Archive for November, 2009

Baseline

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Courtesy: igourmet.com

Since we are a day away from Thanksgiving I thought I would use a turkey to emphsize the importance of establishing baselines when measuring new media.

So…you and your family show up at your sister’s house for Thanksgiving. It’s loud. You’re glad to be there. You shake hands with everybody, kiss inlaws, and grab a beer. The talk is about Obama, football, congress, health care, the kids, and the inlaw that always has the bad jokes. And he’s got several this year.

Your sister announces that there will be no carving of the turkey this year because she has become a vegan. “Dinner is served!”

Silence.

Why the silence? Because the turkey is the baseline. It’s what we measure the dinner by. Everything is now out of whack. The gravy, potatoes, biscuits, dressing…everything.

Same with new media. If you have nothing to measure against…then everything is out of context.

Your Twitter account…do you have a baseline for the amount of followers that you should have? Are you aware of the number of followers following your competitors. Have you set a realistic goal and timetable for followers?

Your Facebook account…have you set a baseline for the number of fans you need to be relevant. Again, look to your competitors.

Same with YouTube, Flickr, your Website, etc.

Engaging with consumers is critical. But do you have a goal with regard to traffic that needs to be reached and maintained in each of your new media communication channels? Traffic first. Engagement as it grows.

Back to the turkey. Well, this never happened because my sister knows the importance of the baseline.

And Good Thanksgiving holiday to all of you.

I can almost taste that first bite of moist turkey laying next to the mash potatoes smothered in gravy.

Pass the biscuits please.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

When the Funnel Becomes the Bucket

Recently I wrote that the distribution of information had always been a funnel but it had now turned right side up.  The mouth of the funnel is wide open and consumers are publishing because it is easy and they have opinions.  The good brands are building these funnels, advertising their communication portals (Facebook,etc) , attracting consumers, collecting opinions, engaging, finding their voices and constructively inviting/channeling consumers further down into the brand storyline. During this process the brands are quietly measuring their effectiveness, learning, and becoming much better communicators as consumers elect to engage more deeply.  They are collecting excellent data on Influencers, athletes and active consumers as the information travels down the funnel.

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In recent conversations I have been painfully reminded that many me-too brands in the Outdoor Industry are not building solid funnels but building buckets with holes and no bottom.

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How? Well, these companies crow that they have a Web Site, Facebook Page, are on Twitter, YouTube, and Flickr.

And consumers are initially engaging…entering the bucket. But they are not directed or invited to go anywhere.  They  just sit in the bucket, quickly draining to the bottom…without direction.

And then an analyst from Channel Signal investigates. We find that they had good sign-up for the Facebook page, a decent  following on Twitter, and that YouTube and Flickr had good traffic, but that it fell off quickly.

Why did the traffic fall off?  Because these companies did not allocate the resources to engage. Employees were not assigned to respond to consumers, and direct them to the next point of interest. Consumer questions and comments went unanswered. They were not invited to go to Facebook or the Website, or YouTube, or a User Group. And because there was no natural momentum of engagement, no funnel, consumers were stranded and then took the easy way out….quickly out the bottom of the bucket. They were invited to the conversation and then nobody talked to them.

So they didn’t stick around. And  they took all of their knowledge about the brand with them.

A study by the Chief Marketing Council shows that 38 percent of the 480 executives in the industries surveyed say their companies have no programs in place to track or propagate positive word of mouth among customers. And only 29 percent rate highly their ability to handle and resolve customer problems or complaints

All that money to make products that attract consumers. All that money to sell into retail. All that money for advertising to attract consumers. All that money to set up conversation channels.  And then the pay-off…consumers responding online by engaging in one of the channels. And…

And silence. All that wonderful potential data about consumers and what they like and don’t like about your brand and products…out the bottom of the bucket. And all those potential Influencers, gone.

Never to be captured again.

Say goodbye to measuring ROI.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Changes. Changes. Changes.

I was in a discussion that other day with an excellent writer and we were talking about the biggest game-changer in the last few  years. I think it is technology, in general, not just the Internet.

Why? Because it has forced governments, companies, large associations, etc. to consider a new communication strategy. Technology, meaning cell phones, phone recording devices, computers, and the Net,  allow citizens to become reporters, editors, op-ed writers and educated observers of large events.

What does that mean? It means that large organizations can’t have just a push strategy where messaging and products are just pushed into the marketplace, or into the population. Technology allows the common citizen or customer to respond and publish what they like and what they don’t like. And in given certain circumstances these responses get wide circulation.

Case in point: British Prime Minister Gordon Brown called a recent widow of a British soldier killed in Afghanistan. Nice thought but he didn’t count on the technology. She recorded the conversation, and she gave him heartfelt powerful feedback about Britain’s lack of support for the soldiers in Afghanistan. He was reduced to mumbling almost inaudible responses. Well, the conversation went world-wide, landing. among other places, on CNN. Lesson here; be prepared for published feedback and have a strategy of humanity for it.

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No longer can companies or governments be big clumsy entities just spewing products and messaging. Talk back is now in the millions of conversations everyday. And these conversations are filling the distribution channels.

