Every industry and profession goes through changes, and the sales profession is no different. Just because a certain sales technique or mindset worked in the past doesn’t mean it’ll work today. To be a top performing salesperson, today and in the future, you need to continually adapt to both market and social conditions.
With that in mind, there are several new business trends taking place—all of which affect salespeople in every industry. Understand what the trends are and how to maximize them so you can reap the rewards of a successful sales career.
#1 YOUR PAST SUCCESS WILL INCREASINGLY HOLD YOU BACK.
People who are in sales long-term tend to be successful. Realize, though, that success is your worst enemy. When you’re at the top and doing well, you’re really just trying to keep up and meet demand. Having so many sales knocking at your door lulls you into a false sense of security. As such, you’re not looking at enough future opportunities because you’re too busy reaping the rewards of the current opportunities.
You’re not sowing the seeds of future success, and that’s setting you up for a fall. An old saying goes: “If it isn’t broke don’t fix it.” In today’s world we need to rework that statement to be: “If it works it’s obsolete.” For example, if you just bought the latest laptop, is the next newer and better version already in existence and about to be released to the public? You bet! Remember that rapid obsolescence isn’t just about products; it’s about how we do our business too.
#2 TECHNOLOGY-DRIVEN CHANGE WILL DRAMATICALLY ACCELERATE.
It’s human nature to protect and defend the status quo. However, you have to understand that technology is changing the future, your customers’ behavior, and your company’s reality. That means if you don’t change, you’ll be soon out of a job. As a salesperson, you need to embrace change and make it your best friend rather than fight it and hold tight to the way things were. So how do you make rapid change your best friend? You spend some time thinking about where the changes that are impacting you and your customers are going. Remember that change causes uncertainty in customers’ minds. You can bring certainty to your customers when you are confident in where change is going. You can lead your customers through the change, causing them to view you as more than just a salesperson, but as a solutions provider and trusted advisor.
TO BE CONTINUED…MORE SALES IN YOUR FUTURE
Successful salespeople know that in order to stay on top, they need to keep abreast of trends and changes in their industry. Only then can they stand out and be a true solutions provider for their prospects and customers. Next month, I will share additional trends to help you understand and adapt to today’s changing sales industry.
Friday, December 21, 2007
Sunday, November 18, 2007
THE FUTURE OF REAL ESTATE & MORTGAGE LENDING
In the past month, I have given speeches to some of the nations top Real Estate agents, and a few days later, to executives from the largest Mortgage companies. As you might guess, none of them were very happy. This isn’t hard to understand when you consider that in Nevada, one in eight homes are in foreclosure, and soon mortgage lenders will own 25% of all the homes in the entire United States. Every day the news gets worse with no end in sight. In both audiences, the mind set was a mirror image of their entire industry - crisis.
I asked both groups; “Is the dramatic downturn in the housing market and the accelerating rate of foreclosures a permanent change or a cyclical change?” I could see on their faces a sigh of relief when they all agreed that what they were experiencing was a cyclical change.
What I did with a single question was help them to see light at the end of the tunnel - there will definitely be an end to the current situation.
Next I asked; “Will people continue to both want and need to buy and/or sell homes?” Once again they said yes! Will they need an agent and a mortgage? Yes! At this point, in both cases, you could feel the energy shifting in the room.
I asked the agents if there were opportunities in helping lenders liquidate foreclosures. This question seemed to open their minds to look for hidden opportunities they could act on today. And, when you have a room full of top sales professionals who have a mindset of opportunity instead of crisis, positive ideas begin to flow.
I asked the mortgage lenders if they wanted to own 25% of the homes in the entire United Sates due to foreclosures on their loans? No, they all responded.
Will the value of homes go back up again if we look beyond two to five years? Yes they agreed.
To stimulate their thinking further, I suggested that they provide an option to refinance mortgages by extending them to forty or even fifty years giving the homeowner the ability to keep making payments – a lower payment they can afford – and more time for their house to regain its value. Lenders could even add a mandatory life insurance and/or unemployment insurance policy. Continuing to collect billions of dollars in mortgage payments might be better than experiencing billions of dollars in losses.
As with the real estate agents, the room started buzzing with positive energy. The suggestions stimulated their thinking and their crisis mentality started shifting to identifying new opportunities.
Are daily bad news headlines keeping you from seeing the unlimited possibilities that are right in front of you? Ask yourself if the challenges you are experiencing are cyclical or permanent. Look for opportunities. The more you look, the more you will find.
I asked both groups; “Is the dramatic downturn in the housing market and the accelerating rate of foreclosures a permanent change or a cyclical change?” I could see on their faces a sigh of relief when they all agreed that what they were experiencing was a cyclical change.
What I did with a single question was help them to see light at the end of the tunnel - there will definitely be an end to the current situation.
Next I asked; “Will people continue to both want and need to buy and/or sell homes?” Once again they said yes! Will they need an agent and a mortgage? Yes! At this point, in both cases, you could feel the energy shifting in the room.
I asked the agents if there were opportunities in helping lenders liquidate foreclosures. This question seemed to open their minds to look for hidden opportunities they could act on today. And, when you have a room full of top sales professionals who have a mindset of opportunity instead of crisis, positive ideas begin to flow.
I asked the mortgage lenders if they wanted to own 25% of the homes in the entire United Sates due to foreclosures on their loans? No, they all responded.
