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Only 5,000 iPhones sold in China … Why?

Even the best product will fail without localization

As I prepare for our next Retail U International course, I’m looking for case studies which illustrate how even the best will fail if they don’t localize to fit the market.  What better case study than the utter failure of Apple to launch iPhones in China!  The early sales suggest that Apple totally missed the critical success factors for international retail.

 

iPhones fall flat in China’s fast growing market!

While China’s overall retail market shows signs of the global recession, sales of luxury brands and premier technology still show very positive growth. In particular, the cell phone market is booming in China. Therefore, it is not surprising that Apple decided to officially take the iPhone to the Chinese market with its tremendous potential for growth.  

Initial projections from China Unicom (Apple’s carrier partner) were that over 5 million iPhones would be sold in the first few years.  So what happened? The best guess is that Apple has officially sold only 5,000 iPhones!  How can projections be so far off for this mythical “Jobian” device, which is so popular in other countries?  When I visited Australia this past year, people were standing in long lines just to have a chance to buy one.

One could argue that the price is too high in China.  An iPhone costs $750 US dollars or more in China.  While that is certainly much more than other countries, it hasn’t stopped the younger Chinese from bringing in “cracked iPhones” at a high price.  Current estimates indicate that there are 2 to 3 million “cracked” iPhones already in China.  So, the demand for the hardware is certainly there.  And, the Chinese youth are estimated to be replacing phones every 12 months.  So, why has Apple been so unsuccessful?

When in China, do as the Chinese do … or would prefer

The old adage about “when in Rome do as the Romans would do” is still the bottom line caveat for international retailing success.  Far too many companies from the west have taken what works in western retailing, and tried to replicate it abroad.  Case in point:  Walmart’s failures abroad in not adapting to local culture, especially in Germany.

Shaun Rein has written an excellent piece in Forbes entitled:  How Apple and iPhone Blew it in China.  Rein argues that to be successful in China, Apple will have to change strategy, and fast.  His observations very closely parallel the key learnings from my recent trips to China:

1.  Customize to local consumer preferences.

This caveat sounds pretty basic and it can be.  But, it is often the most overlooked!   Apple is used to launching iPhones with large carriers, who have monthly contracts and data plans.  But, the majority of the Chinese prefer “pay as you go” plans.  Monthly plans are a pain and paper work is a major hassle … and contracts don’t transfer easily in China.  In fact,, many Chinese text rather than call to save money.  Most people I met carry different “SIM” cards for different areas to cut down on roaming costs.  So, the first critical lesson for Apple is bundling phones with plans is not consistent with local culture and usage patterns.

 

2. Choose the right partner(s)

Again, this sounds basic, but it is critical to success in markets like China and India. Apple is used to choosing large national carriers with a lot of leverage.  In the US, the carrier partner AT&T benefited greatly by having an exclusive for iPhone, and vice versa for Apple launching it.  China Mobile is most the dominant carrier with about 70% share.  Apple’s partner China Unicom is perceived to have less quality in signal.  And, according to Rein’s article, the China Unicom customer base has less household income.  In short, the Chinese customer who prefers to just “top off their minutes” is not about to switch to what they perceive as an inferior carrier just to get hardware.  Hence, the growth of “cracked” iPhones in China continues to escalate, which can’t please Apple who desires fanatical control of its hardware, systems and Apps.

3. It’s about the “ecosystem”, not just hardware

Apple has been tremendously successful with “closed” consumer systems.  In music, it was iTunes.  With the iPhone it has been the 100,000 Apps.   But, the ecosystem has to match local preferences and culture.  The number of “cracked” iPhones clearly demonstrates a demand for the hardware device and interface.  Apple will not be successful unless it works with its partners to localize a value solution that fits the consumer’s lifestyle and preferences.  Even if there are the most fantastic iPhone Apps written in Chinese, they mean nothing if the consumer finds it impossible to deal with monthly contracts and restrictions that do not match how they use a device for mobile business and connections.

It’s not just the western companies going to eastern countries or to “emerging” markets.  There are a number of Asian companies that have been less than spectacular in bringing products to the west!  Lenovo trying to sell computers in the US comes to mind.

The bottom line:  There is no universal product or approach that fits all markets, especially in technology.  The winners are those that take the time and effort to localize to fit culture and consumer preferences.  Case in point, McDonalds has become the master of fast food retailing by localizing both products and services.

What case studies or stories do you have regarding the need to localize for success in foreign markets?

How a Clown trumps a King …

Executing innovation 58 million times a day

For obvious cultural reasons, I did not see a McDonald’s while traveling in India.  But, the “Golden Arches” have literally popped up everywhere worldwide. Say what you will about fast food, but there are 58 million customers a day that are “Loving it”.  While their mascot might be a clown, McDonald’s has become the “king” of fast food retail by innovating so that local customers can “have it their way”.

Beyond the brand glitz of slogans and icons

I need to give an upfront apology to my international friends for all the branding and English slogans.  But, I couldn’t resist the irony of mixing the branding and slogans to describe the paradox of what has transpired in the international competition of the two US based fast food retailing giants – Burger King and McDonald’s.  

I guess if your company name is Burger King, you need a “King” as an icon (or at least a crown?).  I’m certainly not a branding expert, but that king character is one strange looking dude that can sure scare the grandkids!   I’m also not sure that “King” translates real well internationally.  On the plus side, Burger King’s slogan implies personalized service: “Have it your way”.

But … Who doesn’t love a clown!  Ronald McDonald was created as a mascot with universal potential to appeal to kids and families.  The real irony is not the clash of mascots.  It is how McDonald’s has out executed Burger King on their own slogan of “having it your way”.  McDonald’s has become a master of adapting in ways to fit local culture and markets.

“Loving It” translates into Real Results that Count

Fast food restaurants are one of the toughest forms of retail.  It has all the attributes and even greater challenges than any traditional retail store: employee staffing for long hours, 365 days a year, perishable inventory with daily life cycles, challenges of market basket and comp store growth, and the challenges of serving masses of customers with different tastes!

While Walmart and Carrefour might be dazzling in terms of sheer size and revenue, McDonalds’ numbers are simply amazing. Clearly, McDonalds’ customers are “loving it”:

· McDonald’s serves an incredible 58 million customers a day!

· 26 consecutive quarters of positive comp store sales

· McDonald’s Quarterly Earnings Growth +5.90% vs. Burger King -6.8%

How McDonald’s localizes for local markets and culture

McDonald’s is 10 times the size of Burger King in revenue. That didn’t just happen … it comes through constant innovation and attention to details.  McDonald’s is the “king” of localizing execution to consumer preferences and culture. In the words of Jim Skinner, McDonald’s CEO, “The downturn we’re in cannot be an excuse for sitting still”.

Some pretty amazing McDonalds Innovations:

· Specialty coffee programs to grab share from Starbucks

· Touch screen kiosks in Europe

· Home delivery tests in Asia!

 

Localized McDonald’s menus you may not have seen:

· Shrimp on the menu in Japan

· Beer on the German menu!

· Wine on the menu for France

· SPAM on the menu in Hawaii!

 
  

Yes, that’s right! Who knew that Hawaii has the highest per capita consumption of SPAM – the homogenized meat from a can. McDonald’s took the time to find out how to serve it their way.  In the words of Jim Skinner:  “They love it, and we serve it!”

While McDonald’s is known for their “Golden Arches”, they have are one of the best at executing The Platinum Rule - serving customers the food they want and enabling them to “have it their way”.

And that my friends is how a “clown” beats a “king” … an invaluable case study in how to innovate and localize for international retail success.

The Platinum Rule – New standard for service

Why the “extra” ordinary will thrive and be profitable

Did you know about the “Platinum Rule”?  Neither did I.  It’s not about reinvesting your stocks into precious metals.  Once you experience “platinum” service, you’ll never be satisfied with just “gold”.  These are the times when the best of breed will thrive by “going platinum”.  The extraordinary will kick it up to “double platinum”.

The Gold Standard vs. the Platinum Rule

Most of us have been taught some form of the “Golden Rule” – do unto others as you would have them do unto you.  In the past, retailers have incorporated the Golden Rule as a standard for how to treat customers. Certainly, customers value empathy, respect and like to be treated as guests.  Good service begins with courtesy and etiquette.

The Golden Rule is now being replaced by the “Platinum Rule”.  Who knew?  In all my years of working in retail and service industries, I had never heard of the “Platinum Rule”.  A quick internet search reveals that someone named Tony Alessandra generally gets credit for the phrase based on his book The Platinum Rule.  I’m not here to hawk Tony’s book (he appears to be doing more than fine), but I would definitely recommend more reading on the Platinum Rule. 

So what’s the difference?  The Golden Rule states that you should treat others as you would like to be treated.  The Platinum Rule changes one subtle word: treat others as they would like to be treated. Very subtle change … BIG difference.

Experiencing the difference between gold vs. platinum

If you read Results Count, you know that I’m an aspiring photographer.  In the quest for better photos from the next African safari, I of course justified shopping for some new equipment.

The sales person from the Retailer B was definitely practicing the “Golden Rule”.  He thanked me for coming in, asked how he could help. He showed me a couple of new cameras with features that he really liked.  He even told me why he would get the service protection plan.    Even though I did not buy, he thanked me for coming in to shop.  While the guy in the polo shirt was very courteous, he was totally focused on “telling to sell”, from how he saw the world as a photographer, and a sales person.

