Rapid cultural shifts: Three Major Macro Trends

The New World Marketplace

By Farnaz Wallace

 Do you feel that?  It’s the ground moving beneath you.

 A rapid cultural shift has occurred over the last decade, but it’s not being addressed by businesses and leaders. For better or worse, the world of Mad Men is dead. In its place lives a world pulsing with a culturally diverse makeup of social models, relationships, businesses, and leaders.

Consider the following projections:

  • China will soon be the number one English speaking country in the world
  • The majority of the United States will soon be non-white
  • For every two men graduating from college, three women graduate, with better GPAs
  • 85% of all major buying decision are made by women
  • The videogame industry is now bigger than professional baseball

Now more than ever, leaders and companies must find ways to stay relevant in a world that is fundamentally different from the one being taught in textbooks.

Simply put, The New World Marketplace is where people and technology come together to define a “we” that is fundamentally different in terms of race, ethnicity, cultures, archetypes, genders roles and youth mindset.  It’s a place where rapid cultural shifts are creating long-term evolutionary changes.

It is not so much that the world is changing.  The world is always changing, and trends are always a part of the inevitable evolution of business.  It is the complexity and pace of these cultural shifts that has brought on the degree of change that is shaking up our society as we see it. And the path forward in to the next society is all about businesses and leaders managing the velocity of this transformation.

I break down these rapid cultural shifts into three major macro trends and forces:

  1. The shifting roles of women at home and at work
  2. The new values and ideological power of youth culture (Gen Y)
  3. The growth and influence of multicultural consumers and societies

In my book, The New World Marketplace, you will see the societal transformations clearly, and gain the tools that address them, both professionally and personally.  Your eyes will be opened to the possibilities for new social models, leadership, and of course business models that will succeed.These three macro trends—once considered small niches—are now major target markets, and businesses must communicate to them in order to stay relevant and successful. The combination of these three macro trends not only defines the way the world is today, but it has also shaped and created The New World Marketplace for businesses. Think of it this way:  The New World Marketplace is an uncharted sea into which three separate societal rivers converge.  These are the waters your business will have to navigate if you want to survive the next three to five years.

About Farnaz Wallace

Farnaz Wallace is the Founder & CEO of Farnaz Global, LLC, a boutique consulting firm focused on helping businesses and social leaders embrace and capitalize on rapid cultural macro trends.  A thought leader, speaker and consultant, she is the published author of the book, The New World Marketplace – how women, youth and multiculturalism are shaping our future.  For more information, visit www.farnazglobal.com

Attracting Non-Solicited Referrals

I was touring a 5 unit rental property that a real estate investor associate of mine had just bought. We were in the basement and I noticed the electrical was still using fuses.

I said, “Mike, it looks like you’re in need of an update to the electrical. I have a high school friend, Larry, that’s an electrician and just updated one of my buildings. He did a fantastic job and is really easy to work with.”

I connected the two of them.

About a week later, I received, in the mail, a sincerely grateful, hand written Thank You card from Larry with two $5 gift certificates to a local burger joint.

I remember how acknowledged I was by this simple gesture. And, I made a promise to myself to refer a few more people to Larry. Not for more gift certificates, but because his genuine expression of gratitude created a desire to support.

Referrals are especially important because:

1). The low cost of lead acquisition

2). The higher % of conversion

3). They anchor and reinforce positive buying emotions with the customer making the referral and take the relationship to a new level of trust

4). They are a laser accurate measure of value and customer experience.

There are two types of referrals to aspire to attract and generate. Non-solicited and solicited. They each require different strategies and approaches.

LET’S TAKE A CLOSER LOOK AT ATTRACTING NON-SOLICITED REFERRALS

To even get to the starting line in this New Economy, it seems a flawlessly executed customer experience that delivers exceptional value is a minimum requirement.

With this as a solid foundation, referrals become a natural extension.

“I will challenge you to focus on retention instead of acquisition to the point where retention becomes the new acquisition.” from Flip the Funnel by Joseph Jaffe

For a well thought through and orchestrated process that will help you begin to develop a referral culture I recommend a great little book called, The Referral of a Lifetime by Tim Templeton.

Here’s a taste of the main Referral of a Lifetime principles:

Principle 1: The 250 by 250 Rule.

It’s not only who you know that counts, it’s who your clients know that is important.

Principle 2: Build a database and ABC it.

A’s = the people that are most likely to refer you. They are your advocates, your champions. On average 10-12% of the people you know.

B’s = people you think can champion your cause as well as refer you if you educate them about how you work. Account for 17-20% of people you know.

C’s = people you are not sure about but still want to keep communicating with.

D’s = delete or defer

Principle 3: Just Let Me Know.

Educate your clients about how you work and your value to them through regular, tangible actions performed without fail.

Principle 4: Keep In Touch: consistently, personally and systematically.

Be proactive in sending electronic and print communications to those you desire to build relationships with.

Keep in Touch Program: combination of personal newsletters, holiday cards, and items of value (unique, simple, and useful advice).

Web of Appreciation Program: series of good, better, best gifts to instantly show tangible evidence that we care.

P. S. The Referral of a Lifetime is told in parable style; at 130 pages I was able to read it on a Saturday. Even though it is presented in a simple fashion; this is a system that has sophistication. One of my favorite strategies, and this definitely is a REFERRAL 303 strategy, is to identify your top referral sources and to then focus additional activities on this group! In Chapter Four on Principle 2 you get a process for this.

How to Use QR Codes in Your Marketing

If haven’t already…after reading this post you should start to notice them all over.

Those little black and white checkered squares.

WHAT ARE THEY AND WHY SHOULD YOU CARE?

Technically, they’re a 2-dimension bar code, commonly referred to as QR Codes. The QR stands for “Quick Response”, and they’re quickly gaining popularity in marketing as mobile plays a bigger role in our day-to-day use of the Internet.

In fact, a study by comScore, a firm which tracks online activity, indicated that approximately 15 million people scanned QR codes in June. What’s interesting is their profile: 18-34 year-olds with household incomes of $100,000 or more.

It’s (surprisingly) easy and fast (like seconds) to create a QR Code for your business — just use a QR code creator online.   In that code, you can store a website URL, a telephone number, contact details (VCARD), an event (VEVENT), Google Maps Locations, download for a mobile app, coupons, and more.

You can then print the image on nearly any surface: promotional items, product packaging, clothing labels…really the possibilities seem to be endless.

By using a free code reader app on a smartphone, anyone can scan a QR Code and access the content you stored there.

Now your customer or prospect has access to your information from anywhere they are! Instant gratification!

The novelty of this new technology provides a compelling call to action – the curiosity and the fun of using a new app (toy).

Here are the TOP 5 promotional marketing uses of QR Codes I’ve personally noticed in the 2 weeks prior to this post:

  • In a high traffic pedestrian area, a bar/restaurant posted a large QR Code in the window with the simple headline: Scan this code for a special offer for dining in Shar (Restaurant).
  • For the SXSW (South by Southwest) Music + Film Interactive Festival in Austin, nonprofit marketer Annie Lynsen included a QR Code to her website on a business card she had designed and printed specifically for networking at this event.
  • On a back-to-school, oversized postcard, retailer Bed Bath & Beyond drives traffic to their website by including a QR Code to a College Checklist
  • As part of a membership renewal mailer, Bally Total Fitness included a QR Code with the headline, “Scan For Your Special Member Coupon!” at the top of the letter. The coupon was for a one year subscription to Men’s Journal magazine for renewing — A $9.97 incentive to generate a sale of $120.00.
  • The Greenbuild Expo included a QR Code on the address panel of the self-mailer conference information packet they send to prospective attendees. The scanned code takes you to a short promotional video that captures the excitement of the event. Their headline, “Join Us In Toronto To See What’s Next!: Scan This Code To Experience The Excitement”

    The most unique application I’ve come across so far was from an article in The Seattle Times headlined, “’Living headstones’ use technology to honor dead”. A monument maker offers “living headstones” where the QR Code provides an online link to the person’s life history.

    Here are additional resources on QR Codes that you will find valuable:

    Top 14 Things Marketers Need to Know About QR Codes

    50 Creative Uses of QR Codes

    February Blitz of Appreciation

    It sounds cheesy (hey, I’m a Packer Fan, what did you expect), but one of the things I love about business is that it’s a team sport.

    So, to celebrate both Valentine’s Day and the Super Bowl this month, what better strategy than to go big and strong while showing lots of love and appreciation…interesting combo isn’t it?

    At PPS we are going to be spending the entire month showing our appreciation to the tons of friends and associates who’ve played a part in our business and our lives or both, with our February Blitz of Appreciation.

    WHAT IS THIS, YOU ASK?
    Well, during every business day in February, we’re promising to send a note of appreciation to someone who has made a difference in our lives, either personally or professionally.

    And we wanted to invite (and challenge) you to join us! Here’s how it will work:

    The Rules of the Game
    1. For each business day (20 of them) in February you will send an UNEXPECTED note of appreciation to someone…a client, referral source, mentor, etc. Your first note of appreciation needs to be in the mail on February 1st. You are not limited to sending one note. You can also send notes on the weekend. The more you send the better the results.

    2. The note needs to be personal, not a generic “thank you” to your entire client base (that would be cheating). Here are some of the ways you can accomplish this:
    •    A handwritten note in a card, on letterhead, etc.
    •    Cut out an article that pertains to someone you want to communicate with and send it with a personal note, “Thought you would find this interesting. ~ Jocelyn”
    •    A Birthday card or Anniversary card
    •    A Thank You or a Miss You or a Congratulations card
    •    A You Should Join Me card for a really cool event

    3. Document your actions, monitor the feedback, and and feel free to share it with us. We’ll even have a bonus follow up call for everyone that participates to discuss the impact it had on you, both personally and professionally. Plus, just for fun, everyone that completes the Challenge will receive a personalized gift from PPS.

    4. To accept this Challenge and register simply send me an email with “I Accept” in the Subject Line. Make sure your name and address are in the body of the email.

    5. Once you register we will send you the Tracking Sheets and Response Sheets that you can use keep organized and hold yourself accountable. In the end we want to know how many notes of appreciation went out for each one of you accepting the challenge.

    How cool would it be to spend the entire month acknowledging people who’ve made a difference for you?  How will this alter the way your personal community view you? How big of an impact could this have on your organization or business?

    I think you already know the answer so stop thinking about it and join me.

    For those of you that are ready for this challenge reply to this email so I can send you the support materials I am developing to make this easy to implement and easy to track.

    The Kodak Pitch in Mad Men’s Season 1 is a masterful example

    The Kodak Pitch scene in Mad Men demonstrates the power of the right message for the right market.

    One of the reasons I love this business is because of the challenge it presents to communicate effectively.

    To be effective, you must first understand your market.Then, you have to know the benefit(s) of the product or service you are selling.

    Getting to both of these is a lot harder than you’d think.

    The challenge is then how best to communicate these benefits in a way that appeals emotionally to the market you are targeting, a message to market match.

    When it all comes together, there’s magic.The Kodak Pitch in Mad Men’s Season 1 is a masterful example.

    MAD MEN, Season 1, Disc 4, 38:07 minutes into Episode 13, The Wheel.

    THE KODAK PITCH – Don Draper, the hottest creative director on 1960’s Madison Avenue, has been challenged to “put Kodak’s projection Wheel in the future”. The scene is Don’s pitch to the executives from Kodak: Technology vs. Nostalgia. Which doyou think will make the best message to market match?

    —————————————————————————-
    Here’s a way for you to get a complimentary copy of MAD MEN, Season 1.
    —————————————————————————-

    MAD MEN, SEASON 4  –  PREMIER MONTH SPECIAL

    AMC has announced Season 4 of Mad Men will premier on July 25th, and to celebrate the return of the best advertising show on television, PPS is giving you an opportunity to get all the previous seasons.

    For every order over $400.00 ($30 value) you will receive the DVD set of Mad Men Season1.                                                                                                                                                                                         For every order over $750.00 ($55 value) you will receive the DVD set of Mad Men Seasons          1AND2.                                                                                                                                                                                       For every order over $1000.00 ($75 value) you will receive the DVD set of all three seasons of Mad Men.

    Offer Ends 8-15-10.

    Why do you get up in the morning?

    I’ll tell you why I do. I get a lot of juice from helping my friends (most of my customers have grown to be friends) grow their businesses and organizations.

    I love to promote. For me it is a form of sharing myself. I promote anything and everything that I have found valuable…books, programs, movies, restaurants,businesses, people, recipes, ideas, organizations…

    Probably not a coincidence that I find myself in the promotional marketing field for 30+ years!

    During this time I have amassed a lot of knowledge! So I get a lot of questions like :

    • What is the correct promotional item to use for my market?
    • What is more effective: giving people something that is personally valuable or giving people something that is novel, funny or memorable?
    • If you were going to put your brand on one item to give away to customers who do not buy from you the first time, what would you choose?

    So here it is…my tricks of the trade.
    The tools and step-by-step process I use to find that carrot that will get someone to take action or modify a behavior.

    I am offering this to make your life easier and to make sure you get what you want – exactly how you want it:
    1. Even for someone like you, who is familiar – there is really good information in each message
    2. I have developed several tools that I know you will find valuable.
    The Item Selection Checklist includes my entire thought process for determining that item your recipients will gush about.

    Click here for more information:
    http://ppsolutionsllc.com/promo-products-university.aspx

    The Bingo Card Method

    Just got this email from a customer:

    “There are so many options out there. How do I determine the best promotion for my business?”

    -Suzy
    Dear Suzy,

    I like to break these options into two general categories.Category One: Current customer promotions Category Two: New customer acquisition promotions

    The best place to start is in Category One for these 3 reasons:

    In making a decision to purchase, a prospect has to overcome their objections about you, your company, and your products/services.
    Your current customers have already done this work.

    Your current customers are much more likely to respond to your offer and purchase from you than a cold prospect will be.

    More drops to your bottom line. A sale to a current customer is more profitable because your costs to acquire the business are lower.

    To identify specific opportunities I recommend creating a “Bingo Card”.

    In a spreadsheet (or on a sheet of paper), list your customers down the A column. Across the top row list your products or services – 1 per column.

    To fill this in may require a little research.

    You want go across the row of each customer and put an “X” in the cell if they are using the product or service at the top of that column.

    Just start left and go to the right across each column for each customer.

    Where the cell is blank, you have identified a specific opportunity for each customer!

    Look at the product or service that has the most blank cells. This is the place to start to create a promotion by developing an offer targeted at your current customers.

    Download the file

    The 4 top reasons promotions fail

    The first time I was told by a client that a promotion failed I was devastated. The second time, I got smart and decided to do a post mortem. I have discovered, in 30 years of analyzing promotional campaign performance, that there are 4 main reasons why expected results don’t materialize.

    THE GOOD NEWS
    They can all be controlled! And…all but one of the factors can be addressed with proper planning before your campaign even launches.

    Reason #4
    Poor, Sloppy, or No Execution.
    “This stuff doesn’t work! I just wasted a lot of money!” The client was upset, agitated, and he chewed me out for at least 10 minutes. I was quite shaken by the phone call. I drove right to his office to find out what I could do to make this right. The receptionist led me to his office. As I sat down I could feel the red of my own anger creeping up the back of my neck. Sitting in the corner of his office was the box of mailers that he was supposed to have sent out a week earlier.

    For a promotion to maximize its potential it has to be executed with rigor and precision. Developing an implementation checklist as part of the planning is key. Following the checklist is critical.

    Reason #3
    Poorly formulated and articulated objective(s).
    If you are not laser clear on what results you expect your promotion to produce, you just shot yourself in the foot. This is always where your promotional planning should begin.

    Additionally, expecting your promotion to do too much heavy lifting is another faux pas. Limit the number of objectives to 3 or 4. Pick just one to be the main focus.

    Reason #2
    Mismatched offer. A gift card to Kentucky Fried Chicken for a gym membership or a new skateboard for starting an AARP membership. Critical: knowing your target audience and what appeals to them. What do they love, what do they hate, what stores do they shop at, what TV shows do they watch, what are they afraid of, do they have their own language? You want to look at entering the conversation that is already going on their
    head prior to crafting your offer.

    And… the No. 1 Reason Promotions Fail: NO PLAN FOR MEASURING RESULTS.

    Why is this the number one reason? Most promotions don’t have a measurement plan in place. Therefore, most organizations running promotions don’t know if they were effective or not. By default this makes a promotion a failure.

    Legendary Claude Hopkins was talking about advertising but this applies equally to promotion, “The only purpose of advertising is to make sales. It is profitable or unprofitable according to its actual sales…Treat it as a salesman. Force it to justify itself. Compare it with other salesmen.”

    Super Bowl commercials, a rant

    It’s the day after the New Orleans Saints won the Super Bowl.

    I kept track during the game and have 63 commercials on my list. I didn’t write down movie trailers or the network’s ads to promote their own programs.

