guy handing out fliers.  He handed them to the guy in front of me, looked me up and down (blazer, slacks and all) and didn’t give me a flier.

Good for him.

The flier probably doesn’t cost more than two cents.  So he’s not saving money.  But he’s decided who his customer is – who he wants to attend the opening or who he wants to buy whatever he’s selling – and he’s decided it isn’t me.

I don’t know if his criteria are right, but at least he knows that some people are in and some are out.

Are you making these kinds of choices, or do you just hand the flier to everyone out of desperation?

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We’re right over here

This afternoon, I found myself standing on line, waiting to spend $4 on an overpriced loaf of sourdough.  As the line grew behind me, from two to four to eleven people at 5:45pm, the bakery’s five employees milled about at the other end of the store.  Two were troubleshooting something at the cash register, one was working on a display, and two talking quietly while they worked.

What a great metaphor.  All the employees are getting the cash register and the display and the plans for the next batch of bread just right – all the internal stuff that feels so important. Yet all the while their customers are lining up, wanting to talk to them if only they’ll walk over to the other end of the store to meet them.

Go on, go talk to your customers.  They’re right over there, and they’re what matters most.

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What are your customers (donors) really buying?

What are your customers buying?  Seems obvious.  People pay for the product.  Or maybe they pay for the story and the product, or just the story.

All true, but can you be more specific?

I find myself on the Amtrak to Boston and keep asking myself why I chose this antiquated, a little bit slow, a little bit overpriced form of transportation.

On a Saturday I could reliably drive from my house to Boston more quickly (by about an hour) and more inexpensively.  What I’m really paying for is the right to make a trade: I’m trading a car ride (three-and-a-half hours of driving alone, eyes on the road, fighting sleep) for 4+ hours of sitting comfortably, catching up on reading or work or just relaxing.  And I’m willing to pay the cost of the train ride to make that trade.

If I’m like most customers (I may not be), then Amtrak, within reason, isn’t selling me the ride to Boston.  That part of the product is clearly worse (slower, more expensive) than my other options.  I’m buying the time, the relaxation.  So Amtrak should be promoting the heck out of the fact that they have power outlets on this train (so I can plug in my laptop), and they should figure out how to get the Internet delivered too.  Because Bolt Bus has both of those, and even if it takes a little longer than the train (when there’s traffic), it costs a lot less, has more frequent service, and it’s delivering what people are actually interested in buying.  (I would have taken it but it was sold out for my return trip…go figure).

Drill a little deeper on what you’re selling and you’ll learn what people are really buying.  This in turn will tell you where to invest and where not to bother.

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