So, what was different about my “Platinum” experience?  After personally welcoming me to the store, and asking my name (Golden Rule stuff), the sales person shocked me with completely different questions:  Why do you think you need a new camera?  What kind photos do you want to shoot … and where will you display them?

Very, very subtle … but totally platinum!   The sales person was focused on me as a photographer, not selling me a camera he would like as photographer.  No “telling to sell” features and benefits, it was all showing me how to use cameras to find one that will get the shots I want.

What it takes to step up to Platinum

The pitfall of the applying the Golden Rule to selling is that you make assumptions about what the customer wants based on how you see the world.   What if the consumer does not value the same features or doesn’t see the same benefits?   The key to executing the Platinum Rule to both service and selling is to enable consumer input and choice.

There are countless ways to step up and engage consumers with choice:

· Alternative ways to search for information

· Alternative types of information – print, photos, videos

· More than linear demos – let consumers choose the paths

· Sales people and process that “guide” rather than tell

· Alternative ways to check out – in-store and online

Indeed, the secret sauce of Apple stores has been how they execute the Platinum Rule to engage consumers in exploring solutions they want to explore … in ways they want to explore.  It will be interesting to evaluate the success of Microsoft stores based on executing the Platinum Rule of guiding consumers to their choice, vs. “telling to sell” the Windows brand.

Kicking it up to “Double Platinum”

It would be easy to dismiss the Platinum Rule as only applying to expensive or technical products.  But the principles of going Platinum can apply to almost any product or service.

In doing research on the Platinum Rule, I ran across an interesting story from Bryan Williams who had his tire stolen. The attendant does a good job of platinum service by finding the tire and wheel Williams needed to replace the stolen one.  But, after describing his situation, the manager asks a simple, verifying question:  “You did order the wheel locks to prevent another stolen tire, right?”

 

Double Platinum Service = Providing the customer service and value beyond what they originally thought they needed.  

In other words, based on discovering what they perceive they need, anticipate what else will add value … exceed their expectations.

The three rules of customer service are all valid and not mutually exclusive.  The Golden Rule focuses on empathy.  The Platinum Rule focuses on meeting the consumer’s expectations.  The Double Platinum rule focuses on creating value and benefits beyond expectations.

Tough?  Sure!  Takes more time … yes!  But, those organizations which invest in the Double Platinum to provide extraordinary service reap two huge benefits:

· Increased market basket and profitability today

· Raving fans with passionate loyalty

Does Double Platinum Rule really work?  Well, I walked out with a new camera, tripod … and I returned for a backpack to schlep everything to Africa.  I’ll post some safari photos next April if I meet my expectations.

 

Over the Road Gadget Overload …

Do you have any fingers left to drive your vehicle?

Technology can be a marvelous thing. You can be “live” from virtually anywhere anytime, including your car.  As gadgets go on the road in your car, the technology can be overwhelming … not to mention making a mess of your car.  If you are a live road warrior, it may be safer to fly!

Transformation of the “cigarette lighter”

Full disclosure upfront.  I have a 1983 Ford truck that I drive in my rural neck of the woods.  It has a radio, but not a “cassette tape” deck.  The other day, I managed to convince a youth that he would not die if he entered the beast to ride to town with me. He asked me what that “round stick” was in my “dash”, I replied that it was a “cigarette lighter”.  I knew that I was old when he had no idea what that was.

It is indeed a good health thing that the ubiquitous cigarette lighter of the 80s has been transformed into today’s mobility power source.  In fact, my more modern diesel truck doesn’t have any “lighters” … it has multiple “power outlets” front and rear for charging multiple portable gadgets.  And today, you just might need a truck to haul all of them with you.

 

Photo from: Reid Brown, The Plain Dealer

Mobile Gadget Explosion … what’s in your car today?

In ancient times when you took a “road trip”, you maybe took a folded paper map … or splurged on an “atlas”.  Today, there is a GPS navigation system, and maybe a GPS app on your phone.  You can probably add to the list of the potential mobile road warrior gadgets:

· Mobile phone … most definitely

· Phone headset … preferably blue tooth

· Portable music player … alright maybe it’s in your phone

· Portable computer

· GPS navigation

· Entertainment … portable gaming or movie player?

Now, add to that all of the chargers to keep it all running. There aren’t enough power outlets.  With all the charger wires strung across the car it looks like you have been snarled in bizarre black spider web.  

Thank goodness for convergence of some devices, but chances are you have at least three going as you drive your technomobile to the meeting.

So your hands are on the wheel … right?

So, as the phone rings you either have to answer that, and turn up the blue tooth headset so you can hear. At the same time, you need to turn down music so it doesn’t interfere with the call.  And, while doing all of that, you need to reach for the GPS touch screen to change the view so you don’t miss the next turn (can’t use the sexy voice on GPS because you are on the call).  And your computer, phone, or both are beeping with an urgent text alert.

So, about now you are steering with your elbows or knees as you get the message to bring up the PowerPoint for changes.  Let’s don’t even go near how to open the deck on your phone or computer during your call, while attempting to drive with no eyes anywhere near the road.

Many joke about women applying makeup while successfully driving to work, but there is nothing worse than a man trying to “multi-task” with gadgets while attempting to drive.

Morale of the story – “Live Management”

Of course, the preceding is intended as a hyperbole, but it is probably not stretching the truth by much.  All road warriors have probably committed two or more gadget sins while driving, jeopardizing everyone’s safety.  

There is a time and place to “be live … online”.  Despite what some may believe, the world still spins when you are not live 24/7.  Statistically, you will live longer if you do not attempt to be “plugged in” while driving.

There is something to be said about airplanes, which limit gadget time and use.  While WiFi is now invading some planes, there is nothing like quality time to think in the cocoon of an airline seat. Yes, there are plenty of airline hassles!  But, there is nothing quite like the pleasure of enjoying a fine whiskey or cabernet from the safety of your plane seat.

So how about you, do you use OOF messages to detach, or are your fingers occupied with being live while you drive?

Even though I’m now classified as “old”, I’ve decided that I want to live another day.  You will start seeing OOF messages from me about driving my ‘83 Ford … where I can’t possibly take calls, because the cigarette lighter no longer works to charge my phone.

Build it and they will come … Maybe not.

Critical success factors for finding “brand fans”

Which is more important … building a Facebook fan page or an i-Phone app? Given the recent triple digit growth of social networks, many would argue that “fan pages” are more valuable in building brand relationships.  But, if you invest to build a fan page will they come?  Which companies have successful fan pages, which have missed the mark … and why?

Brands seek fans – Rush to “social media”

Facebook is the current darling of social media.  Not only is Facebook one of the few that is turning a profit (staying power), it is by far the most popular of social sites.  Facebook is estimated to have 40% share of the social media traffic, with more than 300 million members.  According to Nielson, users average six hours per month on just Facebook. Power social media users are on social networks more than email.

It is no surprise that major brands have rushed to build fan pages in order reach customers on Facebook.  Not only can you build a base of loyal fans for your brand, the communication can be highly interactive.  Even better, the cost of Facebook “fan pages” is essentially free. Ads to potential fans are optional. And even better yet, there are built in metrics:  number of fans, visits, and unique page views!  

So, what’s not to like?  Indeed, well known brands have been building multiple fan pages, especially on Facebook.  But, the success in creating loyal fans varies dramatically … even within the same line of business.

Ad Week recently published a very insightful article by Brian Morrissey regarding the success factors for Facebook fan pages. Morrisey provides some fan stats, as well as key insights regarding fan page success.  Here are some interesting highlights on the “winners” and “misses” by key competitors:

 

·   Winner – Coke;  3.7 million fans

Uses regular promos, events and solicits interaction from fans, including fan videos for a chance to be in a Coke commercial

·   Missed – Pepsi:  250,000 fans

Primarily uses fan page to provide updates on marketing activities

 

·   Winner – Best Buy:  850,000 fans

Highly interactive, shop & share between fans, gift ideas

·   Missed – Walmart:  17,000 fans!

Little or no content, no promotion of green initiatives or value

·   Winner – Southwest: 80,000 fans, but this is an airline!

Highly interactive, personal chat hosts, solicits customer feedback

·   Missed – United:   11,000 “potential fans”

Pitiful communication, no posts for months, no fan involvement

 

Building fan pages does NOT mean they will come, or stay

I encourage you to read the rest of Morrissey’s article on fan page success factors.  Even if you are the largest in your category, or the most well know brand, it doesn’t mean a fan page will attract fans.  In fact, a lousy fan page can have the opposite effect and drive away customers.   A key take away is that even though building a fan page might be free, it takes consistent hard work and investment in creating value to attract loyal fans, and to keep them coming back.  

 Key factors in building and keeping loyal fans:

1. Marketing of the fan page to create awareness of  fan page itself

2. Promotions that create a reason to come and become a fan

3. Value – unique content and/or interactions

4. Consistent and regular posts, updates, content

5. Highly interactive, with high regard for consumer input

6. Connection opportunities between fans

7. Tone, voice, atmosphere consistent with brand

 

If you have flown United Airlines recently you will clearly understand the last point and why they only have 11,000 one time fans!  The interesting paradox about social media is that it takes synergistic execution of traditional marketing media, advertising, promotions, events and messaging to create a successful fan page. Said another way, a large fan base on Facebook is perhaps more of an outcome of holistic marketing, rather than a low cost means to an end.

What is old is new again – Coupons are back!

How coupons have re-emerged in a digital age

Coded coupons were used by Claude Hopkins in 1909 to test consumer responses to headlines and promotions.  Hopkins is often credited with being the father of direct marketing.  As coupons re-emerge in today’s digital world, marketers would do well to read his book, Scientific Advertising.  You have to love a marketer that measures results!

Coupon clipping in frugal times

During the US depression in the 1930s, coupons surged as a marketing tool.  Shoppers became extremely frugal and used coupons to find bargains and stretch budgets.  During the depression, coupons were found everywhere in print – newspapers, magazines, inserts and even in flyers.  Coupon clipping literally became a way of life for consumers to save money, and for marketers to track and measure results. 

When the economy improved, coupon clipping diminished as shoppers were not as pressed to save nickels and dimes.  With the advent of EDLP, there was no need for paper discount coupons, at least at Walmart.  However, as the current economy again stresses family budgets, the “old marketing” of coupons has re-emerged, especially in the new digital media.

Couponing in a digital age

Coupons have traditionally been associated with groceries and packaged goods items.   And, Nielson data indicates that coupon clipping is in vogue again in the US.   Nielson reports that 1.6 billion coupons were redeemed in the first half of 2009, which is up 23% year over year. 

While most of the consumer packaged goods coupons are still coded paper, there is an evolving trend toward digital. It is now estimated in the US that 40 million people print online coupons.  With pioneers like JC Penney and others now accepting digital coupons on phones, many future coupons may in fact never get printed.   This is already the case with digital coupon redemption at internet shopping carts.

Do your own simple online test of digital coupons

Coupons may not be as “sexy” as other visual media, but they are highly valued by consumers.  Most importantly, they drive sales. The “coupon moms” of today not only value the savings discounts, but highly value the convenience and time savings of being able to search and redeem digitally.  In fact, the major digital break through has been digital coupon consolidation sites.

Still wondering if this applies to your business or consumer electronics?  Do your own personal test.  Go to Google or Bing and type in “coupons” and a category like “electronics”.  Look at how many digital coupon consolidation sites like “CouponCabin” and “CouponMom” emerge.  Indeed, one of the core value props behind Bing is “Cashback”.

Results Count … especially with digital coupons

There is ample evidence to indicate that coupons can and do drive sales.  With digital couponing rapidly increasing, coupon reach to more consumers is increasing, as well as redemption rates.  All good for consumers, but what do marketers get?

Today’s marketers would be well advised to go back and read Hopkins book Scientific Advertising.  Hopkins original genius was “coding” the coupons so that he could measure the results of different headlines, offers and messaging.  

With digital coupons today, there is a multitude of new opportunities to collect marketing data about the consumers using them, where they are using them, and to systematically test what works best where. At a minimum, today’s marketer using digital coupons must do more than merely discount price and measure sales. 

Just like in 1909, the ability to measure coupon impact hinges on systematic coding, testing different variations and tracking sales results.  If you are not measuring at least some of the following, you are not harvesting key insights and value of coupons in today’s digital world:

· What is the original source of the coupon?

· Did the consumer go through search engine(s)?

· What are the most effective means to directly deliver coupons?

· Where do consumers redeem digital coupons?

· What factors / attributes most affect redemption rates?

· In addition to the coupon item, what else is in the basket?

· What is the incremental sales and ROI impact of different offers?

Perhaps coupons never really went away, at least with consumers.  Coupons are not as sexy as “flash & splash” of  other digital media.  But, the data suggest that coupons, especially digital, have become a major factor in driving retail sales both online and in-store.

Today more than ever … Results Count!  Today’s marketers would do well to rediscover the power and insights that coupons can provide … IF there is systematic measurement of attributes that drive profitable results.

 

Life with PowerPoint … Beyond the Bullets

How to tell a great story in harmony with technology

I can’t quite get over the reaction to our recent article on the “Art of Storytelling”.  It had more viewers and comments than any recent post.   In fact, many readers requested more articles on success and best practices beyond retail.  So, here is a sequel.  It’s not a question of either or … it’s a question of how to use technology to tell great stories that engage.

Great presenters engage audiences beyond words

The trouble with technology is that it too often becomes the crutch for logging ideas and content.  Slides with just words are boring beyond belief, and rarely engage audiences. The presentation software today can truly be multi-media.  Although, there is also a danger of using media because it is sexy.  The key is synergy with the main story line.  

 

There was a great article in Business Week by Carmine Gallo about the mastery of Steven Jobs as the consummate presenter.  Say what you will about Jobs and his ego, there is almost no one better on stage.  Steve Jobs is the premier tech showman and storyteller.  If you have not seen one of Jobs product introductions at MacWorld, it’s worth a quick look on YouTube.