    As everyone knows, since the Super Bowl is the most watched TV show of the year, advertising on this program is expensive. To the tune of close to $2 million for 30 seconds, this year.

    Let’s see if these advertisers got their moneys worth, shall we? We are going to play a little game.

    I am going to describe the four commercials I thought were the most effective from an advertising stand point. You tell me, from memory, who the advertiser is.
    1. Our hero is a traveler in Paris, searching as he tries to find the Louvre, then a cafe, then woos a French woman, then finds a job in France, then gets instructions on how to assemble a crib for their child.

    2. The favorite in-the-car game is revived here as people from all walks of life punch each other in the shoulder upon seeing a certain color of car. Yellow one? Punch. Red one? Punch. Green one? Punch. And so on.

    3. A beloved animated series and the advertiser’s product. Perfect together. Who wouldn’t like to see Monty Burns lose all his money? But the goodness of the product makes for a feel-good ending for all.

    4. Little people join a famous rock band on stage for the latest rendition of one of band’s hits and at the same time provides a quirky twist.

    Indictment#1                                                                                                                                                                             Only 4 of the 63 made my list of effective ads.

    Indictment #2
    Dockers, Dodge Charger, Coke, the 2010 Census, Emerald Nuts/PopSecret Popcorn, and Taco Bell ran ads that were either stupid, didn’t make sense, or accomplished both.

    Indictment #3
    59 of the advertisers wasted significant money.

    Indictment #4
    Given the amount of money spent on this almost criminal lack of effective advertising it makes perfect sense why the Chief Marketing Officer (CMO) has the highest turnover among the C-suite positions.
    Where you able to identify the advertisers in the quiz above? If yes, that was probably advertising dollars that were effectively spent.
    To review the commercials go to:

    http://www.cbssports.com/superbowlads

    Steve

    P.S. Answers to the quiz: 1 = Google, 2 = Volkswagen, 3 = Coke, 4 = Dr. Pepper.

    P.P.S. The Google ad, titled French love story, is actually very well done. If you didn’t see it during the game be sure to check it out at the link above.

    Roller coaster or jet airplane at take off?

    Which best describes your experience of your sales/revenue curve:

    Roller coaster – violent ups and downs…dizzying curves

    Jet airplane at take off – a steady, gradual, steep upward climb

    What if you could create a steady flow of repeat business from your current customers?

    How would you sleep at night if you knew this steady flow was set up as a system and was working for you on a daily basis?

    Here’s why I love current customers:
    •    Developing an expanding relationship is very rewarding
    •    A lot of their barriers and objections have already been overcome
    •    They are more likely to respond to future offers.
    •    They are more profitable because your acquisition costs are lower

    The first six years of my sales career I enjoyed a minimum 50% increase in sales every year. If you plot it on a graph it looks like a jet airplane taking off – a steady, gradual, steep upward climb.

    Here’s one of the key components of the system I developed to achieve this kind of sales curve:

    THE PROMOTIONAL CALENDAR
    Here’s the concept.

    You take a calendar and you schedule regular promotions.

    My suggestion is to start with an increment that you can manage along with all your other duties.

    Focus on the three fundamental promotions every business should have in place:

    1. customer survey
    2. referrals
    3. reactivating inactive customers

    It is important that you track your results. This will help you determine whether or not to repeat the promotion.

    After the first year – repeat the cycle. At the end of 24 months you will have a promotional marketing system in place for generating repeat business from current customers.

    The place to start is with 2 of the tools we discussed earlier in this series: the 4 elements of a promotion and crafting a compelling offer.

    When I first developed this technique for myself I used a week-at-a-glance calendar. Now I use a spreadsheet. I started out with a monthly promotion.

    At the end of the first year I had:

    2 promotions that were home runs

    2 that died on the vine, and

    8 that had varying degrees of success

    On all 12 I learned a lot about what my customers were interested in and what kinds of offers appealed to them.

    The second 12 months I employed the following strategies:
    1. I repeated the 2 homeruns
    2. I tweaked the 8 average results promotions based lessons learned and repeated them.
    3. I developed 2 new promotions to replace the promotions that tanked.
    4. I kept the same structure in place for developing a new promotion every month – at the end of the second year I had 24 promotions in place – two per month.

    The hardest part about implementing this simple system is taking the first step. Resolve right now to take that first action. Set up a calendar in Excel or head to the office supply store to one. We’ll all sleep better!