Astonish Your Customer(s)

I have an idea - now what

If you have an idea for a product, what should you do to develop that idea? 

Follow the example of two tech executives who had an interest (a deep interest) in bacon. They conceived of a product called Bacon Salt . They searched for people on social network sites who professed a love for bacon, then friended them. After many months, the community of Bacon Salt fans swelled to 37,000 and then Oprah called (cha-ching).

This is not a case study about how to hook Oprah. The success of these food-industry neophytes hinged on first finding a very small group of self-identified fans to serve. They started in the right place, finding an audience they knew for certain they could reach who would respond very favorably to their offering.  

What now? Maybe you should rummage through social networking sites looking for groups and, more specifically, sub-groups and super niche groups that are interested in the things that you are passionate about. See what bothers them, see what they want and yearn for, listen to their frustration. Then create a solution and go back and ask them if they absolutely love your idea (not like it, or like it a lot, or like it better than whatever they are using now) - do they love it.

O.D.O.o.O.D.B.

TY: Jackie Huba & Ben McConnell as told in What Matters Now

Best selling story ever

I sold Anacin when it was a top ranked pain reliever, neck and neck with Tylenol. The product that was most fun to sell was the highly ranked metal tin of 12 tablets - the one you'd typically see near the register in convenience stores, gas stations, drug stores and sometimes in food stores.

In the late 80s, we wanted to sell more tins to food stores because food stores had the most customers (pre Walmart dominance). How to do it? Ronnie Ayers, a crafty 'ol boy from Texas, created the following story to sell the tins to food retailers (cost $.80, price $1).

You began by asking the buyer a question: Do you think you could sell just one piece per day, per register - just one? 

What salesperson ever leads a sales presentation with a question, let alone a question that goads a buyer by asking if they can achieve an anemic sales goal like one piece per day? The buyers would say, "Of course", and then you'd show the math.   

Place one dispenser at each register in each store in the chain (500 stores x 6 registers per store = 3,000 placements). If you sell just one piece per register, per day Mr. Retailer, you'll sell 3,000 pieces per day, generate $3,000 in sales and $600 in profit. Multiplied by 365 days = $1,095,000 in sales and $219,000 in profit, while taking up virtually zero selling space.

The buyer would snap the worksheet out of your hand and compute the numbers for himself. Usually he'd do it twice. They couldn't believe it - how does 1 add up to $1,000,000? They all loved the idea and most of them made the same remarks. They loved the product, the simple story, the low pressure sales technique, the simple math and the simplicity of the execution. Most of the major chains bought the product and executed the plan and the company sold millions of Anacin tins. And, no chain ever met the sales goal of one piece, per register, per day - not even close. Did the buyers get mad? Did they penalize us on the next sales proposal? No.

Why? The story made sense, it was a reasonable goal and they were completely bought in, not strong armed, pressured or fooled into doing it - they were partners in the plan, and the failure.

This story will always remind me that telling a story is better than making a pitch. That simple is better than complex. That even if the product is well liked by consumers and retailers and the plan is executed to perfection, it can be hard as hell to meet even the lowest of sales expectation.  

O.D.O.o.O.D.B. 

If be niche

When can small be very big?

Figure out a way to be a niche player in a humongous market. Find an audience that maybe only comprises one-half, one or two percent of market and blow them away with a promise they will love.

Metro PCS is that cheap, flat price wireless company. They have only 3% of the wireless market but that is a $100 Billion dollar market, so Metro did $3 Billion is sales last year and they're growing fast. Metro seems to follow the old adage of Sam Walton - God made more poor people that rich people, so it just makes sense to serve them.

Metro also seems to have looked at a market where the rules are stacked against the customers due to the requirements of the big players like bundled packages, long contracts and other restrictions which  make customers feel screwed.

Don't fear to go where the giants tread - just pick a different path and make sure that you identify at least one sizable audience, that you can definitely reach, where your product will be the #1 choice of that audience.

O.D.O.o.O.D.B.

Stay INSIDE your box

VW created and owned small with the Beetle, The Bug, and owned it for decades. VW even had a triumphant rebirth when they updated The Bug in the 90s. The flower vase was certainly a wienie.

Then they decided to train their eye on the high price and high margin offered by SUVs.

While they were doing that, BMW bought Mini Copper and made it hip, current and desired taking  small away from VW. 

Before you follow the blind call to get outside the box, make sure you know what your box is and what's inside your box and fully develop and protect it. 

By the way, why hasn't VW updated and relaunched the 60s VW hippie bus for all those boomers trying to recapture their youth or further validate their crunchy lifestyle?

O.D.O.o.O.D.B.   

How many customers to be a success

I suggest that you read this incredibly interesting take on the matter by the very plain speaking, yet incredibly insightful, Kevin Kelly. 

The synopsis: A creator, such as an artist, musician, photographer, craftsperson, performer, animator, designer, videomaker, or author (or product manager) - in other words, anyone producing works of art - needs to acquire only 1,000 True Fans to make a living. 

O.D.O.o.O.D.B. 

Largest you can dominate

Identify one under-served niche audience that you can astonish. 

The secret to being best in the world is to make the "world" smaller. 

Pick the "largest" audience that you can dominate. 

This is an ideal approach for old, fallen, tired, niche, small and untested products. Better to be the 1st choice of a small audience than the 3rd or 4th choice of a large, crowded audience. If it is a win in the niche, then build it out. 

(TY: Seth Godin and unknown)