Using the technology to highlight the fundamentals

Steve Jobs is not a mystical zen artist.  He just works very hard at mastering the fundamentals of great storytelling.  And, Jobs certainly doesn’t use PowerPoint.  He does use Apple’s Keynote in a very minimalistic way to highlight the best attributes of telling great stories:

· Set the theme … story line

· Tell them what you are going to tell them … simply

· Present simple ideas … with aspiration

· Use few words … very few words

· More pictures … or short video clips

· Wow them by demos with real world examples

· Write the memorable headlines for them

When you watch a YouTube video of Jobs telling a story, notice how few words are on his slides. And if there is an image on a slide, how simple and minimalist the image is.  Also notice how the screen goes dark when Jobs launches into the drama of telling a good story or unveiling a product in a visual way to dramatize benefits.

Beyond the Bullets – Tips for all of Us

While I have been “giving presentations” for more than three decades, I have rediscovered the need to get better at storytelling.  One of the readers of our post on the Art of Storytelling referred me to a compelling book and web site:  http://www.beyondbullets.com. My key take away from Cliff Atkinson’s clever title is to focus on the main story line, not the details.  In fact, the book and web site even has “story templates” as a reference guide of how to become more effective.

I will spend over 150 hours teaching Retail U workshops this year. After watching thousands of participants’ reactions to “slides”, I have personally made the commitment to find more effective ways to use technology to tell “the story”.  I am very interested in hearing from you about more ways to engage the audience.  

I am finding that less is more, particularly in terms of engaging audiences to take away ideas and to take action.

A major insight is that with the proliferation of email and social media, people are looking for ready made headlines that they can use as subject lines in email, tweets and posts.  The headlines need to be more than factoids or features … they need to communicate value – WIIFM.   

In addition to the headlines, people need visualization.  They are looking for photos, drawings and links to videos.  There is no time today to search all of that out.  Make it easy to “re-tweet” and link to media that helps visualize the story and the key ideas.

Seven ways to tell better stories

Here are my seven ideas that can help you focus on using technology to help tell a more memorable story which captivates your audience:

1. Start with no slides – script your story on one page

2. Start your “deck” with just 10 slides

3. Write only the titles on each slide – no bullets

4. Write ready made headlines that you want to your audience to remember and rebroadcast

5. Reshuffle the headlines until they fit your story line

6. Find a visual for every main idea

7. Summarize everything in 3 to 5 “sound bites”

The sound bites of this story …

It’s not a question of either or, but one of changing personal habits of how to use technology to tell stories that engage.  The best presentations should tell the story in 10 slides or less.  And, the very best presentations have headlines written as ready-made sound bites that the audience will re-tweet and post.

How did we do in telling this story … does it have all the elements?

Life before PowerPoint … The art of storytelling

If a picture is worth a 1000 words, what is a story worth?

I can remember teaching in graduate school when there was no PowerPoint.  The only projector was an “overhead”, with hand drawn transparencies. And, if you wanted handouts, you braved the purple ink stains of mimeograph machines.  To grab and hold attention in those “ancient times” required great stories and anecdotes.  This is still true today.

PowerPoint – Crutch or Tool?

Before we go any further, I need to make a full, self disclosure.  I’m the Retail U Prof with PowerPoint decks of over 400 slides.  After teaching in ancient times (the ‘70s) with no tools, I am big fan of using PowerPoint to capture and portray key concepts … especially ones requiring complex visuals. But, I’m probably also guilty of “packaging too much” for “reference”.  In my humble defense, I try to use a lot of photos.

We’ve all experienced “PowerPoint Death”.  The sins of PowerPoint are too numerous to mention, but here are five of my pet peeves:

· Too much detail and information on a slide

· Fonts so small you can’t read what is there

· Since you can’t read it, the presenter reads all slides for you

· So much flash and bling you don’t know where to focus

· No key messages … no “wow” or key take aways

One of the greatest PowerPoint presentations I ever witnessed was less than 10 slides.  No more than 3 or 4 bullet points on a slide, and most of them were single words.  The “presenter”, who held the audience spell bound for two hours, was a master story teller.  No one remembered the “slides”, but they remembered the powerful stories … and repeated them to others, adding their personal reflections.  Now that’s engagement!

I sincerely believe that with PowerPoint we have become lazy.  Just put it all on the slide … they will get it.  With PowerPoint you can package it all up and not worry that the details will be missed.  But in doing so,  haven’t we also lost the art of using the rich medium of telling stories to engage others at a personal level beyond mere facts?

Plea from Retail Sales Staff - More Stories … Less Slides!

I have the opportunity to visit a lot of retail stores and visit with store staff worldwide.  If there is one common outcry, it’s about all of the vendor PowerPoint decks used for staff training.  Many of these vendor decks currently exceed 50 slides or more!  How big is your “training deck”?