And sometimes these conversations are filled with human emotion and awful loss.

Companies and governments must now have a voice and have the confidence to have many be a part of that voice. And have the confidence to continue the dialogue, humanely.

That’s the biggest change, in my opinion, in the last few years.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

SwarmBuilder-7th Fastest Growing Company in Utah

Recently the MountainWest Capital Network announced the top 100 fastest growing companies in Utah. Proud to say that number 7 on the list was SwarmBuilder (aka 3point5).

I founded 3point5 about six years ago. As with every new idea, it takes awhile to get traction. People, although believing they are early adapters, really aren’t.  We got traction when we showed the outdoor companies how many retail salespeople were actively selling their stuff on a daily basis and how few where actually being trained on the brand and its products. The hook? What if we trained these people on line? We could reach a lot of them, especially if you provided product as incentive.

Well, thanks to some forward thinking companies we got traction, and then capital.

And to jump to the here and now…I am very proud of the SwarmBuilder management team. Together we built something special. Almost all of my first hires are still with the company and doing a terrific job.

So, go forth ladies and gentlemen of SwarmBuilder. Continue to prove invaluable to your customers.

And thanks for making this boy from Indiana look better than he is.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Wallenfels Goes to Timbuk2

Just got off the phone with old friend Mike Wallenfels, the President/C0-Founder of Mountain Hardwear. Because of Channel Signal I get early access to all sorts of information. Sometimes too early, but not this time.

So…I am working and a Channel Signal analyst sends me a link, I open it and read. Then I smile, and say damn, Wallenfels. I pick up the phone and call his cell.

I start things by saying, ” So, why am I looking at this information on my monitor?”  And he laughs.

Our conversation quickly gets past the “hardest decision I’ve ever made” and “pursue other interests” and we get to the heart of the matter.

# 1 Mike spends about 70% of his time traveling, and he doesn’t want to do that anymore. He really does want to spend more time with his wife and kids.

# 2 Once a CEO builds a company into almost 100 million in revenue, challenges to move that company forward change.

# 3  Columbia didn’t want Mike to leave. This is his decision.

So, now he’s going to Timbuk2, a company a little north of 20 million. Here’s some speculation on my part. A company this size must have a CEO that gets into the dirt with his employees. Product development. Pricing. Retailer visits. Market expansion. All growth issues that challenge a company of this size. It’s also a company that focuses on outdoor and bike…in the pack business. So, it seems to me that Mike is matching up with his passions.

And now to Columbia. Another old friend, Kirk Richardson, will be the Interim President for Hardwear. Tim Boyle is very lucky to have someone with Kirk’s skill set to step in and take over. He was a long time leader at Nike, then to Keen, and then to Columbia.

And Kirk is the kind of guy that will walk into the CEO role and make the transition seamlessly. And that needs to happen because Hardwear is a very well run company with solid people and product.

So, Mountain Hardwear is under good leadership.

And Timbuk2 is too. (Sorry couldn’t resist that.)

Good luck to both companies and their new leaders.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Manage the Information, Control Your Future

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Courtesy: New York Times

I’ve been talking with a lot of the brands in the outdoor space lately and I’m hearing the same theme. Something like…”new media is important. We are looking at its impact.  We have to determine how much time this will take, who will execute inside the company, and how much it will cost.”

Fair enough. All good concerns.

This brings me to the core problem. The more information we load upon ourselves the less time we have for…everything.

Herbert Simon, a political scientist, wrote in 1971, What information consumes is rather obvious: it consumes the attention of its recipients. The more information, the less attention, and the need to allocate that attention efficiently among the overabundance of information sources that might consume it.” Quoted from A Short Manifesto on the Future of Attention by the Design Observer

In my view, this problem is now pervasive. Consumers are focusing their attention to write messages to companies about products, customer service, and branding. And it is evident that companies do not have the attention span to:

1. Listen

2. Engage.

Why?

Because companies are swamped with so much information that much of  the valuable info gets ignored . The work force is in a dingy and the waves of information are ten feet tall.

Another problem:  many companies are still in the Broadcast Mode because it takes less attention. Executives are saying We are on Facebook, Twitter, and YouTube…and we have our own Blog. However, that company uses those channels to simply broadcast the message. Face it, that  company doesn’t have the “employee time” to engage with those customers.

Many brands suffer from information overload.  Reposition your company away from the endless silly emails that smack of over-communication in the form of “covering my ass” , positioning the responsibility to someone else ” I sent him an email!”, or ccing the universe “so I could solicit  feedback from the team” .  While all of this is going on, consumers are trying to communicate with the company.

Companies are more self absorbed than movie stars. Stop worrying about your brand image and look away from the mirror …and see.

To all major brands in the outdoor space: time to rebuild your marketing departments. Time to reallocate employee time for New Media. So they listen for the customer. Hear them. And then respond. Time to create content that consumers find worth responding to. Time to take money away from traditional advertising (and the push messaging) and invest it in real time feedback on your products, your service, and your brand initiatives.

Back to the future, where the motto is, “The Customer is King.”

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal