Seth's Blog

The why imperative

2009-11-10T05:42:00-05:00

Successful organizations spend a lot of time saying, "that's not what we do."

It's a requirement, because if you do everything, in every way, you're sunk. You got to where you are by standing for something, by approaching markets and situations in a certain way. Sure, Nike could make money in the short run by licensing their name to a line of wines and spirits, but that's not what they do.

"That's not what we do," is the backbone of strategy, it determines who you are and where you're going.

Except in times of change. Except when opportunities come along. Except when people in the organization forget to ask, "why?"

If the only reason you don't do something is because you never did, that's not a good reason. If the environment has changed dramatically and you are feeling pain because of it, this is a great reason to question yourself, to ask why.

The why factor is really clear online. Simon and Schuster or the Encyclopedia Britannica could have become Google (organizing the world's information) but they didn't build a search engine because that's not what they do. Struggling newspapers could have become thriving networks of long tail content, but they chose not to, because that's not what they do.

Why?

That's the key question, one that organizations large and small need to ask a lot more often now that the economy is officially playing by new rules.

Upside vs. downside

2009-11-09T05:22:00-05:00

How much of time, staffing and money does your organization spend on creating incredible experiences (vs. avoiding bad outcomes)?

At the hospital, it's probably 5% on the upside (the doctor who puts in the stitches, say) and 95% on the downside (all the avoidance of infection or lawsuits, records to keep, forms to sign). Most of the people you interact with in a hospital aren't there to help you get what you came for (to get better) they're there to help you avoid getting worse. At an avant garde art show, on the other hand, perhaps 95% of the effort goes into creating and presenting shocking ideas, with just 5% devoted to keeping the place warm or avoiding falls and spills as you walk in.

Which is probably as it should be.

But what about you and your organization? As you get bigger and older, are you busy ensuring that a bad thing won't happen that might upset your day, or are you aggressively investing in having a remarkable thing happen that will delight or move a customer?

A new restaurant might rely on fresh vegetables and whatever they can get at the market. The bigger, more established fast-food chain starts shipping in processed canned food. One is less reliable with bigger upside, the other—more dependable with less downside.

Here's a rule that's so inevitable that it's almost a law: As an organization grows and succeeds, it sows the seeds of its own demise by getting boring. With more to lose and more people to lose it, meetings and policies become more about avoiding risk than providing joy.

Fabulous

2009-11-08T05:37:00-05:00

This is so cool: because we only look at things we want to look at, only talk about things worth talking about, the amount of fabulous in the world continues to rise exponentially.

Even though we're at the tail end of the great recession, think about all the cool stuff in your life. Not just stuff you can buy, but experiences, works of art, innovations of all kinds... the bar has been raised for what you need to do to be noticed, and the market is responding.

Not only do I notice more fabulous, but it sure seems as though the creators of it are more engaged, dedicated and yes, joyful, than I can remember. If there was ever a moment to follow your passion and do work that matters, this is it. You can't say, "but I need to make a fortune instead," because that's not happening right now. So you might as well join the people who can say, "I love doing this."

Take what you can get (?)

2009-11-07T06:34:00-05:00

When you're just starting out or when your organization is struggling or when the economy isn't hot, it's very tempting to take what you can get.

You just graduated from law school and you have a lot of debt and the best job you can get is doing collections work. Should you take it?

Your consulting firm is organized around providing high-value work for large corporations, but the only gigs you can get in the consideration set for are small, struggling companies looking to spend a few hundred dollars a day. Should you take them?

The list goes on and on.

There are two things worth remembering here:

Like bending a sapling a hundred years before the tree is fully grown and mature, the gigs you take early will almost certainly impact the way your career looks later on. If you want to build a law practice in the music industry, you'll need to take on musicians as clients, even if the early ones can't pay enough. If you want to do work for Fortune 500 companies, you'll need to do work for Fortune 500 companies, sooner better than later.
The definition of "can get" is essential. Maybe it seems like this gig or that gig is the best you can get because that's all you're exposing yourself to. Almost always, the best gig I could get is shorthand for the easiest gig I could get.

Surviving is succeeding, no doubt about it. Doing the work is better than not doing the work. Waiting for perfect is never as smart as making progress. But, and it's a huge but, you define yourself by the work you do, and perhaps you need to redefine what you're willing to take and where you're looking for it.

Everyone is clueless

2009-11-06T05:29:00-05:00

The problem with "everyone" is that in order to reach everyone or teach everyone or sell to everyone, you need to so water down what you've got you end up with almost nothing.

Everyone doesn't go to the chiropractor, everyone doesn't give to charity, everyone has never been to Starbucks. Everyone, in fact, lives a decade behind the times and needs hundreds of impressions and lots of direct experience before they realize something is going on.

You don't want everyone. You want the right someone.

Someone who cares about what you do. Someone who will make a contribution that matters. Someone who will spread the word.

As soon as you start focusing on finding the right someone, things get better, fast. That's because you can ignore everyone and settle in and focus on the people you actually want.

Here's a video that David sent over. I am thrilled at how much this guy loves his job, and I'm inspired by his story of how he turned down Pepsi as a vendor. He turned them down. But everyone wants Pepsi! Exactly. Once he decided he wanted someone, not everyone, his life got a lot better.

The unclicking 84%

2009-11-05T05:36:00-05:00

Mark points us to this great set of stats.

Basically, all of the clicks for all the ads online come from only 16% of the surfers, and most of them come from just 4% of all internet users.

So, if you optimize your ads for clicks, it means you're ignoring a huge population.

If your business is built around the kind of person who clicks, you win. If it isn't, you either need to not buy ads online or buy ads optimized for attention and familiarity, not clicks.

Imagine that only left-handed people clicked on ads (it's about the same percent). What are you going to do if you make a product for the right-handed portion of the population?

It's okay to make an ad that isn't easy to measure. If it works, that's enough.

When data and decisions collide

2009-11-04T05:54:00-05:00

Until recently, most of the decisions we were called on to make were based on hunches, insight and a little bit of data. Occasionally, a field like direct marketing would develop into something quite data-driven ("I don't care if you like mailer one, Smythe, mailer #2 did three times, better! Number 2 it is.") but not often.

It took Ignaz Semmelweis more than twenty years (he died before it happened, actually) to persuade doctors that washing their hands could save the lives of mothers giving birth. He had the data, he had the proof, but that wasn't enough to change minds.

Data mining and the proximity of the internet to most of what we do is changing the proximity of proof to decision. Now, you don't need to do a lot of research, the data is just a click away.

What are you going to do when your hunches don't match the data that's now pouring in?

The data shows, for example, that texting while driving is more dangerous than driving drunk. It doesn't feel that way, of course, but will you respect the data and stop, cold turkey?

The data shows that the vast majority of wine drinkers can't tell the difference between a $20 bottle and a $100 bottle. Will that keep you from buying the fancy wine? How much is the placebo effect worth?

The data shows that famous colleges underperform many cheaper, friendlier, smaller colleges. How much is your neighbor's envy worth?

These are just a few of the millions of examples of counter-intuitive data-driven findings. It took Galileo decades to persuade people the light objects fell as fast as heavy ones... even though he was busy dropping them off buildings for all to see. I wonder how long it will take us to get our arms around this avalanche of insight. Probably longer than most of us think, and marketers that jump too quickly to data are going to be disappointed (while lifehackers that use the data are going to continue to have a huge advantage).

Limited edition boxed set available today SOLD OUT!

2009-11-03T10:41:00-05:00

[We ended up selling more than three a minute. You guys are so cool. We had a few counter problems, but it didn't effect the number we sold...they're all gone, 800 in total, and I won't be able to sell any more. Thank you for the energy and support!]

It seems as though the Apple tablet is unlikely to be ready in time for the holidays... what to get?

How about a boxed (a wooden box) set of five of my books? Very limited (only 800 will be sold, ever). Sold at a discount from retail, with cool packaging, assembled by elves, delivered by Martians, blessed by enlightened goats.

My goal was to make a rare item, even if it doesn’t make any money. More and more, I’m thinking of books as artifacts and souvenirs, as convenient and collectible packages for ideas that spread. I’m hoping that for a few hundred people, this boxed set will be an example of that.

The set includes Tribes, The Dip and Meatball Sundae. Also included is the fancy new Purple Cow (new because it includes twenty more pages of user-suggested purple cows) and the extra-fancy new All Marketers are Liars (new because it has a new cover--a better cover, actually, more on that later--and a new foreword).

If you want to buy any of the books individually (no box), use the links you can find here. If you’ve read some or all of these before, even better! What would make a happier gift for the clueless marketer in your life? The details are here, so be sure to read the fine print.

I’m sorry if they sell out before you get there, but first come first served seemed like a fair way to handle it. Remember, one per customer! If you pay for more than one, we'll donate extra payments to charity.

Thanks for reading and have fun! Credits: Box, sleeve, design, elf fulfillment, goats.

Ms. In-between

2009-11-03T05:50:00-05:00

The either-or world continues to decay, confronted by a shifting economy and the tools of the net.

It used to be easy to tell if someone was a journalist. Either you were or your weren't. So giving special privileges to journalists was easy. Parking permits, press badges, first amendment protections... no problem, you're a journalist. Everyone else? No way.

It used to be easy to tell if someone was an entrepreneur. Either you had a full-time job or you ran a business. So we could treat employees the same (health insurance, no moonlighting) and assume that the few that didn't have jobs were full-time freelancers or entrepreneurs.

It used to be easy to figure out who did the buying at an organization. The purchasing department did. So we knew who to call on.

Now, of course, it's all jumbled up. Everyone is a journalist, of course, but just a few do it for a living. Everyone is a freelancer, or, at the very least, always looking for the next gig. Everyone with a credit card can do the purchasing, they just expense it.

Society hates this. It means we need to make up new rules, FTC disclosures, legal principles, safety nets and more.

Marketers love this, because it means change and that means opportunity.

If the only reason you're only wearing one hat is because you've always only worn one hat, that's not a good reason.

Help your customers avoid taking responsibility

2009-11-02T05:52:00-05:00

It's interesting to see that people are much better at putting up with things that happen to them than they are at living with the consequences of a bad choice.

When you can blame someone else (or the gods of spite, chance and bad luck) it's emotionally safer than it is to acknowledge you made a lousy choice.

If the weather is freakishly bad on your vacation, you can embrace pity from your friends, and spend your angst cursing the storms.

On the other hand, if you book a trip in the middle of hurricane season, you've got no one to blame but yourself.

This is a great opportunity for marketers and others that want to engage with the public. If you can figure out how to communicate, "it's not your fault," then people will be grateful, and they'll return. It might not be right, it might not be mature and it might not be the behavior society wants to advance, but it works.

Even better, figure out how to teach your customers to enjoy taking responsibility. It's the long term solution that builds a healthy relationship between customer and vendor... you coach them on good choices and they embrace what happens after they make them.

Attention lust and Olympic craziness

2009-11-01T05:22:00-05:00

For many organizations and individuals, attention is the most precious resource. The pursuit of attention for our ads, or our city or our careers dominates all else.

How else to explain the silly math that is used to justify Olympic hoopla? Can imagine how little patience people would have for the IOC and their internal politics if they didn't have a show that so many people wanted to watch?

Almost every city that has hosted an Olympics regrets it financially. The TV networks spend billions. The advertisers pay for it. The hoopla is vast and loud.

For what?

For the attention. It's the attention that gets cities to put up with the ridiculous system for choosing host cities and gets the TV networks to ship camera crews half way around the world. It's the attention that turns the Olympic committee into vigilant trademark and copyright police. It's easy to cut countries or companies willing to bankrupt themselves for pride or attention a little slack. After all, the Olympics is a magical event.

Except it's not. The same craving for attention happens every day in every organization in search of just one more pair of eyeballs. As marketers discover that more eyeballs does not equal better, the quixotic quest for attention will start to abate.

The formula is simple but depressing: marketers have been lousy at harvesting attention because there was just so much of it. So it was more like strip mining than careful, efficient use of a natural resource. Now that attention is harder to get, people are overpaying for it and the Olympics is just one example. The alternative is to create focused, intense networks that ignore the masses. For most marketers, that's exactly what we need.

Why celebrate Halloween?

2009-10-31T05:07:00-04:00

Because everyone else does.

Why believe that people once put razor blades into apples and you should only eat wrapped candies? Because everyone else believes it (it's an urban legend).

Most of what we believe is not a result of direct experience (ever seen an electron?) but is rather part of our collection of truth because everyone (or at least the people we respect) around us seems to believe it as well.

We not only believe that some brands are better than others, we believe in social constructs, no shirt, no shoes, no service. We believe things about changing our names when we get married or what's an appropriate gift for a baby shower.

This groupthink is the soil that marketing grows in. It's frustrating for someone who is hyper-fact-based or launching a new brand to come to the conclusion that people believe what they believe, not that people are fact-centered data processing organisms.

Sure, it would be great to have an organization that enjoys the advantage of everyone believing. Getting from here, to there, though, requires stories, emotion and ideas that spread. Organizations grow when they persuade a tiny cadre to be passionate, not when they touch millions with a mediocre message.

Opt in and opt out

2009-10-30T05:21:00-04:00

Every year, tens of thousands of people die because organ donor status in the US is opt in. If you want to be an organ donor when you're dead, you need to go through steps now to opt in. The default is "no."

Press releases, sent by the billions, seem to have become opt out. If you don't want the barrage of nonsense, PR firms appear to believe that one by one you must alert each and every publicist in the world of your desire to not hear from them.

401 (k) plans tend to be opt in. If you do nothing, you get nothing.

Talking to the police after getting arrested is strictly opt out. Nothing to sign, you just talk.

Cheese on your pasta used to be opt out, but now it appears to be becoming opt in.

Bacon should never be opt out. Sorry, but that's just the way I feel.

I think there are a few general principles that could save us time and money and hassle:

If there's a public good involved from a certain behavior, the default should be opt out.
If the pressure or cost of opting out is high and it involves a civil right, then opt in is a better choice for our society. (Obviously a potential conflict to the first rule).
If a business benefits in aggregate and the consumer is penalized on average, then it's smart public policy for it to be opt in.
If your business is going to depend on this connection as an asset, opt in is the way to go. Opt out email is another word for spam.

So, I'd make organ donation opt out, public religious observance opt in, newsletters opt in and smart financial choices opt out. Anything that tricks a consumer into paying for something ought to be double opt in. And without a doubt, email (and commercial transactions of all kinds) are opt in. Smart for both sides.

No need to sneak around. Ask first.

Big ideas...

2009-10-29T06:13:00-04:00

are little ideas that no one killed too soon.

What you buy when you buy a lottery ticket

2009-10-28T05:49:00-04:00

Hint: you don't buy a future of money.

People who win the lottery are almost always unhappy in the long run, and most of them continue to buy lottery tickets.

It's not the destination, it's the journey. Same thing with first dates, blog posts, opening presents and answering a phone call from a stranger.

The thrill of possibility, the chance for recognition, the chemical high of anticipation. That's what people pay for.

Some people are better than others

2009-10-27T05:25:00-04:00

By 'better', of course I mean better customers, better prospects, better sneezers, better at spreading the word.

Here are two interesting lessons from the book industry:

Kindle readers buy two or three times as many books as book readers. Why? I don't think it's necessarily because using a Kindle leads someone to read more books. I think it's because the kind of person who buys a lot of books is the most likely person to pony up and buy a Kindle. I know that sounds obvious, but once you see it this way, you understand why book publishers should be killing themselves to appeal to this group. After all, the group voted with their dollars to show that they're better.
Walmart and other mass marketers are now offering top bestsellers for $9 or less each, about $5 less than their cost. Why? Why not offer toasters or socks as a loss leader to get people in the store? I think the answer is pretty clear: people who buy hardcover books buy other stuff too. A hardcover book is a luxury item, it's new and it's buzzable. This sort of person is exactly who you want in your store.