Will the value of homes go back up again if we look beyond two to five years? Yes they agreed.
To stimulate their thinking further, I suggested that they provide an option to refinance mortgages by extending them to forty or even fifty years giving the homeowner the ability to keep making payments – a lower payment they can afford – and more time for their house to regain its value. Lenders could even add a mandatory life insurance and/or unemployment insurance policy. Continuing to collect billions of dollars in mortgage payments might be better than experiencing billions of dollars in losses.
As with the real estate agents, the room started buzzing with positive energy. The suggestions stimulated their thinking and their crisis mentality started shifting to identifying new opportunities.
Are daily bad news headlines keeping you from seeing the unlimited possibilities that are right in front of you? Ask yourself if the challenges you are experiencing are cyclical or permanent. Look for opportunities. The more you look, the more you will find.
Wednesday, October 31, 2007
TAKING SALES TO THE NEXT LEVEL, PART II
Last month, I covered the Golden Rule of Sales—give people the ability to do what they currently can’t do but would really want to do if they only knew they could have done it. This month, I would like to cover some additional areas to help take your sales to the next level.
REDEFINE THE VALUE YOU DELIVER
Always remember that you’re not simply selling a “thing”; you’re selling the competitive advantage of the product. In other words, part of your job is to help your customers use the product you sell to gain competitive advantage. No wonder margins are slim. Most companies simply sell the product, deliver it, and then leave. It’s then up to the customer to figure out specific guidelines for maximizing the use of the product organizationally. Is it any wonder why so many customers underutilize their purchases?
Obviously you can’t share secrets or proprietary information you learn about any of your other customers, but you can go beyond the guidelines and actually help customers figure out how to get a competitive advantage by using your product. By offering that kind of knowledge, you could possibly even charge more for your product because now you’re giving business value that far exceeds the value of the individual product.
REDEFINE PERCEPTION OF THE SALESPERSON
You need to shift from being a vendor to being a trusted advisor. A vendor simply supplies a product. A trusted advisor supplies true advantage. For example, a trusted advisor will recommend what is best for the customer, not best for the salesperson. When you seek that higher ground and become a trusted advisor, your clients trust you more.
Remember that the future is all about relationships. Relationships are all about trust, and you gain trust by earning it. So never teach people to distrust you by stretching the truth or hiding some pertinent information. To differentiate, you need to raise the bar on trust.
REDEFINE YOUR LEVEL OF SALES SUCCESS
When you focus on redefining what you already have you can take your current offering and leverage it to new levels. That’s when you become a sales leader, not because of some fast-talking sales pitch, but because of your commitment to your customers and their true needs. So focus on these four elements of redefining today and you’ll be able to give your customers tools and solutions they never dreamed possible. As a result, both you and your company will attain new levels of success and realize the profit potential you always knew existed.
REDEFINE THE VALUE YOU DELIVER
Always remember that you’re not simply selling a “thing”; you’re selling the competitive advantage of the product. In other words, part of your job is to help your customers use the product you sell to gain competitive advantage. No wonder margins are slim. Most companies simply sell the product, deliver it, and then leave. It’s then up to the customer to figure out specific guidelines for maximizing the use of the product organizationally. Is it any wonder why so many customers underutilize their purchases?
Obviously you can’t share secrets or proprietary information you learn about any of your other customers, but you can go beyond the guidelines and actually help customers figure out how to get a competitive advantage by using your product. By offering that kind of knowledge, you could possibly even charge more for your product because now you’re giving business value that far exceeds the value of the individual product.
REDEFINE PERCEPTION OF THE SALESPERSON
You need to shift from being a vendor to being a trusted advisor. A vendor simply supplies a product. A trusted advisor supplies true advantage. For example, a trusted advisor will recommend what is best for the customer, not best for the salesperson. When you seek that higher ground and become a trusted advisor, your clients trust you more.
Remember that the future is all about relationships. Relationships are all about trust, and you gain trust by earning it. So never teach people to distrust you by stretching the truth or hiding some pertinent information. To differentiate, you need to raise the bar on trust.
REDEFINE YOUR LEVEL OF SALES SUCCESS
When you focus on redefining what you already have you can take your current offering and leverage it to new levels. That’s when you become a sales leader, not because of some fast-talking sales pitch, but because of your commitment to your customers and their true needs. So focus on these four elements of redefining today and you’ll be able to give your customers tools and solutions they never dreamed possible. As a result, both you and your company will attain new levels of success and realize the profit potential you always knew existed.
Saturday, September 29, 2007
TAKING SALES TO THE NEXT LEVEL, PART I
As a salesperson, you’re trained to ask customers what they want in terms of your product offerings. That’s wise advice. However, if you only ask customers what they want and then give it to them, you’re missing the biggest opportunity that has ever come in front of you.
Realize that clients will always under-ask because they don’t know what is possible. Think about it…No customer ever asked for a fax machine. They didn’t know it was possible to send printed communication via a phone line. No customer ever asked for an iPod. They didn’t know it was possible to listen to music without some sort of CD or spinning device. People don’t ask for things that they don’t know exist.
Technology allows us to do things that were once thought impossible. So for salespeople, while it is important to ask customers what they want and then to give it to them, realize that by doing so you’re merely competing with your competitors. Chances are your competitors are asking customers the same questions, they’re getting the same answers, and they’re providing the same solutions. When that happens, you end up competing on price and not differentiating yourself.
Therefore, the Golden Rule of sales is to give people the ability to do what they currently can’t do but would really want to do if they only knew they could have done it. That’s so much more profitable than simply giving clients what they ask for.
The key is that you have to look a little bit further into your customers’ predictable needs based on where they’re going. Only then you can see unmet needs and new opportunities.
At this point many salespeople might say, “But I don’t create the products; I just sell them. How can I deliver what customers don’t know is possible?” The answer lies in how you can redefine various aspects of your offering. Consider redefining your product. Today, it’s not about high-tech; it’s about higher-tech. In other words, it’s not about your product; it’s about how your clients use it.
Think about the products you sell. Sure, your customers are probably using the product for what it was intended to do. But could the same product help in another department? Could it impact the effectiveness of the company in some other way? Could it do something else or someting more for your customers? Analyze how people have always used your product and think of other creative applications. That’s how you redefine your product so it adds more value and does what no one ever thought to ask.
Next month, I will show you how to redefine your customers and the value you bring to them.
Realize that clients will always under-ask because they don’t know what is possible. Think about it…No customer ever asked for a fax machine. They didn’t know it was possible to send printed communication via a phone line. No customer ever asked for an iPod. They didn’t know it was possible to listen to music without some sort of CD or spinning device. People don’t ask for things that they don’t know exist.
Technology allows us to do things that were once thought impossible. So for salespeople, while it is important to ask customers what they want and then to give it to them, realize that by doing so you’re merely competing with your competitors. Chances are your competitors are asking customers the same questions, they’re getting the same answers, and they’re providing the same solutions. When that happens, you end up competing on price and not differentiating yourself.
Therefore, the Golden Rule of sales is to give people the ability to do what they currently can’t do but would really want to do if they only knew they could have done it. That’s so much more profitable than simply giving clients what they ask for.
The key is that you have to look a little bit further into your customers’ predictable needs based on where they’re going. Only then you can see unmet needs and new opportunities.
At this point many salespeople might say, “But I don’t create the products; I just sell them. How can I deliver what customers don’t know is possible?” The answer lies in how you can redefine various aspects of your offering. Consider redefining your product. Today, it’s not about high-tech; it’s about higher-tech. In other words, it’s not about your product; it’s about how your clients use it.
Think about the products you sell. Sure, your customers are probably using the product for what it was intended to do. But could the same product help in another department? Could it impact the effectiveness of the company in some other way? Could it do something else or someting more for your customers? Analyze how people have always used your product and think of other creative applications. That’s how you redefine your product so it adds more value and does what no one ever thought to ask.
Next month, I will show you how to redefine your customers and the value you bring to them.
Friday, September 21, 2007
Unified Communications
Competition is continuing to increase in all areas. To become more competitive and profitable is often accomplished by lowering costs and increasing efficiency. It can also be accomplished by creating new products, services and markets.
The vast majority of businesses focus on lowering costs because product and service innovation is often seen as a new expense, and a new risk. From an employee standpoint, they have seen year after year of relentless downsizing, or as it is often called, rightsizing. In other words, far fewer people to do more and more work. That is not a big problem, as long as technology is used to dramatically increase each worker’s productivity.
The problem we often run into is that communication technologies that were meant to help us save time, such as cell phones, e-mail, group ware, audio and video conferencing, and instant messaging, to name a few, can actually take our valuable time as well. Not only that, but electronic gadgets are useless if the person you’re trying to reach is unreachable.
An early attempt to solve this problem was Unified Messaging. The idea was to bring together all types of fixed and mobile communications into a single delivery system. With voice, data, and video traffic all on the same network, users could send any type of message without having to consider how the recipient would receive it. In other words, I might leave someone a voice mail message and they might read it in their e-mail. Getting all of your messages in one place is good, but now we can do even better – getting a fast response from the person we are trying to reach!
Now, thanks to the majority of companies moving over to voice over IP (VoIP), it is possible to combine all forms of communications with “presence.” Presence lets users know who’s reachable where and when. If you have ever used instant messaging, you know when a person is present or away from their computer. This ability to know if the person you are trying to reach is actually there is a powerful business tool. By adding VoIP capabilities such as presence to Unified Messaging, we can now achieve what is being called Unified Communications. Not only are your communications unified with the power of presence, they can also be embedded in your applications. For example, sales people at a client location could reach out to experts for fast answers and get them without leaving their sales software application. Ask yourself: How much time would you save if you could reach key people with one call or e-mail?
The vast majority of businesses focus on lowering costs because product and service innovation is often seen as a new expense, and a new risk. From an employee standpoint, they have seen year after year of relentless downsizing, or as it is often called, rightsizing. In other words, far fewer people to do more and more work. That is not a big problem, as long as technology is used to dramatically increase each worker’s productivity.
The problem we often run into is that communication technologies that were meant to help us save time, such as cell phones, e-mail, group ware, audio and video conferencing, and instant messaging, to name a few, can actually take our valuable time as well. Not only that, but electronic gadgets are useless if the person you’re trying to reach is unreachable.
An early attempt to solve this problem was Unified Messaging. The idea was to bring together all types of fixed and mobile communications into a single delivery system. With voice, data, and video traffic all on the same network, users could send any type of message without having to consider how the recipient would receive it. In other words, I might leave someone a voice mail message and they might read it in their e-mail. Getting all of your messages in one place is good, but now we can do even better – getting a fast response from the person we are trying to reach!
Now, thanks to the majority of companies moving over to voice over IP (VoIP), it is possible to combine all forms of communications with “presence.” Presence lets users know who’s reachable where and when. If you have ever used instant messaging, you know when a person is present or away from their computer. This ability to know if the person you are trying to reach is actually there is a powerful business tool. By adding VoIP capabilities such as presence to Unified Messaging, we can now achieve what is being called Unified Communications. Not only are your communications unified with the power of presence, they can also be embedded in your applications. For example, sales people at a client location could reach out to experts for fast answers and get them without leaving their sales software application. Ask yourself: How much time would you save if you could reach key people with one call or e-mail?
Wednesday, August 15, 2007
Keeping Up Is A Fools Game
Keeping up—with technology, with competitors, with anything in business or life—is a fool’s game. Think about it… When you’re keeping up, what’s the advantage? In reality, there is no advantage to keeping up, because all you’re doing is making yourself just like everyone else. You’re finding out who the best is and then you’re copying the best. But by the time you get as good as the best, the best has already moved on to something better, and you’re still far behind.
Realize that “benchmarking” is just a fancy way of saying “keeping up.” When you benchmark you’re simply identifying the best practices of what others do well and then striving to imitate them. Again, once you reach the benchmarked standards, the company or person that set the benchmark has already moved on to achieve higher standards.
So how do you gain advantage and truly stand out from the crowd? The key is to forget about keeping up and set a new standard for yourself and your company. Consider the following suggestions.
LOOK TO THE FUTURE
Rather than keeping up, smart business people benchmark in a way that looks to the future. When they plan their future growth, they ask themselves three key questions: 1) Where are the successful companies evolving to? 2) What path are my competitors on right now? 3) What’s the logical progression of the industry?
Asking these questions enables you to go beyond your competition and get off the treadmill of keeping up. It opens your eyes to future possibilities—to stay ahead of the pack instead of side-by-side with them. Remember: Only when you go beyond your competition will you find advantage—and the financial rewards competitive advantage brings.
DO WHAT THE MASSES DON’T DO
Most businesses do exactly the same thing as their competitors and then wonder why they don’t have the upper hand. For example, determine if there’s a better customer you can go after—one that’s better and different than what everyone else is going after. Can you customize your product or service for the better customer so that the better customer would want what you offer and not what the competitor offers? A process of constant innovation and differentiation provides you with new levels of advantage on an on-going basis.
Perhaps there was a time when it made sense to play the one-upmanship game of keeping up with the competition. But the dramatic changes spawned by science and technology has made that a perilous game for the present and a formula for disaster for the future. Those who merely “keep up” are usually so caught up in meeting their day-to-day challenges that they can only worry about the future, while the real business innovators see the present as a stepping stone they can use to get to a bigger and better future.
A new world is taking shape before our eyes, and no company can afford to hide out in the old familiar places. While it’s important to stay abreast of changes and update your company as new technologies and developments unfold, it’s just as crucial to distance yourself from the competition and embrace a forward thinking mindset that will enable you to turn tomorrow’s opportunities into today’s profits.
Realize that “benchmarking” is just a fancy way of saying “keeping up.” When you benchmark you’re simply identifying the best practices of what others do well and then striving to imitate them. Again, once you reach the benchmarked standards, the company or person that set the benchmark has already moved on to achieve higher standards.
So how do you gain advantage and truly stand out from the crowd? The key is to forget about keeping up and set a new standard for yourself and your company. Consider the following suggestions.
LOOK TO THE FUTURE
Rather than keeping up, smart business people benchmark in a way that looks to the future. When they plan their future growth, they ask themselves three key questions: 1) Where are the successful companies evolving to? 2) What path are my competitors on right now? 3) What’s the logical progression of the industry?
Asking these questions enables you to go beyond your competition and get off the treadmill of keeping up. It opens your eyes to future possibilities—to stay ahead of the pack instead of side-by-side with them. Remember: Only when you go beyond your competition will you find advantage—and the financial rewards competitive advantage brings.
DO WHAT THE MASSES DON’T DO
Most businesses do exactly the same thing as their competitors and then wonder why they don’t have the upper hand. For example, determine if there’s a better customer you can go after—one that’s better and different than what everyone else is going after. Can you customize your product or service for the better customer so that the better customer would want what you offer and not what the competitor offers? A process of constant innovation and differentiation provides you with new levels of advantage on an on-going basis.
Perhaps there was a time when it made sense to play the one-upmanship game of keeping up with the competition. But the dramatic changes spawned by science and technology has made that a perilous game for the present and a formula for disaster for the future. Those who merely “keep up” are usually so caught up in meeting their day-to-day challenges that they can only worry about the future, while the real business innovators see the present as a stepping stone they can use to get to a bigger and better future.
A new world is taking shape before our eyes, and no company can afford to hide out in the old familiar places. While it’s important to stay abreast of changes and update your company as new technologies and developments unfold, it’s just as crucial to distance yourself from the competition and embrace a forward thinking mindset that will enable you to turn tomorrow’s opportunities into today’s profits.
Monday, July 02, 2007
New Marketing Strategies
Today, audiences move to new locations. For example, advertising on MTV was the best way to reach the teen market - at least it used to be. What happened? They moved. They now get their music videos from a variety of sources including iTunes. Of course, many teens continue to watch MTV, but not in the numbers of the past. And many eliminate the commercials using their DVR.
Teenage girls spend a lot of their time communicating with their friends using instant messaging – at least they used to. Now they are spending much more time using FaceBook, and much less time sending instant messages. As a marketer, how can you find the audience that you are looking for? The answer is to look on-line.
AUDIENCE TARGETING
Advertisers can purchase the same targeted audience on-line that they do with other media; however, they can be guaranteed 100% composition and better rates. This method creates an overwhelming math advantage when linking advertising to results.
Demographic Targeting: A major media agency recently compared broadcast, cable and Internet for a major retailer’s ad campaign based solely on demographic targets. The research team recommended that 75% of the budget should go on-line. Behavioral Targeting: Cadbury-Schweppes buys audiences for their sports drink, Accelerade, that are 100% composed of people who search exercise related topics and/or visit fitness groups. Engagement Targeting: Pepsi creates custom audiences who engage with its advertisements. Ask Yourself: Could we use audience targeting to increase the effectiveness of our on-line ad campaigns?
AUDIENCE PYRAMID SEGMENTATION
An audience pyramid segments a marketer’s audience into mass market on the bottom, purchase intent in the middle, and passion at the top. For example, Yahoo! has over 500 million users at the bottom of the pyramid, 80 million on-line group members who are discussing intent to purchase and 6 million group moderator/owners at the top who are focused on a passion. Marketers can target any of these groups with relevant ads and should expect 100% composition and customization when it comes to planning and buying the appropriate audience. Audiences made up of on-line communities are as big as TV, far better targeted, and much less expensive to reach. Ask Yourself: Could we use selected parts of the audience pyramid to increase the effectiveness of our on-line ad campaigns?
Teenage girls spend a lot of their time communicating with their friends using instant messaging – at least they used to. Now they are spending much more time using FaceBook, and much less time sending instant messages. As a marketer, how can you find the audience that you are looking for? The answer is to look on-line.
AUDIENCE TARGETING
Advertisers can purchase the same targeted audience on-line that they do with other media; however, they can be guaranteed 100% composition and better rates. This method creates an overwhelming math advantage when linking advertising to results.
Demographic Targeting: A major media agency recently compared broadcast, cable and Internet for a major retailer’s ad campaign based solely on demographic targets. The research team recommended that 75% of the budget should go on-line. Behavioral Targeting: Cadbury-Schweppes buys audiences for their sports drink, Accelerade, that are 100% composed of people who search exercise related topics and/or visit fitness groups. Engagement Targeting: Pepsi creates custom audiences who engage with its advertisements. Ask Yourself: Could we use audience targeting to increase the effectiveness of our on-line ad campaigns?
AUDIENCE PYRAMID SEGMENTATION
An audience pyramid segments a marketer’s audience into mass market on the bottom, purchase intent in the middle, and passion at the top. For example, Yahoo! has over 500 million users at the bottom of the pyramid, 80 million on-line group members who are discussing intent to purchase and 6 million group moderator/owners at the top who are focused on a passion. Marketers can target any of these groups with relevant ads and should expect 100% composition and customization when it comes to planning and buying the appropriate audience. Audiences made up of on-line communities are as big as TV, far better targeted, and much less expensive to reach. Ask Yourself: Could we use selected parts of the audience pyramid to increase the effectiveness of our on-line ad campaigns?
Friday, June 15, 2007
New Tools For Advertising
Digital technology continues to provide marketers with new ways to find and reach better audiences.
SMART ADS
Smart ads are electronic ads that are automatically matched to an individual consumer’s needs based on demographics and on-line behavior. The result is highly relevant advertising at a low cost. For example, United Airlines has increased on-line ticket sales by matching destinations and special fares to people based on their search behavior. Ask Yourself: Could we use smart ads to increase the effectiveness of our on-line ad campaigns?
SPARK ADS
Spark ads are relevant electronic ads that are automatically sent to consumers immediately after they perform a search based on the content of their search. For example, a person might type in the phrase “diet cereal” and get a pop-up ad for Special K on the next page they visit. Ask Yourself: Could we use spark ads to increase the effectiveness of our on-line ad campaigns?
AUDIENCE MODELING DATABASES
Audience modeling databases use powerful on-line databases to create targeted audiences based on specific buying behavior. For example, AC Nielsen merged its Homescan database with Yahoo!’s user database to create Consumer Direct, an on-line service that allows advertisers to create highly targeted audiences for their products. Procter & Gamble, Pepsi, Cadbury-Schweppes, Johnson and Johnson, Nestle, and General Mills have all experienced success that can easily be measured with this tool. Ask Yourself: Could we use audience modeling databases to increase the effectiveness of our on-line ad campaigns?
SURVEY-BASED AUDIENCE MODELING
Survey-based audience modeling allows marketers to create custom audiences using on-line surveys to identify people’s attitudes and interest. For example, Nestle Purina ran surveys on Yahoo! to determine what type of pet people were interested in and their attitudes and interests regarding pets. Yahoo! used the audience profiles derived from the surveys to create a customized audience for each Purina market segment. The result was superior ad performance measured by increased engagement, action and sales. Ask Yourself: Could we use survey-based audience modeling to increase the effectiveness of our on-line ad campaigns?
SMART ADS
Smart ads are electronic ads that are automatically matched to an individual consumer’s needs based on demographics and on-line behavior. The result is highly relevant advertising at a low cost. For example, United Airlines has increased on-line ticket sales by matching destinations and special fares to people based on their search behavior. Ask Yourself: Could we use smart ads to increase the effectiveness of our on-line ad campaigns?
SPARK ADS
Spark ads are relevant electronic ads that are automatically sent to consumers immediately after they perform a search based on the content of their search. For example, a person might type in the phrase “diet cereal” and get a pop-up ad for Special K on the next page they visit. Ask Yourself: Could we use spark ads to increase the effectiveness of our on-line ad campaigns?
AUDIENCE MODELING DATABASES
Audience modeling databases use powerful on-line databases to create targeted audiences based on specific buying behavior. For example, AC Nielsen merged its Homescan database with Yahoo!’s user database to create Consumer Direct, an on-line service that allows advertisers to create highly targeted audiences for their products. Procter & Gamble, Pepsi, Cadbury-Schweppes, Johnson and Johnson, Nestle, and General Mills have all experienced success that can easily be measured with this tool. Ask Yourself: Could we use audience modeling databases to increase the effectiveness of our on-line ad campaigns?
SURVEY-BASED AUDIENCE MODELING
Survey-based audience modeling allows marketers to create custom audiences using on-line surveys to identify people’s attitudes and interest. For example, Nestle Purina ran surveys on Yahoo! to determine what type of pet people were interested in and their attitudes and interests regarding pets. Yahoo! used the audience profiles derived from the surveys to create a customized audience for each Purina market segment. The result was superior ad performance measured by increased engagement, action and sales. Ask Yourself: Could we use survey-based audience modeling to increase the effectiveness of our on-line ad campaigns?
Monday, May 21, 2007
Web 3.0
To date, the Web has gone through two basic iterations. The first generation, Web 1.0, ran from 1995 to 1999 and can best be described as a flat, one-dimensional way of displaying information that could be accessed by keyword searches. Hyperlinking text was a key feature of the first generation Web and pop-up ads were seen as a way of revenue generation. Google’s current project, digitizing all of the world’s books and making the contents available via search, is basically using an advanced form of Web 1.0.
The second iteration of the Web, Web 2.0, started in 2000, and its hallmark trait is all about users sharing with other users. Peer-to-peer networking was the application used by Napster to take the Web to the next level by offering music file sharing to the masses. Since then we have seen enthusiastic amateurs from around the world work together to classify and post massive amounts of new content on the collective encyclopedia project Wikipedia.
Idea sharing tools such as Blogs, personality-sharing sites such as MySpace, photo-sharing sites such as Flickr, and video sharing sites such as YouTube are all great examples of the sharing nature of Web 2.0.
Thanks to the underlying technology of XML, which allows machines to talk to other machines over the Web, applications can also connect to and share data with each other. A good example would be connecting corporate or personal location-based data to Google Maps. The next generation of the Web, Web 3.0, is already beginning as we bring artificial intelligence to the Web making our searches more relevant, useful and accurate. These searches will have a level of guidance to them.
Today, when you enter a word or phrase into a search engine such as Google or Yahoo!, you get thousands of responses, most of which are not useful. With Web 3.0 technology, you can type in a question about managing your 401K account, and you will get relevant advice based on all of your previous searches. The search function will become more of an automated advisor. Web 3.0 will also have the option of using a 3-D Web browser providing an inner spatial world to interact with. An early version is Linden Lab’s Second Life where 2.1 million registered players select an avatar of themselves. They can interact with others, purchase land, build homes and conduct business.
In my keynote speeches, I have been showing off an early prototype of a 3D Web browser since 2000. It’s easy to predict the future when you are already there. Business audiences always respond positively to the demonstration of the 3-D eCommerce engine that will let potential customers interact with an electronic sales agent, or if you wish, a real human sales person. Computers finally have enough power, and there are enough high-speed Internet connections, both wired and wireless, to enable the transition to Web 3.0 applications over the next few years.
The second iteration of the Web, Web 2.0, started in 2000, and its hallmark trait is all about users sharing with other users. Peer-to-peer networking was the application used by Napster to take the Web to the next level by offering music file sharing to the masses. Since then we have seen enthusiastic amateurs from around the world work together to classify and post massive amounts of new content on the collective encyclopedia project Wikipedia.
Idea sharing tools such as Blogs, personality-sharing sites such as MySpace, photo-sharing sites such as Flickr, and video sharing sites such as YouTube are all great examples of the sharing nature of Web 2.0.
Thanks to the underlying technology of XML, which allows machines to talk to other machines over the Web, applications can also connect to and share data with each other. A good example would be connecting corporate or personal location-based data to Google Maps. The next generation of the Web, Web 3.0, is already beginning as we bring artificial intelligence to the Web making our searches more relevant, useful and accurate. These searches will have a level of guidance to them.
Today, when you enter a word or phrase into a search engine such as Google or Yahoo!, you get thousands of responses, most of which are not useful. With Web 3.0 technology, you can type in a question about managing your 401K account, and you will get relevant advice based on all of your previous searches. The search function will become more of an automated advisor. Web 3.0 will also have the option of using a 3-D Web browser providing an inner spatial world to interact with. An early version is Linden Lab’s Second Life where 2.1 million registered players select an avatar of themselves. They can interact with others, purchase land, build homes and conduct business.
In my keynote speeches, I have been showing off an early prototype of a 3D Web browser since 2000. It’s easy to predict the future when you are already there. Business audiences always respond positively to the demonstration of the 3-D eCommerce engine that will let potential customers interact with an electronic sales agent, or if you wish, a real human sales person. Computers finally have enough power, and there are enough high-speed Internet connections, both wired and wireless, to enable the transition to Web 3.0 applications over the next few years.
Friday, April 13, 2007
Voice Recognition Takes Off
For the past 25 years, I have been writing about, and predicting the future of, voice recognition technology. I’m happy to report that, as predicted, the past two years have seen a 100% growth rate in the market for voice recognition, which now represents over $1 billion in annual sales. Server-based voice recognition used to automate call centers has grown to $600 million, and speech technology embedded in items such as cell phones and dashboards (could the iPod be next?) is already running at $125 million a year.
But you haven’t seen anything yet! With ever increasing processing power, new software algorithms and better microphones being built into a wide variety of electronic devices including computers and cell phones, accuracy rates are already close to 100%. In addition, cell phone companies are quickly rolling out 3G networks, which provide the bandwidth that enables users to access powerful software from a server instead of trying to store sophisticated software packages on their phone.
BEYOND THE LAPTOP
A company called Nuance recently launched voice recognition software that allows users to dictate on their mobile device with amazing accuracy. Google is working on technology that will enable users of cell phones and other mobile devices to search by voice. Combine that with applications such as dictating e-mail or short letters, and you begin to see the possibilities. VoiceBox Technologies software on mobile devices can analyze the context of a word within a sentence so that words with double meanings are defined in the correct way based on the intent of the user.
Will speech recognition supplant typing, taping, texting and touching? Not totally, but it will free our fingers and help us keep our eyes on the road!
But you haven’t seen anything yet! With ever increasing processing power, new software algorithms and better microphones being built into a wide variety of electronic devices including computers and cell phones, accuracy rates are already close to 100%. In addition, cell phone companies are quickly rolling out 3G networks, which provide the bandwidth that enables users to access powerful software from a server instead of trying to store sophisticated software packages on their phone.
BEYOND THE LAPTOP
A company called Nuance recently launched voice recognition software that allows users to dictate on their mobile device with amazing accuracy. Google is working on technology that will enable users of cell phones and other mobile devices to search by voice. Combine that with applications such as dictating e-mail or short letters, and you begin to see the possibilities. VoiceBox Technologies software on mobile devices can analyze the context of a word within a sentence so that words with double meanings are defined in the correct way based on the intent of the user.
Will speech recognition supplant typing, taping, texting and touching? Not totally, but it will free our fingers and help us keep our eyes on the road!
Saturday, February 17, 2007
The Future of Radio Advertising
I just finished presenting a speech to the owners, operators, and marketers of radio stations across America. They have all had a very successful past selling radio advertising and serving the public. However, as they look to the future they are very worried. Today, most of their advertising customers see radio as “old media,” versus YouTube, PODcasting, and Blogs, which are all part of what is seen as “new media.” In addition, listeners have many new choices for entertainment, giving them less time to listen to radio. And, to make matters worse, Satellite Radio, launched a few years ago as a direct competitor, and Howard Stern’s move to Satellite Radio, grabbed headlines. For many in my audience, the good old days seem to be in the past.
SCARCITY BRINGS SCARCITY – ABUNDANCE BRINGS ABUNDANCE
I found another problem in the industry. They operate under a scarcity mentality, which I find common among most well established industries. Why? Because in the old days, it worked. For the most part, everyone wanted a bigger piece of an ever-shrinking pie. They were used to competing with each other. The enemy was the other radio stations in the area.
A NEW FUTUREVIEW
What is needed is a new view of the future based on seeing new media as a vehicle for extending the reach and redefining the power of radio. I explained that there is nothing more powerful than the spoken word and that, coupled with entertainment such as music, and the ability to deliver it to any device, including streaming radio to a cell phone or allowing listeners to listen to a show later via a PODcast, is what makes radio a timeless media, not old media.
The old view of radio is to think of it as a physical device just as many think of a newspaper as paper. In the past, newspapers delivered timely and relevant information and commentary on paper. Now, their reach has been extended thanks to what they once saw as the enemy, the Web. Profitable on-line versions of a newsletter such as The Wall Street Journal, have made the online version different, interactive, and complementary rather than redundant to the paper version.
When we think of radio as sponsored audio content and entertainment instead of a device, then new media can become a vehicle for growth rather than a threat. Listeners can already send text messages to the station and, thanks to new HD Radio, they will soon be able to get real-time information about road conditions or where the nearest location is for a product they may want to purchase. In addition, stations are no longer limited to audio content; they can now couple their messages and entertainment with Web-based video.
The enemy is not the other radio stations or Satellite radio, it is a scarcity mindset and a view that the good old days are gone. The future truth is that the good old days for radio have just started.