Retailers and staff are not looking for more specs and details … most of that is already on the web anyway!  What really makes a difference in staff training is 3 to 5 reasons to buy – backed up with personal stories of how to illustrate benefits and value.  Training is even better if the stories can be aligned with personal demos, which engage consumers.  No, we are not talking about “scripts” or even “talking points”.  The goal is being able to engage consumers in dialog about how the products create a solution personally relevant for them.

What makes a great story

There is something about being gathered around a camp fire that engenders good story telling.   Maybe it goes back to our genetics, or the need for stories to transmit oral history before PowerPoint.  As a sidebar, I guess you might argue that the poor story tellers had to resort to drawing petroglyphs … the first “slide decks” recorded on cave walls.

Something seems to have happened between the camp fire and the corporate hallways.  In the haste for instant communication and “file sharing”, the art of using stories seems to have been lost.  PowerPoint engages the “head” and primarily focuses on the facts.  It is impersonal without a “story” or an emotional attachment.  Great stories engage both the heart and mind in ways that move people to action. 

Great leaders and sales people can boil down the essence of their message in a story of two minutes or less.  The really powerful stories will contain all of the following elements:  

1. Draws on your personal experience and past

2. Draws upon “heart” and resonates emotionally with your audience 

3. Inspires your audience to take action because it’s fueled by passion

4. Illustrates with a vivid, personalized example

5. Engages your audience through lifestyle relationships

6. Teaches an important lesson and/or provides key take aways

7. And describes what it feels like when you have found a solution

Don’t believe in the power of stories at retail?  Go book a studio session at Apple.  Then count all of the personalized stories and examples!

Your Litmus Test:  Can you and your staff tell a compelling personalized story about your products in two minutes or less?

Best Buy Needs a Makeover from the Body Shop

CE consumer experience pales in comparison to facials

The IMS Retail University curriculum has grown beyond the foundation course focused on fundamentals.  In the “Experiential Retailing” workshop, participants evaluate different retailer’s ability to engage consumers by personalizing their experience.  Last week’s class yet again validated that the “ladies of body care” are heads and shoulders above the experience levels in consumer electronics.

 

The 5 Ps of Consumer Experience

Previous posts have highlighted the 5 Ps of experiential retailing.  In view of the low ratings for consumer experience by last week’s Retail U class, the 5 core principles bear repeating:

· People

· Process

· Personalization

· Place

· Products (Solution)

The whole is greater than the sum of the parts.  To truly create a “wow” consumer experience, the retailer must be able to execute the first four P’s in order to be able to earn the right to offer a product solution.

One of the tenets and principles of Retail University is that you must get “on the floor” to fully understand the dynamics of retailing.  This is particularly true for best practices on how to engage consumers, and how to differentiate through experience and service.

Retail U shoppers rate CE experience at the bottom

Not surprising, the Retail U class found the consumer experience to be woefully lacking in retailers like Target, Walmart, and Sears.  Indeed, it was just a challenge to find any store staff on the floor.  When an employee was found, the typical response to a question was to point to an aisle … with some words of encouragement to search “over there”.

Best Buy is the last national US CE retailer with an assisted sales floor.  Indeed, the new CEO, Brian Dunn, has made numerous statements about differentiating Best Buy through personal service via the “Blue Shirts”. 

Therefore, it is quite remarkable to hear the “mixed reviews” of Best Buy from the Retail U shoppers.  The best engagement and execution came from some of the Magnolia staff who did execute the 5 Ps.  But even in Magnolia, a number of shoppers were never greeted … and simply left standing in aisle, trying to use some of the power items on display.

The Ladies of Body care blow away Best Buy on Experience

In the Experiential Retailing class, we ask the class to go out and shop for something they know, and for something outside of their comfort zone. When you shop for something you know and have researched, it is very easy to ask informed questions and guide the selling process.  Said another way, when the shopper understands what they need, they make up for a lot of deficits in the sales person, process and merchandising.

When asked to go shop for something they know nothing about, the courageous males of the class go to The Body Shop, or Bath & Body Works to inquire about skin care.  Inevitably, these shoppers are the last ones back, but the first to raise their hands to share their experience.

In fact, you can’t get the males or females, who shopped for skin care, to stop talking about their experiences!  They rave about how they were greeted and made to feel comfortable in the store.  Some are even offered tea.  But, what is most compelling for the shoppers is how the “ladies of the store” take the time to ask lifestyle questions to personalize a solution … and a regime (process) for each individual consumer.

Results Count – The Proof is in the Bag!

While all Retail U participants are asked to complete a mystery shop evaluation for the 5 Ps, they are specifically told not make a purchase.  What happens?  In each class, several bring back “body bags” … and they can’t wait to show off their new skin regime purchases!  It’s never a single item.  In meticulous detail, they describe both why they need a total solution, and how the ladies customized skin care just for them!