The challenge, then is to look for cues that people give you that they are better, and then cater to them. Every industry has people who are worth more, buzz more, care more and buy more than other people. Don't treat people the same, find the ones that matter more to you, and hug them.

Dunbar's Number isn't just a number, it's the law

2009-10-26T05:18:00-04:00

Dunbar's number is 150.

And he's not compromising, no matter how much you whine about it.

Dunbar postulated that the typical human being can only have 150 friends. One hundred fifty people in the tribe. After that, we just aren't cognitively organized to handle and track new people easily. That's why, without external forces, human tribes tend to split in two after they reach this size. It's why WL Gore limits the size of their offices to 150 (when they grow, they build a whole new building).

Facebook and Twitter and blogs fly in the face of Dunbar's number. They put hundreds or thousands of friendlies in front of us, people we would have lost touch with (why? because of Dunbar!) except that they keep digitally reappearing.

Reunions are a great example of Dunbar's number at work. You might like a dozen people you meet at that reunion, but you can't keep up, because you're full.

Some people online are trying to flout Dunbar's number, to become connected and actual friends with tens of thousands of people at once. And guess what? It doesn't scale. You might be able to stretch to 200 or 400, but no, you can't effectively engage at a tribal level with a thousand people. You get the politician's glassy-eyed gaze or the celebrity's empty stare. And then the nature of the relationship is changed.

I can tell when this happens. I'm guessing you can too.

Begrudging

2009-10-25T05:33:00-04:00

I don't know if this happens to you, but I'm noticing it more and more. Someone offers you a refund, or agrees to sell you something or even hires you to do a project, but then spend a lot of time explaining that it's a one time thing, or that it's against policy or it's not even something they like to do.

What's the point of agreeing to anything begrudgingly? Does it get your partner to do his best work? Does it increase the chances that you'll get to win next time?

If you're going to do something, do it. Go all in. Doing it half in makes no sense at all to me. It's a like a store that has so many rules and regulations about sales and exchanges that you wonder if they really want to be bothered to sell you anything at all.

The best podcast/radio show of all time

2009-10-24T08:00:00-04:00

If you drive a fair amount and have an ipod, it's essential that you visit radiolab and see what they've been up to.

You can easily (and for free) subscribe to their podcast in iTunes and listen to every one of their past shows. I'm hoarding them, saving each one for a drive that deserves it, because they don't make new ones fast enough.

The content of each show is a unique mix of science, pop culture and relevance. I guarantee that they will make you smarter. That's a lot to promise for a radio show, but I think it's true.

And the production demonstrates that even when a medium is 90 years old, it's possible to reinvent it. They make the flat and linear structure of radio old fashioned. These guys are the real deal, and I'm privileged to recommend them to you.

Trolls

2009-10-24T05:24:00-04:00

Lots of things about work are hard. Dealing with trolls is one of them. Trolls are critics who gain perverse pleasure in relentlessly tearing you and your ideas down. Here's the thing(s):

1. trolls will always be trolling
2. critics rarely create
3. they live in a tiny echo chamber, ignored by everyone except the trolled and the other trolls
4. professionals (that's you) get paid to ignore them. It's part of your job.

"Can't please everyone," isn't just an aphorism, it's the secret of being remarkable.

The joy of quitting

2009-10-23T06:02:00-04:00

The governor of New York faces an interesting choice.

He can do the natural thing, the thing with momentum, the thing he's been trained to do his entire life: run for a full term. That involves raising a lot of money, living on the road, compromising a lot to gain support and almost certainly losing, probably in the primary.

Or, he can quit. He can win the embrace of his party, of power brokers and his family by quitting now, as opposed to losing later.