SCARCITY BRINGS SCARCITY – ABUNDANCE BRINGS ABUNDANCE
I found another problem in the industry. They operate under a scarcity mentality, which I find common among most well established industries. Why? Because in the old days, it worked. For the most part, everyone wanted a bigger piece of an ever-shrinking pie. They were used to competing with each other. The enemy was the other radio stations in the area.
A NEW FUTUREVIEW
What is needed is a new view of the future based on seeing new media as a vehicle for extending the reach and redefining the power of radio. I explained that there is nothing more powerful than the spoken word and that, coupled with entertainment such as music, and the ability to deliver it to any device, including streaming radio to a cell phone or allowing listeners to listen to a show later via a PODcast, is what makes radio a timeless media, not old media.
The old view of radio is to think of it as a physical device just as many think of a newspaper as paper. In the past, newspapers delivered timely and relevant information and commentary on paper. Now, their reach has been extended thanks to what they once saw as the enemy, the Web. Profitable on-line versions of a newsletter such as The Wall Street Journal, have made the online version different, interactive, and complementary rather than redundant to the paper version.
When we think of radio as sponsored audio content and entertainment instead of a device, then new media can become a vehicle for growth rather than a threat. Listeners can already send text messages to the station and, thanks to new HD Radio, they will soon be able to get real-time information about road conditions or where the nearest location is for a product they may want to purchase. In addition, stations are no longer limited to audio content; they can now couple their messages and entertainment with Web-based video.
The enemy is not the other radio stations or Satellite radio, it is a scarcity mindset and a view that the good old days are gone. The future truth is that the good old days for radio have just started.
Thursday, January 11, 2007
A Tech Look Ahead
In the year ahead, we will see many current technologies that have major new improvements. Here are a few I think you will find both interesting and useful.
WIRELESS USB
Wireless USB will eliminate the cord that connects so many of our computing devices such as printers and external hard drives giving us greater flexibility in both the home and office. Additionally; this will enable us to do cool things like send pictures wirelessly from our cameras to our computers in just a few seconds.
GPS + CELLULAR + SEARCH
Integrating cellular connectivity into GPS devises that provide contextually relevant local searches based on real-time information will allow us to find what we want when we want it. In addition, a real-time traffic information network will allow us to better avoid both construction and congestion.
WIRELESS WEB WHEN YOU NEED IT
With Sprint, Cingular, Verizon, and T-Mobile all rolling out faster Web access for both our phones and laptops, and WiFi connectivity expanding, it will be easy to stay connected wherever you go. In addition, all of the increased competition should bring down the price later in the new year.
OPERATING SYSTEM UPGARDES
With both the Macintosh’s new operating system OS X Leopard, and Microsoft’s new Windows Vista, users will see more than just a minor upgrade. In addition to a major new look and feel, Microsoft is focused on giving users far greater security and stability, as well as system-wide searching and new media applications. The new Macintosh operating system will provide upgraded system-wide search and interface improvements as well as a cool new backup system called Time Machine. Being able to run both operating systems on the fast new Intel-based Macs will add a new competitive advantage for Apple.
WIFI + VOIP CELL PHONES
Skype grew rapidly in 2006 as people used their PC to place free or low fee calls from anywhere in the world with an Internet connection. New companies such as JahJah allow you to use either a PC or smart phone to do the same, and a new wave of WiFi phones can work with Skype or Windows Live Messenger. T-Mobile is launching UMA which will allow seamless switching between cellular and WiFi. It won’t be long until we will be able to seamlessly connect between all three using a smart phone.
WIRELESS USB
Wireless USB will eliminate the cord that connects so many of our computing devices such as printers and external hard drives giving us greater flexibility in both the home and office. Additionally; this will enable us to do cool things like send pictures wirelessly from our cameras to our computers in just a few seconds.
GPS + CELLULAR + SEARCH
Integrating cellular connectivity into GPS devises that provide contextually relevant local searches based on real-time information will allow us to find what we want when we want it. In addition, a real-time traffic information network will allow us to better avoid both construction and congestion.
WIRELESS WEB WHEN YOU NEED IT
With Sprint, Cingular, Verizon, and T-Mobile all rolling out faster Web access for both our phones and laptops, and WiFi connectivity expanding, it will be easy to stay connected wherever you go. In addition, all of the increased competition should bring down the price later in the new year.
OPERATING SYSTEM UPGARDES
With both the Macintosh’s new operating system OS X Leopard, and Microsoft’s new Windows Vista, users will see more than just a minor upgrade. In addition to a major new look and feel, Microsoft is focused on giving users far greater security and stability, as well as system-wide searching and new media applications. The new Macintosh operating system will provide upgraded system-wide search and interface improvements as well as a cool new backup system called Time Machine. Being able to run both operating systems on the fast new Intel-based Macs will add a new competitive advantage for Apple.
WIFI + VOIP CELL PHONES
Skype grew rapidly in 2006 as people used their PC to place free or low fee calls from anywhere in the world with an Internet connection. New companies such as JahJah allow you to use either a PC or smart phone to do the same, and a new wave of WiFi phones can work with Skype or Windows Live Messenger. T-Mobile is launching UMA which will allow seamless switching between cellular and WiFi. It won’t be long until we will be able to seamlessly connect between all three using a smart phone.
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