The first 10

When we build our next project we should only worry about the first 10.

The first 10 people we tell.

These first 10 people are people that we know, people that like us, trust us and value our opinion. If they don’t tell anyone, we need to start again. Re-build our project, or find another one. But if they tell another 5. And then that 5 tell another 3. Then we can be pretty sure that it is start start of work that matters. Work that people need.

At the start of our next launch we should really think hard about these three words: the first 10.

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My Google Plus Problem

Like most people I recently joined Google plus. I went in and set up my account. I was reasonably impressed and it looked quite cool. It had a couple of nice ideas, including the circles of friends concept of segmenting conversations. After I set up the account, it has been on my list of things to do. That is, to go into it, have a play around, get used to the system and better understand it.

A few weeks later I still haven’t done it.

The interesting thing is that during this time I have still engaged with the social networks I already use. Including this blog and my twitter account. Turns out I still have time for social networks, just not that one. The only reason I will use Google plus is because I need to know about it, not because I need it. The fact that I need to invest time to ‘learn how to navigate and use it’,  is also sub optimal.

If everyone ends up loving Google plus, I’m sure I’ll get on board. But my Google Plus problem is that currently I don’t have a social networking problem.

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the new FMCG strategy

As far as I can tell this is the strategy of every large FMCG company – (Fast moving consumer goods – think supermarket and convenience stores).

  • Keep prices low. Never take a price rise.
  • Sell to who we’ve always sold to.
  • Only make things the factory can make.
  • Focus on volume, that’s what keeps the factory busy.
  • Deliver short term quarterly profits.
  • Innovate incrementally. Flavours, sizes, fragrances, colors.
  • Only invest in a brand if there is an immediate return in sales.
  • Buy media on mainstream channels. Interruption marketing.
  • Buy startups who innovate in our category.
  • Conduct significant research to test ‘everything’. Make all changes research suggests. Safety in research. Don’t be edgy.
  • Roll out good ideas from one market (Country) in all countries.

And this industry wonders why it fails to grow, increase revenue or attract change agents. As someone who has worked in the space for many years, it’s time someone told the industry to forget everything they think they know. This strategy isn’t working. It’s why companies like Kraft foods have the same share price they had 10 years ago. That is zero capital growth. It’s one example of many large multinationals with a similar financial performance.

So far the consumer goods industry has been quite lucky. They’ve been insulated from the effect the web has had. But this is all about to change. Startups, innovators and Amazon will come. The squeeze is about to happen, and unless they reverse their strategy over the last 50 years, the future is not bright. In fact they need to flip everything they currently do:

The new FMCG strategy (for those who want to thrive more than survive)

  • Innovate so that price is not an issue. Make stuff people will pay a premium for.
  • Open up new channels of distribution. Over invest. Compete against their retailers.
  • Make things people want. Focus on the design of the product, not compiling it. (Manufacturing)
  • Focus on revenue. Ignore volume. Remove it from all tracking and all documentation. Report everything in dollars.
  • Do not give the market forecasts. Report results on year end only once.
  • Innovate dramatically. Embrace failed launches. Most fail anyway, so get more to market.
  • Invest in brands without expecting a short term revenue boost.
  • Build your own brand media channels.
  • Set up startups in your category. Put them in a skunk woks facility. Different space for a new culture. Then sell the startup to your competitors. Do it again.
  • Do not do market research. Only research what can be done & know how to do it. Invent the future for the audience
  • Sack all global marketing & innovation teams. Innovate locally.

This won’t happen in most large FMCG companies. There is too much to protect. Things like reputations, executive bonuses and careers. The courageous few will try. But 10 years from now every FMCG will be asking what happened, just like information industries and the car industry did. The change is coming whether they like it or not.

 

Pop culture knowledge

Pop culture knowledge used to be about knowing who was atop of the leader board:

  1. the top of the billboard chart
  2. the number 1 movie
  3. the best selling pair of jeans
  4. the best selling athletic shoe
  5. the best picture at the Academy awards
  6. the most popular celebrity endorser
  7. … popularity contest X

This knowledge was a quick reference asset. It was worth keeping tabs on.

Pop culture has changed.

Now it’s about knowing what’s coming next. Knowing who’s already here is of little value. Anyone can find that out in a moments notice, it’s public and omnipresent on the web. Knowing who or what will be hot 6 months from now is where the currency is.  And that takes constant assessment and curation of the content. That is an art in itself.

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60 seconds on the web

The world moves fast. When we we’re unconnected the speed of change went unnoticed. Now that we all have digital footprints, we can track all that happens. This amazing and statistically rich infographic is solid reminder of the world we live in. It’s also very cool that most of these business are startups that aren’t even teenagers yet. I’ve pulled out the numbers and got the pic below.

60 seconds on the web:

  • 12,000+ new ads posted on Craigslist
  • 370,000+ minutes of voice calls on Skype
  • 98,000+ tweets
  • 320+ new twitter accounts
  • 100+ new Linkedin accounts
  • 6,600+ photos uploaded to Flickr
  • 50+ wordpress CMS downloads & 125+ plugins
  • 695,000 facebook status updates, 80,000 wall posts and 510,040 comments
  • 1,700 firefox downloads
  • 694,445 google searches
  • 168 million emails sent (of which 92% is spam)
  • 60+ new blogs & 1500+ new blog posts
  • 70+ new domains are registered
  • 600+ new Youtube videos are uploaded. 25+ hours in duration
  • 150+ questions are asked in Question forums
  • 13,000+ iPhone apps are downloaded
  • 20,000 new posts on Tumblr.
  • I new definition added to Urban Dictionary 
  • 1,600+ reads on Scribd.

And here is what it looks like:

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Change the currency

I heard a great little story today about how to overcome barriers when pitching business, changing minds or influencing in general.

Changing worldviews is hard, often impossible. But there are two possible routes we can take when trying:

Route (A) We can try and change peoples view on a topic- change the unchangeable.

Route (B) We can change the currency. – This route is invariably more successful because it re-directs peoples perspective.

Car sales people do it all the time. Once the negotiation is close to reaching a stale mate on price, they then bring in the optional extras: Items removed from price. Although they do have a value, it changes the view point of the negotiation. It’s a change in currency. And the discussions can progress to a close.

When trying to reach an agreement, or change a mindset, we need to re-invent the currency of what is being discussed.

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Loyalty Schemes Vs Gamification

In many ways Gamification is an evolution of the long lived Loyalty Scheme. But so much better, and the evidence exists even at the simplest level – the words themselves.

Loyalty Scheme: Firstly the word loyalty seems very one way. It was / is as if the company expects us to be loyal to them. And although one might argue that loyalty is a two way street, the second word of the phrase is the giveaway – ‘Scheme’. Yep, sounds like some kind of a trick to me. A scheme to make us believe we are getting a good deal, when in truth we are just a number on some kind of cost / benefit analysis spreadsheet. Intuitively, schemes feel like there is a winner and a loser.

Gamificiation: Games are fun. We spend most of our childhood playing them and find as many excuses as possible to play them as adults. ‘Who wants to come to the football this Friday night?’ A game needs at least two willing parties or organisations to play. Sometimes we can collaborate and form teams and clubs and divisions and theme songs and have awards nights and weekend getaways. We can celebrate wins together and lament the losses, either way we like to return to the game and try and win, or even better our own score, although it’s collaborative, it’s also personal. The game is the ‘thing’, not the result of it. Games contrive all of the important human emotions that make our hearts beat.

Play is human. Great games even turn into industries.

Yep, it feels to me that gamification facilitated via Moore’s law is here to stay.

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