It's hard to see a better illustration of the Dip. In elections, you win or you lose. He's almost certain to lose. The dip is deep and long and essentially unsurvivable. If he quits now, anoints an electable successor, acts as a power broker and walks away while he can, he gets to choose his next life. If he runs and wins, that's terrific. But if he runs and loses... not so good.

I can understand why it's hard for him to quit. It's unnatural. But that doesn't mean that he (and the rest of us) can't profit from deciding in advance when to quit (before the market decides for us).

[This video of Richard Nixon doing a sound check before his resignation captures the freedom he felt once he decided that he was truly stuck in the Dip. After the decision, going down the path is the easy part.]

Consistent, persistent generosity

2009-10-22T06:25:00-04:00

That might be exactly the strategy you need to have an impact on the market.

Consistent as in not stopping to say, "my turn." Persistent as in long-lasting, not as in annoyingly over the top. And with permission, because interacting without delivering anticipated, personal and relevant messages is a waste at best, annoying at worst.

Top this!

2009-10-21T05:39:00-04:00

Diablo Cody on the pressure to outdo herself:

So what kind of pressure did you feel, post-Juno, to write something good?
None.
I don’t believe you.
Seriously. How could I possibly? The experience that I had with Juno is something I could never replicate, ever. First of all, you never have your first baby again. Second, the whole production was really charmed from start to finish. I mean, every moment of it was special. And then it culminated in Oscar nominations...I’m so fortunate that I got to have that experience. Now I almost feel this great calm coming over me. I’d be feeling a lot more pressure if I was still striving for that goal.

Sometimes, the work is the work and the goal isn't to top what you did yesterday. Doing justice to the work is your task, not setting a world record.

Empathy

2009-10-20T05:02:00-04:00

I have no idea what it's like to be pregnant.

And for most of us, we have no idea what it's like to have $3 to spend on a day's food, or $4,000,000 to spend on a jet. We have no idea what it feels like to be lost in a big city, no idea how confusing it is to go online for the first time, no idea what it's like to own four houses.

Marketers and pundits and writers and bloggers and bosses pretend they are empathetic, but we never can be. Sure, we can try, we can be open to cues and sensitive to clues, but no, we don't really know.

Being certain about how someone else feels or what motivates them is foolish. Don't declare that you know exactly why someone made a choice or predict what someone is going to do next, and why. It's a great parlor trick, but you're probably going to be wrong. (I think the one universal exception is fear. We all know what it means to be afraid, and fear doesn't change based on income or gender. The causes change, but the fear remains the same.)

Empathy is a hugely powerful marketing tool if we use it gently, being sure to leave lots of room for error. When we say, "oh, you did that to make a quick buck or you did that because you hate that guy or you did that because you're a man..." we've closed the door to actually allowing people to write their own story and you make it difficult to learn what actually makes them tick.

True believers (and the truth)

2009-10-19T05:19:00-04:00

The internet has amplified the volume of the true believers, the defenders of any faith.

If you're into high end stereo, it's far easier to find strident voices in defense of $100,000 stereos than ever before. If you have strong views on health care (either side) it's not hard to find the orthodox and articulate believers. It's not just specialty magazines or conferences any longer. The true believers are in our faces every day.

When you lead a tribe, the volume and accessibility of the true believers is a good thing. They're easy to find and they maintain order and create a culture for the group you're leading.

The problem is that these loud voices may be loud, but they might not be right.

If you want them to write glowingly about your company's new stereo, you'll make one that's so obscure and expensive you won't sell very many. If you want them to adore your new restaurant, it might be so edgy and cutting edge that not enough people will actually come and you'll go under.

Go check out the track record of the loudest believers in your industry. They're wrong far more than they are right. In fact, when they love a new tech product or candidate, it might just be the jinx that guarantees failure.

The truth of the market is that the market you sell to isn't filled with true believers. It's filled with human beings who make compromises, who tell stories, who have competing objectives. And as a result, the truth of the market is that the products and services that win (if win means you can make a good living and make positive change) are rarely the products and services that are beloved without reservation by the true believers.