Clearly, the “ladies of body care” are head and shoulders above “Blue Shirts”.  They have “people skills” that make them highly successful in engaging consumers, in non-threatening ways, to sell very personal solutions.  They also have a process and the training to execute a personalized experience consistently across different consumers.

Why aren’t there more women on the CE retail floor?

The enlightened CE retailers are trying to appeal to the CPO – the woman, who is the Chief Procurement Office of the home.   Best Buy has even created a special pilot store appealing to women, designed by women.  Best Buy store managers would do well to recruit some of these talented “ladies of body care” to balance out the male dominated blue shirts across all stores. 

While people skills are necessary for engagement, they are not sufficient to create best of breed consumer store experience.  The “ladies of body care” would not be as successful in any CE retailer without the other 4 Ps. Why is so hard for CE retailers to create an environment, and the process to personalize the experience for consumers based on lifestyle needs, versus tech specs?  Perhaps, it is because many CE products are now commodities, sold as components on the basis of low price.

To execute Brian Dunn’s mission of differentiating on the basis of consumer experience will require a complete makeover of “Big Blue’s” ability to execute all 5 Ps at the same level of consistency as the “body shops”.

 

What a “pot in a pot” can teach us

“Inside out” thinking to solve real world problems

The stated purpose of this blog is “to explore insights … for business and life”.  Several valued readers of this blog recently observed that we have focused a lot on business results, and drifted away from “life lessons”.  So, here’s an incredible story about the type of innovative thinking that can be applied to real life problems … and challenge our thinking about how we approach our own life and business.

Solving a challenge of real world resource constraints

In Retail University workshops, we advocate that participants become regular consumers of the comprehensive e-newsletters available, such as CEA Smartbrief and NRF Smartbrief.  It is very easy to just scan the headlines and skip the Open Forum posts like the one by Matthew May (In Pursuit of Excellence).

In his post entitled:  How Resource Constraints Can Set You Free, May describes an incredible dilemma witnessed by a local United Nations worker in Nigeria.  The problem is common in many underdeveloped nations.  Subsistence farmers need to get their produce to market.  Most often, girls carry them in clay pots to markets.  Due to the intense heat, much of the produce spoils, resulting in health hazards and reduction of the scant income for farmer and the family.

The “western” approach of “Outside In” Solutions

Being a member of “western culture”, I can readily identify with typical “outside in” approaches to solving the problem.  The problem is food spoilage due to heat. So why not work at supplying refrigerators?  Or at least, supply some coolers to keep produce cooler and fresh?  And, how about motorized transport to speed time to market?

The real world challenge in Nigeria is that there are few refrigerators, little motor transport, and little or no electricity.  Most could not afford electricity to make ice for the coolers, even if they had a cooler and the means to make ice.  In short, the “outside in” solutions from developed countries to solve food preservation are too expensive, unsustainable and do not fit the culture and needs of local markets.

When thinking from the “outside in”, we most often approach problems by solving for constraints … trying to fill the gaps based on what we have.

Removing constraints through “Inside Out” innovation

Instead of trying to fill the gaps, Abba, the United Nations worker, approached solving the problem from the “inside out” starting with local culture and what was available. Clay pots and jars are a part of the Nigerian culture and method of transport.  The material to make the clay pots is readily available, sustainable and knowledge already exists with the local people on how to produce them.

The solution literally became one of “inside out” innovation.  By designing a pot inside of another pot and filling the gap with wet sand, it created both insulation and cooling.  Putting a wet cloth over the inner jar further facilitated evaporation cooling.  The result was temperatures at least 15 degrees cooler.  This helped to eliminate the growth of bacteria and harmful microorganisms causing spoilage.  Fresh produce like tomatoes can now be kept salable for weeks, instead of a day or two.

I encourage you go read and see the picture of Mohammad Bha Abba’s pot in a pot.

Abba’s inside out thinking created a green solution, sustainable by local people.  A pot in a pot has enriched the lives of many in many ways.

What this can teach us about life … and business

When you encounter a problem with formidable resource constraints, how many times do you approach from the “outside” trying to purchase the lacking resources … or applying a familiar solution to fill a gap?

Perhaps, it is western culture and heritage. Or maybe, it is abundant resources.   All too often, our western approach to innovation is “outside in” of supplying solutions to fill gaps.

How does this apply to business and retail?  Just take an inventory of all the “outside in” MDF, COOP and marketing solutions provided by manufacturers to “fix” gaps in retail.  And, apparently that is not even enough.  Manufactures have been building their own stores within retailer stores and staffing them to “fix” the customer experience.

Maybe, when manufacturers start building their own retail stores they will finally be ready for the kind of “inside out” thinking and approach to retail innovation.  In fact, I would recommend a picture of Abba’s pot in a pot in the break room … and board room.